Duratec Limited · ASX:DUR
Duratec — Shareholder Meeting (November 2024)
49 slides from Duratec's shareholder meeting presentation, Nov 22, 2024
Slide 1: 2024 Annual General Meeting: Chair and Managing Director's Address
ASX ANNOUNCEMENT 22 November 2024 2024 ANNUAL GENERAL MEETING CHAIR AND MANAGING DIRECTOR’S ADDRESS TO SHAREHOLDERS & PRESENTATION For personal use only Australian engineering, construction, and remediation contractor Duratec Limited (Duratec or the Company) (ASX: DUR) is pleased to provide the Chai
Slide 2: Chair address: FY24 recap
We also have Dennis Wilkins, our Company Secretary, and Ashley Muirhead, the Company’s Chief Financial Officer, in the room with us as well as Ollie McKeon our Executive Manager - Corporate, Strategy, and Investor Relations who is joining us online. I would also like to welcome AJ Neo from RSM Austr
Slide 3: Chair address and Managing Director address
balance sheet was achieved through our commitment to operating a capital light business with solid reliable cash generation allowing for the consistent delivery of dividends to our shareholders. The first quarter of FY25 has delivered results in line with our expectations as we continue to maintain
Slide 4: Managing Director address: sector results
The key business drivers are strongly active in all key markets and segments and our subsidiary companies WPF, MEnD and DDR have all had a great year and are very well positioned for strong growth in FY25. In FY24, our workforce of 1,132 employees completed a total of 1,588 projects, whilst maintain
Slide 5: Energy sector results
design and procurement for large scale projects and is well positioned to secure and deliver more works in this sector. The involvement of MEnD’s services is often included in this process. Our Energy sector, which covers the maintenance and decommissioning of oil and gas assets as well as the expan
Slide 6: MEnD and DDR Australia results
Our MEnD capabilities continue to lead Duratec into many other opportunities and we have built a lot of trust within all the clients that use the MEnD services. We still work collaboratively with BHP Iron Ore, Yara Pilbara, Rio Tinto, and many other clients. Our MEnD team recently relocated to our n
Slide 7: Contacts and about Duratec
This completes my address. I will open the meeting to questions relating to my operational update. Authorised for release to the ASX by the Managing Director of Duratec Limited. – ENDS – Investors Relations Company Secretary Ollie McKeon Dennis Wilkins Executive Manager – Corporate, Strategy & Inves
Slide 8: Duratec Limited FY24 Annual General Meeting
For personal use only DURATEC LIMITED FY24 ANNUAL GENERAL MEETING
Slide 9: In Memory of Krista Bates
I N M E M O RY O F For personal use only KRISTA BATES 1972 - 2024
Slide 10: Duratec Limited FY24 Annual General Meeting
For personal use only DURATEC LIMITED FY24 ANNUAL GENERAL MEETING
Slide 11: Chair Address
CHAIR For personal use only ADDRESS MARTIN BRYDON NON-EXECUTIVE CHAIR
Slide 12: Proxy Summary
For personal use only PROXY SUMMARY
Slide 13: Proxy Summary
FY24 ANNUAL GENERAL MEETING PROXY SUMMARY For personal use only RESOLUTIONS FOR AGAINST DISCRETIONARY ABSTAIN RESOLUTION 1 85,283,668 1,986,257 254,245 76,104 Adoption of Remuneration Report 97.44% 2.27% 0.29% RESOLUTION 2 109,328,193 1,696,267 254,245 Re-election of Mr Robert Harcourt as
Slide 14: Online Meeting Platform Information
For personal use only ONLINE MEETING PLATFORM INFORMATION
Slide 15: How to Ask a Question
FY24 ANNUAL GENERAL MEETING HOW TO ASK A QUESTION For personal use only • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructi
Slide 16: How to Vote
FY24 ANNUAL GENERAL MEETING HOW TO VOTE For personal use only • When the poll is open, select the vote icon at the top of the screen • To vote, select either For, Against or Abstain • You will see a vote confirmation • To change or cancel your vote “click here to change your vote” at any time until
Slide 17: Meeting Resolutions
For personal use only MEETING RESOLUTIONS
Slide 18: Receipt and Consideration of Financial Statements and Reports
FY24 ANNUAL GENERAL MEETING RECEIPT AND CONSIDERATION OF FINANCIAL STATEMENTS AND REPORTS For personal use only To receive and consider the Financial Report of the Company, the Directors’ Report and the Auditor’s Report for the year ended 30 June 2024. Further Information • Ashley Muirhead, Chief Fi
