Macmahon Holdings Limited · ASX:MAH
Macmahon — Shareholder Meeting (November 2010)
60 slides from Macmahon's shareholder meeting presentation, Nov 26, 2010
Slide 1: Annual General Meeting 2010
MAGMAHON Annual General Meeting 2010
Slide 2: Ken Scott-Mackenzie
Ken Scott-Mackenzie MAGMAHON
Slide 3: Board of directors
Board of directors Se Nick Bowen John Massey Vyril Vella Dr David Smith Q) MACGMAHON
Slide 4: 2010 overview
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Slide 5: Safety in focus
Safety in focus — Zs = 9 @ Q =) © = S D — @ fo} i O LL MAGMAHON
Slide 6: Net profit
Net profit Net profit after tax ($m) 60 5% 4% 3% 2% 1% MAGMAHON
Slide 7: Dividends and payout ratio
Dividends and payout ratio Dividend per share and payout ratio Cents ou NO BR OO 60% 47% 49% 58% oi 2006 2007 2008 MEE Full year dividend 2009 2010 =@-= Payout ratio 70% 60% 50% 40% 30% 20% 10% 0% Q MAGMAHON
Slide 8: Strong financial base to fund growth opportunities
Strong financial base to fund growth opportunities Operating cash flow and gearing 100% 80% 60% 40% 20% 0% -20 -12.9%! 20% 2006 2007 2008 2009 2010 HM Operating cashflow += Gearing - net debt to equity % Net cash surplus over debt of $43.8 million at 30 June 2010 Q MAGMAHON
Slide 9: Order book
Order book Order book ($m) 2,000 - 1,500 g = 7 1,000 2,006 2,138 1,194 ote 500 oO 2006 2007 2008 2009 2010 Q MAGMAHON
Slide 10: Contract extensions and new contracts
For personal use only • Contract extensions - $1.2 billion • New Australian contracts - $0.6 billion • New overseas contracts - $0.3 billion 10
Slide 11: Update to the market
Update to the market MAGMAHON
Slide 12: For personal use only
12 For personal use only
Slide 13: Corporate governance
Corporate governance MAGMAHON
Slide 14: Macmahon values
Macmahon values SAFETY a Look after yourself, your team and others around you. TEAMWORK n Work smart, work hard, work together. Create value for shareholders, employees, clients and partners. Do what you say you are going to do. , ENVIRONMENT Reduce, recycle, rejuvenate. MAGMAHON
Slide 15: For personal use only
15 For personal use only
Slide 16: For personal use only
~S altaya : ‘ ce es ‘ “| im, See er] TE wy ae iota MAGMAHON
Slide 17: For personal use only
17 For personal use only
Slide 18: For personal use only
For personal use only • Strong recovery from GFC • Rebuilt the order book • Improved cashflow, profit, balance sheet • Outstanding safety performance 18
Slide 19: Strategy
Strategy VISION & “a To be the preferred contractor S$; a for the resources and government sectors, QS s offering reliable, innovative and dient focused solutions ANI UTA ROUGH AQU! SIT 1ON EARNINGS PERSHAREGROWTH RETURNONEQUITY ORDER BOOK SHAREHOLDERS Q MAGMAHON
Slide 20: For personal use only
20 For personal use only
Slide 21: Safety performance
Safety performance Group safety performance si 12. 12.9 12 10 8 7.4 6 4.6 4 2 1.9 2.0 En ie} 2007 2008 2009 2010 = Lost Time Injury = Total Recordable Injury Frequency Rate Frequency Rate Q MAGMAHON
Slide 22: Training for the future
uture Training for the f et any jeUssie x cant MAGMAHON 22
Slide 23: For personal use only
23 For personal use only
Slide 24: Current projects
Current projects George Fisher [——*_ Linc mine - Ystrata, Misa, wD Eaglefield Coal mine -Peabody Energy owen Basin, O10 Jilalan ‘Rail works - Queensland Rail ‘Bowen Basin, OLD Cameby Downs [-* Coalmine-Syntech Resources Surat Basin, OLD non ore mine- BHP Bilton «= Newman, Wh —| Ig SP 5) J w \eey | O
Slide 25: Underground mining
Underground mining By nt i ee, f ~ ae nae: Sg ALES liga Son FOR Per a G MAGMAHON 25)
Slide 26: Core capability snapshot
