for personal use only - asx · 2012-10-29 · forge group ltd - october 2012 investor update...
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Forge Group Ltd - October 2012
Investor UpdatePresented by: David Simpson (CEO) and Donald Montgomery (CFO)
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Contents2012 HSE Performance 1
2012 Financial Highlights 2
ASX Market Data 2
Financial Performance 3
Order Book 3
Current Group Capabilities 4
Major Clients 4
Key Management 5
Board of Directors 5
Geographic Locations 6
Major Projects 7
The Vision 8
Corporate Values 8
The Road Ahead 9
The Future of the Forge Brand 10
New Business Structure 11
Phased Implementation 12
Summary 13
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Safety First - 2012 HSE Performance
Lost Time Injuries 11% from FY2011
Recordable Injuries 34% from FY2011
Implementation of ForgeSafe à Group wide safety management system to support continual improvement in safety culture
à Advocates safety leadership and focus across the organisation
à Engaged Synergy Safety to focus on behavioural psychology relating to safety
Roll-out of SafeSpineTM Program à 85% of workforce to date
à 36% reduction in strains and sprains to date
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ASX Market Data
2012 Financial Highlights
Revenue 84% to $780.6m
EBITDA 42% to $89.2m
NPBT 24% to $70.1m
NPAT 27% to $49.3m
Basic EPS 24% to 58.94¢
Diluted EPS 27% to 57.33¢
Dividend 22% to 14¢
Cash at Bank 76% to $137.8m
Top 20 Shareholders Shares %
1 Clough Operations Pty Ltd 30,892,933 35.85
2 J P Morgan Nominees Australia Limited 4,376,867 5.08
3 Ego Pty Ltd C/- V J Plummer 3,100,000 3.60
4 National Nominees Limited 2,961,733 3.44
5 Hsbc Custody Nominees (Australia) 1,833,378 2.13
6 JP Morgan Nominees Australia Limited 1,415,987 1.64
7 Galactica Pty Ltd 1,165,861 1.35
8 Mr Keith Ronald Luestner & Mrs Mitsuko Sunshine Luestner 1,039,295 1.21
9 Chisholm Nominees (WA) Pty Ltd 1,000,000 1.16
10 BNP Paribas Noms Pty Ltd 863,313 1.00
11 Temorex Pty Ltd 857,887 1.00
12 Chisholm Nominees (WA) Pty Ltd 780,000 0.91
13 Citicorp Nominees Pty Limited 689,787 0.80
14 Richcab Pty Ltd 559,649 0.65
15 Southam Investments 2003 Pty Ltd 504,325 0.59
16 BNP Paribas Noms Pty Ltd 499,562 0.58
17 Teesdale Investment & Management Pty Ltd 490,000 0.57
18 Richcab Pty Limited 478,251 0.56
19 Mr Paul Thomas Cook 398,165 0.46
20 Mr Robert Paul Martin & Mrs Susan Pamela Martin 366,501 0.43
CAPITALISATION
Shares on issue1 86,169,014
Share Price2 (as at 25/10/12) $4.25
Market Capitalisation $366,218
Note: (1) Based on ordinary shares on issue. (2) Closing price as at 25/10/12.
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Financial Performance
Order Book
METALS(6%)
OIL & GAS(5%)
OTHER(5%)
POWER (53%)
IRON ORE(31%)
Continuing strong financial performance highlighted by an 84% increase in revenue for the year to $780.6 million. A 27% increase in net profit after tax.
Order Book at 30 Sept 2012 $971m1000
900
800
700
600
500
400
300
200
100
0
AU
$ (M
illio
ns)
$424.7m
$875m
$780.6m
Actual Revenue
Market Consensus
FY2011 FY2012 FY2013 FY2013 FY2014
$792m
$510m
Work in Hand
Preferred Tenderer StatusSubject to award and timing
% of FY13 Market Consensus
90%
58%
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Major Clients
Multidiscipline Construction in Australia including:• Civil and Concrete Works
• Structural, Mechanical, Piping and Tanks
• Electrical, Instrumentation and Controls
• Building
• Maintenance Services
• Fabrication
Multidiscipline Construction in Africa including:• Civil & Concrete Works
• Structural, Mechanical, Piping and Tanks
• Electrical, Instrumentation and Controls
• Maintenance Services
• Fabrication
Engineering and Design including:• Process Design
• Engineering Investigations
• Feasibility Studies
• Project Management
• Commissioning
• Total Design and Construct EPC and EPCM Contracts
Turnkey Power Generation Solutions including:• Power Stations
• Water Treatment
• Operations and Maintenance
• Renewable Energy
• Sustainability Services
• Turbine Servicing
Current Group Capabilities
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Key Management
Board of Directors
David Simpson CEO & Managing Director
Mr Simpson has extensive experience specific to the engineering and construction sectors
both in Australia and internationally. In his most recent role he was responsible for leading UGL Limited’s Resources Division, servicing the mining and mineral processing, oil and gas, chemicals and petrochemicals, and industrial processing industries. Before this Mr Simpson worked for Leighton Contractors, Daimler Chrysler (Adtranz) and Asea Brown Boveri (ABB).
