Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Investor Presentation (February 2018)
22 slides from Southern Cross Electrical Engineering's investor presentation, Feb 27, 2018
Slide 1: Half Year ended 31 December 2017 results
Half Year ended 31 December 2017 results 27 February 2018
Slide 2: About SCEE
About SCEE Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, Our Values communication and maintenance services Safety company recognised for our industry leading capabilities It’s in everything we do. Quality Established in 1978 in Western Australia, the Exce
Slide 3: Highlights
Highlights Financial Strategic Outlook Revenue $176.2m, EBITDA $8.6m and an Growth strategy reaffirmed to achieve Order book of over $450m at 31 underlying NPAT* of $4.6m further sector and geographic diversity December 2017 Revenue up 187% on prior corresponding Successful capital raising completed
Slide 4: Half Year financial performance
Half Year financial performance Revenue up 187% on prior corresponding period as first full period in which Heyday results consolidated Gross margins for the half-year were 11.1% compared to 11.9% in the prior corresponding period Turnaround in profitability with EBITDA of $8.6m compared to an EBITD
Slide 5: HY18 – Revenue by sector
HY18 – Revenue by sector Revenue growth in all sectors HY17 HY18 Revenue: $62m Revenue: $176m Commercial Resources Public infrastructure and defence Telecommunications and data centres Industrials, energy & utilities Half Year Results to 31 December 2017 5
Slide 6: Balance sheet
Balance sheet Strong balance sheet throughout the period Cash of $63.3m and negligible debt at 31 December Banking facility includes $10m working capital sub- facility Bank guarantee and surety bond capacity of $60m of which $36.3m used Half Year Results to 31 December 2017 6
Slide 7: Cashflow
Cashflow Cash increased from $40.6m to $63.3m over period $9.25m paid to Heyday vendors in September 2017 $31.9m net cash proceeds from capital raising in November 2017 Capex remained low at $0.9m in period and forecast to remain at these levels Half Year Results to 31 December 2017 7
Slide 8: Health, safety and people
Health, safety and people Workforce currently over 1100 employees LTI free over period Original SCEE business over thirteen years LTI free in Australia and “5 Star Commitment Safety Program” rolled out in period Integration of functions and processes across SCEE businesses ongoing Half Year Results
Slide 9: Leading national diversified electrical contractor
Leading national diversified electrical contractor WA NT QLD RAAF Tindal Amrun Bauxite Project Commercial Wheatstone LNG Rio Tinto Various Arrow MSA Resources BHP Billiton Various NBN construction Sino Iron Carrier networks construction Public Infrastructure and defence Boddington Gold Ergon Energy
Slide 10: Order book by sector
Order book by sector Four out of five of SCEE’s market sectors in or entering growth phase - tendering at high level with over $700m of submitted tenders with clients pending decision. Business development pipeline strong and, combined with submitted tenders, exceeds $2bn HY17 HY18 Order book: $130m
Slide 11: Strategy
Strategy SCEE primarily sees itself as an electrical contractor. From early 2016 we implemented a strategy to add to our historic resources business by diversifying into adjacent and complementary sectors through organic initiatives and the acquisitions of Datatel and Heyday. SCEE now operates acros
Slide 12: Commercial
Commercial New South Wales market is buoyant and worked on a range of large construction and fit-out projects including the Duo Central Park tower development in Chippendale, the Insurance Australia Group office fit-out at Darling Park and at Stockland’s Greenhills Shopping Centre Contract wins in p
Slide 13: Resources
Resources In WA continued to win and perform work for the major iron ore producers and on the Wheatstone LNG project. In Queensland activity ramped up on Rio Tinto’s Amrun Bauxite project Positioning for the upcoming large scale replacement tonnage projects at Rio Tinto Koodaideri, FMG Firetail and
Slide 14: Public infrastructure & defence
Public infrastructure & defence Work continued throughout the period on the University of Canberra Hospital in the ACT and at RAAF Tindal in the Northern Territory Won Westmead General Hospital from Multiplex for over $66m and $20m NorthLink WA Central Section from Great Northern Connect Infrastruct
Slide 15: Telecommunications & data centres
Telecommunications & data centres NBN construction activity continued across Australia and we commenced our first construction projects in the mobile sector Significant construction activity at datacentres included the Airtrunk and Global Switch projects in Sydney Executive management strengthened i
Slide 16: Industrials, energy & utilities
Industrials, energy & utilities SCEE’s first solar power projects were completed in New South Wales Three year Ergon Energy Service Agreement commenced in northern Queensland Current energy sector critical issues expected to present further opportunities Half Year Results to 31 December 2017 16
Slide 17: Conclusion and outlook
Conclusion and outlook • Revenue of $176.2m up 187% on prior corresponding period • Turnaround in profitability with EBITDA of $8.6m • Strong balance sheet with successful capital raising in November • Record cash of $63.3m at 31 December 2017 and negligible debt • Significant awards in period in co
Slide 18: Appendices
Appendices Appendix 1 - Underlying to statutory results reconciliation Appendix 2 - Corporate summary Appendix 3 - Disclaimer Half Year Results to 31st December 2017 18
Slide 19: Appendix 1 – Underlying to statutory results reconciliation
Appendix 1 – Underlying to statutory results reconciliation SCEE’s results are reported under International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Company discloses certain non-IFRS measures that are not prepared in accordance with IFRS an
Slide 20: Appendix 2 - Corporate summary
Appendix 2 - Corporate summary Capital Structure Shareholders at 31 January 2018 ASX Code SXE Shareholder % Share Price (23 February 2018) $0.74 Frank Tomasi 28.2% No. of ordinary shares 231.4m Heyday Vendors 11.9% Market Capitalisation (23 February 2018) $171.2m Colonial First State 7.5% Number of
Slide 21: Appendix 3 - Disclaimer
Appendix 3 - Disclaimer Some of the information contained in this presentation contains “forward- This presentation is for information purposes only. It is not financial product or looking statements” which may not directly or exclusively relate to historical investment advice or a recommendation, o
Slide 22: SCEE
scee SCEE Perth Office (Head Office) 4) Macedonia Street, Naval Base Westem Australia, 6165 E scee@scee.com.au T +61(0)8 9236 8300 F +61(0)8 9410 2504 PERTH | BRISBANE | DARWIN ADELAIDE KARRATHA | NEWMAN TOWNSVILLE CANBERRA | SYDNEY scee.com.au CELEBRATING MES ISBBESOS| bre 24.987 77m abizhed 18 Got
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