Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (February 2016)
40 slides from Monadelphous's shareholder meeting presentation, Feb 11, 2016
Slide 1: Annual General Meeting 2015
Annual General Meeting 2015 Tuesday 17 November
Slide 2: Board of Directors
Board of Directors John Rubino Rob Velletri Chairman Managing Director Peter Dempsey Chris Michelmore Dietmar Voss (Lead) Independent Independent Non-Executive Independent Non-Executive Non-Executive Director Director Director 2 nl Monadelphous
Slide 3: Agenda
Agenda 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 4. Other Business 3
Slide 4: Chairman's Address
1. Chairman’s Address John Rubino
Slide 5: Company Profile
Company Profile 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 Earnings perper share Divide
Slide 6: Chairman's Address
Chairman’s Address • 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 market coverage, multi-d
Slide 7: Managing Director's Address
2. Managing Director’s Address Rob Velletri
Slide 8: Group Highlights
Group Highlights • 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 previous year • $450m new con
Slide 9: Financial Performance
Financial Performance 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 Flow $m 117.8 117.6 0.
Slide 10: Financial Position and Funding
Financial Position and Funding 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 Performance Bond Facilities U
Slide 11: Safety Scorecard
Safety Scorecard 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 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 • Key talent retention
Slide 13: Productivity
Productivity 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 $19m • Negotiated impro
Slide 14: FY15 Contract Activity
FY15 Contract Activity ape Lambert tape ren aa Tom Price f ‘=Poraburdoo® Newmane © wir = Kwinana eaWorsley "Colle nl Monadelphous 14
Slide 15: Divisional Highlights
Divisional Highlights 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 productivity and Indu
Slide 16: Engineering Construction
Engineering Construction Eurombah Creek Gas Processing Facility, Queensland 16
Slide 17: Engineering Construction (cont'd)
Engineering Construction (cont’d) Ichthys Onshore LNG Facility, Darwin, Northern Territory 17
Slide 18: Engineering Construction (cont'd)
Engineering Construction (cont’d) Solomon Hub, Fortescue River Gas Pipeline, Pilbara, Western Australia 18
Slide 19: Engineering Construction (cont'd)
Engineering Construction (cont’d) Sino Iron Project, Cape Preston, Western Australia 19
Slide 20: Engineering Construction (cont'd)
Engineering Construction (cont’d) Wiggins Island Coal Export Terminal, Gladstone, Queensland 20
Slide 21: Maintenance and Industrial Services
Maintenance and Industrial Services Woodside, Karratha Gas Plant, Karratha, Western Australia 21
Slide 22: Maintenance and Industrial Services (cont'd)
Maintenance and Industrial Services (cont’d) Chevron Australia-operated Gorgon Project, Barrow Island, Western Australia 22
Slide 23: Contracts Secured Since June ~ $600m
Contracts Secured Since 30 June ~ $600m 23
Slide 24: Australian Market Conditions
Australian Market Conditions Total Resources (A$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 Maintenance (A$b) Source
Slide 25: Market Growth Strategy
Market Growth Strategy 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 services in core market
Slide 26: Strategic Progress
Strategic Progress • 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 to secure new major mai
Slide 27: Monaro LLC
Monaro LLC 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 appointed as CEO. Marcell
Slide 28: Outlook
Outlook • 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 contracts in energy and
Slide 29: Shareholder Questions / Important Notice
Shareholder Questions 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 other
Slide 30: Items of Business
3. Items of Business Sino Iron Project, Cape Preston, Western Australia
Slide 31: Annual Reports
Annual Reports 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 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 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 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 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
Poll Monadelphous
Slide 37: Other Business
4. Other Business Woodside, Karratha Gas Plant, Karratha, Western Australia
Slide 38: For more information:
For more information: Investor Relations Telephone: +61 (08) 9315 7312 Email: investor_relations@monadel.com.au www.monadelphous.com.au
Slide 39: Important Notice
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 other company. Due care and
Slide 40: Appendix - Notes to Financials
Appendix - Notes to Financials 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 before Company disclose
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