Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Shareholder Meeting (October 2023)
25 slides from Southern Cross Electrical Engineering's shareholder meeting presentation, Oct 31, 2023
Slide 1: Annual General Meeting
Annual General Meeting October 2023 For personal use only 31 October 2023 Annual General Meeting 31 October 2023 11
Slide 2: Introduction to SCEE
Introduction to SCEE Leading national electrical, instrumentation, …built by design through operational excellence and a communications and maintenance services group… disciplined M&A strategy • Established in 1978 in Perth and listed in 2007 (ASX:SXE) Historically focused on resources and industria
Slide 3: Electrification and decarbonisation
Electrification and decarbonisation Australia is undergoing an energy transition to achieve net zero emissions by 2050 Reduction in fossil fuel consumption will require a high degree of electrification in the For personal use only road transport and industrial sectors. Electrification is also expect
Slide 4: SCEE's strategy
SCEE’s strategy SCEE Group primarily sees itself as an electrical contractor diversified across the resources, commercial and infrastructure sectors • Our growth strategy continues to be to deepen our presence in those sectors and broaden our geographic diversity through expanding our core For perso
Slide 5: Financial Performance
For personal use only Financial Performance 5
Slide 6: FY23 record results
FY23 record results Revenue $464.7m (FY22: $553.3m) down 16.0% on prior year Record EBITDA $38.2m (FY22: $35.3m) up 8.1% on prior year * For personal use only Record EBIT $29.6m (FY22: $26.7m) up 10.7% on prior year * Record NPAT $20.1m (FY22: $15.3m) up 31.6% on prior year Result included $2.1m (FY
Slide 7: Record profits
Record profits Summary financials: Revenue of $464.7m (FY2: $553.3m) down 16.0% on prior record year as major resources projects (Kemerton and Gudai-Darri) completed in first half and anticipated new camps awards either FY23 FY22 % reduced or received later For personal use only $m $m Ongoing signif
Slide 8: Record cash
Record cash Cash increased to record $77.7m (FY22: $53.1m) up 46.3% on prior Balance sheet summary: year driven by record profits and return of working capital from major resources projects For personal use only Remain debt free Jun 23 Jun 22 $56.6m of bank guarantees and surety bonds on issue at 30
Slide 9: Cashflow
Cashflow Paid final Trivantage acquisition payment of $7.3m in September meaning Trivantage has achieved all earn-out targets in full since acquisition. Paid $10.5m of fully franked dividends in October For personal use only Annual General Meeting 31 October 2023 99
Slide 10: Highlights
For personal use only Highlights 10
Slide 11: Operations
Operations Lost Time Injury (“LTI”) free across group for the year (2.4 million manhours LTI-free in FY23) Kemerton Lithium, Rio Gudai Darri and BHP Villages projects successfully completed For personal use only Juwi Solar Farms and Tom Price Battery Storage projects ongoing NSW activity increasing
Slide 12: Diversified across markets and operations
Diversified across markets and operations FY 23 Order Book FY 23 Order Book Revenue breakdown by Sector by Geography by Sector $m $m $m • Record order book $610m • Over 80% of order book on • Resources fell back from FY22 as major iron ore projects completed For personal use only East Coast • Infras
Slide 13: Long-standing blue-chip client base
Long-standing blue-chip client base Seven selected clients – Woolworths, Coles, BHP, Rio These seven clients have long-standing and deep Tinto, Multiplex, CPB and Built – have consistently relationships with SCEE spanning decades and some provided over 40% on average of revenues over the last across
Slide 14: Growth of recurring revenues and earnings
Growth of recurring revenues and earnings Strong track record of recurring revenues and earnings Wide range of recurring works under services, growth - FY23 recurring revenues were 37% of total annual maintenance, sustaining capital, and framework revenue agreements, including: Recurring Revenues ($
Slide 15: Strong dividend yield and financial position
Strong dividend yield and financial position Shareholder returns over last seven years Strong cash position to support continued growth 4.0 cps fully-franked dividend paid on 11 October 2023 At 30 June: Dividends paid (cps) $m For personal use only FY17 FY18 FY19 FY20 FY21 FY22 FY23 3.0 0.0 3.0 3.0
Slide 16: Electrification and decarbonisation
Electrification and decarbonisation SCEE exposed to the electrification and decarbonisation of the economy through three avenues: • Supporting the decarbonisation of client operations – such as in the For personal use only resources sector undertaking battery, solar, wind and powerline projects for
Slide 17: Electrification and decarbonisation (cont.)
Electrification and decarbonisation (cont.) SCEE BUSINESS WHAT OUR CLIENTS SAY EXAMPLE SCEE PROJECTS BHP: “We will…take action to reduce our operational GHG emissions • BHP Juwi Northern Goldfields Solar Project (Scopes 1 and 2) in line with our…goal of net zero” For personal use only Rio Tinto: “We
Slide 18: Track record of successful acquisitions
Track record of successful acquisitions Completed value-accretive acquisitions of Datatel in Revenue contribution of acquisition in first full year of 2016, Heyday in 2017 and the Trivantage Group in 2020 consolidation Actively exploring further acquisition targets offering increased geographic dive
Slide 19: Conclusion and outlook
For personal use only Conclusion and outlook 19
Slide 20: Conclusion and outlook
Conclusion and outlook Record EBITDA*, EBIT* and NPAT up 8.1%, 10.7% and 31.6% respectively on prior year Record Cash $77.7m (FY22: $53.1m) up 46.3% on prior year and no debt For personal use only Record Order Book $610m (FY22: $565m) up 8.0% on prior year Final Dividend 4.0 cps declared and fully f
Slide 21: Q&A
For personal use only Q&A 21
Slide 22: Corporate summary
Corporate summary Capital Structure Shareholders at 19 October 2023 For personal use only ASX Code SXE Thorney Investments 15.8% Share Price (27 October 2023) 82.0c First Sentier Investors 7.7% No. of ordinary shares (27 October 2023) 263.1m Other Institutions in Top 30 Shareholders 11.3% Market Cap
Slide 23: Appendix – IFRS reconciliation
Appendix 1 – IFRS reconciliation SCEE’s results are reported under International FY23 FY22 Financial Reporting Standards (IFRS). SCEE discloses certain non-IFRS measures that are not prepared in $m $m accordance with IFRS. The non-IFRS measures should For personal use only only be considered in addi
Slide 24: Appendix – selection of current projects
Appendix 2 – selection of current projects BHP Juwi Northern Goldfields Multiplex Western Sydney Solar Project – SCEE Electrical International Airport - Heyday Over $100m For personal use only Over $15m Ergon Energy Asset Inspection CPB Sydney Metro Pitt Street and Maintenance Services – Station and
Slide 25: Disclaimer
Disclaimer 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 the current intentions, plans, expectations, assumptions and beliefs of Southern Cross El
Southern Cross Electrical Engineering — Shareholder Meeting (October 2023) on 6ix