Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Euroz Conference (March 2010)
16 slides from Southern Cross Electrical Engineering's conference presentation, Mar 16, 2010
Slide 1: Euroz Conference
For personal use only Euroz Conference Presented by Stephen Fewster CFO Tuesday, 16 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 Value of Advanced Projects For personal use only Source: List of Major Minerals and Energy Projects, Abare Economics, October 2009 12
Slide 13: Major Minerals and Energy Projects (cont)
Major Minerals and Energy Projects (cont) For personal use only Projects – 8 Projects – 13 Cost - $67.2bn Cost - $5.2bn Projects – 6 Cost - $4.1bn Key Oil & Gas Mining & Processing Projects – 23 Cost - $25.8bn $ Source: List of Major Minerals and Energy Projects, Abare Economics, October 2009 13
Slide 14: The Electrical Contractors Component
The Electrical Contractors Component For personal use only Industry rule of thumb is 3% - 5% of project value is E & I revenue $bn Western Australia Queensland Total Range 3% 5% 3% 5% 3% 5% Oil & Gas 2.0 3.4 0.2 0.3 2.2 3.7 Minerals 0.8 1.3 0.1 0.2 0.9 1.5 Total 2.8 4.7 0.3 0.5 3.1 5.2 Advanced proj
Slide 15: Our Capacity
Our Capacity 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 Oceanic c
Slide 16: Conclusion
Conclusion For personal use only • Outstanding reputation again recognised at national NECA awards • Australian planned and anticipated projects provide strong organic pipeline • International projects are recommencing • Successfully built capability and capacity • Key financial metrics remaining ro
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