Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — H1 FY2021 Earnings Presentation
19 slides from Southern Cross Electrical Engineering's earnings presentation, Feb 24, 2021
Slide 1: Half Year Ended 31 December 2020 Results Presentation
For personal use only Half Year Ended 31 December 2020 Results Presentation 24 February 2021 1 Half Year Results FY21
Slide 2: About SCEE
About SCEE Electrical Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, communication Contractor For personal use only and maintenance services company recognised for our industry leading capabilities Diversification Established in 1978 in WA, and primarily s
Slide 3: Highlights
Highlights Financial Operational Outlook For personal use only Half year revenue of $135.4m down 27% Acquisition of Trivantage Group Expecting significantly expanded H2 with on previous period completed on 16 December works carried over from H1 and Revenue reduced in half due to later Significant co
Slide 4: Reduced first half activity, greater second half expected
Reduced first half activity, greater second half expected Half year revenue of $135.4m down 27% on previous period Summary financials: For personal use only Later than expected award of Rio Tinto Gudai-Darri and delays in H1 21 H2 20 H1 20 execution of other resources projects into second half reduc
Slide 5: Revenues by sector
Revenues by sector Resources revenues growing again after reaching a low point in FY20 For personal use only Infrastructure activity declined following completion of major transport infrastructure projects in FY20 H2 FY20 H1 FY21 $185m $135m $25m $39m $88m $64m Commercial Infrastructure Resources $7
Slide 6: Strong balance sheet and debt free
Strong balance sheet and debt free Balance sheet summary: For personal use only Balance sheet remains strong with cash of $53.3m at 31 December 2020 ($55.3m at 30 June 2020) despite net cash outflow of $21.3m for Trivantage acquisition and $7.2m FY20 final dividend paid in period Dec 20 Jun 20 No de
Slide 7: Cash flow
Cash flow $22.0m working capital inflow from closing out completed FY20 projects and receipt of advance payments on new resources projects For personal use only Net cash payment of $21.3m for Trivantage acquisition and $7.2m FY20 final dividend paid 7 Half Year Results FY21 7
Slide 8: Order book reaches record half billion dollars
Order book reaches record half billion dollars Record secured order book of $500m includes $60m contribution from Trivantage For personal use only Resources work continues to grow Future works balanced across the three sectors Jun 20 Dec 20 $440m $500m $110m $165m $175m Commercial Infrastructure Res
Slide 9: Strategy and sector outlooks
For personal use only Strategy and sector outlooks 9
Slide 10: Current projects and services
Current projects and services WA NT QLD For personal use only Resources MARBL JV Kemerton Lithium Plant Rio Tinto Gove Arrow MSA ERA Ranger Mine MSA Major supermarkets and retail Commercial Rio Tinto Gudai-Darri Rio Tinto - Cape Lambert, Tom Price, Energy Queensland Services Agreement Infrastructure
Slide 11: Strategy
Strategy SCEE primarily sees itself as an electrical and associated services For personal use only contractor diversified across the resources, commercial and infrastructure sectors Our growth strategy falls in two parts: • To continue to deepen our presence and broaden our geographic diversity in t
Slide 12: Sector outlooks
Sector outlooks Resources activity has rebounded since the low levels of FY20 For personal use only Kemerton Lithium Plant, Rio Tinto Gudai-Darri and Rio Tinto Gove will be strong revenue contributors in second half Pipeline continues to grow as commodity prices high – seeing significant opportuniti
Slide 13: Infrastructure peak coming
Infrastructure peak coming For personal use only Macromonitor, January 2021 13 Half Year Results FY21 13
Slide 14: Trivantage
Trivantage For personal use only Acquisition substantially increases SCEE’s exposure to recurring and service & maintenance style work Offers considerable cross-selling opportunities: Trivantage is a leading specialised electrical services • Supplying Trivantage switchboards across the SCEE, provide
Slide 15: Datatel refocusing
Datatel refocusing Following completion of large-scale NBN construction roll-out For personal use only in early FY21 Datatel business has been restructured and refocused Datatel will extend its existing capabilities to become services and minor projects division of SCEE Particular focus on education
Slide 16: Conclusion and outlook
Conclusion and outlook • Half year revenue of $135.4m down 27% on previous period For personal use only • Major resources projects ramp-up slower than originally forecast but visibility of work for second half • EBITDA* of $9.7m down 9%, EBIT* of $7.3m down 9% and NPAT of $4.5m down 15% on previous
Slide 17: Corporate summary
Corporate summary For personal use only Capital Structure Shareholders at 11 February 2021 ASX Code SXE Thorney Investments 17.8% Share Price (22 February 2021) 56.0c First Sentier Investors 9.3% No. of ordinary shares 248.1m Perennial Value Management 5.3% Market Capitalisation (22 February 2021) $
Slide 18: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation SCEE’s results are reported under International H1 21 H2 20 H1 20 For personal use only Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. $m $m $m The Company discloses certain non-IFRS Contract revenue 135.4 184.8 230.3 me
Slide 19: Disclaimer
Disclaimer Some of the information contained in this presentation given in this presentation is given for illustrative purposes only For personal use only contains “forward-looking statements” which may not directly and should not be relied upon as (and is not) an indication of or exclusively relate
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