Core capability snapshot ii I _ Ele sti inki
Slide 27: Argyle - utilising our core capabilities
Argyle - utilising our core capabilites ' MACMAHON
Slide 28: For personal use only
28 For personal use only
Slide 29: Core capability snapshot
y snapshot ROY. S Drill and Dia CQ'9 / CODER / SS
Slide 30: Orebody - utilising our capabilities
CTS Orebody 18 - ‘utilising our capabilites MAGMAHON
Slide 31: For personal use only
31 For personal use only
Slide 32: Plant and maintenance advantage
Bs SIH tf ) an Plant and maintenance advantage
Slide 33: International
International Kanthan ' Malaysia sail Kong of . Ewekoro - Nigeria at Waihi - New Zealand fe Z Q MAGMAHON
Slide 34: Showing our diversity
SS Hong Kong - s Bs i @, ; : howing our diversity
Slide 35: Ewekoro - an opportunity
Ewekoro - an opportunity | SSS fT ‘lA dll ii il ili sonal use o La 2 uM A. Vy oll | foe i= 2 \ ¢ ¥y rs hs ’ ° - . = y y we, ‘o~ < t PW eer ee nk Beh ‘ oe . a G MAGMAHON i
Slide 36: Construction
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Slide 37: Core capability snapshot
Core capability snapshot (Lu Ml tae |
Slide 38: Tiger Brennan Drive - utilising capabilities
Tiger Brennan Drive - utilising capabilites wile 4 mG cl oer cr ge On a @ MAGMAHON
Slide 39: For personal use only
39 For personal use only
Slide 40: Our current customers
Our current customers e@ , bhpbilliton RioTinto farance §j) 0!" Gunes OC newscerr ~-OR Peabody ure * I @amainroads Transport Infrastruct peri lya [Z| i engebslladed Cg sien sos Northern Territory fiz Government of South Australia Government fis sale Department for Transport, Australian Government En
Slide 41: Market outlook
Sy Sy Oo / OOk Market outlo v4 QO os < a= Oo <{ =
Slide 42: Growth opportunities
Growth opportunities CO © Mining project @ Construction project © Growth opportunities ‘*. me? MAHON
Slide 43: Overview
For personal use only Overview • Mixed business results • Mining performing strongly • Construction underperforming - review of the business 43
Slide 44: Initial findings
For personal use only Initial findings • Strategy to grow has been constrained by fewer opportunities and high competition – Taken our focus away from our traditionally strong performing markets • Some large contract structures are creating complexity and increasing risk profiles • Opportunity to im
Slide 45: Actions
For personal use only Actions • Realigned and targeted strategy in each state to focus on core strengths • Restructure parts of the organisation to improve efficiency • Strengthen business development capability • Focus on the contract styles and structures that best fit the business • Increase and
Slide 46: Key contracts
For personal use only Key contracts • South Road Superway project, South Australia, $230 million • Roe Highway interchange project, Western Australia, $74 million • Karara rail contract, Western Australia, $84 million • RAAF Base Darwin, Northern Territory, $25 million • Combined undergound contract
Slide 47: Current order book
Current order book Order book ($m) 2,000 7 1,500 £ a 1,000 2,006 500 fe) — | 2006 2007 2008 2009 2010 November Q MAGMAHON
Slide 48: Macmahon outlook
Macmahon outlook — Or personal use only F u . é 4 * < ghee as - ele 3 é Mi Z 4 / y » y an Pai, iP tes » > aut — f, 7 4 a ee ge A v7] tht AE - r uf Ws De a, . sq r a a Ss =a é is 7 Jord / y ie s
Slide 49: Adoption of remuneration report
For personal use only ADOPTION OF REMUNERATION REPORT To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of section 250R(2) of the Corporations Act, the Remuneration Report (which forms part of the Directors' report for the year ended
