21 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 26, 2011
Slide 1: Full year results 2011
For personal use only Full year results 2011 26 August 2011
Slide 2: Presentation overview
Presentation overview For personal use only • 2011 full year results highlights • Financial overview • Operational overview • Safety & people • Strategy & outlook • Summary 1
Slide 3: Group highlights
Group highlights For personal use only Strong turnaround in H2 providing base for earnings growth • FY11 revenue of $102m (H1 $47m, H2 $55m), up 5% on FY10 Financial H2 up 17% on H1 • FY11 gross profit of $16.2m (H1 $2.3m, H2 $13.9m) • FY11 statutory net loss after tax of $1.7m (H1 $(4.8)m, H2 $3.
Slide 4: Order book – the return to growth
Order book – the return to growth For personal use only Significant uplift in order book – solid lead indicator $m 80 $75m 70 60 Oil & Gas 50 Infrastructure 40 Operations Support 30 $27m Mining International 20 Mining Aust 10 0 30‐Jun‐10 Current 3
Slide 5: Financial overview – strong turnaround in H2
Financial overview – strong turnaround in H2 For personal use only 6 months to 12 months to June Dec June June Change 2011 2010 ($m) 2011 2010 Change 54.5 47.3 Sales Revenue 101.8 97.4 13.9 2.3 Gross profit 16.2 30.6 6.1 (5.4) EBITDA 0.6 16.4 3.1 (4.8) Statutory NPAT (1.7) 8.7 5.7% (10.1)% Statutory
Slide 6: Financials – 2011 has formed the base
Financials – 2011 has formed the base For personal use only Full year performance masks strong H2 turnaround $m Revenue $m Gross profit & GP margin 120 40 40% 100 30 30% 80 60 20 20% 40 10 10% 20 0 0 0% FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 $m EBITDA $m NPAT & NPAT margin 30 30% 20 20% 2
Slide 7: Cash flow – a story of two halves
Cash flow – a story of two halves For personal use only ($m) June December ($m) 2011 2010 6 months to 2011 2010 12 months to 30 Jun Operating cash flows 4.6 (4.4) Operating cash flows 0.2 0.2 Investing cash flows (1.1) (0.7) Investing cash flows (1.8) (20.9) Financing cash flows 31.0 (6.0) Financing
Slide 8: Financials – balance sheet
Financials – balance sheet For personal use only ($m) 30 Jun 31 Dec 30 Jun • Improved cash position by $23.8m 2011 2010 2010 due largely to the completed capital Current assets 59.8 23.3 37.0 raising in April 2011 • Non‐current assets down following Non‐current assets 26.8 30.1 30.4 the reclassifica
Slide 9: Financials – contribution analysis
Financials – contribution analysis For personal use only FY10 revenue FY11 revenue $97.4 million $101.8 million Line of business $ Line of business $ Mining Australia 25,468,483 Mining Australia 36,524,885 Mining International 1,930,279 Mining International 7,508,263 Operations Support 20,171,325 Op
Slide 10: Five lines of business
Five lines of business For personal use only Australian Minerals and Processing Oil & Gas – Australia International Minerals and Processing Infrastructure – Australia Operation, Support & Maintenance 9
Slide 11: Australian Minerals Processing
Australian Minerals Processing For personal use only Iron ore to drive the business over the next 5 years • Revenue of $36.5m (FY10: $25.5m) Major upcoming opportunities • Bidding for long term framework agreements Sino Iron Rio Tinto expansion projects BHP RGP6 Fortescue Mining Group Current major
Slide 12: Oil & Gas
Oil & Gas For personal use only Established credibility; strong contention for CSG projects • Revenue of $33.3m (FY10: $31.5m) Major upcoming opportunities • Successful completion of Pluto project achieving a satisfactory commercial result CSG east coast Pluto 2/3 Wheatstone Scarborough credibilit
Slide 13: Infrastructure
Infrastructure For personal use only Strong bounce‐back in performance in H2 • Revenue of $6.8m (FY10: $18.3m) Major upcoming opportunities • Substantial growth expected in FY12 off the back of increased mining investment Rio Tinto • East coast CSG is a new target market BHP Sino Iron CSG east coast
Slide 14: International Minerals & Processing
International Minerals & Processing For personal use only Tale of two halves • Revenue of $7.5m (FY10: $1.9m) Major upcoming opportunities • Activity in Peru expected to increase following elections Minas Congas • Pueblo Viejo project tracking in line with expectations Current major projects • Puebl
Slide 15: Operation, Support & Maintenance
Operation, Support & Maintenance For personal use only Building re‐current revenues • Revenue of $17.6m (FY10: $20.2m) Major upcoming opportunities • Assistance with major shutdowns and minor plant upgrades • Expansion of RTIO agreement • Growing a re‐current revenue base to provide a • Expansion of
Slide 16: Safety performance
Safety performance For personal use only Maintaining exceptional safety record SCEE TRCFR FY04 ‐ FY11 • Completed seventh consecutive LTI‐free year 50 • Received AS 4801 and ISO 14001 accreditation for TRCFR / Million hours 40 safety and environmental management systems 30 • Awarded Regional Managin
Slide 17: Industry positioning
Industry positioning For personal use only H1 was the trough for E&I industry; lead indicators trending up • Order book of $27m as at 30 June 2010 H1 revenue of $47m H2 revenue of $55m • Current order book of $75m • Lead indicator companies are achieving improved results Monadelphous NRW Hol
Slide 18: Outlook – FY12
Outlook – FY12 For personal use only FY12 to be a year of transition • FY12 building towards record levels of activity mix of legacy lower margin contract and recent higher‐margin contract revenues • Strong growth in forward order book expected in H1 2012 • Forecast revenue growth expected to be d
Slide 19: Summary
Summary For personal use only A story of two halves; positioned for growth in FY12 and beyond • Successful completion of Pluto contract • Seventh consecutive LTI‐free year • Positioned well with a strong order book momentum building with fifth Sino contract awarded in August • Internal capability
Slide 20: Disclaimer
Disclaimer For personal use only 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 Southern Cross Electrical Engineering Limited’s current intentions
Slide 21: Full year results 2011
For personal use only Full year results 2011 26 August 2011