Monadelphous Group Limited (8MP.F) Earnings Call Transcript & Summary

Well, good morning, ladies and gentlemen, and welcome to the 2025 Monodelphous Annual General Meeting. And as it's now 10:00 and we have a quorum, I declare this meeting open. So my name is Phil Trueman. I'm the CFO and Company Secretary here at Monadelphous. And I'd like to commence today's proceedings by introducing Laura Philips, our learning and training adviser in our indigenous engagement team for an acknowledgment of country. So Laura supports the engagement of Aboriginal and Torres Strait Islander peoples within monodelphous and plays a key role in the retention, development and attraction of our indigenous employees. So welcome, Laura.

[indiscernible] Monadelphous, good morning, and welcome to BoJack Country. My name is Laura, and I'm delighted to be here to open this AGM and present this acknowledgment of country. We are holding this a meeting on the lands of the Wojapeoplehar the largest of the 4 language groups of the nongeation. WajaCountry extends from Yansheto North, Mandatorilf, and work to the East, covering a total of 6,700 square kilometer meters. The photo on the slide is a recent polypharma follow the Dream Scholarship morning tea. Through the follow the Dream program, we aim to attract and develop young First Nations people in the interest of the resources sector. During the year, we're proud to extend our partnership with the polypharma Foundation for our fab 2 years. Finally, I'd like to acknowledge the Wage people, the traditional owners of the lands we meet today and are prime my respect to all aboriginal and torsades joining us today. Thank you.

Thanks, Laura. So today's meeting is being held at the University of Western Australia as well as online to ensure that all of our shareholders, proxies and guests have the opportunity to attend either in person or virtually. So for those of you in the room today, I'll quickly go through some safety information. So in the case of an emergency, you'll hear an alignment directions over the PA system telling you to evacuate the premises. Please do so immediately following the fire exit signs at the front of the auditorium. And the club's fire wardens will be on hand to assist and you'll be directed to assemble at the far corner of Riley Oval near the Dolphin Theatre. Please remain on the Oval until you're instructed to return to the building. And as we're also running the meeting virtually today, there is a very small chance that despite all of our preparation and backup plans, technical difficulties may arise during the meeting. In the unlikely event this does occur, our chair has the discretion as to whether and how the meeting should proceed, having regard to the number of shareholders impacted and the expectation [indiscernible] to ask a question further, please follow the instructions written below the broadcast. Due to time constraints, it might not be possible for us to answer all questions, but if this does happen, we'll answer them via e-mail or by posting responses on our website. As usual, voting today will be conducted by a way of a poll on all items of business, and there'll be time later in the meeting for voting here in the room. However, in order to provide our online participants with enough time to vote, will shortly open the online voting for all resolutions. So for our online attendees, if you're eligible to vote at this meeting, once voting opens, press the vote icon and all resolutions will be activated with voting options. To cast your vote, simply select 1 of the options. There's no need to hit a submit or enter button as your vote will automatically be recorded and you'll receive a vote confirmation notification on your screen. You can change your vote up until the time I declare voting closed. So I now declare the online voting open on all items of business, and you can cast your votes at any time, and I'll give you a warning before I move to close voting. So I'd now like to take the opportunity to introduce you to our Board of Directors and our executive management team. So with us here in the room this morning from your left to right is our Chair, Rob Velletri, our Managing Director, are Beach, our Deputy Chair and Lead Non-Executive Director, Sue Murphy; and our Nonexecutive Directors, Dietmar Voss, Helen Gillies and Rick Baretto. We also have members of our executive management team here today, including Adam Cook, the EGM of our Engineering Construction division Alistair Reid, the EGM of our Maintenance and Industrial Services division and Dean Bravich, our General Manager of Human Resources. And in addition, representing our auditors, EY. We're joined in the room by Peer Draer. Welcome Pierre, and thanks for joining us this morning. So Rob will commence today's AGM by providing an overview of Monodelphas' strategic progress over the last 12 months. And then we'll hand over to Zoran, who will speak in more detail about the company's highlights and performance for the 2025 financial year as well as the outlook for the foreseeable future. Adam and Alastair will also speak to some highlights of each of their respective divisions. I'll then take care of the formal business of the day before opening to shareholders for questions and conducting the poll. So I'll now hand over to our first speaker of the morning, our Chair, Rob Velletri.

