Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Investor Presentation (September 2022)
23 slides from Southern Cross Electrical Engineering's investor presentation, Sep 19, 2022
Slide 1: Investor Roadshow September 2022
For personal use only Investor Roadshow September 2022 Investor Roadshow September 2022 11 19 September 2022
Slide 2: Our businesses
Our businesses Southern Cross Electrical Engineering Limited (“SCEE Group”) is For personal use only a national electrical, instrumentation, communications and maintenance services company established in 1978 and listed in 2007 (ASX:SXE). The acquisitions of Datatel in 2016, Heyday in 2017 and the T
Slide 3: Investment proposition
Investment proposition For personal use only Blue-chip client base Diversified markets Recurring earnings growth (Rio, BHP, Multiplex, CPB, Woolworths, Coles) (Resources, Infrastructure, Commercial) (Services, Maintenance, Frameworks) Investor Roadshow September 2022 Decarbonisation theme M&A opport
Slide 4: Financial highlights
Financial highlights Record Revenue $553.3m (FY21: $370.2m) up 49.5% on prior year For personal use only Record EBITDA $35.3m (FY21: $29.6m) up 19.3% on prior year * Record EBIT $26.7m (FY21: $22.3m) up 19.7% on prior year * NPAT $15.3m (FY21: $13.8m) up 10.9% on prior year Result includes $2.2m amo
Slide 5: Operational highlights
Operational highlights Resources SCEE’s largest sector for first time since FY18 For personal use only Driven particularly by large MARBL Kemerton Lithium Plant and Rio Tinto Gudai Darri projects Won WA NECA “Industrial Large Project Award 2022” for Rio Tinto Gudai Darri project Subdued Sydney FY22
Slide 6: Outlook
Outlook Forecasting FY23 revenue similar as large resources projects run off and not immediately replaced For personal use only Targeting FY23 EBITDA in range $36m-$38m as project mix expected to be more profitable Resources sector has long tail of smaller opportunities in many commodities for SCEE
Slide 7: Coronavirus, weather, inflation and workforce
Coronavirus, weather, inflation and workforce Coronavirus Inflation For personal use only East Coast lockdowns resulted in total Sydney construction Group has and is managing inflationary pressures: shutdown for part of July and later shutdowns in Victoria and subsequent isolation requirements furth
Slide 8: Third record half of revenue
Third record half of revenue Revenue of $553.3m (FY21: $370.2m) a record for the Summary financials: For personal use only group and each half successively broke previous record half FY22 FY21 % Revenue growth in WA resources sector more than offset $m $m subdued activity levels in parts of East Coa
Slide 9: Revenue split by sector
Revenue split by sector All three sectors up on prior year notwithstanding commercial slowdown in Sydney, as offset by full contribution from Trivantage For personal use only Resources up 119% as SCEE Electrical’s Kemerton and Gudai Darri at full activity FY21 FY22 $370m $553m $167m $129m $165m Comm
Slide 10: Revenue split by geography
Revenue split by geography Revenue in WA more than doubled driven by MARBL Kemerton, Rio Tinto Gudai Darri and BHP Villages Security projects For personal use only Activity in NSW fell back as impacted by coronavirus and weather events FY21 FY22 $370m $553m $145m $140m $161m WA NSW & ACT QLD & NT VI
Slide 11: Strong balance sheet and debt free
Strong balance sheet and debt free Cash increased to $53.1m (FY21: $51.0m) up 4.1% on Balance sheet summary: For personal use only prior year and remain debt free $62.3m of bank guarantees and surety bonds on issue at 30 June out of a total group capacity of $100m leaving a Jun 22 Jun 21 headroom of
Slide 12: Cashflow
Cashflow Cash of $53.1m at 30 June pleasing as in FY22 funded further $10.0m for acquisition of Trivantage and paid $12.7m of For personal use only dividends, and at very high levels of activity in June with resulting working capital requirements Paid penultimate Trivantage acquisition payment of $5
Slide 13: Record year-end order book
Record year-end order book Order book ended up 31% on previous year despite a record year of revenue For personal use only Particularly driven by projects in and around Sydney Metro Pitt Street Station and at Western Sydney International Airport 30 June 2021 30 June 2022 $430m $565m $112m $156m $219
Slide 14: Current projects
Current projects For personal use only MARBL JV Kemerton Lithium Multiplex Western Sydney Processing Plant – SCEE Electrical International Airport - Heyday Over $100m Over $100m Rio Tinto Gudai-Darri Iron Ore CPB Sydney Metro Pitt Street Mine – SCEE Electrical Station and Towers - Heyday Over $100m
Slide 15: Strategy
Strategy SCEE Group primarily sees itself as an electrical contractor diversified across the For personal use only resources, commercial and infrastructure sectors Our growth strategy continues to be to deepen our presence in those sectors and broaden our geographic diversity through expanding our c
Slide 16: Resources sector
Resources sector Resources activity more than doubled on prior year and SCEE’s largest sector for Resources revenue: For personal use only first time since FY18 FY22 FY21 Primarily driven by high levels of activity at MARBL Kemerton Lithium Plant, Rio Tinto Gudai-Darri and BHP Villages Security Proj
Slide 17: Infrastructure sector
Infrastructure sector Wide sector for SCEE, includes transport – road rail and airports, health – hospitals and aged care, utilities – electrical, telco and water, Infrastructure revenue: For personal use only education – universities and schools, ports, defence, prisons, other government facilities
Slide 18: Commercial sector
Commercial sector Commercial activity falls in two main parts: Commercial revenue: For personal use only • Heyday CBD towers and hotels, retail, and mixed use developments FY22 FY21 $m $m • Trivantage’s supermarket electrical services and maintenance business Revenue 166.9 164.7 Sydney building acti
Slide 19: Decarbonisation
Decarbonisation SCEE is leveraging opportunities in the decarbonisation of the global For personal use only economy through three avenues: • Supporting the decarbonisation of resources operations – such as battery, solar and wind projects for mining companies • Assisting meeting the demand for commo
Slide 20: Conclusion
Conclusion Revenue $553.3m (FY21: $370.2m) up 49.5% on prior year For personal use only Record EBITDA $35.3m (FY21: $29.6m) up 19.3% on prior year * Record EBIT $26.7m (FY21: $22.3m) up 19.7% on prior year * Cash $53.1m (FY21: $51.0m) up 4.1% on prior year and no debt Record year-end order book $565
Slide 21: Corporate summary
Corporate summary For personal use only Capital Structure Shareholders at 25 August 2022 ASX Code SXE Thorney Investments 16.0% Share Price (15 September 2022) 75.0c First Sentier Investors 9.1% No. of ordinary shares 261.0m Other Institutions in Top 30 Shareholders 12.9% Market Capitalisation (15 S
Slide 22: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation For personal use only SCEE’s results are reported under FY22 FY21 International Financial Reporting Standards (IFRS). SCEE discloses certain non-IFRS $m $m measures that are not prepared in Contract revenue 553.3 370.2 accordance with IFRS. The non-IFRS measures should
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 the current intentions, plans, expectations, assumptions and belief
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