Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Goldman Sachs Emerging Companies Conference 2013
25 slides from Southern Cross Electrical Engineering's conference presentation, May 15, 2013
Slide 1: Goldman Sachs Emerging Companies Conference
For personal use only Goldman Sachs Emerging Companies Conference 15 May 2013
Slide 2: Powering Australia's resources industry
Powering Australia’s resources industry 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 Strong reputation for safety and excellence Established in 1978 and liste
Slide 3: Three operating divisions provide clients project life cycle support
Three operating divisions provide clients project life cycle support For personal use only 3
Slide 4: Exposure to five sectors
Exposure to five sectors For personal use only Iron ore CSG LNG Minerals & metals Coal 4
Slide 5: Contract awards – FY13
Contract awards – FY13 For personal use only Rio Tinto Cape Lambert Phase A Largest contract in Company’s history at over $100m Awarded under existing framework agreement AngloGold Ashanti/Independence Tropicana Gold Project Contract value over $40m Rio Tinto Yandi Expansion Project Contract
Slide 6: Projects – FY13
Projects – FY13 Rio Tinto For personal use only Rio Tinto Services Rio Tinto Yandi CLB Phase A Sustaining Project TSJV Lake Rio Tinto Cape Vermont Lambert 33kV Lines Rockhampton MCC Sino Iron BP Services Rio Tinto Coastal Waters BHP Iron Ore Sustaining Capital Silver Lake Tuckabianna Gold Project An
Slide 7: HY financial results
HY financial results For personal use only HY13 HY12 Change $m $m % Significant increase in revenue from corresponding prior period Revenue 120.6 84.2 43% Gross profit 24.0 17.8 35% Overhead base grown to support expected higher activity levels Gross margin (%) 19.9 21.1 EBITDA 9.5 8.3 14% Key contr
Slide 8: Revenues by operating division
Revenues by operating division For personal use only Main contributors: SCEE Infrastructure $15.3m Rio Tinto Coastal Waters Rio Tinto Yandi Expansion $35.9m Rio Tinto Cape Lambert 33kV SCEE Construction MCC Sino Iron AngloGold Ashanti Tropicana $69.4m QGC Early Works TSJV Lake Vermont
Slide 9: Balance sheet
Balance sheet For personal use only Dec 12 Jun 12 $m $m Current assets 110.2 91.9 $46.9m cash balance Non current assets 47.8 34.7 $15.6m investment in plant and equipment Total assets 158.0 126.6 Current liabilities 61.2 33.4 $5.4m debt Non current liabilities 8.9 6.4 $60.0m banking and bonding cap
Slide 10: Cashflow
Cashflow For personal use only 70 22.6 (11.1) Strong operating cash inflow 60 (1.8) (0.3) (3.6) $11.1m cash outflow on plant 50 and equipment 9.5 40 FY12 dividend of $3.6m paid 30 46.9 20 31.6 10 0 Opening EBITDA Working Capex Tax, Interest, Repayment Dividends Closing Cash Cash July Capital Other o
Slide 11: Historical results summary
Historical results summary For personal use only 2011 2012 2013 H1 H2 H1 H2 H1 $m $m $m $m $m Revenue 47.3 54.5 84.2 135.8 120.6 Gross profit 2.3 13.9 17.8 25.6 24.0 Gross margin (%) 4.9 25.5 21.1 18.9 19.9 EBITDA (5.4) 6.1 8.3 13.9 9.5 EBIT (6.3) 5.2 7.3 12.1 7.2 NPAT (4.8) 3.1 5.1 8.6 4.3 Net marg
Slide 12: Financial trends
Financial trends For personal use only Revenue ($m) EBITDA ($m) Net Cash ($m) 150 15 50 40 10 30 100 5 20 0 10 50 0 -5 -10 0 -10 -20 H1 11 H2 11 H1 12 H2 12 H1 13 H1 11 H2 11 H1 12 H2 12 H1 13 H1 11 H2 11 H1 12 H2 12 H1 13 Gross Profit ($m) and Gross Margin NPAT($m) and Net Margin Net Assets ($m) 30
Slide 13: Our vision
Our vision For personal use only An emerging Tier One E&I contractor with first class systems, health and safety performance, a can-do culture and exceptional reputation 13
Slide 14: Order book at December 2012
Order book at 31 December 2012 For personal use only 200 Order book at 31 December 2012 included 180 $46m of orders for FY14 160 Ongoing works: 140 Rio Tinto Cape Lambert Phase A 120 AngloGold Ashanti Tropicana Gold Project $m 100 Rio Tinto Coastal Waters Rio Tinto Yandi Expansion 80 60 Orde
Slide 15: Strong full year expectations
Strong full year expectations For personal use only Revenue and NPAT to significantly improve in H2 as key projects ramp up Overheads as a percentage of revenue in H2 to return to levels equal to or lower than FY12 Increased commercial focus from clients Ability to meet those expectations dependent
Slide 16: Opportunity pipeline
Opportunity pipeline For personal use only Iron ore Rio Tinto Cape Lambert Phase B, BHP Sustaining Capital, BHP Major Projects Framework Agreement, BHP Nickel West Maintenance Framework Agreement, Sino Iron Trains 3 to 6, Hancock Prospecting Roy Hill LNG Chevron Wheatstone, Inpex Ichthys, Chevron Go
Slide 17: LNG offers unprecedented growth
LNG offers unprecedented growth For personal use only Up to $7bn of E&I work to be performed in Australia over the next five years on projects with FID Additional work expected from projects in FEED Formed KSJV with highly regarded international E&I contractor Kentech in December 2012 50:50 unincorp
Slide 18: Growing recurring revenues
Growing recurring revenues For personal use only Growth of services business fundamental to long term growth strategy SCEE Services brand established from 1 July 2012 Framework agreements in place with Rio Tinto and BHP Targeting existing and new LNG facilities – Gorgon, Pluto and NWS Upstream CSG w
Slide 19: Health and safety
Health and safety For personal use only Continual focus on performing our work safely LTI free in the period Eight years LTI free in Australia Purpose built training facilities and training programs aimed at maintaining these high standards 19
Slide 20: Systems development
Systems development For personal use only SCEEtrak project management system development on schedule and on budget New ERP selected and phase one of implementation scheduled to go live June 2013 20
Slide 21: Growing our people
Growing our people For personal use only Return to growth in employee numbers as 1400 Employee Numbers activity increases in H2 1200 Recruitment and training valuable part1100 of 914 1000 company growth and development 412 800 914 Dedicated training managers, facilities 735 and International trainin
Slide 22: 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 22
Slide 23: Second half to be stronger than first half
Second half to be stronger than first half For personal use only Order book of $186m at 31 December 2012 supports growth in full year revenues Increased overhead base supporting growth in the business Overheads as a percentage of revenue expected to reduce in H2 Increased commercial focus fr
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,
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