Macmahon Holdings Limited · ASX:MAH
Macmahon — Shareholder Meeting (November 2014)
41 slides from Macmahon's shareholder meeting presentation, Nov 7, 2014
Slide 1: Annual General Meeting 2014
For personal use only ANNUAL GENERAL MEETING 2014 7 November 2014
Slide 2: Chairman's Address
Chairman’s Address For personal use only Mr Jim Walker 2
Slide 3: Board of Directors
Board of Directors For personal use only Jim Walker Barry Cusack Ross Carroll Vyril Vella Giles Everist Eva Skira 3
Slide 4: Year in Review
Year in Review For personal use only Returned the company to profitability All remaining construction projects completed or sold Mining operations continuing to perform in line with expectations Positive turn-around from 2013 FY14 Net profit after tax of $30.4 million 4
Slide 5: Group Highlights
Group Highlights For personal use only Improved production and safety performance at Christmas Creek Increased material movement at Tropicana 2 year contract extension awarded at the Waihi Gold Mine in New Zealand 4 year raise drilling contract awarded at Olympic Dam in South Australia Ore
Slide 6: Strong Leadership
Strong Leadership For personal use only Sybrandt van Dyk appointed as Chief Financial Officer Roger Hughes appointed as Group General Manager of Human Resources David Todd appointed as Group General Manager of Health, Safety, Environment and Quality Ongoing Board renewal 6
Slide 7: Outlook
Outlook For personal use only Market conditions expected to remain challenging in 2015 Lack of new work available resulting in increased competition and margin pressure Strong focus internally on cost management and efficiencies Business improvement and productivity remain key drivers for th
Slide 8: Annual General Meeting 2014
For personal use only ANNUAL GENERAL MEETING 2014 7 November 2014
Slide 9: Chief Executive Officer's Address
Chief Executive Officer’s Address For personal use only Mr Ross Carroll 9
Slide 10: Navigating through the cycle
Navigating through the cycle For personal use only Encouraging turnaround in FY14 - net profit after tax of $30.4 million Current market sentiment, particularly for iron ore, coal and gold is subdued Conditions not expected to improve significantly in the near term Mongolia contract negotiat
Slide 11: A challenging market
A challenging market For personal use only Commodity price volatility placing increased pressure on miners Iron Ore prices fallen 40% in 2014 Thermal and coking coal prices fallen 20% in 2014 Copper prices fallen 10% in 2014 Gold prices have improved slightly - up 3% in 2014 11
Slide 12: Mongolia Update
Mongolia Update For personal use only Operations on site suspended Projected project revenue of $100million for FY15 now at risk Currently in negotiations with the client to resolve the issue and will pursue all avenues to recover our investment as per our contractual rights 12
Slide 13: Operations – Surface Mining
Operations – Surface Mining For personal use only Christmas Creek and Tropicana remain key projects Ongoing focus on productivity and safety performance on site Operations at Waihi are progressing well – 2 year extension awarded Eaglefield successfully completed in line with the scheduled en
Slide 14: Operations – Underground Mining
Operations – Underground Mining For personal use only Olympic Dam performing well - 4 year raise drilling contract awarded Big Rig commissioned at Olympic Dam – 1st shaft set to finish ahead of schedule with 2nd shaft to commence in Jan 2015 Discussions underway with ERA re next phase of Range
Slide 15: Operations - International
Operations - International For personal use only Operations in Malaysia and Indonesia continued to perform well Currently negotiating a contract extension at Kanthan Productivity improvements remain a key focus across Nigerian operations Mongolian operations currently suspended Opportuniti
Slide 16: Fundamentals are sound
Fundamentals are sound For personal use only Healthy balance sheet Lower capital expenditure New 3-year financing facility secured Order book in excess of $2 billion Long term contracts with blue-chip clients Solid tender pipeline Highly skilled workforce 16
Slide 17: Strategy
Strategy For personal use only Remain focused on pillars of success: • Safety • Business improvement • People • Business development Increased focus on international markets where we have an established presence Target QLD mine owners who are seeking further cost reductions 17
Slide 18: Guidance
Guidance For personal use only Revised forecast revenue for FY15 of $750m – $850m (down from $750m – $1b) Solid order book enables MAH to remained disciplined when bidding for new work Significant investment in business development in key markets 18
Slide 19: Summary
Summary For personal use only Significant headwinds facing the sector Business is well positioned to navigate through the economic cycle Strong management team in place Highly skilled workforce Long term contracts – blue chip clients 19
Slide 20: Annual General Meeting 2014
For personal use only ANNUAL GENERAL MEETING 2014 7 November 2014
Slide 21: Adoption of Remuneration Report
Resolution 1 For personal use only ADOPTION OF REMUNERATION REPORT “That for the purposes of section 250R(2) of the Corporations Act, the Remuneration Report (which forms part of the Directors' report for the year ended 30 June 2014) be adopted.” 21
Slide 22: Adoption of Remuneration Report – Proxy Results
Resolution 1 – Proxy Results For personal use only ADOPTION OF REMUNERATION REPORT For 570,965,731 Against 34,799,896 Abstain 1,168,564 At the Proxies Discretion 11,898,80 Total Proxy votes = 618,832,997 22
