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FY17 Business Highlights
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FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

Mar 12, 2018

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Page 1: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

FY17 Business Highlights

Page 2: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

Vision and ValuesOur Values

We strive to deliver results that stretch our capabilities.

EXCELLENCE

TEAMWORKWe work together and support

each other to achieve our goals.

INTEGRITYWe are honest in all aspects and

treat people with respect and dignity.

ACCOUNTABILITYWe take responsibility and

accountability for our actions and hold others to account.

Our Vision

To be the market leader in project delivery,

achieving sustainable growth through the

quality of our people and the strength of our

relationships.

Page 3: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

Infrastructure

Renewables

Resources

Our BusinessOffice Locations

Gladstone

Perth

Brisbane

Melbourne

Auckland

BHP South Flank

Rio Amrun

Gullen

Albatross

VicRoads

Homeground

FMG Tug Pen

QGC

NZ Schools

NZ Corrections

CITIC Pacific Sino

Rio Silvergrass

Leading national contractor to the Infrastructure, Resources & Renewables sectors

Page 4: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

FY17 HighlightsWe are active in growing markets

Infrastructure

QLD NSW

Renewables

NZWA

Resources

VIC

Revenue by Sector

Locations

47%

47%

6%

44%

25%

10%

16%

5%

Strong Balance Sheet

Senior DebtZERO

Net Cash$17M

NTA$135M Available Facilities$185M

$304m

$304m

Page 5: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

FY17 HighlightsNew contracts, expanded capability, improving markets

NZ, Corrections

NSW, Renewables

Victoria, Transport

Pilbara, Iron Ore

QLD, BauxitePilbara, Iron Ore

NSW, Health

NZ Corrections

Gullen

VicRoads

BHP South Flank

Rio AmrunRio Silvergrass

Bonalbo

Infrastructure

Renewables

Resources

$40m$50mNZ$60m

Page 6: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

What matters to usHealth, safety and environment

The health and safety of every employee is foremost in everything we do. It is a key focus of our Group and is underpinned by our values system.Key highlights for the 2017 financial year include:

▪ third party certification through DNV.GL with all registered business units under a single set of certificates

▪ no regulatory breaches or significant environmental impacts

Over the next 12 months, the Group is focussing on a range of key initiatives which include:

▪ the continued integration and alignment of all Group businesses under a single, common HSEQ Management System

▪ continued automation and enhancement of system processes

▪ implementation of specific systems and continued leadership training programs aimed at all staff and Senior Management of the business

Page 7: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

What matters to usDecmil in the community

Decmil is committed to being a good corporate citizen by taking responsibility for all our social, ethical and environmental actions. Decmil is proud of the positive contributions it makes to the communities in which it operates. We have a number of corporate sponsorships that we support and we encourage our people to participate in organised charity events. These include:

▪ Starlight Children’s Foundation

▪ beyondblue

▪ Australia’s Biggest Morning Tea

▪ Daffodil Day

▪ Pink Ribbon Morning Tea

▪ World’s Greatest Shave

▪ CEO Sleepout

▪ Christmas collection for the Smith Family

Decmil also supports staff participation in the HBF Run for a Reason, the Bridge to Brisbane, the MS Walk and Fun Run and the Fidelity Life Corporate Run where employees are able to raise funds for their own nominated charities whilst getting active for the cause.

Page 8: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

Our Business PlanDrive growth from Resources, Infrastructure and Renewables sectors

▪ Growth in the business from FY10 to FY15 driven by the Iron Ore and LNG construction boom

▪ Business stabilisation and diversification in FY16 and FY17 – progressive movement into public infrastructure

▪ Revenue replacement strategy underway with expected revenue growth from FY18 to FY20 due to shift in construction and engineering cycle to public infrastructure

▪ The key sector growth drivers will be Resources (predominantly WA Iron Ore), Infrastructure (Transport, Defence, Corrections, Education) and Renewables (Solar and Wind)

