SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — AGM Information 2009

Oct 28, 2009

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SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

29 October 2009

The Manager

Company Announcements Office Australian Stock Exchange Limited Level 4, Stock Exchange Centre 20 Bridge Street SYDNEY NSW 2000

ELECTRONIC LODGEMENT

Dear Sir or Madam

Annual General Meeting Presentation

Please find attached a copy of the Chairman’s script and presentation to be delivered at the annual general meeting of Southern Cross Electrical Engineering Ltd (ASX:SXE).

Yours Faithfully

Stephen Fewster

Company Secretary

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A.B.N. 92 009 307 046 EC 001681 41 MACEDONIA STREET, NAVAL BASE, WESTERN AUSTRALIA 6165 TELEPHONE: +61 89410 1833 FAX No: +61 8 9410 1210 Email: scee@scee.com.au

SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

Chairman’s script for the AGM to be held on 29 October 2009 at 10:00 am

1. Welcome

Chairman : Good morning, ladies and gentlemen. I am Frank Tomasi, the Chairman of Southern Cross Electrical Engineering Limited. It is now 10:00 am. I welcome you to the annual general meeting of the company.

2. Quorum

Chairman : As we have a quorum, I now declare the annual general meeting open.

3. Directors

Chairman : I will now introduce your directors:

Mr Stephen Pearce, the Managing Director of the Company

Mr Brian Carman, a non-executive director and Chairman of the Remuneration and Nomination Committee and a member of the Audit and Risk Committee.

Mr John Cooper, an independent non-executive director, Chairman of the Audit and Risk Committee and a member of the Remuneration Committee.

Mr Douglas Fargher, an independent non-executive director, member of the Audit and Risk Committee and a member of the Remuneration Committee.

Mr Stephen Fewster, our Company Secretary.

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4. Auditors

Chairman : Mr Robert Gambitta, a partner of KPMG, the company’s auditor, is also present.

5. Voting

Chairman : Each shareholder who registered today would have received a (blue) voting card. On a show of hands I will ask you to raise the voting card to assist the counting of votes. That card will also be used for the holding of a poll, if one eventuates.

6. Notice of Meeting

Chairman : The notice of meeting was dispatched to all shareholders. If there is no objection, I propose that the notice of meeting be taken as read.

Chairman : Then I’ll put the motion. All those in favour of taking the notice of meeting as read, please raise your (blue) voting card.

Against …..

I declare the motion carried.

7. Procedure for the meeting

Chairman : As is common practice with most companies, the financial reports and the directors’ and auditors’ reports will be tabled, but will not be the subject of a resolution (as it is not required by the Corporations Act).

I will give a short address and I will then ask your CEO to address you.

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Shareholders will then have the opportunity to comment and ask questions.

The first item of business is a Corporations Act requirement to consider a non-binding or advisory resolution on the adoption of the remuneration report, which I set out in the directors’ report.

The second item of business is the re-election of Mr Gianfranco Tomasi as a director. Under the Corporations Act and the company’s constitution, certain directors, other than the Managing Director, must retire at the AGM and may offer themselves for election or re-election.

8. Financial Reports

Chairman : Before I present my chairman’s address, it is appropriate for me to advise that, under the Corporations Act, the company is obliged to lay before this meeting the last audited financial statements and reports, which were circulated, and which were dated 30 June 2009.

I will now present my chairman’s address.

Chairman’s address

2009 was the first full year for Southern Cross Electrical Engineering as a listed entity and it is particularly pleasing to report record financial and operating results in what was an extremely challenging time in terms of economic uncertainty.

This uncertainty has clearly had an impact on the progress of both large and small projects with the commencement of construction being delayed due to funding constraints, and both commodity price and demand uncertainties.

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On a positive note we are now seeing quite a number of large and small projects progressing to construction both in Australia and overseas.

There has been a significant amount of coverage by the press in terms of the large scale projects in the mining and oil and gas sector in our home state of Western Australia and we have been working hard to ensure we can both take advantage of the opportunities and meet the challenges that these larger projects provide.

Regardless of the size of the project, the country it is located in, or the commodity that underpins the project the core value that we offer at SCEE does not and has not changed, i.e.

• Safety of our team;

• On time delivery and;

• With the highest level of quality.

Subsequent to year end SCEE was nominated for and won a number of key industry awards for the National Electrical and Communications Association and this is something we are very proud of.

We have been awarded the WA Occupational Health and Safety award for a large industrial project and also the WA award for the overall large industrial category for the work we completed at the Cape Lambert 80mtpa upgrade for Rio Tinto, at Cape Lambert in the north of WA. We now go onto the national awards for both categories in November and I look forward to informing you of our success at a later date.

Thank you as shareholders for your ongoing support of the company and particular thanks to the management team and employees for delivering these outstanding results.

I will now hand over to Mr. Stephen Pearce the Managing Director for his presentation.

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Managing Director

From an operational perspective 2009 was an outstanding year. Our safety record is something we are very proud of with a 0 LTI result for 2009.