Slide 19: Resolution – Adoption of Remuneration Report
FY24 ANNUAL GENERAL MEETING RESOLUTION 1 – ADOPTION OF REMUNERATION REPORT For personal use only That, for the purpose of section 250R(2) of the Corporations Act, the Remuneration Report, which forms part of the Directors’ Report for the financial year ended 30 June 2024, be adopted. This is an advi
Slide 20: Re-election of Mr Robert Harcourt as a Director
FY24 ANNUAL GENERAL MEETING RESOLUTION 2 – RE-ELECTION OF MR ROBERT HARCOURT AS A DIRECTOR For personal use only • Mr Robert Philip Harcourt was appointed as a Director on 26 August 2010. • Mr Harcourt has over 50 years of experience in the civil and structural engineering industry. During this time
Slide 21: Resolution – Re-election of Mr Robert Harcourt
FY24 ANNUAL GENERAL MEETING RESOLUTION 2 – RE-ELECTION OF MR ROBERT HARCOURT AS A DIRECTOR For personal use only That, for the purposes of clause 14.4 of the Constitution, Listing Rule 14.4, and for all other purposes, Mr Robert Philip Harcourt, who retires by rotation in accordance with the Constit
Slide 22: Re-election of Mr Gavin Miller as a Director
FY24 ANNUAL GENERAL MEETING RESOLUTION 3 – RE-ELECTION OF MR GAVIN MILLER AS A DIRECTOR For personal use only • Mr Gavin Miller was appointed as a Director on 14 April 2010. • Mr Miller is a Certified Practising Accountant, Chartered Secretary and graduate of the Australian Institute of Company Dire
Slide 23: Resolution – Re-election of Mr Gavin Miller
FY24 ANNUAL GENERAL MEETING RESOLUTION 3 – RE-ELECTION OF MR GAVIN MILLER AS A DIRECTOR For personal use only That, for the purposes of clause 14.4 of the Constitution, Listing Rule 14.4, and for all other purposes, Mr Gavin Miller, who retires by rotation in accordance with the Constitution and the
Slide 24: Increase in Maximum Aggregate Remuneration for Non-Executive Directors
FY24 ANNUAL GENERAL MEETING RESOLUTION 4 – INCREASE IN MAXIMUM AGGREGATE REMUNERATION FOR NON-EXECUTIVE DIRECTORS For personal use only • Listing Rule 10.17 provides that the maximum aggregate amount of the remuneration payable as directors’ fees to non-executive directors (NED Fee Cap) must not be
Slide 25: Resolution – Increase in NED Remuneration Cap
FY24 ANNUAL GENERAL MEETING RESOLUTION 4 – INCREASE IN MAXIMUM AGGREGATE REMUNERATION FOR NON-EXECUTIVE DIRECTORS For personal use only That, for the purposes of clause 14.5 of the Constitution and Listing Rule 10.17, and for all other purposes, the maximum aggregate remuneration payable to non-exec
Slide 26: Approval to Grant Performance Rights to Mr Oates
FY24 ANNUAL GENERAL MEETING RESOLUTION 5 – APROVAL TO GRANT PERFORMANCE RIGHTS TO EXECUTIVE DIRECTOR MR OATES For personal use only • The Company has agreed, subject to obtaining shareholder approval, to grant a total of 850,000 Performance Rights to Mr Chris Oates (or his nominee(s)) under the Empl
Slide 27: Resolution – Performance Rights to Mr Oates
FY24 ANNUAL GENERAL MEETING RESOLUTION 5 –APROVAL TO GRANT PERFORMANCE RIGHTS TO EXECUTIVE DIRECTOR MR OATES For personal use only That, for the purposes of Listing Rule 10.14 and for all other purposes, approval is given for the grant of up to 850,000 Performance Rights under the Company’s Employee
Slide 28: Questions
For personal use only QUESTIONS
Slide 29: Conduct of Poll
For personal use only OF POLL CONDUCT
Slide 30: Close of Meeting
For personal use only CLOSED MEETING
Slide 31: Operational Update: Chris Oates
OPERATIONAL For personal use only UPDATE C H R I S O AT E S MANAGING DIRECTOR
Slide 32: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER For personal use only This presentation has been prepared by Duratec Limited (ACN 141 614 075) ("Duratec", "Duratec Group" and the "Company"). The information contained in this presentation is for information purposes only. The information contained in this presentation
Slide 33: Managing Director's Operational Update
FY24 ANNUAL GENERAL MEETING M A N A G I N G D I R E C T O R ’ S – O P E R AT I O N A L U P D AT E For personal use only * Compound Annual Growth Rate over 15 Years 26 DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024
Slide 34: Managing Director's Operational Update: FY24 financials
