Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — FY2018 Earnings Presentation
25 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 29, 2018
Slide 1: Full Year Results Presentation
For personal use only Full Year Results Presentation Year Ended 30 June 2018 29 August 2018
Slide 2: About SCEE
For personal use only 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 Weste
Slide 3: Celebrating 40 years – 1978 to 2018
For personal use only Celebrating 40 years – 1978 to 2018 Full Year Results 30 June 2018 3
Slide 4: Highlights
For personal use only Highlights Financial Operational Outlook Revenue $347.9m, Underlying EBITDA* Significant projects in year demonstrate breadth and Order book of over $450m at 30 June 2018 $19.0m and Underlying NPAT* of $10.1m diversity of group: Includes work already secured of over Revenue up
Slide 5: Underlying full year financial performance
For personal use only Underlying full year financial performance Record revenue for group and up 74% on prior year FY18 FY17 as first full year in which Heyday results consolidated $m $m Gross margins increased from 11.1% in first half to 12.8% in second half giving 11.9% for full year FY18 Revenue
Slide 6: FY18 – Revenue by sector
For personal use only FY18 – Revenue by sector Revenue growth in all market sectors FY17 FY18 $200m $348m $18m $95m Resources $125m $112m Telecommunications and data centres Public infrastructure and defence Commercial Industrials, energy & utilities $40m $30m $10m $25m $49m $44m Full Year Results 3
Slide 7: Balance sheet
For personal use only Balance sheet Balance sheet strengthened with (net) $31.9m capital Jun 18 Jun 17 raising in November 2017 to support growth $m $m Cash of $58.1m at 30 June 2018 and no debt Current assets 139.0 99.1 Bank guarantee and surety bond capacity of $60m of which $40.1m used Non curren
Slide 8: Cashflow
For personal use only Cashflow $70m Cash increased from $40.6m to $60m $58.1m over year Working capital requirements $50m $19.0m ($21.4m) high at year end as certain ($2.7m) $31.9m $40m projects at peak activity ($9.3m) Included $9.25m paid to $30m $58.1m Heyday vendors in September 2017 $20m $40.6m
Slide 9: Health, safety and people
For personal use only Health, safety and people Workforce currently over 1,200 employees Group was LTI free in FY18 Original SCEE business now over fourteen years LTI free in Australia Integration of functions and processes across SCEE businesses ongoing Full Year Results 30 June 2018 9
Slide 10: Leading national diversified electrical contractor
For personal use only Leading national diversified electrical contractor NT QLD WA Wireless networks construction Commercial Wheatstone LNG Rio Tinto Amrun Bauxite Project RAAF Tindal Rio Tinto Various Arrow MSA Resources BHP Billiton Various NBN construction Sino Iron Carrier networks construction
Slide 11: Order book by sector
For personal use only Order book by sector Tendering remains at a high level with nearly $900m of submitted tenders with clients pending decision. Business development pipeline strong and, combined with submitted tenders, exceeds $2bn. Order book remained at similar levels throughout year and now in
Slide 12: Sector outlooks
For personal use only Sector outlooks Full Year Results 2018 12
Slide 13: Public infrastructure & defence
For personal use only Public infrastructure & defence Sector primarily driven by government expenditure Significant investment in road, rail, education, health and aged care, and defence Particularly strong in NSW and VIC to address population growth and congestion with longevity to pipeline Worked
Slide 14: Commercial
For personal use only Commercial Commercial largest component of SCEE order book Pipeline strong in NSW as a result of office, multi-storey and retail investment, and refurbishments of existing facilities to meet high demand Public infrastructure developments will lead to further wave of commercial
Slide 15: Resources
For personal use only Resources Positioning for upcoming large scale replacement tonnage projects in iron-ore Also increasing iron-ore sustaining capital expenditure Actively pursuing opportunities in bauxite, gold and lithium and other metals LNG construction at Wheatstone and Ichthys nearing compl
Slide 16: Telecommunications & data centres
For personal use only Telecommunications & data centres NBN construction roll-out peaking and technology mix has stabilised Positioning for NBN maintenance and upgrading Upgrading capacity ongoing in wireless sector and 5G commercial deployment expected 2020 onwards Growth in data demand driving dat
Slide 17: Industrials, energy & utilities
For personal use only Industrials, energy & utilities Industrial and utilities sectors stable providing flow of opportunities for SCEE Energy generation and distribution to meet demand remains a challenge for east coast with ongoing investment in renewables Pipeline offers number of opportunities fo
Slide 18: Conclusion and outlook
For personal use only Conclusion and outlook • Record revenue of $347.9m, up 74% on prior year • Underlying EBITDA* of $19.0m, up 179% on prior year • Successful capital raising in November gives strong balance sheet with net cash of $58.1m at 30 June 2018 • Significant awards in period in commercia
Slide 19: Appendices
For personal use only Appendices Appendix 1 - Underlying to statutory results reconciliation Appendix 2 - Corporate summary Appendix 3 - Disclaimer Full Year Results 2018 19
Slide 20: Appendix – Underlying to statutory results reconciliation
For personal use only Appendix 1 – Underlying to statutory results reconciliation SCEE’s results are reported under International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Company discloses certain non-IFRS measures that are not prepared in a
Slide 21: Underlying to statutory FY18 results reconciliation
For personal use only Appendix 1 – Underlying to statutory results reconciliation (cont.) Underlying to statutory FY18 results reconciliation: Amortisation of Unwinding of Heyday Write back of acquired Heyday and Datatel deferred Statutory Datatel deferred Underlying customer contract consideration
Slide 22: Underlying to statutory FY17 results reconciliation
For personal use only Appendix 1 – Underlying to statutory results reconciliation (cont.) Underlying to statutory FY17 results reconciliation: M&A, expansion Amortisation of Unwinding of Heyday Write back of and Organisation acquired Heyday and Datatel deferred Statutory Datatel deferred Underlying
Slide 23: Appendix - Corporate summary
For personal use only Appendix 2 - Corporate summary Capital Structure Shareholders at 30 June 2018 ASX Code SXE Shareholder % Share Price (21 August 2018) $0.715 Frank Tomasi 28.2% No. of ordinary shares 231.4m Heyday Vendors 11.9% Market Capitalisation (21 August 2018) $165.4m Thorney Investments
Slide 24: Appendix - Disclaimer
For personal use only Appendix 3 - 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
Slide 25: SCEE contact details
scee SCEE Perth Office (Head Office) 41 Macedonia Street, Naval Base Western Australia, 6165 E scee@scee.com.au T +61(0)8 9236 8300 F +61(0)8 9410 2504 PERTH | BRISBANE | DARWIN | ADELAIDE KARRATHA NEWMAN | TOWNSVILLE CANBERRA | SYDNEY scee.com.au CELEBRATING oe YEARS Heyday APE 262507 nsw 249908¢ D
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