Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (November 2021)
53 slides from Monadelphous's shareholder meeting presentation, Nov 23, 2021
Slide 1: Annual General Meeting 2021
ANNUAL GENERAL fll Monadelshous MEETING 202) 23 NOVEMBER 2021 TOGETHER WE DELIVER
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY MATT MACFARLANE – MONADELPHOUS LOCAL CONTENT COORDINATOR Graham (Polly) Farmer Foundation Follow the Dream students in Bunbury, WA, painting a Monadelphous shipping container inspired by the 2021 NAIDOC Week theme, Heal Country. 2
Slide 3: Monadelphous Profile
MONADELPHOUS PROFILE Employees and total workforce as at 30 June 2021 3
Slide 4: Online Attendees – Text Question Process
ONLINE ATTENDEES – TEXT QUESTION PROCESS 123-456-789 When the question function is available, the messaging tab will appear at the top of the screen To submit a question, type your question in the “Ask a question” box and press the send arrow Your question will be sent immediately for review Receive
Slide 5: Online Attendees – Audio Question Process
ONLINE ATTENDEES – AUDIO QUESTION PROCESS 123-456-789 When the audio questions line is available, a link will appear on the home tab titled Asking Audio Questions If you would like to ask an audio question, pause the meeting broadcast and click on the link You will be prompted to enter your name and
Slide 6: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS 123-456-789 When open, the vote will be accessible by selecting the voting tab 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 or se
Slide 7: Board of Directors
2021 ANNUAL GENERAL MEETING John Rubino Rob Velletri Sue Murphy AO Peter Dempsey Chairman Managing Director Deputy Chair and Independent Lead Independent Non-Executive Director Non-Executive Director Helen Gillies Chris Michelmore Dietmar Voss Ric Buratto Independent Independent Independent Independ
Slide 8: Agenda
AGENDA 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 4. Other Business 8
Slide 9: Chairman's Address
2021 ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS John Rubino Sue Murphy AO Chairman Deputy Chair and Lead Independent Non-Executive Director ml Monadelphous
Slide 10: Chairman's Address
CHAIRMAN’S ADDRESS • Long-term reputation for consistent delivery for customers • Preeminent construction contractor in resources and energy, leader in maintenance and industrial services • Broadened service offering and expansion into other industries and geographies • Developed position in enginee
Slide 11: Managing Director's Address
MANAGING DIRECTOR’S ADDRESS 11
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE 1 REVENUE BY DIVISION ($M) $1,953 MILLION 18% NET PROFIT AFTER TAX 979.0 615.9 Engineering MILLION $47.1 29% Construction Maintenance & Industrial Services EARNINGS PER SHARE 976.9 1049.8 CENTS 49.7 29% FY21 FY20 FULL YEAR DIVIDEND CENTS 45.0 29% REVENUE BY END CUSTOMER
Slide 13: Contracts Secured
CONTRACTS SECURED REVENUE BY END CUSTOMER Iron ore 47% Copper 21% Infrastructure 17% Other minerals 7% Oil and gas 5% Coal 3% Refer to slide 52 for contract details 13
Slide 14: Safety Highlights
SAFETY HIGHLIGHTS 6.00 4.00 TRIFR 2.00 2.26 LTIFR - 0.27 2018 2019 2020 2021 • 39% improvement in TRIFR performance • Initiatives implemented to reinforce controls around line-of- fire fatal risks • Updated supervisor safety leadership program • Continued focus on employee mental health and wellbein
Slide 15: Safety Innovation
SAFETY INNOVATION Monadelphous' self-propelled modular transporter Davit frame in operation at the Woodside-operated Pluto LNG Plant, Karratha, WA. 15
Slide 16: People Highlights
PEOPLE HIGHLIGHTS • Substantial ramp up in numbers, total workforce up 37% • High levels of industry activity • COVID-19 restrictions significantly impacted skilled labour supply • Initiatives to bolster employee engagement and attraction 16
Slide 17: People Initiatives
