Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (November 2017)
40 slides from Monadelphous's shareholder meeting presentation, Nov 21, 2017
Slide 1: Annual General Meeting 2017
ANNUAL GENERAL MEETING 2017 Tuesday 21 November
Slide 2: Company Profile
2017 ANNUAL GENERAL MEETING Company Profile Monadelphous Group Limited (ASX:MND) is an S&P/ASX 200 At 30 June 2017 People 6,164 company that provides construction, maintenance and industrial Market Capitalisation* $1.7b services to the resources, energy and infrastructure sectors. Net Cash $228.1m *
Slide 3: Board of Directors
2017 ANNUAL GENERAL MEETING Board of Directors 3
Slide 4: Agenda
2017 ANNUAL GENERAL MEETING Agenda 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 4. Other Business 4
Slide 5: 1. Chairman's Address
2017 ANNUAL GENERAL MEETING 1. Chairman’s Address JOHN RUBINO 5
Slide 6: Chairman's Address
2017 ANNUAL GENERAL MEETING Chairman’s Address JOHN RUBINO • Maintained leadership position in core markets • Entered a number of new markets • Strong focus on improving productivity • Good progress in markets and growth strategy • Strong cash position to pursue acquisitions and invest in equipment.
Slide 7: 2. Managing Director's Address
2017 ANNUAL GENERAL MEETING 2. Managing Director’s Address ROB VELLETRI 7
Slide 8: Group Highlights
2017 ANNUAL GENERAL MEETING Group Highlights FINANCIAL OPERATING STRATEGIC • Sales Revenue $1.265b* • Secured $1.8b of new contracts • Secured major offshore oil and • EBITDA $98.2^ • Awarded new construction works gas maintenance contracts • NPAT $57.6m on Ichthys Project Onshore LNG • Entered rene
Slide 9: Financial Performance
2017 ANNUAL GENERAL MEETING Financial Performance PERIOD ENDED 30 JUNE FY17 FY16 CHANGE Sales Revenue $m 1,264.7* 1,364.7 (7.3%) EBITDA $m 98.2^ 113.6 (13.6%) EBITDA Margin % 7.76 8.33 (0.57pp) NPAT $m 57.6 67.0 (14.1%) NPAT Margin % 4.55 4.90 (0.35pp) EPS cps 61.4 71.8 (14.4%) DPS (Fully Franked) c
Slide 10: Contracts Secured
2017 ANNUAL GENERAL MEETING Contracts Secured 10
Slide 11: Contracts Secured
2017 ANNUAL GENERAL MEETING Contracts Secured 11
Slide 12: Safety Scorecard
2017 ANNUAL GENERAL MEETING Safety Scorecard INJURY FREQUENCY RATES* • Diversification into new markets and changes in market conditions impacted injury rates • Group-wide safety campaigns undertaken • Safety initiatives implemented to support and embed strong safety culture in new areas of business
Slide 13: People
2017 ANNUAL GENERAL MEETING People EMPLOYEE NUMBERS • Growth in employee numbers • Increasing levels of maintenance services activity and ramp-up of construction activity towards year-end • Rationalised support services structure and expanded delivery of offshore business and project services • Key
Slide 14: Sales Revenue Summary
2017 ANNUAL GENERAL MEETING Sales Revenue Summary REVENUE BY DIVISIONAL HIGHLIGHTS END CUSTOMER FY17 FY16 CHANGE $m $m % Engineering Construction 615.4 757.6 (18.8) Maintenance and Industrial Services 652.9 608.4 7.3 Internal Eliminations (3.5) (1.3) Total 1,264.7* 1,364.7 (7.3) • Lower activity lev
Slide 15: Engineering Construction
2017 ANNUAL GENERAL MEETING Engineering Construction Ichthys Project Onshore LNG Facilities, Darwin, Northern Territory 15
Slide 16: Engineering Construction
2017 ANNUAL GENERAL MEETING Engineering Construction Amuri Irrigation Scheme and Ashburton Lyndhurst Irrigation Scheme, New Zealand 16
Slide 17: Engineering Construction
2017 ANNUAL GENERAL MEETING Engineering Construction SinoStruct steel modules and skid, as well as Houston fabrication facility, US 17
Slide 18: Engineering Construction
2017 ANNUAL GENERAL MEETING Engineering Construction Zenviron – Sapphire Wind Farm project, New South Wales 18
Slide 19: Engineering Construction – Mongolia
2017 ANNUAL GENERAL MEETING Engineering Construction – Mongolia . Oyu Tolgoi, South Gobi, and Monadelphous’ registered training organisation, Ulaanbaatar. Images copyright © 2017 Rio Tinto. 19
Slide 20: Maintenance and Industrial Services
2017 ANNUAL GENERAL MEETING Maintenance and Industrial Services Woodside’s North Rankin and Angel platforms, as well as Karratha Gas Plant. Images courtesy of Woodside Energy Ltd. 20
Slide 21: Maintenance and Industrial Services
2017 ANNUAL GENERAL MEETING Maintenance and Industrial Services Ichthys LNG Project’s Floating Production Storage and Offloading facility, Ichthys Venturer. Image courtesy of INPEX Australia. 21
Slide 22: Maintenance and Industrial Services