All projects were delivered on time and within expectations from a margin perspective. Revenue was up 19% to $100 million with corresponding increases to both earnings per share and dividends per share. The company continues to have a very strong balance sheet with good levels of cash on hand post the two acquisitions. With no debt SCEE remains well positioned to see through any remaining uncertainty and then take advantage of opportunities as they arise.

Not only were the financial results pleasing but we have spent significant effort putting in place the key building blocks to ensure Southern Cross Electrical Engineering’s success in the years ahead.

We now have the full senior management team in place and developed and put into action the key strategic initiatives. We have completed two acquisitions, Hindle Offshore Services which is largely focused on electrical maintenance and inspection to the offshore exploration industry and KJ Johnson providing power line construction services for the resources industry. Both acquisitions were based around our core skills sets, are immediately EPS accretive and can themselves grow strongly in the years ahead with the number and scale of projects progressing to construction and operation in their key markets.

I won’t dwell on these numbers today but just a few key points:

• Operating cash flow for the year was strong and closely matches the profit for the underlying business. This gave

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the Board confidence to declare an increase in the final dividend given the strong cash flows and the overall strength of the balance sheet to which I referred earlier.

Turning to the major projects that we completed in the financial year;

• Cape Lambert Upgrade was the largest project completed in the year having commenced in March 2008. It is a credit to the team in Perth and on site and as Frank mentioned this was recently recognised in being award the two key industry awards.

• Hope Downs South was another very successful project for Southern Cross Electrical Engineering following on from the initial Hope Downs contract completed in the prior year.

• Again congratulations to the Southern Cross Electrical Engineering team and I think that they were unlucky to be pipped for the overall industry award by the Cape Lambert team.

• Boddington - the original Boddington contract was a smaller size contract but typically of SCEE we got in, delivered and were then asked back for some ongoing commissioning and completion work which is only just concluding this week.

• Buzwagi - this was a project for Barrack in Tanzania and it is a great example of how Southern Cross Electrical Engineering have successfully delivered projects in Africa over many years. With an experienced team based in Perth headed by Rex Gardner, and a small SCEE Australian crew that have delivered many projects around the world; The small Australian crew is complimented by South American electricians and at times up to 100 local Tanzanian workers and saw the project completed and first gold poured for the Client on time.

The Four Pillars of Growth – The focus for SCEE looking forward is around the four key pillars of growth. Each of these pillars

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provides key growth opportunities across our core value proposition and skills set and as I mentioned earlier the acquisition of Hindles provides a specialist skills set in the oil and gas space while the acquisition of KJ Johnson expands our existing capacity within the infrastructure segment.

While many of the larger projects capture the headlines we are also seeing a number of small to mid size projects progressing. These projects, particularly in the area of gold and other key commodities, remain a core focus area for Southern Cross Electrical Engineering. The focus on securing 2010/11 core contract revenue remains a priority with anticipated award dates in coming weeks.

Oil and gas project in and around WA, Queensland and Papua New Guinea provide an exciting opportunity for Southern Cross Electrical Engineering and we have been working hard to position ourselves for success in this segment over coming years.

The two acquisitions are performing as expected when we acquired the businesses. Integration is progressing as planned we are now looking to grow each of the businesses.

And finally I would also like to extend my thanks to all of the team at Southern Cross Electrical Engineering both those based in Perth and those that are working in remote locations.

It’s a great team effort that delivers great team results, Thank you.

Chairman : Thank you, Mr Pearce.

Chairman : No resolution is required, but I now invite shareholders to comment or ask questions on the financial reports of the business of the company.

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I would ask that questions on other agenda items be deferred until we come to that item.

Questions may also be asked of the auditors in relation to the conduct of the audit, content of the audit report, accounting policies adopted by the company and the independence of the auditor in carrying out the audit.

Could you please address all questions to the chair and if you wish to speak could you please move to a microphone so that all shareholders can hear your comment or question?

When I direct, please state your name before speaking and hold your (blue) voting card so that I can see that you are a shareholder.

Are there any comments or questions?

(Shareholder comments and questions).

As there are no further questions, we will now move to the first item of business.

9. Remuneration Report

Resolution 1

Chairman : Under the Corporations Act, listed companies are now required to include as part of their directors’ report a remuneration report, which includes specified information.

The directors have prepared a remuneration report to 30 June 2009 and it is included in the annual report on pages 17 to 23.

The Act also requires companies to put to shareholders a nonbinding vote to enable shareholders to voice their opinion on matters included in the report.

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After the motion has been moved there will be time for comments and questions.

I now move that the remuneration report for the period 30 June 2009 be adopted by passing an ordinary resolution as set out in the notice of meeting.

Chairman : Are there any comments or discussion?

(Comments)

Before I put the motion, I will advise you of the proxy votes received, which are as follows:-

For 103,042,485 Against 102,674 Abstain 93,000 Open proxies 567,926

The number of open proxies in favour of the chairman of the meeting at the time of the meeting will be voted in favour – 567,926.

