Macmahon Holdings Limited · ASX:MAH
Macmahon — H1 FY2022 Earnings Presentation
30 slides from Macmahon's earnings presentation, Feb 22, 2022
Slide 1: Half Year Results FY22
Half Year Results FY22
Slide 2: Financial Highlights
Financial Highlights Revenue Underlying EBITDA1 Underlying EBIT(A)1 FY22 Secured Revenue5 $809.7m p 24% $138.7m p 14% $46.9m p 1% $1.6bn 17.1% margin 5.8% margin Underlying NPAT1 Underlying operating cash flow2 Interim Dividend FY22 Revenue Guidance6 $31.7m p 4% $96.6m u 0.30 cps u $1.6bn – $1.7bn S
Slide 3: 1H22 Key Developments / FY22 Outlook
1H22 Key Developments / FY22 Outlook Financials Surface Mining Underground Mining Mining Support Outlook Services • Increased revenue and underlying • Contract extensions: • Contract extensions: Secured and expanded mining support • FY22 Guidance: EBITDA services including: – Secured revenue $1.6bn
Slide 4: People and Safety
People and Safety Safety continues to be our number one business priority SAFETY Injury Frequency Rates and Workforce • TRIFR improved, ongoing actions including focus on safety culture 7,040 7,059 7,069 7,319 • LTIFR remains low and below industry benchmarks 6,284 COVID-19 6.04 • Remains challengin
Slide 5: People Resourcing in Australia
People Resourcing in Australia 5 new projects commenced PROJECT PROJECT King of the Hills King of the Hills Western Australia (Surface) Western Australia (Underground) PROJECT PROJECT Today Foxleigh Dawson South PEOPLE IN PLACE FOR COMMENCEMENT PEOPLE IN PLACE FOR COMMENCEMENT Queensland Queensland
Slide 6: Key Projects
Key Projects Diversified client portfolio and strong alliances CLIENT END (UNLESS EST. MINE COST CLIENT PROJECT COMMODITY SINCE EXTENDED) END DATE1 CURVE1 Tropicana, WA Gold 2012 2027 2031 Telfer, WA Gold 2016 Sep 2024 2024 Mount Morgans, WA Gold 2017 Nov 2022 2027 Byerwen, QLD Met Coal 2017 Oct 202
Slide 7: Batu Hijau Project
Batu Hijau Project Long term sustainable earnings at world class copper-gold asset Long term sustainable earnings under life of mine contract • Macmahon has life of mine alliance contract for Batu Hijau About AMNT • Second largest copper-gold mine in Indonesia (behind Grasberg) • Batu Hijau is owned
Slide 8: Sustainability
Sustainability Focused on improving disclosure and performance ESG Standalone New Sustainability Policy Sustainability Report Published in August 2021 Safety, Health Strong Minds, Strong Mines Grow Our Own People and Wellbeing WAAMH Award, wellbeing 563 on programs (graduates, program rollout across
Slide 9: HY22 Results
HY22 Results
Slide 10: Financial Performance
Financial Performance Revenue ($m) Underlying EBIT(A) ($m) 810 60 750 687 694 698 47.5 48.7 653 50 46.5 46.9 44.1 542 561 39.9 40 35.2 500 30 20 250 10 1H19 2H19 1H20 2H20 1H21 2H21 1H22 1H19 2H19 1H20 2H20 1H21 2H21 1H22 Underlying EBITDA ($m) Underlying EBIT(A) Margin 139 8% 7.4% 129 6.9% 7.1% 7.0
Slide 11: On track to deliver expected earnings
On track to deliver expected earnings Updated Guidance 1,600 – 1,700 Revenue ($m) Underlying EBIT(A) ($m) Guidance unchanged 95 – 105 Guidance Guidance Guidance Guidance 1H22 Guidance Guidance Guidance Guidance 620-680 950–1,050 1,300–1,400 1,300–1,400 810 40-50 70-80 85-95 90-100 1H22 47 710 1,103
Slide 12: Profit and Loss
Profit and Loss Restated • Revenue increased by 24% $ Millions 1H21 1H22 Change ‒ Organic growth primarily driven by the commencement of new projects (Foxleigh, Revenue 652.5 809.7 p 24% Gwalia, Dawson South and Civil West) EBITDA1 121.2 138.7 p 14% ‒ Higher costs on projects related to COVID, recov
Slide 13: 1H22 Revenue Diversification
1H22 Revenue Diversification Commodity Clients 5% AngloGold Gold 2%5% 17% AMNT 4% 20% QCoal 7% Copper / Gold Silver Lake 3% Met Coal Newcrest 14% Dacian Gold 54% 12% Other Anglo America Other 21% Red 5 Limited 4% 10% St Barbara 5% 9% 8% QMetco Calidus Agincourt Country Activity 6% Surface Australia
Slide 14: Cash Flow – Net Debt Waterfall
Cash Flow – Net Debt Waterfall Underlying Operating Cash Flow $96.6m (42.1) • Underlying operating cash flow of $96.6m, consistent with 1H21. (19.3) (2.9) (152.7) • EBITDA cash conversion 70%, reflects (130.3) 138.7 increased working capital for start ups and inventory build up to proactively manage
