Macmahon Holdings Limited · ASX:MAH
Macmahon — Merger or Acquisition (August 2006)
11 slides from Macmahon's merger presentation, Aug 14, 2006
Slide 1: Investor Presentation Acquisition: Underground Mining – Specialised Services Group
Slide 2: Acquisition Overview
Acquisition Overview | “eed son | tv # Macmahon to acquire Australian Raise Drilling (ARD) and Combined Resource Engineering (CRE) for $27 million # Expands Macmahon underground mining business to provide a complete service - no other Australian contractor has this capacity and it lifts Macmahon to
Slide 3: Two complementary businesses providing specialised underground mining services
ARD and CRE 2, [2 Two complementary businesses, established in 1988, that provide specialised underground mining services. Australian Raise Drilling (ARD) A'R'D Provides vertical and horizontal drilling of large diameter shafts for mine ventilation, access and mine development. Leading raise drillin
Slide 4: Transaction Details
Transaction Details | Q | 3 / MACMAMON . j # Purchase of assets, contracts and transfer of employees # Funding from existing bank facilities and cash reserves ~* Total cost of $27 million includes $2 million of transaction costs # Settlement on Friday 1 September 2006 * pacnase cost covered by FY07
Slide 5: Strategy
Strategy, 4 vance aan [+ w Consistent with Macmahon strategy this acquisition expands the core capability within the Mining Business ~» Specialised work not generally undertaken by owner miners ~ ARD and CRE risk profile similar to Macmahon w ARD and CRE are market leaders with high margins and low
Slide 6: ARD Business
iness [One ARD Business (i0itih@ia— mal Raise drill holes for ventilation, ore haulage and mine access Raise drills capable of drilling holes up to 5.8 metres in diameter and 900 metres in depth Typical contracts are on a cost per metre basis
Slide 7: CRE Business
CRE Business “eed son [o- Leading specialist in providing complete underground infrastructure, design and installation Typical contracts: Design - hourly rate Installation - cost reimbursable / hourly rate Crusher and conveyor Shaft sinking Underground shaft equipping
Slide 8: ARD / CRE Locations
ARD / CRE Locations vance cae Current & Recent Projects flast 72 months} Key Customers ode bhpbilliton Me GORbGN Ofer SA fee CANNING o akerie NEWMONT IT xStrata WT fice: Oe VARS Pat ADELAIDE AUSTRALIAN HAISE DAHLING q NEWCREST if Monn mrren GOMBINED RESOURCE ENGINEERING FABRICATION WORKSHOP @ OFFICE
Slide 9: Financial Summary
Financial Summary | “eed son | 8 « FY07 Projections*: = Revenue $55 million = EBITA margin 12% = EBITA multiple 4 times # Purchase price allocated to: = Plant & equipment $18 million « Identifiable intangibles ** $ 1 million = Goodwill $ 8 million $27 million * Financial projections based on 12 mont
Slide 10: + Established, long term, specialised business
+ Established, long term, specialised business + ARD and CRE will continue to operate as independent brands within the Macmahon mining business * Combining Macmahon underground expertise with ARD and CRE will enable Mining Business to offer “complete mine construction and operation” capability ~# Lo
Slide 11: Slide 11
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