Slide 1: Strategy Update & Investor Presentation August 2019
For personal use only Synertec Corporation Limited (ASX:SOP) Strategy Update & Investor Presentation August 2019
Slide 2: Investment highlights
Investment highlights For personal use only 111% YoY revenue growth to $24.1m in FY19: Growing rapidly in a listed company environment $40m medium term revenue target with above industry margins: Growth trajectory underpinned by the commercialisation of CTS and AICS High quality customer base: World
Slide 3: FY19 summary: 111% revenue growth
FY19 summary: 111% revenue growth For personal use only Period where SOP is Commentary listed on ASX Revenue (A$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 4: FY19 summary: income statement
FY19 summary: income statement For personal use only Income statement Period where SOP is Commentary (A$m) listed on ASX ▪ Substantial growth & record revenue following the award of several large and Fixed price projects strategically important projects. & transfer of goods 21.0 ▪ Return to EBITDA p
Slide 5: FY19 summary: cash flow and balance sheet
FY19 summary: cash flow and balance sheet Key cash flow and balance sheet metrics (A$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 6: 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 6
Slide 7: 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 8: 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 Work in partnership with Identify ‘universal Targeted marketing of our clients, deeply solutions’ in live projects high value proprietary Our proprietar
Slide 9: 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 SOP ▪ A$40m+ p.a. medium-term revenue target is uniquely positioned to win with above industry margins based on management pipeline, wit
Slide 10: 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 gas, ▪ The design, implementation and regulation of Description of oil and related products a
Slide 11: 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 12: 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 heavy Accuracy of ✓ Automatic testing with best in components of manual testing and testing often result in errors of +/- 1% class precision ▪
Slide 13: CTS: Growth plan
CTS: Growth plan Multiple avenues for growth targeted For personal use only LNG New LNG New investment in LNG Refurbishment of Design and optimisation processing facilities marine solutions existing sites of gas transmission In active discussions To identify and tender for In active discussions Work
Slide 14: 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 well WestConnex (NSW) $16bn positioned to capitalise on the Liberal government’s 10 year, $100bn investment in Sydney Met
Slide 15: AICS: Growth plan
AICS: Growth plan Targeted approach in key industries, pipeline building For personal use only Synertec is well positioned for continued growth... …while strengthening its industry leading reputation Synertec has assembled an Feedback from Jemena’s Northern Gas Pipeline project: experienced and high
Slide 16: 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 Strategic alliance in active discussions (announced September 2018) (not announced) Top-tier engineering services firms Best-i
Slide 17: Summary: Synertec well positioned for continued global growth
Summary: Synertec well positioned for continued 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 A$200bn in LNG plant Board appointment in for safety and
Slide 18: Experienced management team aligned to shareholders
Experienced management team aligned to shareholders For personal use only Management team Michael Carroll David Harris Joern Buelter Managing Director Chief Financial Officer & Chief Operating Officer B. App. Sc (Applied Chemistry); Company Secretary B.Eng (Mechanical); MAICD GradDip.Ch.E; MAICD BB
Slide 19: Experienced and highly commercial Board
Experienced and highly commercial Board For personal use only Board of Directors Leeanne Bond Poh Kiat Dennis Lin Independent Non- Independent Non- Independent Non- Executive Chairperson Executive Director Executive Director Australia-based Singapore-based Australia-based ▪ Ms. Bond has 30 years’ ex
Slide 20: 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 26 August 2019. It is in summary form and is not necessarily complete. Information, including forward-looking forecast financi