Thanks, Phil, and good morning, everyone. I'm very pleased to present the Chair's address for Monadelphous marking another year of strong performance, real strategic progress and exciting opportunities ahead. We've continued to deliver solid returns for our shareholders while building a stronger and more resilient business. Demand for our services remained strong throughout last year and into the current one, supported by long-term customer relationships and continued expansion of our services. We secured approximately $2.3 billion in new contracts and extensions in the 2025 financial year, which is our highest on record and we've added a further $570 million in new work since year-end, which provides ongoing momentum for this year. We achieved major contract wins across energy, iron ore and renewables. In the energy sector alone, we were awarded over $1 billion in major construction and maintenance contracts. And in the iron ore sector, which also remained a major contributor, our long-standing relationships with Rio Tinto, BHP and Fortescue generated a strong pipeline of work. We continue to advance our long-term growth strategy particularly in markets linked to the energy transition. Our renewable energy joint venture, Zenviron, delivered a strong performance, while the acquisition of Perth-based High energy service strengthened our capability in high-voltage services -- electrical services. Last month, we also announced the acquisition of Kerman contracting, a long established design and construction business based in Perth specializing in nonprocess infrastructure. Both acquisitions, which we'll talk more about shortly, broaden the scope of our services and strengthen our competitive position across key target sectors. Our ongoing success, of course, is down to our people. During the year, our workforce grew by more than 20% to around 9,100, reflecting elevated activity levels right across our business. Our safety performance, however, fell short of expectations. Our 12-month total recordable injury frequency rate of 4.42% was disappointing, and we've launched targeted safety campaigns to lift that performance with safety, as always, remaining our highest priority. We made important progress on our diversity commitments exceeding all targets under our stretch reconciliation action plan, surpassing our indigenous workforce participation target and increasing our spend with indigenous businesses. Gender diversity remained a key focus, and it was great to see several of Monadelphous' female employees recognized with industry awards. We also advanced our Net Zero initiatives moving to electrifying our fleet, transitioning our operations to renewable power and supporting our customers' decarbonization objectives. Looking ahead, the long-term outlook for all our sectors remain strong despite some global uncertainty in the shorter term. Sustained production levels across most commodities continue to underpin demand for sustaining capital works and maintenance services with investment in new projects in WA's iron ore sector expected to continue. The outlook for the energy transition and critical metals is strengthening. And the energy sector continues to present significant opportunities both in construction and in our maintenance services. Australia's net 0 ambitions are driving a high level of activity across generation, storage and transmission and Zenviron is well placed to win further work in wind and battery energy storage sectors. In conclusion, Monadelphous is in a great position for continued success. We remain focused on earnings quality and a disciplined approach to long-term growth by broadening our services and diversifying our markets. We will continue to build a strong, resilient business and remain firmly committed to delivering solid sustainable returns for our shareholders. Now on behalf of the Board, I extend my deepest thanks to our dedicated team for their outstanding efforts, also to our shareholders, customers and communities for their ongoing confidence and support. I'll now hand over to Zoran to provide you with an overview of the performance of the business for the 2025 financial year and the outlook.

Thanks, Rob, and good morning, everyone. And a big welcome to Gail Rubino, who is here with us today. Thanks for joining us, Gale. It has been a very good year for Monadelphos. So let's start by having a look at how we performed in FY '25. Monadelphous delivered revenue of $2.27 billion, up 12% on last year, thanks to a lift in construction activity. Earnings before interest, tax, depreciation and amortization came in at $158.2 million, a 24.2% increase with the EBITDA margin improving from 6.28% to 6.98%. Around 1/3 of this uplift was due to nonoperating items, mainly insurance proceeds with the rest coming from stronger underlying performance. Higher operating margins helped drive net profit after tax up to $83.7 million, a 34.6% increase, which translates to earnings of $0.85 per share. The Board declared a final dividend of $0.39, bringing the full year fully franked dividend to $0.72 per share, an 85% payout ratio. We finished the year with a strong cash balance of $205.8 million, operating cash flow was $81 million with a conversion rate of 77%. Our balance sheet strength continues to give us the ability to invest in opportunities. This year, that included acquiring high energy service and more recently, Kerman contracting. We secured around $2.3 billion in new contracts and extensions up to 30 June 2025, and we've secured another $570 million of work in this new financial year. This slide shows the size and location of contracts secured. As Rob mentioned, we won over $1 billion in major construction and maintenance work with blue-chip customers in the energy sector, including Shell and Woodside. A standout was a 7-year contract to keep providing maintenance services at Shell's Prelude FLNG facility of WA's Northwest Coast, an operation we've supported for 9 years now. We also secured a major construction contract with Woodside for modifications to the Pluto LNG Train 1 facility to support the processing of Scarborough gas. Demand from WA's iron ore sector remains strong. We picked up a solid stream of construction and maintenance work with long-term customers, Rio Tinto, BHP and Fortescue. For Rio Tinto, this included a number of maintenance contracts and extensions across WA. We also won a 5-year master services agreement for Marine structural integrity work at Cape Lambert and we've secured 2 works packages already. To support this, we've invested in a 250 tonne jackup barge. Since 30 June, we've also been awarded a major construction contract for BHP's Jimblebar train loadout replacement project, plus several long-term maintenance and project services agreements with both BHP and Rio Tinto. During the year, we secured a multidisciplinary construction contract at BHP's Prominent Hill operations expansion project. Mondium, our joint venture with Lycopodium, on a design and construct contract with Rio Tinto for a new sampling facility at Cape Lambert. Melcor secured a civil and structural concrete contract at the Project series urea plant near Dampier, with Alevo providing heavy haulage services. Our renewable joint ventures in Biron strengthened its position with wins at the Lotus Creek wind farm in Central Queensland and the Wooreen battery energy storage system in the Latrobe Valley Victoria. Overall, we are in a strong position moving forward with a healthy pipeline of committed work. Now let's talk about our people. As Rob mentioned, we ended the year with over 9,000 people across our workforce, including subcontractors, up 23% from last year. This growth was driven by high levels of maintenance activity and a continued ramp-up in construction work. Around 330 graduates, undergraduates, apprentices and trainees took part in our early careers programs. We were proud to be named in Australia's top 20 intern programs and top 20 graduate employers for 2025. Over 100 future leaders participated in our in-house leadership programs and our registered training organization engaged with more than 2,800 trades people through over 6,000 training interactions. We also continue to embed the respective Monodelphous framework, rolling out respect in every step, a leadership-driven initiative that reinforces the behaviors we expect from everyone. Let's move on to safety and well-being. We remain committed to our goal of 0 harm. Following our key principle, the Safeway is the only way. Disappointingly, our 12-month total recordable injury frequency rate rose to 4.42 incidents per million hours worked. And in response, we launched targeted campaigns to drive improvement to our safety performance. Pleasingly, our high potential incident frequency rate has remained at around historically low levels. We continued the delivery of our fatal risk program with focus on eliminating high-risk hazards such as pedestrian interaction with mobile plant as well as monitoring high-risk task and verifying the effective application of our fatal risk controls. We also deployed a driver fatigue and distraction monitoring system across our fleet, advance the rollout of pedestrian avoidance technology in telehandlers and forklifts, and added an overload override alert system to our Franic cranes. Monadelphous, Nalcor and Ilevro again received industry recognition for safety and innovation securing several awards and nominations. Now let's look at diversity, community and environment. We began renewing our stretch reconciliation action plan continuing to focus on indigenous employment, training and development and supporting indigenous businesses. Our indigenous workforce reached 3.5%, and we continue to build development opportunities through apprenticeships, traineeships and the indigenous Pathways program in partnership with Rio Tinto. Spend with indigenous businesses rose 35% to more than $27 million. We also consulted broadly to inform the renewal of our gender diversity and inclusion plan, and our talented women were recognized in the 2025 Women in Resources awards. Our community grants program continued to grow across the Karratha, Darwin and Bunbury regions, more than doubling the number of grants awarded to grassroots organizations. On the environmental front, we continued progressing towards net zero, trialing electric utility vehicles, adding more hybrids and electric vehicles to our fleet. We installed solar power on a number of our workshop facilities with more installations planned. We also continue to support our customers in meeting their own decarbonization goals. Now on to operational highlights. Our Engineering Construction division recorded revenue of $925.3 million, a 30% increase driven by strong activity across iron ore, energy, copper, lithium and renewables. The division secured about $890 million in new work with another $315 million, one so far this financial year. In iron ore, we continue to provide construction services to BHP, Fortescue and Rio Tinto with work progressing at BHP's Car Dumper 3 renewal project and dewatering works at orebody 32. We provided shutdown services at Rio Tinto's Western rain project and heavy lift services for Fortescue's Pilbara iron ore sites. We also grew our portfolio of multidisciplinary integrated construction projects including the award post year-end of a major contract for BHP's Jimblebar train loadout replacement project. Spanning earthworks and Civils by Melcor as well as structural, mechanical, piping, electrical and instrumentation works and off-site fabrication and procurement by into Forge. In energy, we secured and commenced the major multidisciplinary contract for modifications at Woodside's Pluto LNG Train 1 and progressed work at Chevron's Jans IO compression project. At Talison's Greenbushes operation, we continued construction work with Melcor delivering associated civil works. We also successfully completed construction of the wet plant at Liontown Kathleen Valley project. into forge supplied structural steel work and pipe racks for Iluka's Eneabba Rare Earths refinery project. After year-end, they also secured a 2-year extension with Origin Energy for the supply of packaged and modular equipment for Australia Pacific LNG, a relationship, which has been in place since 2015. In Mongolia, we completed construction of surface infrastructure works at Oyu Tolgoi, maintaining a strong safety record throughout the project. I will now hand over to Adam Cook, Executive General Manager of our Engineering Construction division to talk through some more divisional projects highlights.

