For personal use only 31 December, 2012 · 2013-02-26 · This presentation provides a snapshot of Seymour Whyte’s operati onal and financial highlights for the first half of FY2013

www.seymourwhyte.com.au1

Seymour Whyte LimitedCompany Update David McAdam – Managing Director

& Chief Executive OfficerCraig Galvin – Chief Financial Officer

27 February 2013

FIRST HALF RESULTS PRESENTATION

for the six months to31 December, 2012

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Disclaimer and Technical NoteDISCLAIMER

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 Directors). These may cause the actual results or performance of Seymour Whyte to be materially different from any future results or performance expressed or implied by such forward looking statements.

This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.

This presentation should be read in conjunction with other publicly available material. Further information including historical results are available on our website at www.seymourwhyte.com.au.

TECHNICAL NOTE

This presentation provides a snapshot of Seymour Whyte’s operational and financial highlights for the first half of FY2013. The financial information contained in this presentation has mainly been extracted from Appendix 4D: Interim Financial Report For the Half Year Ended 31 December 2012,lodged with the ASX on 27 February, 2013. This information is also available on Seymour Whyte’s website at www.seymourwhyte.com.au The interim financial report should be read in conjunction with the company’s Annual Report for 30 June 2012 (to, for example, allow readers to understand significant accounting policies and methodological information contained in the statistical summary).

Please note that some revenue information disclosed in this report has been adjusted for non-IFRS information to provide an appropriate financial baseline.

Revenue extracted from the Statement of Comprehensive Income is calculated in accordance with AASB131: Interests in Joint Ventures and includes proportionately consolidated revenue for work managed on joint venture projects that have separate legal or financial structures (known as jointly controlled entities).

AASB131 requires that in a jointly controlled operation a venturer recognises the (net) share of income that it earns. This can result in a revenue figure that is much lower than that produced by a proportionate consolidation. Seymour Whyte currently has one such venture (refer to the 30 June 2012 annual report note 20(b) for further details). A non-IFRS adjustment has been made to include the company’s proportionate share of work managed on its jointly controlled operation. This adjustment produces a total revenue figure that provides an appropriate baseline by which the company’s financial performance can be measured (through, for example, the use of common financial ratios such as NPAT margins).

The presentation of this non-IFRS information has been reviewed by the company’s auditors.For

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FINANCIAL RESULTSSection 1

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First Half Review

o On-track to meet full year NPAT guidance o Total Revenue of $138.7m*o NPAT of $3.45m.

o Represents 39% of full year guidance

o Settlements reached with various parties in relation to FY12 legacy issues

o Corporate overheads adjusted to reflect market conditions

o Minimal weather-related disruptions

o Scope growth from existing projects

o Strong balance sheet with net tangible assets of $41m (53.2 cents per share)

o Five new projects with total value of $220m secured during H1

o Fully franked interim dividend of 1.75 cents per share

o Continued improvement in safety performance

*Please refer to the technical note appearing at the start of this presentation for an explanation on the use of non-IFRS information.

6.0 5.1

8.2

3.4

5.9 7.2 0.6

0

2

4

6

8

10

12

14

FY10 FY11 FY12 FY13

NPA

T -$

m

First Half Second Half Forecast

FY13 NPAT expected to be broadly in line with FY12 ($8.8m).

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Financial Summary

*Please refer to the technical note appearing at the beginning of this presentation for an explanation on the use of non-IFRS information.

$m 1H12 1H13 Change

Total revenue (incl. non-IFRS adj. for Jointly Controlled Ops)* 177.15 138.68 21.7%

EBITDA 12.30 4.99 59.4%

NPAT 8.23 3.44 58.1%

Half Year Dividend 4.0 1.75 56.3%

30 June 2012 31 Dec 2012 Change

Cash and cash equivalents 31.1 36.4 17%

Net Tangible Assets (NTA) backing per share 50.7 53.2 4.9%For

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Financial Position

o Balance sheet remains strong, providing flexibility and strength to underpin future growth

o Strong cash flows supported continued investment in new assets

o Working capital of $34.6m, representing 83.2% of the group’s net assets

o Net asset position increased by $1.9m, resulting NTA backing per share increase to 53.2 cps

o Gearing at 4.1% to ensure capacity for future growtho Facilities effectively drawn to 49% as at 31 December, 2012

FY11 FY12 1H13

Net assets $37.49m $39.73m $41.62m

Net assets relative to total revenue 16.6% 12.9% 13.5%*

Net tangible Assets (NTA) 48.2 cps 50.7 cps 53.2 cps

*Based on FY13 forecast revenue

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Revenue Analysis

*Please refer to the technical note appearing at the start of this presentation for an explanation on the use of non-IFRS information.

