29 slides from Southern Cross Electrical Engineering's earnings presentation, Feb 19, 2025
Slide 1: Half Year Ended 31 December 2024 Results Presentation
Half Year Ended 31 December 2024 Results Presentation 19 February 2025
Slide 2: Introduction to SCEE
Introduction to SCEE Leading national electrical, instrumentation, …built by design through operational excellence and a communications, security and maintenance group… disciplined M&A strategy Historically focused on resources and industrial work, but • Established in 1978 in Perth and listed in 20
Slide 3: SCEE's strategy
SCEE’s strategy SCEE Group primarily sees itself as an electrical contractor diversified across the infrastructure, commercial, and resources sectors • Our growth strategy continues to be to deepen our presence in those sectors and broaden our geographic diversity through expanding our core competen
Slide 4: Financial performance
Financial performance 4
Slide 5: Record half year revenue, profit and cash
Record half year revenue, profit and cash Record half year revenue $397.4m (H1 FY24: $255.5m) up 55.5% on pcp Infrastructure comprised 63.3% of revenue as largest sector (40.6% of revenue in pcp) Record half year EBITDA $27.1m (H1 FY24: $17.1m) up 58.5% on pcp * Record half year EBIT $23.2m (H1 FY24
Slide 6: Record half year revenue and profit
Record half year revenue and profit Record half year revenue $397.4m (H1 FY24: $255.5m) up 55.5% on Summary financials: prior corresponding period Revenue split by sector: Infrastructure $251.7m (PCP: $103.8m), H1 FY25 H1 FY24 % Commercial $79.9m (PCP: $78.9m), and Resources $65.8m (PCP: $72.8m) $m
Slide 7: Strong balance sheet
Strong balance sheet Cash increased in year to a record $114.8m (30 June 2024: $84.1m) Balance sheet summary: Remain debt free Bank guarantee and surety bond facilities capacity increased from Dec 24 Jun 24 $100.0m to a record $150.0m in May $m $m Record $112.5m of bank guarantees and surety bonds w
Slide 8: Record cash
Record cash Significant cash flows in the period included: • Record pay-out in a half year of $12.7m of fully franked dividends • Tax payment of $16.0m in half effectively “catching up” on payments of only $3.7m income tax paid in previous half • Deferred consideration payment of $1.0m for acquisiti
Slide 9: Operations and outlook
Operations and outlook 9
Slide 10: Operational highlights and outlook
Operational highlights and outlook Lost Time Injury (“LTI”) free for fifth consecutive half-year (H1 FY25: 1.6m manhours LTI-free) Workforce at circa 1,700 direct employees Collie Battery Energy Storage System at peak levels of activity, progressing well and to schedule Western Sydney Airport termin
Slide 11: Three structural tailwinds
Three structural tailwinds 11
Slide 12: Infrastructure
Infrastructure Infrastructure very wide sector for SCEE across federal and state government and private investment in Data Centres, renewables and energy, transport (including airports, rail, road and ports), health and aged care, defence, education, agriculture, water, and other utilities Heyday ha
Slide 13: Infrastructure (cont.)
Infrastructure (cont.) Outside of Data Centres, renewables and hospitals, other strong infrastructure opportunities for SCEE include: • Western Sydney International Airport and Aerotropolis - SCEE’s largest revenue contributor in FY24, the terminal project for Multiplex is now ramping down. Tenderin
Slide 14: Data Centres
Data Centres Data Centres are electrically dense with electrical work comprising the largest component of construction costs. SCEE businesses have worked on Data Centres for over twenty years and the sector is now showing exponential growth • Data Centres have grown in size, those of the hyperscale
Slide 15: Electrification
Electrification Australia is undergoing an energy transition requiring electrification of many activities in coming decades. SCEE has multiple exposures to these developments The transition will require: • Transforming Australia’s electricity supply to run mainly on non-carbon fuels • The developmen
Slide 16: Electrification (cont.)
Electrification (cont.) Transition of Australia’s electricity supply requires investment in renewables supported by battery storage and grid reconfiguration SCEE well-credentialled to participate in this thematic having constructed multiple solar farms, wind farms and Battery Energy Storage Systems
Slide 17: Investment proposition
Investment proposition 17
Slide 18: Diversified across markets and operations
Diversified across markets and operations Order Book by Sector Order Book by Geography Revenue breakdown $m $m by Sector FY17-FY24 • Order book up 22% on pcp • 60% of order book on East $m • Infrastructure 70% of order book Coast H1 H1 H1 H1 FY24 FY25 FY24 FY25 670 670 35 80 553 552 550 550 32 104 4
Slide 19: Long-term blue-chip client base
Long-term blue-chip client base Seven selected clients – Woolworths, Coles, BHP, Rio These seven clients have long-standing and deep Tinto, Multiplex, CPB and Built – have consistently relationships with SCEE spanning decades and most provided over 45% on average of revenues over the last across mul
Slide 20: Growth of recurring revenue
Growth of recurring revenue Strong track record of recurring revenue growth - FY24 Wide range of recurring works under services, recurring revenue was over 33% of total annual revenue maintenance, sustaining capital, and framework agreements, including: Recurring Revenues ($m) • Supermarket works fo
Slide 21: Strong shareholder returns and financial position
Strong shareholder returns and financial position Shareholder returns over last eight years Strong cash position to support continued growth (2.5cps franked interim dividend to be paid 9 April 2025 at 31 December 2024: Increased 150% over prior year interim dividend) $m Dividends paid (cps) Cash 114
Slide 22: Track record of successful acquisitions
Track record of successful acquisitions Completed value-accretive acquisitions of Datatel in 2016, Revenue contribution of acquisition in first full year of Heyday in 2017, Trivantage Group in 2020 and MDE Group in consolidation 2024 Actively exploring range of further acquisition targets offering i
Slide 23: Conclusion
Conclusion 23
Slide 24: Conclusion
Conclusion Record half year revenue $397.4m (H1 FY24: $255.5m) up 55.5% on pcp Record half year EBITDA $27.1m, EBIT $23.2m and NPAT $16.2m all up on pcp * Record cash $114.8m (30 June 2024: $84.1m) up 36.5% on record prior period end Interim Dividend 2.5 cps declared and fully franked, up 150% on pr
Slide 25: Q&A
Q&A 25
Slide 26: Corporate summary
Corporate summary Capital Structure Shareholders at 7 February 2025 ASX Code SXE Thorney Investments 14.4% Share Price (17 February 2025) $1.535 Other Institutions in Top 30 Shareholders 23.2% No. of ordinary shares (17 February 2025) 264.3m Frank Tomasi 16.9% Market Capitalisation (17 February 2025
Slide 27: Appendix 1 – IFRS reconciliation
Appendix 1 – IFRS reconciliation SCEE’s results are reported under International H1 FY25 H1 FY24 Financial Reporting Standards (IFRS). SCEE discloses certain non-IFRS measures that are not prepared in $m $m accordance with IFRS. The non-IFRS measures should only be considered in addition to, and not
Slide 28: Appendix 2 – selection of current projects
Appendix 2 – selection of current projects Synergy Collie Battery Energy Multiplex Western Sydney Storage System – SCEE Electrical International Airport - Heyday Over $200m Over $100m Rio Tinto Iron Ore Master Services John Holland Shoalhaven Hospital Agreement – SCEE Electrical Redevelopment - Heyd
Slide 29: Disclaimer
Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect the current intentions, plans, expectations, assumptions and beliefs of Southern Cross El