Macmahon Holdings Limited · ASX:MAH
Macmahon — H1 FY2012 Earnings Presentation
28 slides from Macmahon's earnings presentation, Feb 21, 2012
Slide 1: Macmahon 2012 Half Year Results
For personal use only Macmahon 2012 Half Year Results 21 February 2012
Slide 2: Nick Bowen, Chief Executive Officer
For personal use only Nick Bowen Chief Executive Officer 2
Slide 3: Half Year Highlights
Half Year Highlights For personal use only Financial Profit after tax $23.2 million (up 27% on underlying) EPS 3.3 cents (up 32% on underlying) DPS 1.5 cents, fully franked $475 million financing facility secured Operational Record order book of $3.4 billion (up 63%) $2.2 billion new pro
Slide 4: Delivering Value
Delivering Value For personal use only Total Revenue Net Profit After Tax *Underlying NPAT 4
Slide 5: Return to Dividends
Return to Dividends For personal use only Earnings Per Share Dividend Per Share *Underlying EPS 5
Slide 6: Mining Overview
Mining Overview For personal use only $900 million Tropicana Gold Project win – now being mobilised Additional work with BHP Billiton Iron Ore and Peabody – typically owner miners Expansion overseas through US$250 million Tavan Tolgoi coal mine contract win in Mongolia Nigerian project win a
Slide 7: Construction Overview
Construction Overview For personal use only Risk management improvements and new organisation structure delivering value Order book significantly improved Margins steady but expected to improve in H2 MVM Rail acquisition Re-established major presence in the Pilbara with Rio Tinto and FMG
Slide 8: Project Wins
8 For personal use only Project Wins
Slide 9: Key Projects
Key Projects For personal use only These projects total over $1 billion per annum of work 9
Slide 10: Our People
Our People Group Employee Numbers For personal use only Breakdown by Business HY12 Management team strengthened Growing apprentice and graduate programs Registered Training Organisation (RTO) ROCKSTAR Indigenous program launched February 2012 10
Slide 11: Safety Performance
Safety Performance For personal use only Safety performance remains top quartile Next period of growth a challenge - continuous safety improvement a key priority Eaglefield Coal Mine - ranked as the “safest surface coal mine” in Queensland by the Department of Mines and Energy Injury Frequency
Slide 12: Theresa Mlikota, Chief Financial Officer
For personal use only Theresa Mlikota Chief Financial Officer 12
Slide 13: Income Statement
Income Statement For personal use only $ millions Dec-11 Dec-10 % Change Total revenue 829 .0 601.0 38% EBIT – before significant item 41.7 31.4 33% Interest (7.6) (5.8) 31% Profit before tax – before significant item 34.1 25.6 33% Significant item – write down of RGP5 Rail North contract - (48.9) P
Slide 14: Mining Performance
Mining Performance For personal use only $ millions Dec-11 Dec-10 Change % Segment revenue 423.2 313.2 35% PBT 32.0 22.4 43% Segment revenue increased 35% PBT margin % 7.6 7.2 Profit before tax increased 43% Order book 2,219 1,273 74% Capex 34.6 44.3 Surface revenue driven by expansion a
Slide 15: Construction Performance
Construction Performance $ millions Dec-11 Dec-10 Change % For personal use only Segment revenue 405.8 287.8 41% Underlying PBT 14.2 10.2 39% RGP5 write down - (48.9) Revenue growth of 41% driven by Reported PBT 14.2 (38.7) 137% the strong performance of key new Underlying PBT margin % 3.5 3
Slide 16: Strong Operating Cash Flow
Strong Operating Cash Flow For personal use only $ millions Dec-11 Dec-10 % Change Operating cash flow 85.3 38.2 123% Disposals 6.1 0.7 771% Capital expenditure1 46.3 45.3 2% Cash on hand 135.0 96.5 40% Op. cash flow per share - cents 11.6 5.2 1. Excludes capital acquired under finance lease and hir
Slide 17: Gearing for Growth
Gearing for Growth For personal use only $ millions Dec-11 Jun-11 % Change Current assets 374.7 331.6 13.0% Gearing Non-current assets 359.1 354.2 1.4% Total assets 733.8 685.7 7.0% Net assets 340.6 323.1 5.4% Net cash 78.8 39.5 99.5% Gearing (23.1%) (6.9%) 234.8% Strong financial base to fund gro
Slide 18: Funding Capacity
Funding Capacity For personal use only Funding Debt refinance complete - $475 million, Facilities 3 & 4 year funding facility - Tranche A – (3 years), A$75 million working capital cash advance facility - Tranche B – (3 years), A$125 million bank guarantee facility - Tranche C – (3 and 4 years), A$2
Slide 19: Improved Shareholder Returns
Improved Shareholder Returns For personal use only Return on Equity Target 20% Note – HY12 returns have been annualised *2011 Return on equity calculation based on underlying NPAT Increased ROE resulting from better asset utilisation and improved financial and operating performance Returns expec
Slide 20: Nick Bowen, Chief Executive Officer
For personal use only Nick Bowen Chief Executive Officer 20
Slide 21: Strategy
Strategy Grow the business to maximise profits to shareholders For personal use only 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 ex
Slide 22: Strategy Delivery
22 For personal use only Strategy Delivery
Slide 23: Record Order Book
Record Order Book Order book at record $3.4 billion For personal use only $903 million of revenue secured for H2 Robust tendering pipeline in excess of $3 billion Order Book Order Book Breakdown 23
Slide 24: Outlook
Outlook For personal use only Business Growth High tendering activity with healthy pipeline of work WA expected to be driver of growth New „Macmahon Engineering‟ Business International expansion into Mongolia Sustainable Profits Record order book of $3.4 billion $903 million secured for
Slide 25: For personal use only
For personal use only
Slide 26: Order Book Diversity
Order Book Diversity For personal use only Diversified client base Diversified commodity exposure Diversified geographic footprint Diversified contract styles 26
Slide 27: IFRS Reconciliation
IFRS Reconciliation For personal use only 6 months to 6 months to FY11 In millions of AUD, unless otherwise stated Dec 10 Jun 11 Reported revenue is adjusted to include net revenues from joint ventures: Reported Revenue 504.2 585.2 1,089.4 Revenue from joint ventures (net of cost recoveries) 96.8 68
Slide 28: 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