Keller Group Plc · LSE:KLR
Keller — Investor Day (October 2012)
20 slides from Keller's investor day presentation, Oct 16, 2012
Slide 1: Keller Group plc Capital Markets Day: Keller Australia
Keller Group plc Capital Markets Day 16 October 2012 Keller Australia
Slide 2: Contents
Contents • Overview of Keller Australia • Market conditions and outlook • Major opportunities and challenges • Recent projects • Summary 1
Slide 3: Overview - Keller Australia
Overview - Keller Australia • The market leader in Australia for piling and ground improvement – employs 700 people • Five businesses make up Keller Australia: – Frankipile - since 1998 – Vibropile - since 2002 – Keller Ground Engineering - since 2004 – Piling Contractors - since 2006 – Waterway Con
Slide 4: Overview - Keller Australia
Overview - Keller Australia • Established track record for the delivery of technically complex and major works e.g. the Gateway Bridge Duplication AU$114m • Benefit from significant repeat business and client loyalty • On target for all businesses to have Safety Quality and Environmental accreditati
Slide 5: Overview - Keller Australia
Overview - Keller Australia • Extensive local product range with technical support from the wider Group • Accurate market knowledge through shared information • Established “Winning & Working Together” charter for packaged and major collaborative opportunities • Leverage of the Keller brand facilita
Slide 6: Market Conditions and Outlook
Market Conditions and Outlook • Australia continues to experience low inflation in the range of 2% • Low unemployment below 5% • Continued strong Australian dollar (above US$ parity) • Labor Government – likely to change at general election November 2013 • Five interest rate reductions by the Reserv
Slide 7: Market Conditions and Outlook
Market Conditions and Outlook • The Australian market remains a “two-speed” economy – Mining and resource sectors – Infrastructure, commercial building and residential • Resource sector focuses around three commodities: 6
Slide 8: Resource Sector: Gas Dominates by Value
Resource Sector: Gas Dominates by Value 200 160 Under Construction $ billion 120 Committed Under Consideration 80 Possible 40 0 Oil & Gas Metal Ores Coal Total: $415bn Sources: Deloitte Access Economics, Excludes “other” Westpac Economics – July 2012 $3bn in projects 7
Slide 9: Market Conditions and Outlook
Market Conditions and Outlook • The Australian market remains a “two-speed” economy – Mining and resource sectors – Infrastructure, commercial building and residential • Resource sector focuses around three commodities: – LNG investment remains strong – Recent adverse press only relates to falling i
Slide 10: Major Opportunities and Challenges
Major Opportunities and Challenges Opportunities • Brisbane City Council Ferry Terminal rebuild following the January 2011 floods • Expansion of Waterway Construction and synergy with Piling Contractors • Major medium-term resource sector: - Further first generation LNG plants - from mid 2013 throug
Slide 11: Major Opportunities and Challenges: Challenges
Major Opportunities and Challenges Challenges • Conditions in infrastructure, building and residential construction remain challenging • Potential heightened industrial action in the lead up to the next Federal election • Controlled expansion of Waterway Constructions to provide national coverage •
Slide 12: Recent Projects – Newcastle Coal Infrastructure
Recent Projects – Newcastle Coal Infrastructure • Client: Newcastle Coal Infrastructure Group (NCIG) • EPCM Contractor: Aurecon-Hatch • First award to Keller: December 2008 • Initial scope (Phase I): AU$19.7m • Phase I completion: October 2009 • Phase II: AU$45m • Phase II completion: Mid 2012 (moni
Slide 13: Recent Projects - Newcastle Coal Infrastructure
Recent Projects - Newcastle Coal Infrastructure • Total project involvement to date: AU$65m • Phase III of NCIG: Mid 2013 • Government award for safety • Hatch awarded EPCM status on the adjacent Terminal 4 project • Terminal 4 will contain ground improvement, piling and diaphragm walls 12
Slide 14: Recent Projects – Australia Pacific LNG
Recent Projects – Australia Pacific LNG • Project: Australia Pacific LNG (APLNG MOF) • Construction of Marine Off-loading Facility (MOF) • Client: Origin, Conoco Philips, Sinopec • EPCM Contractor: Bechtel • Awarded to Waterway BMD JV: November 2011 • BMD are established local civil engineering cont
Slide 15: Recent Projects - Australia Pacific LNG
Recent Projects - Australia Pacific LNG • JV Award Value: AU$85m • Received prestigious Client Safety and Environmental Award (250,000 man-hours incident free) • Current scope value: AU$115m • Practical completion: Dec 2012 (3 months ahead of schedule) • Waterways on target for best year in 2012 • S
Slide 16: Recent Projects – Wheatstone On-shore Piling
Recent Projects – Wheatstone On-shore Piling • Project: Wheatstone LNG Plant • Client: Chevron • EPCM contractor: Bechtel • On-shore piling supply and installation awarded to Keller - January 2012 • Current value including test piles AU$180m • Collaborative undertaking between three Keller Australia
Slide 17: Recent Projects - Wheatstone On-shore Piling
Recent Projects - Wheatstone On-shore Piling • The extreme remoteness is a challenge with the site 1400km north of Perth • Challenging logistics of major steel tube supply from Korea • Difficult climatic conditions including cyclone risk • Production outputs offer an opportunity • Low-risk repetitiv
Slide 18: Recent Projects – Wheatstone On-shore Piling
Recent Projects – Wheatstone On-shore Piling • Use of Junttan PM25s throughout optimises efficiency • Innovation of side-lifters for product handling • Management and key labour force sourced entirely from within the Group • Test pile programme site – October 2012 (commended by Chevron) • Mobilizati
Slide 19: Summary
Summary • Federal and State funded market sectors will remain challenging for the foreseeable future • Major LNG investment remains unaffected by global reduction in commodity prices • Client commended mobilisation to Wheatstone to install test piles • Waterway Constructions successfully integrated
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