DUG Technology (DUG) Investor Presentation summary

Business overview and growth strategy

• Specializes in high-performance computing, seismic data processing, and analytics software for the oil & gas sector, with emerging modular data center and cooling IP businesses.

• FY24 revenue split: 84% Geo-Services, 11% Geo-Software, 5% HPCaaS; targeting a $41.9B TAM by 2028 for modular data centers.

• Maintains a global presence with five offices and over 45 petaflops of compute and 52 petabytes of storage.

• Deep client relationships and significant recurring and semi-recurring revenue streams.

• Pipeline has doubled since June 2022, now at its largest ever, driven by new technology and geographic expansion.

Equity raise and use of funds

• Launching an equity raise of ~A$35M: A$30M placement and up to A$5M SPP at A$1.90/share, a 12.8% discount to last close.

• Funds allocated to expand data center infrastructure (A$19M), Middle East expansion (A$6.5M), and DUG Nomad commercialization (A$3M).

• Capital raise supports scaling compute capacity, regional presence, and Nomad supply chain and sales.

• Joint Lead Managers: Barrenjoey Markets and Shaw and Partners.

• SPP open to eligible Australian and New Zealand shareholders, with a maximum application of A$30k per holder.

Technology and product innovation

• MP-FWI imaging technology, developed over a decade, now accounts for 33% of FY24 revenue and is considered industry-leading.

• Elastic MP-FWI, launched in August 2024, enables direct extraction of structure and rock properties, requiring 3-4x more compute than acoustic MP-FWI.

• MP-FWI reduces project turnaround from 12 to 3 months and team size from 2-3 to 1 geophysicist.

• DUG Nomad, a modular, immersion-cooled data center, is gaining traction with prototypes in Australia and the US and active engagement in multiple regions.

• BAC royalty agreement for immersion cooling IP adds a new revenue stream.