Costain Group PLC · LSE:COST
Costain — Shareholder Meeting (May 2010)
34 slides from Costain's shareholder meeting presentation, May 6, 2010
Slide 1: Annual General Meeting
Annual General Meeting 6 May 2010 East Room, Tate Modern, Bankside, London, SE1 9TG ‘Choosing Costain’
Slide 2: Presentation to shareholders by Andrew Wyllie, Chief Executive
Annual General Meeting Presentation to shareholders by Andrew Wyllie, Chief Executive Thursday 6th May 2010 ‘Choosing Costain’
Slide 3: Another strong operational performance
Another strong operational performance • Revenue up 7% at £1,061.1m (2008: £996.0m)*, exceeding £1.0 billion for the first time in 16 years • Profit from operations up 14% at £20.8m (2008: £18.3m) • Profit before tax of £18.1m (2008: £23.1m) – As anticipated, impacted by low interest rates and IAS19
Slide 4: Results for the year ended 31 December 2009
‘ ’ Results for the year ended 31 December 2008 Analyst presentation 11 March 2009 ‘Choosing Costain’ 3
Slide 5: Vital strategic investment decisions already being made for the future of UK infrastructure
Vital strategic investment decisions already being made for the future of the UK’s infrastructure ‘Choosing Costain’ 4
Slide 6: Circa 50 GW of new power generation capacity required by 2025
Circa 50 GW of new power generation capacity required by 2025 to ‘stop the lights going out’ ‘Choosing Costain’ 5
Slide 7: Strategic gas storage supply needs to increase by over 300%
Strategic gas storage supply needs to increase by over 300% just to bring UK in line with France & Germany ‘Choosing Costain’ 6
Slide 8: Urgent solutions needed for 100 mtpa of waste
Urgent solutions needed for the 100 mtpa of waste following introduction of landfill legislation ‘Choosing Costain’ 7
Slide 9: Economic growth dependent on efficient transport infrastructure
Economic growth dependent on efficient transport infrastructure: £65 billion investment required over the next decade 8
Slide 10: We have the skills and capabilities to help meet these strategic needs
We have the skills and capabilities to help meet these strategic needs ‘Choosing Costain’ 9
Slide 11: Consulting: established capability to deliver engineering solutions
Consulting: established capability to deliver engineering solutions Over 300 specialists working on nuclear decommissioning programme 10
Slide 12: Construction: world class expertise to deliver major complex projects
Construction: world class expertise to deliver major complex projects St Pancras rail terminal for High Speed 1 completed on time and budget 11
Slide 13: Care: a proven ability to maintain the nation's infrastructure
Care: a proven ability to maintain the nation’s infrastructure Maintaining 1 in 3 motorway miles for the Highways Agency in the UK 12
Slide 14: We are implementing the next stage of our strategy
We are implementing the next stage of our strategy – ‘Choosing Costain’ – for future profitable growth ‘Choosing Costain’ 13
Slide 15: 'Choosing Costain': A strategy for further profitable growth
‘Choosing Costain’: A strategy for further profitable growth • ‘Being Number One’ strategy, implemented since 2006, established Costain as one of UK’s leading engineering and construction companies • ‘Choosing Costain’ is the Group’s next stage of development, in line with changes to industry over t
Slide 16: Focus on organisations with committed spending plans
Focus on organisations with committed spending plans ‘Choosing Costain’ 15
Slide 17: Focus on organisations with committed spending plans
Focus on organisations with committed spending plans ‘Choosing Costain’ 16
Slide 18: Strategy to meet key market trends
Strategy to meet key market trends Changing Revenue Profile* Consulting Construction Care 2006 2010 2014 ‘Being Number One’ 2006 Infrastructure Highways, Rail, Airports 2008 Environment 2010 ‘Choosing Costain’ Water and Waste 2012 Energy and Process Nuclear, Power, and Hydrocarbons & Chemical 2014 1
Slide 19: Record year-end order book
Record year-end order book • Order book up 30% to £2.6 billion £2.6 billion • Major contract awards in year include: – Severn Trent, Greater Manchester Waste, Energy & 5-Year MAC Highways Agency contract Process Community 7% • Repeat business at 84% 6% • 13% maintenance related • In addition, prefer
Slide 20: Order book progression and breakdown
