Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Shareholder Meeting (October 2010)
39 slides from Southern Cross Electrical Engineering's shareholder meeting presentation, Oct 29, 2010
Slide 1: Annual General Meeting ASX Release
SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED For personal use only ASX RELEASE 29 October 2010 Manager Company Announcement Office Australian Stock Exchange Level 4, 20 Bridge Street SYDNEY NSW 2000 Annual General Meeting The following material will be presented today at Southern Cross Electrical E
Slide 2: Chairman's script for the AGM
SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED Chairman’s script for the AGM to be held on 29 October 2010 at 10:00 am For personal use only 1. Welcome Chairman: Good morning, ladies and gentlemen. I am Frank Tomasi, the Chairman of Southern Cross Electrical Engineering Limited. It is now 10:00 am. I
Slide 3: Auditors, Voting, Notice of Meeting
4. Auditors Chairman: Mr Robert Gambitta, a partner of KPMG, the company’s auditor, is also present. For personal use only 5. Voting Chairman: Each shareholder who registered today would have received a (blue) voting card. On a show of hands I will ask you to raise the voting card to assist the coun
Slide 4: Financial Reports
Shareholders will then have the opportunity to comment and ask questions. 8. Financial Reports For personal use only Chairman: Before I present my chairman’s address, it is appropriate for me to advise that, under the Corporations Act, the company is obliged to lay before this meeting the last audit
Slide 5: Remuneration Report - Resolution 1
As there are no further questions, we will now move to the first item of business. 9. Remuneration Report For personal use only Resolution 1 Chairman: Under the Corporations Act, listed companies are now required to include as part of their directors’ report a remuneration report, which includes spe
Slide 6: Re-Election of Douglas Fargher
The number of open proxies in favour of the chairman of the meeting at the time of the meeting will be voted in favour – 469,800. I will now put the resolution. For personal use only All those in favour of ordinary Resolution 1, that the remuneration report be adopted, please raise your (blue) votin
Slide 7: Re-Election of John Cooper
For 34,441,160 Against 92,677 Abstain 37,800 Open proxies 469,800 For personal use only The number of open proxies in favour of the chairman of the meeting at the time of the meeting will be voted in favour – 469,800. I’ll now put the motion. Mr Fargher will not vote on this matter. All those in fav
Slide 8: Approval of financial assistance
I have pleasure in moving that Mr Cooper, who retires by rotation under rule 5.1 of the company’s constitution, and being eligible, is re-elected a director of the company. Are there any comments or questions: For personal use only Before I put the motion, I will advise you of the proxy votes. The p
Slide 9: Financial assistance resolution
The details of this resolution are set out in the notice of meeting on pages 5 and 6, so I will not repeat those details. I should tell you that each of the directors recommends the approval of financial assistance. For personal use only I move that the financial assistance provided by Oceanic Indus
Slide 10: Ratification of Oceanic Acquisition Share Issue
13. Ratification of Oceanic Acquisition Share Issue Chairman: We will now move to resolution 5 on the agenda, the ratification of Oceanic acquisition share issue. For personal use only The details of this resolution are set out in the notice of meeting on page 6, so I will not repeat those details.
Slide 11: Renewal of Proportional Takeover Provisions
Against …. I declare the motion carried . 14. Renewal of Proportional Takeover Provisions For personal use only Chairman: We will now move to resolution 6 on the agenda, the renewal of proportional takeover provisions in the Company’s constitution. The details of this resolution are set out in the n
Slide 12: Amendment of the Company's Constitution
I’ll now put the motion. All those in favour of the special resolution to renew the proportional takeover provisions in the Company’s constitution, please raise your (blue) voting card. For personal use only Against …. I declare the motion carried. 15. Amendment of the Company’s Constitution Chairma
Slide 13: Closure
Open proxies 484,600 The number of open proxies in favour of the chairman of the meeting at the time of the meeting will be voted in favour – For personal use only 484,600. I’ll now put the motion. All those in favour of the special resolution to amend the Company’s constitution which relates to the
Slide 14: For personal use only
For personal use only AGM Presentation October 2010
Slide 15: Presentation Overview
Presentation Overview For personal use only • FY10 financial highlights • Market outlook • Strategy/Four pillars • Safety and people • Summary 1
Slide 16: Financial Overview
Financial Overview For personal use only Jun 10 Jun 09 % change Sales revenue $m 93.4 100.3 -6.9% EBITDA $m 18.3 26.9 -32.0% Underlying NPAT $m 11.7 15.5 -24.5% Statutory NPAT $m 8.7 15.5 -43.9% NPAT margin % 12.5 15.4 -19.4% • Australian revenue increased, international revenue decreased, overall g
Slide 17: Market/Outlook
3 For personal use only Market/Outlook
Slide 18: The Project Construction Cycle
The Project Construction Cycle For personal use only 2008 2009 2010 TIME Source: Euroz 4
Slide 19: Major Minerals and Energy Projects (2010 – 2015)
Major Minerals and Energy Projects (2010 – 2015) For personal use only Energy projects Energy projects $52.9bn $6.2bn Iron ore projects Coal projects $14.5bn $2.6bn Port projects $3.3bn Port projects $8.6bn E & I spend ranges between 3% and 5% TIC which represents a market opportunity for SCEE of be
Slide 20: Forecast WA Project Timeline
