Macmahon Holdings Limited · ASX:MAH
Macmahon — Macquarie WA Forum 2020
11 slides from Macmahon's conference presentation, Dec 1, 2020
Slide 1: Macquarie WA Forum
Macquarie WA Forum 1 December 2020
Slide 2: Company Overview
Company Overview A leading mining services company Established ASX 300 – Market Capitalisation ✓ Offers the complete package of mining services primarily in 1963 $540m Australia and Southeast Asia ✓ Extensive experience in both People Australian Mining surface and underground mining 7,000+ Contract
Slide 3: Financial Snapshot
Financial Snapshot Achieved guidance for 3rd consecutive year Revenue ($m) Underlying EBIT(A) ($m) 1,380 92 Record 1,103 75 Another successful year 42 710 • 3 year revenue CAGR of 57% 360 • Delivered record EBIT(A) -2 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Guidance Guidance Underlying EBITDA ($m) O
Slide 4: Recent Business Highlights
Recent Business Highlights Tripled underground business over past year Expanded Underground • Successful Boston Shaker project • Completed GBF acquisition • Extended Silver Lake contract • Secured Bellevue contract Mount Monger, WA (Silver Lake Resources) Boston Shaker, WA (AngloGold Ashanti / IGO)
Slide 5: A Record Year
A Record Year Strong free cash flow potential Revenue Record underlying EBITDA1 Leverage2 $1,380.4m $238.7m 0.3x FY20 p 25% on FY19 p 32% on FY19 Results Highlights Net Operating Cash Flow Capex Free Cash Flow $193.6m $141.6m $52.0m Conservative balance sheet Improving returns3 net debt / (net cash)
Slide 6: Key Projects
Key Projects Growing activity in WA End (unless Global Project Clients Location Commodity Type extended) Cost Curve1 Tropicana Surface 2023 WA, Australia Gold Boston Shaker Underground May 2024 Telfer WA, Australia Gold Surface Jan 2023 Mount Morgans WA, Australia Gold Surface Dec 2022 Mount Monger
Slide 7: People, Safety and Sustainability
People, Safety and Sustainability Record low LTI safety performance Injury Frequency Rates and Workforce 7,059 5,572 5,050 Second Lowest 3.77 2,171 Record Low 0.12 FY17 FY18 FY19 FY20 TRIFR (Total Recordable Injury Frequency Rate) Contractors Employees LTIFR (Lost Time Injury Frequency Rate) Team Ma
Slide 8: Key Strategic Priorities
Key Strategic Priorities Diversify into adjacent services Mining Value Chain Develop Open-Cut Underground Rehab Civil / Operations / Operations / Process Process Operations / Engineering Engineering Engineering Engineering Explore Evaluate Process Plant & Maintenance Plant & Supply / Hire / Maintain
Slide 9: Order Book
Order Book $4.2 billion (at October) Work in Hand ($m)1 3 year Work in Hand by Commodity 1,600 4% Plus: Short-term Plus: 1,400 work Short-term work Warrawoona 1,200 Foxleigh Plus: 18% Short-term work 1,000 Warrawoona Gold Foxleigh 800 Copper / Gold 51% Coking Coal 600 Other 400 27% 200 FY21 FY22 FY2
Slide 10: Tender Pipeline
Tender Pipeline ~$8.5bn of opportunities Expected Project Commencement 12–18 Months 2–3 Years Preferred / Extensions Potentially $3–$5bn to Tender be awarded in next 12 months Pre Tender Bubbles represent = $200m New Client Current Client contract value MACMAHON – Macquarie WA Forum December 2020 10
Slide 11: Strong Outlook
Strong Outlook Well positioned for sustainable growth ✓ Scalable – systems, processes, structure A leading mining ✓ Successful flexible alliance style approach services business ✓ Proven capabilities across the whole mining value chain ✓ Focused on developing technological competitive advantage ✓ $4