Bhagwan Marine Ltd. · ASX:BWN
Bhagwan Marine — FY2024 Earnings Presentation
41 slides from Bhagwan Marine's earnings presentation, Aug 29, 2024
Slide 1: FY24 Results Presentation
FY24 Results Presentation 29 August 2024
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Authorisation of Release: This ASX Announcement has been approved for by other entities, nor should it be construed as an alternative to other This presentation contains statements that are subject to risk factors release by the Board of Bhagwan Marine Limited. financ
Slide 3: Bhagwan Marine is a leading marine solutions provider
Bhagwan Marine is a leading marine solutions provider operating in the oil & gas, resources, civil construction, marine logistics, offshore wind and defence industries. 3
Slide 4: Presentation Overview
PRESENTATION OVERVIEW 1. Company Overview 2. FY24 Highlights 3 FY24 Financial Performance 4. FY25 Outlook & Focus Areas 5. Appendices 4
Slide 5: Company Overview
Company Overview & BHAGWAN marine
Slide 6: Bhagwan Marine at a Glance
BHAGWAN MARINE AT A GLANCE Supplied by fit for Bhagwan delivers purpose owned and Operating under four core services leased vessels stringent compliance C. OFFSHORE SERVICES PORT SERVICES SUBSEA SERVICES NEARSHORE SERVICES 100 VESSELS Powered by a strong workforce Delivering to a range of across str
Slide 7: Successful Initial Public Offering & Listing on ASX
SUCCESSFUL INITIAL PUBLIC OFFERING & LISTING ON ASX Raised $80m and Delevered Australia’s largest ASX listed Marine Services Balance Sheet Company New Shares Issued 127.0m Listing Date 30 July 2024 Offer Share Price $0.63 ASX Code BWN Funds Raised $80m Share Price at 28 August 2024 $0.645 Strengthen
Slide 8: FY24 Highlights
FY24 Highlights & BHAGWAN marine
Slide 9: Strong FY24 Results and Outperforms Prospectus Forecasts
STRONG FY24 RESULTS AND OUTPERFORMS PROSPECTUS FORECASTS RECORD NET CASH FROM NET REVENUE EBITDA OPERATIONS DEBT2 $303.1 MILLION $41.3 MILLION $29.0 MILLION $65.1 MILLION Up 79% on FY23 Up 14% on FY23 Up 1% on FY23 Improved 4% from $68.1 $169.0 million $36.4 million $28.9 million million at 30 June
Slide 10: FY24 Operational Highlights
FY 24 OPERATIONAL HIGHLIGHTS ENHANCED DIVERSIFIED GROWTH PROVEN SERVICE DELIVERY SAFETY PERFORMANCE WITHIN CORE BUSINESS IN HIGH-GROWTH SECTOR TRIFR1 7.65 - Improved from Strong performance across all Transitioned oil & gas 9.35 in FY23 industries and areas of decommissioning project LTIFR2 0.90 -Im
Slide 11: FY24 Financial Performance
FY24 Financial Performance 11
Slide 12: Record Revenue and Strong Earnings
RECORD REVENUE AND NET REVENUE ($m) PRO FORMA EBITDA ($m) STRONG EARNINGS • Increased demand across diversified business nationally • Entry into high-growth decommissioning sector • Pro Forma net revenue up 59% on FY23 and 1% above Prospectus 169 264.8 268.7 36.4 38.8 41.3 Forecast1 1 1 FY23 FY24 Pr
Slide 13: Revenue Diversification & Decommissioning Summary
REVENUE DIVERSIFICATION & DECOMISSIONING FY22 to FY24 ACTUAL BREAKDOWN SUMMARY SUMMARY 268.7 264.8 Decommissioning FY24 ACTUAL REVENUE SPLIT (%) 65.4 revenue 60.7 Other 9 Civil Construction Offshore & Inshore 7 Services Core revenue 32 204.1 203.2 17 Subsea 169.0 134.7 10 32%* Gross Profit 69.0 71.2
Slide 14: Cash Conversion
