Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Euroz Securities Small Cap Conference (March 2009)
20 slides from Southern Cross Electrical Engineering's conference presentation, Mar 10, 2009
Slide 1: Investor Presentation cover letter to ASX
SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED For personal use only 10 March 2009 By Facsimile: 1300 300 021 Manager Companies Company Announcements Office Australian Stock Exchange Limited Level 4, Stock Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir Investor Presentation by Southern Cro
Slide 2: Euroz Securities Small Cap Conference
For personal use only Euroz Securities Small Cap Conference Stephen Pearce Managing Director Tuesday, 10 March 2009
Slide 3: Agenda
Agenda For personal use only • Summary of FY09 first half results • FY09 full year outlook • FY10 Outlook • Strategic plan l and d ffuture d direction 1
Slide 4: Summary of first half results
Summary of first half results For personal use only • All projects in line with expectations • 0 LTI’s • Revenue up p 16% to $57.7m • EBITDA up 11% to $10.3m • EPS up 5% to 6.0cps • Interim dividend 2.0cpsff (FY08 2.0cpsff) • Generated $4.6m cash from operating activities • Strong balance sheet with
Slide 5: FY09 Outlook
FY09 Outlook For personal use only • Selected as preferred contractor for early phase electrical work at Cape C P Preston • Pending award and commencement of above, SXE’s revenue is expected p to exceed $94m $ ((FY08: $ $84m)) • Margins are tracking as expected • Full year NPAT expected to be approx
Slide 6: FY10 Outlook
FY10 Outlook For personal use only • Mining capex has wound back but there are still a number of quality li projects j proceeding di • Substantial amount of work expected from oil and gas sector • Current tender book exceeds $300m • FY10 tender awards expected in FY09 fourth quarter • Commenced earl
Slide 7: Strategic Plan and Future Direction
For personal use only Strategic Plan and Future Direction 5
Slide 8: Who we are
Who we are For personal use only “SCEE is a • Founded F d d ini 1978 SCEE Five Year Revenue leading 100 • Listed on ASX in November 2007 Millions provider of large 80 scale specialised • Progressively taken on larger jobs 60 electrical electrical, 40 control and • Over 400 people operating in 20 ins
Slide 9: Core Values, Key Strengths
Core Values, Key Strengths For personal use only “SCEE is highly g y Our Reputation regarded for • To complete a project safely, on time and with the highest level of quality our ability to • To perform ethically and not be litigious effectively undertake and deliver Our People successful • We have
Slide 10: SCEE's Market Position
SCEE’s Market Position For personal use only Concept/Pre-feas Design Engineering Construction Commission Maintenance • Lycopodium • Lycopodium • Lycopodium • SCEE • ABB • Positron • Clough • Clough • Clough • Downer EDi Engineering • Clough • KBR • KBR • GRD • O’Donnell • Powertech • O’Donnell • SKM
Slide 11: Building Blocks of SCEE
Building Blocks off SCEE For personal use only • Create the right organisation structure to maintain SCEE’s SCEE s Structure strengths • Support growth and quality • Enhance the business development process Capability • Key appointment of GM Business Development is complete • GM Corporate Services i
Slide 12: Strategic Objectives
Strategic Objectives For personal use only Strategic g Objectives j g Thrusts Strategic Grow Electrical Expand our capability Organically enter new segments and Engineering SCEE Growth Strategy geographies Business Enter new market segments and geographies Acquire new capabilities Diversif
Slide 13: Shareholder Return Levers
Shareholder Return Levers For personal use only Increase Reduce revenues costs Profitability Increase Profitabilityy Cost Of Capital Find growth Existing Business opportunities Reduce cost of that return above capital by the cost of reducing capital financial or operating risk Total Assets Safety an
Slide 14: SCEE's Future Structure
FutureMarket SCEE’s Structure Position For personal use only SCEE Ltd Mining Mining Infrastructure Oil & Gas Acquisition 1 Acquisition 2 Australia International • Bulk material • Bulk material • Port facilities • Refinery • Expanded • Expanded handling handling shutdowns capability capability • Harb
Slide 15: Pre Requisites for Acquisitions
Pre Requisites for f Acquisitions For personal use only Our proposed acquisition moves…. Leverage the core capabilities of Provide clear economic benefits to …while not distracting attention core business … target customers … from core business • EEnhance h our core electrical l ti l • SCEE value pr
Slide 16: Capabilities, Target Sectors and Geographies
Capabilities Target Sectors For personal use only Civil Standby Power Residential / Domestic Structural Commercial Mechanical Piping Water Plumbing / Scaffolding Fire & Security Telecomms. HVAC I f t t Infrastructure Telecomms Telecomms. Elec. Installation on Camps Forward Backward Oil & Gas Integra
Slide 17: Driving Shareholder Return
Driving Shareholder Return For personal use only • SCEE is returning to the Oil & Gas sector Increase • Targeting more than one overseas project per year Profitability • Greater revenue scale improves overhead efficiency Growth • SCEE has $24.4m cash and virtually no debt Opportunities • Acquisition
Slide 18: Potential Revenue Streams
Potential Revenue Streams For personal use only Existing Domestic Oil & Gas International M&A Future Business Mining Mining Potential 16
Slide 19: Conclusion
Conclusion For personal use only SCEE s ability to create shareholder value will be leveraged from: SCEE’s • Its reputation for delivering on its promises to clients for over 30 years • Its exceptional safety record • Its balance sheet which places it in a strong position to undertake acquisitions o
Slide 20: Important Notice
Important Notice For personal use only This presentation has been prepared by Southern Cross Electrical Engineering Limited (“the Company”) and provides background g information about the Company’s y activities. The information is current at the date of this presentation. The information is a summar
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