Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Investor Presentation (February 2019)
22 slides from Southern Cross Electrical Engineering's investor presentation, Feb 27, 2019
Slide 1: Half Year ended 31 December 2018 results
Half Year ended 31 December 2018 results 27 February 2019
Slide 2: About SCEE
About SCEE Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, Our Values communication and maintenance services Safety company recognised for our industry leading capabilities It’s in everything we do. Quality Established in 1978 in Western Australia, the Exce
Slide 3: Highlights
Highlights Financial Operational Outlook Revenue $181.8m, EBITDA $9.0m and NPAT Significant wins included Westconnex M4 and M5 Stronger second half expected as certain of $4.5m motorway tunnels, multiple commercial building and fit- major projects ramped up slower than out awards at Parramatta Squar
Slide 4: Half Year financial performance
Half Year financial performance Significant revenue contributors included Rio Tinto HY19 HY18 Amrun, Westconnex, ATP Building 1, Wheatstone LNG and NBN roll-out $m $m EBITDA up 5%, EBIT up 30% and NPAT up 66% on Revenue 181.8 176.2 prior corresponding period, due to improved trading Gross Profit 21.
Slide 5: HY19 – Revenue by sector
HY19 – Revenue by sector Infrastructure grown significantly. No significant datacentre construction projects in period HY18 HY19 $176m $182m $12m $7m $61m Resources $63m $52m Telecommunications and datacentres Public infrastructure and defence $53m Commercial Industrials, energy & utilities $12m $14
Slide 6: HY19 – Revenue by geography
HY19 – Revenue by geography New South Wales and ACT continues as largest geography HY 18 HY 19 $176m $182m $1m $2m $7m $9m $14m $60m WA $66m NSW & ACT $31m QLD NT VIC $88m $80m Half Year Results to 31 December 2018 6
Slide 7: Balance sheet
Balance sheet Dec 18 Jun 18 Balance sheet remains strong with total cash of $56.2m (including $11.6m in restricted term deposit) $m $m at 31 December 2018 and no debt Current assets 150.9 139.0 Banking and bonding facilities negotiated to increase total bonding capacity from $60m to $100m Non curren
Slide 8: Cashflow
Cashflow Total cash consistent over period with $56.2m (including $11.6m in restricted term deposit) at 31 December 2018 Cash outflows included $6.5m paid to Heyday vendors in September and $7.0m dividends to shareholders in October Capex low at $1.3m for the period and forecast to remain low Half Y
Slide 9: Health, safety and people
Health, safety and people Workforce currently 1,500 employees Original SCEE business in fifteenth year LTI free in Australia Frank Tomasi, founder of SCEE, retired from the Board in October Half Year Results to 31 December 2018 9
Slide 10: Leading national diversified electrical contractor
Leading national diversified electrical contractor NT WA Wireless networks construction QLD RAAF Tindal Rio Tinto Amrun Bauxite Project Commercial Wheatstone LNG Rio Tinto Various Arrow MSA Resources BHP Billiton Various NBN construction Sino Iron Carrier networks construction Public Infrastructure
Slide 11: Order book by sector
Order book by sector Tendering still at a high level with nearly $900m of submitted tenders with clients pending decision. Business development pipeline strong and, combined with submitted tenders, now exceeds $2.5bn. Order book includes over $280m of work already secured for FY20 Jun 18 Dec 18 $450
Slide 12: Order book by geography
Order book by geography Bulk of order book secured in New South Wales reflecting strong commercial and infrastructure markets Jun 18 Dec 18 $450m $480m $5m $5m $60m $80m $20m $15m $30m WA $20m NSW & ACT QLD NT VIC $380m $315m Half Year Results to 31 December 2018 12
Slide 13: Strategy and sector outlooks
Strategy and sector outlooks 13
Slide 14: Strategy
Strategy SCEE primarily sees itself as an electrical contractor. From early 2016 we have implemented a strategy to add to our historic resources business by diversifying into adjacent and complementary sectors through organic initiatives and the acquisitions of Datatel and Heyday. SCEE now operates
Slide 15: Public infrastructure & defence
Public infrastructure & defence Sector primarily driven by government expenditure Australia has infrastructure gap as forecasting 3rd highest population growth in OECD but ranked 28th for global infrastructure quality Results in significant investment in road, rail, education, health and aged care,
Slide 16: Commercial
Commercial Commercial largest component of SCEE order book January 2019 Sydney CBD recorded vacancy rate of 4.6 per cent, lowest rate in almost 10 years Public infrastructure developments will lead to further wave of commercial development when completed Contract wins included multiple projects at P
Slide 17: Resources
Resources Commodity prices holding up well and exporting record volumes Pursuing replacement tonnage projects in iron-ore Iron-ore sustaining capital expenditure continuing to increase Pursuing opportunities in other commodities In period demobilised at Rio Tinto Amrun and demobilising at Wheatstone
Slide 18: Telecommunications & datacentres
Telecommunications & datacentres NBN construction roll-out peaking and technology mix has stabilised Positioning for NBN maintenance and upgrading NBN works variously in Fibre To The Node, Curb and HFC continued in WA, QLD and VIC Upgrading capacity ongoing in wireless sector and 5G commercial deplo
Slide 19: Industrials, energy & utilities
Industrials, energy & utilities Industrial and utilities sectors stable and provide flow of opportunities Energy generation and distribution to meet demand remains a challenge for east coast with ongoing investment in renewables Strong pipeline of opportunities for SCEE for electrical construction p
Slide 20: Conclusion and outlook
Conclusion and outlook • Revenue $181.8m, EBITDA $9.0m and NPAT of $4.5m • EBITDA up 5%, EBIT up 30% and NPAT up 66% on prior corresponding period • Balance sheet strong with total cash of $56.2m (including $11.6m in restricted term deposit) and no debt • Total bonding capacity increased to $100m •
Slide 21: Corporate summary
Corporate summary Capital Structure Shareholders at 1 February 2019 ASX Code SXE Shareholder % Share Price (25 February 2019) $0.625 Frank Tomasi 20.0% No. of ordinary shares 234.1m Thorney Investments 13.0% Market Capitalisation (25 February 2019) $146.3m Heyday Vendors 11.7% Number of performance
Slide 22: Disclaimer
Disclaimer Some of the information contained in this presentation contains “forward- This presentation is for information purposes only. It is not financial product or looking statements” which may not directly or exclusively relate to historical investment advice or a recommendation, offer or invit
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