Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (November 2020)
53 slides from Monadelphous's shareholder meeting presentation, Nov 24, 2020
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING Gon & 24 NOVEMBER 2020 TOGETHER WE DELIVER Monadelphous
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY MATT MACFARLANE – MONADELPHOUS LOCAL CONTENT COORDINATOR Safety & Wellbeing Integrity Achievement Teamwork Loyalty Artwork commissioned by Monadelphous in 2012 by internationally renowned, Perth-based Walmajarri artist, Clifton Bieundurry, illustrating the Company's values
Slide 3: Monadelphous Profile
MONADELPHOUS PROFILE Employees and workforce as at 30 June 2020 2020 ANNUAL GENERAL MEETING 3
Slide 4: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS When the Question function is available, the Q&A icon will appear at the top of the app To send in a question, click in the ‘Ask a question’ box, type your question and press the send arrow Your question will be sent immediately for review Received 2020 ANNUAL GEN
Slide 5: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen. To vote simply select the direction in which you would like to cast your vote. The selected option will change colour. •For •Against •Abstain There is no submit
Slide 6: Board of Directors
BOARD OF DIRECTORS 2020 ANNUAL GENERAL MEETING 6
Slide 7: Agenda
AGENDA 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 4. Other Business 2020 ANNUAL GENERAL MEETING 7
Slide 8: 1. Chairman's Address
1. CHAIRMAN’S ADDRESS 2020 ANNUAL GENERAL MEETING 8
Slide 9: 1. Chairman's Address
1. CHAIRMAN’S ADDRESS • Continued to grow in core markets and diversify business, ensuring a sustainable business • Strong demand for maintenance, shutdown and sustaining capital works • Maintenance and Industrial Services division achieved third consecutive record annual revenue • Strengthen marine
Slide 10: Managing Director's Address
1. MANAGING DIRECTOR’S ADDRESS 2020 ANNUAL GENERAL MEETING 10
Slide 11: 2020 Group Performance & Highlights
2020 GROUP PERFORMANCE & HIGHLIGHTS REVENUE1 REVENUE BY END CUSTOMER REVENUE BY DIVISION ($M) $1,651 NET PROFIT AFTER TAX $36.5 EARNINGS PER SHARE 998.4 38.7 841.1 652.9 FULL YEAR DIVIDEND 35.0 CASH • Record revenue performance in Maintenance and Industrial Services $208.3 • Several large resources
Slide 12: Impact of COVID-19
IMPACT OF COVID-19 • Second half significantly impacted by economic and social impact of COVID-19 • Broad range of projects and services contracts EMPLOYEE NUMBERS delayed, suspended and reduced, and temporary deferral of new awards 8,000 • Workforce numbers declined approximately 20 per 7,500 7,000
Slide 13: Safety Performance
SAFETY PERFORMANCE 6.00 4.00 3.72 TRIFR 2.00 LTIFR - 2018 2019 2020 0.26 • Tragic incident at Kalgoorlie services facility • Year-on-year improvement in TRIFR performance • Engineering Construction achieved zero recordable injuries in resources for 12 month period • Rollout of Maintenance & Industri
Slide 14: Safety Performance
SAFETY PERFORMANCE 2020 MANAGING DIRECTOR’S SAFETY INNOVATION AWARD Conveyor module assembly at BHP’s South Flank Project, Newman, WA. 2020 ANNUAL GENERAL MEETING 14
Slide 15: Safety Performance
SAFETY PERFORMANCE MENTAL HEALTH Employee wellbeing and mental health awareness a key focus for Monadelphous in 2020. 2020 ANNUAL GENERAL MEETING 15
Slide 16: 2020 Divisional Highlights
2020 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION • Recorded revenue of $615.9 million1 REVENUE BY END CUSTOMER ($M) • Secured $715 million of new contracts, including $155 million subsequent to year end • Work continued on several large resources construction projects for BHP, Rio Tinto and Albem
Slide 17: Engineering Construction – South Flank
2020 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – SOUTH FLANK Monadelphous cranes lifting the stacker conveyor boom into final position at BHP’s South Flank Project, Newman, WA. 2020 ANNUAL GENERAL MEETING 17
Slide 18: Engineering Construction – Kemerton Plant
2020 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – KEMERTON PLANT Construction underway at the MARBL Lithium Joint Venture's Kemerton Plant, south-west region, WA. 2020 ANNUAL GENERAL MEETING 18
