Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Investor Presentation (November 2020)
19 slides from Southern Cross Electrical Engineering's investor presentation, Nov 18, 2020
Slide 1: Investor Presentation - Acquisition of Trivantage Holdings Pty Ltd
Investor Presentation - Acquisition of Trivantage Holdings Pty Ltd 18 November 2020 1
Slide 2: Acquisition overview and strategic rationale
1 Acquisition overview and strategic rationale 2
Slide 3: Acquisition overview
Acquisition overview SCEE has entered into a Share Purchase Agreement to acquire 100% of Trivantage Holdings Pty Ltd from the current shareholders of Trivantage for an enterprise value of up to $53.5m on a debt free basis, comprising: $25.0m cash payable on completion, expected to be mid-Decembe
Slide 4: Acquisition overview (continued)
Acquisition overview (continued) Trivantage is a specialised electrical services company with over 50 years of operational experience providing complex electrical solutions across Australia Trivantage is primarily a services oriented business characterised by a strong degree of recurring and mai
Slide 5: Acquisition consistent with SCEE's strategy
Acquisition consistent with SCEE’s strategy Over the past four years, SCEE implemented a strategy to diversify into commercial, infrastructure, defence, telecommunications, industrial, energy and utilities work across Australia This strategy was significantly progressed via the successful acquisitio
Slide 6: Transaction highlights and strategic rationale
Transaction highlights and strategic rationale The acquisition of Trivantage is consistent with SCEE’s strategy and will deliver significant benefits for shareholders including: Aligned operating model – strategically aligned business model and complementary focus on electrical services Recurrin
Slide 7: Overview of Trivantage
2 Overview of Trivantage 7
Slide 8: Overview of Trivantage
Overview of Trivantage Trivantage is a leading specialised electrical services provider with an over 50 year track record and longstanding relationships with a range of blue chip clients across multiple sectors Business Overview Geographic Footprint(1) Trivantage is a Victorian headquartered Key O
Slide 9: Divisional overview and capabilities
Divisional overview and capabilities Trivantage provides a diverse range of high-value electrical services including electrical construction, maintenance and manufacturing and installation of specialist switchboards across three divisions Electrical Construction and Maintenance Electronic Security a
Slide 10: Strong management team
Strong management team Trivantage is run by a highly experienced and senior management team, many of whom have longstanding ties to the business and will remain with the business following acquisition Russell Stanley Ben Weston CEO CFO Group CEO and has been Executive Director of S.J. Electric sin
Slide 11: Diversified business mix with service focus
Diversified business mix with service focus Trivantage has strong technical capabilities in delivering business critical services across a range of markets including supermarkets, custodial, datacentres, healthcare and municipal services FY20 Revenue by End Markets FY20 Revenue by Capability Health
Slide 12: Strong market fundamentals
Strong market fundamentals Australia’s largest supermarkets continue to invest in their store networks, with spend on new stores and refurbishments being relatively stable over the past 3 years. As a leading provider to this sector, Trivantage is well placed to benefit from ongoing investment which
Slide 13: Combined Group profile
3 Combined Group profile 13
Slide 14: Increased diversification
Increased diversification A combination of SCEE and Trivantage will create a more balanced and diversified electrical contractor with greater exposure to recurring service and maintenance work and an enhanced national footprint FY20 SCEE stand-alone FY21 Proforma Budget Combined Group Resources Reve
Slide 15: Recurring, services and maintenance work
Recurring, services and maintenance work The transaction presents a transformational change in the breadth and depth of the Group’s recurring, services and maintenance offerings FY20 SCEE stand-alone revenue FY21 Proforma Budget Combined Group Recurring, Services & Recurring, Services & Maintenance
Slide 16: Synergies and cross-selling opportunities
Synergies and cross-selling opportunities The transaction is likely to generate strong synergies and cross-selling opportunities, examples of which are outlined below Opportunity to supply Trivantage switchboards across the SCEE, Datatel and Heyday businesses Potential to offer widened scopes in
Slide 17: Appendix
Appendix 17
Slide 18: Detailed transaction terms
Detailed transaction terms • Acquisition of 100% of Trivantage Holdings Pty Ltd Acquisition • Due diligence finalised • Completion is expected to occur in mid-December 2020 Up to a total of $53.5m payable as follows and on a debt free basis: 1. Deal Completion Initial Cash Consideration $25.0m in ca
Slide 19: 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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