DURATEC LIMITED — AGM Information 2024

Nov 21, 2024

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ASX ANNOUNCEMENT
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22 November 2024

2024 ANNUAL GENERAL MEETING

CHAIR AND MANAGING DIRECTOR’S ADDRESS TO SHAREHOLDERS & PRESENTATION

Australian engineering, construction, and remediation contractor Duratec Limited ( Duratec or the Company ) (ASX: DUR) is pleased to provide the Chair address and the Managing Director address for the Company’s 2024 Annual General Meeting being held today, Friday 22 November 2024.

Non-Executive Chair of the Board of Directors, Mr Martin Brydon’s address:

My name is Martin Brydon, I am the Non-Executive Chair of your Company and Chair of this meeting.

It is now 11.00am Australian Western Standard Time, but before I call this Annual General Meeting of Duratec Limited to order, I would like to take a moment to reflect on the recent sudden passing of our fellow Boardmember, Krista Bates.

Krista served on Duratec’s Board of Directors since 1 July 2023 contributing significantly to the company’s strategic direction and governance. Krista was a member of the Audit and Risk, and Remuneration and Nomination Committees, as well as Chair of the Sustainability Committee, where she played an essential role in ensuring the company’s long-term growth and stability. We are deeply saddened by Krista’s passing. She was a respected and admired member of our board, bringing significant business experience and insights that were greatly valued by the Board and management. Our thoughts and condolences are with her family and friends during this difficult time.

I now call this Annual General Meeting of Duratec Limited to order.

Today’s meeting is being held in a virtual format, allowing all shareholders to participate via the Computershare online meeting platform.

On behalf of the Board, I would like to welcome all participants to this Annual General Meeting of Duratec Limited, its fourth as an ASX Listed company.

I would like to begin today by acknowledging the Noongar people, the Traditional Custodians of the land on which we gather, and pay our respects to their Elders past, present and emerging.

Joining me today are my fellow Directors, Chris Oates (Managing Director), and Non-Executive Directors, Gavin Miller, and Phil Harcourt. Phil is joining us online, and Chris and Gavin are here with us in person.

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Duratec Limited ABN 94 141 614 075 ASX code: DUR

108 Motivation Drive, Wangara WA 6065 08 6206 6900 investor.relations@duratec.com.au duratec.com.au

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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 Australian Partners, the Company’s Auditor. AJ is joining us online this morning.

Before we commence today’s formal meeting proceedings, I would like to provide a brief recap of the business performance for FY24 and discuss the success of Duratec’s strategic business model. Following my address, we will attend to all the items outlined in the Notice of Meeting. Following the meeting’s formal proceedings, our Managing Director will provide a more detailed operational update on the Company’s performance in FY24 and the first quarter of FY25.

FY24 has been an exciting time of change and progress on the back of the record FY23 results. The Company delivered a strong profit performance, with revenue ending at another historic high.

FY24 full year revenue of $555.8 million represents another successful year of revenue growth for the Company. Normalised EBITDA of $47.6 million, a 22.6% increase year on year, was at the upper end of our guidance range, with increased average margins. All business groups contributed to this positive outcome and our strong pipeline of work and tender outlook positions the Company well to continue to deliver its growth ambitions.

The strong FY24 result was underpinned by our proven business strategy of having a diversified portfolio across various sectors including defence, building and facade, mining and industrial, energy, marine and infrastructure. This diversity of portfolio provides greater consistency of earnings to deliver positive outcomes for our shareholders. In FY24, our continued focus on winning projects that capitalise on our expertise, experience and capabilities, and the deployment of our Early Contractor Involvement approach has delivered strong project outcomes for our clients.

In line with Duratec’s selective approach to acquisitions that best fit the business, in FY24, we completed a number of acquisitions to boost our end-to-end capabilities. Through WPF, our wholly owned subsidiary, we acquired A&B Welding in Darwin, enhancing our geographic capability and capacity to deliver projects for the mining and industrial, and energy sectors. DDR Australia, Duratec’s 49% owned associate business, completed the strategic acquisition of RC Construction, expanding our capability and allowing further access to aligned procurement opportunities. We also made significant strides through investment in our in-house technologies, which have contributed to enhanced operational capabilities and efficiencies, ensuring we remain competitive and dynamic. These include advanced 3D modelling, adopting further early contractor involvement practices, and technical assets such as the Novarc Technologies’ spool welding robot.

During the year, the Company formalised its Board Sustainability Committee. The focus of the sustainability function within the business has been establishing a baseline of our sustainability impacts, with Scope 1 and Scope 2 emissions as a priority. We remain committed to sustainability and ensuring that it is integrated at a pace and scale that meets the increasing expectations of our stakeholders. We continue to be enthusiastic about supporting women in construction as well as delivering ongoing Aboriginal and Torres Strait Islander opportunities, and will continue to do so in FY25.

