company update - tempoaust.com · acquisition business case – strategic rationale ... partners...
TRANSCRIPT
COMPANY UPDATE
Acquisition of assets from Cablelogic Pty Ltd
JULY 2016
ABOUT TEMPO
ASX listed contractor servicing the resources sectors – mining, and oil and gas
Target contract size <$50m – geared for scopes of work that are not economic for large players
Larger works targeted in partnership with large Engineering Procurement and Construction firms, and Original Equipment Manufacturers
Well positioned for sustainable and strategic growth – heathy tender pipeline
Key Value Proposition:
Flat management structure that drives lean overheads and improved client responsiveness
Structured front line employee engagement process focused on driving retention and continuous improvement
Efficient management system focused around productivity, quality and risk management
Established frontline productivity tool-kit, comprising of five key tools developed to drive site based activities through continuous monitoring of leading productivity indicators
Exclusive partnership with a tech company aimed at obtaining site-based productivity metrics through the use of innovative micro and geo-fencing techniques
Financials
Strong operating cash flows in the last 12 months to 31 Mar 2016
$11.5m
Record revenue (to year ending 31 Dec 2015)
$79.2m
Record NPAT (to year ending 31 Dec 2015)
$6.7m
Cash at bank (at 31 Mar 2016) $9.8m
ABOUT CABLELOGIC
Established in 1995, headquartered in Perth, with a regional office and workshop in Karratha
Workforce of ~45 including more than 30 front line employees
Specialist provider of electrical, telecom and data communications services to the Resources, Telecommunications, Commercial and Industrial Building Construction industries
Extensive experience in turnkey fibre optic and communications cabling solutions including design, procurement, installation, terminations and specialist telecommunications carrier grade OTDR testing for LNG trains, gas plants, offshore platforms, mines and camps in both live and construction environments
Strong track record of delivery with an established client base in the commercial and industrial building industry
Dedicated service & maintenance division offering electrical & data cabling services and maintenance support to organisations across WA
Strong track record in renewable energy and energy management solutions for commercial and industrial clients encompassing solar PV grid connected and off grid systems as well as battery storage technology
Achieved Quality Assurance and OH&S certification to AS9001 and AS4801 as well holding many Original Equipment Manufacturers endorsements
ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE
CREATE
SHAREHOLDER VALUE
ENHANCE
COMPETITIVE
ADVANTAGE
ENSURE
SUSTAINABLE FUTURE
MANAGE RISK
WORK WITH THE
RIGHT CLIENTS AND
PARTNERS
STRATEGIC IMPERATIVE
• Enhances Tempo’s specialised delivery capabilities and extends service offering through a 20 year track record
of successful electrical, telecom and data communication services to the resources and commercial sectors
• Expands Tempo’s presence in the Pilbara region through a regional office and workshop in Karratha
• Assets include work in hand of approximately $4 million and an operational group with specialised plant and
equipment that have delivered an average turnover over the past three years of approximately $15 million
• Cablelogic’s core business is profitable and scalable, but previous investments in non-core assets, coupled
with a weak balance sheet, had forced Cablelogic into receivership
• Allows Tempo to further differentiate on upcoming rail line technology and upgrades, mining, oil and gas
maintenance and sustaining capital projects where specialised electrical, telecom and data communication
expertise and equipment is required
• A highly experienced operational team which will be located at Tempo’s current headquarters, broadening
Tempo’s delivery depth
• Recurring revenue streams through the delivery of long term electrical, telecom and data communication
infrastructure and maintenance services
• An expanded pipeline of opportunities has already been established (through the diligence process) with
existing Cablelogic and Tempo clients
• Allows Tempo to diversify into the commercial and industrial building sectors through a 20 year track record of
delivery with well established clients
• The acquisition has been funded out of working capital, and will not impact Tempo’s ability to fund current
business or support future growth opportunities
• Cablelogic has a strong track-record of delivery to Blue Chip clients in the Resources and Commercial and
Industrial sectors
• Further strengthen Tempo’s established working relationships with key clients such as: Woodside, Chevron,
BHP Billiton, and Rio Tinto
HOW THE CABLELOGIC ACQUISITION DELIVERS ON TEMPO’S STRATEGY
TEMPO GROUP OPERATING MODEL (POST ACQUISITION)
Cablelogic to become Tempo’s electrical,
telecom and data communication division for the
Commercial and Industrial Building Construction
Industry
Cablelogic personnel and assets will further
differentiate and enhance Tempo’s brand of a
specialised multidisciplinary construction and
maintenance group in the resource sector
Cablelogic brand will be retained and used to
target:
telecom and data communications work in
the Commercial and Industrial Building
Construction Industry; and
long term electrical, telecom and data
communications infrastructure
maintenance service offerings across
metropolitan areas
Cablelogic operational personnel will relocate to
Tempo’s premises and work utilising Tempo’s
management systems
Multidisciplinary
Construction &
Maintenance
Resources Industrial &
Commercial
Electrical &
Telecommunications
CABLELOGIC CORE CAPABILITES
Resources Solutions Commercial and
Industrial Solutions
Service and
Maintenance Solutions
Experience in the design and construction
of electrical, data and telecom
communication infrastructure for onshore
plant, offshore rig, platforms, ship cabling,
mines and mine camps
State-wide coverage supported by a Perth
based operations team, and regional
Karratha branch
Experience in intrinsically safe equipment