I will now put the resolution.

All those in favour of ordinary Resolution 1, that the remuneration report be adopted, please raise your (blue) voting card.

Against ………

I declare the motion carried.

10. Re-Election of Mr Gianfranco Tomasi

Resolution 2

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Chairman : We will now move to Item 2 on the agenda, the election of directors.

As I am standing for re-election I will now ask Mr Cooper to chair the meeting for this agenda item.

(Mr Cooper chairs the meeting)

As stated in the notice, Mr Gianfranco Tomasi must retire at the AGM and is eligible for re-election.

Mr Tomasi’s details are set out in the directors’ report on page 10 of the annual report, so I will not repeat those details.

I should tell you that each of the directors, other than Mr Tomasi, recommends the re-election of Mr Tomasi.

I have pleasure in moving that Mr Tomasi, who retires by rotation under rule 5.1 of the company’s constitution, and being eligible, is re-elected a director of the company.

Are there any comments or questions:

Before I put the motion, I will advise you of the proxy votes.

The proxy votes received areas follows:-

For	103,229,209
Against	0
Abstain	10,000
Open proxies	566,876

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The number of open proxies in favour of the chairman of the meeting at the time of the meeting will be voted in favour – 566,876.

I’ll now put the motion.

Mr Tomasi will not vote on this matter.

All those in favour of the ordinary resolution to re-elect Mr Tomasi as a director, please raise your (blue) voting card.

Against ….

I declare the motion carried and Mr Tomasi will again chair the meeting.

11. Closure

Chairman : That ends the meeting which I now declare closed.

I now invite shareholders who may have questions or comments not related to the specific business of the meeting to speak.

(Shareholder comments and questions).

Thank you all for your attendance and interest and we look forward to your continued support in the coming year.

Please join us in the foyer for light refreshments

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AGM Presentation

Thursday, 29[th] October 2009

Chairman’s Address Mr. Frank Tomasi

Chairman’s Address

• •Record results in challenging times

• •Strong operational performance and financial position

• •Project pipeline presents opportunities and challenges

• •SCEE’s core value proposition remains unchanged

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Managing Director’s Address Mr. Stephen Pearce

Group Highlights

• 0 LTI’s

• All projects delivered within expectations

• Won monthly safety award at Cape Lambert upgrade 6 out of 10 times

• Revenue up 19% to $100.3m

• EBITDA up 66% to $26.9m (35% increase pre IPO costs)

• EPS up 27% to 12.9cps

• Full year dividend 6.5cpsff (FY08 6.0cpsff)

• Generated $15.7m cash from operating activities

• Strong balance sheet with net cash of $31.0m at 30 June

• Full senior management team in place

• Completed strategic planning process

• Acquired Hindle Electrics and K.J. Johnson & Co

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Financial Highlights

		FY09	FY08	Change
Revenue	$m	100.3	84.2	16.1
EBITDA	$m	26.9	16.2*	10.7
NPAT	$m	15.5	11.3*	4.2
Operating cash flow	$m	15.7	9.9*	6.1
EPS	cps	12.9	10.1*	2.8
DPS	cpsff	6.5	6.0	0.5
ROE	%	41.3%	49.1%	(7.8%)

• Includes pre-tax IPO costs of $3.7m

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Major Project Overview

Cape Lambert Upgrade

• Contributed approx 34% of revenue

• Won safety award at Cape Lambert upgrade 6 out of 10 times

• Work completed June

• Zero LTI’s

Hope Downs

• Contributed approx 19% of revenue

• Lump sum margins in line with expectations

• Work completed May

• Zero LTI’s

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Major Project Overview

Boddington

• Contributed approx 7% of revenue

• Work is continuing

• Assisting with the final commissioning process

Buzwagi

• Contributed approx 21% of revenue

• Lump sum margins in line with expectations

• Work completed in July 2009

• Zero LTI’s

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Looking Forward

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Four Pillars of Growth SCEE’s Market Position

• SCEE Ltd

• Mining Mining Infrastructure Oil & Gas

• Australia International

• • Bulk material • Bulk material • Port facilities • Refinery handling handling • Harbour container shutdowns

• • Process plant • Process plant cranes • Hazardous area relocations relocations installations • Power generating

• • Shutdown work • Shutdown work • Offshore / • O/head power onshore

• • Dredging • Dredging facilities lines construction

• facilities • Smelters • Communications • Instrument

• • Smelters calibration

• • Pre-commission works

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Looking Forward

• •Large and small projects moving forward

• •People, systems and capacity in place

• •Focus on securing 2010/11 project pipeline

• •Mining Projects remain key focus

• •Oil and Gas present significant opportunity

• •Value realisation from acquisitions

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Formal Meeting Process

Resolution 1 – Adoption of Remuneration Report

For	103,042,485
Against	102,674
Abstain	93,000
Open proxies	567,926

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AGM Presentation THANK YOU Thursday, 29[th] October 2009