Slide 23: Adoption of Remuneration Report
Resolution 1 For personal use only ADOPTION OF REMUNERATION REPORT “That for the purposes of section 250R(2) of the Corporations Act, the Remuneration Report (which forms part of the Directors' report for the year ended 30 June 2014) be adopted.” 23
Slide 24: Re-election of Barry Lionel Cusack as a Director
Resolution 2 For personal use only RE-ELECTION OF BARRY LIONEL CUSACK AS A DIRECTOR “To re-elect Mr Barry Cusack, who retires from the office of Director by rotation in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers himself for re-election.” 24
Slide 25: Re-election of Barry Cusack – Proxy Results
Resolution 2 – Proxy Results For personal use only RE-ELECTION OF BARRY LIONEL CUSACK AS A DIRECTOR For 531,366,513 Against 75,126,101 Abstain 788,675 At the Proxies Discretion 11,866,626 Total Proxy votes = 619,147,915 25
Slide 26: Re-election of Barry Lionel Cusack as a Director
Resolution 2 For personal use only RE-ELECTION OF BARRY LIONEL CUSACK AS A DIRECTOR “To re-elect Mr Barry Cusack, who retires from the office of Director by rotation in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers himself for re-election.” 26
Slide 27: Re-election of Vyril Anthony Vella as a Director
Resolution 3 For personal use only RE-ELECTION OF VYRIL ANTHONY VELLA AS A DIRECTOR “To re-elect Mr Vyril Vella, who retires from the office of Director by rotation in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers himself for re-election”. 27
Slide 28: Re-election of Vyril Vella – Proxy Results
Resolution 3 – Proxy Results For personal use only RE-ELECTION OF VYRIL ANTHONY VELLA AS A DIRECTOR For 550,692,858 Against 55,816,036 Abstain 760,107 At the Proxies Discretion 11,878,914 Total Proxy votes = 619,147,915 28
Slide 29: Re-election of Vyril Anthony Vella as a Director
Resolution 3 For personal use only RE-ELECTION OF VYRIL ANTHONY VELLA AS A DIRECTOR “To re-elect Mr Vyril Vella, who retires from the office of Director by rotation in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers himself for re-election”. 29
Slide 30: Re-election of Eva Skira as a Director
Resolution 4 For personal use only RE-ELECTION OF EVA SKIRA AS A DIRECTOR “To re-elect Ms Eva Skira, who retires from the office of Director by rotation in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers herself for re-election.” 30
Slide 31: Re-election of Eva Skira – Proxy Results
Resolution 4 – Proxy Results For personal use only RE-ELECTION OF EVA SKIRA AS A DIRECTOR For 598,550,881 Against 7,931,229 Abstain 788,107 At the Proxies Discretion 11,877,698 Total Proxy votes = 619,147,915 31
Slide 32: Re-election of Eva Skira as a Director
Resolution 4 For personal use only RE-ELECTION OF EVA SKIRA AS A DIRECTOR “To re-elect Ms Eva Skira, who retires from the office of Director by rotation in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers herself for re-election.” 32
Slide 33: Grant of Performance Rights to Managing Director and CEO
Resolution 5 For personal use only GRANT OF PERFORMANCE RIGHTS TO THE MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER “That for the purposes of ASX Listing Rule 10.11, and for all other purposes, the grant to Mr Ross Anthony Carroll as the Company’s Managing Director and Chief Executive Officer of: 9,
Slide 34: Grant of Performance Rights – Proxy Results
Resolution 5 – Proxy Results For personal use only GRANT OF PERFORMANCE RIGHTS TO THE MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER For 321,827,928 Against 284,757,328 Abstain 422,068 At the Proxies Discretion 11,825,673 Total Proxy votes = 618,832,997 34
Slide 35: Grant of Performance Rights to Managing Director and CEO
Resolution 5 For personal use only GRANT OF PERFORMANCE RIGHTS TO THE MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER “That for the purposes of ASX Listing Rule 10.11, and for all other purposes, the grant to Mr Ross Anthony Carroll as the Company’s Managing Director and Chief Executive Officer of: 9,
Slide 36: Renewal of Proportional Takeover Provisions
Resolution 6 For personal use only RENEWAL OF PROPORTIONAL TAKEOVER PROVISIONS “That, with effect from the close of the Meeting and in accordance with section 648G of the Corporations Act, the proportional takeover provisions set out in Rule 29.8 of, and Schedule 2 to, the Constitution of the Compan
Slide 37: Renewal of Proportional Takeover Provisions – Proxy Results
Resolution 6 – Proxy Results For personal use only RENEWAL OF PROPORTIONAL TAKEOVER PROVISIONS For 600,129,259 Against 5,222,419 Abstain 1,821,858 At the Proxies Discretion 11,974,379 Total Proxy votes = 619,147,915 37
Slide 38: Renewal of Proportional Takeover Provisions
Resolution 6 For personal use only RENEWAL OF PROPORTIONAL TAKEOVER PROVISIONS “That, with effect from the close of the Meeting and in accordance with section 648G of the Corporations Act, the proportional takeover provisions set out in Rule 29.8 of, and Schedule 2 to, the Constitution of the Compan
Slide 39: Annual General Meeting 2014
For personal use only ANNUAL GENERAL MEETING 2014 7 November 2014
Slide 40: 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 business. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether circumstances actually occ
Slide 41: Annual General Meeting 2014
For personal use only ANNUAL GENERAL MEETING 2014 7 November 2014
Macmahon Holdings — Shareholder Meeting (November 2014) on 6ix