Macmahon Holdings Limited · ASX:MAH
Macmahon — Corporate Update (May 2013)
14 slides from Macmahon's corporate update, May 14, 2013
Slide 1: Macmahon Holdings Limited Company Update
For personal use only Macmahon Holdings Limited Company Update 14 May 2013
Slide 2: Corporate Update
Corporate Update For personal use only Mining services sector - changing and challenging environment Sale of construction has removed significant uncertainty and risk. Transition to Leighton substantially complete and in line with financial expectations Mining business on track to deliver earn
Slide 3: Mining Overview
Mining Overview For personal use only Mining strategy being delivered Reliable historical performance and growth Recent contract wins and extensions – against industry trend – evidence of the strength of the Macmahon brand Quality order book – future revenue growth secured and underpinned by
Slide 4: Project Update: Christmas Creek and Tropicana
Project Update For personal use only Christmas Creek 2 5 year, $1.8 billion mine expansion contract awarded January 2013 800 people mobilised, 160 major items of plant commissioned Hub optimisation being considered by Fortescue Tropicana Second fleet mobilised and operating from start of
Slide 5: Project Update: Tavan Tolgoi
Project Update For personal use only Tavan Tolgoi Produced in excess of 2.6 Mt of coal, 9.6 million BCM of overburden. Coal production and transport now resumed. 44 employees (expatriate and national) and ~$US 40 million invested in plant & equipment Business environment improving under new
Slide 6: Mining Revenue Performance
Mining Revenue Performance For personal use only The Mining Business has been a strong and consistent performer historically. Future performance underpinned by a significant order book of secured work 10.5% 260 8.2% 8.5% 7.5% (2) GFC Impacts 306 (1) 6.3% 6.5% ~1,200 4.5% 880 834 645 674 2.5% 466 1.8
Slide 7: Opportunities and Tender Pipeline
Opportunities and Tender Pipeline For personal use only Healthy tendering pipeline in excess of $2.5 billion Projects Under Tender (>$2.5 billion) East cost coal opportunities progressing Large number of domestic and international Underground opportunities but with increased competition Ghan
Slide 8: Investment Case
Investment Case For personal use only 1 2 Leveraged to increasing 3 Market Share Low cost, blue-chip projects production volumes One of Australia’s leading mining Production focussed long-life mines Global miner customer base contractors with order book of $3.5 - Christmas Creek 2 - BHP Billio
Slide 9: Favourable Valuation Metrics
Favourable Valuation Metrics For personal use only FY14 Price Earning Ratio 14.0x 11.7x 11.7x 11.2x 12.0x 10.2x 10.0x 8.8x 7.9x Average: 8.1x 8.0x 6.9x 6.8x 6.6x 6.1x 6.0x 5.0x 4.5x 3.4x 4.0x 2.0x - Price / Net Tangible Assets 6.8x 4.3x 3.0x 2.5x 2.5x 2.4x Average: 2.3x 2.1x 2.0x 1.5x 1.1x 1.0x 0.7x
Slide 10: Summary
Summary For personal use only Construction sale effected, significantly reducing risk of the business Initial review of overheads complete resulting in substantial cost savings Strong order book of $3.5 billion with long term contracts and blue-chip client base Healthy pipeline of work inclu
Slide 11: Macmahon Holdings Limited
For personal use only Macmahon Holdings Limited Company Update 14 May 2013
Slide 12: Long-term Contracts with Blue-Chip Clients
Long-term Contracts with Blue-Chip Clients For personal use only Macmahon has a track record of successful mining project delivery over 20+ years May 2013 Ewekoro Quarry (Lafarge, Nigeria) Jimblebar (BHP, WA) Leinster Nickel (BHP, WA) Lhoknga (Lafarge, Indonesia) Tavan Tolgoi (Erdenes, Mongolia) Cam
Slide 13: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the mining and construction businesses. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether
Slide 14: Macmahon Holdings Limited
For personal use only Macmahon Holdings Limited Company Update 14 May 2013