PEOPLE INITIATIVES RETENTION, DEVELOPMENT & ATTRACTION • Strengthened employee development programs, focusing on performance management and succession planning • Formalised Workplace Flexibility Policy and enhanced existing Parental Leave Policy • Reviewed employee benefits and rewards programs • St
Slide 18: People Initiatives – Acceptable Workplace Behaviours
PEOPLE INITIATIVES ACCEPTABLE WORKPLACE BEHAVIOURS 18
Slide 19: 2021 Divisional Highlights – Engineering Construction
2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION REVENUE BY END CUSTOMER REVENUE ($M) Iron ore 73% Lithium 10% Infrastructure 8% 979.0 Copper 6% 615.9 Oil and gas 2% Coal 1% FY21 FY20 • Revenue of $979.0 million1, up 59% • Significant progress on large portfolio of major construction contracts •
Slide 20: Engineering Construction – South Flank
2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – SOUTH FLANK Monadelphous’ scopes of work at BHP's US$3.6 billion South Flank Project, Pilbara, WA. 20
Slide 21: Engineering Construction – West Angelas Deposits C & D Project
2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – WEST ANGELAS DEPOSITS C & D PROJECT Monadelphous employees on the newly constructed primary crusher at Rio Tinto’s West Angelas Deposits C & D Project, Newman, WA. 21
Slide 22: Engineering Construction – Kemerton Plant
2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – KEMERTON PLANT Construction underway at the MARBL Lithium Joint Venture's Kemerton Plant, south-west region, WA. 22
Slide 23: Engineering Construction – Mondium
2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – MONDIUM Click to add text Employees celebrating first ore at Rio Tinto's Western Turner Syncline Phase 2 Project, Newman, WA. 23
Slide 24: Engineering Construction – Zenviron
2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – ZENVIRON Murra Warra Stage 2 balance of plant works underway, regional Victoria. 24
Slide 25: Engineering Construction – Heavy Lift
2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – HEAVY LIFT Heat exchanger module being lifted into position at the Heavy lift services for Fortescue Metals Group’s Iron Bridge Woodside-operated Pluto LNG Plant, Karratha, WA. Magnetite Project, Pilbara, WA. 25
Slide 26: 2021 Divisional Highlights – Maintenance & Industrial Services
2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES REVENUE BY END CUSTOMER REVENUE ($M) Oil and gas 34% Iron ore 33% Coal 13% Other minerals 11% 976.9 1049.8 Copper 8% Infrastructure 1% FY21 FY20 • Revenue of $976.9 million, down 7% • Strong demand for maintenance services in iron ore • Lo
Slide 27: Maintenance & Industrial Services – BHP WA Iron Ore Panel Agreement
2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – BHP WESTERN AUSTRALIA IRON ORE PANEL AGREEMENT Car dumper refurbishment work undertaken by Monadelphous at BHP's Nelson Point Operations, Port Hedland, WA. 27
Slide 28: Maintenance & Industrial Services – Rio Tinto Sustaining Capital Projects
2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – RIO TINTO SUSTAINING CAPITAL PROJECTS Glen 1) Update to Rio Sus Cap photo Sustaining capital projects work being undertaken at Parker Point near Dampier, WA. 28
Slide 29: Maintenance & Industrial Services – Oil and Gas
2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – OIL AND GAS The Woodside-operated Goodwyn Platform, part of the North Employees at the Woodside-operated Karratha Gas Plant, West Shelf Project, WA. Photo courtesy of Woodside. Karratha, WA. Photo courtesy of Woodside. 29
Slide 30: Maintenance & Industrial Services – Buildtek
2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – BUILDTEK Work being undertaken by Buildtek, Monadelphous’ Chile-based maintenance and construction services business. 30
Slide 31: Maintenance & Industrial Services – Services Diversification
2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – SERVICES DIVERSIFICATION Monadelphous continued to diversify its service offering, including in the areas of rail, civil and industrial services. Left image courtesy of Rio Tinto. 31