Donald Montgomery Chief Financial Officer
Mr Montgomery has over 20 years’ senior management experience
and joins Forge from ASX listed QR National, where he held the position of Chief Financial Officer (Freight Division), for the past 3 years. From 2001 – 2009 Don held executive finance positions within the Leighton Contractors Group of Companies, including Chief Financial Officer of HWE Mining Pty Ltd. Don will focus on providing strategic leadership to the Group on all financial matters relating to our growth.
Brett Smith Chief Operating Officer
Mr. Smith was formerly COO and Director Major Projects at Ausenco Group Ltd. He holds an MBA as
well a qualifications in engineering, marketing and science research. Brett has successfully managed large and diverse construct only and EPC turnkey projects, both in Australia and internationally, including Asia, North and South America, Europe and Russia. He also has significant experience in managing organisational change, project execution and risk management.
David Craig Non-executive ChairmanAn experienced Chairman, Director and businessman with an accomplished background in business and law. Current and past Board appointments have
involved the law, mining, construction, mining services, financial services and the oil and gas industry, as well as with professional bodies and not-for-profit community organisations. As a partner of a major Perth law firm he specialised in resources and commercial legal advice, which included work on resources joint ventures, the acquisition and disposal of interests in companies and projects, and capital raisings by companies. This was followed by ten years in the financial services industry as a stockbroker and an executive director in a national stockbroking and investment banking company. Mr Craig then spent five years working with Woodside Petroleum Ltd in an executive position in the field of public and government affairs.
Marcello Cardaci Non-executive DirectorMr Cardaci is a partner in the Australian legal practice of Gilbert+Tobin. He is experienced in a
wide range of corporate and commercial matters with a particular emphasis on public and private equity raisings and mergers and acquisitions.
Greg McRostie Executive DirectorMr McRostie has had over twenty years’ experience in the design and construction of mineral processing facilities and associated infrastructure across a
broad range of commodities. Previously held positions include design engineering roles with Lycopodium, Minproc and GHD and senior project management for Roche Mining (JR) Pty Ltd (previously JR Engineering Services Pty Ltd). Mr McRostie has been the Managing Director of Abesque Engineering Ltd since 2005, during which time the organisation has been transformed from a constructor into a multi-disciplined design and construct organisation capable of delivering large scale EPC/EPCM resource projects.
Neil Siford Non-executive DirectorMr Siford is a Chartered Accountant with over 20 years of business and financial management experience gained primarily with Pricewaterhouse
Coopers and Caradon Plc, a UK publicly listed business with international reach, where Mr Siford was employed as Group Financial Controller and then Regional Finance Director. This was followed by four years as Finance Manager at Clough Projects which lead to his appointment as Chief Financial Officer of Clough Ltd in 2009.
Kevin Gallagher Non-executive DirectorMr Gallagher joined Clough Ltd as CEO and Managing Director on 3 November 2011. Kevin is a senior executive with more than 20 years experience
in managing oil and gas operations in Australia, the USA and North and West Africa. A qualified mechanical engineer, Kevin commenced his career as a drilling engineer with Mobil North Sea, before joining Woodside Petroleum Ltd in 1998. During his 13 year tenure with Woodside, Kevin led the drilling organisation through rapid growth, delivering several Australian and international development projects and exploration campaigns and setting drilling performance records whilst improving safety. He also led the Australian Oil Business Unit.
Prior to joining Clough, Kevin was responsible for production on Australia’s largest resource project, the North West Shelf, where he held the positions of Executive Vice President, North West Shelf Business Unit and CEO, North West Shelf Venture at Woodside.
During his time at Clough, Kevin has conducted a detailed strategic review of the business, providing strategic clarity and streamlining operations to improve project delivery performance and profitability. He has restructured the business and has established the leadership team, systems and people capabilities to deliver on the company’s extensive project portfolio and drive strong, profitable growth.
