Seymour Whyte — FY2013 Earnings Presentation
36 slides from Seymour Whyte's earnings presentation, Aug 28, 2013
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION for the 12 months to 30 June 2013 David McAdam – Managing Director & Chief Executive Officer 28 August 2013 Seymour Whyte Limited Company Update 1 www.seymourwhyte.com.au
Slide 2: Disclaimer and Technical Note
Disclaimer and Technical Note DISCLAIMER This presentation contains forward looking statements, which are by their 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 outside the control of Seymour Whyte
Slide 3: Results Overview
Results Overview o Revenue of $282.4 million, compared to $307.4 million in FY12 o Profit (after tax) of $9.3 million includes $1.4 million R&D tax credit Earnings slightly o EBITDA margin of 4.5% (FY12: 4.8%) ahead of guidance o Basic Earnings Per Share (EPS) of 11.9 cents o Full benefit of operati
Slide 4: Financial Results
Section 1 FINANCIAL RESULTS 4 www.seymourwhyte.com.au
Slide 5: Full Year Results
Full Year Results o Net profit up 4.7% to $9.3m 14 o Income tax expense decreased 50% to $2 million (mainly due to R&D tax credits) $12.3m $11.9m 12 o FY12 legacy issues fully resolved o Overheads significantly reduced 10 $9.3m o Scope growth from existing projects $8.8m 5.9 o Strong balance sheet w
Slide 6: Financial Summary
Financial Summary $m FY12 FY13 Change Total revenue (adjusted for Jointly Controlled Ops)* 307.4 282.4 8.1% Earnings before tax 12.8 11.3 9.5% Income Tax expense 4.0 2.0 50% NPAT 8.8 9.3 4.7% Earnings per share (EPS) 11.4 11.9 4.4% Full Year Dividend 6.0 8.0 33% 30 June 30 June Change 20
Slide 7: Financial Position
Financial Position o Balance sheet strengthened, providing flexibility to underpin Finance Facilities as at 30 June 2013 future growth Bank Guarantees & Bonds – Project Facilities o Improved debtor management increased cash and cash equivalents at year end to $47.7m (FY12: $31.1m) ANZ Limit: $18.25m
Slide 8: Revenue Analysis
Revenue Analysis 350 30% $307m Joint Venture 300 Seymour Whyte $282m 70% 250 $226m 17% 200 $190m $ million Government Private 150 83% 100 10% 50 Queensland New South Wales 0 90% FY10 FY11 FY12 FY13 *Please refer to the technical note appearing at the start of this presentation for an explanation on
Slide 9: Cash Flow Analysis
Cash Flow Analysis Operating Cash Flow 25 $23.7m 20 o Net cash flows from operating activities up 88% ($11.2m) to $23.7m at 30 June 2013 $Millions 15 o Cash generated through strong $12.6m debtor management, not extended credit $9.6m $9.7m 10 o Greater organisational awareness of cash management $5.
Slide 10: EPS and Dividends
EPS and Dividends 14 FY12 payout FY13 payout 14 ratio - 53% ratio – 67% Dividend FY12 payout FY13 payout 12 ratio - 16.6c 53% ratio – 67% o Final dividend of 6.25 cents per share. Earnings 11.9 cents 12 Earnings per o Full year dividends 8.00 cents per share 11.4 cents per Share Earnings per 11.9 ce
Slide 11: Order Book & Pipeline
Section 2 ORDER BOOK & PIPELINE 11 www.seymourwhyte.com.au
Slide 12: New work won – FY13
New work won – FY13 o Bruce Highway (Back Creek) - $29 million >$250 million1 o o Construction of 3.7km of Bruce Highway Queensland Department of Transport and Main Roads o Warrego Highway (Jondaryan – Dalby) - $68 million Total value of work secured in FY13 o Asphalt overlay works to improve flood
Slide 13: Current Projects
Current Projects* * As at 30 June 2013 13 www.seymourwhyte.com.au
Slide 14: Current Projects
Current Projects September December March June September December 2013 2013 2014 2014 2014 2014 Warrego Highway $68 million (Jondaryan) Bruce Highway Upgrade $29 million (Back Creek) Logan Motorway $49 million (Rehabilitation works) Warrego Highway $43 million (Toowoomba Range) Townsville Port Inner
Slide 15: Order Book
Order Book Order Book at start of year $400 Win Rates o Winning more projects through innovation $350 in delivery and pricing. o Win rates (by number of bids) improved $300 $292 to 20% in FY13 (FY12: 9%). o Focused on ‘winnable’ projects in core $250 Total Order markets and smaller projects in strat
Slide 16: Tender Pipeline
Tender Pipeline o Targeted business development program with dedicated resources established. Identified Opportunities (FY14-FY16) - $4.5 billion o $1.4 billion of tenders specifically targeted and contestable in Seymour Whyte’s sectors for FY14. • $660 million of tenders currently submitted. • Targ
Slide 17: Project Review
Section 3 PROJECT REVIEW 17 www.seymourwhyte.com.au
Slide 18: Projects Overview
Projects Overview 18 www.seymourwhyte.com.au
Slide 19: Projects Overview
Projects Overview 19 www.seymourwhyte.com.au
Slide 20: Strategy and Outlook
Section 4 STRATEGY AND OUTLOOK 20 www.seymourwhyte.com.au
Slide 21: Strategic Update
