18 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 28, 2012
Slide 1: Investor Presentation: 2012 Full Year Results
SOUTHERN CROSS ELECTRICAL ENGINEERING For personal use only Investor Presentation 2012 Full Year Results 27 August 2012 SIMON HIGH CHRIS DOUGLASS MANAGING DIRECTOR/CEO CHIEF FINANCIAL OFFICER Southern Cross Electrical Engineering www.scee.com.au
Slide 2: Presentation
PRESENTATION For personal use only 1. Highlights 2. SCEE Businesses 3. Financial Performance 4. Strategic Objectives 5. Sustainability 6. Outlook 7. Conclusions Southern Cross Electrical Engineering Page 1 www.scee.com.au
Slide 3: Highlights
HIGHLIGHTS For personal use only • Revenue increased 116% to $220.0m (2011 - $101.8m) • Profit after tax of $13.7m (2011 – loss of $1.7m) • Earnings per share 8.5cps (2011 – loss of 1.3cps) • Dividend declared of 2.25c per share fully franked (2011 - no final dividend) • Cash at 30 June 2012 $31.5m
Slide 4: SCEE Businesses
SCEE BUSINESSES For personal use only SCEE Infrastructure SCEE Construction SCEE Services From 1 July 2012: K.J. Johnson & Co rebranded SCEE Description Infrastructure Design and construction of high Electrical & instrumentation Operations support, voltage power line distribution, installation and m
Slide 5: Financial Performance: Summary
FINANCIAL PERFORMANCE Summary For personal use only Growth and return to profitability Year ending Year ending 30 June 2012 30 June 2011 % Change $m $m Revenue 220.0 101.8 116% EBIT 19.4 (1.1) NA Profit after tax 13.7 (1.7) NA Earnings per share 8.50 cps (1.28) cps 20% Dividends per share de
Slide 6: Financial Performance: Project Performance
FINANCIAL PERFORMANCE Project Performance For personal use only Growth trajectory 6 months to Dec 2010 Jun 2011 Dec 2011 Jun 2012 $m $m $m $m Revenue 47.3 54.5 84.2 135.8 Gross profit 2.3 13.9 17.8 25.6 Gross profit margin 4.9% 25.5% 21.1% 18.9% Profit after tax (4.8) 3.1 5.1 8.6 Profit after tax ma
Slide 7: Financial Performance: Cash Flow
FINANCIAL PERFORMANCE Cash Flow For personal use only Cash generation Year ending Year ending Operating cash - inflow 30 June 2012 30 June 2011 $m $m • Return to cash inflow in H2 Operating cash flows 10.0 0.2 • Working capital requirements • Systems expenditure Investing cash flows (6.0) (1.8) • Re
Slide 8: Financial Performance: Cash Generation
FINANCIAL PERFORMANCE Cash Generation For personal use only 60 50 5.05.0 (11.3) (11.0) 40 (6.0) 22.2 22.4 (6.2) (0.9) (2.9) (0.9) 30 $m 20 31.5 31.5 26.3 26.3 10 0 Opening Cash EBITDA Release of Working Capex Tax, Interest, Repayment of FX on Cash Closing Cash July 2011 Restricted Capital Other Borr
Slide 9: Financial Performance: Balance Sheet
FINANCIAL PERFORMANCE Balance Sheet For personal use only Investment and growth Year ending Year ending 30 June 2012 30 June 2011 $m $m Current assets 91.9 59.8 • Strong cash position with Non-current assets 34.8 26.8 negligible debt Total assets 126.7 86.6 • Increased plant and equipment investment
Slide 10: Strategic Objectives
STRATEGIC OBJECTIVES SCEE Objectives For personal use only Be recognised as a Tier 1 Electrical and Installation construction and operational support contractor in selected resources sectors: • Iron Ore • LNG • Coal • CSG • Minerals and metals (gold, copper, uranium, etc.) Full life cycle focus : •
Slide 11: Sustainability: SCEE Employees
SUSTAINABILITY SCEE Employees For personal use only 1000 Continuous recruitment of key people to support growth: International 129 • Project Managers 800 Australia • Construction Managers • Commercial Teams 600 • Project Finance Teams 400 115 785 200 362 0 As at 30 June 2011 As at 30 June 2012 South
Slide 12: Sustainability: Apprenticeship Program
SUSTAINABILITY Apprenticeship Program For personal use only • SCEE has a 98% completion rate and 90% Apprentices retention rate for apprentices. 55 66 • Over the past ten years the company has 21 23 21 33 graduated 51 apprentices of which 46 have been 2008 2009 2010 2011 2012 2013 retained as trades
Slide 13: Sustainability: Systems Developments
SUSTAINABILITY Systems Developments For personal use only Business intelligence On track and on budget Southern Cross Electrical Engineering Page 12 www.scee.com.au
Slide 14: Market Outlook
MARKET OUTLOOK Market For personal use only • Growth expected in 2013 and beyond for at least a three to five year period • Iron Ore, Coal and CSG current sectors for growth • 2014 and onwards onshore LNG projects will provide unprecedented growth • Current conditions are competitive but still suppo
Slide 15: Outlook: Order Book
OUTLOOK Order Book For personal use only Ongoing Works: • MCCM - Sino Iron 200 • Rio - Cape Lambert 33kv Final stages of negotiations overhead line 160 • Rio - Yandi transmission lines • Rio - Coastal Waters 140 transmission lines 120 • Thiess Sedgman JV - Lake Vermont Coal Expansion 80 • Thiess - Q
Slide 16: Outlook: Pipeline of Work
OUTLOOK Pipeline of Work For personal use only SCEE is experiencing a high level of tendering in Australia across different resources sectors: LNG • Ichthys, Wheatstone, Gorgon, Offshore support services Iron Ore • Rio Tinto Expansion, BHP Billiton Sustaining Capital, Sino Iron, Roy Hill, MAGJV Sout
Slide 17: Conclusions: Summary
CONCLUSIONS Summary For personal use only • Solid progress in a transformational year • Return to dividend payments on the back of healthy financial result and outlook 140 • Softening in current market conditions but three to five year outlook extremely positive • Continue to build internal capacity
Slide 18: 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,