Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (November 2016)
42 slides from Monadelphous's shareholder meeting presentation, Nov 22, 2016
Slide 1: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 Tuesday 22 November
Slide 2: Company Profile
2016 AGM Company Profile Monadelphous Group Limited (ASX:MND) is an S&P/ASX 200 At 30 June 2016 People 4,438 company that provides construction, maintenance and industrial Market Capitalisation* $950m services to the resources, energy and infrastructure sectors. Net Cash $186m * As at 18 Nov 2016 EN
Slide 3: Board of Directors
2016 AGM ll Monadelphous Board of Directors John Rubino Rob Velletri Chairman Managing Director ™= f Peter Dempsey Helen Gillies Dietmar Voss Chris Michelmore (Lead) Independent Independent Non-Executive Independent Non-Executive Independent Non-Executive Non-Executive Director Director Director Dir
Slide 4: Agenda
2016 AGM Agenda 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 4. Other Business 4
Slide 5: 1. Chairman's Address
2016 AGM 1. Chairman’s Address JOHN RUBINO 5
Slide 6: Chairman's Address
2016 AGM Chairman’s Address JOHN RUBINO • Significant change in industry over recent years • Positioned the business for long term growth • Focused on maximising returns in core markets • Targeted entry into new customer and service markets • Strong balance sheet provides opportunity to advance mark
Slide 7: 2. Managing Director's Address
2016 AGM 2. Managing Director’s Address ROB VELLETRI 7
Slide 8: Group Highlights
2016 AGM Group Highlights FINANCIAL OPERATING STRATEGIC • Sales Revenue $1.36b • $1.1b new contracts and • Secured Shell Australia contract extensions Prelude FLNG services • EBITDA $113.6m • Three new long-term oil and • Established presence in the gas contracts US • NPAT $67.0m • Strengthened posi
Slide 9: Financial Performance
2016 AGM Financial Performance YEAR ENDED 30 JUNE FY16 FY15 CHANGE Sales Revenue $m 1,364.7 1,865.0 (26.8%) EBITDA $m 113.6 168.0 (32.4%) EBITDA Margin % 8.33 9.01 (0.68pp) NPAT $m 67.0 105.8 (36.7%) NPAT Margin % 4.90 5.67 (0.77pp) EPS cps 71.8 113.9 (37.0%) DPS (Fully Franked) cps 60.0 92.0 (34.8%
Slide 10: Safety Scorecard
2016 AGM Safety Scorecard INJURY FREQUENCY RATES* • Record safety performance • 22% improvement • TCIFR of 2.45 • Focus on safety leadership and culture underpins continued improvement 10
Slide 11: People
2016 AGM People EMPLOYEES BY DIVISION EMPLOYEE NUMBERS AT 30 JUNE 2016 • Labour availability continues to improve • Decreasing construction workforce offset by increasing maintenance activity • Key talent retention remains strong • Consolidated and rationalised support services 11
Slide 12: Contracts Secured
2016 AGM Contracts Secured 12
Slide 13: Sales Revenue Summary
2016 AGM Sales Revenue Summary DIVISIONAL HIGHLIGHTS REVENUE BY DIVISION FY16 FY15 CHANGE $m $m % Engineering Construction 757.6 1,245.5 (39.2) Maintenance and Industrial Services 608.4 621.2 (2.1) Internal Eliminations (1.3) (1.7) Total 1,364.7 1,865.0 (26.8) • Lower demand for construction work co
Slide 14: Engineering Construction
2016 AGM Engineering Construction Inpex-led Ichthys Project Onshore LNG Facilities, Darwin, Northern Territory 14
Slide 15: Engineering Construction (cont'd)
2016 AGM Engineering Construction (cont’d) Ashburton Lyndhurst Irrigation Scheme (ALIS), South Island, New Zealand 15
Slide 16: Engineering Construction (cont'd)
2016 AGM Engineering Construction (cont’d) Well head separator skids, pipework and one of five welding cells commissioned at SinoStruct in China 16
Slide 17: Engineering Construction (cont'd)
2016 AGM Engineering Construction (cont’d) Relocating gas export pipeline ‘string’ at the Inpex-led Ichthys Project Onshore LNG Facitlities, Darwin, Northern Territory 17
Slide 18: Maintenance and Industrial Services
2016 AGM Maintenance and Industrial Services QGC plant, Curtis Island, Queensland 18
Slide 19: Maintenance and Industrial Services (cont'd)
2016 AGM Maintenance and Industrial Services (cont’d) Woodside-operated Karratha Gas Plant, Karratha, Western Australia (image courtesy of Woodside Energy Ltd.) 19
Slide 20: Maintenance and Industrial Services (cont'd)
2016 AGM Maintenance and Industrial Services (cont’d) CITIC Pacific Mining’s Sino Iron Project, Cape Preston, Western Australia 20
Slide 21: Maintenance and Industrial Services (cont'd)
2016 AGM Maintenance and Industrial Services (cont’d) Oil Search Limited’s Central Production Facility, Southern Highlands Province, Papua New Guinea 21
Slide 22: Australian Market Conditions
2016 AGM Australian Market Conditions TOTAL RESOURCES (A$B) TOTAL ENERGY (A$B) Source BIS Shrapnel - Mining in Australia (released May 2016) Source BIS Shrapnel - Mining in Australia (released May 2016) TOTAL INFRASTRUCTURE (A$B) TOTAL MAINTENANCE (A$B) Source BIS Shrapnel - Value of work done Const
