Seymour Whyte — H1 FY2012 Earnings Presentation
50 slides from Seymour Whyte's earnings presentation, March 2012
Slide 1: Seymour Whyte Limited 2011-12 Half year results presentation
Seymour Whyte Limited 2011-12 Half year results presentation Brian Riggall – Managing Director Craig Galvin - Chief Financial Officer March 2012 1
Slide 2: Presentation Outline
Presentation Outline • Overview • Review of Half Year to 31 December 2012 • Financials • Full Year Outlook FY12 • FY13 and beyond • Appendix 2
Slide 3: Overview
SEYMOUR WHYTE OVERVIEW www.seymourwhyte.com.au
Slide 4: Overview: FY12 So Far
Overview: FY12 So Far • Significant revenue increase demonstrates SWC’s delivery capacity • Significant project milestones: – $58m Gold Coast Rapid Transit – Southport Roadworks complete – $106m (50% SW) Townsville Port Inner Harbor Expansion commenced • Flatter senior management structure: – Senior
Slide 5: Project Update: Gold Coast Rapid Transit Complete
Project Update: Gold Coast Rapid Transit Complete • Completed in the 3rd quarter 2012 on time and on budget • Project value: $58m • Client: Department of Transport and Main Roads • Complex project environment, under heavy traffic and surrounded by residential properties, schools, shops, restaurants
Slide 6: Project Update: Ipswich Motorway Upgrade – approaching completion
Project Update: Ipswich Motorway Upgrade – approaching completion • Project value: $1.65b (SWC $200m) • Client: Queensland Department of Transport and Main Roads • 6 months ahead of time from zero base, well under budget and excellent KPI results • Seymour Whyte, Abigroup, Fulton Hogan, PB, SMEC, DT
Slide 7: Project Update: Townsville Port Inner Harbour Expansion
Project Update: Townsville Port Inner Harbour Expansion – established on site • Project value: $106m (SWC $53m) • Client: Port of Townsville Limited • Seymour Whyte Smithbridge Joint Venture • Design and Construction of a Cruise and Military Berth Facility to accommodate cruise-liners and military v
Slide 8: Project Update: Port of Brisbane Motorway
Project Update: Port of Brisbane Motorway – Early days but well underway • Project value: $232m (SWC $116m) • Design nearly complete. remeasurement nearly complete • Client: Queensland Department of Transport and Main Roads • Delivering a duplication of the existing two-lane motorway, as well as a t
Slide 9: Business Review: Safety
Business Review: Safety • Behavioral safety leadership program is substantially complete • Third party certification of system to AS/NZS 4801:2001 standard with Seymour Whyte described as “having a mature level of understanding of the requirements of ISO 4801:2001” from recent external audit • Re-ce
Slide 10: Business Review: Quarterly Order Book
Business Review: Quarterly Order Book 400 375 350 325 $Millions 300 275 250 225 200 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 • March-12 upswing due to Landsborough Joint Venture and Gateway Lane Expansion projects being awarded subsequent to 31 December 201
Slide 11: Business Review: Win Rates
Business Review: Win Rates 70% 60% 50% Win Rate 40% 30% 20% 10% 0% FY07 FY08 FY09 FY10 FY11 FY12 Win Rate Based on Value Win Rate Based on Number • FY12 win rates are indicative of current competitive market conditions. 11
Slide 12: Business Review: Human Resources
Business Review: Human Resources Managing capacity growth 160 160 140 140 • 10% increase in total staff from 120 120 No. of Project Employees 30 June 2011 to 208 people (excl. Monthly Revenue 100 100 ($Millions) blue collar) 80 60 80 60 40 40 • Increase in project staff to 153 20 0 20 0 people at 31
Slide 13: Business Review: Environmental Performance
Business Review: Environmental Performance • Third party certification of system to AS/NZS ISO 14001:2004 • NGER – preliminary assessments indicate currently below statutory reporting thresholds • Carbon tax – do not currently expect a significant impact • One notifiable incident, Zero prosecutions
Slide 14: Business Review: Earnings Guidance
Business Review: Earnings Guidance Based on work contracted to date: 16 8.0% • FY12 NPAT expectation of $12.8m 12 6.0% • 10.1% 5 Year CAGR NPAT % Margin NPAT $Millions 8 4.0% for NPAT $ (incl. FY12 forecast) 4 2.0% • Forecast 4.3% NPAT 0 0.0% margin for FY12 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Actual
Slide 15: Financials: Financial Interim 2012
FINANCIALS Financial Interim 2012 15
Slide 16: Financial: Highlights
Financial: Highlights 1H11 1H12 Change Revenue (Statement of Comprehensive Income)* $84.4m $161.8m 91.7% Revenue (revenue from Jointly Controlled Ops)* $13.3m $15.3m 15.0% Total revenue (incl. non-IFRS adj. for Jointly Controlled Ops)* $97.7m $177.2m 81.4% EBITDA $7.3m $11.9m 63.0% NPAT $5.1
