Macmahon Holdings Limited · ASX:MAH
Macmahon — Shareholder Meeting (November 2015)
21 slides from Macmahon's shareholder meeting presentation, Nov 4, 2015
Slide 1: Annual General Meeting 4 November 2015
For personal use only ANNUAL GENERAL MEETING 4 NOVEMBER 2015
Slide 2: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS MR JIM WALKER
Slide 3: Board of Directors
Board of Directors For personal use only Jim Walker Sy van Dyk Non-Executive Director, Chief Executive Officer and Chairman Managing Director Giles Everist Eva Skira Vyril Vella Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director Macmahon 2015 Annual General
Slide 4: Year in review
Year in review For personal use only Market conditions remained challenging during FY15 Further reduction in activity levels resulting in greater competition for limited new work Increased demand for cost and productivity improvements Conclusion of major contracts (Christmas Creek, Eaglefiel
Slide 5: New leadership
New leadership For personal use only Sy van Dyk José Martins Chief Executive Officer and Chief Financial Officer Managing Director Macmahon 2015 Annual General Meeting 5
Slide 6: Financial performance
Financial performance For personal use only FY15 consolidated loss after tax of $217.9 million, primarily due to impairments taken on equipment, goodwill and inventory assets Underlying profit after tax (excluding one off items) of $10 million Strong net cash position at 30 June 2015 of $74.2
Slide 7: Capital Management
Capital Management For personal use only 10/12 share buy back initiated in October 2015 ~$40 million required for working capital (based on projected workload) Currently finalising ~$30 million multi-purpose growth facility with a major Australian Bank In discussions with OEM’s regarding glo
Slide 8: Outlook
Outlook For personal use only Market conditions expected to remain challenging Cost and productivity drivers creating opportunities for contractors Outlook for the business is positive - order book of $1.15 billion supported by quality long-term contracts Revised tendering approach – support
Slide 9: Annual General Meeting November 2015
For personal use only ANNUAL GENERAL MEETING 4 NOVEMBER 2015
Slide 10: Chief Executive Officer's Address
For personal use only CHIEF EXECUTIVE OFFICER’S ADDRESS MR SY VAN DYK
Slide 11: Investment case
Investment case For personal use only Major cost reduction program successfully executed Healthy balance sheet supported by strong net cash position 10/12 share buyback initiated in Oct 2015 Financial New, streamlined operating model implemented Improved organisational structure - reduced
Slide 12: Operational performance
Operational performance For personal use only Key project performing to expectations: – Tropicana operations performed well in second half – on track for further improvements in FY16 Revenue and margins impacted by: – Early contract terminations due to financial pressures facing mine owners – Si
Slide 13: FY15 contract awards and extensions
FY15 contract awards and extensions For personal use only International: – 5 year contract extension at the Lafarge Kanthan Quarry in Malaysia Australia: – 3 year contract extension by Rio Tinto to continue tailings dam management operations at Argyle Diamond Mine in WA – Awarded additional rais
Slide 14: Strategic priorities
Strategic priorities For personal use only Delivering sustainable profits and returning value to shareholders Increasing work winning conversion rate by: – Lowering cost base – Streamlining systems and processes – improving productivity – Selective tendering – Focusing on early client engagement
Slide 15: Business outlook
Business outlook For personal use only Iron-ore price remains depressed, however production is forecast to increase in coming years Gold price is volatile – although MAH exposed to one of the lowest cost producers / operations (Tropicana) Falling $A is assisting Australian mining companies C
Slide 16: Questions
Questions For personal use only macmahon.com.au
Slide 17: Resolution: Adoption of Remuneration Report
Resolution 1 For personal use only ADOPTION OF REMUNERATION REPORT “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 30 June 2015) be adopted.” Macmahon 2015 Annual General Meeting 17
Slide 18: Resolution: Re-election of Giles Everist as a Director
Resolution 2 For personal use only RE-ELECTION OF GILES EVERIST AS A DIRECTOR “To re-elect Mr Everist, who retires from the office of Director in accordance with ASX Listing Rule 14.5, and being eligible, offers himself for re-election”. Macmahon 2015 Annual General Meeting 18
Slide 19: Annual General Meeting November 2015
For personal use only ANNUAL GENERAL MEETING 4 NOVEMBER 2015
Slide 20: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the business. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether circumstances actually occ
Slide 21: Annual General Meeting November 2015
For personal use only ANNUAL GENERAL MEETING 4 NOVEMBER 2015
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