24 slides from Southern Cross Electrical Engineering's earnings presentation, Sep 16, 2010
Slide 1: 2010 Annual Results Presentation
For personal use only 2010 Annual Results Presentation
Slide 2: Presentation Overview
Presentation Overview For personal use only • 2010 full year results • Four pillars • Safety and people • Strategy • Summary & Outlook 1
Slide 3: 2010 Financial Results
2010 Financial Results For personal use only 2
Slide 4: Group Highlights
Group Highlights For personal use only • Underlying NPAT $11.7m (excludes business acquisition costs of $3.0m) • Statutory NPAT $8.7m Financial • Australian SCEE revenue up 3% • 6.5 cps fully franked dividend for 2010 • Solid contribution from acquisitions • Sixth year in a row with 0 LTIs • $40m of
Slide 5: Financial Overview
Financial Overview For personal use only Jun 10 Jun 09 % change Sales revenue $m 93.4 100.3 -6.9% EBITDA $m 18.3 26.9 -32.0% Underlying NPAT $m 11.7 15.5 -24.5% Statutory NPAT $m 8.7 15.5 -43.9% NPAT margin % 12.5 15.4 -19.4% EPS cps 7.1 12.9 -45.0% DPS cps ff 6.5 6.5 0.0% Return on equity % 18.3 37
Slide 6: Historical Financial Performance
Historical Financial Performance For personal use only SCEE Five Year Gross Profit SCEE Five Year EBITDA SCEE Five Year NPAT 40 30 20 $ Millions $ Millions $Millions 25 30 20 15 20 15 10 10 10 5 5 0 0 0 FY06 FY07 FY08 FY09 FY10 FY06 FY07 FY08 FY09 FY10 FY06 FY07 FY08 FY09 FY10 SCEE Five Year GP % SC
Slide 7: Revenue Contribution
Revenue Contribution For personal use only Revenue by Business ($M) • Revenue from SCEE Australia 120 increased by $2.7m 100 • International revenue decreased $27.6m due to lack of projects 80 • Acquired businesses contributed 60 $21.9m • Gross margins from SCEE Australia 40 increased, however, chan
Slide 8: NPAT Contribution Analysis
NPAT Contribution Analysis For personal use only NPAT Contribution ($M) 25 20 15.5 15 10 8.7 5 - FY09 NPAT SCEE International SCEE Australia FY10 Acquisitions Acquisition Costs FY10 NPAT 7
Slide 9: Four Pillars
8 For personal use only Four Pillars
Slide 10: Minerals & Metal Australia Revenue Contribution
Minerals & Metal Australia Revenue Contribution For personal use only • Major projects included Brockman 4, Mesa A and Tiwest Mining Australia • National 2009 NECA Excellence in Other Safety Award for Cape Lambert port upgrade • National 2009 NECA Excellence in Industry Award for Cape Lambert port u
Slide 11: Oil & Gas Revenue Contribution
Oil & Gas Revenue Contribution For personal use only • Re-entry into the oil & gas space with award of Pluto off-take and storage E & I contract Oil & Gas Other • Strategically important for Group’s future growth with Gorgon construction commencing in 2011 • Safety performance recognised by NECA wit
Slide 12: Infrastructure Revenue Contribution
Infrastructure Revenue Contribution For personal use only • Major projects include Brockman 4 and Sino Iron Infrastructure • Acquisition of K.J. Johnson & Co Other increases power line capacity • Leveraging Oceanic’s presence to tender for east coast power line contracts • Large greenfield minerals
Slide 13: Minerals & Metal International Revenue Contribution
Minerals & Metal International Revenue Contribution For personal use only • 2010 was substantially lower due to a lack of international projects Mining International Other • Contributed approx $30m in 2009 • Pipeline in South America and Africa has improved with award decisions expected over coming
Slide 14: Safety and People
13 For personal use only Safety and People
Slide 15: Safety Performance
Safety Performance For personal use only SCEE TRCFR (2003 - 2010) 50 700,000 45 600,000 40 35 500,000 Hours worked 30 400,000 25 20 300,000 15 200,000 10 100,000 5 0 0 TRCFR Hours worked • 0 LTI’s recorded for last 6 years • 2007 national NECA award winner for excellence in safety • 2009 national NE
Slide 16: Our Team
Our Team For personal use only Permanent employees 90 Permanent staff retention 90% Total employees 412 Apprentices 25 Indigenous trainees 11 Training and development • Dedicated Training Supervisor and training management systems • Continued investment in hazardous area training • Leadership and me
Slide 17: National Electrical and Communication Association Awards
National Electrical and Communication Association Awards For personal use only (2010) State OH&S Excellence Category – Pluto (2009) National OH&S Excellence Category – Cape Lambert Port Upgrade (2009) National Industrial Category – Cape Lambert Port Upgrade (2007) National OH&S Excellence Category –
Slide 18: Strategy
17 For personal use only Strategy
Slide 19: SCEE – an E&I Market Leader
SCEE – an E&I Market Leader For personal use only Core values, Our Customers Our Performance • Proven track record with blue-chip customers over 32 years • Proven ability to set-up and perform in remote locations key strengths Our People Our Experience • A deeply experienced team across all levels o
Slide 20: Four Pillars
Four Pillars For personal use only Australian International Minerals & Oil & Gas Infrastructure Mining Metals Overhead power LNG downstream Process plants lines and Process plants process plant switchyards Bulk material CSG compressor Power generation Bulk material handling facilities stations facil
Slide 21: Major Minerals and Energy Projects
Major Minerals and Energy Projects (cont) For personal use only Projects – 8 Projects – 13 Cost - $67.2bn Cost - $5.2bn Projects – 6 Cost - $4.1bn Key Oil & Gas Mining & Processing Projects – 23 Cost - $25.8bn $ Source: List of Major Minerals and Energy Projects, Abare Economics, October 2009 20
Slide 22: Australian tracked projects
Australian tracked projects For personal use only Estimated E&I % of Total Estimated Expected Expected Engineering Estimated Project Description Sponsor Project E&I Contract Commenc- Completion Construction Engineering Value ($m) ($m) ement Date ($m) Construction Sino Project CITIC Pacific 1,363 954
Slide 23: Summary & Outlook
22 For personal use only Summary & Outlook
Slide 24: Summary & Outlook
Summary & Outlook For personal use only • Post GFC, key clients have re-commenced their project investment plans • Contracted revenue currently at $40m with tenders totalling approximately $250m in the decision phase • Successful re-entry into oil & gas market places SCEE in a strong position for up