Seymour Whyte — H1 FY2013 Earnings Presentation
27 slides from Seymour Whyte's earnings presentation, Feb 27, 2013
Slide 1: First Half Results Presentation
FIRST HALF RESULTS PRESENTATION for the six months to 31 December, 2012 Seymour Whyte Limited David McAdam – Managing Director Company Update & Chief Executive Officer Craig Galvin – Chief Financial Officer 27 February 2013 1 www.seymourwhyte.com.au
Slide 2: Disclaimer and Technical Note
Disclaimer and Technical Note DISCLAIMER This presentation contains forward looking statements, which are by their nature subject to significant uncertainties and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Seymour Whyte
Slide 3: Financial Results
Section 1 FINANCIAL RESULTS 3 www.seymourwhyte.com.au
Slide 4: First Half Review
First Half Review o On-track to meet full year NPAT guidance 14 o Total Revenue of $138.7m* o NPAT of $3.45m. 12 o Represents 39% of full year guidance FY13 NPAT expected o Settlements reached with various parties in to be broadly in line 10 with FY12 ($8.8m). relation to FY12 legacy issues 5.9 7.2
Slide 5: Financial Summary
Financial Summary $m 1H12 1H13 Change Total revenue (incl. non-IFRS adj. for Jointly Controlled Ops)* 177.15 138.68 21.7% EBITDA 12.30 4.99 59.4% NPAT 8.23 3.44 58.1% Half Year Dividend 4.0 1.75 56.3% 30 June 2012 31 Dec 2012 Change Cash and cash equivalents 31.1 36.4 17% Net Tangible Asse
Slide 6: Financial Position
Financial Position o Balance sheet remains strong, providing flexibility and strength to underpin future growth o Strong cash flows supported continued investment in new assets o Working capital of $34.6m, representing 83.2% of the group’s net assets o Net asset position increased by $1.9m, resultin
Slide 7: Revenue Analysis
Revenue Analysis FY13 Revenue expected to 23% 350.00 be broadly in line with FY12 Joint Venture Seymour Whyte 300.00 77% 250.00 130.3 15% 200.00 $ millions Government 128.0 Private 150.00 89.3 85% 100.00 177.2 138.7 17% 50.00 100.5 97.7 Queensland New South Wales 0.00 FY10 FY11 FY12 FY13 83% First H
Slide 8: Order Book
Section 2 ORDER BOOK 8 www.seymourwhyte.com.au
Slide 9: FY13 Projects Won $220 million
FY13 Projects Won • Bruce Highway (Back Creek) - $28 million o Construction of 3.7km of Bruce Highway $220 million* o o Client is Queensland Department of Transport and Main Roads To be completed in FY14 Total value of new projects • Warrego Highway (Jondaryan – Dalby) - $64 million secured in first
Slide 10: Current Projects
Current Projects March June September December March June 2013 2013 2013 2013 2014 2014 Warrego Highway $64 million (Jondaryan) Bruce Highway Upgrade $28 million (Back Creek) Logan Motorway $49 million (Rehabilitation works) Warrego Highway $38 million (Toowoomba Range) Townsville Port Inner $61 mil
Slide 11: Order Book
Order Book 400 350 42 300 FY13 250 121 159 Contracted revenue $275 million $ millions 114 200 75 26 150 307 292 275 28 225 100 197 190 164 159 172 150 168 50 115 116 0 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Order Book at start of year (<12 mths) Order Book at start of year (>12 mths) Actual Revenue 11
Slide 12: Win rates
Win rates o Only bidding for projects where there is a greater than 25% chance of positive outcome. o Winning more projects through innovation in delivery and pricing. o Commenced pursuit of contracts in strategic target markets. o Current pipeline of more than $800m of potential projects identified
Slide 13: Outlook and Strategy
Section 4 OUTLOOK AND STRATEGY 13 www.seymourwhyte.com.au
Slide 14: Strategic Plan
Strategic Plan Banora Point o New Strategic Plan implemented. o Plan highlights need for short term consolidation to meet prevailing market conditions. • Focus on organic growth through expanded client base (New South Wales & Commonwealth Governments) • Build skills, systems and relationships to sup
Slide 15: Strategic Objectives