We finished FY24 in a strong position. The strategic review led by Chris, following his appointment as Managing Director in December 2023, resulted in an organisational restructure of the business and has ensured sustainable operations, positioning Duratec for future growth and to deliver on our long-term vision and strategy. Our strong

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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 a keen focus on profit margin and follow our core belief that simply winning work to keep busy is not the objective.

Before turning to the formal part of today’s proceedings, I would like to thank the Board for its service during the year, all employees, whose commitment and professionalism has been unwavering in a time of change and evolution, and finally, to our valued shareholders, we thank you for your support in FY24 and your continued support for our business.

I will now turn to the formal part of today’s proceedings.

Managing Director, Mr Chris Oates’ address:

Good morning, everyone. Like Martin, before I present the Operational Update, I would like to pause and extend my sincere condolences and that of our management team to Krista’s family at this time.

I would like to extend a warm welcome to all of you for attending the Annual General Meeting of Duratec Limited today.

Duratec achieved strong growth in revenue and profitability in FY24, continuing the steady growth trend the Company has delivered since its inception. Our Compound Annual Growth Rate continues at a strong level of 32.5%.

The acquisition of A&B Welding in January 2024, through WPF, bolstered the Company’s strategic expansion within the Energy sector in the NT, and doubled our workshop fabrication facility. Based on the successful acquisition of A&B, we have very recently purchased the business assets of another company here in Perth called GF Engineering and entered into a lease for a 12,000m² fabrication and office facility at Naval Base, WA.

Improved revenue contributions from all sectors reflected favourable operating conditions across our markets.

Earnings per share was 8.66 cents, up 9.5% on FY23, while dividends paid to shareholders during FY24 totalled $10 million, representing a solid return.

Our balance sheet remains strong, with net cash of $65.2 million at 30 June 2024 able to support key growth objectives. This is slightly down compared to FY23 due to significant investment being made for future growth and the continuous provision of a solid return to shareholders through dividend payments.

Our orderbook, tenders and pipeline remain very strong and after delivering 4 months of revenue in FY25 the order book is very similar to our full year announcement with just over $400m of work on hand.

Master Service Agreements and annuity style contracts made up $145.8m of revenue for FY24, representing approximately 26% of revenue compared to 19% in FY23. We have a strong focus on growing MSA work with existing clients and adding new clients particularly in the energy sector. This revenue sits outside of our order book.

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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 maintaining our high safety and quality standards.

For the 12-month reporting period, we recorded a lost time injury frequency rate of zero and a total recordable injury frequency rate of 2.74. We continue to invest heavily in safety and training programs and remain vigilant on ensuring that safety is embedded in all parts of our business.

Our Defence sector delivered revenue of $220m and gross profit of $23.6m, this was below our financial expectations, but well above expectations in terms of future potential with large scale projects, mainly through our Duratec Ertech Joint Venture (DEJV) at Stirling Base in WA.

Duratec has worked with the Depart of Defence (DoD) in the evolution of their contracting models towards an Early Contractor Involvement Head Contract (ECI-HC) model. In H1 FY24, DEJV was awarded the Parkes Wharf ECI HC Project. More recently, in FY25 DEJV has been awarded two further ECI projects for the maritime infrastructure upgrade and the controlled industrial facility and supporting facilities at HMAS Stirling.

Following the 2024 DoD Strategic Review and reprioritisation, we have seen a focus shift to increases in spend in Guided Weapons, Nuclear Powered Submarines, Northern Bases, and a general increase to Defence personnel. This aligns with Duratec’s key offerings and geographical locations and presents significant medium to long-term opportunities for growth in this sector.

We have good work on hand in this sector with a growing order book and some fantastic opportunities ahead.

Our Mining & Industrial sector (M&I) delivered a strong result in FY24, with revenue increasing 79.4% to $155.6m year on year and gross profit increasing 70.1% to $33.6m.

Long-term relationships and the early engagement of clients positioned the Company for success in the M&I sector. Securing Master Service Agreements (MSA) and annuity style contracts, delivered by Duratec’s selfperform capability, contributed to the strong performance and this trend continues to provide good quality revenue and provides us confidence for FY25 and beyond.

Duratec has maintained a consistent presence at several key client locations, with our teams delivering specialist remedial solutions on structural integrity and remediation projects, and delivering shutdown projects as well as recurring maintenance work.

Due to ageing assets in the M&I sector, maintenance and remediation activities are expected to grow. In October of this year, we won a $44m structural integrity project for Rio Tinto at Tom Price.

Our Building & Façade sector (B&F) delivered revenue of $111.3m, a 42% increase from FY23, and a gross profit of $20.9m, up 73.4% compared to FY23, with long-term margins looking positive as we increase self-perform delivery and gain traction in the ECI space.

The ECI take up on projects within the B&F sector is still strong, driven by the clients’ desire to understand their assets extremely well prior to undertaking major refurbishment. Our dedicated team is at the forefront of early

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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 expansion and refurbishment of hydrocarbon storage infrastructure, is positioned for strong growth.

