Slide 1: 2004 Financial Results Presentation
Q MACMAHCTIN WHEN EXPERIENCE COUNTS 2004 FINANCIAL RESULTS PRESENTATION August 2004 NICK BOWEN CHIEF EXECUTIVE OFFICER
Slide 2: Summary
SUMMARY ©) MACMAFION >» Net profit after tax up 36% to $11.6 million » Fully franked dividend of 0.5cps » Debt/equity down to 52% » Earnings per share increased to 3.51 cents on expanded equity » Record $862 million new contracts and extensions won » All divisions improved EBIT margins » Positive ou
Slide 3: Revenue & Profit
REVENUE & PROFIT Total Revenue » Reduced revenue reflects timing of completed contracts (ADrail) and commencement of new work %» Second half Total Revenue @ $250 million confirms +$500 million p 2000 2001 2002 2008 2004 business : Tint Vertue Enites oft ile rovenue Yoar Group (excludg Joint Venlures
Slide 4: Margins & Cashflow
MARGINS & CASHFLOW Cash flow from operations 2000 2004 2002 2008 2004 Year EBIT j Total Revenue 2002 2008 2004 » EBITDA increased to $41.8 million, a margin of 9.6% on revenue Business has generated $144 million of cash in last 4 years » Strong cashflow expected to.continue EBIT / Total Revenue marg
Slide 5: Capital
MACMAFION CAPITAL ©) Capital Expenditure » Capital expenditure of $56 million for scheduled replacement and increased capacity » Capital expenditure financed with on balance sheet leasing » Fleet average life remaining improved to 2000 2001 ‘ew 2003 2004 37% (2003: 34%) » Lower return on capital ref
Slide 6: Borrowings
MACMAFION BORROWINGS Q » Debt reduced by $17.8 million to $51.5 million » Contracting nett debt only $34.5 million ($17 million APT debt) » Off balance sheet financing not used » Successful $29.6 capital raising $ (million) [1B Total Net Balance Sheet Dabt m Operating Lease | Net Debt to Equity Rati
Slide 7: People
MACMAFION PEOPLE Q spa - » Continued focus on safety : delivered 12% improvement in a? i Lost Time Injury Frequency Rate | : » No permanent disabling injuries Eis » Commitment to further improve ° = L safety performance across.all ... ° = mL ven von divisions ae ms » 1600 employees » Strong 40 year
Slide 8: Order Book
ORDER BOOK Q MACMAFION ${mil) Work on Hand at 30 June 900 + 2000 2001 2002 2003 Year 2004 Record $862 million of new contracts and contract extensions won 62% of order book in Civil, Coal and Iron Ore ~ growth sectors 85% of order-book with.” Government and companies with market cap greater than $1
Slide 9: Order Book & Run-off
ORDER BOOK & RUN-OFF Q MACMAFION $520 Target $414 30.6.04 2005 2006+ Years (EM) “~ order Book E2274 Extensions and Contracts under negotiation ME order book run-off New Work Required ;
Slide 10: Civil
C IVIL @) MACMAHON » Revenue $169.1 million (2003: $227.7 million included Alice Springs to Darwin Railway) » Second half revenue @ $106 million » EBIT margin improved to 9% with strong results from joint ventures » Major contracts » Burnett River Dam JV - QLD » Tonkin Highway JV - WA » RailLink JV
Slide 11: Open Cut
Q MACMAFION » Revenue $199.3 million (2003: $186.1 million) EBIT margin of 4.1% (2003: 3.9%) but second half improved to 6.7% » Revenue to be maintained at current levels with focus > Major contracts » Eaglefield - QLD - Peabody (Coal) » Moura - QLD - Anglo Coal (Moura Management) Pty Ltd (Coal) » M
Slide 12: Underground
