Verbrec Ltd · ASX:VBC
Verbrec — Investor Presentation (November 2023)
41 slides from Verbrec's investor presentation, Nov 20, 2023
Slide 1: Verbrec – evolution engineered
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Slide 2: Disclaimer
Disclaimer This presentation contains certain statements and forecast provided by or on behalf of Verbrec Limited. Any forward-looking statements reflect various assumptions by or on behalf of Verbrec. Accordingly, these statements are subject to significant business, economic and competitive uncert
Slide 3: Capital Raising Overview
Capital Raising Overview • Institutional placement to raise approximately $2.0 million (“Placement”) • Entitlement Offer to existing shareholders in the ratio of 1 new share for every 6.5 shares to raise up to approximately $2.0 million (“Entitlement Offer”). • The Entitlement Offer will include an
Slide 4: Key Investment Rationale
Key Investment Rationale • Led by Mark Read an experienced Engineering Company CEO with a track record of building successful mid tier engineering firms (SKM, Sedgman) Positioned to take advantage of growing • Initial review of operations post March 2023 CEO appointment has markets alongside existin
Slide 5: Who is Verbrec
Who is Verbrec is a leading Engineering, Asset Management, Infrastructure, Training and Verbrec mining technology services provider, operating across the entire asset life-cycle. Our experienced team is recognised for its responsiveness and agility. We operate across multiple regions, including Aust
Slide 6: Services & Geographical Footprint
Services & Geographical Footprint Engineering transformative solutions through full project and asset lifecycle. Verbrec Capital Raising Presentation 2023 6 Verbrec Investors Presentation 2023
Slide 7: Verbrec at a glance
Verbrec at a glance Safety Zero Harm, Always LTIFR MTIFR TRIFR 500+ 3 FY16 1.14 1.14 2.28 FY17 0 2.39 3.59 FY18 0 1.45 4.35 TEAM MEMBERS CORE FY19 0 0 0 MARKETS ENERGY MINING INFRASTRUCTURE FY20 0 0 0 FY21 0 0 0 FY22 0 4.35 8.70 FY23 0 1.20 6.02 30+ 1 Through strong relationships built on trust, we
Slide 8: Board of Directors & CEO
Board of Directors & CEO Philip Campbell Non-Executive Chairman Phillip joined Verbrec in October 2019 and is an experienced independent non-executive director on publicly listed and private company boards. His executive experience includes MD and CEO roles in a range of manufacturing and engineerin
Slide 9: Corporate Snapshot
Corporate Snapshot Capital Structure ASX code VBC Market Cap (as at 31 October 2023) $20.0m Share price (as at 31 October 2023) $0.09 Shares on issue 221.5m Top 5 Shareholders Brian O’Sullivan 31.3% Thorney Investment Group 11.2% Candyblossom/Bloemhof P/L 9.9% GFNA Bartley Family 8.1% Forager Funds
Slide 10: Core Principles – Business Improvement
Core Principles – Business Improvement Simplify, Protect the Core Client Focus Organic Growth & Risk Mitigation • Verbrec has market leading • Reintroduction of Key Account • 12 Key Clients generates over 40% of capabilities to draw upon Managers to ensure that we our Revenue • Management have acted
Slide 11: Actions undertaken in last 6 months
Actions undertaken in last 6 months What actions has VBC taken Impact to the business: Status Impact to EBITDA Sale of non-profitable Training Closure on non-profitable sites and business Agreement signed for the sale of remaining Completed $2.0M p.a. non-profitable training sites and assets Wound d
Slide 12: Actions undertaken in last 6 months
Actions undertaken in last 6 months What actions has VBC taken Impact to the business: Status Review of StacksOn mining technology business Strategic review of the business and next steps to grow the asset Completed Strengthen Client relationship Key Account Manager positions established for key cli
Slide 13: Enabling a sustainable future for Verbrec, our Clients and their Customers
“Enabling a sustainable future for Verbrec, our Clients and their Customers” To: Leading Energy Transition partner Pre-feasibility Study Of Mid-West Shared Infrastructure Long Duration Battery Energy Storage Concept Studies Energy Efficiency Study of Beach’s NZ Operations From: Mid-tier Engineering
Slide 14: The Changing Sustainable landscape
The Changing Sustainable landscape Electrification Gas Market Transition Green Commodities • Gas as a peaking fuel rather than • Minimisation of Scope 3 emissions • Need for Gas “firming” in a base load fuel • Higher grade commodities renewables “rich” grid (magnetite) for “green” metals • Changing
Slide 15: AEMO 2022 Integrated System Plan Infographic
15 *Source: AEMO 2022 Integrated System Plan (ISP) - Infographic
Slide 16: Gas Market Transition
Gas Market Transition “In Australia’s National Electricity Market (which does not include Western Australia or the Northern Territory) the system services gas generation provides are crucial. But its overall contribution to the energy mix is anticipated to decrease over the coming decades, in absolu
Slide 17: Growth – Engineering
Growth – Engineering Key Initiatives & Focus Areas Immediate Projects to Target • Support of Key Clients with their Changing Gas Market Transition Sustainable landscape • Engineer changes to Gas pipeline operations • Transition to and electrical economy with Biogas / • Engineer storage projects Hydr
Slide 18: Growth – Asset Management
Growth – Asset Management Key Initiatives & Focus Areas Immediate Projects to Target • Geographical expansion – Multiple opportunities – Major Clients • Strengthen and grow in QLD & WA • Leverage off work being undertaken in QLD • Establish and grow presence in NZ & NT & SA • Continue to establish r
Slide 19: Growth – Infrastructure Services
Growth – Infrastructure Services Key Initiatives & Focus Areas Immediate Projects to Target Additional O&M Contracts • The Infrastructure Services team is currently resource constrained • Verbrec designed and built key gas pipelines supplying key Australian Power Infrastructure • Secured works are c
Slide 20: Growth – Competency Training
Growth – Competency Training Key Initiatives & Focus Areas Immediate Projects to Target The growth of the IECEx Accreditation Program Growth Initiatives • International accreditation (5 years) for electrical • IECEx Expansion (new partners, national and industry professionals (Hazardous Area workers
Slide 21: Visibility = profitability
