Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (November 2019)
46 slides from Monadelphous's shareholder meeting presentation, Nov 19, 2019
Slide 1: 2019 Annual General Meeting
Monadelphous 19 ANNUAL GENERAL MEETING 19 NOVEMBER 2019 TOGETHER WE DELIVER
Slide 2: Monadelphous Profile
MONADELPHOUS PROFILE Employees and workforce as at 30 June 2019 Market capitalisation as at 15 November 2019 2019 ANNUAL GENERAL MEETING 2
Slide 3: Board of Directors
BOARD OF DIRECTORS 998.4 841.1 652.9 2019 ANNUAL GENERAL MEETING 3
Slide 4: Agenda
AGENDA 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 998.4 841.1 652.9 4. Other Business 2019 ANNUAL GENERAL MEETING 4
Slide 5: 1. Chairman's Address
1. CHAIRMAN’S ADDRESS 998.4 841.1 652.9 2019 ANNUAL GENERAL MEETING 5
Slide 6: Chairman's Address
1. CHAIRMAN’S ADDRESS • More sustainable business • Cemented position as market leader in maintenance services • Maintenance - solid recurring revenue base; broadened range of services • Diversified into renewable energy and EPC 998.4 • Continue to grow footprint overseas, including recent entry int
Slide 7: 2. Managing Director's Address
2. MANAGING DIRECTOR’S ADDRESS 998.4 841.1 652.9 2019 ANNUAL GENERAL MEETING 7
Slide 8: 2019 Group Performance & Highlights
2019 GROUP PERFORMANCE & HIGHLIGHTS REVENUE* REVENUE BY END CUSTOMER REVENUE BY DIVISION ($M) $1,608 UNDERLYING NET PROFIT AFTER TAX# $57.4 UNDERLYING EARNINGS PER SHARE# 998.4 61.0 841.1 652.9 FULL YEAR DIVIDEND 48.0 CASH • Record revenue performance in Maintenance and Industrial Services division
Slide 9: 2019 Divisional Highlights: Engineering Construction
2019 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION REVENUE BY END CUSTOMER ($M) • Recorded revenue of $622.9* million • Renewed confidence in resources sector • Secured major construction contracts on BHP’s South Flank, and post year end, Rio Tinto’s West Angelas and Albemarle Lithium’s Kemerton pr
Slide 10: 2019 Divisional Highlights: Maintenance & Industrial Services
2019 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES REVENUE BY END CUSTOMER ($M) • Revenue up 19 per cent to $998.4 million • Increased demand in WA resources sector for sustaining capital works, and additional turnaround activity • Secured $240 million three-year general maintenance servic
Slide 11: Financial Snapshot
FINANCIAL SNAPSHOT Year ended 30 June FY19 FY18 CHANGE Revenue $M 1,608.3* 1,784.0* (9.85%) Engineering Construction 622.9* 949.9* (34.4%) Maintenance and Industrial Services 998.4 841.1 18.7% Internal Eliminations (13.0) (7.0) EBITDA $M 106.8^ 119.0^ (10.3%) EBITDA margin % 6.6 6.7 (0.1pp) Underlyi
Slide 12: Contracts Secured
CONTRACTS SECURED 2019 ANNUAL GENERAL MEETING 12
Slide 13: Safety Performance
SAFETY PERFORMANCE 6.00 4.00 4.02 TRIFR 2.00 0.06 LTIFR - 2015 2016 2017 2018 2019 • TRIFR impacted by rapid mobilisation of resources to support growth in maintenance activity and increased subcontractor numbers across business • Implemented improved subcontractor management, revised safety leaders
Slide 14: People
PEOPLE • Large proportion of subcontractor labour, both internationally and in infrastructure • Increase in direct employee numbers due to increase in maintenance services activity • Maintain focus on attracting and retaining key talent as conditions improve and employment market tightens • Launched
Slide 15: Engineering Construction
ENGINEERING CONSTRUCTION Left: Hunter Water’s Dungog Wastewater Treatment Plant in New South Wales. Right: The Pukaki Irrigation Scheme located in the Mackenzie Basin, New Zealand. 2019 ANNUAL GENERAL MEETING 15
Slide 16: Engineering Construction
