Seymour Whyte — FY2012 Earnings Presentation
40 slides from Seymour Whyte's earnings presentation, September 2012
Slide 1: 2012 full year results presentation
Infrastructure Engineers & Constructors Seymour Whyte Limited 2012 full year results presentation David McAdam - Chief Executive Officer Craig Galvin - Chief Financial Officer September 2012
Slide 2: Presentation outline
Presentation outline Seymour Whyte overview Infrastructure Engineers & Constructors FY12 year in review Operational review Outlook FY13 and beyond Appendix 2
Slide 3: Seymour Whyte
Infrastructure Engineers & Constructors Seymour Whyte
Slide 4: Seymour Whyte overview
Seymour Whyte overview Infrastructure engineers and constructors Infrastructure Engineers & Constructors – Transport – Resources – Utilities 25 year history of successful project delivery Trusted delivery partner – clients and joint venture parties Safe delivery is a core value – Zero Harm Competiti
Slide 5: Core capabilities
Core capabilities Infrastructure engineer and constructor Infrastructure Engineers & Constructors ‘Difficult’ projects: – Brownfield urban intensive projects – Complex engineering construction sequencing – Multi-disciplinary projects Application of core capabilities across a range of industry sector
Slide 6: Competitive advantage
Competitive advantage Infrastructure Engineers & Constructors Demonstrated capacity to deliver complex projects High level of prequalification Experienced management and personnel Cost competitive against Tier 1 contractors Technical capability & high level engineering Strong positive working relati
Slide 7: Board of Directors
Board of Directors Mac Drysdale – Chairman Infrastructure Engineers & Constructors Over 15 years as Chairman of Public Company boards Susan Johnston – Director Over 20 years as a non-executive Over 20 years in senior management, director and 10 years as a company director Extensive experience in pol
Slide 8: Executive Leadership Team
Executive Leadership Team David McAdam Infrastructure Engineers & Constructors Chief Executive Officer 30 years in the industry Experienced in projects up to $4bn Transport, resources, water and power experience Fellow of AICD & Fellow of the Institution of Engineers Rob Leacock Gary Georgiou Deputy
Slide 9: Market outlook, NSW and Qld
Market outlook Market outlook, NSW and Qld Infrastructure Engineers & Constructors 30000 25000 20000 Bridges railways harbours 15000 Heavy Industry Roads 10000 Water and sewerage 5000 0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: ACIF's Construction Forecasting Council, A
Slide 10: Market outlook: Queensland and New South Wales
Market outlook Queensland 22000 Infrastructure Engineers & Constructors 20000 18000 16000 14000 Bridges railways harbours QLD 12000 Heavy Industry QLD 10000 8000 Roads QLD 6000 Water and sewerage QLD 4000 2000 0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: ACIF's Construct
Slide 11: FY12 – The year in review
Infrastructure Engineers & Constructors FY12 – The year in review
Slide 12: FY12 - Year in review
FY12 - Year in review Infrastructure Engineers & Constructors Total revenue $307m - 36% NPAT 14.0 50.0% growth 45.0% 12.0 $8.8m NPAT (2.9% margin) 40.0% 10.0 35.0% NPAT Margin % Influencing factors: 30.0% 8.0 NPAT $M – Cost management issues 25.0% – Queensland Government fiscal 6.0 tightening 20.0%
Slide 13: FY12 - Challenges
FY12 - Challenges Infrastructure Engineers & Constructors Event Improvement Plan Restructured project governance to ensure projects are overseen by Cost management experienced, commercially driven line management Decrease in order book (State Increased direction and drive, in implementation of compa
Slide 14: Financial: Summary
Financial: Summary Infrastructure Engineers & Constructors FY11 FY12 Change Revenue (Statement of Comprehensive Income)* $193m $276m Revenue (revenue from Jointly Controlled Ops)* $30m $28m Revenue (revenue from Discontinued Operations)* $3m $3m Total revenue (incl. non-IFRS adj. for Jointly Control