Slide 23: Markets and Growth Strategy
2016 AGM Markets and Growth Strategy MAXIMISE POSITION EXPAND CORE NEW SERVICES/MARKETS IN CORE MARKETS SERVICES OVERSEAS Secured a number of long-term Secured Shell Australia Prelude Developing position in US, Monaro maintenance contracts FLNG services New facilities maintenance Sinostruc
Slide 24: Zenviron selected as preferred tenderer for BoP
2016 AGM INCORPORATED JOINT VENTURE BETWEEN MONADELPHOUS AND ZEM ENERGY Zenviron is a full service balance-of-plant (BoP) contractor providing engineering, procurement and construction services to the renewable energy sector in Australia and New Zealand. • Based in Newcastle, NSW, currently has work
Slide 25: Mondium: Monadelphous and Lycopodium joint venture
2016 AGM INCORPORATED JOINT VENTURE BETWEEN MONADELPHOUS AND LYCOPODIUM Mondium brings together the complementary strengths, resources and experience of Monadelphous’ multidisciplinary engineering and construction capabilities with Lycopodium’s technical expertise and minerals project delivery. • Mo
Slide 26: Outlook
2016 AGM Outlook • Australian market conditions in resources and energy to remain challenging • Capex required to sustain increased production levels • Monadelphous in strong position to capitalise on new maintenance opportunities • Forecast increase in infrastructure investment • Monadelphous’ posi
Slide 27: Shareholder Questions
2016 AGM Shareholder Questions CITIC Pacific Mining’s Sino Iron Project, Cape Preston, Western Australia 27
Slide 28: 3. Items of Business
2016 AGM 3. Items of Business Oxley Creek Sewage Treatment Plant, Rocklea, Queensland 28
Slide 29: Annual Reports
2016 AGM Annual Reports To receive and consider the Financial Report, Directors’ Report and Auditor’s Report for the year ended 30 June 2016. 29
Slide 30: Resolution 1: Re-election of Director
2016 AGM Resolution 1: Re-election of Director To re-elect a Director: Mr John Rubino who, being eligible, offers himself for re-election. 30
Slide 31: Resolution 1: Re-election of Director
2016 AGM Resolution 1: Re-election of Director The total of valid proxies received for Resolution 1 is 33,167,518 being: 27,872,936 FOR the resolution 3,649,062 AGAINST the resolution 1,577,292 OPEN to proxy 68,228 ABSTAIN 31
Slide 32: Resolution 2: Re-election of Director
2016 AGM Resolution 2: Re-election of Director To re-elect a Director: Ms Helen Gillies who, being eligible, offers herself for re-election. 32
Slide 33: Resolution 2: Re-election of Director
2016 AGM Resolution 2: Re-election of Director The total of valid proxies received for Resolution 2 is 33,166,518 being: 31,372,272 FOR the resolution 98,676 AGAINST the resolution 1,598,036 OPEN to proxy 97,534 ABSTAIN 33
Slide 34: Resolution 3: Fees to Non-Executive Directors
2016 AGM Resolution 3: Fees to Non-Executive Directors To consider that for the purposes of ASX Listing Rule 10.17 and Clause 11.15 of the Company’s Constitution, the maximum aggregate amount of directors’ fees that may be paid to the Company’s non-executive directors per annum is increased by $150,
Slide 35: Resolution 3: Fees to Non-Executive Directors
2016 AGM Resolution 3: Fees to Non-Executive Directors The total of valid proxies received for Resolution 3 is 33,167,518 being: 29,256,082 FOR the resolution 1,916,670 AGAINST the resolution 1,588,395 OPEN to proxy 406,371 ABSTAIN 35
Slide 36: Resolution 4: Adoption of Remuneration Report
2016 AGM Resolution 4: Adoption of Remuneration Report To consider and adopt the Remuneration Report for the year ended 30 June 2016. 36
Slide 37: Resolution 4: Adoption of Remuneration Report
2016 AGM Resolution 4: Adoption of Remuneration Report The total of valid proxies received for Resolution 4 is 33,162,518 being: 27,707,043 FOR the resolution 2,515,588 AGAINST the resolution 1,577,175 OPEN to proxy 1,362,712 ABSTAIN 37
Slide 38: Poll
Monadelphous 2016 AGM Poll
Slide 39: 4. Other Business
2016 AGM ll Monadelphous 4. Other Business
Slide 40: For more information:
2016 AGM For more information: Investor Relations Telephone: +61 8 9315 7312 Email: investor_relations@monadel.com.au www.monadelphous.com.au 40
Slide 41: Important Notice
2016 AGM 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
Slide 42: Appendix - Notes to Financials
2016 AGM Appendix - Notes to Financials NON-IFRS FINANCIAL EBITDA RECONCILIATION INFORMATION Monadelphous Group Limited results are FY16 FY15 reported under International Financial Reporting Standards (IFRS) as issued by $’000 $’000 the International Accounting Standards Board. The Company discloses
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