Saunders International Ltd

February 2013

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SAUNDERS INTERNATIONAL LIMITED

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CORPORATE SNAPSHOT

Price A$0.85

ASX Code SND

Shares issued 79.0M

Options -

Market Cap A$67M

Cash A$14.7M

Top 20 Shareholders 80%

Number of Shareholders 590 (approx.)

Substantial

Shareholders Desmond Bryant – 32.7% Timothy Burnett – 20.1% John Power – 6.4%

Corporate Focus: design, construction and maintenance of steel storage tanks and the project management of ancillary facilities

Share Price Performance and Volume as of 21/02/13

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BUSINESS DESCRIPTION The business was founded in 1951 and specialises in the design, construction and maintenance of steel bulk liquid storage tanks.

Saunders’ products and services are provided via two inter related models: − Design & Construction; and − Facilities Maintenance.

DESIGN & CONSTRUCTION FACILITIES MAINTENANCE

Activities The design and construction of steel bulk liquid storage tanks and associated infrastructure

The maintenance of steel bulk liquid storage tanks, focusing on repair and refurbishment of tanks for the petroleum industry.

Key Industry Sectors

− Oil and gas industry − Water and waste water infrastructure

sector − Fuel Terminal sector − Mining and mineral processing

industry

− Petroleum refineries and distributors

− Oil and gas producers and processing facilities

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DESIGN & CONSTRUCTION RECENT PROJECTS: Terminal Expansion Corio, VIC Value $4.2M

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DESIGN & CONSTRUCTION RECENT PROJECTS: Marine Upgrade Port Hedland, WA Value $3.4M

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FACILITIES MAINTENANCE RECENT PROJECTS: Stolthaven Australia Newcastle, NSW

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FIRST HALF FY2013 REVENUE

Total Revenue $28,500

Split of Facilities Maintenance and Design & Construct 55/45

Total number of customers 13

Repeat Customers 12

Percent of Revenue 98%

New Customers 1

Percent of Revenue 2%

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FY13 GEOGRAPHICAL REVENUE DISTRIBUTION

Majority of Revenue from Western states (WA & SA) due to increased activity in the Pilbara

QLD, 14%

WA, 44% SA, 9%

NSW, 22%

VIC, 11%

QLD

WA

SA

NSW

VIC

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OUTLOOK SECOND HALF FY2013

Work in hand 31 Dec 2012 30 Jun 2012 53m 40m

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OUTLOOK SECOND HALF FY2013

Design and Construct - Record “Work in Hand” of $53 million

Work in Hand to carry into FY14

Competitive market place still putting pressure on margins New projects still slow to be released

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OUTLOOK SECOND HALF FY2013

Facilities Maintenance - Revenue from Refinery Maintenance projected to be similar to

FY2012

Outlook for non refinery maintenance work in WA and NSW promising

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COMMERCIAL MODEL Term Contract:

Usually based on either a management fee and cost reimbursable components or unit rate contract

Typically for 1 to 5 years with options to extend

Lump Sum: One off projects or specifically defined scope of work

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FACILITIES MAINTENANCE

Own er/Operator Location

Maintenance services provided

since

Contract nominated end date 3

Oil Refineries Caltex Australia Limited 1 Kurnell Refinery, NSW 1996 2015

Caltex Australia Limited 1 Lytton Refinery, QLD 2000 2015

Shell Refining Australia Pty Ltd Cly de Refinery, NSW 2000 2014

Mobile Refining Australia Pty Ltd 1 Altona Refinery, VIC 1996 No fixed term

BP Australia Pty Ltd Bulwer Island Refinery, QLD 2010 2013

BP Australia Pty Ltd Kwinana Refinery, WA 2010 2013

Oil and Gas Production and Distribution Facilities BP Australia Pty Ltd Australian Terminals 2010 2013

Mobil Oil Australia Pty Ltd Australian Terminals 2006 On going

Santos Limited 1 Central Australia 2005 2012

Shell Refining Australia Pty Ltd Gore Bay Terminal, NSW 2000 2014

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FINANCIAL METRICS

KEY FINANCIAL STATISTICS 31 December 2012 31 December 2011

Revenue $28.5 m $23.343 m

EBITDA $4.4 m $3.4 m

EBITDA % margin 15% 15%

EBIT $4.3 m $3.2 m

NPBT $4.6 m $3.4 m

NPAT $3.3 m $2.4 m

EPS 4.15 cents 3.03 cents

FY 2013 Dividend

Interim Dividend per Share (fully franked) 2.0 cent 1.0 cent

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BALANCE SHEET

Strong cash reserves

No debt

BALANCE SHEET ($ Million) 31 DECEMBER 2012 30 JUNE 2012

Assets

Cash 14,685 17,061

Trade receivables 6,372 8,029

Plant and equipment 1,502 939

Deferred tax assets 959 882

Others 1,092 604

Total Assets 24,610 27,515

Liabilities

Payables 4,840 5,445

Tax Liabilities 1,285 729

Provisions 2,706 2,660

Total Liabilities 9,073 9,026

Net Assets 15,537 18,489

NTA per share 19 cents 21 cents For

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FINANCIAL PERFORMANCE

BUSINESS STRATEGY Design & Construction:

− Concentrate on work with higher margins by undertaking larger and more complex projects

− Increase emphasis of Project Management of Tankage related projects

− Position the business to capitalise on any Fuel Terminal expansion which may be required due to the restructure of Shell and Caltex Refineries

Facilities Maintenance: − Broaden and grow the business unit’s revenue base

− Position the business to participate in the Refinery modifications which will be required due to change of operations at the Shell and Caltex Refineries

Strategic Acquisitions: − Continue search for acquisitions that will enhance the existing business

− Capital required already available and position also enhanced by strong share price For

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