Slide 32: Social Value
SOCIAL VALUE • Commenced 3-year Indigenous Employment Pathways Program in partnership with Rio Tinto • Developed fourth Reconciliation Action Plan • Maintained female participation in excess of 20% target for graduate and vacation programs • Retained over 90% key female talent • Commenced second Gen
Slide 33: Diversity & Inclusion – Aboriginal & Torres Strait Islander Peoples
SOCIAL VALUE HIGHLIGHTS 2021 DIVERSITY & INCLUSION – ABORIGINAL & TORRES STRAIT ISLANDER PEOPLES Monadelphous continued to make significant progress on its reconciliation journey. 33
Slide 34: Diversity & Inclusion – Gender
SOCIAL VALUE HIGHLIGHTS 2021 DIVERSITY & INCLUSION – GENDER Monadelphous maintained a strong focus on improving female participation across the business. 34
Slide 35: Industry Outlook – Australia
INDUSTRY OUTLOOK – AUSTRALIA RESOURCES CAPEX A$B 40 ENERGY (O&G) CAPEX A$B 35 35 30 30 25 25 20 Copper 20 Gold 15 Other 15 minerals 10 Coal 10 Iron ore 5 5 0 0 2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f 2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f Source: BIS Oxford Economics
Slide 36: Outlook
OUTLOOK • Australian iron ore industry remains buoyant • Significant capital and operating expenditure levels driving heightened demand • Maintenance activity expected to be strong • Demand for battery metals rapidly increasing, presenting opportunities in Australia and overseas • Market conditions
Slide 37: Items of Business
3. ITEMS OF BUSINESS 998.4 841.1 652.9 Work being conducted at Rio Tinto’s West Angelas mine, Newman, WA. 37
Slide 38: 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 2021. 38
Slide 39: Resolution 1: Re-election of Director
RESOLUTION 1: 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 39
Slide 40: Resolution 1: Re-election of Director
RESOLUTION 1: RE-ELECTION OF DIRECTOR The total of valid proxies received for Resolution 1 is 48,848,451 being: 45,591,060 FOR the resolution 2,312,669 AGAINST the resolution 944,722 OPEN to proxy 998.4 841.1 652.9 218,235 ABSTAIN 40
Slide 41: Resolution 2: Re-election of Director
RESOLUTION 2: RE-ELECTION OF DIRECTOR 998.4 To re-elect a Director: 652.9 Mr Enrico 841.1 Buratto who, being eligible, offers himself for re-election. 41
Slide 42: Resolution 2: Re-election of Director
RESOLUTION 2: RE-ELECTION OF DIRECTOR The total of valid proxies received for Resolution 2 is 48,850,051 being: 46,047,001 FOR the resolution 1,832,578 AGAINST the resolution 970,472 OPEN to proxy 998.4 841.1 652.9 216,635 ABSTAIN 42
Slide 43: 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 43
Slide 44: 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 47,806,719 being: 42,169,327 FOR the resolution 4,687,085 AGAINST the resolution 950,307 OPEN to proxy 998.4 841.1 652.9 217,314 ABSTAIN 44
Slide 45: 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 2021. 45
Slide 46: Resolution 4: Adoption of Remuneration Report
RESOLUTION 4: ADOPTION OF REMUNERATION REPORT The total of valid proxies received for Resolution 4 is 47,753,147 being: 42,219,016 FOR the resolution 4,585,109 AGAINST the resolution 949,022 OPEN to proxy 998.4 841.1 652.9 215,008 ABSTAIN 46
Slide 47: Shareholder Questions
SHAREHOLDER QUESTIONS A Monadelphous employee reviewing engineering plans for a major lift at BHP’s South Flank Project, Pilbara, WA. 47
Slide 48: Poll
POLL 998.4 841.1 652.9 Monadelphous employees at a prestart meeting at Rio Tinto’s West Angelas mine, Newman, WA. 48
Slide 49: Other Business
4. OTHER BUSINESS A Monadelphous trainee working in Newman, WA. 49
Slide 50: 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 50
Slide 51: Appendices
APPENDICES APPENDICES
Slide 52: Contracts Secured
CONTRACTS SECURED *Announced subsequent to 30 June 2021 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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