Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Shareholder Meeting (November 2011)
20 slides from Southern Cross Electrical Engineering's shareholder meeting presentation, Nov 28, 2011
Slide 1: AGM Presentation
For personal use only AGM Presentation 28 November 2011 Simon High CEO
Slide 2: Presentation overview
Presentation overview For personal use only • Financial Summary of 2010/11 • Company Achievements 2010/11 • Operational Review • Strategy and Outlook • Summary 1
Slide 3: FY11 financial overview – profit & loss
FY11 financial overview – profit & loss For personal use only 6 months to Full Year H2 FY 11 Highlights • Satisfactory resolution of Pluto ($m) Dec 2010 Jun 2011 Change FY11 • Award of Cadia/Sino/Pueblo Sales Revenue 47.3 54.5 101.8 Viejo/Mining Area C contracts Gross profit 2.3 13.9 16.2 • KJ Johns
Slide 4: To December 2010; H1 FY11 Issues
To December 2010; H1 FY11 Issues For personal use only • Low volume of work-in-hand ($27M) • BD efforts not focussed sufficiently on “short term” prospects • High overheads (retained in anticipation of work volume increase) • Continuing negotiations on financial outcome of Pluto • Volatile and compe
Slide 5: Company Achievements
Company Achievements For personal use only • Board revitalisation • Recruitment of new project management talent • 7th consecutive LTI free year • Full review and implementation of bidding processes, capacity and competency • Greater focus on project management reporting, peer reviews and risk manag
Slide 6: Five lines of business
Five lines of business For personal use only FY11 revenue Minerals and Processing - Australia Oil&Gas Mining 33% Australia 36% Oil & Gas – Australia Infrastructure Infrastructure – Australia 7% Mining Operations International Support 7% 17% Minerals and Processing - International Operational Support
Slide 7: Minerals and Processing - Australia
Minerals and Processing - Australia Iron ore to underpin business over the next 5 years on the West Coast For personal use only and entry into coal projects on the East Coast Major upcoming opportunities • Secured long term framework agreements: Sino Iron RTIO 333mtpa Rio Tinto expansion project
Slide 8: Rio Tinto framework agreement
Rio Tinto framework agreement For personal use only SCEE enters into a preferred contractor agreement with Rio Tinto • Provides SCEE with preferred contractor status for the next five years at Cape Lambert and potential minesites for Electrical & Instrumentation works • Further highlights the streng
Slide 9: Sino Iron
Sino Iron For personal use only SCEE awarded seventh E&I contract for Sino Iron project • Seventh Sino Iron contract awarded to SCEE for Electrical and Instrumentation work • Combination of lump sum and reimbursable contracts • Framework agreement now providing additional orders SCEE Headcount at Si
Slide 10: Oil & Gas - Australia
Oil & Gas - Australia For personal use only Established credibility - in strong contention for CSG projects • Pluto project achieved a successful completion Major upcoming opportunities and satisfactory commercial result – market credibility established East Coast West Coast • Oceanic Industries a
Slide 11: Infrastructure - Australia
Infrastructure - Australia Major upcoming opportunities For personal use only Strong bounce-back Rio Tinto BHP • Substantial growth expected in FY12 off the back Sino Iron of increased mining investment. Current order FMG book for H2FY12 > $25M East Coast coal prospects • KJJ acquisition fully int
Slide 12: Minerals and Processing - International
Minerals and Processing - International For personal use only Focus to be Peru Major upcoming opportunities • Expect activity in Peru to increase Minas Congas • Undertake at least one major project each year Cerro Verde • Pueblo Viejo project tracking in line with Constancia expectations Torromoch
Slide 13: Operational Support and Maintenance
Operational Support and Maintenance For personal use only Building recurring revenues Major upcoming opportunities • Growing a recurrent revenue base to provide a consistent baseline of revenues Expansions of: • Expansion of line of business driven by acquisition RTIO agreement of Oceanic Industri
Slide 14: Systems Map
Systems Map For personal use only TENDERS PROJECTS OPS SUPPORT FINANCE Estimating Scheduling Payroll Procurement (WINEst) (Primavera) (Levesys) Scheduling Document Control Accounts Materials Management (Primavera) (DocTracer) (Levesys) Document Control Reporting General Ledger Material Control (DocT
Slide 15: Strategic objectives
Strategic objectives For personal use only Over the next 3 years, it is management’s objective to organically grow with a core focus on East and West Coast Australian resources projects and focus internationally on opportunities with major clients in Peru. This will enable us to: • Grow revenues to
Slide 16: Orders – lead indicator of revenues
Orders – lead indicator of revenues For personal use only 160 140 Objective 120 Recent Awards New orders New orders 100 Mining Australia FY11 from from revenue existing existing Mining International 80 contracts contracts Operational Support $75m $75m $75m 60 Infrastructure Oil & Gas 40 20 $27m 0 Ju
Slide 17: Employee numbers over the past months
Employee numbers over the past 12 months For personal use only 1000 900 FY 2011 FY 2012 800 700 600 500 Australian Employees Overseas Employees 400 Total Employees 300 200 100 0 16 November 2011
Slide 18: Delivery of strategy – on track
Delivery of strategy – on track For personal use only Strong domestic fundamentals are platform to deliver strategic goals • Focus on organic growth in domestic market: iron ore miners looking to accelerate investment plans LNG and CSG projects ramping up Entry into coal projects • SCEE well p
Slide 19: Summary
Summary For personal use only Growing orders, revenue and margins into FY12 and beyond • Positioned well with a strong order book momentum building with seventh Sino contract Rio Tinto preferred contractor status Significant new project awards • Internal capability strengthened • Exceptional n
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
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