Macmahon Holdings Limited · ASX:MAH
Macmahon — Investor Presentation (May 2009)
20 slides from Macmahon's investor presentation, May 14, 2009
Slide 1: Entitlement Offer and Share Placement to raise up to $60m
NOT FOR DISTRIBUTION IN THE US. For personal use only Entitlement Offer and Share Pl Placement t tto raise i up tto $60 $60m: Presentation to Investors 14th May 2009 1 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer For personal use only This document has been prepared by Macmahon Holdings Limited (ABN 93 007 634 406) (Macmahon). No party other than Macmahon has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representat
Slide 3: Initiative to Strengthen Balance Sheet
Initiative to Strengthen Balance Sheet M Macmahon h isi today t d undertaking d t ki an equity it capital it l raising i i tto: For personal use only – Strengthen the balance sheet and reduce gearing – Improve p workingg capital p flexibility, y, reducingg risk – Provide capital to grow the business
Slide 4: Business Update
Business Update As announced to the ASX on 27th of April, Macmahon has been affected by an industry wide For personal use only deterioration in market conditions and a number of one‐off impacts: – Cancellation and scope reductions red ctions of a number n mber of mining contracts – Severe wet weathe
Slide 5: Business Update
Business Update Macmahon reaffirms FY09 revised guidance: For personal use only – NPAT $15‐$20 million1 – Revenue Re en e of $1 $1.4 4 billion Macmahon believe it is well p placed for f significant g f improvement: p – Action taken to realign the business and reduce cost base ~$10 million p.a. cost
Slide 6: Construction: Positive Outlook
Construction: Positive Outlook Macmahon maintains an optimistic outlook on the Construction sector due to ongoing and future For personal use only infrastructure spending and continued contract wins Some minor challenges: – Some delays y experienced p in p project j approvals pp and start‐ups p – Sl
Slide 7: Mining: Mixed Outlook
Mining: Mixed Outlook Challenging sector with subdued market conditions expected to remain in place until commodity For personal use only pricing and funding challenges ease Cancellation of some contracts, and reductions in scope of others: – Deferral on the Argyle gy diamond contract, reductions at
Slide 8: Strong Order Book of $1.6b
Strong Order Book of $1.6b For personal use only Order book run-off ($m) Order book characterised by: – Growing portion of construction work – No pre‐stripping contracts remain in the order book 8
Slide 9: Order book diversity
Order book diversity Duration of contract (years) % S l off contract % Style For personal use only > 5 years 16% < 2 years 39% 3-5 years 27% 2-3years 18% Customer % Commodity % 9
Slide 10: Impact of the equity raising
Impact of the equity raising Proceeds of the equity raising will be used to: For personal use only – Repay debt of approximately $40 million – Manage working orking capital – Provide capital for business opportunities Reduces gearing levels and strengthens balance sheet: – Reduces gearing from 36% t
Slide 11: Impact on Balance Sheet
Impact on Balance Sheet For personal use only As at Balance as at Impact of Pro forma as at $ million illi 31st December D b 31st March M h E it R Equity Raising i i 31st March M h 2008 20091 of $60m3 2009 Cash 74 3 74.3 68 2 68.2 17 3 17.3 85 5 85.5 Debt 105 4 105.4 157 4 157.4 (40 0) (40.0) 117 4
Slide 12: Existing investor support
Existing investor support The equity raising is strongly supported by Leighton Holdings: For personal use only – Largest shareholder holding approximately 17.4% of Macmahon issued capital Leighton has committed to subscribe for new shares: – Committed to take up p their p pro‐rata entitlement of the
Slide 13: Investment Highlights
Investment Highlights For personal use only – Significant reduction of debt and gearing Reduces risk in the – Improved working capital position business – Strengthens Macmahon’s cash position, providing increased flexibility – Reduced debt and increased cash balance Strengthened – Ensures the compan
Slide 14: Long Term Debt Maturity Profile
Long Term Debt Maturity Profile Balance at Additional Debt For personal use only Debt Total Facility Maturity 31 March 20091 Capacity Term debt2 $66 1m $66.1m $33 9m $33.9m $150m October 2010 Guarantee Facility2 $44 0 $44.0 $6 0m $6.0m Finance Leasing3 $91.3 N/A N/A 1‐5 years Total $157.4 N/A $33.9m
Slide 15: Offer details
Offer details Placement and Institutional Entitlement Offer underwritten to raise approximately $44.2 million. For personal use only Retail Entitlement Offer to raise up to $15.8 million, underwritten to $3.2 million Entitlement offer is a non‐renounceable pro‐rata entitlement: – 1 new share for eve
Slide 16: Offer details
Offer details Eligibility: For personal use only – Some shareholders resident outside Australia and New Zealand are not eligible to participate in the Entitlement Offer due d e to securities sec rities la law restrictions on the offer of Macmahon shares in certain jurisdictions (‘Ineligible Sharehol
Slide 17: Key Dates
Key Dates Event Date For personal use only Announcement Thursday, 14 May 2009 (8:00am EST) I i i Institutional l Entitlement E il Off and Offer d Pl Placement opens Th d 14 May Thursday, M 2009 (8:00am (8 00 EST) Institutional Entitlement Offer and Placement closes Thursday, 14 May 2009 (4:30pm EST)
Slide 18: Key Risks
Key Risks Industry & commodity – Macmahon’s financial performance is impacted by the level of activity in mining, civil infrastructure and construction. Activity levels are For personal use only impacted by factors beyond Macmahon’s control such as commodity prices and government policy on infrastru
Slide 19: Important Information and Disclaimer
Important Information and Disclaimer United Kingdom With respect to the United Kingdom (the "UK"), this document (which for these purposes includes any accompanying letter or other document) is only being and may only be distributed to For personal use only and is directed at persons who are both (a
Slide 20: Important Information and Disclaimer
Important Information and Disclaimer Hong Kong For personal use only WARNING The contents of this document have not been reviewed or approved by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to any offer of New Shares by Macmahon. If you are in any doubt abou