Slide 19: Engineering Construction – Mondium
2020 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – MONDIUM Mondium preparing reinforcing bar for the primary crusher vault at Rio Tinto’s Western Turner Syncline Phase 2 mine, Pilbara region, WA. 2020 ANNUAL GENERAL MEETING 19
Slide 20: Engineering Construction – Zenviron
2020 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – ZENVIRON Lal Lal Wind Farm in regional Victoria. 2020 ANNUAL GENERAL MEETING 20
Slide 21: Maintenance & Industrial Services
2020 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES • Revenue of $1.05 billion REVENUE BY END CUSTOMER ($M) • Third consecutive record annual revenue performance • Significant increase in shutdown and maintenance work across resources sector • Secured $625 million in new contracts and exten
Slide 22: Maintenance & Industrial Services – Major Iron Ore Contracts
2020 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – MAJOR IRON ORE CONTRACTS Rio Tinto’s Cape Lambert, Pilbara region, WA. BHP’s Nelson Point, Pilbara region, WA. 2020 ANNUAL GENERAL MEETING 22
Slide 23: Maintenance & Industrial Services – Buildtek
2020 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – BUILDTEK Acquired Chilean-based maintenance and construction services contractor, Buildtek. 2020 ANNUAL GENERAL MEETING 23
Slide 24: Maintenance & Industrial Services – Rail
2020 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – RAIL Secured a contract with Rio Tinto on its rail network, Pilbara region, WA. Photo courtesy of Rio Tinto. 2020 ANNUAL GENERAL MEETING 24
Slide 25: Maintenance & Industrial Services – Service Diversification
2020 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – SERVICE DIVERSIFICATION Further strengthened its marine, civil and corrosion management capabilities. 2020 ANNUAL GENERAL MEETING 25
Slide 26: Financial Snapshot
FINANCIAL SNAPSHOT Period ended 30 June FY20 FY19 CHANGE Revenue1 $M 1,650.8 1,608.3 2.6% Engineering Construction1 615.9 622.9 (1.1%) Maintenance and Industrial Services 1,049.8 998.4 5.1% Internal Eliminations (14.9) (13.0) EBITDA2,3 $M 92.1 106.8 (13.8%) EBITDA margin2 % 5.6 6.6 (1.0pp) NPAT $M 3
Slide 27: Contracts Secured
CONTRACTS SECURED Refer to slides 51 and 52 for contract details. 2020 ANNUAL GENERAL MEETING 27
Slide 28: People
PEOPLE • Strong demand for resources sector personnel • Implemented strategic sourcing initiatives and reviewed succession planning • 5,579 employees at 30 June 2020 • Retention and development initiatives will become increasingly important as labour market tightens across resources sector 2020 ANNU
Slide 29: People – MonaWork Application
PEOPLE MONAWORK APPLICATION MonaWork, Monadelphous' award winning employee app was launched. 2020 ANNUAL GENERAL MEETING 29
Slide 30: Social Value
SOCIAL VALUE 2020 ANNUAL GENERAL MEETING 30
Slide 31: Social Value Highlights 2020 – Gender
SOCIAL VALUE HIGHLIGHTS 2020 DIVERSITY & INCLUSION – GENDER A Monadelphous scaffolder at BHP’s South Monadelphous employees at the FMG Empower Flank Project, Newman, WA. your Career Women’s Summit, Perth, WA. 2020 ANNUAL GENERAL MEETING 31
Slide 32: Social Value Highlights 2020 – Aboriginal & Torres Strait Islander Peoples
SOCIAL VALUE HIGHLIGHTS 2020 DIVERSITY & INCLUSION – ABORIGINAL & TORRES STRAIT ISLANDER PEOPLES A Monadelphous employee hears from students A Monadelphous employee mentoring students of the Graham (Polly) Farmer Foundation. at the Monadelphous Mechanical Mob. 2020 ANNUAL GENERAL MEETING 32
Slide 33: Industry Outlook – Australia
INDUSTRY OUTLOOK – AUSTRALIA 40 TOTAL RESOURCES CAPEX A$B 70 TOTAL ENERGY CAPEX A$B 35 60 30 50 25 40 20 30 15 20 10 5 10 0 0 2016 2017 2018 2019 2020 2021f 2022f 2023f 2024f 2025f 2016 2017 2018 2019 2020 2021f 2022f 2023f 2024f 2025f Source: BIS Oxford Economics, ABS (October 2020) Source: BIS Oxf
Slide 34: Outlook
OUTLOOK • Uncertain global economic outlook due to COVID-19 • Resources sector expected to provide steady flow of opportunities • Outlook for Australian iron ore remains solid with strong and steady demand for construction and maintenance services • Other resources sectors also expected to provide o