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SOUTH AFRICA
IWALA
M
GHANACOTE D’IVOIRE
GUINEA
LIBERIA
BURKINAFASO
MALI
KENYA
TANZANIA
MOZ
AMBI
QUE
LEONESIERRA
APLNGCurtis Island Tanks
(CB&I)
Cimeco Nº of Divisions
Webb
CTEC Abesque
DIAMANTINADiamantina Power Station
(DPS)
Karratha
Gladstone
Mt Isa
PERTHJOHANNESBURGADELAIDE
DARWIN
CAPITAL CITY
BRISBANE
SYDNEY
WELLINGTONMELBOURNE
Newman
Pt Hedland
3
1
KANMANTOOKanmantoo Copper
(Hillgrove)
1
WEBB CONSTRUCTIONNEW HEAD OFFICE
3
1
1
3
RAVENSTHORPERavensthorpe Nickel
(FQM)
MERREDINMerredin Power Station (Merredin Energy)
BAY OF PLENTYMcKee Power Station (Bay of Plenty Energy)
SHARK BAYShark Bay Salt Washplant (Shark Bay Salt)
MARGARET RIVERCivic Administration Centre (Shire)Shopping Centre (Woolworths)
2
MT WELDMt Weld Rare Earths Project
(Lynas Corp)
PORT HEDLANDEsplanade Hotel Extension
(Bloo Moons)
1
Forge Involvement
ACTIVE AREA
PLANNED EXPANSION
2
SOLOMONCrushing Hubs & OPF (FMG)
3
DEGRUSSADeGrussa Copper Project
(Sandfire Resources)
3
ONSLOWOnslow Salt Washplant (Onslow Salt)
2
OBUASISouth Treatment Plant Makeover
(AngloGold Ashanti)
PLUTO LNGOnshore Building Package #3 (Woodside)
1
INNER HARBOUR EXPANSIONCPLJV Finucane Is and Nelson PtNon Process Inftastructure (BHP Billiton)
1
1
WEST ANGELESWest Angeles Power Station
(Rio Tinto)4HOPE DOWNS 4
CPLJV Non Process Infrastructure & Fly Camp (Rio Tinto)
ROY HILL PROJECTEarly Contractor Involvement
(Hancock Prospecting)CAPE PRESTONSino Iron Project (MCC Mining)
3 CF
Clough Forge P/LCF
MARAMPAMarampa 1A & 1B Project
(London Mining)
1
INATA GOLD MINEFabrication and Maintenance
(Avocet Mining)
1SYAMA GOLD MINEFabrication and Maintenance (Resolute Mining)
1
1
FORGE
FORGE
FORGE
BRANCH OFFICE
FORGE
FORGE
FORGE
TAKORADI
BAMAKO
FREETOWN
OUAGADOUGOU
FORGE
SOUTH AFRICA
IWALA
M
GHANACOTE D’IVOIRE
GUINEA
LIBERIA
BURKINAFASO
MALI
KENYA
TANZANIA
MOZ
AMBI
QUE
LEONESIERRA
APLNGCurtis Island Tanks
(CB&I)
Cimeco Nº of Divisions
Webb
CTEC Abesque
DIAMANTINADiamantina Power Station
(DPS)
Karratha
Gladstone
Mt Isa
PERTHJOHANNESBURGADELAIDE
DARWIN
CAPITAL CITY
BRISBANE
SYDNEY
WELLINGTONMELBOURNE
Newman
Pt Hedland
3
1
KANMANTOOKanmantoo Copper
(Hillgrove)
1
WEBB CONSTRUCTIONNEW HEAD OFFICE
3
1
1
3
RAVENSTHORPERavensthorpe Nickel
(FQM)
MERREDINMerredin Power Station (Merredin Energy)
BAY OF PLENTYMcKee Power Station (Bay of Plenty Energy)
SHARK BAYShark Bay Salt Washplant (Shark Bay Salt)
MARGARET RIVERCivic Administration Centre (Shire)Shopping Centre (Woolworths)
2
MT WELDMt Weld Rare Earths Project
(Lynas Corp)
PORT HEDLANDEsplanade Hotel Extension
(Bloo Moons)
1
Forge Involvement
ACTIVE AREA
PLANNED EXPANSION
2
SOLOMONCrushing Hubs & OPF (FMG)
3
DEGRUSSADeGrussa Copper Project
(Sandfire Resources)
3
ONSLOWOnslow Salt Washplant (Onslow Salt)
2
OBUASISouth Treatment Plant Makeover
(AngloGold Ashanti)
PLUTO LNGOnshore Building Package #3 (Woodside)
1
