Saunders International Limited · ASX:SND
Saunders International — H1 FY2017 Earnings Presentation
35 slides from Saunders International's earnings presentation, February 2017
Slide 1: Half Year Results 2017
© SAUNDERS INTERNATIONAL HALF YEAR RESULTS 2017 INNOVATION] EXCELLENCE | GROWTH
Slide 2: Agenda
COMPANY OVERVIEW 3 SAUNDERS ACQUISITION OF CIVILBUILD 21 CORPORATE SNAPSHOT 4 OVERVIEW 22 SHAREHOLDER RETURN 5 HIGHLIGHTS 23 FINANCIAL PERFORMANCE 6 STRATEGY 24 HIGHLIGHTS FY17 H1 7 STRATEGIC RATIONALE 25 OPERATING RESULTS 8 TRANSACTION SUMMARY 26 BALANCE SHEET 9 PAST & CURRENT KEY PROJECTS 27 REVIE
Slide 3: Company Overview
C O M PA N Y O V E R V I E W Saunders International is a multi-disciplined and integrated Saunders operates from three business groups, the Engineering engineering and construction business. Construction group, the Facility Maintenance group and the Asset Services group. We are one of Australia’s mo
Slide 4: Corporate Snapshot - February
C O R P O R AT E S N A P S H O T - F E B R U A R Y 2 0 1 7 PRICE A$0.63 Share Price Performance & Volume as at 16/02/17 ASX CODE SND SHARES ISSUED 81M OPTIONS - MARKET CAP A$51M CASH A$13.4M TOP 20 SHAREHOLDERS 67% NO. OF SHAREHOLDERS 912 (approx.) Desmond Bryant - 28.7% SUBSTANTIAL SHAREHOLDERS Tim
Slide 5: Shareholder Return
SHAREHOLDER RETURN MARKET CAPITALISATION - $M BASIC EARNINGS PER SHARE - CENTS DIVIDENDS - CENTS PER SHARE FY FY FY 9 8.14 7.41 64 58 6 6 51 5.64 5 45 5 42 4 3.68 4 4 3 2 3 0.39 1 2 2 2 2 1 13 14 15 16 FY17H1 13 14 15 16 FY17H1 12 13 14 15 16 FY17H1 Interim Dividend Final Dividend Special Dividend 5
Slide 6: Financial Performance
FINANCIAL PERFORMANCE 31 DECEMBER 2016 31 DECEMBER 2015 CATEGORIES HALF YEAR $000 HALF YEAR $000 Revenue $18,605 $20,640 Net profit before tax $448 $2,007 Net profit after tax $304 $1,396 Net profit (%) 1.63% 6.76% Return on equity (%) 1.8% 7.4% Basic earnings per share 0.39c 1.78c Work in hand 38M
Slide 7: Highlights FY17 H1
HIGHLIGHTS FY17 H1 • Safety performance continues to improve with entire group remaining LTI free since May 2013 • Current tendering activity remains strong at - $149M live tenders • Three new Engineering Construction projects awarded • Remain preferred contractor on a bulk liquid storage terminal o
Slide 8: Operating Results
O P E R AT I N G R E S U LT S REVENUE - $M NPBT - $M NPAT - $M FY FY FY 9.1 8.2 69.3 60.5 6.3 6.3 5.7 43.9 4.4 41.8 3.7 2.8 18.6 0.40 0.3 13 14 15 16 FY17H1 13 14 15 16 FY17H1 13 14 15 16 FY17H1 8
Slide 9: Balance Sheet
BALANCE SHEET B AL AN CE S HEET 3 1 DECEM B ER 2 0 1 6 $ 0 0 0 3 0 JUN E 2 0 1 6 $ 0 0 0 ASSETS Cash 13,438 14,347 Trade receivables 5,848 7,085 Plant & equipment 1,546 1,806 Deferred tax assets 820 864 Others 1,280 294 TOTAL ASSESTS 22,932 24,396 LIABILITIES Payable 4,010 4,685 Provisions 2,414 2,4
Slide 10: Review of Operations
R E V I E W O F O P E R AT I O N S 10
Slide 11: Maintenance Operations
M A I N T E N A N C E O P E R AT I O N S 2017 H1 REVENUE $14.5M REVENUE $M Performance Highlights 14.5 • Awarded multiple projects for Caltex • Awarded multiple projects for Viva Energy • Awarded Project Kimberly Port Authority • Awarded remediation work WACA Inverarity WA • Operating in multiple st
Slide 12: Engineering Operations
