Slide 1: Investor Presentation: 2016 Full Year Results
INVESTOR PRESENTATION 2016 FULL YEAR RESULTS GLOBAL CONSTRUCTION SERVICES LIMITED 26 AUGUST 2016
Slide 2: Introduction
Introduction Corporate Share Price ($) ASX Code GCS 0.53 Ordinary Shares 200,284,332 0.51 0.49 Market Capitalisation* $ 94.1m 0.47 Enterprise Value $ 107.9m 0.45 * as at 24 August 2016 (47¢) 0.43 0.41 Board & Management 0.39 Peter Wade Non-Executive Chairman 0.37 0.35 Enzo Gullotti Group Managing Di
Slide 3: About GCS
About GCS GCS is a leading supplier of integrated on-site products and services to all industries. Our national reach, local branch network and strong industrial presence enable us to provide for any stage of a project’s lifecycle. We work in partnership with our clients to understand their needs an
Slide 4: Products & Services
Products & Services GCS is uniquely positioned in the Australian market GCS is a leading supplier of place to provide a comprehensive range of products integrated on-site products and and services throughout the lifecycle of a project. services throughout Australia. ON-SITE WORKFORCE FORMWORK & CONC
Slide 5: Health, Safety, Environment & Quality
Health, Safety, Environment & Quality Our professional reputation is built on delivering integrated products and services across multiple markets and sectors at industry-leading standards. Central to growing and exceeding this ethic, is our Integrated Management System. Developed to communicate our
Slide 6: Division Locations
Division Locations Port Hedland Karratha Newman Brisbane Geraldton Perth Kwinana Bunbury Sydney Melbourne With strategic bases across Australia, GCS is uniquely positioned to service a wide range of industry sectors through its local branch network. 5
Slide 7: Group Highlights
Group Highlights • Financial - Delivered strong underlying financial performance in FY16 - Revenue $184.5m, up 22.6% on FY15 - Underlying NPAT of $12.0m, up 37.5% on FY15 - Net loss of $76.9m includes one off non cash impairment charges of $88.9m - Strong cash flow from operations (before tax) of $3
Slide 8: Group Highlights (continued)
Group Highlights continued • Capital Management - Strong balance sheet with net debt/equity of 10% - Maintained disciplined execution of capital management strategy - Approved refinancing of debt facilities to enhance the Group’s capital structure and reduce cost of debt by circa 30%. Settlement to
Slide 9: Financial Results
Financial Results Full Year Financial Results 2016 Revenue ($m) EBITDA ($m) EBIT ($m) Underlying NPAT ($m) 184.5 23% 8% 18% 38% 160.1 150.5 Up 29.1 30.3 Up 19.8 Up 12.0 Up 27.9 17.1 16.2 9.5 8.7 FY16 FY16 FY16 FY16 $ 184.5m $ 30.3m $ 19.8m $ 12.0m FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY
Slide 10: Financial Position
Financial Position Jun-16 Jun-15 Change • Maintained disciplined approach to capital $m $m % Cash 20.7 20.7 - management Receivables & Inventories 32.3 36.2 -11 Prepayments 3.3 4.4 -24 • Strong balance sheet with low net debt Current Tax Assets - - - Current Assets 56.3 61.3 -8 Other Receivables 7.1
Slide 11: Cash Flow
Cash Flow Jun-16 Jun-15 Change • Cash flow from operations $m $m % Receipts from Customers - Strong cash from operating activities 186.2 152.8 22 Payments to Suppliers (154.8) (123.0) 26 of $31.5m, up 5.7% on pcp Income Taxes Paid (3.2) 0.4 -900 Net inflows from • Capital expenditure management (Cas
Slide 12: Customer Sectors
Customer Sectors Our strong market presence and customised solutions makes us a leading supplier to the Commercial, Residential, Resource, Industrial, Oil & Gas sectors. RESOURCE, INDUSTRIAL, COMMERCIAL OIL & GAS RESIDENTIAL KEY CLIENTS 11
Slide 13: Commercial Sector
Commercial Sector Segment Size (by Revenue Share) • General improvement in equipment utilisation being experienced • Current major contracts are progressing well. Work continues as scheduled on Perth Children’s Hospital, Crown Hotel, New Perth Stadium, and Capital Square. FY16 • Project pipeline rem
Slide 14: Resource & Industrial, Oil And Gas
Resource & Industrial, Oil And Gas Segment Size (by Revenue Share) • A solid performance with increased revenue and profitability despite challenging and competitive market conditions • Current major scaffolding contracts are advancing well - includes Woodside’s north-west shelf project (onshore and
Slide 15: Residential Sector
Residential Sector Segment Size (by Revenue Share) • Revenue/EBITDA off peak levels and reverted back to more normal levels • Cautiously positive, with residential building activity anticipated to remain broadly steady for the remainder of this calendar year FY16 FY15 • Ongoing strong population gro
Slide 16: Smartscaff JV
Smartscaff JV • Continued demand and high utilisation levels are being experienced across the East coast • Strong financial performance with contribution above expectation • Demand expected to continue throughout FY17 15
Slide 17: Corporate
Corporate • Approved refinance of debt facilities - Enhance the Group’s capital structure - $40m working capital and equipment finance facility with CBA, and $22m equipment finance facility with Toyota - Extends average debt maturity profile - Lower cost of debt circa 30% - Provides more flexible an
Slide 18: National Consolidation Strategy
National Consolidation Strategy • Geographical Diversification - Diversify end user exposure - National business that is not reliant on any single state exposure issues - Ability to respond to changing market conditions by re-locating equipment and resources where required • Enhanced Product Offerin
Slide 19: National Consolidation Strategy (continued)
National Consolidation Strategy continued • Employees - Long term employment contracts with key personnel - Enhanced career opportunities for all employees - Attract, retain, and incentivise key personnel - Industry Leaders in our field of expertise - Long-standing client relationships with large na
Slide 20: Outlook
Outlook • Strong results, balance sheet and cashflow generation to continue in FY17 • Poised to grow footprint across Australia replicating successful WA model • Fragmented industry offers consolidation opportunities on the east coast • Strategic acquisition opportunities already identified and are
Slide 21: Disclaimer
Disclaimer The information in this presentation is not an offer, nor constitutes investment advice or any recommendation to subscribe or acquire securities in Global Construction Services Limited, nor retain or sell any securities currently held. The presentation has been prepared without taking int
Slide 22: Ph: 139 GCS (139 427)
Ph: 139 GCS (139 427) www.gcs-group.com.au