MONADELPHOUS GROUP LIMITED — Annual Report 2021

Nov 22, 2021

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ACKNOWLEDGEMENT OF COUNTRY MATT MACFARLANE – MONADELPHOUS LOCAL CONTENT COORDINATOR

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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.

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MONADELPHOUS PROFILE

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Employees and total workforce as at 30 June 2021

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ONLINE ATTENDEES – AUDIO QUESTION PROCESS

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BOARD OF DIRECTORS

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AGENDA

1. Chairman’s Address

2. Managing Director’s Address

1. Items of Business

2. Other Business

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CHAIRMAN’S ADDRESS

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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

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MANAGING DIRECTOR’S ADDRESS

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FINANCIAL HIGHLIGHTS

REVENUE[1] $ 18% 1 953 , NET PROFIT AFTER TAX $ 29% 47.1 EARNINGS PER SHARE 29% 49.7 FULL YEAR DIVIDEND 29% 45.0 CASH $ 16% 175.7 CONTRACTS SECURED[2] $ 1.2

• 1 Includes Monadelphous’ share of joint venture revenue

2 Since the beginning of the financial year, including work secured since 30 June 2021

REVENUE BY DIVISION ($M)

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979.0
615.9 Engineering
Construction
Maintenance
& Industrial Services
976.9 1049.8
FY21 FY20
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REVENUE BY END CUSTOMER

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Iron ore 53%
Oil and gas 18%
Copper 7%
Coal 7%
Other minerals 6%
Lithium 5%
Infrastructure 4%
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CONTRACTS SECURED

REVENUE BY END CUSTOMER

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Iron ore	47%
Copper	21%
Infrastructure	17%
Other minerals	7%
Oil and gas	5%
Coal	3%

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Refer to slide 52 for contract details

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SAFETY HIGHLIGHTS

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6.00
4.00
TRIFR
2.00 2.26
LTIFR
0.27
-
2018 2019 2020 2021
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• 39% improvement in TRIFR performance

• Initiatives implemented to reinforce controls around line-offire fatal risks

• Updated supervisor safety leadership program

• Continued focus on employee mental health and wellbeing

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SAFETY INNOVATION

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Monadelphous' self-propelled modular transporter Davit frame in operation at the Woodside-operated Pluto LNG Plant, Karratha, WA.

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PEOPLE HIGHLIGHTS

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• 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

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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

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PEOPLE INITIATIVES ACCEPTABLE WORKPLACE BEHAVIOURS

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2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION

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REVENUE BY END CUSTOMER
Iron ore 73%
Lithium 10%
Infrastructure 8%
Copper 6%
Oil and gas 2%
Coal 1%
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REVENUE ($M)

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979.0
615.9
FY21 FY20
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• 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

1 Includes Monadelphous’ share of joint venture revenue

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2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – SOUTH FLANK

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Monadelphous’ scopes of work at BHP's US$3.6 billion South Flank Project, Pilbara, WA.

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2021 DIVISIONAL HIGHLIGHTS

ENGINEERING CONSTRUCTION – WEST ANGELAS DEPOSITS C & D PROJECT

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Monadelphous employees on the newly constructed primary crusher at Rio Tinto’s West Angelas Deposits C & D Project, Newman, WA.

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2021 DIVISIONAL HIGHLIGHTS

ENGINEERING CONSTRUCTION – KEMERTON PLANT

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Construction underway at the MARBL Lithium Joint Venture's Kemerton Plant, south-west region, WA.

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2021 DIVISIONAL HIGHLIGHTS

ENGINEERING CONSTRUCTION – MONDIUM

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Employees celebrating first ore at Rio Tinto's Western Turner Syncline Phase 2 Project, Newman, WA.

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2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – ZENVIRON

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Murra Warra Stage 2 balance of plant works underway, regional Victoria.

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2021 DIVISIONAL HIGHLIGHTS ENGINEERING CONSTRUCTION – HEAVY LIFT

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Heat exchanger module being lifted into position at the Woodside-operated Pluto LNG Plant, Karratha, WA.

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Heavy lift services for Fortescue Metals Group’s Iron Bridge Magnetite Project, Pilbara, WA.

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2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES

REVENUE ($M)

REVENUE BY END CUSTOMER

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Oil and gas 34%
Iron ore 33%
Coal 13%
Other minerals 11% 976.9 1049.8
Copper 8%
Infrastructure 1%
FY21 FY20
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• 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

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2021 DIVISIONAL HIGHLIGHTS

MAINTENANCE & INDUSTRIAL SERVICES – BHP WESTERN AUSTRALIA IRON ORE PANEL AGREEMENT

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Car dumper refurbishment work undertaken by Monadelphous at BHP's Nelson Point Operations, Port Hedland, WA.