Thanks, Zoran, and good morning, everyone. Back in 2023, we were awarded a contract for early works and planning as well as the civil structural, mechanical, piping, electrical and instrumentation works associated with BHP's Card upper 3 renewal project in Port Hedland. In executing this work over the past 2 years we have seen peak numbers of 270 on-site and supported 6 major shutdowns. To deliver 1 of the most complex high-impact shutdowns ever, we acquired the Rubino, a 1,600 tonne to Dana crawler crane, one of the most powerful in Australia. The Rabino was brought in to do what no other could execute a precision lift of 452.5 tonne rotary cell at its 37.5 meter rates making a historic milestone for our business. The results saved 38,000 labor hours and the shutdown was completed 92 hours ahead of schedule, diving an additional 5.85 million tonne per annum throughput. You can see a video of the Carape project on the screen now. [Presentation]

As Zoran mentioned, we secured a significant volume of new work in the energy sector during the year, including a multidiscipline construction contract for Woodside for modifications required to the Pluto liquefied natural gas train 1 facility in Crate WA. The scope includes provision of mechanical, electrical, instrumentation and commissioning works for Vasily and associated infrastructure, which will enable processing of gas from the Scarborough Energy project. As shown on the slide, Aleva recently transported and installed the first module, a gas metering skid, weighing just under 200 tonnes. We transported to site using self-propelled modular trailers and it was installed with precision using a specialized hydraulic gantry system. We continue to strengthen our reputation for successful delivery with our key customer Woodside, who have worked with us for more than 20 years. During the year, we were awarded and progressed work on a multidisciplinary construction contract at BHP's Prominent Hill operations expansion project, an underground mining operation and copper processing facility located in South Australia. The project involves the sinking of a 1,300-meter deep shaft and construction of a 6.5 metric tonne per annum materials handling system to transport ore from the underground mine to the surface color stockpile, supporting BHP's plans to expand the copper operations in the region by more than 50%. The integrated contract draws on the capability across the division, including structural, mechanical, piping, electrical and instrumentation, civil construction by Melcor, supply and fabrication of steelwork by Inter forge and heavy lift engineering in cranage. The work positions us well within the copper and critical minerals sector with a projected increase in opportunities to meet forecast demand. Now I'd like to hand back to Zoran to introduce the maintenance division highlights.

