20 slides from Southern Cross Electrical Engineering's investor presentation, Sep 26, 2011
Slide 1: Investor Presentation
For personal use only Investor Presentation 26-29 September 2011 Simon High Chris Douglass CEO CFO
Slide 2: Presentation overview
Presentation overview For personal use only • Key messages • Financial overview • Operational overview • Strategy and outlook • Summary 1
Slide 3: Key messages
Key messages For personal use only Strong H2 FY11 and new contract wins driving growth • Exposed to upswing of Electrical & Instrumentation capital expenditure cycle Strategic • Focus on domestic and organic growth • Significant long‐term contracts awarded • Leverage acquisitions to win larger scale
Slide 4: FY11 financial overview – profit & loss
FY11 financial overview – profit & loss For personal use only 6 months to • Reached bottom of cycle in H1 ($m) Dec 2010 Jun 2011 Change FY11 • Strong turnaround in H2 Sales Revenue 47.3 54.5 101.8 • Momentum is continuing Gross profit 2.3 13.9 16.2 EBITDA (5.4) 6.1 0.6 Statutory NPAT (4.8) 3.1 (1.7)
Slide 5: FY11 financial overview – cash flow and balance sheet
FY11 financial overview – cash flow and balance sheet For personal use only Cash flow December June Balance sheet 31 Dec 30 Jun ($m) 6 months to 2010 2011 ($m) 2010 2011 Operating cash flows (4.4) 4.6 Current assets 23.3 59.8 Investing cash flows (0.7) (1.1) Non‐current assets 30.1 26.8 Financing ca
Slide 6: Order book – lead indicator of revenues
Order book – lead indicator of revenues For personal use only $m 120 100 80 $75m Oil & Gas FY11 revenue Infrastructure 60 Operational Support 40 Mining International $27m Mining Australia 20 0 30 June 2010 30 June 2011 5
Slide 7: Operational highlights
Operational highlights For personal use only • First involvement with major LNG project – strong performance has Successful completion developed credentials and positions SCEE for major projects on west and of Pluto east coasts • High quality of work and outstanding safety performance • Oceanic – re
Slide 8: Five lines of business
Five lines of business For personal use only FY11 revenue Minerals and Processing ‐ Australia Oil & Gas – Australia Infrastructure – Australia Minerals and Processing ‐ International Operational Support and Maintenance 7
Slide 9: Minerals and Processing - Australia
Minerals and Processing ‐ Australia For personal use only Iron ore to underpin business over the next 5 years • FY 11 revenue $36.5m (FY10: $25.5m) Major upcoming opportunities • Secured long term framework agreements Sino Iron RTIO 333mtpa Rio Tinto expansion projects RTIO MSA BHP RGP6 Sino I
Slide 10: Rio Tinto framework agreement
Rio Tinto framework agreement For personal use only SCEE enters into a preferred contractor agreement with Rio Tinto • Provides SCEE with preferred contractor status for the next five years at Cape Lambert and potential minesites for Electrical & Instrumentation works • Further highlights the streng
Slide 11: Sino Iron
Sino Iron For personal use only SCEE awarded seventh E&I contract for Sino Iron project • Seventh Sino Iron contract awarded to SCEE for Electrical and Instrumentation work • Reimbursable contract model • Framework agreement now providing additional orders SCEE Headcount at Sino Iron project: 140 12
Slide 12: Oil & Gas - Australia
Oil & Gas ‐ Australia For personal use only Established credibility ‐ in strong contention for CSG projects • FY11 revenue $33.3m (FY10: $31.5m) Major upcoming opportunities • Pluto project achieved a successful completion and satisfactory commercial result – market East Coast West Coast credibility
Slide 13: Infrastructure - Australia
Infrastructure ‐ Australia For personal use only Strong bounce‐back in H2 • FY11 revenue $6.8m (FY10: $18.3m) Major upcoming opportunities • Substantial growth expected in FY12 off the back of increased mining investment Rio Tinto BHP • East coast CSG is a future target market Sino Iron • KJJ acquis
Slide 14: Minerals and Processing - International
Minerals and Processing ‐ International For personal use only Focus to be Peru Major upcoming opportunities • FY11 revenue $7.5m (FY10: $1.9m) Minas Congas • Expect activity in Peru to increase Cerro Verde • Undertake at least one major project each year Constancia • Pueblo Viejo project tracking in
Slide 15: Operational Support and Maintenance
Operational Support and Maintenance For personal use only Building recurring revenues • FY11 revenue $17.6m (FY10: $20.2m) Major upcoming opportunities • Queensland weather events impacted H2 Expansions of: • Growing a re‐current revenue base to provide a consistent base‐line of revenues RTIO agreem
Slide 16: Strategy and outlook - Industry positioning
Strategy and outlook ‐ Industry positioning For personal use only H1 FY11 the trough for E&I industry ‐ lead indicators now trending up • Order book of $27m at 30 June 2010, now order book at $75m • Lead indicator companies (Monadelphous, NRW, Lycopodium, RCR, Forge, Decmil) have announced improved
Slide 17: Strategic objectives
Strategic objectives For personal use only On track to achieve three‐year objectives The three year objectives are to organically grow with a core focus on Australia and an international focus on Peru opportunities with major international clients, building the Operational Support and Maintenance li
Slide 18: Delivery of strategy
Delivery of strategy For personal use only Strong domestic fundamentals are platform to deliver strategic goals • Focus on organic growth in domestic market: iron ore miners looking to accelerate investment plans LNG and CSG projects ramping up lead indicators showing positive signals for E&I
Slide 19: Summary
Summary For personal use only Growing orders, revenue and margins into FY12 and beyond • Positioned well with a strong order book momentum building with seventh Sino contract Rio Tinto preferred contractor status • Successful completion of Pluto contract positions the business for further oil an
Slide 20: 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