100.5 97.7

177.2138.7

89.3 128.0

130.3

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

FY10 FY11 FY12 FY13

$ m

illio

ns

First Half Second Half Forecast

FY13 Revenue expected to be broadly in line with FY12

77%

23%

Joint Venture

Seymour Whyte

85%

15%

Government

Private

83%

17%

Queensland

New South Wales

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ORDER BOOKSection 2

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FY13 Projects Won• Bruce Highway (Back Creek) - $28 million

o Construction of 3.7km of Bruce Highwayo Client is Queensland Department of Transport and Main Roadso To be completed in FY14

• Warrego Highway (Jondaryan – Dalby) - $64 milliono Asphalt overlay works to improve flood immunity and overtaking

laneso To be undertaken in joint venture with Boral Resourceso To be completed in FY14

• Great Western Highway (Bullaburra East) - $46 milliono Upgrading and widening ~1.6km of highwayo Client is NSW Roads and Maritime Services (RMS) agencyo Scheduled for completion March 2015

• Logan Motorway - $49 milliono Rehabilitation works on Logan Motorway, west of Brisbaneo Client is Queensland Motorwayso Contract execution is scheduled for February 2013

• Warrego Highway (Toowoomba Range) - $33 milliono Batter remediation works on a section of Highway through

Toowoomba Rangeo High profile projecto Client is Queensland Department of Transport and Main Roadso Delivered under Natural Disaster Relief and Recovery

Arrangements (NDRRA).o Contract execution is scheduled for February 2013

$220 million*Total value of new projects

secured in first half

* Excludes scope growth of existing projects

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Current ProjectsMarch

2013June2013

September2013

December 2013

March2014

June2014

Warrego Highway (Jondaryan) $64 million

Bruce Highway Upgrade (Back Creek) $28 million

Logan Motorway(Rehabilitation works) $49 million

Warrego Highway (Toowoomba Range) $38 million

Townsville Port Inner Harbour Expansion $61 million

Landsborough Highway Upgrade $39 million

Gateway Motorway (Additional Lane) $69 million

Princes Highway, Victoria Creek $22 million

Great Western Highway, Bullaburra East $46 million

TOTAL ORDER BOOK FY13 - $275 million FY14 - $168 million

• Refer to the technical note appearing at the start of this update for an explanation on the use of non-IFRS information• Information appearing in this section is accurate as at February 8 2013. Project start and end dates are indicative. Project values are approximations and may vary on project completion. • Forecast information is, as always, subject to major weather and other adverse events.• Graphic includes only projects currently under construction, projects which have achieved practical completion in the current year have been excluded.

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Order Book

FY13 Contracted revenue

$275 million

115

164197

172

292

150 168

28

114

121 159

42

75

116159

190225

307275

00

50

100

150

200

250

300

350

400

FY08 FY09 FY10 FY11 FY12 FY13 FY14

$ m

illio

ns

Order Book at start of year (<12 mths) Order Book at start of year (>12 mths) Actual Revenue

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Win rates

o Only bidding for projects where there is a greater than 25% chance of positive outcome.

o Winning more projects through innovation in delivery and pricing.

o Commenced pursuit of contracts in strategic target markets.

o Current pipeline of more than $800m of potential projects identified in the next six months.

o Strong performance-based relationships with state government departments continue to be a competitive advantage for publicly-funded projects.

o Will continue to position the company to make the most of growing opportunities for constructing infrastructure in the private sector.

o Will maintain the flexibility to work as a sole contractor or in joint ventures, depending on the nature of emerging opportunities.

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OUTLOOK AND STRATEGYSection 4

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Strategic Plan

o New Strategic Plan implemented.

o Plan highlights need for short term consolidation to meet prevailing market conditions.