ENGINEERING CONSTRUCTION 228MW Lal Lal Wind Farm, located in the Moorabool Shire of Victoria. 2019 ANNUAL GENERAL MEETING 16
Slide 17: Engineering Construction
ENGINEERING CONSTRUCTION Talison Lithium’s Greenbushes mine site in Western Australia. 2019 ANNUAL GENERAL MEETING 17
Slide 18: Maintenance & Industrial Services
MAINTENANCE & INDUSTRIAL SERVICES Maintenance work continues to ramp up at BHP’s iron ore operations across the Pilbara. 2019 ANNUAL GENERAL MEETING 18
Slide 19: Maintenance & Industrial Services
MAINTENANCE & INDUSTRIAL SERVICES Shell’s Prelude Floating Liquefied Natural Gas Facility in Western Australia. 2019 ANNUAL GENERAL MEETING 19
Slide 20: Maintenance & Industrial Services
MAINTENANCE & INDUSTRIAL SERVICES Our newly formed Rail Team undertaking work on Rio Tinto’s iron ore rail network in the Pilbara. 2019 ANNUAL GENERAL MEETING 20
Slide 21: Maintenance & Industrial Services
MAINTENANCE & INDUSTRIAL SERVICES Chilean-based construction and maintenance services contractor, Buildtek. 2019 ANNUAL GENERAL MEETING 21
Slide 22: Innovation & Productivity
INNOVATION & PRODUCTIVITY Monadelphous Mechatronics Engineer with our in-house developed skirt inspection robot. 2019 ANNUAL GENERAL MEETING 22
Slide 23: Industry Outlook – Australia
INDUSTRY OUTLOOK – AUSTRALIA 40 TOTAL RESOURCES CAPEX A$B 70 TOTAL ENERGY CAPEX A$B 35 60 30 50 25 40 20 30 15 20 10 5 10 0 0 2015 2016 2017 2018 2019 2020f 2021f 2022f 2023f 2024f 2015 2016 2017 2018 2019 2020f 2021f 2022f 2023f 2024f Source: BIS Oxford Economics, ABS (September 2019) Source: BIS O
Slide 24: Outlook
OUTLOOK • Solid pipeline of opportunities in resources and energy sector • Project development activity increasing, particularly in iron ore • LNG prospects expected to be positive in years to come • Maintenance activity to remain strong • Investment in infrastructure healthy, prospects continuing i
Slide 25: Shareholder Questions
SHAREHOLDER QUESTIONS 998.4 841.1 652.9 Monadelphous employees at our Port Hedland workshop in the Pilbara region of Western Australia. 2019 ANNUAL GENERAL MEETING 25
Slide 26: 3. Items of Business
3. ITEMS OF BUSINESS 998.4 841.1 652.9 Talinga Orana Gas Gathering Station near Chinchilla in Queensland. 2019 ANNUAL GENERAL MEETING 26
Slide 27: Annual Report
ANNUAL REPORT To receive and consider the Financial Report, 998.4 Directors’ Report 652.9 and Auditor’s 841.1Report for the year ended 30 June 2019. 2019 ANNUAL GENERAL MEETING 27
Slide 28: Resolution 1: Re-election of Director
RESOLUTION 1: RE-ELECTION OF DIRECTOR To re-elect a Director: Mr John Rubino who, 998.4 being eligible, offers 652.9himself for re-election. 841.1 2019 ANNUAL GENERAL MEETING 28
Slide 29: Resolution 1: Re-election of Director
RESOLUTION 1: RE-ELECTION OF DIRECTOR The total of valid proxies received for Resolution 1 is 52,397,405 being: 50,676,337 FOR the resolution 965,220 AGAINST the resolution 755,848 OPEN to proxy 998.4 841.1 652.9 230,786 ABSTAIN 2019 ANNUAL GENERAL MEETING 29
Slide 30: Resolution 2: Re-election of Director
RESOLUTION 2: RE-ELECTION OF DIRECTOR To re-elect a Director: Mr Dietmar Voss who, 998.4 being eligible, offers 652.9himself for re-election. 841.1 2019 ANNUAL GENERAL MEETING 30
Slide 31: Resolution 2: Re-election of Director
RESOLUTION 2: RE-ELECTION OF DIRECTOR The total of valid proxies received for Resolution 2 is 52,396,950 being: 51,379,757 FOR the resolution 256,558 AGAINST the resolution 760,635 OPEN to proxy 998.4 841.1 652.9 231,241 ABSTAIN 2019 ANNUAL GENERAL MEETING 31
Slide 32: Resolution 3: Re-election of Director
RESOLUTION 3: RE-ELECTION OF DIRECTOR To re-elect a Director: Ms Sue Murphy who, 998.4 being eligible, offers 652.9herself for re-election. 841.1 2019 ANNUAL GENERAL MEETING 32
