Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (November 2015)
40 slides from Monadelphous's shareholder meeting presentation, Nov 17, 2015
Slide 1: Annual General Meeting 2015
Annual General Meeting 2015 For personal use only Tuesday 17 November
Slide 2: Board of Directors
For personal use only 2 Board of Directors
Slide 3: Agenda
Agenda For personal use only 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 4. Other Business 3
Slide 4: 1. Chairman's Address
1. Chairman’s Address For personal use only John Rubino
Slide 5: Company Profile
Company Profile For personal use only Monadelphous Group Limited (ASX:MND) is a S&P/ASX 200 company that provides construction, maintenance and industrial services to the resources, energy and infrastructure sectors throughout Australasia. Earnings Dividends People Revenue NPAT People Revenue Earnin
Slide 6: Chairman's Address
Chairman’s Address For personal use only • Sales and earnings performance reflects trends in commodity prices • Focus on productivity helped protect margins and ensure overheads remained aligned to business activity levels • Another record safety performance achieved • Leading capabilities, broad ma
Slide 7: 2. Managing Director's Address
2. Managing Director’s Address For personal use only Rob Velletri
Slide 8: Group Highlights
Group Highlights For personal use only • Sales revenue down 19.9% to $1,865m • NPAT of $105.8m down 23.6%^, EBITDA of $168.0m • EPS 113.9c, DPS 92c fully franked • Robust cashflow from operations of $117.8m, conversion rate of 88% • Record safety performance – TCIFR 3.16, a 3% improvement on previou
Slide 9: Financial Performance
Financial Performance For personal use only Group highlights Unit FY15 FY14^ Change Sales Revenue $m 1,865.0 2,329.6 (19.9%) EBITDA^ $m 168.0 221.2 (24.1%) EBITDA Margin^ % 9.00 9.50 (0.5pp*) NPAT^ $m 105.8 138.6 (23.6%) NPAT Margin^ % 5.67 5.95 (0.28pp*) EPS^ cps 113.9 150.4 (24.3%) Operating Cash
Slide 10: Financial Position and Funding
Financial Position and Funding For personal use only Strong balance sheet FY15 FY14 Change $m $m Cash at Bank 209.8 217.9 (3.7%) Net Cash Position 186.6 180.8 3.2% (Cash less interest bearing loans and borrowings) Capital Expenditure 11.5 7.1 62.0% (Cash and Hire Purchase) Bank Guarantee and Perform
Slide 11: Safety Scorecard
Safety Scorecard For personal use only Injury Frequency Rates* • Record safety performance – TCIFR improved 3% • Implementation of incident management system has improved reporting • Continued focus on safety leadership and risk management. 11
Slide 12: People Performance
People Performance For personal use only Employee Numbers Employees by Division • Reduction in employee numbers in line with completion of projects, slowdown in construction activity and consolidation of support and services functions • Tight market conditions led to improved availability of labour
Slide 13: Productivity
Productivity For personal use only Company-wide cost reduction program • Rationalised staffing levels • Adjusted remuneration levels to reflect change Annualised cost in market conditions saving of • Consolidated support and services functions $56m, includes • Improved project management practices $
Slide 14: FY15 Contract Activity
FY15 Contract Activity For personal use only 14
Slide 15: Divisional Highlights
Divisional Highlights For personal use only Revenue contribution • Established strong position in upstream CSG market Engineering • Growth in infrastructure work (pipelines and water) Construction • Integrated Water Infrastructure Group • Worked with customers to reduce costs and improve Maintenance
Slide 16: Engineering Construction: Eurombah Creek Gas Processing Facility
Engineering Construction For personal use only Eurombah Creek Gas Processing Facility, Queensland 16
Slide 17: Engineering Construction: Ichthys Onshore LNG Facility
Engineering Construction (cont’d) For personal use only Ichthys Onshore LNG Facility, Darwin, Northern Territory 17
Slide 18: Engineering Construction: Solomon Hub, Fortescue River Gas Pipeline
Engineering Construction (cont’d) For personal use only Solomon Hub, Fortescue River Gas Pipeline, Pilbara, Western Australia 18
Slide 19: Engineering Construction: Sino Iron Project
Engineering Construction (cont’d) For personal use only Sino Iron Project, Cape Preston, Western Australia 19
Slide 20: Engineering Construction: Wiggins Island Coal Export Terminal
Engineering Construction (cont’d) For personal use only Wiggins Island Coal Export Terminal, Gladstone, Queensland 20