Strategic Objectives Financial Consolidate financial management Sustainable growth Market Position Low debt/strong cash model Infrastructure engineer with national footprint Strategic Objectives Capabilities Systems Enhance and develop in-house capabilities to Implement fully-integrated, fully-mobil
Slide 16: Strategic Platforms
Strategic Platforms Grow current Capability & capability into Technology additional transport Leadership sector projects; road, rail, marine & & Systems airports Apply infrastructure construction Extend geographic engineering skills to spread through utilities sector expansion into third (water, was
Slide 17: FY13 Outlook
FY13 Outlook Earnings Market o Net profit after tax (NPAT) for FY13 expected to be o Core client (QLD Government - Department of Transport broadly in line with FY12 NPAT of $8.8m and Main Roads/ NSW Government - Roads and Maritime Services) spending profiles improving. o Current FY13 Order Book of $
Slide 18: Appendices
Section 4 APPENDICES 18 www.seymourwhyte.com.au
Slide 19: Company Overview
Company Overview o Evolved from specialist road builder to diversified infrastructure engineer and construction company with capabilities in; Infrastructure engineers o Transport and constructors o Utilities o Resources o Established 1987 by John Seymour and Garry Whyte Proven Capabilities o A demon
Slide 20: Corporate Overview
Corporate Overview PROFILE DIRECTORS Head Office Building 14, 2404 Logan Road, Eight Mile Plains, Queensland Mac Drysdale Chairman Established 1987 Employees 231 (as at 31 December, 2012) David McAdam Managing Director & CEO Sector 20: Industrials GICS Don Mackay Non-executive Director Industry Grou
Slide 21: Core Capabilities
Core Capabilities o Infrastructure engineer and constructor o ‘Difficult’ projects: o Brownfield urban intensive projects o Complex engineering construction sequencing o Multi-disciplinary projects o Application of core capabilities across a range of industry sectors o Management and project deliver
Slide 22: Competitive Advantages
Competitive Advantages o Demonstrated capacity to deliver complex projects o High level of prequalification o Experienced management and personnel o Cost competitive against Tier 1 contractors o Technical capability/ high level engineering o Strong positive working relationships o Partner of choice
Slide 23: Board of Directors
Board of Directors Mac Drysdale Don Mackay John Seymour Susan Johnston John Ready David McAdam Chairman Non-executive Director Non-executive Director Non-executive Director Non-executive Director Managing Director & CEO o Over 15 years as o Over 10 years o Founding Director o Over 20 years in senior
Slide 24: Executive Leadership Team
Executive Leadership Team David McAdam Rob Leacock Craig Galvin Gary Georgiou Steve Davies-Evans Managing Director & CEO Deputy CEO, Company Chief Financial Officer General Manager - Operations Estimating Manager Secretary and General Counsel o 30 years in the industry o Strong commercial and legal
Slide 25: Occupational Health and Safety
Occupational Health and Safety o Seymour Whyte’s core belief is that we can work incident and injury free. o Driven through leadership engagement and development o Increased focus on high potential incident management – a lead indicator o First half performance: o 1H13 - Total Recordable Injury Freq
Slide 26: Environmental performance
Environmental performance o Third party certification of system to AS/NZS ISO 14001:2004 o Capacity below NGER threshold o International recognition for Environmental Management on the Banora Point Upgrade project. 26 www.seymourwhyte.com.au
Slide 27: Industry recognition
Industry recognition o 2012 QMCA Safety Award o 2012 New South Wales CCF Earth Award o 2012 Queensland CCF Training Awards – Multiple awards o 2011 QMCA Safety Award o 2011 Queensland CCF Earth Award – North Shore Boulevard o 2011 Queensland CCF Training Award o 2010 Queensland CCF Earth Award o 201