Seymour Whyte — FY2011 Earnings Presentation
54 slides from Seymour Whyte's earnings presentation, September 2011
Slide 1: Seymour Whyte Limited 2011 Full Year Results Presentation
Seymour Whyte Limited 2011 Full Year Results Presentation Rob Leacock - Acting Chief Executive Officer Craig Galvin - Chief Financial Officer September 2011 1
Slide 2: Road Show Outline
ROAD SHOW OUTLINE 2
Slide 3: Agenda
• Overview • Business Outlook • Business Review • Financials • Appendix 3
Slide 4: Overview
SEYMOUR WHYTE OVERVIEW www.seymourwhyte.com.au
Slide 5: Overview: FY11 Retrospective
Overview: FY11 Retrospective • Additional work volumes • Margin impacted by competitive conditions in civil market • Significant project commencements: – $111m (SW share) Port of Brisbane Motorway Upgrade – $54m Gold Coast Rapid Transit – Southport Roadworks • Board changes: – Appointment of Brian R
Slide 6: Overview: FY12 Prospective
Overview: FY12 Prospective • Contracted order book at 30 June 2011 = $334m • Subsequent award of projects, including Townsville Port Inner Harbour Expansion and Thornton Road Bridge Over Rail contracts has added another $61m • Approximately $283m of this work expected to be carried out in FY12 * • C
Slide 7: Project Update: Gold Coast Rapid Transit
Project Update: Gold Coast Rapid Transit • Project value: $54m • Client: Department of Transport and Main Roads • Complex project environment, under heavy traffic and surrounded by residential properties, schools, shops, restaurants and main Gold Coast Accident & Emergency hospital • Started in Octo
Slide 8: Project Update: Townsville Port Inner Harbour Expansion
Project Update: Townsville Port Inner Harbour Expansion • 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 vessels, with safe acce
Slide 9: Project Update: Ipswich Motorway Upgrade
Project Update: Ipswich Motorway Upgrade • Project value: $1.95b (SWC $188m) • Client: Queensland Department of Transport and Main Roads • Seymour Whyte, Abigroup, Fulton Hogan Alliance • Upgrade of an 8km stretch of the Ipswich Motorway between Dinmore and Goodna • Improve safety, ease congestion a
Slide 10: Project Update: Port of Brisbane Motorway
Project Update: Port of Brisbane Motorway • Project value: $222m (SWC $111m) • Client: Queensland Department of Transport and Main Roads • Seymour Whyte and BMD Constructions • Delivering a duplication of the existing two-lane motorway, as well as a three kilometre extension • New interchange at Pri
Slide 11: Capabilities and Range of Services
Capabilities and Range of Services • Design and construction of major roadworks • Bridgework construction and major concrete structures • “Difficult” projects where a high degree of engineering skill is required • Major traffic management schemes, complex intersection enlargements and reconfiguratio
Slide 12: Business Outlook
BUSINESS OUTLOOK 12
Slide 13: Business Outlook: SWC Target Markets
Business Outlook: SWC Target Markets Sectors - Roads and Bridges - Port Infrastructure - Resources Infrastructure 13
Slide 14: Business Outlook: Revenue vs Order Book
Business Outlook: Revenue vs Order Book 14
Slide 15: Business Outlook: Current Order Book and Expected Project Durations
Business Outlook: Current Order Book and Expected Project Durations • FY12 work from current order book comprises: – 75% relationship contracts – 25% traditional contracts • Increasing capacity from around March 2012 to win and do more projects * As always, any forecast is subject to major weather a
Slide 16: Business Outlook: Current Tendering Activity - Snapshot
Business Outlook: Current Tendering Activity - Snapshot • Current tendering activity – September to December 2011: Approximately $400m of work • Primarily Roadworks and associated bridges • Spread across QLD and NSW / ACT • Approximately $350m QLD and $50m NSW / ACT – predominantly roads projects –
Slide 17: Business Outlook: Key Challenges
Business Outlook: Key Challenges • Continue to attract, develop and retain top calibre key staff • Winning further work for FY13 and beyond • Maintain and improve capacity to undertake projects under a range of delivery methods: – Traditional and Relationship Contracts; – D&C and Construct only – Go
Slide 18: Business Review
BUSINESS REVIEW 18
Slide 19: Business Review: Monthly Order Book
Business Review: Monthly Order Book 19
Slide 20: Business Review: Win Rates
Business Review: Win Rates • In the current market conditions where “limited field” opportunities are rare, the win rate for FY11 should not necessarily be extrapolated to the current period. 20
Slide 21: Business Review: Human Resources
Business Review: Human Resources • Total staff levels increased 24% to 189 people (excluding blue collar) • Project staff levels increased 27% to 140 people (excluding blue collar) • Permanent staff turnover @ 12% (excludes fixed term contracts, excludes probationary employees) • Third party accredi
Slide 22: Business Review: Safety
Business Review: Safety • Behavioural safety leadership program so far undertaken by 78 of the 93 staff identified to attend • Third party certification of system to AS/NZS 4801:2001 standard • Re-certified by Office of Federal Safety Commissioner, August 2011 • 12 month rolling performance both sel
Slide 23: 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 expect a significant impact • One notifiable incident, Zero prosecutions 23
Slide 24: Business Review: Earnings Guidance