Slide 21: Maintenance and Industrial Services: Karratha Gas Plant
Maintenance and Industrial Services For personal use only Woodside, Karratha Gas Plant, Karratha, Western Australia 21
Slide 22: Maintenance and Industrial Services: Gorgon Project
Maintenance and Industrial Services (cont’d) For personal use only Chevron Australia-operated Gorgon Project, Barrow Island, Western Australia 22
Slide 23: Contracts Secured Since June ~ $600m
Contracts Secured Since 30 June ~ $600m For personal use only 23
Slide 24: Australian Market Conditions
Australian Market Conditions For personal use only Total Resources (A$b) Total Energy (A$b) Source BIS Shrapnel - Total New Fixed Capital Expenditure Constant (updated May 2015) Source BIS Shrapnel - Total New Fixed Capital Expenditure Constant (updated May 2015) Total Infrastructure (A$b) Total Mai
Slide 25: Market Growth Strategy
Market Growth Strategy For personal use only Monadelphous’ long-term sustainable growth will come through maximising returns in our core service markets and broadening our revenue base through targeted entry into new customer and service markets. Maximise our position Enter new service Expand core s
Slide 26: Strategic Progress
Strategic Progress For personal use only • New contracts, renewals and extensions with long term customers • Secured new panel service contracts and wellhead skids for CSG market Maximise our position in • Secured new Barrow Island facilities maintenance contract core markets • Company well placed t
Slide 27: Monaro LLC
Monaro LLC For personal use only US partnership Map - North East Coast of USA • Based in Pittsburgh, North East USA • Multidisciplinary construction services in the Marcellus and Utica gas regions • Our partner is Mascaro Construction, a Pittsburgh- based civil contractor • Bob Santillo has been app
Slide 28: Outlook
Outlook For personal use only • Australian market conditions are expected to remain challenging • A surplus capacity of service providers and a focus by customers on operating costs and productivity of existing assets is driving a competitive environment • Opportunities for new major construction co
Slide 29: Shareholder Questions / Important Notice
Shareholder Questions Important Notice For personal use only 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 Grou
Slide 30: 3. Items of Business
3. Items of Business For personal use only Sino Iron Project, Cape Preston, Western Australia
Slide 31: Annual Reports
Annual Reports For personal use only To receive and consider the Financial Report, Directors’ Report and Auditor’s Report for the year ended 30 June 2015.
Slide 32: Resolution 1: Re-election of Director
Resolution 1: Re-election of Director For personal use only To re-elect a Director: Mr Chris Michelmore who, being eligible, offers himself for re- election.
Slide 33: Resolution 1: Re-election of Director
Resolution 1: Re-election of Director For personal use only The total of valid proxies received for Resolution 1 is 32,523,636 being: 30,230,732 FOR the resolution 180,102 AGAINST the resolution 2,037,001 OPEN to proxy 75,801 ABSTAIN
Slide 34: Resolution 2: Adoption of Remuneration Report
Resolution 2: Adoption of Remuneration Report For personal use only To consider and adopt the Remuneration Report for the year ended 30 June 2015.
Slide 35: Resolution 2: Adoption of Remuneration Report
Resolution 2: Adoption of Remuneration Report For personal use only The total of valid proxies received for Resolution 2 is 32,319,320 being: 28,105,884 FOR the resolution 1,897,175 AGAINST the resolution 2,034,160 OPEN to proxy 282,101 ABSTAIN
Slide 36: Poll
For personal use only Poll
Slide 37: 4. Other Business
4. Other Business For personal use only Woodside, Karratha Gas Plant, Karratha, Western Australia
Slide 38: For more information: Investor Relations
For more information: For personal use only Investor Relations Telephone: +61 (08) 9315 7312 Email: investor_relations@monadel.com.au www.monadelphous.com.au
Slide 39: Important Notice
Important Notice For personal use only 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 other
Slide 40: Appendix - Notes to Financials
Appendix - Notes to Financials For personal use only Non-IFRS Financial Information FY15 FY14 $’000 $’000 Monadelphous Group Limited results are reported under International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Reconciliation of profit b
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