Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Euroz Hartleys Mining Services Conference 2021
21 slides from Southern Cross Electrical Engineering's conference presentation, Sep 9, 2021
Slide 1: Investor Presentation - Euroz Hartleys Mining Services Conference
For personal use only Investor Presentation Euroz Hartleys Mining Services Conference 1 Euroz Hartleys Mining Services Conference 2021 9 September 2021
Slide 2: About SCEE
About SCEE Electrical Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, communication Contractor For personal use only and maintenance services company recognised for our industry leading capabilities Diversification Established in 1978 in WA, and primarily s
Slide 3: Highlights
Highlights Financial Operational Outlook For personal use only Full year revenue of $370.2m down 10.8% Work mix changed as resources activity Targeting FY22 revenues of circa $500m on prior year increased and transport infrastructure and EBITDA in range of $29m-$33m - Although revenue fell short of
Slide 4: H2 record half of revenue
H2 record half of revenue Second half revenue of $234.8m, up 73.4% on first half Summary financials: For personal use only Workforce doubled in FY21 including recruiting net 400 further employees in second half to meet client requirements to ramp up on FY21 FY20 Chg. % large-scale mining projects $m
Slide 5: Coronavirus impacts
Coronavirus impacts FY21 Post-FY21 For personal use only Construction continued to be designated an essential Post 30 June lockdowns on East Coast resulted in Sydney service in all states throughout FY21 construction shutdown for part of July Operations generally continued as planned but Costs minim
Slide 6: Revenues by sector
Revenues by sector Resources activity more than doubled as major projects ramped up – FY21 $130m vs. FY20 $46m For personal use only Commercial activity remained steady – FY21 $165m vs. FY20 $173m Infrastructure reduced as large transport infrastructure projects completed in prior year – FY21 $76m v
Slide 7: Strong balance sheet and debt free
Strong balance sheet and debt free Cash decreased slightly in year by $4.3m to $51.0m at 30 June 2021 Balance sheet summary: (30 June 2020: $55.3m) despite funding Trivantage acquisition with For personal use only net cash outflow of $22.2m and $7.2m FY20 final dividend Jun 21 Jun 20 Remain debt fre
Slide 8: Good cash collection
Good cash collection Cash result of $51.0m particularly pleasing given high levels of activity at year-end have significant working capital requirements For personal use only Trivantage meeting deferred consideration earn-out targets and Board declaring a 4.0 cents per share FY21 final dividend mean
Slide 9: Order book
Order book Order book of $430m includes over $350m of work secured for FY22 For personal use only Balanced across the three sectors Jun 20 Jun 21 $440m $430m $110m $142m $156m Commercial Infrastructure Resources $200m $130m $132m 9 Euroz Hartleys Mining Services Conference 2021 9
Slide 10: Strategy and sector outlooks
For personal use only Strategy and sector outlooks 10
Slide 11: Leading national diversified electrical contractor
Leading national diversified electrical contractor WA NT QLD For personal use only MARBL JV Kemerton Lithium Plant Rio Tinto Gove Arrow MSA Rio Tinto Gudai-Darri ERA Ranger Mine MSA Major supermarkets and retail Rio Tinto - Cape Lambert, Tom Price, Energy Queensland Services Agreement Paraburdoo Wat
Slide 12: Strategy
Strategy SCEE primarily sees itself as an electrical contractor diversified across For personal use only the resources, commercial and infrastructure sectors Our growth strategy continues to be to deepen our presence in those sectors and broaden our geographic diversity This includes particularly ta
Slide 13: Resources sector
Resources sector Resources activity more than doubled on prior year as major mining projects ramped up – added net 400 workers in period to service For personal use only projects Significant revenue contributors included Albemarle Kemerton Lithium Plant, Rio Tinto Gudai-Darri and Rio Tinto Gove – so
Slide 14: Infrastructure sector
Infrastructure sector Wide sector for SCEE, primarily driven by governmental expenditure although some areas have varying levels of private investment For personal use only Includes transport, road, rail, utilities, defence, and telco, but also “softer” sectors such as health and aged care, educatio
Slide 15: Commercial sector
Commercial sector Commercial remained largest sector by revenue in FY21 For personal use only The Sydney CBD office construction market is quieter than in recent times but there are still significant targets being tendered there by Heyday Commercial developments around Sydney transport infrastructur
Slide 16: Trivantage
Trivantage Trivantage acquisition exceeding expectations with all businesses For personal use only outperforming forecasts and earn-out targets The acquisition has substantially increased SCEE’s exposure to recurring and services maintenance style work In addition to the supermarkets sector, since a
Slide 17: Decarbonisation
Decarbonisation AFR, 1 September 2021: “…investment required to decarbonise the planet is estimated to be more than…$41 trillion” For personal use only Decarbonisation of resources sector commencing with renewable power projects under development Initiatives under way by multiple mining companies in
Slide 18: Conclusion and outlook
Conclusion and outlook • Record half of revenue up 73.4% on first half For personal use only • Trivantage acquisition exceeding expectations with all businesses outperforming forecasts and earn-out targets • Profits ahead of target with EBITDA* of $29.6m up 37.0% and NPAT of $13.8m up 26.6% on prior
Slide 19: Corporate summary
Corporate summary For personal use only Capital Structure Shareholders at 6 September 2021 ASX Code SXE Thorney Investments 17.2% Share Price (6 September 2021) 62.5c First Sentier Investors 8.9% No. of ordinary shares 256.7m Perennial Value Management 6.0% Market Capitalisation (6 September 2021) $
Slide 20: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation SCEE’s results are reported under International FY21 FY20 For personal use only Financial Reporting Standards (IFRS). SCEE discloses certain non-IFRS measures that are not $m $m prepared in accordance with IFRS. The non-IFRS Contract revenue 370.2 415.1 measures should
Slide 21: Disclaimer
Disclaimer Some of the information contained in this presentation given in this presentation is given for illustrative purposes only For personal use 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
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