Slide 15: Balance Sheet
Balance Sheet Solid financial position Restated $ Millions FY21 1H22 • Balance sheet and liquidity position strong whilst in high growth phase: Cash 182 161 ‒ Net Debt / EBITDA of 0.87x remains below target range of 1x Receivables 253 302 ‒ Gearing 31.1%, increased due to new project capex, addition
Slide 16: Strategy and Outlook
| | MACMAHON Strategy and Outlc
Slide 17: Strategic Overview
Strategic Overview Building a diversified scalable business Improve Invest Diversify Expand Margins and execution Relevance and competitive advantage Build scalability Growth in current markets • Systems and processes • Advanced contractor • Mining Support Services • Additional services with existin
Slide 18: Diversify and expand
Diversify and expand Focused on growing adjacent services to deliver higher returns 3% 6% 22% 24% FY211 1H22 Target 70% 75% EBITDA EBIT(A) ROACE EBITDA EBIT(A) ROACE EBITDA EBIT(A) ROACE Margin Margin Margin Margin Margin Margin 18.5% 7.0% 15.6% 17.1% 5.8% 12.9% p 20% p 8% p 15% Surface Underground
Slide 19: Order Book $5.2bn & Tender Pipeline $8.7bn
Order Book $5.2bn & Tender Pipeline $8.7bn Significant contract awards bolster order book and provides a high level of secured revenue $5.2bn – Order Book Tender Pipeline • $1.6bn of FY22 revenue secured Orderbook Run off • $5.2bn order book1 secured – represents 3.8 x $1,800 21% FY21 revenue $1,600
Slide 20: Priorities and Outlook
Priorities and Outlook FY22 set for continued growth FY22 PRIORITIES FY22 GUIDANCE1 • Continue to improve safety performance Revenue EBIT(A) • Effectively manage COVID-19 • Complete project ramp ups and monitor project performance and $1.6 – $1.7bn $95 – $105m cost escalations to deliver expected EB
Slide 21: Thank You
Thank You CONTACT Mick Finnegan CEO & MD mfinnegan@macmahon.com.au Ursula Lummis CFO ulummis@macmahon.com.au Donald James CCO djames1@macmahon.com.au www.macmahon.com.au 21 31 December 2021 Half Year Results
Slide 22: Appendix
Appendix
Slide 23: Corporate Overview
Corporate Overview Capital Structure Share Price ($) – 3 years Share Price1 (ASX:MAH) $0.165 0.30 Fully paid ordinary shares (m) 2,155 0.28 Market Capitalisation $366.3m 0.26 Cash (31 Dec 21) $161.2m 0.24 Debt (31 Dec 21) $403.7m 0.22 Enterprise Value $608.8m 0.20 Net Tangible Assets per share (31 D
Slide 24: Corporate Overview - Directors
Corporate Overview - Directors MICHAEL FINNEGAN BRUCE MUNRO ALEX RAMLIE Managing Director Independent, Non-Executive Director Non-Independent, Non-Executive Director and Chief Executive Officer EVA SKIRA ARIEF SIDARTO HAMISH TYRWHITT DENISE McCOMISH Independent Non-Executive Chair Non-Independent, N
Slide 25: Map of Operations
Map of Operations 25 31 December 2021 Half Year Results
Slide 26: COVID-19
COVID-19 PROTECTING OUR PEOPLE, COMMUNITY AND CLIENTS • Actively working with CME and clients to adapt as needed • PCR and Rapid Antigen Testing completed in line with project and jurisdictional requirements • Health screening and physical distancing protocols • Ongoing support for workers through e
Slide 27: ESG Materiality Assessment
ESG Materiality Assessment 16 MATERIAL TOPICS 27 31 December 2021 Half Year Results
Slide 28: Cash Flow
Cash Flow $ Millions 1H21 Previously Restated1 Stated 1H21 1H22 Underlying EBITDA 121.2 121.2 138.7 Movement in receivables (12.2) (12.2) (56.8) Movement in inventory (1.3) (1.3) (15.8) Movement in payables and provisions (11.0) (11.0) 30.5 Cash payments for SaaS arrangements - (1.6) (2.9) Net Inter
Slide 29: Reconciliation of Non-IFRS Financial Information
Reconciliation of Non-IFRS Financial Information $ Millions 1H21 1H22 Profit for the year (as reported) 43.1 3.3 Add back: • Share Based Payment expense 0.2 (0.4) • M&A costs and earn-out related to previous acquisitions 3.1 22.3 • GBF & PT MMS customer amortisation (A) 0.2 3.6 • SaaS write-off 1.6
Slide 30: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer as to forward looking statements The forward looking statements in this presentation reflect views Non-IFRS Financial Information held only as at the date of this presentation. This presentation uses non-IFRS financial information including This presentatio