FY24 ANNUAL GENERAL MEETING M A N A G I N G D I R E C T O R ’ S – O P E R AT I O N A L U P D AT E For personal use only Note 1: Revenue excludes DDR Australia Pty Ltd (49% share) Note 2: Normalisation of EBITDA accounts for tax effect from Duratec Limited’s 49% investment in DDR Australia Pty Ltd an
Slide 35: Master Services Agreements (MSA)
FY24 ANNUAL GENERAL MEETING M A N A G I N G D I R E C T O R ’ S – O P E R AT I O N A L U P D AT E For personal use only MASTER SERVICES AGREEMENTS (MSA) • MSA and annuity style projects represented approximately 26% of revenue for FY24 compared to 19% in FY23 • Annuity style contracts are more profi
Slide 36: Key Business Drivers, Market Sectors and Subsidiaries
FY24 ANNUAL GENERAL MEETING M A N A G I N G D I R E C T O R ’ S – O P E R AT I O N A L U P D AT E For personal use only WPF Duratec Pty Ltd (WPF) KEY BUSINESS DRIVERS (wholly owned subsidiary) • Aged infrastructure Leading Energy sector remediation and fabrication company based in Western Australia
Slide 37: Safety & Learning
SAFETY & LEARNING SAFETY & WELLBEING For personal use only • Improved risk management processes continue to prove effectiveness • Safety culture is continuously strengthened and supported by the CareFactor program • No Lost Time Injuries recorded • 62% reduction in TRIFR from end of FY23 LEARNING &
Slide 38: Sector outlook: Defence, Mining & Industrial, Building & Facade
FY24 ANNUAL GENERAL MEETING M A N A G I N G D I R E C T O R ’ S – O P E R AT I O N A L U P D AT E For personal use only • Significant increases in tendered works places Duratec • Duratec’s self-perform capability has positioned the • National presence and in-house design capabilities to in strong po
Slide 39: Sector outlook: Energy and Marine
FY24 ANNUAL GENERAL MEETING M A N A G I N G D I R E C T O R ’ S – O P E R AT I O N A L U P D AT E For personal use only • Recently gained Woodside vendor status and have several remediation opportunities • New Marine Division positions the business to target further market share across the • Continu
Slide 40: WPF Duratec: FY24 and outlook
For personal use only FY24 • Revenue of $33.8m and a gross profit of $9.6m (accounted for in the Energy and M&I sectors) • Completed the business purchase acquisition of A&B Welding Pty Ltd in Darwin, NT for $1.5m, immediately doubling fabrication capacity OUTLOOK • WPF continues to be a Santos cont
Slide 41: Energy Sector Expansion: Acquisition Update
ENERGY SECTOR EXPANSION A C Q U I S I T I O N U P D AT E For personal use only • Recently completed business asset acquisition of GF Engineering Pty Ltd for a total value of $2.2m • Lease of 12,000m2 fabrication and office facility at Naval Base, WA • New facility provides 3 individual workshops and
Slide 42: MEnD Consulting: FY24 and outlook
FY24 For personal use only • MEnD delivered the largest reality modelling, inspection, testing and engineer scopes in the Company's history, both in scale and value (1m images of an export wharf for Rio Tinto at Cape Lambert) OUTLOOK • MEnD’s capability continues to lead Duratec into ECI opportuniti
Slide 43: DDR Australia: FY24 performance and outlook
• Equity accounted investment owned by Duratec (49%) and Hutcheson For personal use only & Co Holdings Pty Ltd (51%) • Provides meaningful work and training opportunities to Aboriginal and Torres Strait Islander peoples FY24 PERFORMANCE OUTLOOK • Solid platform for future growth with work-on-hand of
Slide 44: Outlook & Pipeline
For personal use only OUTLOOK PIPELINE &
Slide 45: Order Book, Tender and Pipeline
ORDER BOOK, TENDER AND PIPELINE 1,2 For personal use only ORDER BOOK TENDERS3 PIPELINE4 5% 22% 5% 25% 11% 6% 34% 16% $409 34% 4% $1.5 18% $4.1 million billion billion 66% 16% 17% 21% Note 1: As at 20 November 2024 Note 2: Figures include 49% share of DDR Australia Pty Ltd’s Order Book, Tenders, and
Slide 46: Outlook: Solid Revenue Growth Anticipated in FY25
OUTLOOK SOLID REVENUE GROWTH ANTICIPATED IN FY25 For personal use only • Win rate of our medium-sized projects ($5m - $20m) more than doubled in 2H FY24. These projects have all commenced and will have revenue delivered in 1H FY25 with majority of projects continuing into 2H FY25 • Increasing delive
Slide 47: Operational Update: Chris Oates
OPERATIONAL For personal use only UPDATE C H R I S O AT E S MANAGING DIRECTOR
Slide 48: Questions
For personal use only QUESTIONS
Slide 49: Duratec Limited FY24 Annual General Meeting
For personal use only DURATEC LIMITED FY24 ANNUAL GENERAL MEETING