Saunders International Limited · ASX:SND
Saunders International — Investor Presentation (August 2017)
29 slides from Saunders International's investor presentation, Aug 23, 2017
Slide 1: Investor Presentation 2017
2017 Investor Presentation Managing Director & CEO Mark Benson | 23rd August 2017
Slide 2: Company Overview
Company “Saunders is a company built on integrity with a Overview commitment to safety, performance & excellence” 2
Slide 3: Our Business
Our Revenue International Order Book Business Distribution Footprint $46M Our strong order book Up 88% is evidence that our MAINTENANCE INFRASTRUCTURE ACTIVITIES ACTIVITIES diversification strategy 45% 55% Live Tender is on track through acquisition and organic Up 62% growth. Pipeline NSW, VIC, QLD,
Slide 4: Saunders Capabilities
Saunders Capabilities Saunders International Ltd (SND) is an ASX- listed company that provides construction, maintenance and civil engineering services to the energy, resources and infrastructure sectors. With over 65 years experience, Saunders Over 65 years experience in Over 65 years experience as
Slide 5: Construction, Tank Maintenance, Bridge Construction & Maintenance
Construction Tank Maintenance Bridge Construction & Maintenance Structural Mechanical Piping Wharf Repairs Tank & Civil Construction Fabrication Concrete Repairs Precast Manufacture 5
Slide 6: FY17 Highlights
FY17 Safety TRIFR36 reduced by 19% FY17 Maintained Zero LTIFR Highlights Acquisition of CivilBuild - Performing to expectations Leveraged new CivilBuild business with first combined project with Saunders E&C group Solid order book for FY18 Recovery in Engineering Construction group Record year in Ma
Slide 7: Our Strategy
Our “To continue our diversification strategy through engineering innovation, removing interfaces for Strategy our clients & providing value added services” 7
Slide 8: Our Strategy
Our Grow core business • Expand maintenance offering to existing clients Strategy • Diversification outside of refineries • Maintain our focus on Engineering Construction projects • Vertical integration EPC / SMP contracting Strengthen • Partnering / joint ventures to expand our capability to addres
Slide 9: Strategic Objectives
Strategic “Building on our foundations to deliver for our shareholders” Objectives Execution • Continue to explore partnering opportunities with our civil business Engineering Construction • Vertical integration EPC / SMP contracting • Partnering / JV to expand our capabilities to address terminal p
Slide 10: Growth Sectors
Growth Infrastructure • Capitalise on NSW infrastructure boom Sectors • Partner for larger bridge construction projects • Precast capability – Take advantage of the Sydney infrastructure spend EPC Strong • Build on our current success in EPC projects Pipeline • Leverage off growth in high demand rar
Slide 11: Positioned for Growth
Positioned for Order Book Order Book Live Tenders Growth Pipeline $216M Recent $46M $46M $110M $133M $149M $38M contract wins $23M ENGINEERING & CONSTRUCTION $24.5M ASSET SERVICES DEC JUNE DEC JUNE CIVILBUILD $22M 15 16 16 17 $298M Preferred Status $209M $170M $167M $60M DEC 15 JUNE 16 DEC 16 JUNE 1
Slide 12: Geographical Revenue
Geographical $12M Revenue PNG Distribution of $.5M current projects $.6M $.5M $6M QLD $2M S.A PERTH WESTERN NSW $6M NEWCASTLE SYDNEY $9M MELBOURNE ENGINEERING CONSTRUCTION ASSET SERVICES $9M CIVILBUILD $.5M 12
Slide 13: Reconciliation of Consolidated Statutory Earnings
Reconciliation Reconciliation FY17 $000 of Reported profit $1,336 Consolidated Acquisition costs $ 740 Profit on acquisition ($1,355) Statutory One off adjustments $ 412 Earnings Underlying result NPBT $1,133 Income tax expense on underlying ($ 340) NPBT @ 30% Tax effect of profit on acquisition $ 4
Slide 14: Contribution of Acquisition
Contribution of Saunders Civilbuild FY17 $000 Acquisition 3 months ending Revenue $5,087 NPBT $ 262 30-06-2017 NPBT $ 262 • Performing to expectation • Solid order book with recent wins • Operational integration complete • ERP system integration target 31 Dec • Increasing pipeline • Realising revenu
