Macmahon Holdings Limited · ASX:MAH
Macmahon — H1 2005 Earnings Presentation
15 slides from Macmahon's earnings presentation, Feb 18, 2005
Slide 1: 2005 Half Year Financial Results & Update
2005 HALF YEAR FINANCIAL RESULTS & UPDATE 18 February 2005 1
Slide 2: Highlights
HIGHLIGHTS ¾ Strong first half year result ACTUAL ¾ Revenue up 58% to $228 million ¾ EBITDA up 64% to $27.8 million ¾ Profit up 127% to $7.6 million ¾ EBIT Margin 4.2% ¾ Order Book $720 million ¾Positive outlook for mining and civil infrastructure 2
Slide 3: Revenue / Profit
REVENUE / PROFIT Half Year End Dec 04 Jun 04 Dec 03 ¾ Total Revenue $288 $252.1 $182 ¾ EBITDA $27.8 $24.9 $16.9 ¾ EBIT $12.1 $11.8 $6.9 ¾ EBIT Margin 4.2% 4.7% 3.8% ¾ PAT $7.6 $8.2 $3.4 ¾ EPS 2.0c 2.1c 1.4c 3
Slide 4: Balance Sheet
BALANCE SHEET Half Year End Dec 04 Jun 04 Dec 03 ¾ Cashflow from Operations $21.3 $30.8 $20.5 ¾ Capital Expenditure $33.1 $36.9 $20.6 ¾ Nett Debt $64.7 $51.5 $68.2 ¾ Cash at Bank (overdraft) $35.4 $32.9 -$1.9 ¾ Debt/Equity Ratio 61.2% 51.8% 110.7% ¾ Net Interest Cover 3.9 3.1 2.0 4
Slide 5: Market
MARKET MARKET CAPITALISATION $250 $205 $200 $181 $m $150 ¾ Share price doubled from 27c at 30 June 2004 to 54c at 31 January 2005 $101 $100 $72 $50 $39 $0 Jun-02 Jun-03 Jun-04 Dec-04 Jan-05 5
Slide 6: People / Safety
PEOPLE / SAFETY 45.0 41.8 40.0 38.5 ¾ Employee numbers increased by over 35.0 300 in 6 months to 2000 30.0 25.7 25.6 ¾ No permanent disabling injuries 25.0 22.1 20.0 ¾ LTIFR improved by 7% 15.0 10.0 6.1 ¾ TRIFR impacted by increase in minor 5.0 2.5 3.3 2.9 2.7 injuries 0.0 Jun-01 Jun-02 Jun-03 Jun-0
Slide 7: Order Book
ORDER BOOK 1000 880 900 ¾ Total of $424 million of new 800 contracts and extensions (July 2004 to 700 $ (millions) January 2005) 600 500 400 784 ¾ Order book at $880 million 720 300 488 200 341 ¾ $588 million of revenue already 100 secured for 2005 0 2002 2003 2004 Dec-04 Jan-05 Year 7
Slide 8: Civil
CIVIL 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% 7.5% 11.5% ¾ New work awarded by Rio Tinto Iron Ore (rail) and Alcan Gove (civil and concrete) ¾ 1st half profit contribution from joint ventures lower ($1.0 million compared to $6.3 mill
Slide 9: Open Cut
OPEN CUT 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% 5.4% 2.4% ¾ Revenue of $240 million expected for 2005 (2004: $197 million) ¾ Further improvement in EBIT margin reflecting positive impact of recent tendering ¾ Contract extensions in
Slide 10: Underground
UNDERGROUND 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% ¾ Revenue growth to $75 million in 2005 (2004: $53.7 million) ¾ Business Model appropriately shares risk/rewards ¾ Specialist cable bolting work providing additional growth ¾
Slide 11: Allplant
ALLPLANT 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% ¾ 3 business streams: - Large Earthmoving Plant Hire – 120 items in fleet - Maintenance Services – mechanical repairs for major plant - Labour Hire – maintenan
Slide 12: Freightlink - Alice Springs to Darwin Railway
FREIGHTLINK - ALICE SPRINGS TO DARWIN RAILWAY ¾ First year achieved 600,000 tonnes of freight and more than 80% of freight on the corridor converting from road to rail ¾ New business plan completed reflecting a more accurate understanding of future growth and new business ¾ Additional funding requir
Slide 13: Outlook - 2005
OUTLOOK - 2005 ¾ Positive outlook in civil construction and mining ¾ Increased requirements from existing clients in all divisions ¾ Significant revenue growth to $600 million (up from $434 million) ¾ High volume of new work available at targeted margins ¾ Targeted 5% EBIT margin unlikely to be achi
Slide 14: Strategy
STRATEGY ¾ Continue with four business units which provide broad exposure to civil and mining sectors ¾ Target growth in areas delivering best returns (Target 6% EBIT margin) ¾ Seek opportunities arising from changes in competitor position ¾ Increased focus on risk management across all areas of the
Slide 15: Outlook 2006 Onwards
OUTLOOK 2006 ONWARDS ¾ Further revenue growth achievable ¾ Move to full tax accounting (30%) in 2006 ¾ Targeting to deliver 20% profit growth even after increased tax ¾ Positive outlook for several years ¾ Macmahon has an opportunity to position itself as a major publicly listed player in the civil