Seymour Whyte — FY2016 Earnings Presentation
32 slides from Seymour Whyte's earnings presentation, Aug 24, 2016
Slide 1: Seymour Whyte Limited 2016 Full Year Results Presentation
STRATEGIC OUTLOOK Seymour Whyte Limited 2016 Full Year Results Presentation SAFTY 24 August 2016 FINANCIAL OPERATIONAL OUTLOOK & COMPANY FY16 SNAPSHOT DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 2: FY16 Snapshot
STRATEGIC OUTLOOK 2 SAFTY FY16 SNAPSHOT FINANCIAL OPERATIONAL OUTLOOK & COMPANY DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 3: FY16 Snapshot
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FY16 SNAPSHOT Strong revenue base of $360.7 million, up 33.7% on PERFORMANCE FINANCIAL previous year—profitability down, mainly due to four loss-making projects Project wins during year of circa $420 million PERFORMANCE Total forward order book of $465 mil
Slide 4: Excellence in safety performance
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FY16 SNAPSHOT Excellence in safety performance PERFORMANCE FINANCIAL − Group-wide total recordable injury frequency rate (TRIFR) reduced to 9.6 in FY16 from 14.3 in FY15—54% improvement since FY12 PERFORMANCE − Utilities infrastructure business TRIFR improveme
Slide 5: Financial performance
STRATEGIC OUTLOOK 5 SAFTY Financial performance FINANCIAL OPERATIONAL OUTLOOK & COMPANY FY16 SNAPSHOT DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 6: Revenue
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK REVENUE Revenue from construction (excluding PERFORMANCE FINANCIAL other revenue) of $359.5 million, up 33.7% compared to prior comparable period (pcp) Strong order book at the commencement PERFORMANCE OPERATIONAL of FY16 resulted in civil infrastructure con
Slide 7: Revenue
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK REVENUE PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL OUTLOOK & STRATEGY Revenue earned across 35 projects and NSW revenue contribution almost doubled, reflective of increased 17 clients government investment in infrastructure and successful diversification
Slide 8: Financial result
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FINANCIAL RESULT PERFORMANCE Key challenges in FY16 impacting on FINANCIAL profitability included: − loss-making projects − strong, sustained competition in the PERFORMANCE OPERATIONAL tendering environment resulting in margin compression in order book − unexp
Slide 9: Financial position
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FINANCIAL POSITION FY16 FY15 $ Change % Change PERFORMANCE FINANCIAL Cash at bank $m 35.3 42.2 (6.9) (16.4)% Debt $m (4.6) (4.2) (0.4) (10.0)% Net cash $m 30.7 38.0 (7.3) (19.3)% PERFORMANCE OPERATIONAL Property, plant and equipment (PPE) $m 29.2 29.3 (0.1) (0.4
Slide 10: Financial facilities
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FINANCIAL FACILITIES PERFORMANCE Facility limit Utilised Available FINANCIAL Asset finance facility $m 7.4 4.6 2.8 Cash advance facility $m 10.0 - 10.0 Financial guarantee facilities PERFORMANCE OPERATIONAL Bank guarantee facility1 $m 35.4 18.6 16.8 Security bon
Slide 11: Group cashflow analysis
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK GROUP CASHFLOW ANALYSIS PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL OUTLOOK & STRATEGY Cash of $5.9 million generated from operations, aided by $3.1 million income tax refund INFORMATION COMPANY Capital expenditure financed where possible, with $1.7 millio
Slide 12: Operational performance
STRATEGIC OUTLOOK 12 SAFTY FY16 SNAPSHOT FINANCIAL OPERATIONAL OUTLOOK & COMPANY DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 13: FY16 map of operations
STRATEGIC OUTLOOK 13 SAFTY FY16 MAP OF OPERATIONS Performance Operational FY16 SNAPSHOT FINANCIAL OPERATIONAL OUTLOOK & COMPANY DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 14: Civil infrastructure division
FY16 SNAPSHOT Operational SAFTY STRATEGIC OUTLOOK Performance CIVIL INFRASTRUCTURE DIVISION PERFORMANCE FY16 FY15 $ Change % Change FINANCIAL Revenue $m 306.9 213.9 93.0 43.5% EBITDA $m 4.4 18.3 (13.9) (76.0)% EBITDA/revenue % 1.6% 8.6% - - Operating profit (before tax)* $m 2.9 16.3 (13.4) (82.2)% P
Slide 15: Utilities infrastructure division
FY16 SNAPSHOT Operational SAFTY STRATEGIC OUTLOOK Performance UTILITIES INFRASTRUCTURE DIVISION PERFORMANCE FY16 FY15 $ Change % Change FINANCIAL Revenue $m 71.3 60.0 11.3 18.9% EBITDA $m 11.2 8.0 3.2 39.7% EBITDA/revenue % 15.7% 13.4% - - Operating profit (before tax)* $m 8.7 5.8 2.9 49.8% PERFORMA
Slide 16: People
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK PEOPLE PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL *Rob Carr Pty Ltd was acquired in February 2014 and only contributed four months of revenue OUTLOOK & STRATEGY Employee numbers increased by 24% from 349 to 431 in the second half of FY16 to support operatio
