Slide 1: Saunders International Ltd
Saunders International Ltd For personal use only August 2012
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT Corporate Focus: design, construction and maintenance of steel storage tanks and the For personal use only project management of ancillary facilities Price A$0.635 Share Price Performance and Volume as of 21/08/12 ASX Code SND Shares issued 79.0M Options - Market Cap A$50.1M Cash
Slide 3: Business Description
BUSINESS DESCRIPTION The business was founded in 1951 and specialises in the design, construction and For personal use only maintenance of steel bulk liquid storage tanks. Saunders’ products and services are provided via two inter related models: − Design & Construction; and − Facilities Maintenance
Slide 4: Design & Construction: Recent Projects
DESIGN & CONSTRUCTION RECENT PROJECTS: For personal use only New Tankage for FMG at Solomon Mine Tom Price, WA Value $3M 2 x 20m diameter Diesel Tanks 4 SAUNDERS INTERNATIONAL LIMITED
Slide 5: Design & Construction: Recent Projects
DESIGN & CONSTRUCTION RECENT PROJECTS: For personal use only Terminal Expansion Botany, NSW Value $7M 5 SAUNDERS INTERNATIONAL LIMITED
Slide 6: Facilities Maintenance
FACILITIES MAINTENANCE For personal use only Australia Wide 6 SAUNDERS INTERNATIONAL LIMITED
Slide 7: FY2011 Revenue
FY2011 REVENUE For personal use only Total Revenue $45,386 Split of Facilities Maintenance and Design & Construct 55/45 Total number of customers 14 Repeat Customers 10 Percent of Revenue 91% New Customers 4 Percent of Revenue 9% 7 SAUNDERS INTERNATIONAL LIMITED
Slide 8: FY12 Geographical Revenue Distribution
FY12 GEOGRAPHICAL REVENUE DISTRIBUTION For personal use only 6% 16% 4% QLD NT 39% WA 28% SA NSW 7% VIC FY2012 – Majority of Revenue from Eastern states FY2013 – Likely to be larger percentage from Western state 8 SAUNDERS INTERNATIONAL LIMITED
Slide 9: Outlook FY2012
OUTLOOK FY2012 For personal use only Backlog 30 June - 2011 2012 31m 40m 9 SAUNDERS INTERNATIONAL LIMITED
Slide 10: Outlook FY2012: Design and Construct
OUTLOOK FY2012 For personal use only Design and Construct - Current live tenders valued at $70.1 million Tenders already won in FY2013 valued at $7.5 million Tenders lost in FY2013 valued at $4.5 million Strong pipeline New projects beginning to be released but still some hesitation 10 SAU
Slide 11: Outlook FY2012: Facilities Maintenance
OUTLOOK FY2012 For personal use only Facilities Maintenance - Shell Clyde Refinery closure and possible shutdown at Caltex Kurnell to impact refinery Maintenance Revenue by approximately 10% Conversion project at Shell Clyde to start FY13. Conversion project at Caltex Kurnell to start FY14 Non
Slide 12: Facilities Maintenance Commercial Model
FACILITIES MAINTENANCE For personal use only COMMERCIAL MODEL Term Contract: − Usually based on a management fee and cost reimbursable components. − Typically for 1 to 5 years with options to extend Lump Sum: − One off projects or specifically defined scope of work Maintenance Contract services Own
Slide 13: Financial Metrics
FINANCIAL METRICS For personal use only KEY FINANCIAL STATISTICS FY2009 FY2010 FY2011 FY2012 Revenue $55.7 m $44.5 m $52.8 m $46.0 m EBITDA $5.3 m $6.0 m $2.6 m $6.2 m EBITDA % margin 10% 13.5% 5% 13.5% EBIT $4.4 m $5.2 m $2.0 m $5.7 m NPBT $4.8 m $5.7 m $2.7 m $6.3 m NPAT $3.4 m $4.0 m $1.9 m $4.5m
Slide 14: Balance Sheet
BALANCE SHEET BALANCE SHEET ($ Million) 30 JUNE 2012 For personal use only Assets Strong cash reserves Cash 17,061 No debt Trade receivables 8,029 NTA per Share of approx. 22.37 cents Plant and equipment 939 Deferred tax assets 882 Others 604 Total Assets 27,515 Liabilities Payables 5,445 Tax
Slide 15: Business Strategy
FINANCIAL PERFORMANCE For personal use only BUSINESS STRATEGY Design & Construction: − Concentrate on work with higher margins by undertaking larger and more complex projects − Increase emphasis of Project Management of Tankage related projects − Position the business to capitalise on any Fuel Ter
Slide 16: Financial Performance and Outlook Summary
FINANCIAL PERFORMANCE AND OUTLOOK SUMMARY For personal use only PERFORMANCE SUMMARY • Revenue down • PAT up 5 YEAR PERSPECTIVE NET PROFIT AFTER TAX • Maintenance services steady • Maintain organization and skills base $6.2 OUTLOOK SUMMARY $4.5 $4.0 • Confidence returning but still some hesitancy $3.
Slide 17: Important Notice
IMPORTANT NOTICE For personal use only 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 s