Business Review: Earnings Guidance Based on work contracted to date: FY12 NPAT expectation of $14m • 22.8% CAGR for actual NPAT $ • 5.4% NPAT margin for FY11 24
Slide 25: Financials: Financial Year 2011
FINANCIALS Financial Year 2011 25
Slide 26: Financial: Highlights
Financial: Highlights FY2010 FY2011 Change Value of Contracted Order Book $331m $334m * 1% Total Revenue $189.8m $225.7m 18.9% EBITDA $17.4m $17.6m 1.3% NPAT $11.9m $12.3m 3.2% Net Assets $28.4m $37.5m 31.9% Net Cash from Operations $5.0m $9.7m 95.0% Full Year DPS 7.56 cps 8.00 cps 5.8%
Slide 27: Financial: Total Revenue
Financial: Total Revenue • First half FY11 = $97.7m • Second half FY11 = $128.0m • Full year up 18.9% from FY10 27
Slide 28: Financial: Revenue Analysis – FY11
Financial: Revenue Analysis – FY11 28
Slide 29: Financial: Analysis of Profit
Financial: Analysis of Profit • Additional work volumes offset against competitive civil market conditions • Increase in corporate expenses relates to continued organisational growth and work winning activities 29
Slide 30: Financial: EPS and DPS
Financial: EPS and DPS • Final dividend of 4.5 cps • Record date 30 September 2011 • Represents a full year 51% payout ratio 30
Slide 31: Financial: Balance Sheet
Financial: Balance Sheet Total Revenue 50 250 ($Millions) 40 200 30 150 20 100 ($Millions) 10 50 NTA 0 0 FY07 FY08 FY09 FY10 FY11 NTA Total Revenue • Customer prequalification requires high working capital / low debt profile • Strong balance sheet supports continued business growth 31
Slide 32: Financial: Cash Flow Analysis
Financial: Cash Flow Analysis 16 14 12 10 $Millions 8 6 4 2 0 FY07 FY08 FY09 FY10 FY11 Operating Cash Flow NPAT • Cash flow fluctuations are representative of the variable nature of project cash flows • 18.0% increase in overall cash balance to $28.9m held at 30 June 2011 32
Slide 33: Financial: Facilities
Financial: Facilities Facility June 2011 • Guarantees and bonds secure Bank Guarantees & Bonds – Project Facilities performance under traditional construction ANZ contracts (34% drawn) Limit: $18.0m Drawn to: $7.5m • Other facilities fund acquisition of light Vero vehicles & trucks (67% drawn) Limit
Slide 34: Appendix
SEYMOUR WHYTE APPENDIX www.seymourwhyte.com.au
Slide 35: Seymour Whyte Overview
Seymour Whyte Overview • A dynamic infrastructure development company with a 24 year history of providing construction solutions across Queensland and NSW • Trusted by government authorities and major joint venture partners to deliver major infrastructure projects, with a specialised focus on road a
Slide 36: What does Seymour Whyte do?
What does Seymour Whyte do? Large and complex projects Politically and environmentally sensitive landmarks 36
Slide 37: What does Seymour Whyte do?
What does Seymour Whyte do? Complex motorway expansions Remote area rail infrastructure 37
Slide 38: What does Seymour Whyte do?
What does Seymour Whyte do? Award winning community infrastructure Remote mining infrastructure 38
Slide 39: What does Seymour Whyte do?
What does Seymour Whyte do? Working with, and supporting local communities 39
Slide 40: 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 public authorities and their requirements – highly qu
Slide 41: 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 42: 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: RTA & DTMR F150 BSA, QLD $405m turnover
Slide 43: 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 44: 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 – Pri
Slide 45: Management
Management Rob Leacock Mathew Quy-Verlander Acting Chief Executive Officer Operations Manager General Counsel & Company Secretary Craig Galvin Todd Stubbings Chief Financial Officer Human Resources Manager Gerd Wimberger Steve Davies-Evans General Manager Estimating Manager 45
Slide 46: Regional Management
Regional Management Steve Glover Sydney Regional Manager Alistair Pagan Gold Coast Manager Chris MacDonald North Queensland Manager 46
Slide 47: Key Risks
Key Risks • Market Risks - Majority of revenue derived from a concentrated number of clients and contracts • Diversification risks • Litigation and disputes • Contract risk allocation • Safety performance • General economic conditions • Dependence on key personnel • Competition • Risk of non payment
Slide 48: Recently Completed Projects
Recently Completed Projects Isis River Bridge Replacement Gold Coast Highway Upgrade North Shore Boulevard 48
Slide 49: Current Projects
Current Projects Gold Coast Rapid Transit Douglas Arterial Duplication Ipswich Motorway Upgrade Banora Point Upgrade 49
Slide 50: SWC Target Markets: Engineering - Roads
SEYMOUR WHYTE SWC Target Markets Engineering - Roads (Construction Forecasting Council as at March 2011) $Millions T T T T T 0 1 T 1 r 1 1 T FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 ——NSW -——QLD =#NSW & QLD (combined) www.seymourwhyte.co
Slide 51: SWC Target Markets
SWC Target Markets • We are currently developing a strategy for securing civil infrastructure work in the mining sector 51
Slide 52: SWC Target Markets: Bridges, Railways, Harbours
SWC 8,000 - 6,000 + SEYMOUR WHYTE Target Markets Engineering - Bridges, Railways, Harbours (Construction Forecasting Council as at March 2011) 4,000 $Millions 2,000 + FYO3 FY04 FY05 FY06 FY07 FY08 FYO9 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 ——NSW =——QLD = NSW & QLD (combined) www.seymourw
Slide 53: 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 54: 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