• Focus on organic growth through expanded client base (New South Wales & Commonwealth Governments)

• Build skills, systems and relationships to support expansion into new sectors

o Medium term focus on expanding into new areas;• Organic Growth

› Geographic – Queensland and New South Wales› Product – beyond roads› Clients – beyond Queensland and NSW Governments

• Growth through potential acquisition

› Analyse potential for merger or acquisition as geography or sector entry strategy

› Dependent on maintaining balance sheet strengths

Banora Point

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FinancialConsolidate financial management

Sustainable growthLow debt/strong cash model

Market PositionInfrastructure engineer with national footprint

CapabilitiesEnhance and develop in-house capabilities to

match skills and capacity with growth and expansion

SystemsImplement fully-integrated, fully-mobile

systems and technology strategic plan by FY15

Strategic Objectives

Strategic Objectives

Leadership Excellence

Expectations Behaviours ValuesFor

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Grow current capability into

additional transport sector projects;

road, rail, marine & airports

Extend geographic spread through

expansion into third region (WA or NT)

Apply infrastructure construction

engineering skills to resource sector (mine and CSG)

Analyse potential for merger or

acquisition as geography/sector

entry strategy

Joint venture to risk share, gain technical

expertise, supply chain

competitiveness or leverage new

geography/sector

Apply infrastructure construction

engineering skills to utilities sector

(water, wastewater, power)

Strategic Platforms

Market Position

Capability &Leadership

Learning Organisation

Technology & Systems

Cost Innovation

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FY13 OutlookEarnings

o Net profit after tax (NPAT) for FY13 expected to be broadly in line with FY12 NPAT of $8.8m

o Current FY13 Order Book of $275m and FY14 and beyond of $194m. Total Order Book of $469m.

o The positive resolution and settlement of project-related legacy issues as well as favourable weather conditions has brought forward some of the expected second half earnings into the first half.

Market

o Core client (QLD Government - Department of Transport and Main Roads/ NSW Government - Roads and Maritime Services) spending profiles improving.

o Client spending biased towards smaller, essential projects over larger, “mega” projects.

o Potential for continuation of flood recovery spending following most recent flood event (Jan 2013).

Thornton Bridge

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APPENDICESSection 4

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Company Overview

Infrastructure engineers and constructors

Trusted partner

Proven Capabilities

Total commitmentto safety

Strong management and structures

o Evolved from specialist road builder to diversified infrastructure engineer and construction company with capabilities in;

o Transporto Utilitieso Resources

o Established 1987 by John Seymour and Garry Whyteo A demonstrated capacity to deliver large and complex projects with a reputation for

delivering projects on time, on budget and to the highest standards.

o Established, highly productive relationships with key long term partners.o A strong understanding of clients’ requirements and challenges.o Reputation established on complex transport-based (road) projects in brownfields areas.

o Safe delivery is a core value – Zero Harm.o A strong safety culture that protects employees, suppliers and the public.

o Competitive advantage through leading project personnel.o Transition to flat management structure with clear accountabilities.

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Corporate OverviewPROFILE

Head Office Building 14, 2404 Logan Road, Eight Mile Plains, Queensland

Established 1987

Employees 231 (as at 31 December, 2012)

GICS Sector 20: IndustrialsIndustry Group: 2010 Capital Goods

OperationsSeymour Whyte is an infrastructure engineering and construction company with proven capabilities to deliver projects in the transport, resources and utilities sectors.

ASX DETAILS

Listed 31 May, 2010

Total Shares on issue 77.83 million

Market Capitalisation $83.27 million (as at February 1)

Share Price (52-week high/low) $2.34 / $0.68

SHAREHOLDER REGISTRY (as at 31 December, 2012)

Racelid Pty Ltd (Garry Whyte - Founder) 28%

Rabtuvi Pty Ltd (John Seymour - Founder) 24%

Current and Past Employees 8%

Other Investors 40%

DIRECTORS

Mac Drysdale Chairman

David McAdam Managing Director & CEO

Don Mackay Non-executive Director

Susan Johnston Non-executive Director

John Seymour Non-executive Director

John Ready Non-executive Director

EXECUTIVES

David McAdam Managing Director and Chief Executive Officer

Rob Leacock Deputy CEO, Company Secretary and General Counsel

Craig Galvin Chief Financial Officer

Gary Georgiou General Manager, Operations

Steve Davies-Evans Estimating Manager

David Richards Occupational Health and Safety Manager

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www.seymourwhyte.com.au2121www.seymourwhyte.com.au21

