Macmahon Holdings Limited · ASX:MAH
Macmahon — Investor Presentation (August 2019)
28 slides from Macmahon's investor presentation, Aug 30, 2019
Slide 1: Full Year Results 2019
Full Year Results 2019
Slide 2: Financial Highlights and FY20 Guidance
Financial Highlights and FY20 Guidance FY19 Revenue FY19 Underlying EBITDA1 FY19 Underlying EBIT1 $1,103.0m $181.4m $75.1m p 55% on FY18 p 52% on FY18 p 81% on FY18 FY19 Underlying NPAT1 FY19 Operating cash flow $56.7m Order Book2 $125.9m ~$4.7bn p 80% on FY18 p 24% on FY18 Net Tangible Assets Retur
Slide 3: FY19 Key Developments
FY19 Key Developments • Continued strong growth delivering results within guidance • Secured $210m+ of new work Financial • Robust financial position • Board has approved new capital allocation policy – outlined on slide 11 • Reinstatement of sustainable dividends after 7 years • Strong result due t
Slide 4: People and Safety
People and Safety Group Employee Numbers 1 Injury Frequency Rates 450 3.98 3913 4119 4072 2630 1809 0.36 FY17 1H18 FY18 1H19 FY19 FY17 1H18 FY18 1H19 FY19 TRIFR (Total Recordable Injury Frequency Rate) Macmahon Employees GBF Group LTIFR (Lost Time Injury Frequency Rate) • New leadership program was
Slide 5: Key Contracts
Key Contracts Project / Client Location Commodity / Type Comments Tropicana WA Gold • Alliance life-of-mine contract AngloGold Ashanti / Australia Open-pit • Commenced 2012 Independence Group • Long Island commenced, to continue to 2023 Telfer WA Copper-gold • Commenced February 2016 Newcrest Austra
Slide 6: FY19 Results
MACMAHON FY19 Results
Slide 7: Financial Performance
Financial Performance Revenue ($m) Underlying EBIT ($m) 1,200 1,103 80 75 70 1,000 p55% p81% 60 800 710 50 42 40 600 30 360 400 20 10 200 -2 -10 FY17 FY18 FY19 FY17 FY18 FY19 Underlying EBITDA ($m) Underlying EBIT Margin 8% 200 181 6.8% 7% p1.0% ppt 5.8% p52% 6% 150 5% 119 4% 100 3% 2% 50 32 1% -0.5
Slide 8: Profit and Loss
Profit and Loss $ Millions FY18 1H19 2H19 FY19 Change Revenue 710.3 542.1 560.9 1,103.0 p 55% EBITDA1 119.2 89.1 92.3 181.4 p 52% EBITDA margin 16.8% 16.4% 16.5% 16.4% EBIT 1 41.5 39.9 35.2 75.1 p 81% EBIT margin 5.8% 7.4% 6.3% 6.8% Net finance costs (2.4) (4.8) (5.9) (10.7) PBT1 39.1 35.1 29.3 64.5
Slide 9: Cash Flow Waterfall
Cash Flow Waterfall 52.8 55.5 25.8 25.8 7.6 7.3 135.9 51.8 181.4 181.4 125.9 125.9 12.7 12.7 22.922.9 1.5 1.5 84.0 109.6 113.2 109.6 113.2 Opening Cash Underlying Working Operating Interest and Class Action Capex New finance LTIP share Finance Lease Software and Closing Cash Opening Cash Underlying
Slide 10: Balance Sheet
Balance Sheet $ Millions FY18 1H19 FY19 Cash 109.6 77.4 113.2 Receivables 152.3 183.0 181.5 Inventories 42.0 45.8 45.8 Property, plant and equipment 380.1 408.2 399.6 Intangible assets and goodwill 5.8 9.6 10.2 Other assets 33.5 67.1 74.6 Total assets 723.3 791.2 824.9 Payables 175.0 175.0 168.6 Bor
Slide 11: Capital Allocation Policy & FY19 Dividend
Capital Allocation Policy & FY19 Dividend New policy adopted to balance growth and cash returns to shareholders Objectives 1. Maintain financial strength 2. Invest in growth 3. Return cash to shareholders 1. Maintain strong balance sheet 2. Ensure appropriate liquidity and gearing with regard to rev
Slide 12: Strategy and Outlook
MACMAHON - :. a athmen art mS 12
Slide 13: Strategy Remains Unchanged
Strategy Remains Unchanged Our strong order book with excellent revenue visibility underpins a focus on execution of work in hand and pursuit of new opportunities A premium provider of contract mining services across the mining value chain, delivering consistent returns and stable employment Safety
Slide 14: GBF Acquisition Bolsters Underground Services
GBF Acquisition Bolsters Underground Services Leading • GBF has solid track record with WA-based gold clients and strong safety culture underground • Currently employs 450 people contractor in WA • Acquisition completed in August Scale, depth and Broader set Diversification GBF A proven and capabili
