SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2017

Jun 21, 2017

ASX & media announcement ASX code: SXE

22 June 2017

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Contract Awards

Highlights

• SCEE secures range of awards in the health, commercial and resources sectors

• Will end FY17 with order book over $350m of which over $250m to be performed in FY18

Southern Cross Electrical Engineering Limited (“SCEE”) is pleased to announce a number of new awards in the health, commercial and resources sectors.

Heyday

SCEE’s recently acquired Sydney-based subsidiary Heyday has been awarded the following projects:

• In New South Wales, Multiplex Constructions Pty Ltd have formally appointed Heyday to work exclusively with them on the Early Contractor Involvement (“ECI”) stage for the new Westmead Hospital Central Acute Services Building (“CASB”). The ECI process requires Heyday to work with Multiplex and all relevant health user groups to finalise a design and then a subsequent guaranteed maximum price. This will conclude around mid-August 2017 and subsequent site construction is expected to start in September 2017. The Westmead CASB project was awarded to Multiplex by the NSW Government in April 2017 and is the major construction component of the overall $900m redevelopment of the Westmead Hospital Precinct. It is programmed for construction completion in 2020 with Heyday’s scope to include the engineering design and installation of specialty electrical and communication services including patient information technology, electronic access control, nurse call systems and emergency power backup. The final Heyday contract value is projected to be between $65m to $70m at completion.

• The Insurance Australia Group (“IAG”) fitout in the Tower 2 Darling Park building at 201 Sussex Street, Sydney. The scope of works includes the design finalisation and construction of electrical and communications services across 33,000 square metres of commercial space for a value exceeding $10m. The award to Heyday is from FDC Construction and Fitout for whom Heyday have previously delivered successfully many other large fitout projects in the Sydney CBD.

• A full design and construction electrical and communications subcontract exceeding $6m from locally based developer-builder Geocon for the residential and retail portions of “The Republic” which will be Canberra’s largest mixed-use precinct and is a part of the Section 200 development.

• Also in Canberra, Heyday have been successful in securing an electrical services design and construction contract for over $2m on the new “Capitol” project with Chase Building Group for a residential project comprising 190 apartments.

Resources

In the iron ore sector, SCEE has been awarded over $10m of new work including a subcontract of over $5m for works at the Rio Tinto Silvergrass East Project, located adjacent to the existing Nammuldi mine site 100km north west of Tom Price in Western Australia. The subcontract is with Decmil for electrical, instrumentation and communications works at the Nammuldi central mine services area and the new nonprocess facilities at the Silvergrass East mine service area.

Southern Cross Electrical Engineering Limited

ABN 92 009 307 046

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Comment

These new awards, together with the over $100m of recently announced contracts in the defence, commercial, renewables and resources sectors, mean the Group will end FY17 with an order book over $350m of which over $250m is expected to be performed in the 2018 financial year. The order book includes secured contracts, contracts in advanced stages of negotiations and an estimate of work to be performed under existing reimbursable, framework and panel agreements.

Commenting on the awards SCEE Managing Director, Graeme Dunn, said “I am pleased to be able to announce these new awards which further progress our strategic diversification across sectors and geographies.

Heyday has secured a significant volume of new work since we acquired the business in March and continues to see a large opportunity pipeline in the east coast commercial, social infrastructure and transport markets. Our resources business remains a key part of the expanded group as evidenced by our recent awards in both mining and oil and gas.

At over $350m, the Group’s order book is the highest it has ever been and demonstrates the enhanced scale and diversity of the Group as we move into the 2018 financial year. It is pleasing to enter the period with such a high level of work already secured for the year.”

Contact

SCEE Perth Office 41 Macedonia Street Naval Base WA 6165 T: +61 8 9236 8300

Graeme Dunn CEO & Managing Director E: graeme.dunn@scee.com.au

Colin Harper Company Secretary E: colin.harper@scee.com.au

Southern Cross Electrical Engineering Limited

ABN 92 009 307 046