Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Euroz Investor Seminar (November 2011)
21 slides from Southern Cross Electrical Engineering's conference presentation, Nov 10, 2011
Slide 1: Euroz Investor Seminar
For personal use only Euroz Investor Seminar 10 November 2011 Simon High Chris Douglass CEO CFO
Slide 2: Presentation overview
Presentation overview For personal use only • Financial Summary of 2010/11 • Non Financial Achievements 2010/11 • Current Operational Review • Strategy and Outlook • Summary 1
Slide 3: FY11 financial overview – profit & loss
FY11 financial overview – profit & loss For personal use only 6 months to H2 FY 11 Highlights • Satisfactory resolution of Pluto ($m) Dec 2010 Jun 2011 Change FY11 • Award of Cadia/Sino/Pueblo Sales Revenue 47.3 54.5 101.8 Viejo/Mining Area C contracts Gross profit 2.3 13.9 16.2 • KJ Johnson returne
Slide 4: H1 FY11 issues
H1 FY11 issues For personal use only • Extremely low work‐in‐hand • BD efforts not focussed sufficiently on “short term” prospects • High overheads • Uncertainty regarding financial performance of Pluto • Extremely competitive contracting environment – many bidders and low margins • Gorgon bid and c
Slide 5: Non Financial Achievements
Non Financial Achievements For personal use only • 7th consecutive LTI free year • Full review of bidding processes, norms, capacity and competency • Greater focus on monthly project management reporting and peer reviews • Commenced upgrading of project management systems (SCEEtrak) • Board changes
Slide 6: 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 5
Slide 7: Minerals and Processing - Australia
Minerals and Processing ‐ Australia For personal use only Iron ore to underpin business over the next 5 years on the West Coast and entry into coal projects on the East Coast Major upcoming opportunities • Secured long term framework agreements: Sino Iron RTIO 333mtpa Rio Tinto expansion projects
Slide 8: 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 9: 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 • Combination of lump sum and reimbursable contracts • Framework agreement now providing additional orders SCEE Headcount at Si
Slide 10: Oil & Gas - Australia
Oil & Gas ‐ Australia For personal use only Established credibility ‐ in strong contention for CSG projects • Pluto project achieved a successful completion Major upcoming opportunities and satisfactory commercial result – market credibility established East Coast West Coast • Oceanic Industries acq
Slide 11: Infrastructure - Australia
Infrastructure ‐ Australia For personal use only Major upcoming opportunities Strong bounce‐back Rio Tinto BHP • Substantial growth expected in FY12 off the back Sino Iron of increased mining investment FMG • KJJ acquisition fully integrated and performing East Coast well Current major projects • Si
Slide 12: Minerals and Processing - International
Minerals and Processing ‐ International For personal use only Focus to be Peru Major upcoming opportunities • Expect activity in Peru to increase Minas Congas • Undertake at least one major project each year Cerro Verde • Pueblo Viejo project tracking in line with Constancia expectations Torromocho
Slide 13: Operational Support and Maintenance
Operational Support and Maintenance For personal use only Building recurring revenues Major upcoming opportunities • Queensland weather events impacted H2 Expansions of: • Growing a recurrent revenue base to provide a consistent baseline of revenues RTIO agreement BP framework agreement • Expansion
Slide 14: SCEEtrak Development Project
SCEEtrak Development Project For personal use only • Business intelligence software development • Develop processes, technologies and tools to change data into information, information into knowledge and knowledge into plans to guide the company • Executed as an internal project with dedicated Proje
Slide 15: Systems Map
Systems Map For personal use only TENDERS PROJECTS OPS SUPPORT FINANCE Estimating Scheduling Payroll Procurement (WINEst) (Primavera) (Levesys) Scheduling Document Control Accounts Materials Management (Primavera) (DocTracer) (Levesys) Document Control Reporting General Ledger Material Control (DocT
Slide 16: Strategic objectives
Strategic objectives For personal use only The three year objectives are to organically grow with a core focus on Australia and an international focus on opportunities with major international clients in Peru, building the Operational Support and Maintenance line of business, so as to : • Grow reven
Slide 17: Orders – lead indicator of revenues
Orders – lead indicator of revenues For personal use only 120 Orders 100 won current $75m FY12 80 $75m Mining Australia FY11 revenue Mining International 60 Operational Support Infrastructure 40 $27m Oil & Gas 20 0 June 2010 June 2011 October 2011 N.B Does not include Rio 333mtpa preferred status O.
Slide 18: Employee numbers over the past months
Employee numbers over the past 12 months For personal use only 1000 900 FY 2011 FY 2012 800 700 600 500 Australian Employees Overseas Employees 400 Total Employees 300 200 100 0 17 November 2011
Slide 19: Delivery of strategy – on track
Delivery of strategy – on track 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 signa
Slide 20: 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 Significant new project awards • Successful completion of Pluto contract position
Slide 21: 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
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