Macmahon Holdings Limited · ASX:MAH
Macmahon — Macquarie WA Forum 2018
22 slides from Macmahon's conference presentation, Oct 17, 2018
Slide 1: Macquarie WA Forum October 2018
MACQUARIE WA FORUM OCTOBER 2018
Slide 2: 2018 Highlights
2018 HIGHLIGHTS Significant turnaround in financial performance • FY18 Revenue of $710.3m, up 98% on FY17 • FY18 EBIT1 of $41.2m (in-line with guidance), vs EBIT loss in FY17 • FY18 EBITDA1 of $118.9m, up 274% on FY17 • FY18 NPAT of $31.3m and basic EPS of 1.53cps from continuing operations • FY18
Slide 3: Financial Performance
FINANCIAL PERFORMANCE Macquarie Western Australia Forum 2018 3
Slide 4: Key Contracts
KEY CONTRACTS Project / Location Commodity / Comments Client Type • Alliance life-of-mine contract Tropicana WA Gold • Achieved reduction in unit cost by ~37% from 2015 AngloGold Ashanti / Australia Open-pit • Phase 1 of Long Island expansion approved in Dec 17 Independence Group • Strong relationsh
Slide 5: Record Order Book ~$5.4 Billion
RECORD ORDER BOOK ~$5.4 BILLION • In addition to Batu Hijau, new work and extensions of ~$1.1bn secured over FY18; bidding discipline maintained • Record order book at 30 June 2018 with work in hand of ~$5.4bn, up 9% on FY17 • Provides solid platform • Current revenue run rate at $1bn Macquarie West
Slide 6: Healthy Tender Pipeline $7 Billion+
HEALTHY TENDER PIPELINE $7 BILLION+ • 18 opportunities worth $7bn+, split evenly between Australia and Southeast Asia • Organic tender pipeline $5bn+ (70%) sits with current clients • New client tender pipeline $2bn+ • Split between gold, base metals and coal Macquarie Western Australia Forum 2018 6
Slide 7: Potential Revenue Growth
POTENTIAL REVENUE GROWTH • Note: the figures in this graph are indicative only and should not be treated as guidance Macquarie Western Australia Forum 2018 7
Slide 8: FY19 Outlook & Strategy
FY19 OUTLOOK & STRATEGY Positive outlook supported by: Record order book of $5.4bn FY19 work in hand of $1bn Significant $7bn+ tender pipeline Robust balance sheet Greater scale, diversity and improving market conditions Earnings guidance for FY191 • Expected Revenue of $950m - $1,050m (at
Slide 9: Appendix
APPENDIX Macquarie Western Australia Forum 2018 9
Slide 10: Corporate Overview
CORPORATE OVERVIEW Capital Structure Share Price Share price (15 October 2018) $0.25 Fully paid ordinary shares (m) 2155 Market Capitalisation $538.8m Cash (30 June 2018) $109.6m Debt (30 June 2018) $106.2m Enterprise Value $535.4m Directors and Senior Management Jim Walker Non-executive Chairman Vy
Slide 11: FY18 Revenue Breakdown
FY18 REVENUE BREAKDOWN Macquarie Western Australia Forum 2018 11
Slide 12: Income – Strong 2H
INCOME – STRONG 2H $ Millions FY17 1H18 2H18 FY18 Change Sales revenue1 359.6 270.0 440.3 710.3 +98% 2 EBITDA 31.8 46.1 72.8 118.9 +274% EBITDA margin 8.8% 17.1% 16.5% 16.7% +789bps EBIT2 (1.7) 9.9 31.3 41.2 +$42.9m EBIT margin (0.5%) 3.7% 7.1% 5.8% +626bps Net finance costs (0.1) (0.7) (1.7) (2.4)
Slide 13: Cash Flow – Significant Growth
CASH FLOW – SIGNIFICANT GROWTH $ Millions FY17 1H18 2H18 FY18 EBITDA 31.8 46.1 72.8 118.9 Interest and tax (0.1) 9.4 (5.5) 3.9 Working capital and other (1.5) (32.7) 15.7 (17.0) Net operating cash flow 30.2 22.8 83.0 105.8 Proceeds from sale of assets 12.6 0.6 2.5 3.1 Capital expenditure (cash) (34.
Slide 14: Balance Sheet – Net Cash
BALANCE SHEET – NET CASH $ Millions FY17 1H18 FY18 Cash 62.9 70.2 109.6 Receivables 53.4 120.3 152.3 Inventories 32.1 31.8 42.0 Property, plant and equipment 122.7 310.8 380.1 Other assets 23.9 24.5 39.3 Total assets 295.0 557.6 723.3 Payables 74.0 112.1 175.0 Borrowings 8.8 42.3 106.3 Other liabili
Slide 15: Reconciliation of Non-IFRS Financial Information
RECONCILIATION OF NON-IFRS FINANCIAL INFORMATION $ Millions 2017 2018 Profit / (loss) for the year (as reported) (22.8) 33.2 Add back: Loss from discontinued operations (net of tax) 17.3 Less: Profit from discontinued operations (net of tax) (1.9) Net profit / (loss) after tax from continuing operat
Slide 16: Our Services
OUR SERVICES • Mine development Mining infrastructure • Mine planning & analysis • Service and maintain • Mine production • Overburden stripping • Mine management equipment • Raise drilling • Bulk earthworks • Drill and blast • Rebuild components and • Cablebolting • Road design & construction • Bul
Slide 17: Map of Operations
MAP OF OPERATIONS Macquarie Western Australia Forum 2018 17
Slide 18: Indonesia
INDONESIA Ranked 11 out of 89 countries on Governance GDP current - Large growing economy 100 8th - Australia US $bn 90 1000 80 11th - Indonesia 800 70 60 600 50 40 400 30 20 200 10 0 0 1975 1989 2003 2017 Source: Natural Resource Governance Institute 2017 RGI Source: World Bank • Indonesia has a lo
Slide 19: Batu Hijau
BATU HIJAU AMNT • AMNT is an Indonesian mining company that acquired 82.2% of Batu Hijau mine from Newmont and Sumitomo in November 2016 • Supportive shareholder and two board representatives SUMBAWA ISLAND Batu Hijau Elang Rinti Nangka • Open pit, copper-gold porphyry located on Sumbawa Island, Ind
Slide 20: Batu Hijau
BATU HIJAU Life-of-mine Alliance Style contract • Approved by shareholders in July 2017 and commenced in August 2017 • Cost reimbursable with a management fee and gain/pain share mechanism subject to cost and production targets • US$2.9 billion expected revenue for Macmahon over 14 year life-of-mine
Slide 21: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer as to forward looking statements The directors of Macmahon consider that they performance. Non – IFRS measures have not have used reasonable care in preparing forward been subject to audit or review. This presentation contains forward looking looking financ
Slide 22: Thank You
THANK YOU For further information contact: Chris Chong Investor Relations and Corporate Development cchong@macmahon.com.au Mick Finnegan CEO mfinnegan@macmahon.com.au Giles Everist CFO geverist@macmahon.om.au www.macmahon.com.au Insert pic Macquarie Western Australia Forum 2018 22