Slide 50: Adoption of remuneration report - votes
For personal use only ADOPTION OF REMUNERATION REPORT For: 227,262,976 Against: 149,628,082 Abstain: 1,133,544 At the Proxies Discretion: 6,886,295 Total Proxy Votes = 52.45% of shares on issue * Please note that the numbers detailed above may include proxies that have been suspended due to the atte
Slide 51: Re-election of David Marshall Smith as a director
For personal use only RE-ELECTION OF DAVID MARSHALL SMITH AS A DIRECTOR To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To re-elect Dr David Marshall Smith, who was appointed by the Board in April 2010 and automatically retires from the office of Directo
Slide 52: Re-election of David Marshall Smith - votes
For personal use only RE-ELECTION OF DAVID MARSHALL SMITH AS A DIRECTOR For: 374,692,299 Against: 2,724,698 Abstain: 480,731 At the Proxies Discretion: 7,013,169 Total Proxy Votes = 52.47% of shares on issue * Please note that the numbers detailed above may include proxies that have been suspended d
Slide 53: Re-election of John Clarence Massey as a director
For personal use only RE-ELECTION OF JOHN CLARENCE MASSEY AS A DIRECTOR To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To re-elect Mr John Massey, who retires from the office of Director by rotation in accordance with rule 3.6(c) of the Company’s Consti
Slide 54: Re-election of John Clarence Massey - votes
For personal use only RE-ELECTION OF JOHN CLARENCE MASSEY AS A DIRECTOR For: 373,914,798 Against: 3,399,925 Abstain: 603,516 At the Proxies Discretion: 6,958,936 Total Proxy Votes = 52.45% of shares on issue * Please note that the numbers detailed above may include proxies that have been suspended d
Slide 55: Amendment of constitution
For personal use only AMENDMENT OF CONSTITUTION To consider, and if thought fit, to pass the following resolution as a special resolution : “That, with effect from the close of the Meeting and in accordance with section 136 of the Corporations Act, the Company modifies its Constitution by : a) delet
Slide 56: Amendment of constitution (continued)
For personal use only d) deleting in its entirety the definition of "SCH business rules" in rule 1.2; e) inserting directly after the definition of "ASX" in rule 1.2 the following new definition: ""ASX Settlement Rules" means the operating rules of ASX Settlement Pty Limited (ABN 49 008 504 532) and
Slide 57: Amendment of constitution - votes
For personal use only AMENDMENT OF CONSTITUTION For: 375,110,562 Against: 1,948,393 Abstain: 864,523 At the Proxies Discretion: 6,987,419 Total Proxy Votes = 52.47% of shares on issue * Please note that the numbers detailed above may include proxies that have been suspended due to the attendance of
Slide 58: Adoption of proportional takeover provisions
For personal use only ADOPTION OF PROPORTIONAL TAKEOVER PROVISIONS To consider, and if thought fit, to pass the following resolution as a special resolution: “That, with effect from the close of the Meeting and in accordance with sections 136 and 648D of the Corporations Act, the Constitution of the
Slide 59: Adoption of proportional takeover provisions - votes
For personal use only ADOPTION OF PROPORTIONAL TAKEOVER PROVISIONS For: 375,026,153 Against: 2,239,583 Abstain: 586,105 At the Proxies Discretion: 7,059,056 Total Proxy Votes = 52.46% of shares on issue * Please note that the numbers detailed above may include proxies that have been suspended due to
Slide 60: Annual General Meeting 2010
MAGMAHON Annual General Meeting 2010
Macmahon Holdings — Shareholder Meeting (November 2010) on 6ix