Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Euroz Hartleys Rottnest Island Conference 2020
17 slides from Southern Cross Electrical Engineering's conference presentation, Mar 10, 2021
Slide 1: Euroz Hartleys Rottnest Island Conference 2020
Euroz Hartleys Rottnest Island Conference 2020 10 March 2021 1 Half Year Results FY21
Slide 2: About SCEE
About SCEE Electrical Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, communication Contractor and maintenance services company recognised for our industry leading capabilities Diversification Established in 1978 in WA, and primarily servicing the resources
Slide 3: Highlights
Highlights Financial Operational Outlook Half year revenue of $135.4m down 27% Acquisition of Trivantage Group Expecting significantly expanded H2 with on previous period completed on 16 December works carried over from H1 and Revenue reduced in half due to later Significant contract wins included R
Slide 4: Reduced first half activity, greater second half expected
Reduced first half activity, greater second half expected Half year revenue of $135.4m down 27% on previous period Summary financials: Later than expected award of Rio Tinto Gudai-Darri and delays in H1 21 H2 20 H1 20 execution of other resources projects into second half reduced levels of activity
Slide 5: Strong balance sheet and debt free
Strong balance sheet and debt free Balance sheet remains strong with cash of $53.3m at 31 December Balance sheet summary: 2020 ($55.3m at 30 June 2020) despite net cash outflow of $21.3m for Trivantage acquisition and $7.2m FY20 final dividend paid in period Dec 20 Jun 20 No debt at 31 December 2020
Slide 6: Cash flow
Cash flow $22.0m working capital inflow from closing out completed FY20 projects and receipt of advance payments on new resources projects Net cash payment of $21.3m for Trivantage acquisition and $7.2m FY20 final dividend paid 6 Half Year Results FY21 6
Slide 7: Order book reaches record half billion dollars
Order book reaches record half billion dollars Record secured order book of $500m includes $60m contribution from Trivantage Resources work continues to grow Future works balanced across the three sectors Jun 20 Dec 20 $440m $500m $110m $165m $175m Commercial Infrastructure Resources $200m $130m $16
Slide 8: Strategy and sector outlooks
Strategy and sector outlooks 8
Slide 9: Strategy
Strategy SCEE primarily sees itself as an electrical and associated services contractor diversified across the resources, commercial and infrastructure sectors Our growth strategy falls in two parts: • To continue to deepen our presence and broaden our geographic diversity in those sectors, noting t
Slide 10: Sector outlooks
Sector outlooks Resources activity has rebounded since the low levels of FY20 Kemerton Lithium Plant, Rio Tinto Gudai-Darri and Rio Tinto Gove will be strong revenue contributors in second half Pipeline continues to grow as commodity prices high – seeing significant opportunities in iron ore, lithiu
Slide 11: Infrastructure peak coming
Infrastructure peak coming Macromonitor, January 2021 11 Half Year Results FY21 11
Slide 12: Trivantage
Trivantage Acquisition substantially increases SCEE’s exposure to recurring and service & maintenance style work Offers considerable cross-selling opportunities: Trivantage is a leading specialised electrical services • Supplying Trivantage switchboards across the SCEE, provider and operates under t
Slide 13: Resources decarbonisation
Resources decarbonisation Decarbonisation of resources sector commencing Battery, solar and wind projects under development Initiatives under way by multiple mining companies including Rio, BHP and FMG Energy and raw materials availability driving related Pilbara developments – hydrogen, fertilisers
Slide 14: Conclusion and outlook
Conclusion and outlook • Half year revenue of $135.4m down 27% on previous period • Major resources projects ramp-up slower than originally forecast but visibility of work for second half • EBITDA* of $9.7m down 9%, EBIT* of $7.3m down 9% and NPAT of $4.5m down 15% on previous period • Cash of $53.3
Slide 15: Corporate summary
Corporate summary Capital Structure Shareholders at 11 February 2021 ASX Code SXE Thorney Investments 17.8% Share Price (22 February 2021) 56.0c First Sentier Investors 9.3% No. of ordinary shares 248.1m Perennial Value Management 5.3% Market Capitalisation (22 February 2021) $138.9m Other Instituti
Slide 16: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation SCEE’s results are reported under International H1 21 H2 20 H1 20 Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. $m $m $m The Company discloses certain non-IFRS Contract revenue 135.4 184.8 230.3 measures that are not pr
Slide 17: Disclaimer
Disclaimer Some of the information contained in this presentation given in this presentation is given for illustrative purposes only contains “forward-looking statements” which may not directly and should not be relied upon as (and is not) an indication of or exclusively relate to historical facts.
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