Slide 17: Financial: Total Revenue
Financial: Total Revenue 350 300 250 • First half FY12 = $177m* 200 $Millions • Second half FY12 = $123m* 150 • Full year up 33% from FY11 100 50 0 FY08 FY09 FY10 FY11 FY12 Revenue (actual) Revenue (forecast from currently contracted work) *Please refer to the technical note appearing at the end of
Slide 18: Financial: Revenue Analysis – FY11
Financial: Revenue Analysis – FY11 18
Slide 19: Financial: Analysis of Profit
Financial: Analysis of Profit 17,000 14,500 12,000 $'000 9,500 7,000 4,500 NPAT Volume Margin % Corporate Tax NPAT 1H11 Construction Construction Expenses 1H12 • $3.2m increase in net profit after tax • Additional work volumes offset against competitive market conditions • An increase in corporate o
Slide 20: Financial: EPS and DPS
Financial: EPS and DPS 12.0 10.6c 10.0 Earnings 10.6c perEarnings Share per Share 8.0 Cents 6.0 6.5c Earnings per Share 4.0c 4.0 Interim Dividend 3.5c per Share 3.5c Interim 4.00c 2.0 Interim Dividend Interim perDividend Share Dividend per Share per Share - Dec 10 Dec 11 • Interim dividend of 4.00 c
Slide 21: Financial: HY Cash Flow Analysis
Financial: HY Cash Flow Analysis 16 14 • 33.2% increase in cash 12 balances to $38.4m at 10 31 Dec 2011 $Millions 8 • Cash flow fluctuations are 6 representative of the variable 4 nature of project cash flows 2 • The company adopts a 0 conservative approach to HY10 HY11 HY12 managing cash flows desi
Slide 22: Financial: Facilities
Financial: Facilities Facility December 2011 • Guarantees and bonds secure performance Bank Guarantees & Bonds – Project Facilities under traditional construction contracts ANZ (44% drawn) Limit: $18.0m Drawn to: $8.0m • Other facilities fund acquisition of light Vero vehicles & trucks (43% drawn) L
Slide 23: Full Year Outlook FY12
SEYMOUR WHYTE Full Year Outlook FY12 www.seymourwhyte.com.au
Slide 24: Overview: FY12 Outlook & Initiatives
Overview: FY12 Outlook & Initiatives • Manage transition of market from Alliances to traditional contracts through flatter senior management structure: – Senior manager dedicated to securing future collaborative contracts and establishing joint ventures to position SWC in broader market – Clearer ac
Slide 25: Overview: FY12 Prospective
Overview: FY12 Prospective • Contracted order book at 31 Dec 2011 = $234m • Approximately $123m of this work expected to be carried out in the second half of FY12 * (subject to commencement of new contracts) • Subsequent to 31 December SWC awarded GAL project worth $62m and Landsborough Highway upgr
Slide 26: Business Outlook: Revenue vs Order Book
Business Outlook: Revenue vs Order Book 400 350 300 250 $Millions 200 150 100 50 - FY08 FY09 FY10 FY11 FY12 *Please refer to the technical note appearing Order book at start of year Revenue (actual) at the end of this update for an explanation on the • Forecast revenue for FY12 is $300m* use of non-
Slide 27: Business Outlook: Current Order Book and Expected Project Durations
Business Outlook: Current Order Book and Expected Project Durations • Current order book comprises 69% relationship and 31% traditional contracts • 2 ECI projects excluded potentially worth approx. $150m to SW 27
Slide 28: Business Outlook: Current Tendering Activity - Snapshot
Business Outlook: Current Tendering Activity - Snapshot • $489m of current tenders at February 2012: – Primarily roadworks and associated bridges • Approximately $437m QLD and $52m NSW: – values $12-$100m, average $48m • Recent bids suggest improved market conditions and continued availability of li
Slide 29: Business Outlook: Key Challenges
Business Outlook: Key Challenges • Continue to attract, develop and retain top calibre key staff • Manage transition from Alliance to traditional contract types • Winning further profitable work for FY13 and beyond • Expand capacity to undertake projects under a range of delivery methods: – Traditio
Slide 30: Appendix
SEYMOUR WHYTE APPENDIX www.seymourwhyte.com.au
Slide 31: Seymour Whyte Overview
Seymour Whyte Overview • A dynamic infrastructure development company with over 25 year history of providing construction solutions across Queensland and New South Wales • Trusted by government authorities to deliver major infrastructure projects, with a specialised focus on road and bridge projects
Slide 32: Capabilities and Range of Services
Capabilities and Range of Services • Design and construction of major roadworks and bridgeworks • Major concrete structures for resources infrastructure • ‘Difficult’ projects where a high degree of engineering skill is required • Major traffic management schemes, complex intersections reconfigurati
Slide 33: What does Seymour Whyte do?