INNER HARBOUR EXPANSIONCPLJV Finucane Is and Nelson PtNon Process Inftastructure (BHP Billiton)
1
1
WEST ANGELESWest Angeles Power Station
(Rio Tinto)4HOPE DOWNS 4
CPLJV Non Process Infrastructure & Fly Camp (Rio Tinto)
ROY HILL PROJECTEarly Contractor Involvement
(Hancock Prospecting)CAPE PRESTONSino Iron Project (MCC Mining)
3 CF
Clough Forge P/LCF
MARAMPAMarampa 1A & 1B Project
(London Mining)
1
INATA GOLD MINEFabrication and Maintenance
(Avocet Mining)
1SYAMA GOLD MINEFabrication and Maintenance (Resolute Mining)
1
1
FORGE
FORGE
FORGE
BRANCH OFFICE
FORGE
FORGE
FORGE
TAKORADI
BAMAKO
FREETOWN
OUAGADOUGOU
FORGE
An encouraging feature of 2012 was the Group’s ability to leverage its multi-disciplinary approach and engage multiple operating divisions.
Geographic Locations
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SOUTH AFRICA
IWALA
M
GHANACOTE D’IVOIRE
GUINEA
LIBERIA
BURKINAFASO
MALI
KENYA
TANZANIA
MOZ
AMBI
QUE
LEONESIERRA
APLNGCurtis Island Tanks
(CB&I)
Cimeco Nº of Divisions
Webb
CTEC Abesque
DIAMANTINADiamantina Power Station
(DPS)
Karratha
Gladstone
Mt Isa
PERTHJOHANNESBURGADELAIDE
DARWIN
CAPITAL CITY
BRISBANE
SYDNEY
WELLINGTONMELBOURNE
Newman
Pt Hedland
3
1
KANMANTOOKanmantoo Copper
(Hillgrove)
1
WEBB CONSTRUCTIONNEW HEAD OFFICE
3
1
1
3
RAVENSTHORPERavensthorpe Nickel
(FQM)
MERREDINMerredin Power Station (Merredin Energy)
BAY OF PLENTYMcKee Power Station (Bay of Plenty Energy)
SHARK BAYShark Bay Salt Washplant (Shark Bay Salt)
MARGARET RIVERCivic Administration Centre (Shire)Shopping Centre (Woolworths)
2
MT WELDMt Weld Rare Earths Project
(Lynas Corp)
PORT HEDLANDEsplanade Hotel Extension
(Bloo Moons)
1
Forge Involvement
ACTIVE AREA
PLANNED EXPANSION
2
SOLOMONCrushing Hubs & OPF (FMG)
3
DEGRUSSADeGrussa Copper Project
(Sandfire Resources)
3
ONSLOWOnslow Salt Washplant (Onslow Salt)
2
OBUASISouth Treatment Plant Makeover
(AngloGold Ashanti)
PLUTO LNGOnshore Building Package #3 (Woodside)
1
INNER HARBOUR EXPANSIONCPLJV Finucane Is and Nelson PtNon Process Inftastructure (BHP Billiton)
1
1
WEST ANGELESWest Angeles Power Station
(Rio Tinto)4HOPE DOWNS 4
CPLJV Non Process Infrastructure & Fly Camp (Rio Tinto)
ROY HILL PROJECTEarly Contractor Involvement
(Hancock Prospecting)CAPE PRESTONSino Iron Project (MCC Mining)
3 CF
Clough Forge P/LCF
MARAMPAMarampa 1A & 1B Project
(London Mining)
1
INATA GOLD MINEFabrication and Maintenance
(Avocet Mining)
1SYAMA GOLD MINEFabrication and Maintenance (Resolute Mining)
1
1
FORGE
FORGE
FORGE
BRANCH OFFICE
FORGE
FORGE
FORGE
TAKORADI
BAMAKO
FREETOWN
OUAGADOUGOU
FORGE
SOUTH AFRICA
IWALA
M
GHANACOTE D’IVOIRE
GUINEA
LIBERIA
BURKINAFASO
MALI
KENYA
TANZANIA
MOZ
AMBI
QUE
LEONESIERRA
APLNGCurtis Island Tanks
(CB&I)
Cimeco Nº of Divisions
Webb
CTEC Abesque
DIAMANTINADiamantina Power Station
(DPS)
Karratha
Gladstone
Mt Isa
PERTHJOHANNESBURGADELAIDE
DARWIN
CAPITAL CITY
BRISBANE
SYDNEY
WELLINGTONMELBOURNE
Newman
Pt Hedland
3
1
KANMANTOOKanmantoo Copper
(Hillgrove)
1
