Slide 1: Duratec Limited FY24 Results Presentation
DURATEC LIMITED F Y 2 4 R E S U LT S P R E S E N TAT I O N
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER 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 is not investment or
Slide 3: Speakers
C H R I S O AT E S MANAGING DIRECTOR SPEAKERS MEET OUR EXECUTIVES ASHLEY MUIRHEAD CHIEF FINANCIAL OFFICER OLLIE MCKEON EXECUTIVE MANAGER – C O R P O R AT E , S T R AT E G Y & I N V E S T O R R E L AT I O N S
Slide 4: Business Overview
BUSINESS OVERVIEW SPECIALIST TECHNICAL EXPERTISE IN UPGRADING AND EXTENDING THE LIFE AND USE OF INFRASTRUCTURE KEY BUSINESS DRIVERS WPF Duratec Pty Ltd (WPF) (wholly owned subsidiary) • Aged infrastructure Leading Energy sector remediation and • Asset capacity expansion fabrication company based in
Slide 5: Business History: Growth Over 15 Years
BUSINESS HISTORY GROWTH OVER 15 YEARS * Compound Annual Growth Rate over 15 Years 5 DURATEC LIMITED – FY24 RESULTS PRESENTATION – 28 AUGUST 2024
Slide 6: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS 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 and one-off acquisition costs of A&B Welding and RC Construction (Normalisation = $1.425m) Note
Slide 7: Financial Results
FINANCIAL RESULTS DURA Te
Slide 8: FY24 Financial Results
FY24 FINANCIAL RESULTS • Record revenue, with yoy growth led by the Mining & Industrial sector (+79.4%) due to BHP Berth C&D Remediation and several structural integrity upgrades on Rio Tinto sites • Improved average gross margin the result of more higher margin projects being completed in FY24, inc
Slide 9: Balance Sheet Summary
BALANCE SHEET SUMMARY • 28.3% increase in Net Assets to $59.1m • Increase in trade debtors representing higher invoicing levels undertaken at year end, which is evident with a corresponding reduction in contract assets • Investment in property, equipment and vehicles to support the growth in Mining
Slide 10: Cash Flow
CASH FLOW Strong Cash Conversion Investment Growth Solid Return to 84% • $16.3m in Capital Expenditure Shareholders • Operating cash flow before • $10m in Earn Out Payments for • $10m of Dividends paid interest and tax to EBITDA Acquisition of WPF during FY24 1 Note 1: Operating Cash Flow Before Int
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 12: Safety & Learning
SAFETY & LEARNING SAFETY & WELLBEING • 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 & DEVELOPMENT • Supervis
Slide 13: Defence Performance and Outlook
DEFENCE PERFORMANCE AND OUTLOOK FY24 PERFORMANCE • The National Defence Strategic Review slowed the award of projects in FY24, which are now expected in FY25 • ECI Parkes Wharf extension award • Major project works progressed through the year including RAAF Base Tindal Fuel Facility, HMAS Coonawarra
Slide 14: Mining & Industrial Performance and Outlook
MINING & INDUSTRIAL PERFORMANCE AND OUTLOOK FY24 PERFORMANCE • Record level of revenue achieved • Strong growth in MSA/annuity revenue • Completed multiple structural integrity upgrades on key Rio Tinto and BHP Pilbara sites • MEnD engaged by Rio Tinto and BHP to help model assets requiring remediat
Slide 15: Building & Facade Performance and Outlook
BUILDING & FACADE PERFORMANCE AND OUTLOOK FY24 PERFORMANCE • Near completion of flagship project 51-storey Central Park Tower transformation in Perth • Key projects included the Sydney Harbour Federation Trust project • Completion of the University of NSW project and Westside Hospital in Queensland
Slide 16: Energy Performance and Outlook
ENERGY PERFORMANCE AND OUTLOOK FY24 PERFORMANCE • Drop in revenue due to successful delivery of aviation fuel hydrant package at Western Sydney Airport in 1H FY24, with additional works awarded continuing our presence on site into FY25 • Project activity in the Energy sector has delivered substantia
Slide 17: Other Performance and Outlook
OTHER PERFORMANCE AND OUTLOOK ( I N C L U D E S M A R I N E , T R A N S P O R T & W AT E R I N F R A S T R U C T U R E ) FY24 PERFORMANCE • Reduced revenue mainly due to Transport Infrastructure projects undertaken in FY23 being completed • Marine Division established • Increase in water and wastewa
Slide 18: FY24 Performance: WPF Duratec
FY24 PERFORMANCE • WPF delivered FY24 full year 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 • First company in Weste
Slide 19: FY24 Performance: MEnD Consulting
FY24 PERFORMANCE • 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) • Version 2.0 of Digital Defect Management platform AnnoView was launched in FY24. I
Slide 20: FY24 Performance: DDR Australia
FY24 PERFORMANCE • Equity accounted investment owned by Duratec (49%) and Hutcheson & Co Holdings Pty Ltd (51%) • Strategic acquisition of RC Construction, a specialist civil and structural construction contractor across industry sectors, extends DDR-Duratec’s joint capability in the construction sp
Slide 21: Master Services Agreements (MSA)
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 profitable than Duratec’s average gross profit percentage 21 DURATEC LIMITED – FY24 RESULTS PRESENTATION – 28 AUGUST 2024
Slide 22: Pipeline & Outlook
PIPELINE & OUTLOOK
Slide 23: Order Book, Tender and Pipeline
ORDER BOOK, TENDER AND PIPELINE 1,2 3 4 Note 1: As at 15 August 2024 Note 2: Figures include 49% share of DDR Australia Pty Ltd’s Order Book, Tenders, and Pipeline Note 3: Tenders includes submitted and currently being tendered opportunities Note 4: Pipeline represents tangible opportunities identif
Slide 24: Outlook
OUTLOOK SOLID REVENUE GROWTH ANTICIPATED IN 1H FY25 • 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 delivery of MSA works to
Slide 25: Appendices
APPENDICES DURA Te
Slide 26: Corporate Snapshot
CORPORATE SNAPSHOT Share Price and Volume – FY24 7,000,000 $1.80 Volume (M shares) 6,000,000 $1.60 Close Price ($) 5,000,000 $1.40 4,000,000 $1.20 3,000,000 $1.00 2,000,000 1,000,000 $0.80 0 $0.60 03-Jul-23 03-Aug-23 03-Sep-23 03-Oct-23 03-Nov-23 03-Dec-23 03-Jan-24 03-Feb-24 03-Mar-24 03-Apr-24 03-