2017 ANNUAL GENERAL MEETING Maintenance and Industrial Services Olympic Dam, South Australia. Image courtesy of BHP. 22
Slide 23: Maintenance and Industrial Services Diversification
2017 ANNUAL GENERAL MEETING Maintenance and Industrial Services Diversification Maintenance and Industrial Services has broadened its service offering to existing customers, and expanded to new locations enabling access to new customers. New services include: • Corrosion management and protective co
Slide 24: Australian Market Conditions
2017 ANNUAL GENERAL MEETING Australian Market Conditions TOTAL RESOURCES (A$B) TOTAL ENERGY (A$B) Source BIS Shrapnel – Mining in Australia (released May 2017) Source BIS Shrapnel – Mining in Australia (released May 2017) TOTAL INFRASTRUCTURE (A$B) TOTAL MAINTENANCE (A$B) Source BIS Shrapnel – Value
Slide 25: Strategy
2017 ANNUAL GENERAL MEETING Strategy DELIVER CORE MAXIMISE RETURNS BUILD AN SERVICES TO NEW FROM CORE MARKETS INFRASTRUCTURE BUSINESS OVERSEAS MARKETS Secured major onshore and offshore oil Awarded new contracts in water SinoStruct awarded fabrication and gas maintenance contracts with and irr
Slide 26: Outlook
2017 ANNUAL GENERAL MEETING Outlook • Increasing levels of brownfields and sustaining capital expenditure across the resource sector • Maintenance services prospects remain positive • Revenues from infrastructure projects expected to grow • Continue to pursue acquisition opportunities to deliver str
Slide 27: Shareholder Questions
2017 ANNUAL GENERAL MEETING Shareholder Questions 27 Solomon Hub mine, Mount Sheila, Western Australia
Slide 28: 3. Items of Business
2017 ANNUAL GENERAL MEETING 3. Items of Business Sapphire Wind Farm site, New South Wales 28
Slide 29: Annual Reports
2017 ANNUAL GENERAL MEETING Annual Reports To receive and consider the Financial Report, Directors’ Report and Auditor’s Report for the year ended 30 June 2017. 29
Slide 30: Resolution 1: Re-election of Director
2017 ANNUAL GENERAL MEETING Resolution 1: Re-election of Director To re-elect a Director: Mr Dietmar Voss who, being eligible, offers himself for re-election. 30
Slide 31: Resolution 1: Re-election of Director
2017 ANNUAL GENERAL MEETING Resolution 1: Re-election of Director The total of valid proxies received for Resolution 1 is 48,786,326 being: 47,468,402 FOR the resolution 182,940 AGAINST the resolution 1,033,906 OPEN to proxy 101,078 ABSTAIN 31
Slide 32: Resolution 2: Re-election of Director
2017 ANNUAL GENERAL MEETING Resolution 2: Re-election of Director To re-elect a Director: Mr Peter Dempsey who, being eligible, offers himself for re-election. 32
Slide 33: Resolution 2: Re-election of Director
2017 ANNUAL GENERAL MEETING Resolution 2: Re-election of Director The total of valid proxies received for Resolution 2 is 48,786,326 being: 38,714,220 FOR the resolution 8,931,750 AGAINST the resolution 1,034,138 OPEN to proxy 106,218 ABSTAIN 33
Slide 34: Resolution 3: Adoption of Remuneration Report
2017 ANNUAL GENERAL MEETING Resolution 3: Adoption of Remuneration Report To consider and adopt the Remuneration Report for the year ended 30 June 2017. 34
Slide 35: Resolution 3: Adoption of Remuneration Report
2017 ANNUAL GENERAL MEETING Resolution 3: Adoption of Remuneration Report The total of valid proxies received for Resolution 3 is 44,582,821 being: 41,023,094 FOR the resolution 2,178,643 AGAINST the resolution 1,017,704 OPEN to proxy 363,380 ABSTAIN 35
Slide 36: Poll
2017 ANNUAL GENERAL MEETING Poll Artwork commissioned from Perth-based Walmajarri artist Clifton Bieundurry, which depicts the Monadelphous values 36 using Aboriginal art symbols.
Slide 37: 4. Other Business
2017 ANNUAL GENERAL MEETING 4. Other Business 37 Mining Area C, Newman, Western Australia
Slide 38: For more information:
2017 ANNUAL GENERAL MEETING For more information: Investor Relations Telephone: +61 8 9316 6386 Email: investor_relations@monadel.com.au www.monadelphous.com.au 38
Slide 39: Notes to Financials
2017 ANNUAL GENERAL MEETING Notes to Financials NON-IFRS FINANCIAL STATUTORY SALES REVENUE AND EBITDA RECONCILIATION INFORMATION FY17 FY16 Monadelphous Group Limited results are $M $M reported under International Financial Total sales revenue including joint ventures 1,264.7 1,364.7 Reporting Standa
Slide 40: Important Notice
2017 ANNUAL GENERAL MEETING Important Notice DISCLAIMER Information, including forecast financial information, in this presentation, should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in Monadelphous Group Limited or any
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