StacksOn™ is a 3D stockpile yard modelling application that enables the visual tracking of material and grades in near real time and in an intuitive way. Visibility = profitability StacksOn™ is in active use across a number of stockyards increasing throughput and reducing product variability Real ti
Slide 22: The StacksOn Difference
The StacksOn Difference • StacksOn provides a solution for companies with stackers and reclaimers for their Stockpile management including mining Addressing a fundamental issue in an and non-mining products both at Port and Mine/Facility innovative way • The StacksOn solution is a pre-shipment stock
Slide 23: The StacksOn Difference
The StacksOn Difference • StacksOn stockpile simulation program used across Western Australia Iron Ore mines for grade control and “……so we know what to load when”: BHP throughput optimisation • Equips the client with full visibility over stockpile grade inside inventories with visualisations and re
Slide 24: Growth - StacksOn
Growth - StacksOn Key Initiatives & Focus Areas Future Targets Strong Iron Ore Client interest • StacksOn customers, include any companies with a bulk material quality management requirement. • Current contract with BHP for 26 machines with Domestically mining companies are primarily potential to ex
Slide 25: Client Feedback - StacksOn
Client Feedback - StacksOn Laura Tyler, BHP Chief Technical Officer, World Mining Congress 2023 “So our digital factories got to work and came up with the Product Variability program, which we’ve been using at West Australian Iron Ore. The technology used a Grade Adjustment Model that uses data sour
Slide 26: Sources & Uses of Funds
Sources & Uses of Funds • Verbrec has identified around Sources Min A$ million Max A$ million $1.0 million of capital and Placement $2.0 $2.0 operational expenditure to grow core areas of the business – AM, Entitlement Offer $1.0 $2.0 IS, CT and StacksOn. • Working capital will be required Total $3.
Slide 27: Indicative Timetable
Indicative Timetable Activity Date (AEDT unless otherwise stated) • Announce Equity Raising, lodge investor presentation and ASX announcement Pre-trading on 20 November 2023 • Entitlement Offer “Ex” date 22 November 2023 • Entitlement Offer record date 23 November 2023 • Settlement of Placement shar
Slide 28: Pro-forma Balance Sheet
Pro-forma Balance Sheet Verbrec Limited 2023 impact 2023 impact 2023 Consolidated Statement of Financial Position $million $million $million $million $million As at 30 September 2023 Current $3m raise $3m raise $4m raise $4m raise Assets Cash and cash equivalents 3.2 0.2 3.4 0.4 3.6 Trade and other
Slide 29: Key Investment Risks
Key Investment Risks This section discloses some of the key risks attaching to an investment in new ordinary shares (New Shares) in Verbrec (Company) under the Offer. Before investing in the Offer, you should consider whether this investment is suitable for you, having regard to publicly available i
Slide 30: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer Any changes to legislation and the operations of the relevant regulators or any of their successors may have substantial impacts on the Company’s investments, financial and operating performance. The Company’s revenue
Slide 31: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer The Company’s FY23 Annual Report released to ASX on 30 August 2023 (Annual Report) includes a note on the financial condition of the Company and the possible existence of a material uncertainty about the Company’s abil
Slide 32: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer climate change may cause certain physical and environmental risks that cannot be predicted by the Company, including events such as increased severity of weather patterns and incidence of extreme weather events and Cli
Slide 33: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer The introduction of new policies or legislation, or amendments to existing policies or legislation, and the failure by governments to act promptly to introduce new or amend existing policies or legislation that governs
Slide 34: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer The Company can from time to time find itself in a dispute with a customer. Given the significant diversity of the customer base, the impact of any one dispute may be immaterial. However should a systematic failure occ
Slide 35: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer The Company operates in the highly competitive engineering consulting industry and asset services sector, with a number of operators competing for market share with similar or substitute services. The increase in marke
Slide 36: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer The Company’s Board regularly monitors impairment risk. Consistent with accounting standards, the Company is periodically required to assess the carrying values of its assets. Where the value of an asset assessed is to
Slide 37: Key Investment Risks
Key Investment Risks Risk Description Risks relating to the Company and the Offer The Company may be called upon to give guarantees and indemnities in respect of the performance by Guarantees and Indemnities counterparties, including controlled entities and related parties, of their contractual and
Slide 38: Key Investment Risks
Key Investment Risks Risk Description General risk The share prices for many listed companies have in recent times been subject to wide fluctuations and volatility, which in many cases may reflect a diverse range of non-company specific influences referred to above, including General Investment Risk
Slide 39: Key Investment Risks
Key Investment Risks Risk Description General risk Any future determination as to the payment of dividends by the Company will be at the discretion of the Directors and will depend on the financial condition of the Company, future capital requirements and general business and Dividends other factors
Slide 40: Key Investment Risks
Key Investment Risks Risk Description General risk The Company may be adversely impacted by international hostilities or war, acts of terrorism, epidemics/pandemics such as COVID-19, political or social instability (particularly as it relates to personal safety Force Majeure Events and road infrastr
Slide 41: Key Investment Risks
Key Investment Risks Risk Description General risk The engineering services industry is broadly driven by public sector infrastructure, mining and construction projects. The company will be impacted by the demand for engineering services from these sectors and industries. Any downturn in the mining