Slide 15: Financial: Revenue analysis – FY12
Financial: Revenue analysis – FY12 Infrastructure Engineers & Constructors Civil Building (consistent with FY11) Government Private (up 6% from FY11) Queensland New South Wales (steady from FY11) Joint Ventures Seymour Whyte (down 9% from FY11) Traditional Contracts Relationship Contracts (up 39% fr
Slide 16: Financial: Analysis of profit
Financial: Analysis of profit 25,000 22,500 Infrastructure Engineers & Constructors 20,000 17,500 15,000 $'000 12,500 10,000 7,500 5,000 2,500 0 NPAT Volume Margin % Corporate Tax NPAT FY11 Construction Construction Expenses FY12 $3.4m decrease in net profit after tax Additional work volumes offset
Slide 17: Financial: FY cash flow analysis
Financial: FY cash flow analysis Infrastructure Engineers & Constructors 16 14 12 10 7.8% increase in cash balances to $31.1m at 30 $Millions 8 June 2012 6 Cash retained for growth 4 and investment to improve 2 systems and capabilities 0 FY07 FY08 FY09 FY10 FY11 FY12 Operating Cash Flow NPAT 17
Slide 18: Financial: EPS and DPS
Financial: EPS and DPS 18.0 FY11 payout Infrastructure Engineers & Constructors ratio - 51% 16.0 15.7c Earnings 14.0 per Share FY12 payout 12.0 ratio - 53% 10.0 11.4c Cents Earnings per Share 8.0 6.0 8.0c Full Year Dividend 4.0 per Share 6.0c Full Year Dividend 2.0 per Share - Jun 11 Jun 12 2.0c fin
Slide 19: Financial: Facilities
Financial: Facilities Infrastructure Engineers & Constructors Facility June 2012 Bank Guarantees & Bonds – Project Facilities Annual renewals: ANZ Limit: $18.0m - Vero: June 2012 (renewed) Drawn to: $5.2m - ANZ: December 2012 Vero Limit: $10.0m Drawn to: $9.2m Total Project Facility: $28m Drawn to:
Slide 20: Occupational health and safety
Business review Occupational health and safety Infrastructure Engineers & Constructors Seymour Whyte’s core belief is that we can work incident and injury free. Driven through leadership engagement and development Increased focus on high potential incident management – a lead indicator 12 month roll
Slide 21: Environmental performance
Business review Environmental performance Third party certification of system to AS/NZS ISO 14001:2004 Infrastructure Engineers & Constructors Capacity below NGER threshold One notifiable incident, Zero prosecutions International recognition for Environmental Management on the Banora Point Upgrade p
Slide 22: Human Resources
Business review Human Resources Infrastructure Engineers & Constructors Continued capability development Leadership development focus as the company grows Third party accredited HR systems (NS HRF – 101:2010) 22
Slide 23: Win rates
Business review Win rates Infrastructure Engineers & Constructors Seymour Whyte Win Rates Decrease attributed to: 35% − Increased market 30% competition 25% − New market penetration 20% (ie. resources, water) 15% − Government funding 10% withdrawal 5% − Project award delays 0% FY10 FY11 FY12 Win Rat
Slide 24: Operational update
Infrastructure Engineers & Constructors Operational update 24
Slide 25: Townsville Inner Harbour Expansion
Strengthening through diversification Townsville Inner Harbour Expansion Seymour Whyte’s first project in the marine transport sector Infrastructure Engineers & Constructors – Reconstruction and extension of Berth 10 and upgrade of Berth 8 – Construction of a multi-purpose cruise terminal Brownfield
Slide 26: Ipswich Motorway Upgrade
Relationship leverage Ipswich Motorway Upgrade $1.65b (SW $200m) Infrastructure Engineers & Constructors Queensland Department of Transport and Main Roads 8km motorway upgrade Australia's largest alliance project Enhanced safety, eased congestion and improved the local transport network 6 months ahe
Slide 27: Port of Brisbane Motorway Upgrade
