Slide 1: RCR Tomlinson Ltd Annual General Meeting 2018
RCR Tomlinson Ltd Annual General Meeting 2018 InterContinental Hotel, Sydney 30 October 2018 1
Slide 2: Board of Directors & CFO
Board of Directors & CFO Mr Roderick Brown Mr Bruce James Ms Sue Palmer Independent Non-Executive Director Interim Chief Executive Officer Independent Non-Executive Director and Chairman and Executive Director Mr David Robinson Mr Lloyd Jones Mr Andrew Phipps Independent Non-Executive Director Indep
Slide 3: Agenda
Agenda 1. Chairman’s Address 2. Interim CEO’s Address 3. Questions 4. Items of Business 5. Close Formal Business of AGM 6. Refreshments 7. Poll results announced 3
Slide 4: Chairman’s Address
RCR Tomlinson Ltd Annual General Meeting 2018 Chairman’s Address Mr Roderick Brown 30 October 2018 4
Slide 5: CEO’s Presentation
RCR Tomlinson Ltd Annual General Meeting 2018 CEO’s Presentation Interim CEO & Executive Director | Mr Bruce James 30 October 2018 5
Slide 6: Contents
Contents 1. FY18 Financial Results 2. Order Book 3. Funding Facilities at June 2018 4. Review of Operations 5. Safety, Environment & People 6. Strategic Focus 7. New Organisational Structure 8. FY19 Update 9. Project Experience 10. Questions 6
Slide 7: FY18 Financial Results
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Slide 8: FY18 Financial Results Snapshot
FY18 Financial Results Snapshot Overview Revenue $M Order Book + • Order Book of $1.1B Preferred $B • Preferred Contractor Status of $2.7B 1,998.5 Order Book Preferred • Increasing exposure to rail and transport sector 1,263. • Revenue of $2.0B 2 3.8 3.0 • H2 Revenue of $1,058M • Up from $941M in H1
Slide 9: Structure of order book
Structure of order book Order book recently contracted Near-term opportunities • Order book remains strong, but RCR has experienced some • Increasing focus on minimising execution risk through contracting short-term delays in award of projects from preferred structures that typically provide a highe
Slide 10: Funding Facilities June 2018
Funding Facilities 30 June 2018 Renewed and Extended Facilities Funding Summary • Total Syndicated Facility $431.3M - term Dec 2019 Facility Jun 18 $M Jun 17 $M • $36.3M senior debt Senior Debt and Working Capital Facility 431.3 326.3 • $75.0M working capital Insurance Bonding Facilities 250.0 200.0
Slide 11: FY18 Review of Operations
RCR “UU E.l. Engineering Intelligence Review of Operations ENGINEERING INTELLIGENCE. That's what we do.
Slide 12: Infrastructure
Infrastructure FY18 Performance Opportunities • Record revenue of $1,482.4M • Selective with regard to counterparties and risk profile in Solar • EBIT loss of $9.8M • Targeting large opportunities in rail & • New rail and transport projects in FY18: transport in Australia and NZ • Transport for NSW
Slide 13: Energy
Energy FY18 Performance Opportunities • Revenue $228.0M • Preferred Contractor Status on an open-cycle power station • EBIT $12.5M • Preferred Contractor Status on • Contracts include: waste-to-energy project • Senipah 92MWe Power Plant • Developing a pipeline of • PT Chandra opportunities in this s
Slide 14: Resources
Resources FY18 Performance Opportunities • Revenue $303.5M • RCR proprietary equipment - apron • EBIT $1.7M & belt feeders, conveyors, stackers & spreaders, crushing & screening • New contract awards: and mobile mining plants • Fortescue Metals Group Overland • Innovative technology solutions Convey
Slide 15: Safety, Environment and People
Safety, Environment and People FY18 Safety Performance Safety Performance • All injury frequency rate continues to improve 12 • TRIFR of 5.82 • LTIFR of 0.30 10 10.13 9.37 Environmental Performance 8 8.37 • Zero reportable environmental incidents 6 6.37 5.82 • Remained below reporting level for carb
Slide 16: Corporate Overview & Outlook
Corporate Overview & Outlook 16
Slide 17: Strategic focus
Strategic focus RCR is re-positioning towards a more acceptable risk profile Consolidating existing business Focus on Rail and Transport Selective participation in Solar • Focus on consolidating existing • Significant pipeline in rail and transport • RCR is being selective with regard to operations
Slide 18: New organisational structure
New organisational structure Focussed on Project Delivery ✓ Streamlined reporting to CEO ✓ Improve ongoing management efficiency ✓ Restructured & right sized to meet challenges of a highly competitive market ✓ Consolidated business development to a central unit ✓ New Zealand to have separate but mir
Slide 19: FY19: Update
FY19: Update • Recently experienced some delays and labour productivity issues in completion phases on some of our solar projects, however most of our solar projects are now greater than 96% complete. • The above is offset by identified cost savings & contingencies in guidance. • Cost savings are ex
Slide 20: Project Experience
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Slide 21: Project Experience – Solar Energy
Project Experience – Solar Energy Greenough Solar Farm In FY18, RCR was awarded an EPC contract by Synergy for a 30MWac expansion of the Greenough River Solar Farm in Western Australia. RCR’s scope of works for the project includes engineering, procurement, construction and commissioning of the expa