Thanks, Adam. Our Maintenance and Industrial Services division delivered another record year, $1.35 billion in annual revenue, driven by strong demand for maintenance and sustaining capital works. The division secured around $1.4 billion in new work during the year with another $260 million secured since 1 July 2025. Maintenance activity in the energy sector remained high. supporting key customers, Shell, Impax and Woodside across onshore and offshore assets. We continued maintenance and turnaround services for Woodside as well as securing a contract the hookup and commissioning of Woodside's floating production union in the Scarborough Gasfield. Maintenance and Mining Construction Services continued its Shell's Prelude FLNG facility under the major long-term contracts secured during the year. Post year-end, we were awarded service services contract with Technip Energies for the hookup and commissioning of Shell's Krux platform forming part of the backfill to Proud. At Impax's Ikeas operations in Darwin, activity remained strong following turnarounds for trains 1 and 2, along with ongoing work offshore. We can continued decommissioning work for Petrovac on the Northern Endeavour floating production storage and offtake facility, which has now moved off station. In iron ore, we experienced sustained demand and continued to provide fixed plant maintenance and sustaining capital work for Rio Tinte fixed plant services and nonprocess infrastructure for Fortis and general maintenance services for BHP. We were awarded a 3-year shutdown and maintenance contract at South32's Worsley Alumina and a new contract for minor project works continuing our 20-year relationship there. I'll now hand over to Alastair Reid, Executive General Manager of our Maintenance and Industrial Services division for more on our maintenance highlights.

Thanks, Zoran, and good morning, everyone. We continue our long-standing maintenance support for the User central processing facility and the Ichthys venture flighting production, storage and offloading facility in the Browse Basin of Western Australia. During the year, we supported the progression of the Phase IIb project, which included the burst compression module transport, lift and installation at the facility. The introduction of the module onto the facility will enable improved gas recovery and extend the field life with greater efficiency. After the successful module installation, our team focused on preparations for the offshore shutdown with more than 60 kilometers of electrical and instrumentation cables to be pulled and terminated. And the integration of the new heat exchanger and seawater lift pump -- our team has maintained an ongoing commitment to delivering quality outcomes at Ichthys LNG since the award of our first maintenance contract with Impax back in 2017. During the year, we were awarded a 7-year maintenance and construction services contract for Shell, QGC's Curtis Island LNG operations in Gladstone, Queensland. This had a brownfields project construction services -- to the existing scope of midstream maintenance and turnaround services, which we have been providing at QGC since 2013. Under the contract, we are responsible for facilities, maintenance, shutdown planning and execution, plant and equipment, supply and management, along with warehouse labor. Our embedded teams help maintain a strong integrated culture with Shell QGC further strengthening our position as a specialist LNG maintenance shutdowns and project service provider. As Rob mentioned earlier, we continue to progress our markets and growth strategy related to the energy transition with the acquisition of Perth-based high-voltage electrical services business, High Energy Service, or HES. HES provides specialist high-voltage electrical maintenance and testing, commissioning and engineering, including to major resources companies throughout WA. And it adds to our existing electrical services capability and broadens our service offering to our existing customers. I will now pass it back to Zoran to present a business update and the outlook. Thank you.