Order book progression and breakdown Private 8% Public 21% 3 2.5 2 £bn 1.5 Public Maintenance 13% 1 Private Regulated 0.5 48% 0 Public Regulated 10% December December December 2007 2008 2009 Order Book as at 31 Dec 2009 C. 70% of order book regulated or maintenance related ‘Choosing Costain’ 19
Slide 21: A longer-term visibility of earnings
A longer-term visibility of earnings 2009 2010 Order Book @ 31 Dec 2008: 2011+ £2.0bn Preferred Bidder 2010 2011 Order Book @ 2012+ 31 Dec 2009: £2.6bn Preferred Bidder 0 200 400 600 800 1000 1200 £m • Securing contracts on increasingly longer-term basis: 65% of order book for work 2011+ • Secured £
Slide 22: Summary
Summary • Strong operational performance in 2009 • Good start to 2010 • Challenging market conditions set to continue • Record year-end Order Book provides long-term visibility • ‘Choosing Costain’ strategy to expand and drive business forward • Cash balance and banking & bonding facilities provide
Slide 23: Slide 23
Slide 24: Annual General Meeting
Annual General Meeting 6 May 2010 East Room, Tate Modern, Bankside, London, SE1 9TG ‘Choosing Costain’
Slide 25: Resolution 1: Adoption of Accounts
Proxies received by the Chairman Ordinary Resolutions Resolution 1 Adoption of Accounts Total Number of Proxies received : 401,268,707 Total Number of Votes For : 394,973,042 Total Number of Discretionary Votes : 673,753 Total Number of Votes Against : 36,000 Total Number of Votes Withheld : 5,585,9
Slide 26: Resolution 2: Adoption of the Directors' remuneration report
Proxies received by the Chairman Ordinary Resolutions Resolution 2 Adoption of the Directors’ remuneration report Total Number of Proxies received : 401,268,707 Total Number of Votes For : 389,878,932 Total Number of Discretionary Votes : 710,857 Total Number of Votes Against : 4,924,094 Total Numbe
Slide 27: Resolution 3: Declaration of Dividend
Proxies received by the Chairman Ordinary Resolutions Resolution 3 Declaration of Dividend Total Number of Proxies received : 401,268,707 Total Number of Votes For : 394,963,778 Total Number of Discretionary Votes : 728,213 Total Number of Votes Against : 16,524 Total Number of Votes Withheld : 5,56
Slide 28: Resolution 4: Election of Mr Tony Bickerstaff
Proxies received by the Chairman Ordinary Resolutions Resolution 4 Election of Directors – Mr Tony Bickerstaff Total Number of Proxies received : 401,268,707 Total Number of Votes For : 394,381,825 Total Number of Discretionary Votes : 715,473 Total Number of Votes Against : 362,518 Total Number of
Slide 29: Resolution 5: Election of Mr Samer Younis
Proxies received by the Chairman Ordinary Resolutions Resolution 5 Election of Directors – Mr Samer Younis Total Number of Proxies received : 401,268,707 Total Number of Votes For : 390,276,443 Total Number of Discretionary Votes : 746,344 Total Number of Votes Against : 3,774,940 Total Number of Vo
Slide 30: Resolution 6: Re-appointment of Auditors and remuneration
Proxies received by the Chairman Ordinary Resolutions Resolution 6 Re-appointment of Auditors and Auditors’ remuneration Total Number of Proxies received : 401,268,707 Total Number of Votes For : 393,893,593 Total Number of Discretionary Votes : 786,910 Total Number of Votes Against : 344,975 Total
Slide 31: Resolution 7: Share Consolidation
Proxies received by the Chairman Ordinary Resolutions Resolution 7 Share Consolidation Total Number of Proxies received : 401,268,707 Total Number of Votes For : 393,604,084 Total Number of Discretionary Votes : 800,774 Total Number of Votes Against : 1,078,768 Total Number of Votes Withheld : 5,785
Slide 32: Resolution 8: Adoption of New Articles
Proxies received by the Chairman Ordinary Resolutions Resolution 8 Adoption of New Articles Total Number of Proxies received : 401,268,707 Total Number of Votes For : 390,517,613 Total Number of Discretionary Votes : 819,520 Total Number of Votes Against : 112,164 Total Number of Votes Withheld : 9,
Slide 33: Resolution 9: General meetings on 14 clear days' notice
Proxies received by the Chairman Ordinary Resolutions Resolution 9 Authorisation to hold general meetings on 14 clear days’ notice Total Number of Proxies received : 401,268,707 Total Number of Votes For : 392,035,752 Total Number of Discretionary Votes : 836,567 Total Number of Votes Against : 2,72
Slide 34: Annual General Meeting
Annual General Meeting 6 May 2010 East Room, Tate Modern, Bankside, London, SE1 9TG ‘Choosing Costain’