Forecast WA Project Timeline For personal use only Estimated Expected Expected Engineering Project Description Commenc- Completion 2010 2011 2012 2013 2014 2015 Construction ement Date ($m) Port Projects Port at Cape Preston (iron ore) 400.0 Underway Late 2010 Gorgon shipping facilities (2 loading f
Slide 21: Forecast Queensland Project Timeline
Forecast Queensland Project Timeline For personal use only Estimated Expected Expected Engineering Project Description Commenc- Completion 2010 2011 2012 2013 2014 2015 Construction ement Date ($m) Port Projects Port of Brisbane: new wharves & ground improvement at Berths 11 and 12 300.0 Underway Ea
Slide 22: Forecast SCEE Tracked Peruvian Project Timeline
Forecast SCEE Tracked Peruvian Project Timeline For personal use only Esimated Expected Expected Project Description - Peru Projects Engineering Completion 2010 2011 2012 2013 2014 2015 Commenc-ement Construction ($m) Date Antapaccay 1,470.0 Late 2010 Late 2012 Minas Conga 1,500.0 Current Mid 2012 T
Slide 23: Summary forecast of E&I Construction Spend 2010-2015
Summary forecast of E&I Construction Spend For personal use only 2010 - 2015 Range ($BN) • Australia - WA 2.28 3.80 • Australia - East Coast 0.37 0.61 • International 0.34 0.51 Total 3.00 4.92 9 August 2010
Slide 24: SCEE – an E&I Market Leader
SCEE – an E&I Market Leader For personal use only Core values, Our Customers Our Performance • Proven track record with blue-chip customers over 32 years • Proven ability to set-up and perform in remote locations key strengths Our People Our Experience • A deeply experienced team across all levels o
Slide 25: Major Projects NOT Included
Major Projects NOT Included For personal use only $BN • WGL Browse 25 • Chevron Gorgon 4/5 6/12 • WGL Pluto 2/3 6/12 • BHP Scarborough 15 • Inplex Ichthys 15 • EM – PNG/LNG 12 • QGC Coal Steam Gas 15 • Santos Coal Steam Gas 15 >$100BN Source: In-house estimates of T.I.C. only 11 August 2010
Slide 26: Strategy/Four Pillars
Strategy/Four Pillars For personal use only 12 August 2010
Slide 27: Four Pillars
Four Pillars For personal use only Australian Minerals and Processing Oil & Gas - Australia International Minerals and Processing Infrastructure - Australia 13
Slide 28: Australia Minerals Processing Revenue Contribution
Australia Minerals Processing Revenue Contribution • Major projects included Brockman 4, For personal use only Mesa A and Tiwest • National 2009 NECA Excellence in Mining Australia Safety Award for Cape Lambert port Other upgrade & National 2009 NECA Excellence in Industry Award for Cape Lambert por
Slide 29: Oil & Gas Revenue Contribution
Oil & Gas Revenue Contribution For personal use only • Re-entry into the oil & gas space with award of Pluto off-take and storage E & I contract Oil & Gas Other • Finalising negotiations for Gorgon underground cabling – contract runs 2010 – 2012 with estimated value in the range of $60 - $80m • Safe
Slide 30: Infrastructure Revenue Contribution
Infrastructure Revenue Contribution For personal use only • Major projects completed in FY10 include Brockman 4 and Sino Iron Infrastructure • Acquisition of K.J. Johnson & Co Other increases power line capacity • Leveraging Oceanic’s presence to tender for east coast power line contracts • Large gr
Slide 31: International Minerals Processing Revenue Contribution
International Minerals Processing Revenue Contribution For personal use only • 2010 was substantially lower due to a lack of international projects Mining International • A key area of management focus Other • Contributed approx $30m in 2009 • Pipeline in South America and Africa has improved with a
Slide 32: Safety and People
18 For personal use only Safety and People
Slide 33: Safety Performance
Safety Performance For personal use only SCEE TRCFR FY04 - FY10 50 TRCFR/million manhours 40 30 20 10 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Average Frequency and Incidence Rates 2006-07 to 2008-09 (preliminary) Incidence Rate • 0 LTI’s recorded for last 6 years Frequency Rate Average • 2007 national
Slide 34: National Electrical and Communication Association Awards
National Electrical and Communication Association Awards For personal use only (2010) State OH&S Excellence Category – Pluto (2009) National OH&S Excellence Category – Cape Lambert Port Upgrade (2009) National Industrial Category – Cape Lambert Port Upgrade (2007) National OH&S Excellence Category –
Slide 35: Our Team
Our Team For personal use only Permanent employees 90 Permanent staff retention 90% Total employees 412 Apprentices 25 Indigenous trainees 11 Training and development • Dedicated Training Supervisor and training management systems • Continued investment in hazardous area training • Leadership and me
Slide 36: Indigenous Training and Employment Strategy
Indigenous Training and Employment Strategy For personal use only • November 2009 - Strategy to facilitate sustainable Indigenous employment opportunities within SCEE • 2010 Implemented traineeships – 12 employed • 6 traineeships completed by end of November 2010 • Incorporated into Traineeships are
Slide 37: Summary & Outlook
23 For personal use only Summary & Outlook
Slide 38: Summary & Outlook
Summary & Outlook For personal use only • Post GFC, key clients have re-commenced their project investment plans • Successful re-entry into oil & gas market through Hindles, Oceanic, Pluto and now Gorgon; very strong pipeline of work both west and east coast Australia • Strong pipeline of work for M
Slide 39: Summary & Outlook cont..
Summary & Outlook cont.. For personal use only • Short term opportunities are relatively small and extremely competitively bid • Retention of existing capability and planning for growth now are priorities • Solid growth forecast for 2011 and beyond 25 August 2010
Southern Cross Electrical Engineering — Shareholder Meeting (October 2010) on 6ix