Macmahon Holdings Limited · ASX:MAH
Macmahon — H1 2005 Earnings Presentation
15 slides from Macmahon's earnings presentation, Feb 18, 2005
Slide 1: Macmahon - When Experience Counts
MACMAHON WHEN EXPERIENCE COUNTS
Slide 2: Highlights
HIGHLIGHTS ace eon >» Strong first half year result ACTUAL > Revenue up 58% to $228 million > EBITDA up 64% to $27.8 million > Profit up 127% to $7.6 million > EBIT Margin 4.2% > Order Book $720 million: >» Positive outlook for mining and civil infrastructure
Slide 3: Revenue / Profit
REVENUE / PROFIT vince dacn Half Year End Dec 04 Jun 04 Dec 03 Total Revenue $288 $252.1 $182 EBITDA $27.8 $24.9 $16.9 EBIT $12.1 $11.8 $6.9 EBIT Margin 4.2% 4.7% 3.8% PAT $7.6 $8.2 $3.4 EPS 2.0¢ 2.1¢ a 1.4e vVvvVvV Vv Vv wv
Slide 4: Balance Sheet
BALANCE SHEET ace eon Half Year End Dec 04 Jun 04 Dec 03 > Cashflow from Operations $21.3 $30.8 $20.5 > Capital Expenditure $33.1 $36.9 $20.6 > Nett Debt $64.7 $51.5 $68.2 > >» Cash at Bank (overdraft) $35.4 $32.9 -$1.9 > Debt/Equity Ratio 61.2% 51.8% ; 110.7% > Net Interest Cover 3.9 3.1 ~~ 2.0
Slide 5: Market
MARKET $m $250 5 $200 5 $150 $100 | $50 | MARKET CAPITALISATION $72 $101 $205 ‘@) MACM AMON > Share price doubled from 27c at 30 June 2004 to 54c¢ at 31 January 2005 $0 Jun-02 Jun-03 Jun-04 Dec-04 Jan-05
Slide 6: People / Safety
PEOPLE / SAFETY vince dacn 45.0 - 40.0 - » Employee numbers increased by over 35.0 - 300 in 6 months to 2000 30.0 - . eo No permanent disabling injuries 25.0 224 20.0 5 LTIFR improved by 7% - 15.0 5 10.0 5 TRIFR impacted by increase in minor - 5.0 | injuries CS 0.0 T T T Jun-01 Jun-02) Jun-03 Jun-04
Slide 7: Order Book
ORDER BOOK Q MAC MARMICIM 880 > Total of $424 million of new contracts and extensions (July 2004 to January 2005) > Order book at $880 million $ (millions) > $588 million of revenue already secured for:2005. 2002 2003 2004 Dec-04 Jan-05 Year
Slide 8: Civil Macmahon
‘@) CIVIL MACMAHON Half Year End Dec 04 June 04 Dec 03 + Revenue $117.4 $106.3 $62.8 * EBIT $2.9 $8.0 $7.2 + EBIT Margin 2.5% 75% 11.5% > New work awarded by Rio Tinto Iron Ore (rail) and Alcan Gove (civil and concrete) > 1% half profit contribution from joint ventures lower ($1.0 million compared t
Slide 9: Open Cut
OPEN CUT ace eon Half Year End Dec 04 June 04 Dec 03 * Revenue $129.4 $112.0 $87.2 + EBIT $8.0 $6.0 $2.1 * EBIT Margin 6.2% 54% 2.4% Revenue of $240 million expected for 2005 (2004: $197 million) Further improvement in EBIT margin reflecting positive impact of recent tendering Contract extensions in
Slide 10: Underground
UNDERGROUND wae am Half Year End Dec 04 June 04 Dec 03 + Revenue $31.8 $29.1 $24.7 + EBIT $3.5 $2.3 $1.9 + EBIT Margin 11% 7.9% 7.7% > Revenue growth to $75 million in 2005 (2004: $53.7 million) >» Business Model appropriately shares risk/rewards » Specialist cable bolting work providing additional
Slide 11: Allplant
ALLPLANT @) eg ttlele FP LAIN Half Year End Dec 04 June 04 Dec 03 * Revenue (including Internal) $18.4 $12.7 $5.9 + EBIT $3.5 $2.8 $1.1 * EBIT Margin 19% 22% 19% » 3 business streams: - Large Earthmoving Plant Hire — 120 items in fleet - Maintenance Services — mechanical repairs for major plant - La
Slide 12: Freightlink - Alice Springs to Darwin Railway
FREIGHTLINK - ALICE SPRINGS TO DARWIN RAILWAY © MACM AMON >» First year achieved 600,000 tonnes of freight and more than 80% of freight on the corridor converting from road to rail > New business plan completed reflecting a more accurate understanding of future growth and new business > Additional f
Slide 13: Outlook 2005
OQUTLOOK “ 2005 sence cen VV V VV WV WV Positive outlook in civil construction and mining Increased requirements from existing clients in all divisions Significant revenue growth to $600 million (up from $434 million) High volume of new work available at targeted margins Targeted 5% EBIT margin unli
Slide 14: Strategy
STRATEGY sence cen Vv Continue with four business units which provide broad exposure to civil and mining sectors Target growth in areas delivering best returns (Target 6% EBIT margin) Seek opportunities arising from changes in competitor position Increased focus on risk management across all areas o
Slide 15: Outlook 2006 Onwards
OUTLOOK 2006 ONWARDS ace eon Further revenue growth achievable Move to full tax accounting (30%) in 2006 Targeting to deliver 20% profit growth even after increased tax Positive outlook for several years Vv Vv VV W Macmahon has an opportunity to position itself as a major publicly listed playerin th