Slide 35: 3. Items of Business
3. ITEMS OF BUSINESS 998.4 841.1 652.9 A Monadelphous employee installing equipment in the long-term evolution tower at BHP’s Jimblebar, Newman, WA. 2020 ANNUAL GENERAL MEETING 35
Slide 36: 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 2020. 2020 ANNUAL GENERAL MEETING 36
Slide 37: Resolution 1: Re-election of Director
RESOLUTION 1: RE-ELECTION OF DIRECTOR To re-elect a Director: Mr Peter Dempsey 998.4 who, being eligible, 652.9 offers himself for re- 841.1 election. 2020 ANNUAL GENERAL MEETING 37
Slide 38: Resolution 1: Re-election of Director
RESOLUTION 1: RE-ELECTION OF DIRECTOR The total of valid proxies received for Resolution 1 is 54,472,814 being: 51,046,209 FOR the resolution 2,473,290 AGAINST the resolution 953,315 OPEN to proxy 998.4 841.1 652.9 204,384 ABSTAIN 2020 ANNUAL GENERAL MEETING 38
Slide 39: Resolution 2: Re-election of Director
RESOLUTION 2: RE-ELECTION OF DIRECTOR To re-elect a Director: Ms Helen Gillies who, 998.4 being eligible, offers 652.9herself for re-election. 841.1 2020 ANNUAL GENERAL MEETING 39
Slide 40: Resolution 2: Re-election of Director
RESOLUTION 2: RE-ELECTION OF DIRECTOR The total of valid proxies received for Resolution 2 is 54,475,602 being: 53,028,096 FOR the resolution 485,433 AGAINST the resolution 962,073 OPEN to proxy 998.4 841.1 652.9 201,596 ABSTAIN 2020 ANNUAL GENERAL MEETING 40
Slide 41: Resolution 3: Grant of Options to Managing Director
RESOLUTION 3: GRANT OF OPTIONS TO MANAGING DIRECTOR To grant 300,000 options 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. 998.4 841.1 652.9 2020 ANNUAL GENERAL MEETING 41
Slide 42: Resolution 3: Grant of Options to Managing Director
RESOLUTION 3: GRANT OF OPTIONS TO MANAGING DIRECTOR The total of valid proxies received for Resolution 3 is 51,128,010 being: 43,031,453 FOR the resolution 7,176,516 AGAINST the resolution 920,041 OPEN to proxy 998.4 841.1 652.9 346,535 ABSTAIN 2020 ANNUAL GENERAL MEETING 42
Slide 43: Resolution 4: Adoption of Remuneration Report
RESOLUTION 4: ADOPTION OF REMUNERATION REPORT To consider and adopt the Remuneration 998.4 Report for the year ended 30841.1 652.9 June 2020. 2020 ANNUAL GENERAL MEETING 43
Slide 44: Resolution 4: Adoption of Remuneration Report
RESOLUTION 4: ADOPTION OF REMUNERATION REPORT The total of valid proxies received for Resolution 4 is 51,082,564 being: 48,136,868 FOR the resolution 2,034,612 AGAINST the resolution 911,084 OPEN to proxy 998.4 841.1 652.9 294,320 ABSTAIN 2020 ANNUAL GENERAL MEETING 44
Slide 45: Shareholder Questions
SHAREHOLDER QUESTIONS A Monadelphous employee mechanically inspecting a Franna boom at BHP’s South Flank, Pilbara region, WA. 2020 ANNUAL GENERAL MEETING 45
Slide 46: Poll
POLL 998.4 841.1 652.9 Monadelphous employees preparing for idler changeout at Cape Lambert, Pilbara region, WA. 2020 ANNUAL GENERAL MEETING 46
Slide 47: 4. Other Business
4. OTHER BUSINESS A Monadelphous employee installing equipment in the long-term evolution tower at BHP’s Jimblebar, Newman, WA. 2020 ANNUAL GENERAL MEETING 47
Slide 48: 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 2020 ANNUAL GENERAL MEETING 48
Slide 49: Appendices
APPENDICES
Slide 50: Notes to Financials
NOTES TO FINANCIALS NON-IFRS FINANCIAL INFORMATION STATUTORY REVENUE FROM CONTRACTS WITH CUSTOMERS AND EBITDA RECONCILIATIONS FY20 FY19 $M $M Monadelphous Group Limited Total revenue from contracts with customers including joint ventures 1,650.8 1,608.3 results are reported under International Finan
Slide 51: Contracts Secured – Detail: Engineering Construction
CONTRACTS SECURED – DETAIL ENGINEERING CONSTRUCTION * Announced subsequent to 30 June 2020. 2020 ANNUAL GENERAL MEETING 51
Slide 52: Contracts Secured – Detail: Maintenance & Industrial Services
CONTRACTS SECURED – DETAIL MAINTENANCE & INDUSTRIAL SERVICES * Announced subsequent to 30 June 2020. 2020 ANNUAL GENERAL MEETING 52
Slide 53: 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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