CASH CONVERSION Statutory Cash Flow FY24 FY23 Change FY24 Change $ Million Actual Actual % Prospectus % EBITDA 39.7 37.6 6% 37.4 6% Interest and finance costs (4.9) (4.9) (7.7) Tax Paid - - - Working capital (and other) (5.8) (3.8) (2.1) Cash generated from operations 29.0 28.9 1% 27.6 5% Net capita
Slide 15: Delevered Balance Sheet
DELEVERED BALANCE Net debt $ Million FY23 Actual H1 FY24 Actual FY24 Actual Change vs H1 FY24 Change YOY SHEET Cash 0.0 0.5 1.4 0.9 1.3 Non current financial assets 10.0 10.8 11.0 0.2 1.0 Current portion of term debt facility 4.0 3.3 1.6 Bank overdraft 16.9 18.3 18.8 Other loans 11.3 11.9 12.4 Curre
Slide 16: FY25 Outlook & Focus Areas
FY25 Outlook & Focus Areas & BHAGWAN marine
Slide 17: Global Offshore Vessel (OSV) Market
GLOBAL OFFSHORE VESSEL (OSV) MARKET Global vessel utilisation and rates continue to improve with limited newbuild activity CLARKSONS OSV OSV GLOBAL OSV NEWBUILD RATE INDEX UTILISATION CONTRACTING ACTIVITY Av. AHTS/PSV day rates No. Units 220 100% 600 AHTS PSV AHTS 4,000+ BHP PSV > 1,000 DWT AHTS/AHT
Slide 18: FY25 Outlook
FY25 OUTLOOK • Industry fundamentals driving core business remain strong • Prospects for key growth markets are compelling: • Substantial portfolio of decommissioning projects within oil & gas industry • Australian Government has committed to development of offshore wind projects • Australian Govern
Slide 19: FY25 Focus Areas
FY25 FOCUS AREAS • Strengthening core business to deliver high-quality services and project outcomes • Expanding in growth sectors including decommissioning, offshore wind and defence • Disciplined and targeted M&A • Fleet upgrades – including green energy and automation • Longer-term contracts that
Slide 20: Conclusion
CONCLUSION Founder-led Buoyant market Start of • $80m IPO to Growth thematic: business with a conditions, with growth cycle in de-gear balance • Focused fleet investment / renewal 25-year operating industry tailwinds decommissioning, sheet, and position • Disciplined and targeted M&A history and and
Slide 21: Appendix
Appendix BHAGWAN’ marine 21 | Bhagwan Marine Limited ABN:81009 154349 | bhagwanmarine.com
Slide 22: Statutory to Pro Forma Reconciliation
Statutory to Pro Forma Reconciliation 22
Slide 23: Reconciliation of Profit or Loss
RECONCILIATION OF Pro Forma Profit or Loss $ Million FY24 Actual FY23 Actual Change % FY24 Prospectus Change % PROFIT OR LOSS Gross revenue 303.1 169.0 79% 291.7 4% Pass through revenue (34.4) - (26.9) 28% Net revenue 268.7 169.0 59% 264.8 1% Net cost of sales (197.5) (111.6) 77% (195.8) 1% Gross pr
Slide 24: Reconciliation of EBITDA
RECONCILIATION OF EBITDA Reconciliation of Statutory EBITDA to Pro Forma EBITDA FY24 FY23 Change FY24 Change • Administrative expense has been $ Million Actual Actual % Prospectus % Statutory EBITDA 39.7 37.6 6% 37.4 6% increased in FY23 by $1.2 million and in Less: Additional listed company adminis
Slide 25: Reconciliation of NPAT
RECONCILIATION OF NPAT Reconciliation of Statutory NPAT to Pro Forma NPAT FY24 FY23 Change FY24 Change $ Million Actual Actual % Prospectus % Statutory NPAT 5.5 17.3 -68% 3.8 48% Less: Additional listed company administrative expenses (1.1) (1.2) (1.2) Add: Transaction costs 2.7 - 2.7 Add: Finance c
Slide 26: Growth Segments