In FY24, the Energy sector delivered revenue of $46.6m and gross profit of $15.3m. The fall in revenue is reflective of the successful delivery of the aviation fuel hydrant package at Western Sydney Airport (WSA) in 1HFY24. The Company has since secured the WSA Cargo works contract, continuing its presence on site into FY25.

MSA annuity style works will continue to grow in this sector and the Company has recently gained vendor status at Woodside for the very first time, which opens up maintenance opportunities across their assets.

Our final sector, Other, which includes the remediation and upgrading of marine, transport, and water infrastructure, delivered FY24 revenue of $22.0m and a gross profit of $2.7m, down on revenue but up on profitability compared to last year.

We continue to deliver and target transport infrastructure projects across the country and the tender pipeline is strong. The work on hand position of more than $40m and the vast number of live tenders supports Duratec’s growth trajectory for FY25 and beyond.

Moving now to look at the subsidiary companies, starting with WPF. In FY24, WPF delivered a record revenue of $33.8m and a strong gross profit of $9.6m. This revenue is accounted for in the Energy and M&I sectors.

WPF have recently completed the business asset acquisition of GF Engineering for a total value of $2.2m. As part of that transaction, we have entered into a lease for a 12,000m² fabrication and office facility at Naval Base, WA. This facility provides WPF with three individual workshops and a combined area of 3,000m² under roof to greatly increase our fabrication ability. The purpose-built workshops allow for the segregation of carbon steel, exotic and stainless steel (Duplex) manufacturing.

The facility is strategically located in Naval Base, Western Australia, which provides Duratec close proximity to support its Defence operations at HMAS Stirling Garden Island and to capitalise on opportunities from the Henderson Defence Precinct, recently announced by the State and Federal governments. The transition to the new facility will take 3 – 6 months and this process is well under way.

The outlook for WPF remains exceptionally positive and we anticipate strong growth in FY25 and beyond.

During FY24, MEnD firmly established itself as a market leader of Digital Transformation in the asset management and sustaining capital sectors. A number of significant projects were delivered, including the largest reality modelling, inspection, testing and engineer scopes on the Cape Lambert A Jetty for Rio Tinto.

MEnD continues to innovate proactively and in FY24 launched AnnoView Version 2.0, our Digital Defect Management platform. Our lab services continue to grow and we have recently been reaccredited to NATA standards.

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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 new East Perth office, which includes a purpose-built laboratory. This will allow MEnD to cater for an increased demand for their services.

DDR Australia, Duratec’s Aboriginal and Torres Strait Islander associate business, delivered FY24 revenue of $67.6m, more than double FY23 revenue of $32.7m, and a gross profit of $9.6m.

DDR completed the acquisition of RC Construction (RCC) in January 2024. This acquisition, coupled with an increase in defence spend, contributed to the strong FY24 financial result, of which RCC contributed $15m of the $67.6m revenue.

Looking ahead, we see a very strong growth outlook for DDR by itself, along with a full year contribution from RCC.

Moving now to our Pipeline & Outlook. Duratec’s strong order book of just over $400m and sizeable pipeline of opportunities positions us for significant future growth. Approximately one-third of tenders have some type of ECI content within them and with this ECI content our win rate greatly improves. This, along with our MSA contracting work, provides us confidence for FY25 and well beyond.

Our outlook in all sectors is extremely bright. Our medium-sized project win rate more than doubled in the second half of FY24. These projects have all commenced and will contribute positively to FY25 along with expanding our MSA annuity contract works to both existing and new clients.

The ECI contract model is gaining traction in all sectors. A key focus for Duratec will be the $8 billion spend at Garden Island Stirling Base. Our past work with the DoD has shown our ability to deliver large-scale projects in line with its high quality and safety standards, and Duratec is well positioned to secure opportunities identified in our tender pipeline.

We see strong momentum and demand for our self-performing capabilities in the mining, energy, and building & facade sectors. Our national footprint positions us well to work with clients right across Australia to assist them in delivering their strategy in a safe and efficient manner.

Duratec has a demonstrated history of organic growth and is well funded for future growth, including potential strategic acquisitions, and we have an exceptional team within our Company helping us deliver on this strategy.

In terms of guidance, Duratec’s FY25 revenue is expected to be in the range of $600m to $640m, delivering a forecast EBITDA of $52m to $56m.

With the above outlook, strong work on hand, and our subsidiary companies performing very well, we have not seen our Company in a better position to deliver for you in FY25 and beyond.

I would like to thank the Board, the Leadership team, all employees, our valued clients, and suppliers for their continued support. Finally, I would like to thank you, our valued shareholders, for your ongoing support of Duratec.

