Slide 1: Full Year Results 2020
Full Year Results 2020
Slide 2: A Record Year – Financial Highlights
A Record Year – Financial Highlights FY20 Revenue FY20 Record underlying EBITDA1 FY20 Record underlying EBIT(A)1 $1,380.4m $238.7m $91.6m p 25% on FY19 p 32% on FY19 p 22% on FY19 FY20 Record reported NPAT FY20 Record operating cash flow2 Order Book $64.9m $218.4m $4.5bn p 41% on FY19 p 73% on FY19
Slide 3: FY20 Key Developments / FY21 Outlook
FY20 Key Developments / FY21 Outlook • Continued strong growth delivering record earnings, in line with guidance for third consecutive year • Minimal COVID-19 impact to productivity, supply chain and margins Financials • Strong financial position – gearing 10.9%, ND/EBITDA 0.3x, available liquidity
Slide 4: COVID-19
COVID-19 Protecting our People, Community and Clients • Communication and education • Health screening and physical distancing protocols • Sanitation and cleaning • Travel restrictions Ensuring Business Continuity Australia • Relocation of some interstate workers • Employee assistance programs • Men
Slide 5: People and Safety
People and Safety Injury Frequency Rates and Workforce1 7,059 5,572 5,050 3.77 2,227 2,171 0.12 FY16 FY17 FY18 FY19 FY20 TRIFR (Total Recordable Injury Frequency Rate) Contractors Employees LTIFR (Lost Time Injury Frequency Rate) • Record number of employees • Strong Minds, Strong Mines program cont
Slide 6: Key Projects
Key Projects Project Clients Location Commodity Type Batu Hijau Sumbawa, Indonesia Copper/Gold Surface Tropicana Surface WA, Australia Gold Boston Shaker Underground Byerwen QLD, Australia Coking coal Surface Telfer WA, Australia Gold Surface Mount Morgans WA, Australia Gold Surface Mount Monger WA,
Slide 7: FY20 Results
MACMAHON a BER CU ieee as FY20 Results
Slide 8: Strong Growth in Financial Performance
Strong Growth in Financial Performance Revenue ($m) Underlying EBIT(A) ($m) 1,380 1,400 100 92 p25% p22% 1,200 1,103 80 75 1,000 60 800 710 42 40 600 360 20 400 -2 200 -20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Underlying EBITDA ($m) Underlying EBIT(A) Margin 250 p32% 239 8% q0.2% ppt 6.8% 6.6% 7%
Slide 9: Track record of delivering on guidance
Track record of delivering on guidance Revenue ($m) 1,500 1,380 Guidance 1,300 1,300–1,400 1,103 1,100 Guidance 950–1,050 900 710 700 Guidance 620–680 500 360 300 100 -100 FY17 FY18 FY19 FY20 Underlying EBIT(A) ($m) 92 Record EBIT(A) 100 Guidance 75 85–95 80 Guidance 70–80 60 Guidance 42 40 40–50 20
Slide 10: Profit and Loss
Profit and Loss $ Millions FY19 1H20 2H20 FY20 Change Revenue 1,103.0 686.7 693.7 1,380.4 p 25% • Another strong result that again delivered on guidance: EBITDA1 181.4 114.0 124.7 238.7 p 32% • FY20 revenue of $1,380.4m up 25% EBITDA margin 16.4% 16.6% 18.0% 17.3% • Record earnings, including: EBIT(
Slide 11: FY20 Revenue Diversification
FY20 Revenue Diversification Commodity Clients AMNT 8% 3% 15% 8% AngloGold Gold 32% Newcrest 4% Copper / Gold Silver Lake 49% 8% Coking Coal Q Coal Other 35% Dacian 9% BHP 18% 11% Other Country 2% Activity 6% 19% 33% Surface Australia Underground Indonesia Civil and rehabilitation Other 65% 75% MACM
Slide 12: Cash Flow – Net Debt waterfall
Cash Flow – Net Debt waterfall -20.3 -23.5 -1.3 -141.6 238.7 -21.2 2.3 -30.2 -52.7 -60.9 -15.7 -16.7 27.4 Operating Cash Flow $218.4m GBF Acquisition EV$49.1m -6.1 Net Operating Cash Flow $193.6m Net debt at 30 EBITDA Working Interest M&A costs CAPEX GBF GBF cash GBF Dividends AASB 16 Software Other
Slide 13: Balance Sheet
Balance Sheet $ Millions FY19 1H20 FY20 Cash 113.2 114.2 141.8 • Strong balance sheet and liquidity position Receivables 181.5 235.4 202.6 ‒ Gearing 10.9% Inventories 45.8 55.8 57.3 ‒ Net Debt / EBITDA of 0.3x Property, plant and equipment 399.6 487.2 457.0 ‒ Cash and unutilised debt facilities of $
Slide 14: Capital Allocation Policy & FY20 Dividend
Capital Allocation Policy & FY20 Dividend New policy adopted to balance growth and cash returns to shareholders Objectives 1. Maintain financial strength 2. Invest in growth 3. Return cash to shareholders 1. Maintain strong balance sheet 2. Ensure appropriate liquidity and gearing with regard to rev
Slide 15: Strategy and Outlook
Strategy and Outlook 15
Slide 16: Strategy
Strategy Mining Value Chain Develop Open-Cut Underground Rehab (civil (operations (operations (operations /engineering) /engineering) /engineering) /engineering) Explore Evaluate Process Key Strategic Focus Execution and People Safety Relationships Technology and Culture New Work Diversification ___
