Saunders International Limited · ASX:SND
Saunders International — Investor Presentation (September 2017)
31 slides from Saunders International's investor presentation, Sep 11, 2017
Slide 1: Capital Raising Investor Presentation
2017 Capital Raising Investor Presentation Managing Director & CEO Mark Benson | 11 September 2017
Slide 2: Disclaimer / Important Notice
SI 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. Disclaimer This presentation is not and should not be considered as an offer or invitation to subscribe for or purchase any
Slide 3: Table of contents
Table of contents 1. Transaction overview 2. Saunders today 3. Continued platform for growth 4. Offer key dates 5. Sources and uses of funding 6. Offer timetable 7. Appendix: Key risks 3
Slide 4: Transaction overview
Transaction Placement The Company has made a Placement to institutional and sophisticated investors to raise $2.75 million via the issue of 5.5 million Shares at $0.50 each. This Placement increased the Company’s shares on issue to 92.7 million (before the Offer). overview Rights Offer The Offer Doc
Slide 5: Company Overview
Company “Saunders is a company built on integrity with a Overview commitment to safety, performance & excellence” 5
Slide 6: 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 6
Slide 7: Our Business: $46M order book and distribution footprint
Our Revenue International Order Book As at 30 June 2017 Business Distribution Footprint $46M Our strong order book Up 88% is evidence that our MAINTENANCE INFRASTRUCTURE ACTIVITIES ACTIVITIES diversification strategy is 45% 55% Live Tender on track through acquisition and organic Up 62% growth. Pipe
Slide 8: FY17 Highlights
FY17 Safety TRIFR36 reduced by 19% in FY17 Maintained Zero LTIFR Highlights Acquisition of CivilBuild Business - 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 Recor
Slide 9: Our Strategy
“To continue our diversification strategy through Our engineering innovation, removing interfaces for Strategy our clients & providing value added services” 9
Slide 10: 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 into EPC / SMP contracting Strengthen • Partnering / joint ventures to expand our capability to a
Slide 11: 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 12: Growth Sectors and Strong Pipeline
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 13: Positioned for Growth
Positioned for Order Book Order Book Live Tenders Growth Pipeline $216M Recent $46M $46M $110M $133M $149M $38M contract wins ENGINEERING & CONSTRUCTION $24.5M $23M ASSET SERVICES CIVILBUILD Preferred Status $22M DEC 15 JUNE 16 DEC 16 JUNE 17 $298M $209M $170M $167M $60M DEC 15 JUNE 16 DEC 16 JUNE 1
Slide 14: Financial Snapshot
Financial Positioned for stronger earnings 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 of
Slide 15: 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 16: Offer - Key Details
Placement o $2.750 million institutional placement. Offer - Key o 12% discount to the closing price of Company’s shares on 1 September 2017 - $0.57; Details o 15% discount to the 5 trading-day VWAP as at 1 September 2017 - $0.588; and o 11% discount to the theoretical ex-rights price (TERP)1 - $0.56
Slide 17: Sources and uses of funding
Sources and The Company intends to use the proceeds of the Offer for the following purposes: uses of funding Replenish the cash used for the acquisition of, and provision for working Approx. capital in, the recently acquired Civilbuild Business $6 million Approx. Provide working capital for business
Slide 18: Offer timetable
INDICATIVE TIMETABLE Offertime table EVENT DATE Announcement of Offer Wednesday, 6 September 2017 Lodgment of Appendix 3B, Offer Document and Cleansing Notice with ASX Friday, 8 September 2017 Dispatch of notices to Shareholders informing them of the Offer Monday, 11 September 2017 Shares quoted on
Slide 19: Appendix: Additional background information on Saunders
Appendix: Additional background information on Saunders 19
Slide 20: Operations & Results
Operations INNOVATION | EXCELLENCE | GROWTH & Results 20
Slide 21: 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) • Mobil – Port Moresby 47% • Civil wor
Slide 22: 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 23: 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 24: Appendix: Key risks
Appendix: Key 5.1 Introduction The investment in New Shares offered under this Offer Document should be considered speculative because of the nature of risks the Company's business. There are numerous risk factors associated with the Company's business and the industries and sectors in which it oper
Slide 25: Appendix: Key risks
Appendix: Key 5.2 Key business risks The risks set out below highlight some of the key risks that could affect the Company's business. It is not exhaustive of all risks involved in an investment in Saunders. risks (a) Competition risk The engineering and construction market is competitive. The actio
Slide 26: Appendix: Key risks
Appendix: Key There is a risk that a customer or supplier may seek to terminate or modify the contract or terms and this may have an adverse effect on the Company's business and financial performance. A customer or supplier may default in its obligations or become insolvent or it may be necessary fo
Slide 27: Appendix: Key risks
• Appendix: Key the continued availability of financial products and credit facilities to Saunders. These products and facilities include the provision of performance guarantee financing and associated bank facilities including guarantees, leases and letters of credit that may or may not be secured
Slide 28: Appendix: Key risks
Appendix: Key (I) Regulatory and Sovereign Risk The Company operates within a framework of applicable laws, regulations and standards. Any failure to comply with aspects of risks these may adversely affect the Company’s ability to fulfil its contractual obligations and the Company’s financial perfor
Slide 29: Appendix: Key risks
Appendix: Key 5.3 General Investment Risks The risks set out below together with other general risks not specifically referred to are applicable to all investments in listed securities and may affect the future value of the Shares. risks (a) Foreign exchange rates and interest rates Adverse movement
Slide 30: Appendix: Key risks
Appendix: Key (d) Equity market conditions Securities listed on the stock market can experience extreme price and volume fluctuations that are often unrelated to the operating performances of listed companies. The market price of Shares may fall as well as rise and may be subject to varied risks and
Slide 31: Disclaimer / Contact
DISCLAIMER MARK BENSON Managing Director & Chief Executive Officer (02) 9792 2444 mark.benson@saundersint.com 271 Edgar Street, Condell Park NSW 2200 31
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