Strategic Update o Primary focus remains on organic growth through Townsville BanoraCruise Point greater penetration in traditional markets (Qld Ship Terminal and NSW) and core clients (Government) o Strong balance sheet provides opportunity for growth-focussed investments • Actively investigating o
Slide 22: Organisational change
Organisational change Deputy CEO, Company Secretary and General o New, flatter organisational structure Counsel Rob Leacock implemented o Recent high calibre key appointments; Chief Financial Officer Nicola Padget • National Safety Manager • Business Development Manager General Manager – Operations
Slide 23: Strategic Objectives
Strategic Objectives Financial Consolidate financial management Market Position Sustainable growth Infrastructure engineer with national footprint Low debt/strong cash model Strategic Objectives Capabilities Systems Enhance and develop in-house capabilities to Implement fully-integrated, fully-mobil
Slide 24: Strategic Platforms
Strategic Platforms Capability & Technology Grow current Leadership capability into & Systems additional transport sector projects; road, rail, marine & airports Apply infrastructure construction Extend geographic engineering skills to spread through utilities sector (water, expansion into third was
Slide 25: FY14 Outlook
FY14 Outlook o Operational improvements to continue. o Normal income tax levels to resume. o Strong Order Book with $246m work on hand including $198m in FY14. o Application of newly acquired/developed systems, processes and competencies in core markets remains key growth driver. o Core market focus
Slide 26: Appendices
Section 4 APPENDICES 26 www.seymourwhyte.com.au
Slide 27: Company Overview
Company Overview o Evolved from specialist road builder to diversified infrastructure engineer and construction company with capabilities in; Infrastructure engineers o Transport and constructors o Utilities o Resources o Established 1987 by John Seymour and Garry Whyte. Proven Capabilities o A demo
Slide 28: Corporate Overview
Corporate Overview PROFILE DIRECTORS Brisbane Technology Park, 12 Electronics Street , Eight Mile Head Office Plains, Queensland Mac Drysdale Chairman Established 1987 David McAdam Managing Director and CEO Employees 240 (as at 30 June, 2013) Don Mackay Non-executive Director Sector 20: Industrials
Slide 29: Core Capabilities
Core Capabilities o Infrastructure engineer and constructor o ‘Difficult’ projects: o Brownfield urban intensive projects o Complex engineering construction sequencing o Multi-disciplinary projects o Application of core capabilities across a range of industry sectors o Management and project deliver
Slide 30: Competitive Advantages
Competitive Advantages o Demonstrated capacity to deliver complex projects o Highest level of prequalification o Experienced management and personnel o Cost competitive against Tier 1 contractors o Technical capability/ high level engineering o Strong positive working relationships o Partner of choi
Slide 31: Board of Directors
Board of Directors Mac Drysdale Don Mackay John Seymour Susan Johnston John Ready David McAdam Chairman Non-executive Director Non-executive Director Non-executive Director Non-executive Director Managing Director & CEO o Over 15 years as o Over 10 years o Founding Director o Over 20 years in senior
Slide 32: Senior Management
Senior Management Rob Leacock Nicola Padget Gary Georgiou Steve Davies-Evans Deputy CEO, Company Secretary and Chief Financial Officer General Manager - Operations Estimating Manager General Counsel o Strong commercial and legal track o Responsible for all aspects of the o Responsible for the succes
Slide 33: Senior Management
Senior Management Des Rowley Kate Strack Tony Perkovic Kevin James National Safety Manager Human Resources Manager Business Development Manager General Manager – Utilities o Takes lead role in implementing key o Extensive experience in long range o Responsible for driving and o Responsible for succe
Slide 34: Occupational Health and Safety
Occupational Health and Safety o Seymour Whyte’s core belief is that we can work incident and injury free. o Appointment of new National Safety Manager – Des Rowley o Safety performance driven through leadership engagement and development o Increased focus on high potential incident management – a l
Slide 35: Environmental performance
Environmental performance o Third party certification of system to AS/NZS ISO 14001:2004 o Capacity below NGER threshold o International recognition for Environmental Management on the Banora Point Upgrade project. 35 www.seymourwhyte.com.au
Slide 36: Industry recognition
Industry recognition o 2013 Annual Safe Work Australia Awards o 2006 Master Builders Excellence in Construction Awards o 2012 International Erosion Control Association o 2005 Northern Rivers Urban Design Awards o 2012 Roads and Maritime Service Construction Quality Awards o 2005 Queensland Engineeri