Saunders International Limited · ASX:SND
Saunders International — Shareholder Meeting (2016)
21 slides from Saunders International's shareholder meeting presentation, 2016
Slide 1: Annual General Meeting Presentation 2016
© SAUNDERS INTERNATIONAL ANNUAL GENERAL MEETING PRESENTATION 2016 Or saunow ENGINEERING FACILITY ASSET CONSTRUCTION Danes SERVICES
Slide 2: Board of Directors & Key Management
| BOARD OF DIRECTORS & KEY MANAGEMENT ooo GREG FLETCHER Non-Executive Director MARK BENSON Managing Director / Chiol Executive Othicor © © G PO ct McLOUGHLIN PAUL sueren bate BURNETT cnadiuceees PO eer DAVID GRIFFITHS Ce © MALCOM McCOMAS Non-Executive Director © SHARON VELTMAN Chief Financial Accoun
Slide 3: Chairman's address to shareholders
I would like to take this opportunity to thank you as fellow shareholders for your continued support of Saunders during this past year. The 12 months since the 2015 AGM have been an important period for the Company. Mark Benson, who took over as Managing Director and CEO on 5 October 2015, has been
Slide 4: Managing Director's address and welcome
I would like to join Tim and extend a warm welcome to the Saunders International shareholders. I am pleased to join you again for my second AGM as Managing Director and CEO. The last 12 months since I joined Saunders has been an intense but productive period for the company. Together with the restru
Slide 5: Highlights for FY2016
Some of the highlights for FY2016 were: During the year, we rolled out a new safety culture program which has been positively accepted by the workforce and is showing great results. Our total recordable frequency rate has reduced 30% during the year and this was on top of a 50% reduction last year.
Slide 6: Focus on people and structure; vision and values
Over the last 6 months we have concentrated on our people and structure and made a commitment to the following: 1. The company will ensure everyone is crystal clear on what is expected of them 2. Everyone will receive regular feedback on their performance 3. We will share the vision of the organisat
Slide 7: FY16 revenue and NPAT
In FY16 we did approximately $42 million revenue with a NPAT of $2.9 million. We experienced a decrease in gross margin of about 5% due to the current competitive environment. 7
Slide 8: Net profit margin and work in hand
This resulted in a net profit of 6.9% on revenue, and we finished the year with a work in hand of $24.5 million. 8
Slide 9: Earnings per share and dividend
We achieved a basic earnings per share of 3.68 cents and paid a full year dividend of 4 cents. Given the current business conditions, increasing levels of tendering and anticipated opportunities to grow the order book over the next few years, the board resolved to activate our dividend reinvestment
Slide 10: Review of our operations
= : | T é. | SS il ff L n Ai | = | CO SAUNDERS INTERNATIONAL Review of our operations. 10
Slide 11: Facilities Maintenance and Asset Services contribution
Our strategy to focus on building our Facilities Maintenance and Asset Services business has resulted in a solid year with it contributing 68% of the revenue in FY16. This included some larger one off terminal conversion projects, but we are still seeing a continuance of further terminal conversion
Slide 12: Engineering and Construction group contribution
Our Engineering and Construction group contributed 32% of the revenue and has continued to experience delays in the award of projects. We have been talking about delayed projects for some time now while frustrating for the business, it is important to note that these projects are still alive and un‐
Slide 13: Revenue spread across Australia
We continue to see revenues spread across Australia with key states of Victoria and NSW being growth areas over the next few years. 13
Slide 14: Key Projects
KEY PROJECTS Key Projects. 14
Slide 15: Engineering Construction projects completed
The Engineering Construction group finished off the project for Port Bonython Fuels which was under budget and ahead of schedule. As previously mentioned it has been our strategy to expand our existing services, to that end we have successfully completed several SMP projects, with the Jet Fuel conve
Slide 16: Facility Maintenance projects and client relationships
The Facility Maintenance group completed the Viva Clyde refurbishment of 3 tanks and numerous piping projects, the firefighting, cooling and fast flush lines at BP Bulwer Island being one. Our long‐term relationship with BP and Caltex led to the renewal of two‐year panel contracts for terminal maint
Slide 17: Asset Services group projects
The Asset Services group is achieving traction and have completed some gas plant maintenance and shutdown work and are currently working on heritage building projects and wharf blasting and painting contracts. The premier of Western Australia, Colin Barnett, officially opened one of our first renova
Slide 18: Our strategy is to strengthen and grow
Our strategy is to strengthen and grow. To date the sector has been characterised as challenging, with delayed projects, increased competition and reduced margins. Whilst we continue to focus on our core business we are expanding our maintenance offering through Assets Services and entering into par
Slide 19: Current key indicators and outlook
Our current key indicators: Backlog currently of $36 million up from $24.4 million at 30 June 2016. Live tenders $158 million up from $133 million. Project pipeline $179 million up from $167 million. These key indicators are very encouraging, demonstrating increasing momentum and should convert to i
Slide 20: Disclaimer
20 DISCLAIMER IMPORTANT NOTICE This presentation has been prepared by Saunders international Limited (“Saunders”) as a summary of the Company andits operations and for general information purposes only This presentation is not and should not be considered as an offer or invitation to subscribe for o
Slide 21: Mark Benson contact details
21 MARK BENSON Managing Director & Chief Executive Officer P (02) 9792 2444 E mark.benson@saundersint.com A 271 Edgar Street, Condell Park NSW 2200 saundersint.com | @ QC SAUNDERS INTERNATIONAL 21