14 slides from Southern Cross Electrical Engineering's conference presentation, Mar 11, 2010
Slide 1: RBS Morgans Engineering and Construction Conference
For personal use only RBS Morgans Engineering and Construction Conference Thursday, 11 March 2010
Slide 2: Who we are
Who we are For personal use only SCEE Five Year Revenue “SCEE is a • Founded in 1978 120 $ Millions leading • Listed on ASX in November 2007 100 provider of large 80 scale specialised • 0 LTIs for over 4 years 60 electrical, • Strong service delivery reputation 40 control and instrumentation • Progr
Slide 3: National Electrical and Communication Association Awards
National Electrical and Communication Association Awards For personal use only (2009) National OH&S Excellence Category – Cape Lambert Port Upgrade (2009) National Industrial Category – Cape Lambert Port Upgrade (2007) National OH&S Excellence Category – Ravensthorpe Nickel (2007) National Industria
Slide 4: Strategic Objectives
Strategic Objectives Strategic Objectives Status For personal use only • Expand our capability • Hindles and Oceanic increases oil & gas capability Grow Electrical Engineering • KJJ increases power line capability Business • Enter new market segments and • Re-entry into east coast market and entry i
Slide 5: The Four Pillars
The Four Pillars For personal use only Australian International Oil & Gas Infrastructure Mining Mining Overhead power LNG downstream Process plants lines and Process plants process plant switchyards Bulk material CSG compressor Power generation Bulk material handling facilities stations facilities h
Slide 6: Our Brands
Our Brands For personal use only HINDLE OCEANICIndustries electrics E & I construction, E & I construction, Overhead power E & I construction inspection and inspection and line construction maintenance maintenance Offshore, Western Australia and Australia & Western Australia Queensland Overseas Nort
Slide 7: SCEE International Gold Contracts
SCEE International Gold Contracts Largest of any international E&I contractor For personal use only ASIA & MIDDLE EAST 7 contracts, 1987-2009 Indonesia 2, Kazakhstan 1, Mongolia 1, Papua New Guinea 1, Saudi Arabia 1, Uzbekistan 1 Clients: Newmont and others AUSTRALIA & NEW ZEALAND 140 contracts, 198
Slide 8: First Half Financial Results
First Half Financial Results For personal use only $ millions Dec 09 Dec 08 Revenue 39.2 57.7 Gross Profit 13.7 18.6 Foreign exchange losses & other income (0.2) (3.1) Overheads (6.1) (5.2) EBITDA 7.4 10.3 Depreciation (0.7) (0.5) Net interest 0.2 0.6 Tax (2.1) (3.2) NPAT before business acquisition
Slide 9: FY10 Outlook
FY10 Outlook For personal use only No substantial international work in FY10 Revenue Comparison $120m $100m $80m $60m $40m $20m $0m FY10 FY09 Australia International Acquisitions • FY10 second half revenue expected to be approximately $11 million greater than first half • Gross profit margins are ex
Slide 10: Key Financial Metrics
Key Financial Metrics EBITDA margin For personal use only Gross margin Gross margin EBITDA margin 40.0% 20.0% 30.0% 15.0% 20.0% 10.0% 10.0% 5.0% 0.0% 0.0% Dec 09 Dec 08 Dec 09 Dec 08 NPAT margin due to O/heads from lower interest revenue acquired businesses NPAT margin Overhead cost comparison
Slide 11: Balance Sheet
Balance Sheet For personal use only The key balance sheet items are: • Net cash $16.1m. • Receivables are lower as contracts are either just commencing or completing. Tier 1 clients mean no bad debts. • Intangible assets and goodwill - due to acquisition on Hindles and K.J. Johnson & Co. • Creditors
Slide 12: Major Minerals and Energy Projects
Major Minerals and Energy Projects For personal use only Source: List of Major Minerals and Energy Projects, Abare Economics, October 2009 12
Slide 13: FY11 Outlook & Beyond
FY11 Outlook & Beyond For personal use only Australian International Oil & Gas Infrastructure Mining Mining Oceanic creates Tenders for Gorgon KJJ increases power Several large gold east coast presence received line capacity projects imminent Activity increasing Iron ore expansion Oceanic & Hindles
Slide 14: Conclusion
Conclusion For personal use only • Outstanding reputation again recognised at national NECA awards • Key financial metrics being maintained • Strong cash position and robust balance sheet • Planned and anticipated projects provide strong organic pipeline • Successfully building capability and capaci