Saunders International Limited · ASX:SND
Saunders International — Investor Presentation (August 2020)
26 slides from Saunders International's investor presentation, Aug 26, 2020
Slide 1: Investor Presentation 2020
Investor Presentation 2020 Mark Benson Managing Director & Chief Executive Officer Rudy Sheriff Chief Financial Officer August 2020 1
Slide 2: Company Overview
Company ENERGY Overview Industrial Tank Construction & Maintenance Maintenance SECTORS DEFENCE & Shutdowns Engineering Structural SERVICES & Design Mechanic & Piping INFRASTRUCTURE WATER (SMP) Civil Works EPC Construction Precast Fabrication Mechanical MINING & OIL & GAS Bridge construction Electric
Slide 3: Company Overview
Business Services Company Civil Construction and Fabrication Construction Maintenance Overview Services Provided • Precast concrete Services Provided • Design and construction of bulk liquid Services Provided • Planned and recurring tank • Bridge construction works fuel and chemical storage tanks ma
Slide 4: COVID-19
COVID-19 Split crews to minimize person to person contact & cold shift changeovers Distribution of extra • Proactive measures hygiene & critical Adapt work from home buddy shift implemented to ensure consumables system for offices (sanitizer, gloves & business continuity masks) • All sites and offic
Slide 5: Strategic Focus
Strategic Focus With the Transform strategy successfully completed, the focus is on executing the Growth strategy and generating increased shareholder value. TRANSFORM GROW ACQUIRE • Business Improvement • Focused growth into • Proactively assess Project completed adjacent sectors opportunities to e
Slide 6: Transformation Complete
Transformation AREA OF FOCUS STATUS Complete • Reinforcement of project controls and commercial focus on all tenders • Controlled and focussed pre-contract assessment process completed for all tenders • Enhancement of weekly/monthly reporting of key project performance criteria We have achieved our
Slide 7: Growing Order Book
Growing Major contracts awarded in FY20-H2 include: Client NAVFAC Client Rio Tinto Yarwun Order book Value Division circa $7m Mechanical Infrastructure – Defence Value Portion 1 circa $11m Portion 2 circa $19m Division Asset Services Description Construction of two cut and cover fuel storage tanks f
Slide 8: Positioned for Growth
Record Order Book $110m Diversified Order Book Positioned for Growth $61m $46m $42m $110m Record order book and new $42m June 20 30 Jun 18 pipeline opportunities $25m underpin the future growth of Saunders. CIVIL SERVICES CONSTRUCTION SERVICES MAINTENANCES We will continue to leverage Jun-16 Jun-17
Slide 9: Growth Opportunities
There are three principal drivers behind the growth outlook: Growth 1. Strong spend in infrastructure, industrial, oil and gas, minerals and defence sectors Opportunities • Current infrastructure boom forecast to continue through Federal and State governments. • COVID-19 is likely to involve further
Slide 10: FY20 Business Overview
FY20 Business Overview Revenue EBITDA Net Earnings $66.5M $3.3M $1.3M FY19 $50.1M FY19 ($1.2M) FY19 ($1.6M) Cash flows from EPS EBIT Margin Cash in bank operating activities $4.9M 1.23c 2.8% $11.1M FY19 (1.72c) FY19 (4.5%) FY19 $8.0M FY19 ($3.3M) 10
Slide 11: FY20 YTD Highlights
FY20 YTD Safety performance • LTI free hours - 2.7m – Zero LTIs since May 2013. • Highlights Positive financials Return to positive EBIT through delivery of increased margins and focussed overhead cost management leading to increased operating cash generation. • Revised operating model and organisat
Slide 12: Financial Highlights
Financial The transformation of Saunders’ operating model and organisational restructure will ensure that the Company can effectively and efficiently continue to meet the demands of future increased revenue with no material impact to overheads. Highlights FY20 FY19 $’000 $’000 $’000 Change Earnings
Slide 13: Balance Sheet
Balance Sheet FY20 FY19 Balance Summary $’000 $’000 % Change Current assets $31,505 $19,641 60.4% Sheet Non-current assets $14,509 $13,177 10.1% Total assets $46,014 $32,818 40.2% Improvement in free cash flow driven by continued financial Current liabilities $21,582 $11,008 96.1% discipline through
Slide 14: Strategic Objectives
• Proactively work with key customers and Federal/State government to offer Strategic 1. Construction innovative solutions for Australia Fuel Storage Program • Leverage on Saunders strong balance sheet to target larger and more complex Objectives Services projects • Expand services offering into – E
Slide 15: Guidance & Outlook
FY21 Outlook • FY21 budget is based upon a revenue target of $100m with EBIT margin of 3.75% to 4.75% Guidance • Board’s objective is to resume fully franked dividend payments in FY21 & Outlook FY21 and • Strong infrastructure spend to continue as both Federal and State Governments stimulate forward
Slide 16: Appendix
Appendix 16
Slide 17: Board & Management
Board & Management Balanced team comprising of Board of Directors with diverse experience and a management team with a Mr. Timothy Burnett Mr. Mark Benson Mr. Greg Fletcher Mr. Rudy Sheriff proven track record in Chairman & Non- Managing Director & Non-Executive Director Chief Financial Officer deli
Slide 18: Our Projects
Our Projects 18
Slide 19: Construction Services
Construction Services Client Sydney Water Client Dialog/VOPAK Value circa $15 million Value circa $20 million Description • Scope of works includes detailed design, Description • Early Contractor Involvement (ECI) for civil foundation, construction of a new NSW Terminal Expansion project. welded ste
Slide 20: Construction Services Defence
Construction Services Defence Client NAVFAC Client Lendlease Building Pty Limited Value circa $7 million Value circa $5 million Description • Scope of works is the construction of two Description • Scope of works includes design supply cut and cover fuel storage tanks for the and installation of two
Slide 21: Civil Fabrication
Civil Fabrication Client JHCPBG JV Client John Holland Rail Value circa $11.3million Value circa $2.5 million Description • Scope of works is to supply precast Description • Scope of works is to construct a single components to the Sydney Metro span 27m long bridge over the North project. Coast rail
Slide 22: Civil Construction
Civil Construction Client Mid Coast Council John Holland Rail Client Martins Creek Value circa $4.3 million Value circa $2.5 million Description • Early stages of construction for 3 x bridges awarded by Mid Coast Council. Description • This contract is to replace and existing • Consists of the remov
Slide 23: Maintenance Services
Maintenance Services Client Rio Tinto Yarwun Client BP Bulwer Island circa $30 million $8.1 million Stage 1 complete Value (Portion 1 $11m, Portion 2 $19m) Value $12.5 million Stage 2 commenced Description • Saunders has been awarded the Stage Description • Scope consists of civil and mechanical 1 P
Slide 24: Maintenance Services
Maintenance Services Australian Paper Mill Client Client BP Bulwer Island (Nippon Paper Group) Value circa $2 million Value circa $2.8 million. Description • Scope of works for major plant Description • The scope of work entails the shutdown outage included installation and testing of SMP piping eng
Slide 25: 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 26: Mark Benson
MARK BENSON Managing Director & Chief Executive Officer (02) 9792 2444 L2, 1F Homebush Bay Drive, Rhodes NSW 2138 www.saundersint.com 26 mark.benson@saundersint.com
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