Growth Segments & BHAGWAN marine
Slide 27: Growth Segments
GROWTH SEGMENTS Decommissioning Offshore Wind Defence Maintenance • Maturing of Australia’s offshore oil and • Nascent and growing market across • Ageing offshore assets and marine / gas industry the APAC region • Renewed focus on marine logistics, port infrastructure Growth • Movement to reduce emi
Slide 28: Board and Management
Board and Management & BHAGWAN marine
Slide 29: The Board
THE BOARD Anthony Wooles Loui Kannikoski Tracey Horton AO Andrew Wackett Chairman and Managing Director and Independent Executive Director Finance Non-Executive Director Chief Executive Officer Non-Executive Director Appointed Chair on 8 March 2012 Founded and managed Appointed as Independent Appoin
Slide 30: The Management Team
THE MANAGEMENT TEAM Kerren Kannikoski Cheryl Williams Andy Cowan Grant Bedford General Manager, CFO and Company General Manager, General Manager Corporate Services Secretary QHSE Commercial Co-founder of the business Joined in 2018 Joined in 2008 Joined in 2023 and commenced in 2000 Expertise and Qu
Slide 31: The Management Team
THE MANAGEMENT TEAM Peter Carmichael Kevin Clifford Gregory Standish Tom Kannikoski Luke Morand General Manager, General Manager, General Manager, General Manager, General Manager, West Coast Operations East Coast Operations Subsea Corporate and Strategic Northern Territory Development Joined in 200
Slide 32: Diversified Services & Fleet
Diversified Services & Fleet 32
Slide 33: Offshore Services
OFFSHORE SERVICES • Decommissioning • Dive and ROV1 support • Oilfield support services • Anchor handling • FPSO2 offtake assist Notes: 1. Remotely Operated Vehicles 2. Floating production, storage and offloading 33
Slide 34: Port Services
PORT SERVICES • “Hotshots”1 for shipping agents • Survey support • Navigational aid maintenance • Habour towage • Port logistics Notes: 1. “Hotshot” services refer to quick, on-demand operations catering to urgent requirements 34
Slide 35: Subsea Services
SUBSEA SERVICES • Inspection, maintenance and repair • Commercial diving (Air) • Integrated ROV1 • Decommissioning and light construction Notes: 1. Remotely Operated Vehicle 35
Slide 36: Nearshore
NEARSHORE • Wharf, jetty and bridge construction and deconstruction • Coastal towage • Cargo and crew transfers • Supply of specialised marine plant and equipment 36
Slide 37: Diverse Fleet
DIVERSE FLEET Vessels Owned by Bhagwan Tugboats Multi Cats Number # 12 Number # 7 Value $m 35.1 Value $m 20.8 Dive Support Vessels Barges Number # 2 Number # 13 Value $m 28.9 Value $m 10.8 • Bhagwan has access to a fleet Crew Transfer Vessels Utility Vessels of c. 100 vessels, 68 owned, 26 under lea
Slide 38: Operations & Infrastructure
Operations & Infrastructure 38
Slide 39: Infrastructure
Bhagwan Facility Melbourne INFRASTRUCTURE • Strategically positioned locations support volume spot market work over the long term • Network facilitates vessel fleet to be mobilised across Australia as demand requires 39
Slide 40: Bhagwan Marine
BHAGWAN" marine
Slide 41: Perth contact details
PERTH = ea Level 3 251 St Georges Terrace Perth WA 6530 T +61 8 9424 2300 enquiries@bhagwanmarine.com BHAGWAN mu marine Bhagwan Marine Limited ABN: 81009 154349 | bhagwanmarine.com