Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (February 2016)
32 slides from Monadelphous's shareholder meeting presentation, Feb 11, 2016
Slide 1: Annual General Meeting 2014
Annual General Meeting 2014 Thursday 20 November
Slide 2: Board of Directors and Chief Financial Officer
Board of Directors and Chief Financial Officer 2
Slide 3: Agenda
Agenda 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 John Rubino Origin Energy, Talinga Pipeline Compression Facility Project, Condamine, Queensland 4
Slide 5: Company Profile
Company Profile Monadelphous Group Limited (ASX:MND) is a S&P/ASX 100 company that provides construction, maintenance and industrial services to the resources, energy and infrastructure sectors throughout Australasia. People Revenue Earnings per share^ Dividends per share 5,321 $2,330m 150.4c 123c (
Slide 6: Chairman's Address
Chairman’s Address • Sales revenue up over tenfold in ten years • Investment wave in mining and minerals decreased from the peak of 2012/13 • Investment activity in oil and gas remains strong • Share price under pressure, reflecting negative sentiment towards resources sector and a decline in commod
Slide 7: 2. Managing Director's Address
2. Managing Director’s Address Rob Velletri Rio Tinto, Marandoo Mine Phase 2, Tom Price, WA 7
Slide 8: Group Highlights
Group Highlights • Sales revenue down 10.9% to $2,330m • NPAT of $146.5m down 6.3%, underlying NPAT^ down 11.3% to $138.6m • Underlying EPS^ down 13.1% to 150.4c, DPS 123c • Robust cashflow from operations of $117.6m, conversion rate^ of 83% • Record safety performance – 21% improvement • Increasing
Slide 9: Financial Performance
Financial Performance Group highlights *pp = percentage points. ^ Underlying basis. Refer to slide 29 for reconciliation. # Comparatives restated to reflect a change in accounting policy. Refer to slide 30 for details. 9
Slide 10: Financial Position and Funding
Financial Position and Funding Robust balance sheet 10
Slide 11: Divisional Highlights
Divisional Highlights Revenue by division • $1.34b of new contracts • Largest ever contract award (Ichthys LNG~$680m) • Secured three upstream CSG contracts • $415m of new contracts and extensions • Continued growth in oil and gas maintenance • Expansion of services with Woodside. *During the period
Slide 12: FY 2014 Contract Activity
FY 2014 Contract Activity Beling @ Karratha s =Pannawonica@ > OW" BTom Pricem »MarandooWy "Newman: "Paraburdoo@ «Mount Keith @ =Leinster® "Kalgooriio@ ll swinana "Worsley @ Drona = os - ©Chinchitla | @ Gunnedah» @ Muswellbrooks 12 a] Monadelphous
Slide 13: FY 2014 Contracts Secured
FY 2014 Contracts Secured $1.8 billion in new contracts 13
Slide 14: Engineering Construction
Engineering Construction Rio Tinto Western Turner Syncline, Tom Price, WA 14
Slide 15: Engineering Construction
Engineering Construction BMA Caval Ridge Mine Project, Moranbah, Queensland 15
Slide 16: Engineering Construction
Engineering Construction Wiggins Island Coal Export Terminal, Gladstone, Queensland 16
Slide 17: Engineering Construction
Engineering Construction Rio Tinto West Angelas Gas Pipeline, Newman, WA 17
Slide 18: Maintenance and Industrial Services
Maintenance and Industrial Services Woodside, Karratha Gas Plant, Karratha, WA 18
Slide 19: Maintenance and Industrial Services
Maintenance and Industrial Services Chevron-operated Gorgon Project, Barrow Island, WA 19
Slide 20: FY 2015 ~$450M in new contracts awarded
FY 2015 ~$450M in new contracts awarded Sino Iron • Sino Iron Project, Cape Preston, WA DBP Development Group (DDG) • Ashburton Onslow Gas Pipeline near Onslow, WA Australia Pacific LNG (APLNG) • Spring Gully Pipeline Compression Facility, Roma, South Central Queensland Queensland Urban Utilities •
Slide 21: Safety Scorecard
Safety Scorecard Injury frequency rates* • Record safety performance – TCIFR improved 21%, LTIFR result a 57% improvement • New incident management system implemented. 21
Slide 22: People Performance
People Performance Employee numbers* Employees by division *Comparatives rebased to exclude Skystar employees • Employee numbers reduced in line with slowing resources construction activity and timing of ramp-up on oil and gas projects • Improved availability of labour contributing to higher product
Slide 23: Productivity
Productivity Company-wide cost reduction program • Consolidation of support and services structures • Remuneration levels adjusted to reflect Cost saving of change in market conditions ~$53m p.a. • Review of project management and delivery realised to methodologies date including • Renegotiation of
Slide 24: Revenue by Market
Revenue by Market 4% FY08 FYO9 FY10 FY11 FY12 FY13 FY14 m Energy mw Resources m Infrastructure 24 a] Monadelphous
Slide 25: Revenue by Service Market
Revenue by Service Market FYO8 FYO9 FY10 FY11 FY12 FY13 FY14 mSMP* mSMP*&E&l™ mg E&l™ mg Fabrication mO&M™ m Water m Pipelines m Marine *SMP - Structural, mechanical and piping; ** E&l - Electrical and instrumentation; *** O&M - Operations and maintenance 25 i] Monadelphous
Slide 26: Market Growth Strategy
Market Growth Strategy Monadelphous’s long-term sustainable growth will come from maximising returns in our core service markets and broadening our revenue base through targeted entry into new customer markets and service markets. 26
Slide 27: Australian Market Conditions
Australian Market Conditions Total resources (A$b) Total energy (A$b) Total infrastructure (A$b) Total maintenance (A$b) 27
Slide 28: Outlook
Outlook • Market conditions in mining and minerals continue to be challenging as customers drive down capital and operating costs • Strong position to capitalise on prospects for brownfield expansion and sustaining capital works • Broad exposure to oil and gas will continue to provide construction a
Slide 29: Notes to Financials
Notes to Financials Non-IFRS financial information Monadelphous Group Limited results are reported under International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Company discloses certain non-IFRS measures that are not prepared in accordance w
Slide 30: Notes to Financials (continued)
Notes to Financials (continued) # Restatement of comparatives – Change in accounting policy From 1 July 2013, the Group has elected to recognise the excess of the research and development tax offset over the statutory rate (‘the R&D offset’) being an additional 10% deduction as a government grant un
Slide 31: 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 32: For more information:
For more information: Rachel Cooper, Investor Relations Manager Telephone: +61 (08) 9315 7429 Email: rcooper@monadel.com.au www.monadelphous.com.au
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