22 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 31, 2022
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year Ended 30 June 2022 Full Year Results Presentation FY22 11 31 August 2022
Slide 2: Our businesses
Our businesses Southern Cross Electrical Engineering Limited (“SCEE Group”) is a national electrical, instrumentation, communications and maintenance services company established in 1978 and listed in 2007 (ASX:SXE). The acquisitions of Datatel in 2016, Heyday in 2017 and the Trivantage Group (S.J.
Slide 3: Investment proposition
Investment proposition Blue-chip client base Diversified markets Recurring earnings growth (Rio, BHP, Multiplex, CPB, Woolworths, Coles) (Resources, Infrastructure, Commercial) (Services, Maintenance, Frameworks) Full Year Results Presentation FY22 Decarbonisation theme M&A opportunities Strong divi
Slide 4: Financial highlights
Financial highlights Record Revenue $553.3m (FY21: $370.2m) up 49.5% on prior year Record EBITDA $35.3m (FY21: $29.6m) up 19.3% on prior year * Record EBIT $26.7m (FY21: $22.3m) up 19.7% on prior year * NPAT $15.3m (FY21: $13.8m) up 10.9% on prior year Result includes $2.2m amortisation and providin
Slide 5: Operational highlights
Operational highlights Resources SCEE’s largest sector for first time since FY18 Driven particularly by large MARBL Kemerton Lithium Plant and Rio Tinto Gudai Darri projects Won WA NECA “Industrial Large Project Award 2022” for Rio Tinto Gudai Darri project Subdued Sydney FY22 commercial market from
Slide 6: Outlook
Outlook Forecasting FY23 revenue similar as large resources projects run off and not immediately replaced Targeting FY23 EBITDA in range $36m-$38m as project mix expected to be more profitable Resources sector has long tail of smaller opportunities in many commodities for SCEE Electrical Commercial
Slide 7: Coronavirus, weather, inflation and workforce
Coronavirus, weather, inflation and workforce Coronavirus Inflation East Coast lockdowns resulted in total Sydney construction Group has and is managing inflationary pressures: shutdown for part of July and later shutdowns in Victoria and subsequent isolation requirements further disrupted • Short t
Slide 8: Third record half of revenue
Third record half of revenue Revenue of $553.3m (FY21: $370.2m) a record for the Summary financials: group and each half successively broke previous record half FY22 FY21 % Revenue growth in WA resources sector more than offset $m $m subdued activity levels in parts of East Coast business Revenue 55
Slide 9: Revenue split by sector
Revenue split by sector All three sectors up on prior year notwithstanding commercial slowdown in Sydney, as offset by full contribution from Trivantage Resources up 119% as SCEE Electrical’s Kemerton and Gudai Darri at full activity FY21 FY22 $370m $553m $167m $129m $165m Commercial Infrastructure
Slide 10: Revenue split by geography
Revenue split by geography Revenue in WA more than doubled driven by MARBL Kemerton, Rio Tinto Gudai Darri and BHP Villages Security projects Activity in NSW fell back as impacted by coronavirus and weather events FY21 FY22 $370m $553m $145m $140m $161m WA NSW & ACT QLD & NT VIC, SA & TAS Full Year
Slide 11: Strong balance sheet and debt free
Strong balance sheet and debt free Cash increased to $53.1m (FY21: $51.0m) up 4.1% on Balance sheet summary: prior year and remain debt free $62.3m of bank guarantees and surety bonds on issue at 30 June out of a total group capacity of $100m leaving a Jun 22 Jun 21 headroom of $37.7m $m $m Franking
Slide 12: Cashflow
Cashflow Cash of $53.1m at 30 June pleasing as in FY22 funded further $10.0m for acquisition of Trivantage and paid $12.7m of dividends, and at very high levels of activity in June with resulting working capital requirements Will be funding the penultimate Trivantage acquisition payment of $5.7m in
Slide 13: Record year-end order book
Record year-end order book Order book ended up 31% on previous year despite a record year of revenue Particularly driven by projects in and around Sydney Metro Pitt Street Station and at Western Sydney International Airport 30 June 2021 30 June 2022 $430m $565m $112m $156m $219m $142m Commercial Inf
Slide 14: Current projects
Current projects MARBL JV Kemerton Lithium Multiplex Western Sydney Processing Plant – SCEE Electrical International Airport - Heyday Over $100m Over $100m Rio Tinto Gudai-Darri Iron Ore CPB Sydney Metro Pitt Street Mine – SCEE Electrical Station and Towers - Heyday Over $100m Over $70m Full Year Re
Slide 15: Strategy
Strategy SCEE Group primarily sees itself as an electrical contractor diversified across the resources, commercial and infrastructure sectors Our growth strategy continues to be to deepen our presence in those sectors and broaden our geographic diversity through expanding our core competencies and a
Slide 16: Resources sector
Resources sector Resources activity more than doubled on prior year and SCEE’s largest sector for Resources revenue: first time since FY18 FY22 FY21 Primarily driven by high levels of activity at MARBL Kemerton Lithium Plant, Rio Tinto Gudai-Darri and BHP Villages Security Project and also general w
Slide 17: Infrastructure sector
Infrastructure sector Wide sector for SCEE, includes transport – road rail and airports, health – hospitals and aged care, utilities – electrical, telco and water, Infrastructure revenue: education – universities and schools, ports, defence, prisons, other government facilities and datacentres FY22
Slide 18: Commercial sector
Commercial sector Commercial activity falls in two main parts: Commercial revenue: • Heyday CBD towers and hotels, retail, and mixed use developments FY22 FY21 $m $m • Trivantage’s supermarket electrical services and maintenance business Revenue 166.9 164.7 Sydney building activity was subdued with
Slide 19: Conclusion
Conclusion Revenue $553.3m (FY21: $370.2m) up 49.5% on prior year Record EBITDA $35.3m (FY21: $29.6m) up 19.3% on prior year * Record EBIT $26.7m (FY21: $22.3m) up 19.7% on prior year * Cash $53.1m (FY21: $51.0m) up 4.1% on prior year and no debt Record year-end order book $565m (FY21: $430m) up 31.
Slide 20: Corporate summary
Corporate summary Capital Structure Shareholders at 22 August 2022 ASX Code SXE Thorney Investments 16.0% Share Price (29 August 2022) 71.5c First Sentier Investors 9.1% No. of ordinary shares 260.0m Other Institutions in Top 30 Shareholders 12.9% Market Capitalisation (29 August 2022) $185.9m Frank
Slide 21: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation SCEE’s results are reported under FY22 FY21 International Financial Reporting Standards (IFRS). SCEE discloses certain non-IFRS $m $m measures that are not prepared in Contract revenue 553.3 370.2 accordance with IFRS. The non-IFRS measures should only be considered in
Slide 22: Disclaimer
Disclaimer 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 the current intentions, plans, expectations, assumptions and beliefs of Southern Cross El