Saunders International Limited · ASX:SND
Saunders International — Investor Presentation (August 2010)
18 slides from Saunders International's investor presentation, Aug 24, 2010
Slide 1: Saunders International Limited
For personal use only Saunders International Limited August 2010
Slide 2: Important Notice
IMPORTANT NOTICE 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. For personal use only This presentation is not and should not be considered as an offer or invitation to s
Slide 3: Business Description
BUSINESS DESCRIPTION The business was founded in 1951 and specialises in the design, construction and maintenance of steel bulk liquid storage tanks. For personal use only Saunders’ products and services are provided via two inter related models: − Design & Construction; and − Facilities Maintenance
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS PROVEN CREDENTIALS For personal use only − Reputation for quality and performance − Over 50 years of industry experience − Principal provider of storage tank maintenance services to 6 of Australia’s 7 major operating petroleum refineries − National capability − A complete desig
Slide 5: Industry Overview
INDUSTRY OVERVIEW DESIGN & CONSTRUCTION For personal use only − Saunders is one of a limited number of engineering firms in Australia with a national capability in the design and construction of steel bulk liquid storage tanks and storage tank facilities. − Saunders is the largest Australian owned p
Slide 6: Industry Drivers
INDUSTRY DRIVERS Demand for storage tank design, construction and maintenance services is expected to be driven by: For personal use only DESIGN & CONSTRUCTION − Development of new and existing oil and gas reserves − Investment in petroleum storage and distribution infrastructure due to the continui
Slide 7: Design & Construction: New Water Storage for Sydney Water
DESIGN & CONSTRUCTION RECENT PROJECTS: For personal use only New Water Storage for Sydney Water Rouse Hill, NSW Value $9M 40ML Storage Tank, 65m diameter SAUNDERS INTERNATIONAL LIMITED 7
Slide 8: Design & Construction: Terminal Storage for Vopak
DESIGN & CONSTRUCTION RECENT PROJECTS: For personal use only Terminal Storage for Vopak Botany, NSW Value $30M Phase I & Phase II – 9 x 26 meter high Storage Tanks SAUNDERS INTERNATIONAL LIMITED 8
Slide 9: Design & Construction: Other Projects
DESIGN & CONSTRUCTION RECENT PROJECTS: For personal use only Other Projects: Ammonia Tank, Moranbah, QLD Acid Tank, Gladstone, QLD Mine Process Tanks, Moolarben, NSW SAUNDERS INTERNATIONAL LIMITED 9
Slide 10: Facilities Maintenance Commercial Model
FACILITIES MAINTENANCE COMMERCIAL MODEL Term Contract: For personal use only − 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 Owne
Slide 11: Competitive Advantage
COMPETITIVE ADVANTAGE Saunders’ competitive advantages are based on: For personal use only Providing value to clients through specialist knowledge and experience in storage tank design, construction and maintenance, which gives it the ability to: − deliver innovative and quality products and servi
Slide 12: Financial Metrics
FINANCIAL METRICS KEY FINANCIAL FY2007* FY2008 FY2009 FY2010 STATISTICS For personal use only Revenue $34.7 m $61.6 m $55.7 m $44.5 m EBITDA $6.3 m $8.6 m $5.3 m $6.0 m EBITDA % margin 18% 14% 10% 13.5% EBIT $5.7 m $7.8 m $4.4 m $5.2 m NPBT $6.1 m $8.4 m $4.8 m $5.7 m NPAT $4.3 m $6.2 m $3.4 m $4.0
Slide 13: Balance Sheet
BALANCE SHEET BALANCE SHEET ($ Million) 30 JUNE 2010 Strong cash reserves For personal use only Assets No debt Cash 20,060 NTA per Share of approx. 22.27 cents Trade receivables 4,196 Plant and equipment 1,760 Deferred tax assets 915 Others 758 Total Assets 27,689 Liabilities Payables 6,250 Ta
Slide 14: Business Strategy
FINANCIAL PERFORMANCE BUSINESS STRATEGY For personal use only Design & Construction: − Concentrate on work with higher margins by undertaking larger and more complex projects Facilities Maintenance: − Broaden and grow the business unit’s revenue base Strategic Acquisitions: − Intensify search
Slide 15: Financial Performance and Outlook
FINANCIAL PERFORMANCE AND OUTLOOK PERFORMANCE For personal use only • Revenue down • PAT up due to enhanced project performance • Maintenance services steady • Maintain organization and skills base OUTLOOK • Confidence returning but still some hesitancy • Up to $30m of Tank Projects to be awarded in
Slide 16: Attractive Growth Outlook & Opportunities
ATTRACTIVE GROWTH OUTLOOK & OPPORTUNITIES Saunders believes it has strong growth opportunities driven by the following factors: For personal use only Encouraging signs of a return of strong demand for tank design, construction and maintenance services; Possible geographical expansion of its desi
Slide 17: Summary
SUMMARY Proven credentials For personal use only Blue chip client base National capability Strong growth prospects Experienced board Attractive financial fundamentals SAUNDERS INTERNATIONAL LIMITED 17
Slide 18: Board
BOARD Mr Timothy Burnett - Chairman & Non-Executive Director For personal use only • More than 30 years experience in the engineering and construction industry. • Managing Director of Saunders for 15 years. • Before joining Saunders he was a senior manager with Brown & Root Inc where he managed the
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