Southern Cross Electrical Engineering : Investor Presentation - Half Year Results

onlyHalf Year Ended 31 December 2021 useResults Presentation

personalr

28 February 2022

Our businesses

onlyuse

Southern Cross Electrical Engineering Limited ("SCEE Group") is

a national electrical, instrumentation, communications and

maintenance services company established in 1978 and listed in

2007 (ASX:SXE). The acquisitions of Datatel in 2016, Heyday in

2017 and Trivantage in 2020 means the SCEE Group now

operates across three broad sectors of Infrastructure,

Commercial and Resources

SCEE Electrical is the

Datatel is a telecoms and

Heyday is a NSW and

S.J. Electric is a

SEME Solutions

Trivantage Manufacturing is a

original operating

communications specialist

ACT-based electrical

national provider of

provides electronic

leading manufacturer of

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business, historically

and provides services to the

contractor servicing the

electrical and

security services to

premium quality switchboards

focussed on resources

education, health,

commercial and fit-out

maintenance services

the resources, law

to a range of end users both

nd industrial work

government, resources and

sectors, and the retail,

to supermarkets, and

enforcement,

internally in the Group and

but more recently

transport sectors

education, health,

the retail and

custodial, industrial,

externally to customers

diversified into

hotel, defence,

commercial sectors

and health sectors

transport,

datacentre, and

infrastructure,

residential sectors

defence, utilities, and

renewables

Results 2021 December 31 Year Half

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EBIT* of $9.8m up 34% on PCP NPAT of $6.7m up 48% on PCP

EBITDA* of $14.1m up 46% on PCP

Announced $200m of new work including:

• Western Sydney International Airport

- largest win in group's history

• Rio Tinto Tom Price battery storage - major renewables project

• BHP Villages Security project - cross- selling services from SCEE Electrical, Trivantage and Datatel

Decmil arbitration at pleading phase with hearing expected late 2022

Co-locatedSCEE, Datatel and Trivantage WA businesses into Perth CBD head office

Subdued Sydney commercial building activity following from lockdowns and restrictions which now passing

Operations

Resources SCEE's largest sector for first time since H1 FY17

Rio Tinto Gudai-Darriand Albemarle Kemerton Lithium Plant at very high activity levels

Highlights

H1 FY22

Record half of revenue of $253.0m up 87% on PCP

onlyRecord workforce of 2,000 Profit ahead of consensus:

•

•

•

useResult included $1.1m intangibles amortisation for Trivantage acquisition

Strong balance sheet with cash of $49.9m and no debt

Record order book of $550m personalDeclared fully franked 1.0 cent per share

dividend to be paid 13 April 2022

* EBIT and EBITDA are non-IFRS financial measures, for a reconciliation to statutory results see Appendix

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Outlook

Reaffirming targeting FY22 revenues of circa $500m and EBITDA in range of $29m-$33m

Opportunities presenting in resources sector although noting WA Omicron break out impact unclear in near term

Commercial sector rebounding with multiple tenders submitted

Infrastructure very strong with Sydney Metro and "soft" infrastructure opportunities - hospitals, government buildings, datacentres and education

In advance negotiations for over $100m of new awards across multiple sectors

Investigating acquisition opportunities	Half
	Results 2021 December 31 Year
	3

Coronavirus and workforce

Coronavirus

East Coast lockdowns resulted in total Sydney construction onlyshutdown for part of July and later shutdowns in Victoria

Costs minimised as workforce stood down with works delayed rather than lost

Subsequent isolation requirements following Omicron spread disrupted activity

useOtherwise operations generally continued as planned although coronavirus continues its insidious effects on work methodologies requiring development of work-arounds

Unclear impact Omicron break out will have on WA resources sector but SCEE will follow client site

personalrequirements r

Workforce

Notwithstanding interstate travel restrictions added further 200 employees in WA to service resources sector to make record workforce

SCEE workforce adequate to service client requirements

Easing of WA travel restrictions from 3 March may assist with accessing further labour

Results 2021 December 31 Year Half

4

Further record half of revenue

Revenue of $253.0m broke previous half's record revenue	Summary financials:
(H2 FY21: $234.8m) and up 87% on prior corresponding
only		H1 22	H1 21	%
period despite subdued activity levels in parts of East
Coast business		$m	$m
Significant revenue contributors in half were Albemarle	Revenue	253.0	135.4	86.8%
Kemerton Lithium Plant and Rio Tinto Gudai-Darri Mine
Gross Profit	33.3	21.7	53.5%
Phase 1 and Trivantage contributed for full period
Gross profit up 54% even though prior corresponding	Gross Margin %	13.2%	16.0%	-
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period included JobKeeper receipts of $6.6m	Overheads	19.5	12.2	59.8%
EBITDA* of $14.1m up 46%	EBITDA	14.1	9.7	45.7%
EBITDA %	5.6%	7.2%	-
NPAT of $6.7m up 48% and which includes $1.1m
EBIT	9.8	7.3	33.8%
intangibles amortisation for Trivantage acquisition
EBIT %	3.9%	5.4%	-
	NPAT	6.7	4.5	48.2%
personalr	NPAT %	2.6%	3.3%	-
* EBITDA and EBIT are non-IFRS financial measures, for a reconciliation to statutory results see Appendix

Results 2021 December 31 Year Half

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