23 Nov

2021 AGM Presentation

1 2 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. 3 MONADELPHOUS PROFILE Employees and total workforce as at 30 June 2021 4 ONLINE ATTENDEES – TEXT QUESTION PROCESS 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 Received 123 - 456 - 789 5 ONLINE ATTENDEES – AUDIO QUESTION PROCESS When the audio questions line is available, a link will appear on the home tab titled Asking Audio Questions You will be prompted to enter your name and the topic of your question before being placed in the audio questions queue 123 - 456 - 789 If you would like to ask an audio question, pause the meeting broadcast and click on the link 6 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 send button, your selection is automatically recorded. You can change your mind or cancel your vote any time before the poll is closed 7 BOARD OF DIRECTORS 8 AGENDA 1. Chairman’s Address 2. Managing Director’s Address 3. Items of Business 4. Other Business 9 CHAIRMAN’S ADDRESS 10 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 engineering, procurement and construction and renewable energy • Attraction and retention of people is key • Strong pipeline of opportunities in core and developing market sectors 11 MANAGING DIRECTOR’S ADDRESS 12 REVENUE BY END CUSTOMER REVENUE BY DIVISION ($M) $ 47.1 49.7 45.0 $ 175.7 $ 1.2 $ 1,953 REVENUE 1 NET PROFIT AFTER TAX EARNINGS PER SHARE FULL YEAR DIVIDEND CASH CONTRACTS SECURED 2 M ILLION MILLION CENTS CENTS MILLION BILLION FINANCIAL HIGHLIGHTS 976.9 1049.8 979.0 615.9 FY21 FY20 Engineering Construction Maintenance & Industrial Services 1 Includes Monadelphous’ share of joint venture revenue 2 Since the beginning of the financial year, including work secured since 30 June 2021 Iron ore 53% Oil and gas 18% Copper 7% Coal 7% Other minerals 6% Lithium 5% Infrastructure 4% 18% 29% 29% 29% 16% 13 Iron ore 47% Copper 21% Infrastructure 17% Other minerals 7% Oil and gas 5% Coal 3% REVENUE BY END CUSTOMER CONTRACTS SECURED Refer to slide 52 for contract details 14 • 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 wellbeing - 2.00 4.00 6.00 2018 2019 2020 2021 TRIFR LTIFR 2.26 0.27 SAFETY HIGHLIGHTS 15 SAFETY INNOVATION Monadelphous' self - propelled modular transporter Davit frame in operation at the Woodside - operated Pluto LNG Plant, Karratha, WA . 16 • 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 PEOPLE HIGHLIGHTS 17 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 • Streamlined application and onboarding processes • Launched updated employer branding in recruitment advertising • Advanced implementation of new and improved recruitment, onboarding and talent management system • Implemented renewed alumni program to win back talent 18 PEOPLE INITIATIVES ACCEPTABLE WORKPLACE BEHAVIOURS 19 979 .0 615.9 FY21 FY20 • Revenue of $979.0 million 1 , up 59% • Significant progress on large portfolio of major construction contracts • Secured approximately $620 million of new contracts since beginning of financial year, including $200 million since 30 June • Awarded five - year $150 million crane services contract with Fortescue Metals Group • Secured several contracts under BHP’s Olympic Dam Asset Projects Framework Agreement and WAIO Panel Agreement • Good progress on Mondium’s Western Turner Syncline Phase 2 Project for Rio Tinto • Zenviron continues to perform strongly REVENUE BY END CUSTOMER 2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION 1 Includes Monadelphous’ share of joint venture revenue REVENUE ($M) Iron ore 73% Lithium 10% Infrastructure 8% Copper 6% Oil and gas 2% Coal 1% 20 2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – SOUTH FLANK Monadelphous’ scopes of work at BHP's US$3.6 billion South Flank Project, Pilbara, WA. 21 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. 22 2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – KEMERTON PLANT Construction underway at the MARBL Lithium Joint Venture's Kemerton Plant , south - west region, WA. 23 2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – MONDIUM Employees celebrating first ore at Rio Tinto's Western Turner Syncline Phase 2 Project, Newman, WA. Click to add text 24 2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – ZENVIRON Murra Warra Stage 2 balance of plant works underway, regional Victoria. 25 2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – HEAVY LIFT Heat exchanger module being lifted into position at the Woodside - operated Pluto LNG Plant, Karratha, WA. Heavy lift services for Fortescue Metals Group’s Iron Bridge Magnetite Project, Pilbara, WA. 26 • Revenue of $976.9 million, down 7% • Strong demand for maintenance services in iron ore • Lower level of demand in oil and gas, but steadily improving • Secured $585 million in new contracts and extensions since beginning of financial year, including $260 million since 30 June • Significant number of sustaining capital projects awarded under BHP and Rio Tinto iron ore panel agreements • Completed significant turnarounds for Woodside and INPEX • Buildtek performed strongly, securing approximately $100 million of new contracts in resources and oil and gas • Continued to grow rail portfolio across Australia • Invested in specialist plant and equipment to support growth of industrial services, civil and specialist oil and gas fabric maintenance capability 2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES REVENUE BY END CUSTOMER REVENUE ($M) Oil and gas 34% Iron ore 33% Coal 13% Other minerals 11% Copper 8% Infrastructure 1% 976.9 1049.8 FY21 FY20 27 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. 