Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Shareholder Meeting (October 2013)
29 slides from Southern Cross Electrical Engineering's shareholder meeting presentation, Oct 28, 2013
Slide 1: 2013 AGM Presentation
For personal use only 2013 AGM Presentation Simon High – Managing Director /CEO 28 October 2013
Slide 2: About SCEE
About SCEE For personal use only Emerging Tier One provider of specialised electrical and instrumentation services Deliver life-of-project services to large-scale resource projects across Australia and overseas Strong reputation for safety and excellence Established in 1978 and listed on the Austral
Slide 3: Project life cycle support
Project life cycle support For personal use only Early phase capex Capex Opex 2
Slide 4: FY13 projects
For personal use only FY13 projects 3
Slide 5: Rio Tinto Cape Lambert Port B Phase A
Rio Tinto Cape Lambert Port B Phase A For personal use only E&I installation works for Phase A of Rio Tinto’s new Port B at Cape Lambert Largest contract in SCEE’s history at over $100m Manning peaked at over 500 4
Slide 6: Anglogold Ashanti Tropicana Gold
Anglogold Ashanti Tropicana Gold For personal use only Electrical, instrumentation, communications and process control plant infrastructure at the Tropicana gold mine 330km north east of Kalgoorlie Contract award in excess of $40m Manning peaked at 210 5
Slide 7: MCC Sino Iron
MCC Sino Iron For personal use only Continued to perform work for MCC Mining on the Sino Iron project at Cape Preston Work to date has focussed on Trains 1 and 2 and the conveyors to the primary crusher 6
Slide 8: Rio Tinto Yandi Sustaining Project
Rio Tinto Yandi Sustaining Project For personal use only Installation of 33kV overhead lines that provide power to Rio Tinto’s Yandi mine facilities Largest contract performed by SCEE Infrastructure with an award value across both phases in excess of $38m 7
Slide 9: Rio Tinto Cape Lambert 33kV Lines
Rio Tinto Cape Lambert 33kV Lines For personal use only Supply and installation of 33kV overhead lines at Rio Tinto’s Cape Lambert Port B Project Successfully completed during the year 8
Slide 10: Rio Tinto Operational Support
Rio Tinto Operational Support For personal use only National framework agreement with Rio Tinto to provide operational and support services across Australia Includes both planned and unplanned maintenance on brownfield facilities 9
Slide 11: FY13 Highlights
FY13 Highlights For personal use only Best financial result in SCEE’s 35 year history Revenue up 26% to $278.0m NPAT up 27% to $17.3m Strong balance sheet with $40.9m of cash Fully franked dividend up 20% to 2.70 cps Significant investment in systems and assets KSJV formed to target LNG construction
Slide 12: Financial trends
For personal use only Financial trends 11
Slide 13: Financial results
Financial results For personal use only 2011 2012 2013 Revenue increase of 26% driven by $m $m $m key project wins Revenue 101.8 220.0 278.0 Operating at annualised turnover of over $400m in final quarter Gross profit 16.2 43.4 61.3 Gross margin (%) 15.9 19.7 22.1 Overhead base grown to support this
Slide 14: Revenues by operating division
Revenues by operating division For personal use only SCEE Infrastructure Revenue ($m) Main contributors: Rio Tinto Coastal Waters Rio Tinto Yandi Expansion 22.5 Rio Tinto Cape Lambert 33kV 69.7 SCEE Construction Main contributors: Rio Tinto Cape Lambert Port B AngloGold Ashanti Tropicana 1
Slide 15: Increasing shareholder returns
Increasing shareholder returns For personal use only Earnings per share up 26% to 10.74 cents Fully franked dividend up 20% to 2.70 cents per share paid on 17 October 2013 Franking account balance at 30 June 2013 of $9.3m FY13 dividend strikes a balance between providing returns to shareholders and
Slide 16: Investment in systems and assets
Investment in systems and assets For personal use only Over $20m invested in systems and fixed assets in FY13 with over $30m invested over past two years Expansion and renewal of plant and equipment fleet Benefitting financially from reduction in hired equipment Progressed systems upgrades and ERP w
Slide 17: Health and safety
Health and safety For personal use only Lost Time Incident free in the year (1.6 million man hours) Ninth consecutive year LTI free in Australia Reflects the emphasis placed on safety from the Board through to our project teams We place a priority on creating a proactive safety culture across the wh
Slide 18: Training
Training For personal use only SCEE’s dedicated training centre expanded during the year Cost effective and flexible training schedules to ensure efficient mobilisation of project teams Successfully delivered more than 2,000 individual training events over a four month period as activity ramped up a
Slide 19: Growth of our people
Growth of our people For personal use only Employee numbers peaked at over 1,200 in June 2013 Indicative of high levels of activity at year end Recruitment handled by in-house capability Apprenticeship program continued to grow with a record 78 apprentices in FY13 Continued commitment to indigenous
Slide 20: Award winning apprentices
Award winning apprentices For personal use only SCEE apprentices won the 2013 WA NECA Excellence and Apprentices Awards in the 1st, 2nd and 4th year apprentice categories 19
Slide 21: Client recognition
Client recognition For personal use only Rio Tinto Iron Ore Supplier Recognition Program Winner of 2012 Construction Category Recognition of the significant value added by SCEE Demonstrates SCEE’s ongoing commitment to outstanding levels of client service 20
Slide 22: Outlook
For personal use only Outlook 21
Slide 23: Order book
Order book For personal use only Order book at 30 June 2013 of $91.5m and at 30 September 2013 of $64.0m. Revenue of $70m for the three months to 30 September with Orders approximately $42.5m of new orders added from secured in Australia Pacific LNG, framework agreements and Oct 13 growth of existin
Slide 24: Changing operating environment
Changing operating environment For personal use only Commodity price weakness has led to some high profile project deferrals and cancellations Clients becoming more commercially focussed and looking to transfer risk Increased competition to win work Anticipate changes to client contracting model But
Slide 25: Exposure to five sectors
Exposure to five sectors For personal use only LNG CSG Iron ore Minerals & metals Coal 24
Slide 26: Growing recurring revenues
Growing recurring revenues For personal use only Growth of services business fundamental to long term growth SCEE Services brand established from 1 July 2012 Achieved significant revenue growth during the year Making good progress in growth of recurring iron ore work with framework agreements in pla
Slide 27: Conclusion
Conclusion For personal use only Record result for the second consecutive year Entered FY14 operating at historically high activity levels Significant progress towards achieving Tier One goal KSJV positioned to capitalise on unprecedented levels of E&I work and secured first award on Australia Pacif
Slide 28: 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 29: 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,
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