Slide 17: Safety
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK SAFETY PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL OUTLOOK & STRATEGY Outstanding safety performance: − Group-wide total recordable injury frequency rate (TRIFR) continues to improve—achieved 54% decrease in Group TRIFR since FY12 INFORMATION COMPANY − Succe
Slide 18: Environment
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK ENVIRONMENT Environmental management PERFORMANCE FINANCIAL − Recognised for 15 years continuous compliance to both ISO 9001 and ISO 14001 environmental and quality management certification. − Achievement of zero Class 1 (significant environmental PERFORMANCE O
Slide 19: Community
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK COMMUNITY Community investment PERFORMANCE FINANCIAL − Ongoing support of the Seymour Whyte Distinguished Visiting Scholar Program for women in engineering— more than 200 participants over a four-day period for the 2015 event PERFORMANCE OPERATIONAL − Ongoing
Slide 20: Outlook & Strategy
STRATEGIC OUTLOOK 20 SAFTY Outlook & Strategy FINANCIAL OPERATIONAL OUTLOOK & COMPANY FY16 SNAPSHOT DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 21: Market opportunities
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK MARKET OPPORTUNITIES PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL OUTLOOK & STRATEGY INFORMATION COMPANY Activity in the Australian engineering and construction sector slowed dramatically in FY14 but is expected to recover DISCLAIMER from FY18. 21
Slide 22: Market opportunities
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK MARKET OPPORTUNITIES PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL OUTLOOK & STRATEGY *Utilities contestable market disclosed as a national figure INFORMATION COMPANY Opportunities in our core capability area of road construction continues to grow The Group’
Slide 23: 2020 Strategic Plan
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK 2020 STRATEGIC PLAN PERFORMANCE Positive industry outlook provides opportunities for FINANCIAL expansion to deliver improved shareholder returns, a more sustainable fixed cost structure and greater opportunities for our people. PERFORMANCE OPERATIONAL We wil
Slide 24: 2020 Strategic Plan
STRATEGIC OUTLOOK 24 SAFTY 2020 STRATEGIC PLAN FINANCIAL OPERATIONAL OUTLOOK & COMPANY FY16 SNAPSHOT DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 25: FY17 and beyond
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FY17 AND BEYOND PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL OUTLOOK & STRATEGY *Order book includes $63 million project award announced in July 2016 Total forward order book of $465 million (up 39% on same time last year), benefited by more than $250 million
Slide 26: FY17 and beyond
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FY17 AND BEYOND PERFORMANCE FINANCIAL PERFORMANCE OPERATIONAL OUTLOOK & STRATEGY INFORMATION COMPANY DISCLAIMER Project end dates and values are indicative and are subject to change due to variations and scope changes. Forecast information subject to major weath
Slide 27: FY17 and beyond
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK FY17 AND BEYOND $394 million of work in hand forecast to be delivered in FY17, PERFORMANCE FINANCIAL to surpass FY16 revenue Currently undertaking significant tendering activity for delivery in FY18 and beyond Awaiting decisions on a number of tender submi
Slide 28: Company information
STRATEGIC OUTLOOK 28 SAFTY Company information FINANCIAL OPERATIONAL OUTLOOK & COMPANY FY16 SNAPSHOT DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 29: Company profile
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK COMPANY PROFILE ASX:SWL (information as at 22 August 2016) Board of Directors PERFORMANCE FINANCIAL Listed 31 May 2010 Mac Drysdale Chairman Total shares on issue 87,976,230 John Kirkwood Managing Director and Chief Executive Officer Market capitalisation $65.1
Slide 30: Organisation structure
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK ORGANISATION STRUCTURE PERFORMANCE FINANCIAL Seymour Whyte Limited Board Oversight & Managing Director & CEO Governance PERFORMANCE OPERATIONAL SEYMOUR WHYTE GROUP Executive Management Team Health, Safety, Communication & Information Shared Services Environment
Slide 31: Disclaimer
STRATEGIC OUTLOOK 31 SAFTY FY16 SNAPSHOT FINANCIAL OPERATIONAL OUTLOOK & COMPANY DISCLAIMER PERFORMANCE PERFORMANCE STRATEGY INFORMATION
Slide 32: Disclaimer
FY16 SNAPSHOT SAFTY STRATEGIC OUTLOOK DISCLAIMER PERFORMANCE 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 FINANCIAL (and in many cases are outsid