WEBB CONSTRUCTIONNEW HEAD OFFICE
3
1
1
3
RAVENSTHORPERavensthorpe Nickel
(FQM)
MERREDINMerredin Power Station (Merredin Energy)
BAY OF PLENTYMcKee Power Station (Bay of Plenty Energy)
SHARK BAYShark Bay Salt Washplant (Shark Bay Salt)
MARGARET RIVERCivic Administration Centre (Shire)Shopping Centre (Woolworths)
2
MT WELDMt Weld Rare Earths Project
(Lynas Corp)
PORT HEDLANDEsplanade Hotel Extension
(Bloo Moons)
1
Forge Involvement
ACTIVE AREA
PLANNED EXPANSION
2
SOLOMONCrushing Hubs & OPF (FMG)
3
DEGRUSSADeGrussa Copper Project
(Sandfire Resources)
3
ONSLOWOnslow Salt Washplant (Onslow Salt)
2
OBUASISouth Treatment Plant Makeover
(AngloGold Ashanti)
PLUTO LNGOnshore Building Package #3 (Woodside)
1
INNER HARBOUR EXPANSIONCPLJV Finucane Is and Nelson PtNon Process Inftastructure (BHP Billiton)
1
1
WEST ANGELESWest Angeles Power Station
(Rio Tinto)4HOPE DOWNS 4
CPLJV Non Process Infrastructure & Fly Camp (Rio Tinto)
ROY HILL PROJECTEarly Contractor Involvement
(Hancock Prospecting)CAPE PRESTONSino Iron Project (MCC Mining)
3 CF
Clough Forge P/LCF
MARAMPAMarampa 1A & 1B Project
(London Mining)
1
INATA GOLD MINEFabrication and Maintenance
(Avocet Mining)
1SYAMA GOLD MINEFabrication and Maintenance (Resolute Mining)
1
1
FORGE
FORGE
FORGE
BRANCH OFFICE
FORGE
FORGE
FORGE
TAKORADI
BAMAKO
FREETOWN
OUAGADOUGOU
FORGE
SOUTH AFRICA
IWALA
M
GHANACOTE D’IVOIRE
GUINEA
LIBERIA
BURKINAFASO
MALI
KENYA
TANZANIA
MOZ
AMBI
QUE
LEONESIERRA
APLNGCurtis Island Tanks
(CB&I)
Cimeco Nº of Divisions
Webb
CTEC Abesque
DIAMANTINADiamantina Power Station
(DPS)
Karratha
Gladstone
Mt Isa
PERTHJOHANNESBURGADELAIDE
DARWIN
CAPITAL CITY
BRISBANE
SYDNEY
WELLINGTONMELBOURNE
Newman
Pt Hedland
3
1
KANMANTOOKanmantoo Copper
(Hillgrove)
1
WEBB CONSTRUCTIONNEW HEAD OFFICE
3
1
1
3
RAVENSTHORPERavensthorpe Nickel
(FQM)
MERREDINMerredin Power Station (Merredin Energy)
BAY OF PLENTYMcKee Power Station (Bay of Plenty Energy)
SHARK BAYShark Bay Salt Washplant (Shark Bay Salt)
MARGARET RIVERCivic Administration Centre (Shire)Shopping Centre (Woolworths)
2
MT WELDMt Weld Rare Earths Project
(Lynas Corp)
PORT HEDLANDEsplanade Hotel Extension
(Bloo Moons)
1
Forge Involvement
ACTIVE AREA
PLANNED EXPANSION
2
SOLOMONCrushing Hubs & OPF (FMG)
3
DEGRUSSADeGrussa Copper Project
(Sandfire Resources)
3
ONSLOWOnslow Salt Washplant (Onslow Salt)
2
OBUASISouth Treatment Plant Makeover
(AngloGold Ashanti)
PLUTO LNGOnshore Building Package #3 (Woodside)
1
INNER HARBOUR EXPANSIONCPLJV Finucane Is and Nelson PtNon Process Inftastructure (BHP Billiton)
1
1
WEST ANGELESWest Angeles Power Station
(Rio Tinto)4HOPE DOWNS 4
CPLJV Non Process Infrastructure & Fly Camp (Rio Tinto)
ROY HILL PROJECTEarly Contractor Involvement
(Hancock Prospecting)CAPE PRESTONSino Iron Project (MCC Mining)
3 CF
Clough Forge P/LCF
MARAMPAMarampa 1A & 1B Project
(London Mining)
1
INATA GOLD MINEFabrication and Maintenance
(Avocet Mining)
1SYAMA GOLD MINEFabrication and Maintenance (Resolute Mining)