What does Seymour Whyte do? Politically and environmentally Large and complex projects sensitive landmarks 33
Slide 34: What does Seymour Whyte do?
What does Seymour Whyte do? Remote area rail infrastructure Complex motorway expansions 34
Slide 35: What does Seymour Whyte do?
What does Seymour Whyte do? Remote mining infrastructure Award winning community infrastructure 35
Slide 36: What does Seymour Whyte do?
What does Seymour Whyte do? Working with, and supporting local communities 36
Slide 37: Competitive Advantage
Competitive Advantage • Seymour Whyte’s competitive advantages include: – Demonstrated capacity to deliver complex projects with outstanding outcomes – High level approval and prequalification status with government authorities – Understanding of clients’ requirements – Highly qualified and experien
Slide 38: Basis of Competition
Basis of Competition • Seymour Whyte competes on both price and non-price bases (Price = Tenders for lowest conforming capital cost, Non-Price Criteria = Relationship Contracts) - Consistently strong win rate on tenders - Ability to compete on a non-price basis Reputation and people Quality of s
Slide 39: Principal Customers
Principal Customers • Customers: – Department of Transport and Main Roads (DTMR), QLD – Roads and Traffic Authority (RTA), NSW – Townsville City Council and Gold Coast City Council – Port of Townsville Limited • Seymour Whyte’s current prequalification status: RMS & DTMR F150 BSA, QLD $594m turnover
Slide 40: Board
Board • Mac Drysdale - Chairman of the board – 15 years experience as Chairman of Public Company boards – 20 years as a non-executive director – Experience in organisational change and establishing/ restructuring companies • Don Mackay - Director – Over 35 years developing and growing Australia's le
Slide 41: Board
Board • Susan Johnston - Director – Over 20 years in senior management, and 10 years as a company director – Extensive experience in policy advisory roles in the energy and resources sector • Brian Riggall - Managing Director – Overseen rapid growth and increased involvement in JV arrangements and c
Slide 42: Executive Leadership Team
Executive Leadership Team Brian Riggall Managing Director and CEO Gary Georgiou General manager - Operations Rob Leacock Deputy Chief Executive Officer General Counsel & Company Secretary Steve Davies-Evans Estimating Manager Craig Galvin Chief Financial Officer 42
Slide 43: Senior Management
Senior Management Gerd Wimberger Mathew Quy-Verlander Project Director Construction Manager Major Projects Alistair Pagan Todd Stubbings Construction Manager Human Resources Manager Chris MacDonald Steve Glover Sydney Regional Manager North Queensland Manager 43
Slide 44: Shareholder Information
Shareholder Information Directors and senior management have significantly invested in the future of the company: • Substantial Shareholders: • Racelid Pty Ltd (Garry Whyte): 27.06% • Rabtuvi Pty Ltd (John Seymour): 24.49% • Moreton Bay Dreaming Pty Ltd (Brian Riggall): 5.78% • Executive and Managem
Slide 45: Key Risks
Key Risks • Market Risks - Majority of • Competition revenue derived from a concentrated number of clients • Risk of non payment by clients and contracts • Cyclical nature of the industry • Diversification risks • Reduction in proportion of • Litigation and disputes alliance type projects • Contract
Slide 46: Recently Completed Projects
Recently Completed Projects Isis River Bridge Replacement, Bruce Highway Southport Roadworks, Gold Coast North Shore Boulevard, Townsville Rapid Transit Early Works 46
Slide 47: Current Projects
Current Projects Douglas Arterial Duplication, Townsville Port of Brisbane Motorway Duplication Princes Highway Upgrade, Victoria Creek Banora Point Upgrade, Tweed Heads 47
Slide 48: Industry Recognition
Industry Recognition • 2011 Queensland CCF Earth Award • 2011 Queensland CCF Training Award • 2010 Queensland CCF Earth Award • 2010 BRW Best Places to Work – Ranked #17 • 2010 Queensland CCF Training Awards • 2009 National CCF Earth Awards • 2009 Career One Queensland Excellence Awards • 2009 The H
Slide 49: Disclaimer and Important Notice
Disclaimer and Important Notice 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 and its
Slide 50: Disclaimer and Important Notice: Technical Note
Disclaimer and Important Notice TECHNICAL NOTE This presentation provides a snapshot of Seymour Whyte’s operational and financial highlights for the six months to December 2011. The financial information contained in this presentation has mainly been extracted from Appendix 4D: Interim Financial Rep