25 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 24, 2016
Slide 1: Full Year Results Presentation
For personal use only Full Year Results Presentation Year Ended 30 June 2016 24 August 2016
Slide 2: About SCEE
About SCEE For personal use only Core capabilities Leading provider of specialised electrical, instrumentation and communications services Delivery across Australia and overseas Strong reputation for safety and excellence Established in 1978 and listed on the Australian E&I Construction E&I Infrastr
Slide 3: Diversified across sectors
Diversified across sectors For personal use only Mining Oil & Gas Utilities Industrial Oil & Gas and Industrial, Utilities Telecommunications Commercial, Education Mining and Infrastructure and Data Centres and Health 2
Slide 4: Highlights
Highlights For personal use only FY16 revenue of $207.6m and underlying trading NPAT of $5.4m Financial Strong balance sheet with $41.8m of cash and no debt at 30 June 2016 Fully franked final dividend of 1.35 cps declared (2.7 cps for full year) Successful completion of significant resources constr
Slide 5: Projects - FY16 and current
Projects - FY16 and current For personal use only 4
Slide 6: Full year financial performance
Full year financial performance For personal use only Activity in H1 high from construction FY16* FY15* Change projects at CITIC Pacific Sino Iron, Samsung $m $m % Roy Hill and Tecnicas Reunidas TAN Burrup Revenue 207.6 240.6 (14%) These projects successfully completed and closed out in H2 Gross pro
Slide 7: Revenues by operating division
Revenues by operating division For personal use only Main Contributors: SCEE Infrastructure BHP Billiton Iron Ore Sustaining Capital Western Power Major Works Panel SCEE Construction CITIC Pacific Sino Iron Roy Hill – Samsung & Decmil Tecnicas Reunidas TAN Burrup KSJV – Bechtel Australia
Slide 8: Balance sheet
Balance sheet For personal use only Jun 16 Jun 15 Strong balance sheet throughout the year $m $m Cash of $41.8m and debt free at 30 June Current assets 78.9 92.0 Capex low and expected to remain so for Non current assets 42.7 31.6 foreseeable future Total assets 121.7 123.7 Absorbed cash outflows of
Slide 9: Cashflow
For personal use only Cashflow 8
Slide 10: Financial trends
Financial trends For personal use only Note – FY16 NPAT and FY15 Revenue, Gross Profit and Net Profit After Tax are presented on an underlying 9 trading basis. A detailed reconciliation of statutory to underlying trading results can be found on slide 23.
Slide 11: Dividends
Dividends For personal use only Fully franked final dividend of 1.35 cps declared Record date: 19 September 2016 Payment date: 13 October 2016 Interim dividend of 1.35 cps already paid 14 April 2016 Continue to maintain balance between delivering returns to shareholders and retaining capital for gro
Slide 12: Health, safety and people
Health, safety and people For personal use only Performed our operations in the period without a lost time injury Twelve years LTI free in Australia Group employee numbers over 600 at year end Strong commitment to apprenticeship program and indigenous participation 11
Slide 13: Order book
Order book For personal use only Order book at 30 June 2016 of $24m with a further $16m won so far in H1 and $15m near term growth visible on existing reimbursable contracts Above excludes any estimate of future work under framework agreements 12
Slide 14: Outlook and market
Outlook and market For personal use only Entered the year at relatively low activity levels as a result of successfully completing large scale iron ore construction projects in H2 of FY16 However recently secured a number of strategically significant contracts providing greater visibility of activit
Slide 15: Strategy
Strategy For personal use only SCEE primarily sees itself as an electrical contractor. Our strategy is to: • Transition to a sustainable resources business through exposure to sustaining capital and maintenance markets; and • Grow through expansion into adjacent and complementary sectors - identifie
Slide 16: Resources
Resources For personal use only We will leverage our client relationships to transition to a sustainable resources business via exposure to sustaining capital and maintenance markets: • Regional facilities opened to more closely service clients • Widening our services offerings – to include small-sc
Slide 17: International
International For personal use only SCEE has performed numerous projects in seventeen countries. We are evaluating or tendering a number of overseas opportunities including: • Middle East – oil & gas infrastructure projects • East Africa – LNG developments • Peru – through our Peruvian subsidiary, C
Slide 18: Utilities, industrial and infrastructure
Utilities, industrial and infrastructure For personal use only Completed projects for industrial clients including SIMS Metal and at TAN Burrup SCEE Infrastructure’s overhead powerline business continuing to perform various works for mining clients in the Pilbara Now also executing transmission over
Slide 19: Datatel acquisition
Datatel acquisition For personal use only Datatel Communications Pty Ltd acquired on 29 June Established in 1998 and built a significant presence in the communications and telecommunications sectors in WA with over 180 staff Datatel has relationships with tier one lead contractors in the delivery of
Slide 20: Telecommunications
Telecommunications For personal use only SCEE has identified Telecommunications as an expansion sector with growth driven by consumer demand and technological innovation Combining Datatel’s relationships, systems and experience with SCEE’s skills in project management, mobilisation, remote working a
Slide 21: Commercial, education and health
Commercial, education and health For personal use only Datatel’s commercial team of more than 40 electricians, technicians and apprentices provides SCEE a presence in sectors where it has not historically operated Datatel has a significant client base in the education and health sectors in both metr
Slide 22: Cost control and efficiency
Cost control and efficiency For personal use only In a cost focussed market a strong emphasis on ensuring an efficient operating structure Significant restructuring exercise performed in late FY15 and further cost saving initiatives executed in FY16 Service Centre opened offshore in H2 to provide mo
Slide 23: Conclusion
Conclusion For personal use only Strong performance in difficult market conditions with underlying trading NPAT of $5.4m up 29% on FY15 Balance sheet remained healthy with $41.8m cash and no debt at 30 June Secured a number of strategically significant contract awards Transitioning from construction
Slide 24: Non-IFRS financial information
Non-IFRS financial information For personal use only 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 and there
Slide 25: 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,