Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Shareholder Meeting (October 2019)
22 slides from Southern Cross Electrical Engineering's shareholder meeting presentation, Oct 29, 2019
Slide 1: Annual General Meeting 2019
For personal use only Annual General Meeting 2019 29 October 2019 1
Slide 2: About SCEE
About SCEE E&I Contractor Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, communication For personal use only and maintenance services company recognised for our industry leading capabilities Combination Established in 1978 in WA, the combination in 2016 wi
Slide 3: Highlights
Highlights Financial Operational Outlook For personal use only 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 contributors Order book of $450m inclu
Slide 4: Strong second half
Strong second half H2 revenue $204.2m v H1 revenue $181.8m and H2 Summary financials: For personal use only 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 1
Slide 5: Infrastructure & commercial overtake resources
Infrastructure & commercial overtake resources Revenue by sector: For personal use only 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 5
Slide 6: East Coast growth continues
East Coast growth continues Revenue by geography: For personal use only 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 6
Slide 7: Strong balance sheet and debt-free
Strong balance sheet and debt-free Balance sheet summary: For personal use only Cash remains strong at $53.3m at 30 June 2019 versus $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 resol
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 For personal use only Capex of $2.1m for the year and forecast to remain similar Fully franked 3 cents per share dividend declared and Dividend Reinvestment Plan esta
Slide 9: Integration ongoing
Integration ongoing Integration across group businesses delivering significant For personal use only synergies and cost efficiencies Benefits realised in both internal and external activities Generating economies of scale through sharing insurance, banking and bonding programs Merging of various pro
Slide 10: Bulk of FY20 work already secured
Bulk of FY20 work already secured Order book of $450m remains strong at similar levels to last year For personal use only 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 mar
Slide 11: Strategy and sector outlooks
For personal use only Strategy and sector outlooks 11
Slide 12: Leading national diversified electrical contractor
Leading national diversified electrical contractor NT QLD Commercial WA For personal use only 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, Yand
Slide 13: Strategy
Strategy SCEE primarily sees itself as an electrical contractor For personal use only 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
Slide 14: 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 For personal use only Macromonitor Australian Construc
Slide 15: Public infrastructure and defence
Public infrastructure and defence Infrastructure SCEE’s largest revenue sector Infrastructure revenue: For personal use only 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
Slide 16: Commercial
Commercial Commercial largest component of SCEE order book Commercial revenue: For personal use only 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
Slide 17: Resources
Resources Resources revenue reduced in FY19 as Wheatstone LNG completed early Resources revenue: H2. No foreseeable LNG construction work in near-term although For personal use only ongoing upstream CSG works in Queensland. Visibility of LNG FY19 FY18 developments in medium-term $m $m Over $20 billi
Slide 18: Telecommunications and data centres
Telecommunications and data centres Sector revenue declined as no significant data centre projects in Telco revenue: For personal use only 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 N
Slide 19: Industrials, energy & utilities
Industrials, energy & utilities Sector stable and provides flow of opportunities. Industrials revenue: For personal use only 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
Slide 20: 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 For personal use only • 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 sh
Slide 21: Corporate summary
Corporate summary For personal use only Capital Structure Shareholders at 11 October 2019 ASX Code SXE Thorney Investments 18.5% Share Price (16 September 2019) 62.0c First Sentier Investors 8.4% No. of ordinary shares 234.7m Other Institutions 31.1% Market Capitalisation (16 September 2019) $145.5m
Slide 22: Disclaimer
Disclaimer Some of the information contained in this presentation given in this presentation is given for illustrative purposes only For personal use 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
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