Duratec : 2021 AGM - Chair Address and Managing Director Address

ASX ANNOUNCEMENT

only19 November 2021

2021 AGM - CHAIR ADDRESS AND MANAGING DIRECTOR ADDRESS

Duratec Limited (Duratec or the Company) (ASX: DUR), is pleased to provide the Chair address and the Managing
Director address for the Company's 2021 Annual General Meeting being held today, Friday 19 November 2021.
Authorised for release to ASX by Dennis Wilkins, Company Secretary
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Media Contact	Investor Contact
Duratec Limited	Duratec Limited
Paul Gold	Dennis Wilkins
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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 fifteen branches 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.aufor further information.

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onlyAGM 19th November 2021

CHAIR'S ADDRESS

Today, I would like to provide a recap of the business performance for FY21, discuss the strategic direction of usethe business and then close with some comments on recent business performance.

2021 Performance

I will start my discussion on our performance with a few comments on safety. Duratec has a culture that supports positive safety outcomes throughout the business. We actively encourage our people to identify all safety risks and empower them to instigate actions to manage those risks to drive improved safety outcomes.

The lag indicators included in the Annual Report1 are standardised measures. It shows there were no Lost Time personalInjuries (LTIs) in FY21 and FY20 and we saw a modest improvement in the Total Recordable Injury Frequency

Rate (TRIFR) in FY21.

We believe a company with a good safety record is indicative of a well-run business. Therefore, health and safety is an area of constant focus within the business and is the first agenda item at our Board meetings. We believe that good safety outcomes are driven by effective leadership at all levels of the organisation together with empowered employees who are provided with the right systems, processes, and tools to get the job done.

COVID-19 has been the health issue that has permeated society generally and specifically the business environment. The recent Delta variant has shown how quickly the operational environment can change and we have, like everyone else, had to continually adapt to address the challenges this poses. Our focus has been on ensuring our people are safe and supporting them through this difficult period as best we can.

In spite of COVID-19, the financial performance for FY21 was solid and achieved without Federal government JobKeeper support.

The balance sheet remains well positioned for growth and the FY21 dividend of 1.5 cents per share was paid on 13th October 20212.

ForThe Board introduced a Dividend Reinvestment Plan on 30th August3 to allow shareholders to reinvest their dividends for long term growth at a 5% discount to the prevailing average volume weighted share price. This resulted in 537,4594 shares being issued at a value of $194,614 to participating shareholders. As a Board, we believe this provides shareholders, who choose to participate, with benefits over the longer term. We will review this from time to time as part of our capital management plans.

1. Duratec ASX release 'June 2021 Full-Year Financial Report including 4E' dated 30 August 2021.
2. Duratec ASX release 'Dividend/Distribution - DUR' dated 30 August 2021.
3. Duratec ASX release '2021 Dividend Reinvestment Plan' dated 30 August 2021.
4. Duratec ASX release 'Application for quotation of securities - DUR' dated 13 October 2021.

Strategic Plans

Duratec's strategic goals remain unchanged from those stated in the company's Prospectus5 with sustainable

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growth planned in all the key sectors in which we operate. To that end, we have continued to resource the key support functions required to manage the pipeline of work and ensure that when work is won, it can be safely and successfully undertaken to our clients' satisfaction.

We continue to pursue growth opportunities, examples of which include: the $63.0m Major Perth Facade project announced on 9th March6, the recent Ertech joint venture (DEJV) project announcement on 13th August regarding a $53.0m wharf extension project7, and the announcement last week of a $50.0m aviation fuel infrastructure contract . These projects, along with the many smaller contract awards, and the ongoing success of our associate investment DDR, highlight the positive momentum enjoyed in the current financial year.

useCurrent performance

In the Annual Report I outlined the uncertainties that the business had to contend with during 2021. As I am ure you have observed, these issues have continued into the current financial year with significant lock downs in New South Wales and Victoria; with the Victorian construction industry closed for a fortnight in September/October. This impacted Duratec's business performance in the Eastern states to a greater level than was initially expected.

personalHowever, we are encouraged by the high rate of COVID-19 vaccination occurring across Australia allowing a staged return to a more normal state of operations.

I would like to say how impressed I have been with Phil and his team in managing the challenges COVID-19 has presented the business. This was no easy task, but it has, and continues to be, addressed in a very professional manner.

Forecast

Our pipeline of work remains very strong, and we continue to invest in business capabilities in order to meet these and other opportunities.

The business remains very well positioned for growth over the medium term. Given the ongoing uncertainties, we are not providing a financial forecast for the current year at this stage. Our 1HFY22 results are planned for release to the market on 28th February 2022.

I would like to thank the Board, Phil and the Leadership team, all employees, our clients and suppliers for their efforts and support during the year.

Finally, I would like to thank you, our shareholders, for your ongoing support.

ForI will now hand over to our Managing Director, Phil Harcourt, to provide a more detailed operational update and present his overview on the Company's results for the year. We will take questions following Phil's address.