E N G I N E E R I N G O P E R AT I O N S 2017 H1 REVENUE $3.9M REVENUE $M Performance Highlights 14 • Awarded project for ExxonMobil • Awarded project for Viva Energy • Awarded project for Terminals • Awarded project for SAMI Bitumen • Operating in multiple states - NSW, QLD, VIC, WA 21% Opportuniti
Slide 13: Geographical Revenue Distribution for the Half Year
GEOGRAPHICAL REVENUE DISTRIBUTION FOR THE HALF YEAR VIC 9.5% QLD 13.5% NT 0% NSW 60% WA 16% 50% SA 1% TAS 0% VIC QLD NT WA TAS SA NSW 13
Slide 14: Key Projects
KEY PROJECTS 14
Slide 15: Engineering Construction Operations
E N G I N E E R I N G C O N S T R U C T I O N O P E R AT I O N S VIVA ENERGY - MOBIL OIL - CLYDE TERMINAL CONVERSION YARRAVILLE SUPPLY OPTIMIZATION • Engaged as Principal Contractor • Engaged as Subcontractor • Major shell & roof repairs to T33 • Design & construct 2 x 23ML cone roof tanks for ULP •
Slide 16: Engineering Construction Operations
E N G I N E E R I N G C O N S T R U C T I O N O P E R AT I O N S SAMI BITUMEN - TERMINALS - KWINANA BITUMEN TERMINAL SITE C EXPANSION • Engaged as Subcontractor • Engaged as Subcontractor • Design & shop fabricate 4 x 150T bitumen batch check tanks • Design & construct 2 x 8.5ML external floating ro
Slide 17: Facility Maintenance Operations
FA C I L I T Y M A I N T E N A N C E O P E R AT I O N S MOBIL ALTONA - VIVA CLYDE T87 - TANKAGE MANAGEMENT SERVICES INSPECTION SERVICES Saunders celebrated 20 years managing the tank program at the Saunders were engaged to provide tank management services. Mobil, Altona Refinery in H1 2017. Statione
Slide 18: Our People
OUR PEOPLE SAFETY Our people is what makes Saunders International the Company that it is. Our workforce comprises of 160 employees across all states and we are • Our Total Injury Frequency Rate (TIFR36) (36 month) 4.80 committed to ensuring that everyone of our people, anyone who visits our • Entire
Slide 19: Consistent with Our Strategy – Strengthen & Grow
C O N S I S T E N T W I T H O U R S T R AT E G Y – S T R E N G T H E N & G R O W STRENGTHEN & GROW New contracts awarded delayed start to FY17H2 & FY18 CURRENT Environment continues to be challenging Strengthen CONDITIONS Narrow sector focus impacting order book & Diversify Margin contraction driven
Slide 20: Outlook
OUTLOOK STRENGTHEN & GROW Competitive Backlog $38M 31 January 2017 Cycle KEY INDICATORS Live tenders $149M, project pipeline $209M Strengthen & Growth Preferred contractor on EPC terminal project ENGINEERING CONSTRUCTION Maintaining focus on core tank construction Build Order Diversifying into infra
Slide 21: Acquisition of Civilbuild
© SAUNDERS ACQUISITION OF CIVILBUILD INNOVATION | EXCELLENCE | GROWTH
Slide 22: Overview
OVERVIEW Civilbuild is a Hunter Valley based Civil Engineering business established in 1969 by Ray Wood. • Specialises in construction of bridges & precast concrete solutions • Constructed more than 200 bridges since it was established • Precast operating facilities located in Redhead (Newcastle) NS
Slide 23: Highlights
HIGHLIGHTS • Approximately $22 million expected revenue for FY16 • Established reputation in NSW • Long-term customer relationships • Well positioned to benefit from increased infrastructure spending • Complementary to SND’s sector diversification strategy exposing it to long term growth trends in i
Slide 24: Consistent with Our Strategy – Strengthen & Grow
