Macmahon Holdings Limited · ASX:MAH
Macmahon — FY2016 Earnings Presentation
18 slides from Macmahon's earnings presentation, Aug 22, 2016
Slide 1: Full Year Results
For personal use only FULL YEAR RESULTS 22 AUGUST 2016
Slide 2: Overview
Overview For personal use only Revenue for FY16 of $347.4 million Consolidated full year profit after tax of $1.7 million EBITDA of $39.1 million Operating cash flow from operations of $9.1 million Net cash position at year end of $56.5 million Healthy balance sheet underpinned by qualit
Slide 3: Demonstrating resilience through the cycle
Demonstrating resilience through the cycle For personal use only Solid base load of work – underpinning the Company Majority of projects are low cost, long life assets Strong existing client relationships Ongoing business transformation - continued focus on cost reduction, productivity and p
Slide 4: Contract Awards and Extensions
Contract Awards and Extensions Australia: For personal use only – St Ives Gold Mine • Initial 6 month contract awarded by St Ives Gold Mining Company Pty Ltd in Nov 2015 – has since been extended by a further 2 years. • Scope includes providing plant and personnel for large scale open cut mining o
Slide 5: Operational Performance
Operational Performance Surface For personal use only – Tropicana operations performed well – discussions underway regarding significant increase in volumes. – St Ives operations performing well - 24 month extension secured. – Telfer operations underperformed - see slide 6 Underground – Undergro
Slide 6: Operational Performance
Operational Performance Telfer For personal use only – Telfer operations incurred a loss since commencement in Feb 2016 – Performance impacted primarily by start-up costs, complicated site conditions and additional maintenance rectification costs for client supplied equipment – Losses expected to
Slide 7: People and Safety
For personal use only PEOPLE AND SAFETY
Slide 8: People
People For personal use only Group Employee Numbers Employees by division Surface 4,791 Corporate 3,495 International 2,467 1,295 1,529 Underground 2012 2013 2014 2015 2016 FY16 key activities: Increased support for line managers in the areas of people management and engagement Streamlining syst
Slide 9: Safety
Safety FY16 Performance: For personal use only KEY MILESTONES 9.9 9.9 8.5 • The lowest TRIFR in the last five (per million hours worked) years * 5.4 Frequency rate 4.1 • Successful start-up of three major 1.2 1.1 0.9 1.1 1.1 projects without a lost time injury • Kanthan operating 11 years LTI free 2
Slide 10: Financial Results
For personal use only FINANCIAL RESULTS
Slide 11: Income Statement
Income Statement For personal use only $m 2016 2015 Total revenue1 from continuing operations 347.4 660.2 EBITDA (from continuing operations)2 39.1 97.1 EBIT (from continuing operations)3 6.0 37.4 Asset write-downs and onerous lease provision (2.1) (233.8) Net finance costs (2.4) (23.7) Tax expense
Slide 12: Cash Flow
Cash Flow For personal use only $m 2016 2015 Operating cash flow EBITDA (consolidated)1 40.0 100.8 impacted by increase Net interest paid (1.0) (10.8) in working capital and reduction in Income taxes paid (2.8) (1.9) provisions, profit on Working capital and other items (27.1) (34.3) asset sales a
Slide 13: Balance Sheet
Balance Sheet $m 2016 2015 For personal use only Current assets 175.5 382.6 Non-current assets 124.6 141.7 Total assets 300.1 524.3 Net assets 207.4 221.8 Net cash 56.5 74.2 Gearing (27.2%) (33.5%) No debt Existing $30 million debt facility to be refinanced by Oct 2016 on improved terms Balanc
Slide 14: Strategy and Outlook
For personal use only STRATEGY AND OUTLOOK
Slide 15: Outlook
Outlook For personal use only Industry is showing signs of improvement - gold sector remains strong Competitive pressures still remain - particularly for mining services – but increase in opportunities Strong balance sheet - critical for contractors Tropicana volumes expected to expand – dis
Slide 16: MAH FY17 strategic priorities
MAH FY17 strategic priorities For personal use only Core objective is to secure and deliver work that is profitable and repeatable in order to deliver sustainable returns to shareholders. Currently investigating a range of options to: – broaden current capability through developing enhanced tech
Slide 17: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the business. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether circumstances actually occ
Slide 18: Thank you
Thank you For personal use only macmahon.com.au