Fibre optic single and multimode cabling
from 6 core to 144 core
Cat5e, cat6a, and cat7 structured cabling
systems
Program Logic Controllers, and E&I work
Multi core backbone cabling for controls
and communications
System cabling for various applications
such as Alan Bradley, ABB VSDs, Vesda
fire systems, security, Triconics etc
Satellite systems
RF and wireless
Conduit, pit and pipe, cable ladder, tray
and basket support systems
20 years of experience providing
electrical, telecom and data infrastructure
design and installation to commercial and
government clients
Experience in providing solar power and
energy efficiency solutions
Electrical and structured cabling
Fibre Optic single and multimode cabling
from 6 core to 144 core
Satellite and wireless communications
Security and Access control systems
Fire and EWIS
Lighting and Telephony installations
Preventive and reactive maintenance for
electrical and communications network to
minimise downtime
Metropolitan coverage supported by a
dedicated Service & Installation team
Complete service and support for
electrical, data and voice network
infrastructure
Repair of data outlets and cabling
Repair and testing of fibre optic cabling
Repair or replacement of electrical
cabling, light fittings, emergency light
audits, RCD test and repair, test and
tagging of power points, outlets, office
equipment and stores equipment
KEY PROJECTS/TRACK RECORD – RESOURCES SOLUTIONS
LNG4 & 5 and Pluto
Gas Trains
Client: Woodside Petroleum
Scope: Execution of fusion spliced
fibre optic terminations to support
ethernet LAN network, gas plant
process control systems, CCTV,
fire protection systems, security
and access control systems and
other services. Temporary and
permanent construction building
fibre and copper cabling
Mooka Stage 1 & 2
Ore Car Repair Shop
Expansion Project
Client: McConnell Dowell & BHPB
Scope: Installation of
communications, fibre optic and
E&I cabling infrastructure for new
machines and robotic systems,
PLC systems, commissioning and
electrical punch list items
Rio Tinto Iron Ore Rail
Capacity Enhancement
Project
Client: Ansaldo STS & Rio Tinto Iron Ore
Scope: Rail signalling upgrade and new
construction project along side live
operating rail network. Drum testing of
fibre optic cables, post installation
testing of fibre optic cables, installation,
termination and testing of mainline and
spurs cables, installation, termination
and testing of cables between signalling
equipment cases testing and certification
to client and vendor specifications
KEY PROJECTS/TRACK RECORD – RESOURCES SOLUTIONS
Oyu Tolgoi Gold,
Copper Mine, Mongolia
Client: Rio Tinto and Oyu Tolgoi
.
Scope: Engaged by Rio Tinto to
consult, assist, train and work
alongside Chinese and Mongolian
communications contractors for
best practices for installation,
termination and certification
testing of fibre optic network and
process control systems for the
new underground gold mine
located in the Gobi desert in
central Mongolia
Wheatstone LNG
Offshore Platform
Client: BAE Systems and Chevron
.
Scope: Execution of fibre optic
core testing. Support subsea
umbilical fibre optic cable
termination and testing to
platform’s junction box. Test, re-
terminate, retest and certify 6,8,&
24 core, OS1 and OM3 fibre
cables to Chevron standards
Cloudbreak Mine – Newman
.
Client: Downer EDI & Fortescue Metals
Group
Scope: Cable installation for new mine
including 48 core fibre optic and
communications cabling facilities for
process control, marshalling and LAN
systems
KEY PROJECTS/TRACK RECORD – COMMERCIAL & INDUSTRIAL SOLUTIONS
BP Refinery, Kwinana
Client: Gavin Construction & BP
.
Scope: Large open general lab, office
space, amenities, second floor plant
room, octane test engine facility,
process analyser workshop and
support facilities
Willetton Senior High
School
Client: Cockram Construction
.
Scope: Constructed electrical services,
fibre optic backbone and cat 6 data
cabling for six new blocks while
keeping the existing school operating
GP Super Clinic
Client: Pindan & Metropolitan
Redevelopment Authority
Scope: Subdivision of the heritage
listed Midland Rail Workshops
(Block 1) and construction of a
new multi-storey building within the
confines of the heritage listed
building
KEY PROJECTS/TRACK RECORD – SERVICE & MAINTENANCE SOLUTIONS
Attorney General’s Dept
Client: Australian Government
.
Scope: Cable installation, service
and maintenance state wide over the
past 20 years
Vodafone
Client: Cellular Asset Management and
Vodafone
Scope: Installation of IBC (in building
cabling services) in airports, shopping
centres, public spaces, hospitals and
high rise buildings for mobile phone
services
Flight Centre
Client: One Group Retail and Flight
Centre .
Scope: Installation of voice, data,
and electrical equipment for new
branch stores over the past 10
years
DISCLAIMER
This Presentation is provided by Tempo Australia Ltd (the Company).
You should not rely upon anything in this presentation and/or any information obtained from the Company,
its Directors or their associates in deciding whether or not to seek to participate in the shares of the
Company.
This is not an offer to subscribe for securities in the Company.
The Presentation may contain quantitative statements of anticipated future performance such as
projections, forecasts, calculations, forward-looking statements or estimates all of which are based on
certain assumptions (Forward Looking Statements).
The Forward Looking Statements may involve subjective judgements and are based on a large number of
assumptions and are subject to significant uncertainties and contingencies, many of which are outside the
control of the Company and may not prove to be correct.
No representation or warranty is made that any Forward Looking Statements will be achieved, or occur, or
that the assumptions upon which they are based are reasonable or the financial calculations from which
they have been derived are correct. Actual future events may vary significantly from the Forward Looking
Statements.
Each Recipient should undertake its own independent review of the Forward Looking Statements,
including the assumptions on which they are based and the financial calculations from which they are
derived