Macmahon Holdings Limited · ASX:MAH
Macmahon — Investor Presentation (September 2005)
24 slides from Macmahon's investor presentation, Sep 23, 2005
Slide 1: Partnering the Resources & Infrastructure Super Cycle
MAG MAHON WHEN EXPERIENCE COUNTS Partnering the Resources & Infrastructure Super Cycle September 2005 Va \NilsonHTM PATERSONS. WK INVESTMENT GROUP CORPORATE FINANCE
Slide 2: Disclaimer
©2 Disclaimer MACMAHDON «The information contained in this document and otherwise disclosed to you by Macmahon Holdings Limited (ACN 007 634 406), Wilson HTM Corporate Finance Ltd (ABN 65 057 547 323) or Patersons Securities Limited (ABN 69 008 896 3141) prior to a public announcement must be kept s
Slide 3: Overview — the stage is set
Macmahon - Septem Overview — the stage is set. ©2 MACMAHIIR Macmahon’s Board and Management have successfully re-engineered the business over the past five years delivering; ~ Increased profitability, ~ Reduced debt, - Ablue chip client list, and - A $1 billion order book Macmahon is well placed to
Slide 4: Overview — capital raising
©2 Overview — capital raising MACMAHON Structure >» $25m placement — 53.2 million shares @ 47 cents > $31m renounceable rights issue-—1:6 - 72.5 million shares @ 43 cents > Placement eligible to participate in the subsequent rights issue This structure ..... > Acknowledges and rewards existing share
Slide 5: 2005 Highlights
2005 Highlights vance desc » Record profit of $19.6 million Vv $740 million of new contracts and extensions (100% success rate on contract extensions) 60% of revenue from Government, BHP Billiton and Rio Tinto Acquired HWE’s NT Civil Business Significant improvement in Open Cut and Underground margi
Slide 6: Group Performance
©2 Group Performance MACMAHON Total Revenue Profit after Tax 700 $641 30 600 0 $19.6 gz] gaa cul a e421 wa $65 $116 Zw = 300 || |_| & 200 2002 2008 2004 2005 100 a+ 2001 2002 2003 2004 2005 -30 m Operating Revenue m Joint Venture Revenue 40 $32.8 EBIT/Total Revenue Net Balance Sheet Debt / Gearing 9
Slide 7: Our Business and 2005 Divisional Results
Our Business and 2005 Divisional Results ©2 CIVIL 2005 Revenue $287m EBIT $7.4m OPEN CUT 2005 Revenue $260m EBIT $19m UNDERGROUND 2005 Revenue $72m EBIT $9.6m 2005 Revenue $43.6m EBIT - Earthmoving Equipment Hire - Ownership (7.0%) ~ Roa ~ Mine Design - Mine Development - Railways - Mine Management
Slide 8: People
©2 People MACMAHON > Experienced Board > Dick Carter — former CEO of BHP Minerals >» Nick Bowen — 22 years of contracting experience >» Barry Cusack — former CEO of Rio Tinto Australia, Chairman — Oxiana, NED — Smorgen Steel > David Humann — former Chairman PWC Hong Kong, Chairman — Matrix Metals, M
Slide 9: Risk Management
©2 Risk Management MACMAHON » Acore responsibility of the Board and Management > Risk management is an integrated process as set out below Client) Project, Selection y Our Client Project ey / Standard Priority a py Syste “<< |mprovement Process . <@22288 Information Systems Audits Macmahon - Septemb
Slide 10: Market Overview
Market Overview Total Engineering Construction (Australia)* » Increased infrastructure spending — roads, railways, ports, water and resource 2 projects : >» Outlook indicates high levels of work ; for next few years 2002, $ (billion) Engineering Construction by State* 10 8 » Strong activity in WA, Q
Slide 11: Market Overview
©2 Market Overview MACMAHDON Coal & Iron Ore Production, Australia” 3° >» Substantial growth in mine production 5 xe especially iron ore and coal 5 > Strong global demand for bulk minerals, _ base metals and energy products — Coai =~ fron Ore ; Vatue of Contract Mining” >» Large, long life, low cost
Slide 12: Macmahon Position
©2 Macmahon Position MACMAHDON >» Long term relationships with major blue chip miners (BHP Billiton, Rio Tinto, Xstrata, Peabody, AngloCoal, Alcan, Newmont and more recently Woodside) driving our organic growth >» Reduced competition in market place (HWE, Walter) » Governments and large resource com
