DUG Technology Ltd

who will take us through the presentation, which was lodged with ASX earlier this morning. We expect this to run for about 30 minutes, after which we'll have Q&A. If you would like to ask questions, research analysts, please raise your hand in raise your hand in Zoom and we will then give you speaking rights and you can ask your question. Handing over to you, Matt, to take us through the presentation.

Thanks, Steve. It's great to be with everybody again at the end of another financial year. I suspect everybody's getting used to who we are. So we're the data people, we're the numerical analysts, we do big algorithms and we have big high performance computers. We're about 21 years old now and our offices are in Perth, London, Houston, KL and Abu Dhabi. We are growing employees, but slowly as we're doing it very carefully and looking at what's going on. We have more than 45 petal flops of compute and you'll see in my note, I talked about we've quadrupled our compute and we've done that via adding new compute that everyone's aware of, but we've also taken the RAM in over 9,000 machines we have from 128 gig of RAM to 384, and that's given them a lot greater throughput. When you're comparing us with our competitors, you'll see our competitors often quote single precision petaflops, so you can double our number to compare with their number. Thanks, Steve. So this is our journey and everyone's probably seen it before. The nice bit is on the end there where we now have an Abu Dhabi office, which is where the fit out is about to kick off. And I think we've got 16 employees over there now who are about to get training and learn our best practice and so forth. Thanks, Steve. So services is where we make most of our money. That is, services are in oil and gas, they're in offshore wind farms, and a few other bits and bobs where people acquire seismic data and we process it for them. That's where the multi-parameter FWI imaging is. Yep, so that's where we make most of our money. Software is a great business. It's our favorite business. It's 11 million in revenue this year. And that's the software that we use, but it also looks after the interpretation piece. So it's the piece that is done in the chain after we process the data. It's interpreted generally by oil companies themselves, and they use our software to do that. And then high performance computing is that we just let people come on and use our computing. They can come on and they can use our computers using their own software. They can come on, use our computers using our software. They can come on and do it in whichever way they like. And we can support them and help them with their codes there as well. Thanks, Steve. oil and gas i've mentioned is where we make most of our revenue i think it's probably uh yeah the vast vast well over 90 of our revenue comes from oil and gas enterprise we have a lot of clients at the moment they just don't spend that much money with us um but all the bioinformatics institutes um from cyro to to um you know, climate modeling to lots of stuff is going on in that place, in that space. And then national security in space, we don't have any revenue yet, but we're still chasing that down. We're actually in a big conference in Adelaide this week. Thanks, Steve. So this is the world according to Doug. The orange colored countries are where we have worked. We've done projects before, so you can see we've worked most places in the world. There's a dotted line running across the world there. That's our fiber network. We don't own it. We just lease it. And yeah, and then we've got our machines around the world. There's three big data centers now around the world. But yeah, it's great to see Abu Dhabi on the map there now. Thanks, Steve. And look, we want to be the biggest and best seismic processing and imaging company on earth. And we're working towards that goal. There's a lot of market for us to gain to get there. We've got our sustainable supercomputing and we grow that, but we grow it judiciously as we go along. And we want to really make a mark in high performance computing as a service as well. continue to do our r d the bac announcement showed you what value can come from our r d efforts thanks steve so getting on to the business of the day um so service wins for the year of 67.4 million which is uh which is a really really big step up from what we had in the year previous Revenue of 65.5 million, so up 29%. Underlying EBITDA of 23.2 million, which is terrific. And of course, the difference between our actual EBITDA and underlying EBITDA is that third-party compute, which because of circumstances of how we won work and how we won work in a really big focused time last year we got caught with not enough compute and that meant we had to use third-party compute and that's the difference between the EBITDA and the underlying EBITDA the services order book at the moment is 36.5 and look that's a really strong order book for us What we have is a really large pipeline at the moment. So we're waiting to see what happens to that pipeline. And people are just taking a little longer this year compared with last year to award work. But the pipeline looks terrific. And so the pipeline, just to remind everybody, is where we put a proposal. Well, there's two parts to the pipeline. This work is where we've actually signed contracts. So this work will be done. Um, it's underway now. The pipeline, um, is then proposals that we've written and delivered and we can, we, we, we risk those as to the BD guys will risk them as to whether they think we'll win or lose that, those particular jobs. And we keep that in the first part of the pipeline. And then the early part of the pipeline is just where we get leads and we, you know, we do market surveys and we put them into the early part and they're risked very heavily. That pipeline looks, we've never had a bigger pipeline that looks, it looks quite amazing. Thanks, Steve. So over to Ajesh.

Thanks. Thanks, Matt. So the key take out on this on this slide is that the strong growth in underlying earnings, EBITDA excluding six and a half million cost of third party compute costs is up 54% on prior year. Total revenue growth was underpinned by services revenue growth of 14.4 mil, or 36%, to a record high of 54.7 mil. Doug won more service contracts than anticipated, which increased our compute requirements, and we chose to meet this extra demand by using third-party compute, whilst our compute was delivered and commissioned. The cost of this was incurred from November 23 to June 24 of $6.6 million, and it doesn't continue into July 24. Excluding the third-party compute costs, other operating costs grew by $4.2 million or circa 40% driven by IT and data center facility costs, up $1.6 million, and growth in sales and marketing up half a mil or 42%. Thanks, Steve. Three points on this. PP, property, plant and equipment has increased by 26 or so mil, reflecting the new computer and auxiliary hardware, less depreciation. Doug has a net debt of 14 and a half million being the asset finance liabilities. of 23.9 million, that's 9.4 million in cash. A strong cash generation will enable us to prioritize repayment of the debt facilities in the following financial year. Thanks, Steve. We generated strong operating cash flow of 12.1. This would have been 16.5 million. without the third party compute costs paid for in the year. About 7 million of PP property plant and equipment was funded from our own cash flows that are not financed. And just a reminder that the capital grant that was received has been recorded under contract liabilities on the balance sheet and has not been taken to the P&L. Thanks, Matt.