Saunders International Limited · ASX:SND
Saunders International — H1 FY2014 Earnings Presentation
18 slides from Saunders International's earnings presentation, Feb 19, 2014
Slide 1: Saunders International Ltd
Saunders International Ltd For personal use only February 2014
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT Corporate Focus: design, construction and maintenance of steel storage tanks and For personal use only the project management of ancillary facilities Price A$0.85 Share Price Performance and Volume as of 19/02/14 ASX Code SND Shares issued 79.0M Options - Market Cap A$67M Cash A$1
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 Terminals Pty Ltd Pelican Point, SA Value $20M 4 SAUNDERS INTERNATIONAL LIMITED
Slide 5: Design & Construction Recent Projects
For personal use only DESIGN & CONSTRUCTION RECENT PROJECTS: Simpson Construction Werribee West, VIC Value $8.1M 5 SAUNDERS INTERNATIONAL LIMITED
Slide 6: Facility Maintenance Recent Projects
FACILITY MAINTENANCE RECENT PROJECTS: For personal use only Jacking 30m diameter tank to enable repair of foundations 6 SAUNDERS INTERNATIONAL LIMITED
Slide 7: 2013 Capex
2013 CAPEX For personal use only 2013 upgrade of welding equipment showing immediate benefits enhanced safety better quality increased efficiency 7 SAUNDERS INTERNATIONAL LIMITED
Slide 8: First Half FY2014 Revenue
FIRST HALF FY2014 REVENUE For personal use only Total Revenue $33,100 Split of Facilities Maintenance and Design & Construct 45/55 Total number of customers 14 Repeat Customers 11 Percent of Revenue 86% New Customers 3 Percent of Revenue 14% 8 SAUNDERS INTERNATIONAL LIMITED
Slide 9: FY14 Geographical Revenue Distribution
FY14 GEOGRAPHICAL REVENUE DISTRIBUTION For personal use only VIC, 11% QLD, 14% QLD WA, 11% WA NSW, 43% SA SA, 21% NSW VIC Decrease in Revenue from Western Australia due to completion of infrastructure projects in the Pilbara Increase in Revenue from NSW due to increased Oil Terminal activity 9 S
Slide 10: FY14 Revenue – Sector Distribution
FY14 REVENUE – SECTOR DISTRIBUTION For personal use only Water Chemical 10% 4% Water Chemical Oil & Gas 86% Oil & Gas Total Revenue $33M Increased activity in Terminal Construction and Maintenance 10 SAUNDERS INTERNATIONAL LIMITED
Slide 11: FY14 New Contracts Secured
FY14 NEW CONTRACTS SECURED SECTOR DISTRIBUTION For personal use only Chemical 6% Chemical Oil & Gas Oil & Gas 94% Total New Contracts $37M Continued emphasis on Terminal Construction and Maintenance 11 SAUNDERS INTERNATIONAL LIMITED
Slide 12: Outlook Second Half FY2014
OUTLOOK SECOND HALF FY2014 For personal use only Work in hand 31 Dec 2013 30 Jun 2013 48m 39m 12 SAUNDERS INTERNATIONAL LIMITED
Slide 13: Outlook Second Half FY2014 – Design and Construct
OUTLOOK SECOND HALF FY2014 For personal use only Design and Construct - Work in Hand of $48 million Work in Hand to carry into FY15 Competitive market place still putting pressure on margins New projects still slow to be released 13 SAUNDERS INTERNATIONAL LIMITED
Slide 14: Outlook Second Half FY2014 – Facilities Maintenance
OUTLOOK SECOND HALF FY2014 For personal use only Facilities Maintenance - Revenue from Refinery Maintenance projected to be similar to FY2013 Increased backlog of non-refinery maintenance work 14 SAUNDERS INTERNATIONAL LIMITED
Slide 15: Facilities Maintenance Commercial Model
FACILITIES MAINTENANCE For personal use only COMMERCIAL MODEL Term Contract: Usually based on either a management fee and cost reimbursable components or unit rate contract Typically for 1 to 5 years with options to extend Lump Sum: One off projects or specifically defined scope of work Mainte
Slide 16: Financial Metrics
FINANCIAL METRICS For personal use only Adjusted KEY FINANCIAL STATISTICS 31 December 2013 31 December 2012 31 December 2012* Revenue $33.1 m $28.5 m $28.5 m EBITDA $4.0 m $3.6 m $4.4 m EBITDA % margin 12% 13% 15% EBIT $3.7 m $3.6 m $4.3 m NPBT $4.0 m $3.8 m $4.6 m NPAT $2.8 m $2.7 m $3.3 m EPS 3.55
Slide 17: Balance Sheet
BALANCE SHEET BALANCE SHEET ($ Million) 31 DECEMBER 2013 30 JUNE 2013 For personal use only Assets Strong cash reserves Cash 16,165 12,924 No debt Trade receivables 10,983 9,763 Plant and equipment 2,034 1,792 Deferred tax assets 1,196 1,037 Others 956 1,696 Total Assets 31,334 24,383 Liabilitie
Slide 18: 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
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