1
1
FORGE
FORGE
FORGE
BRANCH OFFICE
FORGE
FORGE
FORGE
TAKORADI
BAMAKO
FREETOWN
OUAGADOUGOU
FORGE
SOUTH AFRICA
IWALA
M
GHANACOTE D’IVOIRE
GUINEA
LIBERIA
BURKINAFASO
MALI
KENYA
TANZANIA
MOZ
AMBI
QUE
LEONESIERRA
APLNGCurtis Island Tanks
(CB&I)
Cimeco Nº of Divisions
Webb
CTEC Abesque
DIAMANTINADiamantina Power Station
(DPS)
Karratha
Gladstone
Mt Isa
PERTHJOHANNESBURGADELAIDE
DARWIN
CAPITAL CITY
BRISBANE
SYDNEY
WELLINGTONMELBOURNE
Newman
Pt Hedland
3
1
KANMANTOOKanmantoo Copper
(Hillgrove)
1
WEBB CONSTRUCTIONNEW HEAD OFFICE
3
1
1
3
RAVENSTHORPERavensthorpe Nickel
(FQM)
MERREDINMerredin Power Station (Merredin Energy)
BAY OF PLENTYMcKee Power Station (Bay of Plenty Energy)
SHARK BAYShark Bay Salt Washplant (Shark Bay Salt)
MARGARET RIVERCivic Administration Centre (Shire)Shopping Centre (Woolworths)
2
MT WELDMt Weld Rare Earths Project
(Lynas Corp)
PORT HEDLANDEsplanade Hotel Extension
(Bloo Moons)
1
Forge Involvement
ACTIVE AREA
PLANNED EXPANSION
2
SOLOMONCrushing Hubs & OPF (FMG)
3
DEGRUSSADeGrussa Copper Project
(Sandfire Resources)
3
ONSLOWOnslow Salt Washplant (Onslow Salt)
2
OBUASISouth Treatment Plant Makeover
(AngloGold Ashanti)
PLUTO LNGOnshore Building Package #3 (Woodside)
1
INNER HARBOUR EXPANSIONCPLJV Finucane Is and Nelson PtNon Process Inftastructure (BHP Billiton)
1
1
WEST ANGELESWest Angeles Power Station
(Rio Tinto)4HOPE DOWNS 4
CPLJV Non Process Infrastructure & Fly Camp (Rio Tinto)
ROY HILL PROJECTEarly Contractor Involvement
(Hancock Prospecting)CAPE PRESTONSino Iron Project (MCC Mining)
3 CF
Clough Forge P/LCF
MARAMPAMarampa 1A & 1B Project
(London Mining)
1
INATA GOLD MINEFabrication and Maintenance
(Avocet Mining)
1SYAMA GOLD MINEFabrication and Maintenance (Resolute Mining)
1
1
FORGE
FORGE
FORGE
BRANCH OFFICE
FORGE
FORGE
FORGE
TAKORADI
BAMAKO
FREETOWN
OUAGADOUGOU
FORGE
SOUTH AFRICA
IWALA
M
GHANACOTE D’IVOIRE
GUINEA
LIBERIA
BURKINAFASO
MALI
KENYA
TANZANIA
MOZ
AMBI
QUE
LEONESIERRA
APLNGCurtis Island Tanks
(CB&I)
Cimeco Nº of Divisions
Webb
CTEC Abesque
DIAMANTINADiamantina Power Station
(DPS)
Karratha
Gladstone
Mt Isa
PERTHJOHANNESBURGADELAIDE
DARWIN
CAPITAL CITY
BRISBANE
SYDNEY
WELLINGTONMELBOURNE
Newman
Pt Hedland
3
1
KANMANTOOKanmantoo Copper
(Hillgrove)
1
WEBB CONSTRUCTIONNEW HEAD OFFICE
3
1
1
3
RAVENSTHORPERavensthorpe Nickel
(FQM)
MERREDINMerredin Power Station (Merredin Energy)
BAY OF PLENTYMcKee Power Station (Bay of Plenty Energy)
SHARK BAYShark Bay Salt Washplant (Shark Bay Salt)
MARGARET RIVERCivic Administration Centre (Shire)Shopping Centre (Woolworths)
2
MT WELDMt Weld Rare Earths Project
(Lynas Corp)
PORT HEDLANDEsplanade Hotel Extension
(Bloo Moons)
1
Forge Involvement
ACTIVE AREA
PLANNED EXPANSION
2
SOLOMONCrushing Hubs & OPF (FMG)
3
DEGRUSSADeGrussa Copper Project
(Sandfire Resources)
3
ONSLOWOnslow Salt Washplant (Onslow Salt)
2
OBUASISouth Treatment Plant Makeover
(AngloGold Ashanti)
PLUTO LNGOnshore Building Package #3 (Woodside)
