Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — FY2015 Earnings Presentation
26 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 26, 2015
Slide 1: Full Year Results Presentation
For personal use only Full Year Results Presentation Year Ended 30 June 2015 26 August 2015
Slide 2: 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 projects across Australia power line distribution, switchyards and and overseas throughout their life cycle
Slide 3: Highlights
Highlights For personal use only Statutory loss after tax of $9.8m; underlying trading profit after tax of $4.2m* Underlying trading revenue increased by 10% on PCP but was offset by lower margins Financial Strong balance sheet with $44.6m of cash and no debt at 30 June 2015 Fully franked dividend o
Slide 4: FY15 projects
For personal use only FY15 projects 3
Slide 5: Significant FY15 projects
Significant FY15 projects For personal use only Rio Tinto Cape Lambert Phase B - Completed E&I works included the car dumpers and screenhouse; award value over $80m and peak manning 480 BHP Billiton Iron Ore Yarnima Power Station – Completed Awarded over $25m of E&I works at the Yarnima Power St
Slide 6: Full year financial result
Full year financial result For personal use only FY15 statutory result impacted by a NPAT number of one-off items: $m • Restructuring initiatives Statutory loss after tax (9.8) implemented to ensure the Add back: business is appropriately organised and efficient for current market Organisation restr
Slide 7: Full year financial performance
Full year financial performance For personal use only Revenue increased but challenging market Underlying conditions continue to impact margins FY15* FY14 Change $m $m % Solid H1 as key projects secured and commenced in FY14 were successfully Revenue 240.6 218.2 10% closed out Gross profit 35.6 43.8
Slide 8: Revenues by operating division
Revenues by operating division For personal use only Main Contributors: SCEE Infrastructure BHP Billiton Yarnima Power Station BHP Billiton Iron Ore Sustaining Capital Queensland Coal Seam Gas SCEE Construction Rio Tinto Cape Lambert Port B Phase B CITIC Pacific Sino Iron Civmec Nammuldi
Slide 9: Balance sheet
Balance sheet For personal use only Strong balance sheet throughout the year Jun 15 Jun 14 $m $m Cash of $44.6m and debt free at 30 June Current assets 92.0 98.6 Historical claims settled and enhanced confidence in collectability of remaining WIP Non current assets 31.6 48.0 and debtors Total assets
Slide 10: Cashflow
For personal use only Cashflow 9
Slide 11: Financial trends
Financial trends For personal use only Note - FY15 Revenue, Gross Profit and Net Profit After Tax are presented on an underlying trading basis. 10 A detailed reconciliation of statutory to underlying trading results can be found on slide 23.
Slide 12: Dividends
Dividends For personal use only Fully franked dividend of 2.7 cps declared Maintained at same absolute level as prior two years Strikes balance between delivering returns to shareholders and retaining capital for growth opportunities Record date: 21 September 2015 Payment date: 15 October 2015 Frank
Slide 13: Health, safety and people
Health, safety and people For personal use only Performing our work safely remains our highest priority and we are now over eleven years LTI free in Australia Employee numbers dropped during H2 as activity slowed but have increased significantly over recent months as key projects ramped up Now aroun
Slide 14: NECA WA 2015 Awards
NECA WA 2015 AWARDS For personal use only National Electrical and Communications Association (NECA) WA Awards were held on Friday 21 August SCEE awarded Certificate of Commendation in the Industrial Large Project category for work on Rio Tinto Cape Lambert Phase B project Daniel Cocker was the 2015
Slide 15: Order book
Order book For personal use only Order book at 30 June 2015 of $111m A further $30m of work is forecast to be performed under already awarded reimbursable contracts Excludes work under recurring framework agreements Tendering remains high but bid process highly competitive 14
Slide 16: Moving into FY16
Moving into FY16 For personal use only Entered the year at high activity levels as key projects ramped up Order book provides solid baseload of FY16 work Current projects progressing well and are profitable All claims relating to projects operationally complete in previous calendar years now settled
Slide 17: Market conditions
Market conditions For personal use only Current conditions expected to continue for the foreseeable future Clients remain focussed on cost resulting in highly competitive tendering and lower margins Pipeline of new large scale resources construction work has reduced as a result of depressed commodit
Slide 18: Iron Ore
Iron Ore For personal use only Remains a core commodity and expected to provide the majority of revenues in FY16 Activity on CITIC Pacific Sino Iron has ramped up Recently commenced work at Roy Hill both for Decmil and directly to Samsung Continuing to build our relationship with BHP Billiton Iron O
Slide 19: LNG and CSG
LNG and CSG For personal use only Continuing to work for Bechtel on Australia Pacific LNG project through KSJV Multiple Australian LNG projects currently in construction with E&I requirement expected to hit peak in FY16 continuing into FY17 We remain hopeful that KSJV will secure work on one or more
Slide 20: Other Mining
Other Mining For personal use only Expect coal to remain depressed in the near term Continue to view metals and minerals as a spot market and will bid opportunities as they arise Tendering for work through our Peruvian subsidiary 19
Slide 21: Board and management changes
Board and management changes For personal use only Perth based Board sized for the current conditions Broad range of operational and corporate experience to align with growth strategy Leaner management structure but have retained capability and capacity to effectively execute core business and drive
Slide 22: Strategy
Strategy For personal use only The Board remains committed to targeting growth both organically and through acquisition With a reduced pipeline of work in the domestic resources construction sector alternative revenue streams are being explored Evaluating potential expansion into other geographies a
Slide 23: Conclusion
Conclusion For personal use only FY15 was challenging but action has been taken to ensure the business is appropriately sized for forecast activity levels Despite the highly competitive conditions the business delivered an underlying trading profit Strong balance sheet with cash of $44.6m and no deb
Slide 24: 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 25: Non-IFRS financial information (cont.)
Non-IFRS financial information (cont.) For personal use only EBIT and EBITDA are a non-IFRS earnings measure which do not have any standard meaning prescribed by IFRS and therefore may not be comparable to EBIT and EBITDA presented by other companies. EBIT represents earnings before interest and inc
Slide 26: 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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