28 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. 29 2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – OIL AND GAS Employees at the Woodside - operated Karratha Gas Plant, Karratha, WA. Photo courtesy of Woodside. The Woodside - operated Goodwyn Platform, part of the North West Shelf Project, WA. Photo courtesy of Woodside. 30 2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – BUILDTEK Work being undertaken by Buildtek , Monadelphous’ Chile - based maintenance and construction services business. 31 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. 32 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 • R etained over 90% key female talent • Commenced second Gender Diversity and Inclusion Plan • Reviewed environmental strategy 33 SOCIAL VALUE HIGHLIGHTS 2021 DIVERSITY & INCLUSION – ABORIGINAL & TORRES STRAIT ISLANDER PEOPLES Monadelphous continued to make significant progress on its reconciliation journey. 34 SOCIAL VALUE HIGHLIGHTS 2021 DIVERSITY & INCLUSION – GENDER Monadelphous maintained a strong focus on improving female participation across the business. 35 Source: BIS Oxford Economics, ABS (October 2021) Source: BIS Oxford Economics, ABS (October 2021) Source: BIS Oxford Economics, ABS (October 2021) Source: BIS Oxford Economics, ABS (October 2021) 0 5 10 15 20 25 30 35 40 2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f ENERGY (O&G) CAPEX A$B 0 5 10 15 20 25 30 35 2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f RESOURCES CAPEX A$B Copper Gold Other minerals Coal Iron ore INDUSTRY OUTLOOK – AUSTRALIA - 2 4 6 8 10 12 14 2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f TOTAL MAINTENANCE A$B Gold Copper Iron ore Other minerals Coal Oil and gas - 2 4 6 8 10 12 14 16 2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f ELECTRICITY INFRASTRUCTURE CAPEX A$B 36 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 in oil and gas improving • Transition to clean energy will drive renewable energy developments • 1H22 revenue expected to be similar to pcp • FY22 revenue forecast to be lower than FY21 • Stronger construction activity expected in FY23 • Skilled labour shortages expected to continue • Focus on attraction and retention, working collaboratively with customers and strategic targeting of new work 37 3. ITEMS OF BUSINESS 652.9 841.1 998.4 Work being conducted at Rio Tinto’s West Angelas mine, Newman, WA. 38 ANNUAL REPORT 652.9 841.1 998.4 To receive and consider the Financial Report, Directors’ Report and Auditor’s Report for the year ended 30 June 2021 . 39 RESOLUTION 1: RE - ELECTION OF DIRECTOR 652.9 841.1 998.4 To re - elect a Director : Mr Dietmar Voss who, being eligible, offers himself for re - election . 40 RESOLUTION 1: RE - ELECTION OF DIRECTOR 652.9 841.1 998.4 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 218,235 ABSTAIN 41 RESOLUTION 2: RE - ELECTION OF DIRECTOR 652.9 841.1 998.4 To re - elect a Director : Mr Enrico Buratto who, being eligible, offers himself for re - election . 42 RESOLUTION 2: RE - ELECTION OF DIRECTOR 652.9 841.1 998.4 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 216,635 ABSTAIN 43 RESOLUTION 3: GRANT OF OPTIONS TO MANAGING DIRECTOR 652.9 841.1 998.4 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. 44 RESOLUTION 3: GRANT OF OPTIONS TO MANAGING DIRECTOR 652.9 841.1 998.4 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 217,314 ABSTAIN 45 RESOLUTION 4: ADOPTION OF REMUNERATION REPORT 652.9 841.1 998.4 To consider and adopt the Remuneration Report for the year ended 30 June 2021 . 46 RESOLUTION 4: ADOPTION OF REMUNERATION REPORT 652.9 841.1 998.4 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 215,008 ABSTAIN 47 SHAREHOLDER QUESTIONS A Monadelphous employee reviewing engineering plans for a major lift at BHP’s South Flank Project, Pilbara, WA. 48 POLL 652.9 841.1 998.4 Monadelphous employees at a prestart meeting at Rio Tinto’s West Angelas mine, Newman, WA. 49 4. OTHER BUSINESS A Monadelphous trainee working in Newman, WA. 50 FOR MORE INFORMATION: 652.9 841.1 998.4 Investor Relations Telephone: +61 8 9316 6386 Email: investor_relations@monadel.com.au www.monadelphous.com.au APPENDICES APPENDICES 52 CONTRACTS SECURED *Announced subsequent to 30 June 2021 53 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 and attention has been used in the preparation of forecast information, however, actual results may vary from forecast and any variation may be materially positive or negative . Forecasts, by their very nature, are subject to uncertainty and contingencies may occur which are outside the control of Monadelphous Group Limited . Before making or varying any decision in relation to holding, purchasing or selling shares, securities or other instruments in Monadelphous Group Limited, investors should consider the appropriateness of that investment in light of their individual investment objectives and financial situation and should seek their own independent professional advice . DISCLAIMER & IMPORTANT NOTICE
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