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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 Ollie McKeon Executive Manager – Corporate, Strategy & Investor Relations Duratec Limited Investor.relations@duratec.com.au	Company Secretary Dennis Wilkins Company Secretary Duratec Limited Dennis.Wilkins@duratec.com.au

About Duratec Limited

Duratec Limited (ASX: DUR) is a leading Australian contractor providing assessment, protection, remediation, and refurbishment services to a broad range of assets and infrastructure. The Company’s multi-disciplined capabilities combine engineering experience with project delivery expertise and use a range of in-house assessment technologies, including 3D capture and modelling technology with predictive analysis tools. Headquartered in Wangara, Western Australia, Duratec has 20 locations around the country in capital cities and regional centres, delivering services across multiple sectors including Defence, Commercial Buildings & Facades, Infrastructure (Water, Transport & Marine), Mining & Industrial, Power and Energy.

Please visit www.duratec.com.au for further information.

This release contains certain forward-looking statements and forecasts, including in relation to possible or assumed future performance, costs, dividends, rates, prices, revenue, potential growth of Duratec Limited, industry growth or other trend projections. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Duratec Limited. Actual results and developments may differ materially from those expressed or implied by these forwardlooking statements, depending on a variety of factors.

Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information, the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

DURATEC LIMITED FY24 ANNUAL GENERAL MEETING

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IN MEMORY OF KRISTA BATES 1 9 7 2 - 2 0 2 4

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DURATEC LIMITED FY24 ANNUAL GENERAL MEETING

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CHAIR ADDRESS

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MARTIN BRYDON N O N - E X E C U T I V E C H A I R

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PROXY SUMMARY

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RESOLUTIONS FOR AGAINST DISCRETIONARY ABSTAIN RESOLUTION 1 Adoption of Remuneration Report 85,283,668 97.44% 1,986,257 2.27% 254,245 0.29% 76,104 RESOLUTION 2 Re-election of Mr Robert Harcourt as a Director 109,328,193 98.26% 1,696,267 1.52% 254,245 0.22% 174,958 RESOLUTION 3 Re-election of Mr Gavin Miller as a Director 98,761,362 92.54% 7,682,668 7.20% 268,245 0.26% 4,741,388 RESOLUTION 4 Increase in Maximum Aggregate Remuneration for Non-Executive Directors 85,721,607 98.01% 340,214 0.39% 1,402,605 1.60% 23,979,237 RESOLUTION 5 Approval to Grant Performance Rights to Executive Director Mr Oates 86,890,478 99.27% 382,714 0.44% 253,747 0.29% 23,926,724 FY24 ANNUAL GENERAL MEETING PROXY SUMMARY	RESOLUTIONS FOR AGAINST DISCRETIONARY ABSTAIN RESOLUTION 1 Adoption of Remuneration Report 85,283,668 97.44% 1,986,257 2.27% 254,245 0.29% 76,104 RESOLUTION 2 Re-election of Mr Robert Harcourt as a Director 109,328,193 98.26% 1,696,267 1.52% 254,245 0.22% 174,958 RESOLUTION 3 Re-election of Mr Gavin Miller as a Director 98,761,362 92.54% 7,682,668 7.20% 268,245 0.26% 4,741,388 RESOLUTION 4 Increase in Maximum Aggregate Remuneration for Non-Executive Directors 85,721,607 98.01% 340,214 0.39% 1,402,605 1.60% 23,979,237 RESOLUTION 5 Approval to Grant Performance Rights to Executive Director Mr Oates 86,890,478 99.27% 382,714 0.44% 253,747 0.29% 23,926,724 FY24 ANNUAL GENERAL MEETING PROXY SUMMARY	RESOLUTIONS FOR AGAINST DISCRETIONARY ABSTAIN RESOLUTION 1 Adoption of Remuneration Report 85,283,668 97.44% 1,986,257 2.27% 254,245 0.29% 76,104 RESOLUTION 2 Re-election of Mr Robert Harcourt as a Director 109,328,193 98.26% 1,696,267 1.52% 254,245 0.22% 174,958 RESOLUTION 3 Re-election of Mr Gavin Miller as a Director 98,761,362 92.54% 7,682,668 7.20% 268,245 0.26% 4,741,388 RESOLUTION 4 Increase in Maximum Aggregate Remuneration for Non-Executive Directors 85,721,607 98.01% 340,214 0.39% 1,402,605 1.60% 23,979,237 RESOLUTION 5 Approval to Grant Performance Rights to Executive Director Mr Oates 86,890,478 99.27% 382,714 0.44% 253,747 0.29% 23,926,724 FY24 ANNUAL GENERAL MEETING PROXY SUMMARY	RESOLUTIONS FOR AGAINST DISCRETIONARY ABSTAIN RESOLUTION 1 Adoption of Remuneration Report 85,283,668 97.44% 1,986,257 2.27% 254,245 0.29% 76,104 RESOLUTION 2 Re-election of Mr Robert Harcourt as a Director 109,328,193 98.26% 1,696,267 1.52% 254,245 0.22% 174,958 RESOLUTION 3 Re-election of Mr Gavin Miller as a Director 98,761,362 92.54% 7,682,668 7.20% 268,245 0.26% 4,741,388 RESOLUTION 4 Increase in Maximum Aggregate Remuneration for Non-Executive Directors 85,721,607 98.01% 340,214 0.39% 1,402,605 1.60% 23,979,237 RESOLUTION 5 Approval to Grant Performance Rights to Executive Director Mr Oates 86,890,478 99.27% 382,714 0.44% 253,747 0.29% 23,926,724 FY24 ANNUAL GENERAL MEETING PROXY SUMMARY	RESOLUTIONS FOR AGAINST DISCRETIONARY ABSTAIN RESOLUTION 1 Adoption of Remuneration Report 85,283,668 97.44% 1,986,257 2.27% 254,245 0.29% 76,104 RESOLUTION 2 Re-election of Mr Robert Harcourt as a Director 109,328,193 98.26% 1,696,267 1.52% 254,245 0.22% 174,958 RESOLUTION 3 Re-election of Mr Gavin Miller as a Director 98,761,362 92.54% 7,682,668 7.20% 268,245 0.26% 4,741,388 RESOLUTION 4 Increase in Maximum Aggregate Remuneration for Non-Executive Directors 85,721,607 98.01% 340,214 0.39% 1,402,605 1.60% 23,979,237 RESOLUTION 5 Approval to Grant Performance Rights to Executive Director Mr Oates 86,890,478 99.27% 382,714 0.44% 253,747 0.29% 23,926,724 FY24 ANNUAL GENERAL MEETING PROXY SUMMARY
RESOLUTIONS	FOR	AGAINST	DISCRETIONARY	ABSTAIN
RESOLUTION 1 Adoption of Remuneration Report	85,283,668 97.44%	1,986,257 2.27%	254,245 0.29%	76,104
RESOLUTION 2 Re-election of Mr Robert Harcourt as a Director	109,328,193 98.26%	1,696,267 1.52%	254,245 0.22%	174,958
RESOLUTION 3 Re-election of Mr Gavin Miller as a Director	98,761,362 92.54%	7,682,668 7.20%	268,245 0.26%	4,741,388
RESOLUTION 4 Increase in Maximum Aggregate Remuneration for Non-Executive Directors	85,721,607 98.01%	340,214 0.39%	1,402,605 1.60%	23,979,237
RESOLUTION 5 Approval to Grant Performance Rights to Executive Director Mr Oates	86,890,478 99.27%	382,714 0.44%	253,747 0.29%	23,926,724