Core Capabilitieso Infrastructure engineer and constructor o ‘Difficult’ projects:

o Brownfield urban intensive projectso Complex engineering construction sequencingo Multi-disciplinary projects

o Application of core capabilities across a range of industry sectorso Management and project delivery expertise and experience

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Competitive Advantages

o Demonstrated capacity to deliver complex projects

o High level of prequalification

o Experienced management and personnel

o Cost competitive against Tier 1 contractors

o Technical capability/ high level engineering

o Strong positive working relationships

o Partner of choice for multi-national companies

o Reputation for winning/ completing quality projects

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Board of Directors

Mac DrysdaleChairman

Don MackayNon-executive Director

John SeymourNon-executive Director

Susan JohnstonNon-executive Director

John ReadyNon-executive Director

David McAdamManaging Director & CEO

o Over 15 years as Chairman of Public Company boards

o Over 20 years as non-executive director

o Over 10 years experience as a public company director

o Member of AICD

o Founding Director

o Fellow of the AICD

o Fellow of the Institution of Engineers

o Over 20 years in senior management, and 10 years as a company director

o Long time association with Seymour Whyte, including five years managing projects

o 30 years in the industryo Experienced in

projects up to $4bn

As Chairman of the Board since 2007, Mac has played a key role in the strategy development and growth of Seymour Whyte.

Mac is a highly respected executive with a strong history as a Director and Chairman. Since 1991, Mac has served on the boards of Country Road Australia Ltd (Chairman), Country Road U.S.A Ltd, Mitre 10 Ltd, International Wool Secretariat (Chairman), Australian Wool Research and Promotion Organisation (Chairman), Wool International and Australian Wool Corporation (Chairman).

Don joined the Seymour Whyte Board in 2008. He has a successful track record with his role as CEO and Managing Director of Australian Agricultural Company Limited, where he played a key role in the business growth, international expansion and capital raising for the company.

As General Manager of Elders Limited (NSW), Don influenced the transformation of the business into a high performing industry leader.

Don is also Managing Director of Rangers Valley Pty Ltd and Chairman of B&W Rural Pty Ltd.

John, along with Garry Whyte, established Seymour Whyte, in 1987 and has been a non-executive Director since 2003.

John is a Fellow of the Australian Institute of Company Directors (AICD), a Fellow of the Institute of Engineers and has played an active role in industry bodies such as the Civil Constructors Federation (past President of the Queensland branch) and was inducted in to the QUT Constructors’ Hall of Fame on 2006.

Susan was appointed as a Director in 2011. With over 20 years in senior management, and 10 years as a company director, Susan has a track record for guiding organisations through change.

As CEO of the Queensland Resources Council for two years, Susan led the transformation of Queensland’s peak minerals and energy industry body. She has a strong background in safety, including as Head of Safety and Sustainable Development (Australia) at Anglo American.

John was appointed as a Director of the company in November 2010.

John has over 40 years experience in civil engineering contracting including roles in project management, senior level corporate management and as a business owner.

John first worked with Seymour Whyte in 2002 as the JV project manager for the award winning Brisbane Inner Northern Busway (Stage 5) project.John has a Bachelor of Engineering (Civil) and is a Fellow of the Institute of Engineers.

David joined Seymour Whyte in July 2012 as Chief Executive Officer and was appointed MD in February 2013.

David has held a number of senior positions including General Manager of Thiess Construction Qld Division and General Manager of United Group's construction and services division in Queensland.

He has a BE (1st Hons) and an MBA and is a Fellow of the Australian Institute of Company Directors and a Fellow of the Institute of Engineers Australia.