100

200

300

400

500

600

700

$m

FY09

$255$329

$394

$556 $529

$618$667

$300 $304

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

Infrastructure

Resource construction boom

Page 9: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

Growth Sector: InfrastructureUnprecedented pipeline of transport infrastructure projects on the eastern seaboard

▪ OSARS PPP with Lend Lease ▪ M80 Ring Road Upgrade ▪ Main River Crossing – New Link

Road (Echuca/Moama)

▪ Princes Hwy West – Winchelsea to Colac

▪ Drysdale Bypass ▪ South Gippsland Hwy

Source: Lendlease

0

2

4

6

8

10

12

FY04 FY06 FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22 FY24 FY26

Major Road

Major Rail

Kings Road BridgeVictoria

Sheepwash CreekVictoria

Infrastructure Opportunities

> $100M

> $50M

$b

Page 10: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

CITIC Pacific Sino

Rio Silvergrass

FMG Tug PenBHP Port Hedland

Logistics Hub

BHP South Flank

Rio Koodaideri

FMG Western

Hub

Balla Balla

API

Resources Capabilities

Non process infrastructure

Civil

Maintenance

Structural and mechanical

Growth Sector: ResourcesWA Iron Ore replacement volume projects and sustaining capital works expected to provide $10b+ lift to WA resource construction activity from 2018

Page 11: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

Growth Sector: RenewablesDecmil is well positioned for the significant capital spend in connection with large-scale solar forecast to occur

Western Power PerenjoriWA, Renewables

Source: Bloomberg New Energy Finance

Biomass

Pre-committed

Large-scale PV

Wind

Renewables Capabilities

0

500

1,000

2014 2015 2016 2017 2018 2019

1,500

2,000

2,500

3,000

3,500

4,000

4,500

$m

▪ VIC: 25% by 2020 and 40% by 2025

▪ QLD: 50% by 2030 ▪ SA: 50% by 2025 ▪ NSW: 20% by 2020

▪ QLD: 400MW of projects ▪ VIC: 650MW of project

State-based energy targets

State-based energy reverse auctions

Page 12: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

New Markets

NZ Schools

NZ Corrections

BonalboAs market-leaders in complex, multi-disciplinary

project delivery, we are continually delivering

integrated construction and engineering solutions for clients across Australasia.

Infrastructure

Renewables

Resources

Western Power Perenjori

FMG Tug PenMarine

Aviation

Education

Corrections

Rail

Health

Renewable Storage

Solar

CITIC Pacific Sino

Gullen

QR Mayne

Page 13: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

Operational EfficiencyWe continue to become more efficient ▪ Simplified executive management structure

▪ Creation of uniform national construction and engineering business unit:

▪ Cut & Fill integrating into Decmil in H1FY18 to create stronger and larger business unit

▪ Divestment of surplus or non-core assets:

▪ Perth office building divested in FY17 for $27.5m in a tough market

▪ Continue to review performance of non-core assets and business units

▪ Sharp reduction in corporate administrative overhead level over FY16 and FY17 with full benefit to be realised by H2FY18:

▪ On track to achieve sub $25m Group cash overhead run rate by start of H2FY18 ($44m in FY15)

▪ Various new technologies being rolled out across the business:

▪ Greater use of technology and analytical tools as a business driver

Page 14: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...

SummaryImprovement in market conditions across a number of sectors ▪ Sustaining capital works and replacement volume

projects starting to activate in the WA Iron Ore sector

▪ High levels of activity in the Transport sector in Victoria where the Group is actively pursuing new road and bridge projects as both head contractor and in joint ventures

▪ Larger project opportunities in the Defence sector

▪ Further opportunity in new sectors such as Corrections

▪ Actively bidding a number of solar PV projects as an EPC and wind projects as a balance of plant contractor

▪ Currently over $300m of contracted and visible work in hand for FY18

▪ Either shortlisted or a preferred contractor on a number of larger design and construct contracts that will likely contribute to revenue from H2FY18

Page 15: FY17 Business Highlights - Decmil party certification through DNV.GL with all registered ... Starlight Children’s Foundation ... $300 $304 FY10 FY11 FY12 FY13 ...