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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ONLINE MEETING PLATFORM INFORMATION

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FY24 ANNUAL GENERAL MEETING

HOW TO ASK A QUESTION

• 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 instructions below the broadcast window.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING

HOW TO VOTE

• 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 the poll is closed

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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MEETING RESOLUTIONS

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FY24 ANNUAL GENERAL MEETING RECEIPT AND CONSIDERATION OF FINANCIAL STATEMENTS AND REPORTS

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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 Financial Officer, and AJ Neo, a representative of RSM Australian Partners, the Company’s external auditor, are present and available to answer any queries.

• Please note there is no requirement for a resolution in relation to the receipt and consideration of financial statements and reports.

DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING RESOLUTION 1 – ADOPTION OF REMUNERATION REPORT

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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 advisory only resolution.

FOR	AGAINST	DISCRETIONARY	ABSTAIN
85,283,668	1,986,257	254,245	76,104

Further Information

• The Board encourages all eligible Shareholders to cast their votes in favour of this resolution.

• The Chair will vote all available undirected proxies in favour of this resolution.

• Voting restrictions apply as set out in the Notice of Meeting.

• The Remuneration Report can be found on pages 49 to 54 of the FY24 Annual Report.

DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING RESOLUTION 2 – RE-ELECTION OF MR ROBERT HARCOURT AS A DIRECTOR

• 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 Mr Harcourt has held numerous roles including; Senior Project Engineer and CEO of Savcor Finn Pty Ltd, and Chief Operations Officer of the publicly listed company Savcor Group.

• Mr Harcourt along with two trusted colleagues established Duratec in 2010 and acted as Managing Director from listing until 1 December 2023.

• During his tenure as Managing Director, he led the Company through a period of rapid growth to become a highly recognised and reputable specialist civil remediation contracting company and was responsible for the overall management of the Company, health, safety, environment and quality control, strategic planning, new business opportunities and risks and business development.

• Mr Harcourt is currently a member of the Audit and Risk Committee, Remuneration and Nomination Committee and Sustainability Committee.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING RESOLUTION 2 – RE-ELECTION OF MR ROBERT HARCOURT AS A DIRECTOR

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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 Constitution and the Listing Rules and, being eligible, offers himself for re-election as a Director, is re-elected as a Director.