Slide 15: Operating Results
Operating Results Revenue - $M FY NPBT - $M FY NPAT - $M FY 45.8 6.3 43.9 41.8 4.4 3.7 H1 2.8 18.6 1.3 1.4 H1 H1 0.4 0.3 15 16 FY17 15 16 FY17 15 16 FY17 15
Slide 16: Financial Snapshot
Financial Positioned for stronger earning growth in FY18 Snapshot Order book of $46M up 21% from Dec 2016 and up more than 88% from June 2016 Order Book Newly won major projects and preferred contractor status expected to increase revenue and earnings $46M Revenue for H2 $27M is up 46% from H1 total
Slide 17: Operations & Results
Operations INNOVATION | EXCELLENCE | GROWTH & Results 17
Slide 18: Engineering Construction
Engineering Projects Construction Bulk Storage • Terminals Site C Port Botany • Sami Bitumen • Mobil Yarraville Revenue • Viva Clyde Contribution Structural Mechanical & Piping FY17 • Mobil Yarraville SMP E&I Package Engineering Procurement & Construction (EPC) 47% • Mobil – Port Moresby • Civil wor
Slide 19: Asset Services
Asset Projects Services • Ongoing provision of tank maintenance and management services at Mobil Altona • Continued success of multiple tank projects as part of the Viva Clyde Revenue refinery conversion Contribution • Recurring project wins at Caltex Kurnell • Regular stream of projects from non-co
Slide 20: Civil Build
Civil Projects Build • Tamworth Swamp Creek - Single span precast bridge • CPB Tuggerah to Doyalson - In situ pour concrete storm water tank Revenue • BGC Mt Pleasant Bengalla Road - Single span Super T bridge Contribution • NRT Cherrybrook Station - Super T FY17 * 3 Months only supply (precast) • G
Slide 21: Safety, Environment & People
Safety, HY17 Safety Performance • All injury frequency rate 52.95 Environment • TRIFR36 of 6.48 • LTIFR of 0.00 (last LTI May 2013) & People Environmental Performance • Zero reportable environmental incidents • Remain below reporting levels for TRIFR carbon emissions June 2017 Workforce • 50/50 mix
Slide 22: Our Outlook
Our “Strengthen & grow” Outlook 22
Slide 23: Our Outlook
Our • Order book $46M, up 21% on H1 Outlook • Live tenders $216M, up 45% on H1 • Pipeline $298M, up 43% on H1 • Strategy is delivering • Momentum building in pipeline • Strong infrastructure spending • Business well positioned to take advantage of growing pipeline • Continued expansion of maintenanc
Slide 24: Our Projects
Our “Delivering project excellence enabling our clients Projects to meet their challenges today & into the future” 24
Slide 25: Terminals Botany Site C, Mobil Oil PNG, Viva Energy
1. 2. 1. Terminals – Botany Site C 2 x 8.5ML motor spirit tanks for Terminals P/L for their Site C Botany Expansion. Currently 15,000 man hours injury free. 2. Mobil Oil - PNG Design and construct a 5ML diesel tank including the associated civil piping works at their Idubaba Terminal, 3. 4. Port Mor
Slide 26: Main Road WA Bridge 953, Viva Energy Clyde, Mobil
1. 2. 1. Main Road (WA) – Bridge 953 Substructure repairs to heritage listed Narrows Bridge in Perth. Works involved graffiti removal and anti graffiti coating, concrete repairs, crack injection repairs. 2. Viva Energy - Clyde Full service package for T87 – Cleaning, inspection and report preparatio
Slide 27: Westconnex Sydney Wattle St & Concord Rd, Ourimbah Pacific Highway
1. 2. 1. Westconnex - Sydney Wattle St & Concord Rd Saunders Civilbuild are contracted to supply 1051 pre stressed concrete planks (5200 m2 of concrete) for the tunnel entries at both Wattle St and Concord sites. 2. Ourimbah – Pacific Highway Supply and installation of 3 x pre stressed concrete brid
Slide 28: SI Disclaimer
SI Disclaimer This presentation has been prepared by Saunders International Limited (“Saunders”) as a summary of the Company and its operations and for general information purposes only. This presentation is not and should not be considered as an offer or invitation to subscribe for or purchase any
Slide 29: Contact
DISCLAIMER MARK BENSON Managing Director & Chief Executive Officer (02) 9792 2444 mark.benson@saundersint.com 271 Edgar Street, Condell Park NSW 2200 29
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