Macmahon Holdings Limited · ASX:MAH
Macmahon — Merger or Acquisition (April 2024)
17 slides from Macmahon's merger presentation, Apr 16, 2024
Slide 1: Acquisition of Decmil Group (ASX:DCG)
Acquisition of Decmil Group (ASX:DCG) 16 April 2024
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer as to forward looking statements The forward looking statements in this presentation reflect views relation to the contents of this presentation. held only as at the date of this presentation. This presentation contains forward looking statements, including
Slide 3: Acquisition Strategic Rationale
Acquisition Strategic Rationale Accelerates expansion and diversification into civil infrastructure Macmahon to acquire 100% of Decmil, by way of Schemes of Arrangement • Decmil is an ASX listed, integrated provider of civil construction and infrastructure solutions across Australia • Acquisition re
Slide 4: Transaction Details
Transaction Details Unanimous support from Decmil’s Board of Directors and major shareholders Transaction Overview • Schemes of arrangement under which Macmahon will acquire 100% of the issued capital in Decmil (the ‘Transaction’) • Transaction to comprise separate schemes in relation to Decmil’s (i
Slide 5: Decmil is Highly Complementary to Macmahon
Decmil is Highly Complementary to Macmahon Established civil business to drive diversification and growth with lower capital intensity Surface Mining Underground Mining Civil Infrastructure • Tier 1 surface miner with full suite of services • Annual revenue circa $500 million, with 1H24 • Annual rev
Slide 6: Provides Exposure to Attractive Sectors
Provides Exposure to Attractive Sectors Decmil acquisition enhances through-the-cycle business resilience Infrastructure Pipeline Annualised Work Done ($ billion)1 80 • Decmil adds new exposure to both government infrastructure and renewable sectors which have favourable market conditions that enhan
Slide 7: Further Expanding into Lower Capital Intensity Services
Further Expanding into Lower Capital Intensity Services Adds scale and capability to existing civil offering to assist in execution of circa $10 billion combined civil pipeline Pro-Forma FY18 Revenue Mix 1H24 Revenue Mix 1H24 Revenue Mix 3% 7% 25% 18% TARGET $710 $966 8% $1.2 million 10% million bil
Slide 8: Disciplined Strategy Execution has Delivered Consistent Growth
Disciplined Strategy Execution has Delivered Consistent Growth Successful growth track record through both organic initiatives and acquisitions Macmahon’s M&A Track Record Total Revenue and Business Unit Contribution ($ million; %)1 Adds significant scale and capability to civil 2024 2,500.0 2,310 i
Slide 9: Decmil Snapshot
Decmil Snapshot Providing civil construction solutions across Australia for more than 40 years Business Overview Key Locations • Established in 1978 Resources Projects • ASX listed civil construction business providing design, engineering, construction Infrastructure Projects and maintenance enginee
Slide 10: Operations Stablised
Operations Stablised Decmil business reset, with new management and legacy problems resolved Legacy projects largely settled and commercial risk substantially reduced (including SCEE, Sunraysia and Munjina in 2022 & 2023) Have installed strong and experienced tier 1 senior management team in the las
Slide 11: Summary of Key Projects
Summary of Key Projects CONTRACT PERCENTAGE EXPECTED CLIENT PROJECT LOCATION SECTOR SIZE COMPLETED COMPLETION Covalent Kwinana NPI WA Resources <$25 million 100% Complete Port Hedland Community Centre WA Infrastructure <$25 million 100% Complete Karratha Senior High School WA Infrastructure $25-50 m
Slide 12: Order Book and Tender Pipeline
Order Book and Tender Pipeline Circa $450m of work in hand extending to FY27, with emphasis on larger and higher quality work Tenders Submitted Work in Hand1 Size Mix 11% 26% Circa 45% 45% 2021 2023 $450 million 55% 43% 74% Resources Infrastructure Renewables Project Bids >$50 million Project Bids <
Slide 13: Homeground Overview
Homeground Overview Only large-scale worker accommodation village in Greater Gladstone Summary • 1,392 bed, fully serviced workforce accommodation village • Located 25km southwest of Gladstone, Queensland • Gladstone is the largest multi-industry port in Australia and the key energy hub for Australi
Slide 14: Combined Financials and Synergies
Combined Financials and Synergies Decmil has an improved earnings outlook. Transaction expected to deliver synergies Macmahon Decmil 2H FY24 Annualised Financials FY24 Guidance FY24 Guidance (Implied from Guidance) Revenue $1,800 million - $1,900 million $440 million - $480 million $450 million - $5
Slide 15: Summary
Summary Strategically aligned acquisition to accelerate earnings diversification Significantly enhances existing civil construction platform Creates leading integrated mining service and civil construction provider Access to attractive non-mining sectors, generating lower capital-intensive earnings
Slide 16: Next Steps and Indicative Timetable
Next Steps and Indicative Timetable Structured Scheme of Arrangement process Milestone Indicative Date Draft Scheme Booklet Submitted to ASIC 5 June 2024 First Court Hearing 26 June 2024 Dispatch of Scheme Booklet to Decmil Shareholders 3 July 2024 Scheme Meetings 7 August 2024 Second Court Hearing
Slide 17: Thank You
Mick Finnegan Ursula Lummis Donald James Thank You CEO & MD CFO CCO mfinnegan@macmahon.com.au ulummis@macmahon.com.au djames1@macmahon.com.au www.macmahon.com.au 17
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