Slide 1: ASX cover letter: 2010 Annual Results Presentation
17 August 2010 For personal use only Company Announcements Australian Securities Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000 Australia Dear Sir/Madam RE: Monadelphous 2010 Annual Results Presentation Please find attached a copy of the 2010 Annual Results Presentation to be issued toda
Slide 2: 2010 Annual Results Presentation
For personal use only 2010 Annual Results Presentation 17 August 2010
Slide 3: Agenda
Agenda For personal use only Business Highlights Rob Velletri Financial Highlights Zoran Bebic Divisional Update Rob Velletri Strategy and Outlook 02
Slide 4: Business Highlights
For personal use only Business Highlights 03
Slide 5: Group Highlights
Group Highlights For personal use only NPAT up 12% to $83.2m, EPS up 11% to 96.9c, DPS up 12% to 83c Financial Sales revenue up 14% to $1,275m EBITDA up 11% to $129m, margin steady (10.1%) Healthy cash conversion - $96.0m operating cash flow Solid organic growth driven by high level of EC activity (
Slide 6: 2010 Divisional Highlights
2010 Divisional Highlights For personal use only Record sales of $890 million, up 15% Engineering Construction Awarded $350 million in new construction contracts Expanded multi-disciplinary capability Maintenance Sales up 7% to $376 million and Industrial Retained all key customers and contracts Ser
Slide 7: Key Contract Wins
For personal use only 06 Key Contract Wins
Slide 8: Continued Market Diversification
Continued Market Diversification For personal use only Market Segment 07
Slide 9: Continued Service Diversification
Continued Service Diversification For personal use only Service Segment SMP denotes structural, mechanical and piping works E&I denotes electrical and instrumentation works 08
Slide 10: Strong Service Relationships
Strong Service Relationships For personal use only M&IS Contract Status and Duration ! ! " 09
Slide 11: People Performance
People Performance For personal use only Highlights: #$ % Employee numbers in line with high #$ % activity levels #$ % #$ % Labour market conditions expected #$ % to tighten Focus on maximising productivity by " # attracting and retaining the right people & ! % 10
Slide 12: Safety Scorecard
Safety Scorecard For personal use only Highlights: ( ) *# + !* , - . / 0 • Significant improvement in safety performance – TCIFR improved 25% & ! ) *5 + !* & (# • Continued investment in HSE processes, systems and leadership training 4 , ) *5 + !* 4&(# ' ' • HSE initiatives progressed following DuPo
Slide 13: Financial Highlights
For personal use only Financial Highlights 12
Slide 14: Financial Highlights
Financial Highlights For personal use only Jun 10 Jun 09 % Change Sales Revenue $m 1,275.4 1,122.5 13.6% EBITDA $m 129.4 116.1 11.5% Operating Cash Flow $m 96.0 113.8 - 15.6% NPAT $m 83.2 74.2 12.1% NPAT Margin % 6.5 6.6 - 1.5% EPS cps 96.9 87.5 10.7% DPS cps ff 83 74 12.2% Return on Equity % 57.7 6
Slide 15: Historical Performance
Historical Performance For personal use only #$ % ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' / , &+ ' .!* ) &+ ' % ( )( * &+ ' +14% +11% +12% #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' #$ ' $ % # & ' ,- - % # & ' #% &+ ' +11% +12% -8% 14
Slide 16: NPAT Contribution Analysis
NPAT Contribution Analysis For personal use only NPAT Contribution ($M) (1.3) (0.5) 1.1 (4.2) 3.9 10.0 83.2 74.2 FY09 NPAT Sales Growth Margin Impact Overheads (Net) D&A Interest (Net) Tax FY10 NPAT
Slide 17: Sources and Uses of Cash
Sources and Uses of Cash For personal use only ' ' ' ' Cash Sources ' Disposals (Skystar Divestment) Shares Issues (net) Operating Cash Flow $M Cash Uses ! Acquisitions and Equity Investments Capex (net) Dividends ! Cash Retention ! ! Shares Issued (net) = proceeds from issue of shares – bought back
Slide 18: Divisional Highlights
For personal use only Divisional Highlights 17
Slide 19: Divisional Revenue Summary
Divisional Revenue Summary For personal use only Jun 10 Jun 09 % Change Engineering Construction $m 890.0 775.0* 14.8% Maintenance and Industrial Services $m 376.2 351.9 6.9% Skystar $m 12.7 10.5 21.0% Internal Eliminations $m -3.5 -14.9 TOTAL $m 1,275.4 1,122.5 13.6% * Comparative adjusted to inclu
Slide 20: Engineering Construction
Engineering Construction For personal use only / , Highlights: &+ ' &0 ' #$ ' • Strong performance drives contract growth • Awarded $350 million in new construction contracts #$ ' • Strong multi-disciplinary capability on large scale construction projects #$ ' " • Developing heavy lifting capability
Slide 21: Maintenance & Industrial Services
Maintenance & Industrial Services For personal use only Highlights: / , &+ ' &0 ' • Retention of all key customers and contracts #$ ' • Awarded $300 million in new contracts and contract #$ ' extensions • Secured first facilities management contract #$ ' # $ • Significant progress made on Mackay #$
Slide 22: Strategy Progress
Strategy Progress For personal use only 2010 Progress Markets & Growth • Maintained strong position in core markets • Continued market expansion • To maximise growth and returns from our core markets – energy and infrastructure of resources and energy • Solid growth in multi-disciplinary services •