Thanks, Al. On 10 November, Monadelphous released a business update to the ASX outlining that the company has experienced strong operating conditions and high activity levels across the business during the first 4 months of the current financial year. The momentum we saw in the last quarter of FY '25 has continued underpinned by the record amount of work secured during the 2025 financial year. Demand for our engineering construction services has remained strong, with more revenue coming from vertically integrated construction projects especially those incorporating Melcor's civil capability and Inteforge's fabrication services. This really shows that our strategy to enhance our overall delivery capability and broaden our service offering is paying off. We've also seen increased major project activity in Zenviron and Mondium, along with a significant increase in demand from energy customers especially in the brownfield developments and turnaround services. Earlier this month, we finalized the acquisition of West Australian-based Kerman contracting. Kerman specializes in designing and constructing nonprocess infrastructure, bulk storage and material handling facilities for some of Australia's largest companies across resources, agriculture and transport import infrastructure. With a strong reputation built over more than 40 years as a family-owned business, Kermit is a great fit for us. And I call out to Chris Kerman, Chair of Kerman Contracting, representing the family here today. Welcome to the Mono's team, Chris. The acquisition expands our capabilities even further, allowing us to offer nonprocess infrastructure design and construction services in both existing and new markets. Kerman also brings a solid forward order book, including a major contract worth around $170 million for Rio Tinto's Hope Downs to mine site in the Pilbara. The project is for the detailed design and construction of non-process infrastructure to support mining fleet maintenance, servicing and administration of site operations. As mentioned earlier, our committed pipeline remains robust with more than $570 million in new contracts secured since the start of the financial year and more expected in the coming months. We are currently forecasting revenue for the half year ending 31st December 2025 to be around $1.5 billion. While we expect activity to moderate in the second half, our full year revenue is forecast to be around 20% to 25% higher than last year. This slide shows current and forecast Australian market conditions for our business per Oxford Economics. The sectors we operate in all show strong forecast for capital investment and operating expenditure in the coming years. Australia is undergoing a major energy transition, moving towards a decarbonized economy. At the same time, the demand for energy is growing rapidly, partly impacted by the rise of artificial intelligence and the expansion of data centers. This represents a long-term opportunity that will play out over decades to come, which will require a significant level of investment. Monadelphous is well positioned to play a key role in this transition by leveraging our core capabilities and developing new services across 4 energy transition sectors shown on the slide. Right now, we are actively delivering work across critical minerals, renewable energy generation and storage and the electrification of our customer operations. And last week, we entered into an agreement to acquire Australian Power Industry Partners, APIP, which you can see on the right-hand side of the slide. APIP is a small Queensland-based specialist provider of end-to-end high-voltage solutions, including design management, procurement, construction and renewals of power transmission, distribution and substation infrastructure. This acquisition further expands our capability and supports our positioning in the transmission and distribution sector. We see this as the early phase of what is expected to be a strong long-term pipeline of opportunities. Now to the outlook. Long-term demand across the resources and energy markets remains resilient and is forecast to continue to stay robust. Despite ongoing short- to medium-term impacts from moderating global economic growth and elevated geopolitical uncertainty. Production levels across most commodities continue to underpin demand for sustaining capital works and maintenance services. While iron ore prices are expected to soften, production rates are likely to be maintained, supporting continued investment in new projects across Australia -- Western Australia's iron ore sector with a focus on efficiency to preserve its globally competitive position. The outlook for Energy Transition Metals is strengthening following a period of improved pricing, over the medium to long term, mining and mineral processing development across the sector, including copper and critical minerals, is projected to increase, requiring substantial capital investment to meet growing demand. The energy sector continues to present significant opportunities supported by a number of gas construction projects and sustained demand for maintenance services. Monadelphous remains well positioned to continue to support customers across a full asset life cycle, including late life and decommissioning support. Australia's net 0 emissions objective and the decarbonization initiatives of major customers continue to underpin a strong pipeline of near- and long-term prospects with increasing investment across generation, storage and transmission infrastructure. Zenviron remains well positioned to secure further work in the wind farm and battery energy storage sectors and to capitalize on the continued growth in this market. Looking ahead, Monadelphous remains focused on delivering quality of earnings through a selective approach to new work, collaborative customer relationships, high standards of execution and a disciplined approach to the allocation of risk. Supported by a strong balance sheet, the company aims to drive long-term growth by continuing to expand its services, diversifying its markets and pursuing targeted acquisition opportunities to build a more resilient business. In closing, I want to thank our entire Monodelphous team for their dedication and commitment, which are fundamental to our continued growth and success. I also extend my thanks to our customers, shareholders and many other stakeholders for their ongoing trust and support. I'll now hand you back to Phil to complete the formal proceedings for the day.

Thank you, Zoran. So as mentioned previously, if you're online and have a question, please select the Q&A icon and type your question in the text box. And once you finish typing, press the send button, if you're online and want to ask a question verbally, please follow the instructions written below the broadcast on the online platform. And for those of you in the room, I ask that all questions be held until after all the resolutions have been introduced. So today's resolutions will be voted on via a poll, which will be conducted after all the items of business have been tabled and discussed. I'll provide some guidance to the people in the room about the poll prior to commencing, and there will be assistance available to shareholders who have queries. And we'll tell you the results of the poll at the end of the meeting and announce them on the ASX later today. So as at the proxy close date, we'd received valid proxies around 61 million shares or about 61% of the issued capital. and we'll show the manner in which the proxies are to vote on the screen before each resolution is voted on. Bear a proxy vote has been directed to the chair without a specific voting instruction, the Chair will vote in favor of each resolution except where a voting exclusion applies. So the minutes of last year's AGM have been signed, and a copy is available for inspection. And if you'd like to view the minutes please come and have a chat to me after we finish the meeting. So we've got 5 items of business to consider at today's meeting and they were set out in the notice of AGM and the accompanying explanatory memorandum which was released to the ASX and is available to the shareholders on our website. And unless anyone objects, I will take that notice as read. The 2025 annual report contains the financial statements of the company and the reports of the director and the auditor for the financial year ended 30 June 2025. Now no resolution is required. However, if shareholders would like to raise any questions or comments with either Peter Dreyer from EY or with the Board regarding the financial statements and reports. For those online, please type your questions now. And for those in the room, we'll address questions during the Q&A session. So the meeting will now consider the formal items of business. And the first item of business is resolution 1, to elect -- to reelect rather a director, Ms. Sue Murphy, who retires by rotation in accordance with the company's constitution and being eligible offers itself for reelection. Now Sue was first appointed to the Board in June 2019 and is Deputy Chair and Lead Independent Non-Executive Director of the Board. She is also Chair of the company's Remuneration Committee and a member of the Audit and Nomination Committees and Sue is a civil engineer with 46 years of experience in the resources and infrastructure industries. Now the Board, with the exception of Ms. Murphy, who abstained, unanimously recommends that shareholders vote in favor of her will be election noting the contribution Sue makes to the Board. The valuable skills and experience she brings, the past performance, commitment and dedication and the current and future needs of the company. The proxies received in relation to resolution 1 are displayed on the screen. And as previously mentioned, we'll conduct the poll after all resolutions have been discussed. The second item of business is Resolution 2 to reelect a director, Ms. Helen Gillies, who retires by rotation in accordance with the company's constitution and being eligible offers itself for reelection. Now head on was first appointed to the Board in September 2016 and is Chair of the company's Audit Committee and a member of the Nomination and Remuneration Committees. Helen is a lawyer with a strong background in risk, law, governance and finance as well as extensive experience in mergers and acquisitions. She has 29 years of experience in the construction and engineering services industry. The Board, with the exception of Ms. Gillies who abstained, unanimously recommends that shareholders vote in favor of her reelection, noting the valuable contribution Helen makes to the board, who ongoing loyalty, skills, commitment and dedication and the current and future needs of the company. And the proxies received in relation to resolution 2 are displayed on the screen. The third item of business is resolution 3, the granting of performance rights to the managing directors are envivaged under the company's short-term incentive plan for the year ended 30 June 2025. So it's proposed to Mr. Bebic, or his nominee be issued with 18,647 performance rights under the Monadelphous Group Limited combined reward plan for the year ended 30 June 2025. The key terms of the performance rights are contained in the Notice of Meeting. Now voting exclusions apply to this resolution, Resolution 3 as well as resolutions 4 and 5, and the details thereof are set out in the Notice of Meeting. The Board, with the exception of Mr. Bebic who abstained, acknowledges the outstanding contributions are and continues to make to the company and therefore, unanimously recommends shareholders vote in favor of this resolution and the proxies received in relation to resolution 3 are displayed on the screen. The fourth item of business is resolution 4, granting of performance rights to the Managing Director, Zoran Bebic Beverage, under the company's long-term incentive plan for 2025. We -- so it's proposed that Mr. Bebitus nominee be issued with 29,538 performance rights under the Monadelphous Group Limited long-term senior leadership performance reward plan for 2025. And and the key terms of the performance rights are contained in the notice of meeting. And the Board, with the exception of Mr. Bebic unanimously recommends shareholders vote in favor of this resolution and the proxies received in relation to this resolution are displayed on the screen. And the last item of business for today is resolution 5, which is the adoption of the remuneration report, which is contained in the directors' report to shareholders. Now the vote on Resolution 5 is advisory only and will not bind the directors of the company. However, the Board will take the outcome of the vote into consideration when reviewing remuneration practices and policies. And the Board recommends that shareholders vote in favor of the adoption of the remuneration report and the proxies received in relation to Resolution 5 are shown on the screen. Now before we move to the poll, and as mentioned earlier, we'll now open up the floor in the room for questions. If you have something you wish to ask, please raise your hand and 1 of our attendants will being a microphone to you. For the benefit of those listening online, we ask that you please speak into the microphone so that everyone can hear your question clearly. And as mentioned previously, if you're online and have a question, please select the Q&A icon and type your question. And once you finish typing, please hit the send button.

