Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Investor Presentation (February 2011)
27 slides from Southern Cross Electrical Engineering's investor presentation, Feb 21, 2011
Slide 1: Investor Presentation February 2011
For personal use only Investor Presentation February 2011
Slide 2: Presentation Overview
Presentation Overview For personal use only • December financial overview • Strategy / Opportunity • Lines of business • Safety and people • Summary 1
Slide 3: Financial Overview
Financial Overview For personal use only ($ millions) Dec 10 Dec 09 Change Sales revenue 47.3 39.2 8.1 Gross Profit 2.3 13.7 (11.4) Overheads (7.6) (6.3) (1.3) EBITDA (5.3) 7.4 (12.7) Business combination expenses (0.1) (0.8) 0.7 D&A (0.8) (1.6) 0.8 Net interest (0.4) 0.1 (0.5) Tax 1.8 (1.8) 3.6 NPA
Slide 4: Gross Profit Overview
Gross Profit Overview For personal use only ($ millions) Pluto Other Total Revenue 21.4 25.9 47.3 Cost of sales (24.0) (21.0) (45.0) Gross profit (2.6) 4.9 2.3 Gross margin (12.2%) 18.9% 4.9% • Pluto has been impacted by access issues which adversely affected efficiency. Contract has moved to cost p
Slide 5: Overhead Cost Overview
Overhead Cost Overview For personal use only ($ millions) Dec 10 Dec 09 Change Overhead expenses (7.6) (6.3) (1.3) Variance represented by: Change in SCEE (0.0) Full six months of Oceanic (0.8) Full six months of KJJ (0.3) Final KJJ incentive payment (0.2) Total (1.3) • SCEE overheads have remained
Slide 6: Strategy / Opportunity
Strategy / Opportunity For personal use only 5
Slide 7: 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 $8.6bn E & I spend ranges between 3% and 5% TIC which represents a market opportunity for SCEE of be
Slide 8: Forecast WA Project Timeline
Forecast WA Project Timeline For personal use only Estimated Expected Expected Engineering Project Description Commenc- Completion 2010 2011 2012 2013 2014 2015 Construction ement Date ($m) Port Projects Port at Cape Preston (iron ore) 400.0 Underway Late 2010 Gorgon shipping facilities (2 loading f
Slide 9: 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 ($m) Port Projects Port of Brisbane: new wharves & ground improvement at Berths 11 and 12 300.0 Underway Ea
Slide 10: Forecast SCEE Tracked Peruvian Project Timeline
Forecast SCEE Tracked Peruvian Project Timeline For personal use only Esimated Expected Expected Project Description - Peru Projects Engineering Commenc- Completion 2010 2011 2012 2013 2014 2015 Construction ($m) ement Date Antapaccay 1,470.0 Late 2010 Late 2012 Minas Conga 1,500.0 Current Mid 2012
Slide 11: Key Points
Key Points For personal use only • SCEE focus is Peru and parts of Africa (Ghana and Tanzania) • Most projects are being designed and managed by EPCM’s in Chile. • SCEE has operated successfully from Lima, Peru for the past 15 years. 10 August 2010
Slide 12: Forecast E&I Construction Spend 2010 - 2015
Forecast E&I Construction Spend 2010 - 2015 For personal use only Labour Labour & ($ billions) Only Materials Australia - WA 2.3 3.8 Australia – East Coast 0.4 0.6 International 0.3 0.5 Total 3.0 4.9 • Expressions of interest/direct negotiations have already commenced with several project owners see
Slide 13: The Project Construction Cycle
The Project Construction Cycle For personal use only Source: Euroz E & I (SCEE) industry is here Construction industry is here 12
Slide 14: 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 15: Lines of Business
Lines of Business For personal use only Australian Minerals and Processing Oil & Gas - Australia International Minerals and Processing Infrastructure - Australia 14
Slide 16: Australia Minerals Processing
Australia Minerals Processing • Major projects included Mt Cattlin For personal use only lithium project, Mt Keith talc redesign project and Rio Tinto ops & mtce • Awarded Cadia above ground E & I installation contract with work beginning late February 2011 • Expanding operations and maintenance ser
Slide 17: Oil & Gas
Oil & Gas For personal use only • Re-entry into the oil & gas space with award of Pluto off-take and storage E & I contract • Gorgon underground cabling negotiations are ongoing – contract runs to 2012 • First QGC upstream LNG bid submitted • Safety performance recognised by NECA with the 2010 WA NE
Slide 18: Major Upcoming Oil & Gas Projects
Major Upcoming Oil & Gas Projects For personal use only • Major upcoming oil & gas projects include: – Gorgon on-shore (Trains 1/2 & 3) * – CSG east coast – Wheatstone – Macedon * – Browse * – Gorgon 4/5 * – Pluto 2/3 * – Scarborough * – Ichthys * – PNG LNG * Not included in our previous project for
Slide 19: Infrastructure
Infrastructure For personal use only • Major projects completed in FY10 include Brockman 4 and Sino Iron • Tender awarded by Rio Tinto in January 2011 • Likely to benefit from advanced capacity discussions with major mining companies • Large greenfield minerals and oil & gas projects will see strong
Slide 20: International Minerals Processing
International Minerals Processing For personal use only • Contracts won in the Dominican Republic and Peru with work commencing in June 2011 half • Power line tender awarded in February 2011 • Pipeline in South America and Africa has improved with award decisions expected over coming months • Major
Slide 21: Safety and People
20 For personal use only Safety and People
Slide 22: 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 23: Our Team
Our Team For personal use only Permanent employees 90 Permanent staff retention 90% Total employees 397 Apprentices 30 Indigenous trainees 12 Organisational development • Appointed Simon High as MD with over 30 years engineering and construction experience • Recruited a number of key people with sub
Slide 24: Indigenous Training and Employment
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 25: Summary & Outlook
24 For personal use only Summary & Outlook
Slide 26: Summary & Outlook
Summary & Outlook For personal use only • New MD with over 30 years experience in the engineering and construction industry • Recruited a number of key people with substantial oil & gas experience • December results impacted by Pluto and competitive pricing • Expect to generate a profit in the secon
Slide 27: 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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