FOR	AGAINST	DISCRETIONARY	ABSTAIN
109,328,193	1,696,267	254,245	174,958

Further Information

• The Board (with Mr Harcourt abstaining) recommends that shareholders vote in favour of this resolution.

• The Chair will vote all available undirected proxies in favour of this resolution.

• Details of the experience and qualifications of Mr Harcourt are set out on page 10 of the Notice of Meeting.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING RESOLUTION 3 – RE-ELECTION OF MR GAVIN MILLER AS A DIRECTOR

• 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 Directors.

• He has over 30 years of financial and commercial management experience in various industries, including manufacturing, utilities and civil construction.

• Mr Miller is currently chair of the Audit and Risk Committee and a member of the Remuneration and Nomination Committee.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING RESOLUTION 3 – RE-ELECTION OF MR GAVIN MILLER AS A DIRECTOR

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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 Listing Rules and, being eligible, offers himself for re-election as a Director, is re-elected as a Director.

FOR	AGAINST	DISCRETIONARY	ABSTAIN
98,761,362	7,682,668	268,245	4,741,388

Further Information

• The Board (with Mr Miller abstaining) recommends that shareholders vote in favour of this resolution.

• The Chair will vote all available undirected proxies in favour of this resolution.

• Details of the experience and qualifications of Mr Miller are set out on pages 10 to 11 of the Notice of Meeting.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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NED Fee Cap )
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FY24 ANNUAL GENERAL MEETING

RESOLUTION 4 – INCREASE IN MAXIMUM AGGREGATE REMUNERATION FOR NON-EXECUTIVE DIRECTORS

• 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 increased except with the prior approval of shareholders. Clause 14.5 of the Constitution provides that the maximum aggregate amount of directors’ fees payable to non-executive directors is to be determined by shareholders in a general meeting in accordance with the Listing Rules.

• The current NED Fee Cap of $500,000 was set at the Company’s 2021 AGM. The remuneration paid by the Company to the executive directors is not included in the NED Fee Cap. The relevant remuneration is all fees payable to a non-executive director for acting as a director of the Company (including attending and participating in any Board committee meetings) and includes superannuation contributions for the benefit of a non-executive director and any fees which a non-executive director agrees to sacrifice for other benefits. However, in accordance with Listing Rule 10.17, the NED Fee Cap does not include the re-imbursement of genuine out-of-pocket expenses, genuine “special exertion” fees payable in accordance with the Company’s Constitution or any equity securities issued to a non-executive director with the prior approval of shareholders pursuant to Listing Rule 10.11 and/or 10.14.

• The Board consider it is reasonable and appropriate at this time to seek shareholder approval for an increase to the NED Fee Cap (for the purposes of Listing Rule 10.17) in recognition of the need to pay market competitive fees to ensure the Company is able to attract and retain non-executive directors of the requisite calibre for the Company’s Board and in recognition of directors’ expanding roles of oversight given ever expanding and more onerous governance requirements. The proposed directors’ fee pool of $750,000 is in line with non-executive director fee pools of comparable companies. The Board does not intend to pay the full amount of the aggregate cap in the short to medium term.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING

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RESOLUTION 4 – INCREASE IN MAXIMUM AGGREGATE REMUNERATION FOR NON-EXECUTIVE DIRECTORS 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-executive Directors be increased by $250,000 from $500,000 to $750,000 per annum.

FOR	AGAINST	DISCRETIONARY	ABSTAIN
85,721,607	340,214	1,402,605	23,979,237

Further Information

• The Board (other than the Managing Director) makes no recommendation to Shareholders regarding this Resolution. The Managing Director recommends that Shareholders vote in favour of this resolution.

• Voting restrictions apply as set out in the Notice of Meeting.

• The Chair will vote all available undirected proxies in favour of this resolution.

• Further information is set out on pages 11 to 12 of the Notice of Meeting.

DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING RESOLUTION 5 – APROVAL TO GRANT PERFORMANCE RIGHTS TO EXECUTIVE DIRECTOR MR OATES

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• 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 Employee Equity Plan.

• Subject to shareholder approval of Resolution 5, the Performance Rights to be granted to Mr Oates for the 2024/2025 financial year will not vest (and the underlying Shares will not be issued and depending on the participant's election the cash will not be paid) unless certain performance conditions have been satisfied. The grant of Performance Rights is designed to reward long term sustainable business performance which is aligned to the long-term strategic objectives of the Company.

• 600,000 Performance Rights will be subject to the standard performance hurdles and 250,000 Performance Rights will be subject to the stretch hurdles.

• It is proposed that 50% of Mr Oates’ Performance Rights under both hurdles for the 2024/2025 financial year will be performance tested against total shareholder return (TSR) performance, and the other 50% be tested against earning per share (EPS) performance over a 3-year period from a Start Date of 1 July 2024 to a Test Date of the date of release of the financial results for the year ended 30 June 2027.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING

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RESOLUTION 5 –APROVAL TO GRANT PERFORMANCE RIGHTS TO EXECUTIVE DIRECTOR MR OATES 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 Equity Plan to executive Director Mr Oates (or his nominees) on the terms and conditions set out in the Explanatory Statement accompanying this Notice of Meeting.

