Macmahon Holdings Limited · ASX:MAH

Macmahon — Macquarie Australia Conference 2012

25 slides from Macmahon's conference presentation, May 2, 2012

  1. Slide 1: Macquarie Australia Conference 2012

    For personal use only Macquarie Australia Conference 2012 Nick Bowen – Chief Executive Officer 2 May 2012

  2. Slide 2: Our Business

    Our Business  Founded in 1963 - listed on the ASX in 1983 For personal use only  International contract mining and construction company  Employs over 4,600 people  Revenue in excess of $1.8 billion  Order book in excess of $3.2 billion  Operations throughout Australia, New Zealand, Asia, Afric

  3. Slide 3: Map of Major Operations

    Map of Major Operations For personal use only 3

  4. Slide 4: Business Update: Operational Update

    Business Update For personal use only Operational Update  Strong order book of $3.2 billion  $2.5 billion new projects and extensions won YTD  Work commenced at Tavan Tolgoi, Hope Downs 4, Ichthys LNG and Darwin Marine Supply Base  Mobilisation at Tropicana  Solomon Rail Spur fully ramped-up 

  5. Slide 5: Tropicana Gold Project

    Tropicana Gold Project For personal use only  Major mining equipment assembly commenced in Kalgoorlie  Mining infrastructure, including workshops on track to be completed in July  Mining scheduled to start September quarter 5

  6. Slide 6: Solomon Rail Spur Status

    Solomon Rail Spur Status For personal use only  Slow ramp-up and cyclones impacted completion date  Revised delivery schedule agreed with client  720 people and 250 major pieces of plant now mobilised to site  Current production on target to meet modified completion dates 6

  7. Slide 7: Tavan Tolgoi Project Update

    Tavan Tolgoi Project Update For personal use only  Commenced in January 2012  On target to deliver 3Mt of coal in Year 1  New equipment delivery underway  Expat team mobilised  Estimated mine life @20Mtpa: 50 years 7

  8. Slide 8: Tavan Tolgoi Project Update

    Tavan Tolgoi Project Update For personal use only  Project ramp-up to 15 - 20Mtpa dependent on client infrastructure delivery  Key infrastructure components  Road from Tavan Tolgoi to Chinese border  Railroad from Tavan Tolgoi to Chinese border  East Tsankhi coal wash plant  Water Supply  Pow

  9. Slide 9: Tavan Tolgoi Contract Update

    Tavan Tolgoi Contract Update For personal use only  Mining Services Contract novated 100% to Macmahon  Financing update  Stage 1: Initial financing will be funded on balance sheet under current domestic syndicated facility  Stage 2: Standalone, non-recourse funding facility being arranged. Fundi

  10. Slide 10: Contract Wins Since December

    Contract Wins Since 31 December For personal use only Key Wins  Ichthys LNG Project, INPEX and Total, $340 million  Darwin Marine Supply Base, NT Government, $100 million  Ranger 3 Deeps Exploration Decline Project, Energy Resources of Australia Ltd, $50 million  Bega Bypass, NSW Roads and Marit

  11. Slide 11: Darwin Marine Supply Base

    Darwin Marine Supply Base For personal use only  Awarded $100 million contract to design and construct the world-class Darwin Marine Supply Base  ShoreASCO Consortium – which includes Asco Holdings and Macmahon Contractors  Work includes building the special purpose wharf and dockside infrastruct

  12. Slide 12: Ichthys LNG Project

    Ichthys LNG Project For personal use only  Awarded $340 million contract for the Ichthys onshore LNG facilities near Darwin  Ichthys LNG Project is a JV between INPEX and Total  50:50 JV with John Holland  Site development civil works including access roads, earthworks, drainage and ground impro

  13. Slide 13: Revenue Growth

    Revenue Growth  Strong order book at $3.2 billion For personal use only  $1.2 billion of revenue secured for FY13  Tendering pipeline of approximately $2 billion Order Book Projects Under Tender 13

  14. Slide 14: Strategy

    Strategy For personal use only Key Focus Areas Shareholders Deliver sustainable, sector leading returns  Managing risks to deliver sustainable profits  20% 20% Return on Equity Dividendy.o.y EPS growth Mining  payout ratio 50% Construction Consolidate and explore Enhance pipeline and risk manage

  15. Slide 15: Growth Opportunities

    Growth Opportunities For personal use only Coal LNG, ports, roads Coal, roads, rail Gold, base metals Iron ore, roads, rail, ports Roads, rail Copper, roads, rail 15

  16. Slide 16: Market Conditions - Mining

    Market Conditions - Mining For personal use only Iron ore outlook to continue to be powered by China (with supply issues elsewhere to benefit Aus exports)  Level of domestic growth beyond FY15 uncertain  Demand from Asia strong – prices for key commodities remain elevated and should lead to Source

  17. Slide 17: Market Conditions - Construction

    Market Conditions - Construction For personal use only Fixed capital investment in Australian mining  Domestic growth beyond FY15 expected to 70 slow 60 50  Current pipeline of resource and public 40 (A$m) infrastructure projects robust 30 20  Rail infrastructure activity to remain strong 10 with

  18. Slide 18: International Outlook

    International Outlook For personal use only Mongolia  Mongolian metallurgical export coal set to grow Chinese demand for metallurgical coal  Large market from increased demand from China  Investment in infrastructure required to meet export demand Indonesia  Thermal coal trade to grow strongly l

  19. Slide 19: Outlook

    Outlook For personal use only Mining Outlook  Strong current order book  Domestic tendering activity remains robust. Anticipate ongoing domestic growth  Substantial overseas opportunities in coal and base metals  Increasing returns through improving equipment utilisation and cost efficiencies Co

  20. Slide 20: Business Update

    Business Update For personal use only Financial  On-track for FY12 profit in the range of $55 – $60 million  Record revenue of $1.8 billion for FY12  $1.2 billion revenue secured for FY13  Domestic funding secured and standalone non-recourse financing for Mongolia in progress Focus for the year

  21. Slide 21: Investment Case

    Investment Case For personal use only  Attractive contract mix, commodity and geographic diversification  Strong forward order book and tendering pipeline  Blue-chip client base and repeat business  Excellent industry fundamentals  Strong safety record/credentials  Outstanding Industrial Relat

  22. Slide 22: For personal use only

    For personal use only

  23. Slide 23: Order Book Diversity

    Order Book Diversity For personal use only Diversified client base Diversified commodity exposure Diversified geographic footprint Diversified contract styles 23

  24. Slide 24: Key Clients

    For personal use only Key Clients

  25. Slide 25: Disclaimer and Important Notice

    Disclaimer and Important Notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the mining and construction businesses. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether

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