Slide 13: Macmahon Strategy
©2 Macmahon Strategy MACMAHDON >» Continued focus on targeted commodities (coal, iron ore, copper and nickel) for major mining companies with long life mines >» Extend and grow existing relationships with blue chip clients > Target large Government and mining infrastructure projects > Expand Allplan
Slide 14: Macmahon Targets
> EBIT Margin Macmahon Targets > Profit After Tax Growth "> Net Debt to Equity b> Return On Equity : "> Safety (TRIFR) improvement ?) MACMAHIIBN Targets 5% in 2006. Increase to 6% in 2007 Long Term <30% > (Previously <40%) Macmahon - September 2005 414
Slide 15: Order Book as at August
©2 Order Book as at 31 August MACMAHON Order Book *200 ‘eereee stoanion | » AS at 31 August the order book exceeded 1000 ‘ $925 $1 billion. __ 900 784 2 oc) ue >» 90% of order book at or above target ® sep saat margins “an a+ 2001 2003, 2004 2005 Aug-05, Order Book Run-Off agye sen oo » $740 million
Slide 16: Order Book as at August
©2 Order Book as at 31 August MACMAHON By Division Order Book by Client Size {market cap) Allptant Underground 3% <$4 bition 16% Government, 28% $1 bilion market cap 81% Order Book By Length of Contract <2 years 204 208 years 464 Over 5 years 413 0 4 00 200 300 400 500 $ Million Macmahon - September
Slide 17: Client Expansion Requirements
©2 Client Expansion Requirements MACMAHON Eaglefield Coal Mine (Peabody Energy} Contract continues Expansion Stage | to 2010 Material Movement (Million BCM/Yr) Contract June 03 dune 04 dune 05 June 06 June 07 Olympic Dam (BHP Billiton) Expansion a : / Contract St | : pes yo fo 7 continues 5 : ; ; io
Slide 18: Capex Capacity and Revenue Potential
Capex Capacity and Revenue Potential 150 Capital Expenditure Capacity {§ Mitfion) 140 10 120 0 100 0 oo n eu 0 40 Séhtitiem) 0 2 1» ° 2006 2007 2008 Hi Capex Capacity Pre Raising Hi Capex Capacity Post Raising mmm Net D/E (Pre Raising) mmm Net D/E (Post Raising) 209 Total Revenue Capacity ($ Million
Slide 19: Outlook
©2 Outlook MACMAHDON Growth being driven by opportunities from existing client base vov High percentage of growth from expansion of existing contracts Current strong cycle expected to last 3 to 5 years Mix of business with 4 operating divisions provides flexibility to manage cycles Vv Ww Capacity to
Slide 20: Offer Summary
?) Offer Summary MACDMAHDON >» Macmahon Holdings is conducting a $56m capital raising — $25m placement — $31m renounceable rights issue (1:6) > Placement to institutional investors — Shares issued in placement will have an entitlement to participate in the rights issue ms >» The two largest sharehol
Slide 21: Offer Summary
©2 Offer Summary MACMAHDON Placement 53.2 million shares to be placed Issue price of $0.47 per share Discount of 12% to last traded price on 16 September 2005 $0.535 Placement shares to participate in rights issue Bids into book by 12 noon EST, 22 September 2005 Settlement of placement shares, 28 Se
Slide 22: Investment Fundamentals
?) Investment Fundamentals MACDMAHDON $milion Enterprise Value 2005 PE Macmahon - September 2005 a
Slide 23: Timetable
©2 Timetable MACMAHON Activity Date Roadshow — Brisbane, Sydney, Melbourne 19-21 September 2005 Bookbuild Record Date for determining Entitlement to New Shares Closing Date and latest time for payment i in full for New | 24 October 2005 7 Shares ; Expected date for allotment of New Shares and 4 Nove
Slide 24: Contact Details
©2 Contact Details MACMAHON Macmahon Holdings Limited Nick Bowen, Chief Executive Officer Rick Blair, Chief Financial Officer Phone: 08 9365 1200 Phone: 08 9365 1211 Fax 08 9365 1261 Fax: 08 9365 1261 Email: nbowen@macmahon.com.au Email: tblair@macmahon.com.au Mobile: 0411 754 258 Mobile: 0418 333 9
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