23 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 26, 2014
Slide 1: Investor Presentation: 2014 Full Year Results
For personal use only Investor Presentation 2014 Full Year Results 26 August 2014
Slide 2: Highlights
Highlights For personal use only Full year revenue of $218.2m and NPAT of $7.7m Financial Strong balance sheet with $35.2m of net cash at 30 June 2014 Fully franked dividend of 2.7 cents per share Order book of $111m at 30 June 2014 with $94m of new awards post year end Successful completion and clo
Slide 3: About SCEE
About SCEE For personal use only Leading provider of specialised electrical Project life cycle support and instrumentation services design and construction of high voltage Delivers services to large-scale resource power line distribution, switchyards and projects across Australia and overseas substa
Slide 4: Exposure to six sectors
Exposure to six sectors For personal use only Iron ore Minerals & metals LNG CSG Coal Power generation Australia Australia & overseas Australia Australia Australia Australia 3
Slide 5: FY14 projects
For personal use only FY14 projects 4
Slide 6: Key contract wins
Key contract wins For personal use only Rio Tinto Cape Lambert Port B Phase B Approximately $80m of E&I works awarded Follows successful completion of Phase A works BHP Billiton Iron Ore Yarnima Power Station SCEE’s first power station project Over $25m of scope awarded to date KSJV – Bechte
Slide 7: Full year financial results
Full year financial results For personal use only FY14 FY13 Change Revenue and profits down on record $m $m % FY13 results Results impacted by later than Revenue 218.2 278.0 (21%) anticipated award and commencement Gross profit 43.8 61.3 (29%) of key projects Gross margin 20.1% 22.1% H2 margins lowe
Slide 8: Revenues by operating division
Revenues by operating division For personal use only Main Contributors: SCEE Infrastructure BHP Billiton Yarnima Power Station Rio Tinto Yandi Expansion BHP Billiton Iron Ore Sustaining Capital SCEE Construction Rio Tinto Cape Lambert Port B Phase A and Phase B AngloGold Ashanti Tropicana
Slide 9: Balance sheet
Balance sheet For personal use only Jun 14 Jun 13 $m $m Strong balance sheet Current assets 98.6 106.7 Cash of $37.9m at 30 June 2014 with a Non current assets 48.0 51.0 further $10.9m of client receivables due in late June received in early July Total assets 146.6 157.7 Current liabilities 34.6 43.
Slide 10: Cashflow
For personal use only Cashflow 9
Slide 11: Financial trends
For personal use only Financial trends 10
Slide 12: Dividends
Dividends For personal use only Fully franked dividend of 2.7 cps declared Same as FY14 dividend in absolute terms Payout ratio of 56% compared to 25% in FY14 Strikes balance between delivering returns to shareholders and retaining capital for growth opportunities Record date: 22 September 2014 Paym
Slide 13: Health and safety
Health and safety For personal use only Lost Time Incident free in the period Over ten years LTI free in Australia Reflective of the proactive safety culture across the whole of SCEE from the Board to our project teams SCEE awarded the NECA-WA 2014 “Health & Safety Award” for work on Rio Tinto Yandi
Slide 14: Training and people
Training and people For personal use only Approximately 1000 employees at 30 June 2014 and remain at similar levels as activity continues on key projects Dedicated training centre provides cost effective and flexible training schedules to ensure efficient mobilisation of project teams Strong commitm
Slide 15: Order book
Order book For personal use only Order book at 30 June 2014 of $111m excludes work under recurring framework agreements A further $94m of orders secured post year end Construction awards at CLB Phase B and Sino Iron provide good visibility into FY15 Tendering activity remains high across the busines
Slide 16: Market conditions
Market conditions For personal use only Competition increased significantly during the year as volume of new construction work decreased Clients became more commercially focussed Increase in time taken to bid and negotiate contracts leading to delayed awards Move away from EPCM model as clients seek
Slide 17: Iron Ore and mining
Iron Ore and mining For personal use only Peak construction in iron ore has passed but will remain main revenue contributor SCEE strongly positioned with Rio Tinto, BHP and Sino Iron and exposed to construction, sustaining capital and operations phases - E&I component of spend increases from 3-5% in
Slide 18: LNG and CSG
LNG and CSG For personal use only Peak construction in LNG and CSG still to come Disappointing not to secure more of initial awards on LNG plants but hopeful of securing further work KSJV subcontract for electrical services with Bechtel on APLNG provides presence on Curtis Island into FY15 Positioni
Slide 19: Strategy
Strategy For personal use only Looking to considerably increase recurring revenues from operations & maintenance and sustaining capital over three to five years through organic growth and acquisition opportunities (targeting $100m-$150m p.a. by FY16) Actively monitoring and evaluating potential grow
Slide 20: Solid operating platform
Solid operating platform For personal use only Strong balance sheet and order book at 30 June 2014 Proven operational processes and systems successfully delivered CLB Phase A and Tropicana Gold on time and budget Actively managing overhead base to ensure appropriate balance between cost control and
Slide 21: Conclusion
Conclusion For personal use only FY14 saw significantly tougher resource sector conditions which we expect to continue into FY15 But we enter the year with a solid balance sheet and near record order book and continue to see a strong pipeline of available work Operations & maintenance and sustaining
Slide 22: Non-IFRS financial information
Non-IFRS financial information For personal use only 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 accordance with IFRS and there
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,