Slide 23: Market Conditions
Market Conditions For personal use only FY09 Current Resources Energy Infrastructure Declining Activity Stable/Flat Activity Expanding Activity 22
Slide 24: Outlook
Outlook For personal use only Entered FY11 with a healthy forward workload Current tendering activity encouraging Healthy project pipeline across core markets, (LNG, iron ore, coal) Revenue flow dependant on project timing Industry capacity issues are coming, though timing uncertain Further expansio
Slide 25: 2010 Annual Results Presentation
For personal use only 2010 Annual Results Presentation 17 August 2010
Slide 26: Supplementary Disclosures
For personal use only Supplementary Disclosures 25
Slide 27: Appendix 1: Profit & Loss
Appendix 1: Profit & Loss For personal use only FY10 Chg FY09 FY08 FY07 FY06 5 YEAR SUMMARY $m on pcp $m $m $m $m Sales revenue 1,275.4 13.6% 1,122.5 954.0 963.7 532.0 Other revenue 4.5 (10.0%) 5.0 7.4 1.6 1.5 Total revenue 1,279.9 13.5% 1,127.5 961.4 965.3 533.5 Operating expenses (1,150.5) 13.8% (
Slide 28: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet For personal use only FY10 Chg FY09 FY08 FY07 FY06 5 YEAR SUMMARY $m on pcp $m $m $m $m Cash and equivalents 149.2 (2.0%) 152.2 126.4 101.4 61.7 Receivables 121.4 9.8% 110.6 204.9 96.0 81.6 Inventories 23.6 53.2% 15.4 6.6 13.1 16.4 Available-for-sale financial assets 16.9 8
Slide 29: Appendix 3: Cash Flow
Appendix 3: Cash Flow For personal use only FY10 Chg FY09 FY08 FY07 FY06 5 YEAR SUMMARY $m on pcp $m $m $m $m Receipts from customers 1,416.2 11.1% 1,274.6 1,049.2 1,025.9 535.5 Payments to suppliers/employees (1,290.5) 14.5% (1,127.1) (928.5) (907.4) (459.5) Income Tax Paid (32.8) (12.1%) (37.3) (3
Slide 30: Appendix 4: Key Engineering Construction Contracts
Appendix 4: Key Engineering Construction Contracts For personal use only Customer Project Name State Location Commodity Description Australia Pacific LNG Ltd Origin Gas Plant - QLD Chinchilla Oil & Gas Electrical and instrumentation installation Talinga works Australia Pacific LNG Ltd Talinga WTP QL
Slide 31: Appendix 4: Key Engineering Construction Contracts cont'd
Appendix 4: Key Engineering Construction Contracts cont’d For personal use only Customer Project Name State Location Commodity Description BHP Billiton Worsley Worsley MIE E&I WA Collie Alumina Electrical, instrumentation and control works Alumina Pty Ltd Boyne Smelter Limited Alumina Delivery Syste
Slide 32: Appendix 4: Key Engineering Construction Contracts cont'd
Appendix 4: Key Engineering Construction Contracts cont’d For personal use only Customer Project Name State Location Commodity Description Gladstone Area Water Gladstone and Yarwun QLD Gladstone and Water Design, supply, delivery, installation and Board Fluoride Dosing Plants Yarwun commissioning of
Slide 33: Appendix 4: Key Engineering Construction Contracts cont'd
Appendix 4: Key Engineering Construction Contracts cont’d For personal use only Customer Project Name State Location Commodity Description Nambucca Shire Council Burpengary East QLD Brisbane Water Includes civil infrastructure, installation and Sewerage Treatment commissioning of the mechanical and
Slide 34: Appendix 4: Key Engineering Construction Contracts cont'd
Appendix 4: Key Engineering Construction Contracts cont’d For personal use only Customer Project Name State Location Commodity Description Construction of QLD Coal Civil, structural, mechanical and electrical works for the ! CHPP construction of the new CHPP and associated ancillary works MESA A WA
Slide 35: Appendix 5: Key M&IS Contracts
Appendix 5: Key M&IS Contracts For personal use only Customer Project Name State Location Commodity Description Anglo Coal Coal handling QLD Moura Coal Multi disciplined maintenance, sustaining preparation plant capital works and shutdown services maintenance BHP Billiton (Nickel Framework Agreement
Slide 36: Appendix 5: Key M&IS Contracts cont'd
Appendix 5: Key M&IS Contracts cont’d For personal use only Customer Project Name State Location Commodity Description Chevron Gorgon Project WA Barrow Island Oil and Gas Facilities operations and maintenance Facilities Management management of fixed and mobile assets including utilities, buildings
Slide 37: Appendix 5: Key M&IS Contracts cont'd
Appendix 5: Key M&IS Contracts cont’d For personal use only Customer Project Name State Location Commodity Description Power & Water Local infrastructure NT Darwin Oil and Gas, Power Structural, mechanical, piping, electrical and maintenance, capital works and and Water instrumentation projects and
Slide 38: 2010 Annual Results Presentation
For personal use only 2010 Annual Results Presentation 17 August 2010
Slide 39: Investor and analyst contact
For personal use only www.monadelphous.com.au Information for Investors/Analysts: Rachael Cutler – Investor Relations Manager Telephone: (61 8) 9315 7429 Fax: (61 8) 9316 1950 Email: rcutler@monadel.com.au 38
Slide 40: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only 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 o