Slide 22: Project Experience – Solar Energy
Project Experience – Solar Energy Gannawarra Solar Farm & Energy Storage In March 2017, RCR announced it had been awarded the EPC and O&M contracts on the Gannawarra Solar Farm. In March this year, the Company was awarded the EPC contract for the 25MW/50MWh Energy Storage System. Project: 50MWac Sol
Slide 23: Project Experience – Solar Energy
Project Experience – Solar Energy Sun Metals Solar Farm RCR delivered a 125MWac solar power plant with thin-film PV modules for Sun Metals Corporation under an EPC contract, to supply power to Sun Metals' Zinc Refinery near Townsville, QLD. Project: 125MWac Solar Farm Location: Townsville, QLD RCR’s
Slide 24: Project Experience – Rail Stations
Project Experience – Rail Stations In January 2018, RCR announced that it had been awarded a contract by Metro Trains Melbourne to Melbourne Underground Rail Loop deliver station upgrade works within the Melbourne Underground Rail Loop, an essential part of Melbourne’s metro rail network. Project: S
Slide 25: Project Experience – Water
Project Experience – Water Water & Sewerage Capital Works RCR, together with JV partners Abergeldie Contractors and Stantec Australia Pty Ltd, executed a Framework Agreement with Melbourne Water for its Water and Sewerage Capital Works Program. The program has an initial three (3) year period, plus
Slide 26: Project Experience – Power Plant
Project Experience – Power Plant KEP Senipah 92MWe Power Plant RCR is delivering a combined cycle addition to PT Kartanegara Energi Perkasa (“KEP”)’s existing open-cycle 92MWe gas-fired power plant in Senipah, Indonesia. Project: Combined Cycle Addition RCR’s scope of work includes overall project m
Slide 27: Project Experience – Minerals: Lithium
Project Experience – Minerals: Lithium Pilgangoora Lithium Processing Plant RCR was awarded a contract with Pilbara Minerals Limited for the EPC of a processing plant for the Pilgangoora Lithium-Tantalum Mine in WA. Project: Pilgangoora Lithium Plant RCR’s scope includes the EPC of a 2Mtpa Lithium-T
Slide 28: Project Experience – Minerals: Iron Ore
Project Experience – Minerals: Iron Ore Relocatable Conveyor System RCR was awarded a contract to design, manufacture and construct a 5km relocatable conveyor system for Fortescue Metals Group. Project: Relocatable Conveyor This project was the first to emerge under an innovation and development Mem
Slide 29: Questions
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Slide 30: Items of Business
RCR Tomlinson Ltd Annual General Meeting 2018 Items of Business Mr Roderick Brown 30 October 2018 30
Slide 31: Items of Business
Items of Business 1. 2018 Annual Financial Report 2. Approval of the 2018 Remuneration Report (non-binding resolution) 3. Re-election of Director – Mr Roderick Brown 4. Election of Director – Mr David Robinson 5. Renewal of RCR Performance Incentive Plan 31
Slide 32: Item 1: 2018 Annual Financial Report
Item 1: 2018 Annual Financial Report Note: Shareholders are not required to approve the 2018 Annual Financial Report Opportunity for Shareholder Questions 32
Slide 33: Item 2: Approval of 2018 Remuneration Report
Item 2: Approval of 2018 Remuneration Report Remuneration Report Historical Voting Trend 0.84% 0.70% 100% 5.51% 7.56% 95% 12.94% 90% 85% 80% 98.67% 99.30% 93.89% 91.76% 75% 86.16% 70% 65% 60% 2013 2014 2015 2016 2017 For Against 33
Slide 34: Item 3: Re-election of Director
Item 3: Re-election of Director Mr Roderick Brown Independent Non-Executive Director & Chairman AWASM, MAID, AusIMM Mr Brown is an engineer by profession and has extensive experience in marketing and general management. He has over 20 years’ experience as a company Director. During his career, Mr Br
Slide 35: Item 4: Election of Director
Item 4: Election of Director Mr David Robinson Independent Non-Executive Director BEng (Civil), FAICD, FIEAust Mr Robinson is a professional engineer with over 40 years’ of experience across the heavy civil and construction, petrochemical, oil and gas, mechanical, underground, marine and commercial
Slide 36: Item 5: Renewal of RCR Performance Incentive Plan
Item 5: Renewal of RCR Performance Incentive Plan Note: The key features of the Performance Incentive Plan are summarised in the Explanatory Memorandum accompanying the Notice of Meeting. Opportunity for Shareholder Questions 36
Slide 37: Poll Close of Meeting
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Slide 38: Refreshments
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Slide 39: Results of Poll
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Slide 40: Appendix A: Disclaimer
et, Appendix A: ENGINEERING INTELLIGENCE. That's what we do,
Slide 41: Disclaimer
Disclaimer This presentation and any oral presentation accompanying it has been prepared by RCR Tomlinson Ltd ABN 81 008 898 486 (“RCR” or “the Company”). Summary of information: This presentation contains general and background information about RCR’s activities current as at the date of the presen