1
INNER HARBOUR EXPANSIONCPLJV Finucane Is and Nelson PtNon Process Inftastructure (BHP Billiton)
1
1
WEST ANGELESWest Angeles Power Station
(Rio Tinto)4HOPE DOWNS 4
CPLJV Non Process Infrastructure & Fly Camp (Rio Tinto)
ROY HILL PROJECTEarly Contractor Involvement
(Hancock Prospecting)CAPE PRESTONSino Iron Project (MCC Mining)
3 CF
Clough Forge P/LCF
MARAMPAMarampa 1A & 1B Project
(London Mining)
1
INATA GOLD MINEFabrication and Maintenance
(Avocet Mining)
1SYAMA GOLD MINEFabrication and Maintenance (Resolute Mining)
1
1
FORGE
FORGE
FORGE
BRANCH OFFICE
FORGE
FORGE
FORGE
TAKORADI
BAMAKO
FREETOWN
OUAGADOUGOU
FORGE
Major ProjectsProject Name Client Contract Value
à Diamantina Power Station Diamantina Power $426.1m
à Cape Lambert Power Station Rio Tinto $246.2m
à Solomon Crushing Hubs FMG $216.6m
à West Angelas Power Station Rio Tinto $147.7m
à Solomon Ore Processing Facilities FMG $108.2m
à APLNG Curtis Island Tanks CB&I $84.8m
à Hope Downs 4 NPI Hammersley Iron $84.5m
à Brockman Fuel Hubs Rio Tinto $73.9m
Geographic Locations
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The Vision
Corporate Values
The way we work…• Safety• People Focused• Accountability• Integrity
…Drives the outcomes we value• Innovation• Client Satisfaction• Shareholder Value
We have developed a set of Corporate Values that will underpin everything we do. These Values outline the behaviours we encourage and the outcomes we strive for.
Forge has defined a strategy to deliver on its vision.
THE VISION:
Deliver shareholder value as a leading, multidisciplinary
and integrated engineering, construction and maintenance
service provider.
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The Road Ahead
Delivering shareholder value as a leading, multidisciplinary and integrated engineering, construction �and maintenance service provider
OUR VALUES: Safety • Integrity • Innovation • Accountability • Shareholder Value • Client Satisfaction • People Focus
• Continue to grow EPC and mining services in targeted geographies
• Grow market share in the process infrastructure sector.• Develop our asset management service
in targeted geographies.• Grow market share in oil and gas through
our D&C capabilities.• Continue to deliver outstanding results in our current
core business.
Engineer
SERVICES
Procure
Construct
Maintain
SECTORS
Minerals & Resources
Power
Infrastructure
GEOGRAPHIES
Australia
Africa
South East Asia
OUR VISION: ONE FORGE OUR STRATEGY: FY13–FY18
OUR VALUES: Safety • Integrity • Innovation • Accountability • Shareholder Value • Client Satisfaction • People Focus
• Continue to grow EPC and mining services in targeted geographies.
• Grow market share in the process infrastructure sector.• Develop our asset management service
in targeted geographies.• Grow market share in oil and gas through
our D&C capabilities.• Continue to deliver outstanding results in our current
core business.
