Synertec Corporation Limited · ASX:SOP
Synertec — Shareholder Meeting (November 2019)
33 slides from Synertec's shareholder meeting presentation, Nov 21, 2019
Slide 1: 2019 AGM – Chair Address and Managing Director's Presentation
ASX Announcement For personal use only 21 November 2019 2019 ANNUAL GENERAL MEETING – CHAIR ADDRESS AND MANAGING DIRECTOR’S PRESENTATION The following address and presentation are attached and will be delivered today at the Annual General Meeting in Melbourne, beginning at 2.30pm (AEDT). Chair’s a
Slide 2: Synertec Chair Address: Introduction
Synertec Chair Address For personal use only Synertec 2019 Annual General Meeting – 21 November 2019 Introduction Good afternoon ladies and gentlemen, fellow shareholders and visitors. My name is Leeanne Bond, I am the Chair of Synertec, and I would like to formally welcome you to Synertec’s 2019 An
Slide 3: FY19 Commentary
FY19 Commentary For personal use only Moving on to my comments about FY19, I say with great pleasure it has been a privilege as Chair to be part of the substantial growth of Synertec since the acquisition of Synertec Pty Ltd and re-listing on the ASX in August 2017. The highlight in a financial sens
Slide 4: Growth strategy priorities
1. Driving organic growth in our existing products and solutions by focussing on solutions where Synertec is uniquely positioned to win. For personal use only Synertec looks to apply its proprietary IP across new clients within target industries, and in some cases, extend know-how developed in one i
Slide 5: Conclusion
Conclusion For personal use only I extend a big thank you to our Managing Director, Mr. Michael Carroll, and the entire team at Synertec, for outstanding and consistent dedication to our customers and to growing and seeking to continuously improve all facets of our business. I am confident that Syne
Slide 6: 2019 Annual General Meeting Managing Director's Presentation
For personal use only Synertec Corporation Limited (ASX:SOP) 2019 AGM presentation by Managing Director, Mr. Michael Carroll 21 November 2019
Slide 7: Company highlights
Company highlights For personal use only 111% YoY revenue growth to $24.1m in FY19: Growing rapidly in a listed company environment $40m medium term revenue target with above industry margins: Growth trajectory underpinned by the commercialisation of CTS and AICS High quality customer base: World-cl
Slide 8: A high quality customer base
A high quality customer base For personal use only QCLNG 70% of work from repeat clients1 Darwin LNG 1 – Since FY17 3
Slide 9: FY19 summary: 111% revenue growth
FY19 summary: 111% revenue growth For personal use only Period where SOP is Commentary listed on ASX Revenue (A$m) Record revenue and growth in 111%+ FY19 demonstrates ability to 24.1 successfully deliver large projects in target industries 18.2 FY19 achieved improved project 16.0 diversificatio
Slide 10: FY19 summary: income statement
FY19 summary: income statement For personal use only Income statement Period where SOP is Commentary (A$m) listed on ASX Substantial growth & record revenue following the award of several large Fixed price projects and strategically important projects. & transfer of goods 21.0 Return to EBITDA p
Slide 11: FY19 summary: cash flow and balance sheet
FY19 summary: cash flow and balance sheet Key cash flow and balance sheet metrics (A$m) For personal use only Cash flow summary FY17 FY18 FY19 Variance Operating cashflow (1.3) 1.0 0.8 (17)% Positive operating cashflow Investing cashflow - (1.0) - 100% Financing cashflow (0.8) - - - Total Net Cash
Slide 12: Synertec's core business
Synertec’s core business For personal use only Strong track-record as a multidisciplined and integrated business, delivering end-to-end proprietary products and solutions Synertec is a provider Deliberately targeting industry segments with high of mission-critical barriers to entry and high client r
Slide 13: Multiple value levers are being pursued in tandem
Multiple value levers are being pursued in tandem For personal use only Growth engines Near-term focus Multiple projects under tender 1. Focus on solutions where A$40m+ p.a. medium-term revenue target SOP is uniquely positioned to with above industry margins based on win management pipeline, wit
Slide 14: Ongoing innovation to drive sustained growth
Ongoing innovation to drive sustained growth For personal use only Deep client Strategic Replication & Enhance relationships R&D expansion offering Identify ‘universal Work in partnership solutions’ in live Targeted marketing of with our clients, deeply Our proprietary IP projects that have high val
Slide 15: Synertec focused on two proprietary IP opportunities
Synertec focused on two proprietary IP opportunities For personal use only Proprietary IP: CTS: Custody AICS: Advanced Integrated Transfer Systems Control Systems The measurement of quality and volumes of The design, implementation and regulation of Description of gas, oil and related products a
Slide 16: CTS: Market overview
CTS: Market overview Significant uplift in global LNG investment For personal use only Global investment in liquefaction capacity (MT)1 Global LNG demand continues to increase 40 LNG demand will match supply by 20202 China is set to become the world’s largest 30 gas importer, doubling LNG import
Slide 17: CTS: Market overview – industry comments