1. Duratec ASX release 'Replacement Prospectus' dated 3 November 2020.
2. Duratec ASX releases 'Duratec executes LOI for $63m major façade refurbishment' dated 9 March 2021 & 'Market update - record orderbook and tendered works' dated 2 June 2021.
3. Duratec ASX releases 'Duratec secures $53 million contract' and 'Clarification - Duratec secures $53 million contract' dated

1. August 2021.

1. Duratec ASX release 'DURATEC SECURES $50M ENERGY CONTRACT' dated 11 November 2021, released 12 November 2021.

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onlyAGM 19th November 2021

MANAGING DIRECTOR'S ADDRESS

Thank you for your update Martin.

useI would also like to extend a welcome to all of you at this the inaugural Annual General Meeting of Duratec Limited as an ASX Listed company. My Name is Phil Harcourt, and I am Duratec Limited's Managing Director.

Martin mentioned that Duratec was admitted to the Official List of ASX Limited on Tuesday 3rd November 2020. As one of the three founding shareholders of Duratec, I have been intimately involved in the growth and evolution of the company over the past 11 years. Duratec has grown from a small business to what it is today with 20 branches

around Australia in all states and territories and in several regional areas. Western Australia (WA & NT) remains personalvery important to us but as you can see from the geographically segmented financial results, 48% of revenue is now generated in the Eastern States. We have a large pipeline of work and are focused on delivering contract wins,

subject to COVID-19 restrictions. Like all businesses, this has been a major disrupting factor to our business, affecting the contract award process through to contract execution. That said, we appear to be moving more steadily toward a 'new normal' and I will discuss this further below.

As Martin mentioned, in the current environment, we are reluctant to provide outlook statements given the inherent uncertainties in the marketplace due to COVID-19. However, I remain very positive on the medium-term prospects of the business given our work on hand, pipeline of future works and the demonstrated agility of our teams to rapidly respond to client requirements.

Now, when discussing the FY21 year, I will refer to information highlighted in the Annual Report1. People

The nature and type of work we perform means that we are a very people focused business; ensuring we employ and retain the best, equip them with what they need and provide them with exciting and challenging opportunities to grow and develop. A strong emphasis has been placed on training and development programs.

ForFurther, maintaining the safety and wellbeing of our personnel and all who operate in the vicinity of our projects is our number one priority.

In FY21, incident and potential incident reporting continued to be very proactive and openly communicated. It was also pleasing to see the trending down of the lag indicators for both DDR and Duratec. It was noted that the lag indicators have been adversely affected by some minor hand injuries and we have been implementing initiatives and a national campaign to help drive improved outcomes in this area. We maintain a clear focus on lead indicators including safety observations and task inspections. These are included in our KPI's to promote safety awareness, compliance, and

1 Duratec ASX release 'June 2021 Full-Year Financial Report including 4E' dated 30 August 2021.

continuous improvement.

FY21 Business Performance Review

onlyAs discussed in the Annual Report, the FY21 operating and financial results reflected a challenging year with revenue growth restricted by COVID-19 induced project award delays, particularly in the Defence sector, as well as productivity impacts associated with individual State border closures and lockdowns, (including 110 days in Victoria).

In FY21 Duratec generated total revenue of $235.7m (excluding Duratec' s 49% share of $50.7m from DDR) down 4.7% from the FY20 revenue of $247.3m.

The FY21 financial results included the costs associated with the Initial Public Offering (IPO). Accordingly, in the usefollowing results, the pre-tax profit has been adjusted to remove the impact of $2.5m of IPO costs expensed in

FY21 and $0.7m in FY20.

Normalised Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was $18.8m (i.e., 8.0% of revenue), down from 9.1% of revenue in FY20.

Duratec' s normalised Earnings Before Interest and Tax (EBIT) of $13.6m were down $4.6m from FY20. Normalised Net Profit After Tax (NPAT) (inclusive of the contribution from associate DDR) was $8.6m compared with $12.2m

in FY20.

personalConsidering the operating conditions, the financial performance in FY21 overall was solid. It is important to note that Duratec did not receive Federal government JobKeeper support during FY21, we ensured we retained our

core operational capabilities even though it resulted in additional costs to the business.

Our operations were impacted by various health and safety protocols that were mandated from time to time which impacted project productivity but helped manage the response to COVID-19.

The Duratec balance sheet remains well positioned for growth with low debt levels and effective working capital management.

Defence

In FY21, the Defence services sector delivered revenue of $98.8m (FY20: $132.7m) and gross profit of $16.9m (FY20: $25.0m).

The performance was commendable in the circumstances as the sectors was impacted by COVID-19 delays in major roject awards with a significant focus on the awarding of small work scope packages via variations to existing

contracts. The Department of Defence has acknowledged that they were underspent in FY21.

ForThe refurbishment, repair and building of Defence infrastructure was successfully undertaken in all Australian States and Territories with 33 multi-discipline projects delivered via an established presence on bases. In July 2021, the Duratec/Ertech 50/50 Joint Venture (DEJV) successfully completed and handed over the Armaments Wharf extension project at HMAS Stirling in WA. This project was successfully delivered notwithstanding the challenges of COVID-19 risk mitigation measures, severe sea, and weather conditions, working on a live base and the backdrop of a pristine marine environment.2

2 Duratec ASX release 'June 2021 Full-Year Financial Report including 4E' dated 30 August 2021.

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