FOR	AGAINST	DISCRETIONARY	ABSTAIN
86,890,478	382,714	253,747	23,926,724

Further Information

• The Board (with Mr Oates abstaining) recommends that shareholders vote in favour of this resolution.

• Voting restrictions apply as set out in the Notice of Meeting.

• The Chair will vote all available undirected proxies in favour of this resolution.

• Further information is set out on pages 12 to 16 and in Annexures A, B, and C of the Notice of Meeting.

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20 DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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QUESTIONS

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CONDUCT OF POLL

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MEETING CLOSED

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OPERATIONAL UPDATE

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CHRIS OATES M A N A G I N G D I R E C TO R

IMPORTANT NOTICE & DISCLAIMER

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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 financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, Duratec has not considered the objectives, financial position or needs of any particular recipient. Duratec strongly suggests that investors consult a financial advisor prior to making an investment decision.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Duratec, its respective related bodies corporates, shareholders, directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability for any loss arising from the use of information contained in this presentation or otherwise arising in connection with this presentation.

This presentation may include "forward-looking statements". Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Duratec and its respective officers, employees, agents or associates, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Duratec assumes no obligation to update such information. Recipients of this presentation are strongly cautioned not to place undue reliance on forward-looking statements.

This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment.

The distribution of the presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of Duratec have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING MANAGING DIRECTOR’S – OPERATIONAL UPDATE

* Compound Annual Growth Rate over 15 Years

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING MANAGING DIRECTOR’S – OPERATIONAL UPDATE

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 3 : Interim dividend of 1.5 cents per share and final dividend of 2.5 cents per share, fully franked Note 4: Basic earnings per share (cents) Note 5: Tenders includes submitted and currently being tendered opportunities Note 6: Pipeline includes 49% share of DDR Australia Pty Ltd Revenue and 100% share of WPF Duratec Pty Ltd (wholly owned subsidiary)

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING MANAGING DIRECTOR’S – OPERATIONAL UPDATE

MASTER SERVICES AGREEMENTS (MSA)

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• 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

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING MANAGING DIRECTOR’S – OPERATIONAL UPDATE

KEY BUSINESS DRIVERS

• Aged infrastructure

• Asset capacity expansion

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• Growing asset markets

KEY MARKET SECTORS

• Defence

• Building & Facade

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• Mining & Industrial

• Energy

• Other – Marine, Transport and Water Infrastructure

Duratec’s 1,132 employees are spread across 19 locations Australia-wide.

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WPF Duratec Pty Ltd (WPF)

(wholly owned subsidiary)

Leading Energy sector remediation and fabrication company based in Western Australia and the Northern Territory.

MEnD Consulting Pty Ltd

(wholly owned subsidiary)

Leading technical consultant with a focus on protection and rehabilitation of the built environment.

DDR Australia Pty Ltd

(associate investment)

Leading majority Aboriginal-owned contractor in Defence and Resources (IPP-funded opportunities)​.

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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SAFETY & LEARNING

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30 | DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024
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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

• Supervisor Leadership Program continues to provide onsite leadership skills and knowledge

• Abrasive blast and paint training facility provides in-house capabilities to deliver Verification of Competency assessments

• CareFactor continues to be rolled out across the business

• Commitment in offering development opportunities with our Traineeship and Apprenticeship Programs

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||||||
|---|---|---|---|---|
|Period|FY22|FY23|FY24|
|LTIFR|[1]|0.98|0.00|0.00|
|TRIFR|[2]|7.81|7.39|2.74|
|AIFR|[3]|72.71|64.88|49.68|
|Hours Worked|2,048,952|2,435,345|2,918,464|

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Note 1 : Lost Time Injury Frequency Rate Note 2 : Total Recordable Injury Frequency Rate Note 3 : All Injury Frequency Rate

FY24 ANNUAL GENERAL MEETING MANAGING DIRECTOR’S – OPERATIONAL UPDATE

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• Significant increases in tendered works places Duratec in strong position for FY25

• Duratec’s self-perform capability has positioned the company as the partner of choice in delivering shutdown projects as well as recurring maintenance work

• Defence spend ramping up significantly as nuclearpowered submarine and other surface vessel fleet requires major infrastructure upgrades at Garden Island Stirling Base

• Growth in maintenance and remediation activities expected due to ageing M&I assets

• DEJV currently working on three ECI planning phase projects at Garden Island Stirling Base

• Growth in Northern Territory and Queensland with Rio Tinto and BHP BMA

• Recent award of $44m structural integrity project for Rio Tinto

• Duratec’s key offerings and locations align with the May 2024 National Defence Strategy, presenting significant opportunities for growth in this sector