CTS: Market overview Latest LNG industry comments support the view For personal use only “LNG, meanwhile, is likely to be the fastest growing fossil fuel type, with demand doubling by 2035.” “The LNG market is in transition BHP, in AFR, 12 November 2019 towards a fully globalised and liquid commodit
Slide 18: CTS: Synertec's differentiation
CTS: Synertec’s differentiation IP resolves common customer pain points For personal use only Current problem Our solution Custody Transfer Systems involve Accuracy of Automatic testing with best in heavy components of manual testing testing and often result in errors of +/- 1% class precision
Slide 19: CTS: Growth plan
CTS: Growth plan Multiple avenues for growth targeted For personal use only LNG Design and New LNG New investment in LNG Refurbishment of optimisation of gas processing facilities marine solutions existing sites transmission In active discussions with To identify and tender for In active discussions
Slide 20: AICS: Market overview
AICS: Market overview Significant uplift in critical infrastructure projects For personal use only Priority industries High-value active rail projects Rail Deep Dive: Synertec is WestConnex (NSW) $16bn well positioned to capitalise on the Liberal government’s 10 year, Sydney Metro (NSW) $12bn $100bn
Slide 21: AICS: Growth plan
AICS: Growth plan Targeted approach in key industries, pipeline building For personal use only …while strengthening its industry leading reputation Synertec is well positioned for continued growth... & experiencing pull-through deeper into customers Feedback from Jemena’s Northern Gas Pipeline proje
Slide 22: Strategic alliances present considerable upside
Strategic alliances present considerable upside For personal use only Improved access to LNG market Ability to serve large global projects Strategic alliance with Trelleborg Group Strategic alliance with Babbage Consultants, NZ (announced September 2018) (announced November 2019) Best-in-class LNG G
Slide 23: Summary: Synertec strongly positioned for global growth
Summary: Synertec strongly positioned for global growth For personal use only Global growth in Global investment in Global M&A LNG focus in China: LNG investment: infrastructure: opportunities: Synertec addresses increasing requirements Board appointment in for safety and A$200bn in LNG plant Highly
Slide 24: Disclaimer and important notice
Disclaimer and important notice For personal use only The information in this presentation about Synertec Corporation Limited (the Group) and its activities is current as at 21 November 2019. It is in summary form and is not necessarily complete. Information, including forward-looking forecast finan
Slide 25: 2019 AGM – Resolutions and Voting
For personal use only Synertec Corporation Limited (ASX:SOP) 2019 Annual General Meeting – Resolutions and Voting, presented by Chair, Ms. Leeanne Bond 21 November 2019, 2.30pm (AEDT)
Slide 26: Items of Business
Items of Business Item 1 – Financial Reports For personal use only To receive and consider the Financial Report, Directors’ Report and Auditor’s Report for the year ended 30 June 2019. Item 2 – Resolution 1 – Adoption of the Remuneration Report To receive, consider and adopt the Remuneration Report
Slide 27: Receive & Consider FY19 Financial Reports
Item 1 – Receive & Consider FY19 Financial Reports For personal use only To receive and consider the Financial Report, Directors’ Report and Auditor’s Report for the year ended 30 June 2019. The Corporations Act requires that the Financial Report, Directors’ Report and Auditor’s Report of Synertec C
Slide 28: Resolution: Remuneration Report
Item 2 – Resolution 1 (non-binding) Remuneration Report For personal use only To receive, consider and adopt the Remuneration Report for the year ended 30 June 2019 (as a non-binding resolution) Voting Exclusion: In accordance with the requirements of section 250R of the Corporations Act, a vote on
Slide 29: Re-election of Director – Ms. Leeanne Bond
Item 3 – Resolution 2 (ordinary) Re-election of Director – Ms. Leeanne Bond To consider, and if thought fit, pass the following resolution as an ordinary resolution: For personal use only “That Ms. Leeanne Bond, who retires by rotation in accordance with clause 93(a) of the Company’s Bye-Laws and Li
Slide 30: Election of Director – Mr. Dennis Lin
Item 4 – Resolution 3 (ordinary) Election of Director – Mr. Dennis Lin To consider, and if thought fit, pass the following resolution as an ordinary resolution: For personal use only “That Mr. Dennis Lin, who was appointed since the last AGM and retires in accordance with clause 90(b) of the Company
Slide 31: Re-appointment of Auditor
Item 5 – Resolution 4 (ordinary) Re-appointment of Auditor To consider, and if thought fit, pass the following resolution: as an ordinary resolution: For personal use only “That, pursuant to clause 158 of the Company’s Bye-Laws, Grant Thornton Audit Pty Ltd be and hereby are appointed as Auditors of
Slide 32: Approval of 10% Placement Facility
Item 6 – Resolution 5 (special) Approval of 10% Placement Facility To consider and, if thought fit, pass the following resolution as a special resolution: For personal use only “That, pursuant to and in accordance with Listing Rule 7.1A and for all other purposes, Shareholders approve the issue of E
Slide 33: Meeting Close
Meeting Close For personal use only On behalf of the Board, I would like to thank you for attending today’s meeting. Leeanne Bond, Chair Synertec Corporation Limited 9