So I'll open the floor to questions. Mr. Corrick from the ASA.

Thanks, Donna. My question is directed to the Chair. First of all, thank you very much, Rob and Christi Douglas, 1 of the company's secretaries for making time to meet me about 3 weeks ago. My name is Jeff Corrick, and I'm representing 34 proxies on behalf of the Australian Shareholders Association. My question concerns is prompted by the reelection of Sue Murphy, although we support the resolution we are campaigning for an improved Board skills matrix preferably reported in the annual report. The materials -- some material at present is in the corporate governance statement. And we feel that it requires a fair amount of imagination on behalf of shareholders to interpret the roles and previous jobs that directors have had and turn that into what the skills are that are required. And similarly, in the notice of motion -- Notice of the Meeting, the descriptions are all about the roles they've had, but don't really mention the skills. People who have directorial ambitions are generally not shy of our promoting their skills. Ms. Murphy, in particular, is a case in point, listing more than 20 skills in her LinkedIn entry, but I'm sure not all shareholders would use LinkedIn to look this up. There is no problem in recognizing that skills are not covered. The important point is that the deficit is recognized usually that these can be filled by buying in expertise. And last year, we talked about the approach to information technology security and Monadelphous covers that quite well, it seems to be in either employing expertise or buying in advice when required. And Similarly, we heard mention of Ms. Gillies having expertise in law and the association, I guess, with acquisitions. Also, the Institute of Company Directors gives us a good example of what a skills matrix should look like with each director's skills recorded. So my question is, should we expect more detail in reporting director skills in the future.

Well, as you say, Jeff, if you -- there is detail around individual directors buyers in their corporate governance statement. And we do give a matrix of skills and the number of directors with those skills in the annual report, which I think we would think it's sufficient. However, I will take your comments on board, and we will consider that for our next annual report.

Any further questions in the room?

[ Paul Fanning ] shareholder, Melbourne, a few years since I've been, but congratulations to the Board and to the executive on the performance, particularly in the last 6 months, the share price performance has been exponential and probably reminds me a bit of the mining boom going back a number of years ago, and that would be a reasonably long-term shareholder. I guess my questions relate to 1 is the skills matrix. But I'm very concerned about the risk factors, which have been incurred in the last 12 months, I really would like some more detail about when and how these occurred as far as our injury in the workplace because obviously, it features into the skills matrix, which we don't really know who or what actually has what skills. But we really need to sort of drill down a bit in the workplace injuries, how do they happen? Obviously, there's been ratification actions put in place since, but at the time, what did happen, how did it happen and what the consequences on the contract values. Now would you like some questions on ramp in addition ...

Can I answer that question first, Paul? In terms of both Rob and I acknowledge that our safety performance, particularly if you look at our key lagging indicator, our total recordable incident injury frequency rate is certainly not at the level that we expect. It was 4.42% for the year. We saw probably we have a 25% to 30% deterioration. What that measure captures is a workplace injury that requires an employee to seek medical treatment or has some sort of restricted work or it's a restricted work injury. Now what we do, do, we do a lot of proactive work in advance to ensure that our team is complying with our expectations around safety. When an incident or an injury does occur, we have a very detailed review process to understand what the contributing factors to the injury were and we make sure that we share that across the business to try and eliminate injuries going forward. So that's in the injury space. And the other point I did touch on or made in my speech was around our high potential injury frequency rate, which is more important and is, in my opinion, the key measure in the business. So they are the incidents that occur that have the potential to cause serious harm or fatality across the business. And the positive in terms of our overall HSE performance for the year was that our high potential injury frequency rate is tracking at a consistently low level. So whilst we have injured absolutely injured employees, they have been lower level injuries. A lot of those injuries I'd but in the category. I think 50% of our injuries have been hand or finger related injuries that have required switches or or small fractures.