C O N S I S T E N T W I T H O U R S T R AT E G Y – S T R E N G T H E N & G R O W STRENGTHEN & GROW CURRENT Strengthen CONDITIONS Increasing infrastructure spend & Diversify Profitable CORE BUSINESS Infrastructure with focus on road & rail & Sustainable Growth Engineering Construction - Exposure to l
Slide 25: Strategic Rationale
S T R AT E G I C R AT I O N A L E A transformative step for Saunders International • Diversifies earnings • Exposure to increasing infrastructure spend • Synergies with Engineering Construction business currently subcontracted out 25
Slide 26: Transaction Summary
TRANSACTION SUMMARY • $6.2M approximate consideration • $3.7M Cash & $2.5M Shares • Anticipated closing 31 March 2017 Acquisition includes properties valued at $4.55M 26
Slide 27: Key Projects - Dungog Water Tank
KEY PROJECTS DUNGOG WATER TANK Project Value - $1.7M Duration - 6 months Civilbuild completed one of the largest concrete water tanks in Australia for Hunter Water at Dungog. The tank was 65m in diameter and the tank walls were 10m high. The concrete base was poured insitu and the tank walls were ca
Slide 28: Key Projects - Liddell Haul Road Bridge
KEY PROJECTS LIDDELL HAUL ROAD BRIDGE Project Value - $6.3M Duration - 18 months Civilbuild were contracted by Xstrata to construct a haul road bridge over the main coal rail line in the Hunter Valley. The bridge was 33m wide to allow the coal haul trucks to pass and was designed to support the load
Slide 29: Key Projects - Emu Crossing Bridge, Bundarra
KEY PROJECTS EMU CROSSING BRIDGE - BUNDARRA Project Value - $3M Duration - 11 months Civilbuild were contracted by Uralla Shire Council for the design & construction of Emu Crossing Bridge. The bridge is 150m long, consisting of 4 equal spans. The height of the bridge is 15m above water level. 29
Slide 30: Key Projects - Newdell Overland Conveyor
KEY PROJECTS NEWDELL OVERLAND CONVEYOR Project Value - $4.2M Duration - 8 months Civilbuild were contracted to conduct the civil works to link two train loaders at Newdell Washery. The civil works included all the earthworks for the new 1km long conveyor line, as well as footings for the 800m long o
Slide 31: Key Projects - Bridge over the Macquarie Rivulet
KEY PROJECTS BRIDGE OVER THE MACQUARIE RIVULET Project Value - $4.5M Duration - 10 months Civilbuild were contracted by JK Williams / Lend Lease to construct the 150m long bridge over the Macquarie rivulet. 31
Slide 32: Precast Yard Key Projects
P R E C A S T YA R D K E Y P R O J E C T S WESTCONNEX BEAMS Project Value - $8M Duration - 8 months Manufacture and delivery of 1051 Pre-stressed concrete planks of various length and depth for Westconnex M4 Tunnel portals at Haberfield and Concord. 32
Slide 33: Integration - Infrastructure Maintenance Services
I N T E G R AT I O N INFRASTRUCTURE MAINTENANCE SERVICES 33
Slide 34: Disclaimer
DISCLAIMER IMPORTANT NOTICE This presentation has been prepared by Saunders International Limited (“Saunders”) as a You should not act or refrain from acting in reliance on this presentation material. This overview summary of the Company and its operations and for general information purposes only.
Slide 35: Contact
DISCLAIMER MARK BENSON Managing Director & Chief Executive Officer (02) 9792 2444 mark.benson@saundersint.com 271 Edgar Street, Condell Park NSW 2200 35
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