Leading project management systems Port of Brisbane Motorway Upgrade $232m (SW $116m) Infrastructure Engineers & Constructors Queensland Department of Transport and Main Roads Duplication of two-lane motorway and 3km extension Construction 65% complete Details as at August 27th 2012 Details as at Au
Slide 28: Landsborough Highway Flood Rehabilitation
Supporting a key client Landsborough Highway Flood Rehabilitation Infrastructure Engineers & Constructors $70m (SW $35m) Department of Transport and Main Roads Federally funded flood restoration works Roadway reconstruction, shoulder repairs and pavement patching Maximising local industry participat
Slide 29: Pacific Motorway Upgrade - Banora Point
Environmental excellence Pacific Motorway Upgrade - Banora Point $292.9m (SW $88m) Infrastructure Engineers & Constructors NSW Roads and Maritime Services Upgrading four-lanes to six-lanes spanning 2.5kms Extensive traffic management, total commitment to the environment, community enhancement (brown
Slide 30: Current order book and expected project durations
Current order book and expected project durations FY13 work from current FY14 current order order book = $175m book = $50m Infrastructure Engineers & Constructors Douglas Arterial Duplication Princes Highway - Victoria Creek Townsville Port Access Road Thornton Rail Bridge Brownes Farm Reserve Curre
Slide 31: Revenue vs Order Book
Revenue vs Order Book 400 Infrastructure Engineers & Constructors 350 300 250 $Millions 200 150 100 50 0 FY08 FY09 FY10 FY11 FY12 FY13 Gap (Potential to be realised) Order book at start of year - Subsequent project awaiting award Revenue (actual) Subsequent project to be confirmed Tightening market
Slide 32: FY13 Outlook
Infrastructure Engineers & Constructors FY13 Outlook 32
Slide 33: FY13 Outlook
FY13 Outlook Infrastructure Engineers & Constructors Flat NPAT growth Forward order book at 30 June 2012 = $225m ($175m in FY13) 33
Slide 34: FY13 Outlook and initiatives
FY13 Outlook and initiatives Significant market-based challenges to be overcome. Infrastructure Engineers & Constructors − Fiscal tightening by Queensland Government expected to reduce opportunities in core market. − Softening of resources market. Transition to flat management structure with clear a
Slide 35: FY13 and beyond
FY13 and beyond Infrastructure Engineers & Constructors Geographic Sector Client TMR QLD Transport RMS NSW from... Other Utilities Other Resources Transport QLD TMR Utilities to… NSW Resources RMS Other Other 35
Slide 36: Appendix
Infrastructure Engineers & Constructors Appendix
Slide 37: Shareholder information
Shareholder information Directors and the Executive Leadership Team have invested in the future of Infrastructure Engineers & Constructors the company: Substantial Shareholders: − Racelid Pty Ltd (Garry Whyte): 27.57% − Rabtuvi Pty Ltd (John Seymour): 23.21% Executive Leadership Team (see slide 8):
Slide 38: Industry recognition
Industry recognition 2012 New South Wales CCF Earth Award Infrastructure Engineers & Constructors 2012 Queensland CCF Training Awards – Multiple awards 2011 Queensland CCF Earth Award – North Shore Boulevard 2011 Queensland CCF Training Award 2010 Queensland CCF Earth Award 2010 Queensland CCF Train
Slide 39: Disclaimer and important notice
Disclaimer and important notice This presentation contains forward looking statements, which are by their Infrastructure Engineers & Constructors nature subject to significant uncertainties and are based on a number of estimates and assumptions that are subject to change (and in many cases are outsi
Slide 40: Disclaimer and important notice: Technical note
Disclaimer and important notice TECHNICAL NOTE Infrastructure Engineers & Constructors This presentation provides a snapshot of Seymour Whyte’s operational and financial highlights for FY2012. The financial information contained in this presentation has mainly been extracted from Appendix 4E: Prelim