Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Euroz Investor Forum (March 2011)
23 slides from Southern Cross Electrical Engineering's conference presentation, Mar 10, 2011
Slide 1: Creating a Platform for Growth
Southern Cross Electrical Engineering For personal use only Euroz Investor Forum Rottnest Island – 10th March 2011 (ASX: SXE) “Creating a Platform for Growth” Southern Cross Electrical Engineering www.scee.com.au
Slide 2: SCEE Background Highlights
SCEE Background Highlights For personal use only • Established in 1978 as a privately owned Electrical and Instrumentation Contractor (E&I) • Listed on the ASX November 2007 • Founder Frank Tomasi, currently a major shareholder with 49.3% of shares on offer • Safety record, almost 7 years LTI free –
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: Mt Keith
Mt Keith For personal use only Southern Cross Electrical Engineering www.scee.com.au
Slide 5: Pluto
Pluto For personal use only Image courtesy of Woodside Southern Cross Electrical Engineering www.scee.com.au
Slide 6: SCEE East Coast - Coal Seam Gas
SCEE East Coast - Coal Seam Gas For personal use only Southern Cross Electrical Engineering www.scee.com.au
Slide 7: Pueblo Viejo Project – Dominican Republic
Pueblo Viejo Project – Dominican Republic For personal use only Southern Cross Electrical Engineering www.scee.com.au
Slide 8: KJ Johnson
KJ Johnson For personal use only Southern Cross Electrical Engineering www.scee.com.au
Slide 9: Hindle Offshore Services
Hindle Offshore Services For personal use only Southern Cross Electrical Engineering www.scee.com.au
Slide 10: Update on H1 Result
Update on H1 Result For personal use only • Good progress being on close-out of Pluto. • Award of Concentrator E&I Package for MCC on Sino Iron. • Forward order book currently sitting at $55m, including $20m for FY12. • Approx $270m of tenders in the evaluation phase. Southern Cross Electrical Engin
Slide 11: Turnover For Past Years
Turnover For Past 5 Years For personal use only FY07 FY08 FY09 FY10 FY11 Actual Actual Actual Actual Forecast (Range) $81m $84.2m $100.3m $97.4m $100-$110m * ** *** Acquisitions July 2009 August 2009 March 2010 * ** *** Southern Cross Electrical Engineering www.scee.com.au
Slide 12: Target For Growth
Target For Growth For personal use only $100m $200m+ FY11 FY12 FY13 FY14 FY15 • Targeting aggressive organic growth (30% + compound growth) • Grow the top line revenue figure • Grow the bottom line EBITDA/NPAT in absolute and in % terms • International (DR/Peru/PNG/Mongolia) expected to be up in 10-
Slide 13: Minerals and Metals
Minerals and Metals Southern Cross Electrical Engineering is well positioned to achieve its growth target For personal use only from future global Minerals and Metals projects from its long term relationships, reputation for delivery, quality and safety. CAPEX Estimate* ($bn) ... and future projects
Slide 14: Oil and Gas
Oil and Gas Southern Cross Electrical Engineering is well positioned to achieve its Oil and Gas For personal use only market growth target from future projects through the sound project delivery at Pluto and from its CSG contracts CAPEX Estimate* ($bn) Source Client Data ... and future projects • Go
Slide 15: Key Initiatives to Support/Facilitate Growth
Key Initiatives to Support/Facilitate Growth For personal use only • Board Changes • Retention/Expansion of Capacity (people strategy) • Double our apprentice intake FY09-FY11, will further increase FY12 onwards • Increase indigenous employees across the company • Greater focus on Integrated suit of
Slide 16: Board Changes
Board Changes • Founder of SCEE For personal use only • Major Shareholder (49.3%) • Chairman from 1978 to 9th March 2011 • Frank has advised his intentions to step down from the role of Chairman to becoming a Non-Executive Director, effective 9th March 2011 Frank Tomasi • Over 30 years Engineering a
Slide 17: People Strategy
People Strategy For personal use only • Internally: – Identifying the right people for the right role – Development of people within the organisation – Mentoring • HR Recruitment Team: – Keep in contact with past employees – Source new employees – Attraction/Retention Strategy – Networking opportuni
Slide 18: Development and Mentoring of our Staff
Development and Mentoring of our Staff For personal use only • Career Development: – Career Pathways have been developed – Provide career guidance and opportunity for progression – Allows for recruitment at lowest possible level • Mentoring staff by: – sharing knowledge and information – creating op
Slide 19: Apprenticeship Program
Apprenticeship Program For personal use only • SCEE has employed 79 Apprentices since 1979 • In the last 10 years, the company has graduated 43 apprentices of which 38 have been retained as tradespeople, supervisors and project managers • Dedicated Training Centre to train, assess and enhance appren
Slide 20: Indigenous Traineeship Program
Indigenous Traineeship Program For personal use only • 2010 Implemented Indigenous Traineeships; 11 Employed. • 5 Traineeships completed by the end of November 2010 and 6 continued into 2011. • Introduced Cultural Awareness training for all SCEE Staff. • Developed close relationships with the Aborig
Slide 21: Safety Performance
Safety Performance For personal use only • 0 LTI’s recorded for last 6-7 years • 2007 national NECA award winner for excellence in safety • 2009 national NECA award winner for excellence in safety • 2010 state NECA award winner for the Pluto LNG Project • Numerous client sponsored safety awards at p
Slide 22: Conclusions
Conclusions For personal use only • FY11 has been difficult for SCEE but many valuable lessons have been learnt; • Current order book improving; • H2 expected to be profitable and FY11 should record a full year profit; • Prospects for FY12 and beyond over a 3-5 year period are exceptional; • SCEE is
Slide 23: 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,
Southern Cross Electrical Engineering — Euroz Investor Forum (March 2011) on 6ix