MACMAFION UNDERGROUND @) » Strong growth opportunities in gold, nickel and base » Specialist work (diamond drilling and cable bolting) » Target 2005 revenue of $75 million+ - Revenue $53.7 million (2003: $66.2 million) reflecting completion of contracts » EBIT margin improved significantly to 7.9% (
Slide 13: Allplant
ALLPLANT Q ALLE LAN 'T » 3 business streams — plant hire, labour hire and equi » EBIT margin 20.9% » Expanding into Eastern States » 2005 revenue $40 million+ (>50% external) » Opportunities to grow further » Revenue $18.6 million (2003: $5.8 million) including $9.6 million internal » 50% of busines
Slide 14: Malaysia
MALAYSIA Q MACMAFION » Re established Malaysian business with award of 6 year mining contract by La Farge » Mining 4.5 million tonnes limestone annually » La Farge is the worlds largest cement manufacturer » Operations profitable and cash positive in first 6 months » Strategy is to expand relationsh
Slide 15: APT/FreightLink - Alice Springs to Darwin
MACMAFION APTIFREIGHTLINK - ALICE SPRINGS TO DARWIN Q » Construction completed October 2003 — 5 months early » Freight operations commenced January 2004 — 221,000 tonnes of domestic freight to June 2004 » On target for 350,000 tonnes in first year » Additional business to come from fuel, agriculture
Slide 16: Market Opportunities
MARKET OPPORTUNITIES Q) MACMAFION Coal Qid. 160mt ~ 200+mt $1.3B Engineering Construction (5 years) 50% increase in Port Capacity Oil and gas Planned expansion projects Iron Ore WA i.e. Gorgon ($7B) and 220mt — 300*mt AusLink NW. Shelf ($28) $1B+ expansion $11.8 billion ——___.. Pacific Hwy Over next
Slide 17: Outlook - 2005
MACMAFION OUTLOOK - 2005 Q) » Mery positive outlook in civil construction and mining » Increased requirements from existing clients in all divisions » Significant revenue growth in Civil (+ 30%) and Allplant (+ 100%) » $450 million of existing contracts and contracts under negotiation for 2005 » Hig
Slide 18: MACMARON
Q MACMARON Q MAGMAHON WHEN EXPERIENCE COUNTS
Slide 19: Company Structure
COMPANY STRUCTURE ‘i - Road works -7.5% APT/FreightLink - Railways Shareholder - Ports (Owner & Operator) - Dams - Mining ~ Plant Hire : - Mine Infrastructure - Drill & Blast - Labour Hire - Road Maintenance _ Crushing - Development ~ Plant Maintenance - Production - Production Drilling - Ground Sup
Slide 20: Summary Statistics Information
SUMMARY STATISTICS INFORMATION Q MACMAFION FINANCIAL Total Revenue Including JV $434.1 $485.2 -10.5% EBIT $18.7 $17.0 10.0% PBT $12.2 $8.9 387.1% PAT $11.6 $8.5 364% Shareholders Equity $99.4 $57.9 17% Net Borrowings $51.5 $69.3 -25.7% Debt/Equity 51.8% 119.6% Capital Expenditure $57.5 $10.5 Dividen
Slide 21: Price Comparison Chart
MACMAFION PRICE COMPARISON CHART Q 24
Slide 22: Contracts Listing
CONTRACTS LISTING MACMAFION Project Name Civil Contracts Dampier Port Upgrade Nanutatra Bridge Sawyers Valley Burnett River Dam Alliance (42.5%} Package A JV (25%) Tonkin Highway JV (50%) Goldfields/Esperance TNC Undorground Contracts Peak Leinster Mt isa Cannington Daisy Milano Olympic Dam State Co
Slide 23: Contracts Listing
CONTRACTS LISTING Q MACMAFION Open Cut Contracts Phosphate Hilt QLD Phosphate Mining, tailings dams, rail load out. WMC Fertilisers 2003 Eaglefield QLD Coal 1Mtpa open cut coal mine. Peabody 2003 Carosue WA — Gold Piant and labour hire Sons of Gwalia 2007 Argyle WA Diamonds Construction of tailing d