Macmahon Holdings Limited · ASX:MAH
Macmahon — Singapore & Hong Kong investor roadshow, 22-23 May 2019
26 slides from Macmahon's conference presentation, May 22, 2019
Slide 1: Singapore & Hong Kong 22–23 May 2019 Presentation
Singapore & Hong Kong 22–23 May 2019 Presentation
Slide 2: Our Services
Our Services UNDERGROUND CIVIL / MINING SURFACE PLANT & MINING SERVICES MINING MAINTENANCE Mine development Mining infrastructure Mine planning and analysis Service and maintain Mine production Overburden stripping Mine management equipment Raise drilling Bulk earthworks Drill and blast Rebuild comp
Slide 3: Our Equipment
Our Equipment Dump Trucks Drill Rigs 268 72 Excavators and Loaders 112 MACMAHON – Singapore and Hong Kong Presentation May 2019 3
Slide 4: Map of Operations
Map of Operations MACMAHON – Singapore and Hong Kong Presentation May 2019 4
Slide 5: Financial Performance
Financial Performance * * * FY18 has been restated for consistency with the current year’s presentation MACMAHON – Singapore and Hong Kong Presentation May 2019 5
Slide 6: Corporate Overview
Corporate Overview Capital Structure Share Price Share price (at 20 May 2019) 19.5 cps Fully paid ordinary shares (m) 2,155 Market Capitalisation $420.2m Cash (at 31 Dec 2018) $77.4m Debt (at 31 Dec 2018) $158.6m Enterprise Value $501.4m NTA per share (at 31 Dec 2018) 19.2 cps Directors and Senior M
Slide 7: Key Contracts
Key Contracts Project / Location Commodity / Comments Client Type • Alliance life-of-mine contract Tropicana WA Gold • Achieved reduction in unit cost by ~37% from 2015 AngloGold Ashanti / Australia Open-pit • Phase 1 of Long Island commenced Independence Group • Boston Shaker Underground 5 year con
Slide 8: Work in Hand
Work in Hand • Order book of ~$4.8bn • Excellent visibility and solid platform • Operating at revenue run rate of ~$1bn MACMAHON – Singapore and Hong Kong Presentation May 2019 8
Slide 9: Tender Pipeline
Tender Pipeline • 20 tender opportunities worth $7bn+, split between Australia and Indonesia, and gold, base metals, lithium and coal • $5bn+ (~70%) – preferred tenderer • $4bn+ (~60%) – current clients • $1.5bn potentially to be awarded in 2019 MACMAHON – Singapore and Hong Kong Presentation May 20
Slide 10: Potential Revenue Growth
Potential Revenue Growth • Note: the figures in this graph are indicative only and should not be treated as guidance MACMAHON – Singapore and Hong Kong Presentation May 2019 10
Slide 11: Outlook & Strategy
Outlook & Strategy Strategic Priorities • Improving safety performance • Ongoing focus on project execution and disciplined bidding • Returns to shareholders and disciplined approach to capital management • Fostering strong relationships with clients • Continued investment in recruitment, retention
Slide 12: Highlights
Highlights Reaffirm FY19 Guidance and strong outlook • Significant order book of ~$4.8 billion • Healthy tender pipeline of $7 billion+ • Forecast net debt position of $25 million to $35 million at June 19 • FY19 expected Revenue of $0.95 billion - $1.05 billion2 • FY19 expected Underlying EBIT of
Slide 13: Thank You
Thank You For further information 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 Insert pic MACMAHON – Singapore and Hong Kong Presentation May 2019 13
Slide 14: Appendix
Appendix 14
Slide 15: 1H19 Profit & Loss
1H19 Profit & Loss $ Millions 1H18 1H19 Change Sales revenue 270.0 542.2 +101% 1 EBITDA 45.9 89.1 +94% EBITDA margin 17.0% 16.4% EBIT1 9.7 39.9 +311% EBIT margin 3.6% 7.4% Net finance costs (0.7) (4.8) 1 PBT 9.0 35.1 +290% PBT margin 3.3% 6.5% Tax expense (1.0) (2.8) 1 NPAT 8.0 32.3 +304% NPAT margi
Slide 16: 1H19 Cash Flow
1H19 Cash Flow $ Millions 1H18 1H19 EBITDA 45.9 89.1 Interest and tax 9.4 (10.0) Class Action Settlement - (7.6) Working capital and other (32.5) (54.4) Net operating cash flow 22.8 17.1 Proceeds from sale of assets 0.6 0.2 Capital expenditure (cash) (13.6) (25.4) Net repayment of borrowings and fin
Slide 17: 1H19 Balance Sheet
1H19 Balance Sheet $ Millions FY18 1H19 Cash 109.6 77.4 Receivables 152.3 183.0 Inventories 42.0 45.8 Property, plant and equipment 380.1 408.2 Other assets 39.3 76.8 Total assets 723.3 791.2 Payables 175.0 175.0 Borrowings 106.3 158.6 Other liabilities 32.2 33.2 Total liabilities 313.5 366.8 Shareh
Slide 18: 1H19 Revenue Diversification
1H19 Revenue Diversification MACMAHON – Singapore and Hong Kong Presentation May 2019 18
Slide 19: People
People 1 • Employee increase driven by ramp up of existing projects to steady state • Recruitment initiatives now include a new-to-industry “greenie program” and a defence force intake program • In Australia, 5% of our total workforce is Indigenous. In Indonesia, workforce 99% national, 10% from loc
Slide 20: Safety
Safety • Safety performance continues to improve • TRIFR on track to be better than industry average by end of FY19 • Ongoing rollout of successful Mental and Physical Health Program MACMAHON – Singapore and Hong Kong Presentation May 2019 20
Slide 21: Indonesia
Indonesia Ranked 11 out of 89 countries GDP current (US $Bn) - Large growing economy Source: Resource Governance Institute 2017 RGI Source: World Bank • Indonesia has a long successful mining history • Macmahon has successfully operated in Indonesia for many years • Currently at Martabe (since 2015)
Slide 22: Batu Hijau
Batu Hijau AMNT SUMBAWA ISLAND • 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 Rinti • Open pit, copper-gold porphyry located on Sumbawa Island, Ind
Slide 23: Batu Hijau
Batu Hijau Life-of-mine Alliance Style contract • Approved by shareholders in July 2017 and commenced in August 2017 • Cost reimbursable with a management fee and gain/pain share mechanism subject to cost and production targets • Management fee payable if 90% of production target achieved • US$2.9 b
Slide 24: Digital Transformation
Digital Transformation Optimising performance and equipment health through deployment of next generation operational technology • Increasing visibility of business performance – implemented phase 1 of our ERP digital transformation project • Improving decision making through near real time actionabl
Slide 25: Reconciliation of Non-IFRS Financial Information
Reconciliation of Non-IFRS Financial Information $ Millions 1H18 Restated1 1H19 Profit for the year (as reported) 8.4 23.5 Add back: Loss from discontinued operations (net of tax) - 0.1 Less: Profit from discontinued operations (net of tax) (0.2) - Net profit after tax from continuing operations (as
Slide 26: 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 presenta
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