Slide 15: Work in Hand
Work in Hand Work in Hand ($m)1 3 year Work in Hand by Commodity 1200 3% 1200 1103 1000 950 6% 800 750 Gold Copper / Gold 600 37% 54% Coking Coal Other 400 200 FY19 FY20 FY21 FY22 • Order book of ~$4.7 billion, including GBF Group • Existing order book underpins FY20 growth before any new contracts,
Slide 16: Tender Pipeline
Tender Pipeline Near Term Medium Term Long Term Exclusive / Preferred Tender Pre Tender Bubbles represent = $200m New Client Current Client contract value • 24 tender opportunities worth $7bn+, split between Australia and Indonesia, and gold, base metals, lithium and coal • $4.5bn+ exclusive or pref
Slide 17: FY20 Outlook
FY20 Outlook Revenue Guidance FY20 Guidance1 $1.2–$1.3bn • Revenue of $1.2 - $1.3bn (underpinned by $1.2bn in contracted work) $1.1bn • EBIT of $80 - 90m Positive outlook supported by: Strong order book of ~$4.7bn FY20 work in hand of ~$1.2bn Significant $7bn+ tender pipeline Robust balance
Slide 18: Thank You
Thank You Contact Chris Chong Investor Relations and Corporate Development cchong@macmahon.com.au Mick Finnegan CEO mfinnegan@macmahon.com.au Giles Everist CFO geverist@macmahon.om.au www.macmahon.com.au MACMAHON - Full Year Results to 30 June 2019 18
Slide 19: Appendix
MACMAHON MACMAHGy
Slide 20: Corporate Overview
Corporate Overview Capital Structure Share Price 1 year Share Price $0.175 Fully paid ordinary shares (m) 2,155 0.28 Market Capitalisation $377.1m 0.26 Cash as at 30 June 2019 $113.2m 0.24 Debt as at 30 June 2019 $165.8m Enterprise Value $324.5m 0.22 0.20 Directors and Senior Management 0.18 Eva Ski
Slide 21: FY19 Revenue Diversification
FY19 Revenue Diversification Revenue by Commodity Revenue by Customer 13% 11% AMNT 16% 3% Coal Qcoal 3% 34% Gold AngloGold / IGO 5% Copper / Gold Newcrest Copper 39% Dacian 12% 34% Other Agincourt Other 11% 19% Revenue by Country 1% Revenue by Activity 7% 7% Australia 38% Surface Indonesia Undergrou
Slide 22: Cash Flow
Cash Flow $ Millions FY18 FY19 EBITDA 119.2 181.4 Movement in receivables (93.8) (41.5) Movement in inventory (9.9) (3.8) Movement in payables and provisions 88.0 0.1 Other (1.6) (10.3) Interest and tax (paid) / received 3.9 (25.8) Class Action Settlement - (7.6) Net operating cash flow 105.8 92.5 C
Slide 23: Reconciliation of Non-IFRS Financial Information
Reconciliation of Non-IFRS Financial Information $ Millions FY18 Restated1 FY19 Profit for the year (as reported) 33.2 46.1 Add back: Loss from discontinued operations (net of tax) - 0.0 Less: Profit from discontinued operations (net of tax) (1.9) - Net profit after tax from continuing operations (a
Slide 24: Our Services
Our Services Civil / Mining Surface Mining Underground Rehabilitation Performance Services Mine planning and Mining Enhancement Design Overburden stripping analysis Mine development Coaching and training Bulk earthworks Bulk earthworks Mine management Mine production Revegetation Cultural change Roa
Slide 25: Our Equipment
Our Equipment Dump Trucks Drill Rigs 277 74 Excavators and Loaders 110 MACMAHON - Full Year Results to 30 June 2019 25
Slide 26: Map of Operations
Map of Operations MACMAHON - Full Year Results to 30 June 2019 26
Slide 27: Batu Hijau
Batu Hijau AMNT SUMBAWA • AMNT is an Indonesian mining company that acquired 82.2% of Batu Hijau mine from Newmont and Sumitomo in November 2016 • Supportive shareholder and two board representatives Batu Hijau Elang Nangka • Open pit, copper-gold porphyry located on Sumbawa, Indonesia Rinti • Secon
Slide 28: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer as to forward looking statements The forward looking statements in this Non-IFRS Financial Information presentation reflect views held only as at the date This presentation uses non-IFRS financial This presentation contains forward looking of this presentat
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