Macmahon Holdings Limited · ASX:MAH
Macmahon — Investor Presentation (May 2004)
14 slides from Macmahon's investor presentation, May 19, 2004
Slide 1: Macmahon - Update May 2004
MACMAHON MACMAHON - UPDATE MAY 2004 19 MAY 2004 NICK BOWEN
Slide 2: Company Structure
COMPANY STRUCTURE MACMAHON ~ Road works -7.5% APT/Freightlink ~ Railways Shareholder ~ Ports (Owner & Operator) - Dams - Mine Infrastructure - Open Cut Mining ~ Plant Hire - Road Maintenance - Drill & Blast - Labour Hire - Crushing - Mine Development - Plant Maintenance - Mine Production - Productio
Slide 3: Current contracts performing well
Current contracts performing well: > Tonkin Highway (JV) > TNC — Road maintenance > Burnett River Dam (JV) > Happy Valley Dam > Dampier Port Upgrade Roe Highway (completed 5 months early). Perth to Mandurah rail award expected soon. High levels of tendering activity - Government Infrastructure (Fede
Slide 4: Open Cut
OPEN CUT MACMAHON > Current focus remains on successful start-up of new contracts. » Equipment deliveries for new contracts completed — operating at fully capacity from May. >» Further expansion required by clients necessitating additional equipment — delivered progressively through to end August. >
Slide 5: Underground
UNDERGROUND @) MACM ARGH > New Olympic Dam contract for WMC successfully commenced. Contract scope increased. >» Division now at + $60 million pa revenue. >» Contract relationships minimize risks — emphasis on safety/performance. >» High levels of tendering activity. >» Expect revenue growth in 04/0
Slide 6: Services
SERVICES Q MACM ARGH >» Business growth continues: » Earthmoving Equipment Hire > Labour Hire >» Mobile Equipment Maintenance and Repairs >» Meeting/exceeding all hurdle rates. >» Acquisition of Allplant — Mobile equipment repair business (+ $4 million pa revenue). >» Maintenance Services expansion
Slide 7: Malaysia
MALAYSIA » Kanthan contract performing well — Production rate doubles from December 2004. > Second contract with Lafarge to be tendered in next 6 months. >» Client relationship excellent.
Slide 8: Freightlink
FREIGHTLINK OQ MACMAHON $26.8 million investment — 7.5% shareholding. >» Successful commencement of rail opportunities. >» Freight volumes meeting/exceeding expectations. » International business trials underway — 2 years earlier than expected. Targeting minerals projects which will have a significa
Slide 9: Order Book
Q ORDER BOOK MACMAHON > — In first 10 months this year awarded $730 900 million of new work. 800 740 . § » Order book underpins next 2 years. By Division As at 20.4.04 : $740m $8 B Civil Underground f Open Cut O Malaysia Years @ Hire/Other Pe] Order Book
Slide 10: Order Book & Run-off
ORDER BOOK & RUN-OFF BAC MAHON $740 $525 Estimated $330 2005+ 2004/05 Order Book 2277 Extensions HM Existing work QR New Work 04 4 30 10
Slide 11: Capex/Debt
CAPEX/DEBT Q MACMAHON CAPEX 180% 160% 140% 120% 100% 80% 60% 40% 20% “ O% | Capex 2002 2003 2004. 2005 . Forecast Estimate ~~ Debt/Equity Note: $27.5 equity raising completed January 2004 $ million tt
Slide 12: Revenue/Margins
REVENUE/MARGINS Revenue (including JV) and EBIT Margin 5.0% 45% 4.0% 3.5% 3.0% 2.5% 2.0% + 1.5% 1.0% 0.5% 0.0% Gm Revenue —e— EBIT Margin $ million 2002 2003 2004 2005 Forecast Estimate 12
Slide 13: 2004 Outlook
2004 OUTLOOK MACMAHON wv Contracts performing well. Successful start up of new contracts. Record wet in Pilbara/Kimberley had minimal impact. vv Ww Previous forecast (February 2004) of $8.5 million will be exceeded — now expect full year result in the range of $9 to $10 million PAT. 13
Slide 14: 2005 Outlook
2005 OUTLOOK £2 Vv Strong starting position (65% of forecast revenue already on hand, additional 13% will come from extensions/known new work). » Revenue growth to an estimated $525 million. > Expect 4.5% EBIT margin with opportunity to improve to 5% subject to timing of new work. » Group expecting