Engineer
SERVICES
Procure
Construct
Maintain
SECTORS
Minerals & Resources
Power
Infrastructure
GEOGRAPHIES
Australia
Africa
South East Asia
OUR VISION: ONE FORGE OUR STRATEGY: FY13–FY18
Forge has defined five growth initiatives and four enabling initiatives to deliver the vision:
GROWTH INITIATIVES1. Continue to grow EPC power and mining services in
targeted geographies
2. Grow market share in the process infrastructure sector
3. Develop asset management services in targeted geographies
4. Grow market share in Oil & Gas through existing D&C capabilities
5. Continue to deliver outstanding results in current core business
ENABLING INITIATIVES1. Establish world class safety systems and culture
2. Embed fit for purpose controls and processes
3. Develop industry leading Employee Value Proposition
4. Fully integrate the business
The executive team will support the implementation of the strategy through ongoing ratification of initiatives and a robust governance structure.
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The Future of the Forge Brand
FORGE NOW: a group of brands
HONOUR THE HISTORY OF THE SUBSIDIARY BRANDS
FORGE GROUPMINERALS & RESOURCES
FORGE GROUPCONTRUCTION
FORGE GROUPPOWER
FORGE GROUPASSET
MANAGEMENT
ONE FORGE: an integrated group under a single brand
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New Business Structure
value through integration
FORGE GROUP POWER
Turn-key Power Generation Solutions
FORGE GROUP MINERALS &
RESOURCES Studies and
Turn-key Minerals and Resources
Project Solutions
FORGE GROUP CONSTRUCTION
D&C Construction to All Sectors
including Oil & Gas
FORGE GROUP ASSET
MANAGEMENT Asset Management,
Operations, Maintenance & Minor Works to
All Sectors
FORGE GROUP OPERATIONAL SERVICESHSE / Quality /Document Control / Marketing / Commercial / Project Control / HR / IR / East Coast Regional Office
FORGE GROUP ENGINEERING & DRAFTING
FORGE GROUP CORPORATEStrategy / Policy / Risk Management / Corporate Governance / Investor Relations / Financial Controls
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Phased ImplementationThe identified strategic initiatives will be delivered in a phased approach that seeks to protect and strengthen the core business, capture adjacent growth opportunities and build future growth options.
HORIZON 1: PROTECT THE BASE
Secure and strengthen our core business by developing
fit for purpose processes and controls.
STRATEGIES• Develop and embed the Forge enabling
strategic initiatives across safety, people, controls and structure.
• Deliver outstanding results in core business.
HORIZON 2: GROW FROM THE CORE
Build on our core capabilities and grow our service offerings in adjacent geographies and
sectors.
STRATEGIES• Continue to grow EPC power and mining services
in targeted geographies.• Develop our asset management service in
targeted geographies.
HORIZON 3: CAPTURE NEW MARKETS
Develop new capabilities to service new customers.
STRATEGIES• Grow market share in process infrastructure sector• Grow market share in oil and gas through our
Design Construct capabilities.
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Summary• Significant improvements in safety performance during FY2012
and introduction of ‘ForgeSafe’ management program.
• Continued operational success during FY2012.
• Order book of $971 million today with new business generated through a host of significant contract wins during FY2012.
• Strong pipeline of work in growth markets, particularly power and mining.
• Strategy to target and win larger contracts with wider scopes of work to leverage our multidisciplinary capabilities.
• Vision to become a leading, multidisciplinary and integrated engineering, construction and maintenance service provider.
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Disclaimer: This presentation has been prepared by the management of Forge Group Ltd (the Company) for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. Where an opinion is expressed in this document it is based on assumptions and limitations mentioned herein and are an expression of present opinions only. No warranties or representations can be made as to the accuracy, validity, completeness or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for loses, claims, damages, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where the Company expresses or implies an expectation or belief as to the success of future developments, such expectations or belief is expressed in good faith and believed to have a reasonable basis. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by forecasts made in this presentation. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in or from any forecast or to update such forecast
Directors: David Craig (Chairman)
David Simpson (MD and CEO)
Marcello Cardaci
Kevin Gallagher
Gregory McRostie
Neil Siford
Company Secretary: Andrew Bell
Principal Registered Office : FORGE HOUSE
45 Stirling Highway
NEDLANDS WA 6009
Share and
Debenture Register: Computershare
Level 2, 45 St Georges Terrace
PERTH WA 6000
Auditors: KPMG
235 St Georges Terrace
Perth WA 6000
Bankers: National Australia Bank Limited
Level 14
100 St Georges Tce
PERTH WA 6000
Securities Exchange listing:
Forge Group Limited shares are listed on the Australian Securities
Exchange and form part of the ASX300. The Group’s listing code is FGE.
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