Slide 17: Order book $4.5 billion
Order book $4.5 billion Work in Hand ($m)1,2 3 year Work in Hand by Commodity 2% Guidance 1,400 to 1,500 1,350 1,220 1,070 19% 815 Gold Copper / Gold 50% Coking Coal Other 29% FY21 FY22 FY23 FY24+ • Solid and high quality medium term earnings visibility with a number of mining contracts expected to
Slide 18: Tender Pipeline
Tender Pipeline Near Term Medium Term Long Term Exclusive / Batu Hijau Tropicana expansion Preferred Tender Pre Tender Bubbles represent = $200m New Client Current Client contract value • Well positioned to capitalise on additional growth opportunities • Over 20 tender opportunities worth $7.5bn+, m
Slide 19: FY21 Priorities and Outlook
FY21 Priorities and Outlook FY21 priorities: Revenue Guidance • Build on strong safety culture $1.4–$1.5bn p8.7% • Continue effectively managing COVID-19 $1.38bn • Efficiently deliver FY21 current contracted work • Lock in additional contract expansions / new work • Enhance and diversify earnings by
Slide 20: Thank You
Thank You Contact Chris Chong Investor Relations and Corporate Development cchong@macmahon.com.au Mick Finnegan CEO & MD mfinnegan@macmahon.com.au Mount Monger, WA (Silver Lake Resources) Giles Everist CFO geverist@macmahon.com.au www.macmahon.com.au Perth Head Office – Solar Panels MACMAHON – Full
Slide 21: Appendix
Batu Hijau, Indonesia (PT AMNT) Boston Shaker, WA (AngloGold Ashanti / IGO) Byerwen, Queensland (QCoal) Cancer 200: Ride for Research Appendix 21
Slide 22: Corporate Overview
Corporate Overview Capital Structure Share Price ($) – 3 years Share Price1 (ASX:MAH) $0.275 Fully paid ordinary shares (m) 2,155 0.35 Market Capitalisation $592.6m Cash (30 June 2020) $141.8m 0.30 Debt (30 June 2020) $202.7m Enterprise Value $653.5m 0.25 Net Tangible Assets per share $0.22 0.20 Dir
Slide 23: Map of Operations
Map of Operations MACMAHON – Full Year Results to 30 June 2020 23
Slide 24: Key Projects
Key Projects End Global (Unless Cost Project Clients Location Commodity Type Comments Start extended) Curve1 • Alliance life-of-mine contract • Investigating extension of the Batu Hijau pit and Batu Sumbawa development of large Elang deposit Aug Copper/Gold Surface 2031 Hijau Indonesia • Record prod
Slide 25: Key Projects
Key Projects End Global Project / (Unless Cost Division Clients Location Commodity Type Comments Start extended) Curve1 • GBF awarded $200m 3 year extension at the Mount WA April April Gold Underground Daisy Complex and Mount Belches Centre Monger Australia 2020 2023 (Maxwells, Cock-eyed Bob, Santa)
Slide 26: ESG – achievements and focus
ESG – achievements and focus Safety, Health and Wellbeing Environment Social & Community involvement Governance New role of GM, HSEQ – Safety improvement Medical supply donation: Health, Safety, Environment LTIFR – 0.12 (record low) Rehabilitation – Sponsor of CME DETECT The Perkins, SJOG Hospital,
Slide 27: Technology
Technology Digital Platform Smart Algorithms • AI • ERP GOAL: Identify inefficiencies in real-time – eliminate waste and increase production Robotic Process Automation Autonomous equipment Biometric identification, Robotic dispatch Artificial Intelligence to – integrate systems ▲ Productivity compet
Slide 28: Lease Accounting – minor impact
Lease Accounting – minor impact FY20 financial impact of new leasing standard – AASB 16 • AASB 16 provides a new lessee accounting model which requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months. Depreciation on the leased asset and interest on lea
Slide 29: Cash Flow
Cash Flow $ Millions FY19 FY20 EBITDA 181.4 238.7 Movement in receivables (41.5) (4.7) Movement in inventory (3.8) (4.4) Movement in payables and provisions 0.1 (21.7) Other (9.6) 1.1 Net Interest and tax (paid) / received (25.8) (23.4) Class Action Settlement (7.6) - M&A costs (0.7) (1.3) Net opera
Slide 30: Reconciliation of Non-IFRS Financial Information
Reconciliation of Non-IFRS Financial Information $ Millions FY19 FY20 Profit for the year (as reported) 46.1 64.9 Add back: • Share Based Payment expense 2.6 2.6 • Class Action Settlement 7.3 - • M&A transaction costs 0.7 1.3 • GBF customer amortisation (A) - 0.3 Underlying Net profit after tax (NPA
Slide 31: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer as to forward looking statements as to the accuracy or likelihood or fulfilment of any The Guidance should not be regarded as a forward looking statement, or any events or results representation or warranty with respect to its This presentation contains for