Yes. Just a couple of other questions. Now I might move to the Resolution 3 and 4. If I look at Pages 9 and 10 of the notice of meeting, firstly, I noticed that there are approximately 213 employees are eligible for the STI, which I find interesting number to quite high. But for a growing business, probably as long as the results generated, Well, I can probably accept that. However, next paragraph down, second paragraph on the bottom of Page 9, we seem to have a bit of a miss construct between what's written here and what is in Item 8 on Page 10. So I would like to think there that there's a this ambiguity in the value of the performance rights and also the share price, strike price. It's actually reconciled in the 2 lots of numbers are actually identical, not different. Can someone project plan what has happened or what is the interpretation place. I can explain it, and it is reconciled -- and I'm comfortable those numbers are correct. There is a slight difference.

Yes, there is. There is because they're actually talking about 2 slightly different concepts. One is the award of the short-term incentive that was made to the Managing Director. And the second 1 then is the valuation of that award as it goes through the accounts. The difference between those 2 numbers is because of the fact that there is a proportion of that that's issued in equity and it vests over time. The difference is that Mr. Bebic will lose out on some dividends because all of those shares are not hedged from day 1. Okay, for the future.

And I think I spoke to 1 of the staff members who probably right the annual report. I'm not sure who writes the no Notice of the Meeting, but can this be tightened up a bit in the future, please? -- whoever -- and the other thing which I struggled to find in the Remy port is -- can we get a clear definition of what LTI rights and what STI rights vested in the previous financial year, please?

Yes, it is -- we recognize that to meet our compliance obligations. It is a lengthy report. But all of the required detail in there is necessary. But unfortunately, through no fault of our own, it is a lengthy report and it is not necessarily the easiest to read -- we have made big efforts this year to try and simplify it again, but it is the report that is required to meet our compliance obligations.

Can I -- just from my last point, Phil, can you actually look looking a bit more I'm happy to have words with you after the AGM, and we can but probably a little bit a bit more clarity and less ambiguity because most company reports do actually have quite clearly defined rights or options which have vested, be they LTI in the previous 12 months?

Yes. I'm comfortable after this. Paul will say down, and I'll show you where that formation is contained. Okay. Thank you for those questions. Are there any further questions in the room? Okay. So moving now to questions from our shareholders listening online. And I'll ask Al Reid to introduce the online questions on behalf of the shareholder who posed the question.

Thanks, Phil. We do have a small number of questions online. The first 1 is from Stephen Mayne. And it actually starts with some positives. Any comments about the high-quality hybrid or don't. So it avoids people from the East Coast having to travel to the most isolated city in the country or in the world. And also comments about well done disclosing the proxy position to the ASX showing no material protest votes once again. The first question, however, is -- relates to would we consider disclosure of the poll results by both shares and shareholders so you can see the sentiment of the retail shareholders.

Yes, thank you for that question. Yes, we did consider it this year. When we went in to analyze the actual voting there is a substantial amount of shareholders shares that are under custodian companies. And they vote as one, it is very difficult -- well, which is very difficult for us to actually get the next level of detail down. When we had a look at it if we had posted that information, we believe it would have been misleading and not a fair representation. And the other factor that we thought of or that we considered was that we had probably all resolutions were averaged about 97% for, so we were comfortable on that basis to stick with the way we've done it historically. But we will consider that going forward if we can get a better and deeper level of information from custodian companies.

Thanks, Phil. The next question is also from Stephen Mayne. And it relates to the impact of AI. In particular, on staff, do we see that staff numbers -- do we see the staff numbers falling over the next 12 months due to the rapid rollout of AI. And the second part of the question is, which parts of our business and operations, the most prospective for AI productivity gains? And how are you embracing those opportunities?

I think -- there's a few questions in there. I think that is a challenge that every company is facing at the moment to understand how artificial intelligence is going to impact the world and the way we operate. To be honest with you, the time frame of 12 months. No, I don't think it is going to materially impact our business at all. the way that we are, at the moment, thinking about artificial intelligence and it's used within our business. And we actually are utilizing artificial intelligence within the business. We are trialing some other bits of artificial intelligence and we're also -- we've got a good view on what else is out there as opportunities that we can look at. But the biggest benefits that we have noted and already implemented within our business, relates to improving the -- or reducing the safety risk. So we have implemented, as Zoran mentioned, and I think Rob might have mentioned it as well during their presentations, we've implemented a number of bits of technology using artificial intelligence that will help us to reduce safety risk, which is obviously the key priority for our business. And then also, we are looking at it to improve productivity across the business. It's a tool similar to any other bits of software that will enable our people to perform their the functions in a more productive manner and improve the quality of their outputs. -- bearing in mind that there are risks attached with artificial intelligence as well. And we have implemented a number of bits of artificial intelligence through the business, and we're already seeing some real productivity gains coming through from that.

Thank you, Phil. The last question we have from Mr. Stephen Mayne is for Zoran. And the question relates to the extent and breadth of engagement you have with analysts, Brokers, fund managers and institutional investors after each of the 6 monthly results to the ASX. How? We would like some details on that, please? And how this compares or what we do for the retail investors. And the last part of that question is, would we consider running a big end of town Investor Day as many other major companies do? And would we include retail investors?