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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.

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2021 DIVISIONAL HIGHLIGHTS

MAINTENANCE & INDUSTRIAL SERVICES – OIL AND GAS

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The Woodside-operated Goodwyn Platform, part of the North West Shelf Project, WA. Photo courtesy of Woodside.

Employees at the Woodside-operated Karratha Gas Plant, Karratha, WA. Photo courtesy of Woodside.

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2021 DIVISIONAL HIGHLIGHTS MAINTENANCE & INDUSTRIAL SERVICES – BUILDTEK

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Work being undertaken by Buildtek, Monadelphous’ Chile-based maintenance and construction services business.

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2021 DIVISIONAL HIGHLIGHTS

MAINTENANCE & INDUSTRIAL SERVICES – SERVICES DIVERSIFICATION

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Monadelphous continued to diversify its service offering, including in the areas of rail, civil and industrial services. Left image courtesy of Rio Tinto.

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SOCIAL VALUE

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• 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 Gender Diversity and Inclusion Plan

• Reviewed environmental strategy

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SOCIAL VALUE HIGHLIGHTS 2021

DIVERSITY & INCLUSION – ABORIGINAL & TORRES STRAIT ISLANDER PEOPLES

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Monadelphous continued to make significant progress on its reconciliation journey.

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SOCIAL VALUE HIGHLIGHTS 2021 DIVERSITY & INCLUSION – GENDER

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Monadelphous maintained a strong focus on improving female participation across the business.

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INDUSTRY OUTLOOK – AUSTRALIA

RESOURCES CAPEX A$B

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35
30
25
20
15
10
5
0
2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f
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Source: BIS Oxford Economics, ABS (October 2021)
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ELECTRICITY INFRASTRUCTURE CAPEX A$B
16
14
12
10
8
6
4
2
-
2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f
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Source: BIS Oxford Economics, ABS (October 2021)
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ENERGY (O&G) CAPEX A$B

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40
35
30
25
Copper
20
Gold
Other 15
minerals
Coal 10
Iron ore
5
0
2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f
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Source: BIS Oxford Economics, ABS (October 2021)

TOTAL MAINTENANCE A$B

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14
12
10
8
6
4
2
-
2017 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f
Source: BIS Oxford Economics, ABS (October 2021)
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Gold
Copper
Iron ore
Other
minerals
Coal
Oil and gas
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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

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3. ITEMS OF BUSINESS

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998.4
841.1
652.9
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Work being conducted at Rio Tinto’s West Angelas mine, Newman, WA.

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ANNUAL REPORT

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To receive and consider the Financial Report, 998.4 Directors’ Report 652.9 and Auditor’s 841.1 Report for the year ended 30 June 2021.

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RESOLUTION 1: RE-ELECTION OF DIRECTOR

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To re-elect a Director: Mr Dietmar Voss who, 998.4 being eligible, offers himself for re-election. 652.9 841.1

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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	841.1 998.4 OPEN to proxy
218,235	~~652.9~~ ABSTAIN

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RESOLUTION 2: RE-ELECTION OF DIRECTOR

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To re-elect a Director: Mr Enrico Buratto who, 841.1 998.4 652.9 being eligible, offers himself for re-election.

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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	841.1 998.4 OPEN to proxy
216,635	~~652.9~~ ABSTAIN

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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.

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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	841.1 998.4 OPEN to proxy
217,314	~~652.9~~ ABSTAIN

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RESOLUTION 4: ADOPTION OF REMUNERATION REPORT

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To consider and adopt the Remuneration 998.4 Report for the year ended 30 June 2021. 652.9 841.1

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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	841.1 998.4 OPEN to proxy
215,008	~~652.9~~ ABSTAIN

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SHAREHOLDER QUESTIONS

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A Monadelphous employee reviewing engineering plans for a major lift at BHP’s South Flank Project, Pilbara, WA.

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POLL

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998.4
841.1
652.9
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Monadelphous employees at a prestart meeting at Rio Tinto’s West Angelas mine, Newman, WA.

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4. OTHER BUSINESS

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A Monadelphous trainee working in Newman, WA.

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FOR MORE INFORMATION:

Investor Relations Telephone: +61 8 9316 6386 Email: investor_relations@monadel.com.au www.monadelphous.com.au

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APPENDICES APPENDICES

CONTRACTS SECURED

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*Announced subsequent to 30 June 2021

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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 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.

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