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• National presence and in-house design capabilities to support increasing demand from building owners derisking portfolios or repurposing assets through facade remediation

• Strategic and selective approach to focus on key public building infrastructure for State Governments has resulted in a strong order book and pipeline of identified opportunities

• Stronger outlook for asset owners choosing ECI type contracts and MEnD digitisation services

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24 ANNUAL GENERAL MEETING MANAGING DIRECTOR’S – OPERATIONAL UPDATE

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• Recently gained Woodside vendor status and have several remediation opportunities

• Continue to leverage cross-subsidiary synergies to rollout respective Duratec and WPF capabilities into existing client base (recently won first Blast and Paint refurbishment project for Inpex)

• Newly formed national focus for the Energy sector will ensure Duratec is well positioned to secure and deliver projects which provide disciplined growth in revenue and profit

• New Marine Division positions the business to target further market share across the sector and to better support existing and upcoming Defence Marine Contracts

• The work-on-hand position in excess of $40m supports Duratec’s growth trajectory for FY25 and beyond

• Strong tender pipeline with larger scale prospects expected to come to fruition in FY25

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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33 | DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024
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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 contractor of choice and key partner in the decommissioning of assets on the North-West Shelf

• Darwin expansion aligns with key asset locations for major clients including Inpex, Shell, and Santos (in Q4 workshop at 100% capacity)

• Commenced discussions with Chevron for WPF services

• Expansion of WPF Cockburn facility required in short/medium term to meet increased demand

• Strong growth anticipated in FY25 and beyond

ENERGY SECTOR EXPANSION ACQUISITION UPDATE

• Recently completed business asset acquisition of

• GF Engineering Pty Ltd for a total value of $2.2m

• Lease of 12,000m[2] fabrication and office facility at

• Naval Base, WA

• New facility provides 3 individual workshops and a

• combined area of 3,000m[2 ] under roof, greatly increasing fabrication ability

• Strategic location in close proximity to Defence operations at HMAS Stirling Garden Island

• Ability to capitalise on opportunities from the Henderson Defence Precinct, recently announced by the State and Federal governments

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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FY24

• 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 opportunities by offering a full range of services for the entirety of an asset’s lifecycle, enhancing end-to-end asset management services

• Working collaboratively with BHP Iron Ore, Yara Pilbara and Rio Tinto in the Pilbara region of Western Australia across 10 mines assessing key assets and assisting with maintenance plans

• Relocation to new office and purpose-built laboratory facility in Perth increases capability to deliver for MEnD clients

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• Equity accounted investment owned by Duratec (49%) and Hutcheson & Co Holdings Pty Ltd (51%)

• Provides meaningful work and training opportunities to Aboriginal and Torres Strait Islander peoples

FY24 PERFORMANCE

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OUTLOOK

• Solid platform for future growth with work-on-hand of $52.7m at the commencement of FY25

• Secured $54.7m contract for DoD in the NT in 1Q FY25

• Forecast is strong, bolstered by a portfolio of projects that ensure steady revenue streams

• Healthy prospects in part due to Commonwealth Government’s acknowledgment of the importance of Indigenous engagement procurement and the provision for sole sourcing such entities

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PIPELINE & OUTLOOK

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[[4]]
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ORDER BOOK, TENDER AND PIPELINE 1, 2
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TENDERS [[3]]
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ORDER BOOK TENDERS [[3]] PIPELINE [[4]]
22% 5% [5%]
25%
6%
34%
$409 34% $1.5 18% $4.1
4%
million billion billion
66%
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ORDER BOOK
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Note 1 : As at 20 November 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 identified in the market by the Duratec

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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OUTLOOK

SOLID REVENUE GROWTH ANTICIPATED IN 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 existing clients coupled with new MSA clients

• Large projects including Coonawarra, Tindal, Berth C&D and WSA still continuing through FY25

• Solid platform for growth with strong work on hand for DDR

• Forecast FY25 revenue of $600m to $640m and EBITDA of $52m to $56m

MEDIUM TO LONG-TERM OUTLOOK

• Growing Orderbook and strong Tender outlook

• ECI contract model take up from clients coupled with MEnD digitisation of assets and lab services

• $8b in additional investment is planned in infrastructure in Western Australia to support Australia’s transition to a nuclear-powered submarine fleet

• Strong tailwinds in Mining, Energy and Building Maintenance

• Increasingly strong outlook for Duratec throughout the Pacific region (Australian Government spend and energy maintenance spend)

• Funded for future growth and potential strategic acquisitions

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DURATEC LIMITED – FY24 ANNUAL GENERAL MEETING – 22 NOVEMBER 2024

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OPERATIONAL UPDATE

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CHRIS OATES M A N A G I N G D I R E C TO R

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QUESTIONS

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DURATEC LIMITED FY24 ANNUAL GENERAL MEETING

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