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Executive Leadership Team

David McAdamManaging Director & CEO

Rob LeacockDeputy CEO, Company Secretary and General Counsel

Craig GalvinChief Financial Officer

Gary GeorgiouGeneral Manager - Operations

Steve Davies-EvansEstimating Manager

o 30 years in the industryo Experienced in projects up

to $4bn

o Strong commercial and legal track record.

o 20 years experience in finance and accounting.

o Responsible for the successful delivery of projects.

o Instrumental in driving the work winning process for all Seymour Whyte contracts.

David joined Seymour Whyte in July 2012 as Chief Executive Officer and was appointed MD in February 2013.

David has held a number of senior positions including General Manager of Thiess Construction Qld Division and General Manager of United Group's construction and services division in Queensland.

He has a BE (1st Hons) and an MBA and is a Fellow of the Australian Institute of Company Directors and a Fellow of the Institution of Engineers Australia.

Rob joined Seymour Whyte in January 2010 and was appointed Deputy CEO in 2012.

Rob has been closely involved in the strategic direction and development of the business over the last three years. He brings more than 25 years experience in the building and civil engineering industry, mainly in commercial and legal roles and also in business development.

He has had wide experience in civil and building projects mainly in New South Wales and Queensland with large contractors, developers and industry organisations. He holds qualifications in law, corporate governance and management.

A key member of the Seymour Whyte team since 2004, Craig is responsible for all aspects of the Company's financial management.

Beginning his career with global accounting firm, KPMG, Craig now has over 20 years experience in finance and accounting. For the past 10 years Craig has worked within the property and construction industry, including employment with Multiplex and the Heritage Pacific & Meridian Groups.

Craig is a Chartered Accountant, holds an Honors degree in Commerce and completed a Master of Business Administration (Advanced) in 1999.

Gary has been with the company since 2002 and was appointed General Manager, Operations in early 2012.

In this position Gary is responsible for the successful delivery of all civil projects undertaken by the company through careful coordination of resources, ensuring transparent and consistent financial reporting and positioning of the business to align with market opportunities.

Gary has a degree in Civil Engineering and has worked in the construction industry since 1994. He is well regarded as a very capable leader, having delivered many successful projects for Seymour Whyte over the years.

As Estimating Manager, Steve is instrumental in driving the work winning process for all Seymour Whyte bids. His in-depth understanding of the company's target markets and industry trends enables Steve to identify new opportunities and lead his team in accurately assessing risk and developing competitive Value for Money offers.

Steve has been with Seymour Whyte since 1994. After completing his degree in Civil Engineering in the United Kingdom in 1982, Steve had an extensive career on a range of complex civil infrastructure projects in the UK and Australia before moving into estimating and bid management.

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o Seymour Whyte’s core belief is that we can work incident and injury free.o Driven through leadership engagement and developmento Increased focus on high potential incident management – a lead indicatoro First half performance:

o 1H13 - Total Recordable Injury Frequency Rate (TRIFR): 14.47o 1H13 - Lost Time Injury Frequency Rate (LTIFR): 1.32

Occupational Health and Safety

19.52

22.5921.49

14.47

0.52

2.07

1.25 1.32

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FY10 FY11 1H13

TRIFR (left axis)

FY12

LTIFR (right axis)

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Environmental performance

o Third party certification of system to AS/NZS ISO 14001:2004o Capacity below NGER threshold o International recognition for Environmental Management on the Banora Point

Upgrade project.

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Industry recognition

o 2012 QMCA Safety Awardo 2012 New South Wales CCF Earth Awardo 2012 Queensland CCF Training Awards – Multiple awardso 2011 QMCA Safety Awardo 2011 Queensland CCF Earth Award – North Shore Boulevardo 2011 Queensland CCF Training Awardo 2010 Queensland CCF Earth Awardo 2010 Queensland CCF Training Awardso 2009 National CCF Earth Awardso 2009 Career One Queensland Excellence Awardso 2009 The HR Leadership Awardso 2009 NSW CCF Earth Awardso 2007 Australian Training Awardso 2007 Queensland Engineering Excellence Awardso 2007 Be Constructive Training Excellence Awardso 2007 Reconciliation Awardso 2007 Queensland CCF Earth Awardso 2007 Queensland Training AwardsF

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Documents

For personal use only 31 December, 2012 · 2013-02-26 · This presentation provides a snapshot of Seymour Whyte’s operati onal and financial highlights for the first half of FY2013