So if I think about our full -- post our full year results presentation and our half year presentation, Phil and I actively engage in an investor roadshow predominantly on the East Coast, but we certainly meet people here in Perth. That consists of I think if I reflect on the full year, that probably consists of 50 engagements with institutional investors, brokers and analysts between us, likewise, a similar number in the half year. And outside of that, we regularly interacting and meeting with key stakeholders outside of that. In fact, I think I have 3 sessions this afternoon. In relation to -- what was the last part of the question in terms of a big Investor Day? Happy to take that comment or feedback on board and consider it in terms of the way we facilitate our investor engagements going forward.

I might just add to that. We do take the time and invest effort into supporting our retail shareholders as well. Events like this, the half year and the full year, presentations are posted on our website as well. So retail shareholders have access to the same webcasts and transcripts that the big institutionals do as well. And I think the other thing I'd note as well is that we committed that every phone call we received from a shareholder, either Kristie or myself or Zoran will respond to. Yes, Mr. Corrick.

Jeff Corrick representing the Australian shareholders again. Just if I may comment that I am very happy with the reporting that you do. The release of the half yearly and yearly results, what do you call it, online conference. I understand that I could ask questions if I wanted to. I think anybody can. And I think that's a very excellent thing that Monadelphous does.

Thank you very much -- no more questions? Okay. So as we've got spoke too soon. Mr. Fanning.

Just -- there are a couple of questions related to the financial statements. I commend Monadelphous on the acquisitions of high NG services and current and contracting. My query on behalf of shareholders would be what contribution could they make in the coming FY '26 year if there is known. And also, the third tangent is what is the -- what would be an acceptable EBITDA margin, which is -- has risen FY '25 could or should it be higher than what it is perhaps going back in history. And Rob, you might -- you would have a good insight into EBITDA margin from many years ago, too. So kind of through those 3 questions to either Zoran, Rob or to Phil.

Okay. I'll never go at the question. In terms of the contribution from high energy services and Chemin contracting, -- we've got to work through an integration and a transition process, but we certainly expect both businesses to be earnings accretive going forward. And I would expect that to occur in the following or in the current financial year. In terms of EBITDA margin, I mean, the way we set our longer-term growth targets, we've absolutely got stretch in there in the sense that we're looking to continue to improve the EBITDA margin going forward. Now that's simple to say and hard to achieve. The reality is you quite rightly pointed out, Paul, if you go back a long period of time in the early 2000s, our EBITDA margin was stronger than it certainly is now. But if you look at the improvement trajectory or the trajectory of the EBITDA over the last 3 or 4 years has continued to improve. And I'd like to think that -- the team will continue to work hard to drive further improvement in the EBITDA margin, where it can get to, I'm not sure, but we certainly have an aspiration to continue to grow the margin.

Yes. Look, the only thing I would add is the comparison we're making or drawing from I don't know when it was 4 years ago during the boom. Our business was very different in those days. It was very heavily construction-oriented and very little services now. Our services business is like 60% of our business which, as recurring revenue, you wouldn't necessarily expect the margin to be as high as it can be if you're performing really well with just construction revenue.

[indiscernible] all my questions [indiscernible].

Okay. So we'll now conduct the poll. So for those shareholders, representatives of shareholders and proxy holders attending online, please ensure that you've cast your vote on all resolutions using the online voting button, and we'll now conduct the poll for the shareholders in the room. At the time of registration, those entitled to vote being shareholders, representatives of shareholders and proxy holders were given green admission cards. And each shareholder present, either in person or by proxy has 1 vote per resolution for every share owned. So Rod Somes from Computershares agreed to act as returning officer for the poll. And if you have any questions during the polling process, please raise your hand and a Computershare representative will come over and assist you. If there's anyone who believes they're entitled to vote but is not registered to vote, can you please raise your hand? Okay. If you're here in more than one capacity, for example, on your own behalf and as a proxy for another shareholder, you will have been issued with as many green admission cards as you have separate capacities. And on the reverse side of your green admission card is your voting paper and instructions. If you're a proxyholder and have only directed votes, as shown on the summary of votes attached to your admission card, all you need to do is print your name and sign the voting paper, then lodge it in the ballot box. In respect of any open votes, a proxy holder may be entitled to cast, you need to mark a box beside the resolution to indicate how you wish to cast your open votes. Shareholders also need to mark a box beside the resolution to indicate how you wish to cast your votes. Please ensure you print your name where indicated and sign the voting paper. And when you finished filling in your voting paper, please lodge it in one of the ballot boxes being circulated to ensure your votes are counted. And if you need any help, please raise your hand. I'll close the voting system in a few minutes. So please ensure you've cast your vote on all resolutions, and I'll now pause to allow everybody time to finalize your votes. [Voting]

Does anyone need any more time to complete their voting paper or lodge their voting paper? Okay. So on that basis, I now declare the poll closed. And the results of the poll will now be tallied and will publish it on the later today. Is there any other business today that can be properly brought to the meeting around the management of the company? Okay. If there's no other business, I declare this meeting closed, and I would like to take this opportunity on behalf of the board and everybody at Monadelphous. So thank you for your attendance today and for your continued support of our company. And that ends today's formalities. For those of you online, thank you for joining us. And for those of you in the room, we'd like to invite you to come and share in some light refreshments in the foyer. Thank you.