Slide 33: Resolution 3: Re-election of Director
RESOLUTION 3: RE-ELECTION OF DIRECTOR The total of valid proxies received for Resolution 3 is 52,397,846 being: 51,481,662 FOR the resolution 157,231 AGAINST the resolution 758,953 OPEN to proxy 998.4 841.1 652.9 230,345 ABSTAIN 2019 ANNUAL GENERAL MEETING 33
Slide 34: Resolution 4: Fees to Non-Executive Directors
RESOLUTION 4: FEES TO NON-EXECUTIVE DIRECTORS To consider that for the purposes of ASX Listing Rule 10.17 and Clause 11.15 of the Company’s Constitution, the maximum aggregate amount of directors’ fees that may be paid to the Company’s Non-Executive Directors per annum is increased by $100,000, from
Slide 35: Resolution 4: Fees to Non-Executive Directors
RESOLUTION 4: FEES TO NON-EXECUTIVE DIRECTORS The total of valid proxies received for Resolution 4 is 52,215,757 being: 50,993,757 FOR the resolution 463,894 AGAINST the resolution 758,106 OPEN to proxy 998.4 841.1 652.9 409,582 ABSTAIN 2019 ANNUAL GENERAL MEETING 35
Slide 36: Resolution 5: Grant of Performance Rights to Managing Director
RESOLUTION 5: GRANT OF PERFORMANCE RIGHTS TO MANAGING DIRECTOR To grant up to a maximum of 19,310 performance rights to the Company’s Managing Director, Mr Robert Velletri, or his nominee, on the terms and conditions set out in the Explanatory Memorandum accompanying the Notice of Meeting. 998.4 841
Slide 37: Resolution 5: Grant of Performance Rights to Managing Director
RESOLUTION 5: GRANT OF PERFORMANCE RIGHTS TO MANAGING DIRECTOR The total of valid proxies received for Resolution 5 is 52,034,013 being: 50,243,054 FOR the resolution 1,039,598 AGAINST the resolution 751,361 OPEN to proxy 998.4 841.1 652.9 594,178 ABSTAIN 2019 ANNUAL GENERAL MEETING 37
Slide 38: Resolution 6: Adoption of Remuneration Report
RESOLUTION 6: ADOPTION OF REMUNERATION REPORT To consider and adopt the Remuneration 998.4 Report for the year ended 30841.1 652.9 June 2019. 2019 ANNUAL GENERAL MEETING 38
Slide 39: Resolution 6: Adoption of Remuneration Report
RESOLUTION 6: ADOPTION OF REMUNERATION REPORT The total of valid proxies received for Resolution 6 is 52,189,811 being: 49,682,339 FOR the resolution 1,756,624 AGAINST the resolution 750,848 OPEN to proxy 998.4 841.1 652.9 384,919 ABSTAIN 2019 ANNUAL GENERAL MEETING 39
Slide 40: Poll
POLL 998.4 841.1 652.9 Wind turbines at Lal Lal Wind Farm in regional Victoria. 2019 ANNUAL GENERAL MEETING 40
Slide 41: 4. Other Business
4. OTHER BUSINESS 998.4 841.1 652.9 Employees reviewing the Monadelphous Stretch Reconciliation Action Plan 2017-2020. 2019 ANNUAL GENERAL MEETING 41
Slide 42: For More Information
FOR MORE INFORMATION: Investor Relations Telephone: +61 8 9316 6386 Email: investor_relations@monadel.com.au www.Monadelphous.com.au 998.4 841.1 652.9 2019 ANNUAL GENERAL MEETING 42
Slide 43: Appendices
APPENDICES
Slide 44: Notes to Financials
NOTES TO FINANCIALS NON-IFRS FINANCIAL INFORMATION STATUTORY REVENUE FROM CONTRACTS WITH CUSTOMERS AND EBITDA RECONCILIATIONS FY19 $M FY18 $M Monadelphous Group Limited Total revenue from contracts with customers including joint 1,608.3 1,784.0 results are reported under ventures International Finan
Slide 45: Notes to Financials
NOTES TO FINANCIALS NON-IFRS FINANCIAL INFORMATION UNDERLYING NET PROFIT AFTER TAX RECONCILIATION FY19 $M FY18 $M Monadelphous Group Limited results are reported under Reported net profit after income tax attributable to members 50.6 71.5 International Financial Reporting Standards (IFRS) as issued
Slide 46: Disclaimer & Important Notice
DISCLAIMER & IMPORTANT NOTICE 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 a
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