Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — FY2019 Earnings Presentation
21 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 28, 2019
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year Ended 30 June 2019 28 August 2019 1
Slide 2: About SCEE
About SCEE E&I Contractor Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, communication and maintenance services company recognised for our industry leading capabilities Combination Established in 1978 in WA, the combination in 2016 with Datatel Communicati
Slide 3: Highlights
Highlights Financial Operational Outlook Full year revenue of $386.0m up Commercial and infrastructure Targeting FY20 revenues over 11%, EBITDA of $23.6m up 13% and overtook resources as largest revenue $420m NPAT of 12.7m up 51% on prior year contributors Order book of $450m includes over primarily
Slide 4: Strong second half
Strong second half H2 revenue $204.2m v H1 revenue $181.8m and H2 Summary financials: EBITDA $14.6m v H1 EBITDA $9.0m Full year revenue of $386m slightly behind “over $400m” FY19 FY18 Chg. % forecast as M4 Westconnex demobilised earlier than $m $m expected Revenue 386.0 347.9 11.0% However EBITDA ah
Slide 5: Infrastructure & commercial overtake resources
Infrastructure & commercial overtake resources Revenue by sector: FY18 FY19 $348m $386m $49m $18m $13m $115m $112m $27m Commercial $88m Public infrastructure & defence Resources Telecommunications & data centres Industrials, energy & utilities $44m $125m $143m 5 Full Year Results 2019 5
Slide 6: East Coast growth continues
East Coast growth continues Revenue by geography: FY 18 FY 19 $348m $386m $3m $5m $16m $21m $39m $43m $161m $211m New South Wales & ACT Western Australia Queensland Northern Territory $129m $106m Victoria & Tasmania 6 Full Year Results 2019 6
Slide 7: Strong balance sheet and debt-free
Strong balance sheet and debt-free Cash remains strong at $53.3m at 30 June 2019 versus Balance sheet summary: $58.1m at 30 June 2018 and no debt Restricted term deposits at 31 December 2018 all released in second half Jun 19 Jun 18 Significant cash inflows anticipated on resolution of $m $m resourc
Slide 8: Operating cash inflows
Operating cash inflows Operating cash inflow of 10.7m Cash outflows of $6.5m paid to Heyday vendors and $7.0m dividends in first half Capex of $2.1m for the year and forecast to remain similar Fully franked 3 cents per share dividend declared and Dividend Reinvestment Plan established 8 Full Year Re
Slide 9: Bulk of FY20 work already secured
Bulk of FY20 work already secured Order book of $450m remains strong at similar levels to last year Includes over $360m of work secured for FY20 representing over 80% of FY20 revenue target Largest component in New South Wales reflecting strong commercial and infrastructure markets Order book by sec
Slide 10: Strategy and sector outlooks
Strategy and sector outlooks Full Year Results 2019 10
Slide 11: Leading national diversified electrical contractor
Leading national diversified electrical contractor NT QLD Commercial WA Wireless networks Rio Tinto Amrun Resources Rio Tinto - Cape Lambert, Dampier construction Arrow MSA EIR, Tom Price, Paraburdoo, RAAF Tindal NBN construction Public Infrastructure & defence Brockman 2, Yandi Carrier networks BHP
Slide 12: Strategy
Strategy SCEE primarily sees itself as an electrical contractor Historically focussed in resources, over the last four years we implemented a strategy to diversify organically and acquisitively into commercial, infrastructure, defence, telecommunications, industrial, energy and utilities work This s
Slide 13: Australia infrastructure gap
Australia infrastructure gap Australia forecasting 3rd highest population growth in OECD but ranked 28th for global infrastructure quality Significant investment sanctioned, with peak activity to come and electrical work generally later in cycle Macromonitor Australian Construction Outlook Overview,
Slide 14: Public infrastructure and defence
Public infrastructure and defence Infrastructure SCEE’s largest revenue sector Infrastructure revenue: Sector primarily driven by government expenditure. Federal budget March FY19 FY18 2019 committed over $100 billion to land transport projects over next 10 years $m $m Revenue 143.4 44.1 Significant
Slide 15: Commercial
Commercial Commercial largest component of SCEE order book Commercial revenue: Multiple base-build and fit-out projects in Sydney and FY19 FY18 Canberra. Significant ongoing works include: Parramatta Square 3 & 4 base-builds and fit-outs $m $m • Revenue 114.5 111.9 • Australian Technology Park Build
Slide 16: Resources
Resources Resources revenue reduced in FY19 as Wheatstone LNG completed early Resources revenue: H2. No foreseeable LNG construction work in near-term although ongoing upstream CSG works in Queensland. Visibility of LNG FY19 FY18 developments in medium-term $m $m Over $20 billion committed capital e
Slide 17: Telecommunications and data centres
Telecommunications and data centres Sector revenue declined as no significant data centre projects in Telco revenue: year. FY19 FY18 First two stages of RUData SYD53 Data Centre awarded in May $m $m 2019 and range of new data centres currently being tendered Revenue 27.0 49.2 NBN construction roll-o
Slide 18: Industrials, energy & utilities
Industrials, energy & utilities Sector stable and provides flow of opportunities. Industrials revenue: Currently tendering fuel terminal, power station and brickworks FY19 FY18 projects $m $m Renewable energy project pipeline subdued compared to prior Revenue 12.9 17.4 periods Recently awarded Agnew
Slide 19: Conclusion and outlook
Conclusion and outlook • Full year revenue of $386.0m up 11%, EBITDA of $23.6m up 13% and NPAT of 12.7m up 51% on prior year • Strong second half with EBITDA up 62% on first half • Balance sheet remains strong with total cash of $53.3m and no debt • Fully franked 3 cents per share dividend declared
Slide 20: Corporate summary
Corporate summary Capital Structure Shareholders at 2 August 2019 (%) ASX Code SXE Share Price (26 August 2019) 50.5c Thorney Investments 15.6% No. of ordinary shares 234.1m Colonial First State (Mitsubishi UFJ) 8.3% Market Capitalisation (26 August 2019) $118.2m Westoz Funds Management 5.3% Number
Slide 21: 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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