SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2022

Aug 8, 2022

ASX ANNOUNCEMENT & MEDIA RELEASE

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• 9 August 2022

Project and Industry Awards and Trading Update

• Awarded contracts totalling over $30m

• Upgrading FY22 full year EBITDA guidance to over $35m

• Cash at 30 June 2022 of $53.1m (30 June 2021: $51.0m) and no debt

Project Awards

Southern Cross Electrical Engineering Limited (“SCEE Group”) is pleased to announce that across the group it has received contract awards totalling over $30m as follows:

• In Queensland, Arrow Energy Pty Ltd have awarded SCEE Electrical two multi-year agreements to provide manufacturing and maintenance services in support of their operations in the Surat and Bowen basins. Both agreements will commence in 2022 and provide SCEE Electrical with continuity of works over several years.

• Also in regional Queensland, S.J. Electric has secured from Pensar Project Infrastructure Pty Ltd the electrical design, manufacture, and installation works to support the installation of a new irrigation water pipeline. The pipeline will allow Class A recycled water to be pumped from the South Caboolture Sewage Treatment Plant to be used to support local farming activities in the Wamuran area. S.J. Electric will supply and install two portable switch rooms, switchboards, PLC panels, instrumentation and VSD panels, together with the electrical installation of eleven outdoor enclosures housing electrical components that are critical in providing power to the pumping stations supporting the pipeline. The switchboards will be manufactured by Trivantage Manufacturing in its local Brisbane factory. These works will be completed during FY23 and form part of Unity Waters’ 2050 sustainability goals of zero nutrients into waterways and 100% reuse of recycled wastewater.

• S.J. Electric has been engaged by Woolworths Group Ltd to install new electrical metering systems into approximately five hundred and fifty locations nationally in a program expected to span across FY23. These works will be performed during night shift to ensure no disruption is caused to operations.

• S.J. Electric has also been engaged by subsidiaries of BSA Limited to perform the installation of their building management control systems in Aldi Supermarkets across Australia. S.J. Electric will use its national presence to perform the works in over five hundred stores ranging from capital cities to remote regional towns. The program will take approximately two years to complete and covers New South Wales, Victoria, Queensland, South Australia, and Western Australia. Utilising its expertise in the supermarket industry, S.J. Electric will perform the works in a manner that will

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Southern Cross Electrical Engineering Limited ABN 92 009 307 046 ASX: SXE

www.scee.com.au

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allow trading to continue at the supermarkets with minimal disruption to operations.

• Trivantage Manufacturing has been successful in securing a supply agreement with a subsidiary of Hickory Group Holdings Limited to supply the low voltage switchboards and other power distribution units for its new data centre in Melbourne. Trivantage Manufacturing will supply twenty-nine main switchboards and thirty-two distribution boards over a condensed timeframe of five months with supply to be completed by the end of 2022.

Industry Awards

At the recent National Electrical and Communications Association (“NECA”) Excellence Awards, SCEE Group businesses were State Winners of:

• In WA, SCEE Electrical won the “Industrial Large Project Award 2022” for its work at Rio Tinto’s Gudai-Darri Phase 1 Project.

• In NSW, Heyday’s apprentice Bailey Gronau was awarded “Apprentice of the Year for 2021”.

Trading Update

SCEE Group wishes to provide an update to the previous guidance on the full year results that was announced to the ASX on 7 June 2022.

As forecast, the final quarter of FY22 did see a record level of activity and FY22 full year revenues are now expected to exceed $550m. Accordingly the company wishes to upgrade its EBITDA guidance given on 7 June 2022 of being over $34m to now being confident that we will deliver a record full year EBITDA of over $35m in FY22.

In addition, cash collection in the month of June was even stronger than anticipated and the Group ended FY22 with cash at 30 June 2022 of $53.1m and no debt (30 June 2021: $51.0m, and 7 June 2022 guidance was for over $45m).

It should be noted that the above results are still subject to final audit.

Comment

Commenting on the above, SCEE Group Managing Director Graeme Dunn said “We are always delighted to be the recipient of industry awards because it is indicative of the regard in which we are held amongst our peers.

I was particularly pleased by our cash at 30 June and the resulting strength of our balance sheet, as this was after a year in which we funded a further $10.0m for the acquisition of Trivantage, paid $12.7m of dividends, and we were at very high levels of activity in June with the resulting working capital requirements supporting our projects.”

Authorised for release by Graeme Dunn – SCEE Group Managing Director

Contact:

SCEE Group Head Office Level 15, 225 St Georges Terrace Perth WA 6000 T: +61 8 9236 8300

Graeme Dunn Colin Harper CEO & Managing Director Company Secretary E: graeme.dunn@scee.com.au E: colin.harper@scee.com.au

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