Macmahon Holdings Limited · ASX:MAH
Macmahon — Shareholder Meeting (November 2012)
50 slides from Macmahon's shareholder meeting presentation, Nov 9, 2012
Slide 1: Annual General Meeting 2012
Annual | —— General Meeting 2012 9 November 2012 MAGMAHON
Slide 2: Chairman
For personal use only Chairman
Slide 3: Board of Directors
3 For personal use only Board of Directors
Slide 4: Executive Leadership Group
For personal use only Executive Leadership Group 4
Slide 5: 2012 highlights
2012 highlights NPAT and NPAT margins Revenue For personal use only * 2011 result based on underlying figures $56.1 million profit $1.9 billion revenue 5
Slide 6: 2012 highlights
For personal use only 2012 highlights Order book and run-off $3.1 billion order book Margin growth across Mining Record level of work delivered in Construction 6
Slide 7: Dividend
Dividend Fully franked final For personal use only EPS and DPS dividend of 2.5 cents per share Total dividend for the year of 4.0 cents per share Payout ratio 52.7 * 2011 result based on underlying figures per cent 7
Slide 8: Our people
Our people 4791 direct For personal use only employees Increased focus on training and development ROCKSTAR program launched 8
Slide 9: Safety
Safety Lost Time Injury For personal use only Frequency Rate (LTIFR) of 1.4 Total Recordable Injury Frequency Rate (TRIFR) of 7.7 Refreshed safety approach implemented across the business 9
Slide 10: 2013 earnings guidance
2013 earnings guidance Revised earnings guidance For personal use only announced in September Forecast profit between $20 million and $40 million Less visibility for new work opportunities 10
Slide 11: Hope Downs
Hope Downs 4 Accelerated program of works For personal use only Required earthworks productivities not achieved Quality of equipment and operators affected by strong market conditions Construction to focus on projects within its capability 11
Slide 12: Financials
Financials Mining delivering good results For personal use only NT/Qld/NSW Construction performing consistently Forecast loss for half year Company will closely manage capital structure 12
Slide 13: Management team changes
For personal use only Management team changes Angie Young – Executive General Manager People and Safety Mark Hamilton – Chief Operating Officer Construction 13
Slide 14: Chief Executive Officer
For personal use only Chief Executive Officer Ross Carroll appointed as CEO in September 2012 Appointment result of Board succession plan 14
Slide 15: Looking ahead
For personal use only Looking ahead Focus on completing Hope Downs 4 and achieving consistent performance Creating certainty for shareholders essential De-risking the Construction Business 15
Slide 16: Strategy
For personal use only Strategy Broad based business Geographic diversity Range of commodities 16
Slide 17: Board renewal
For personal use only Board renewal Board renewal a focus Barry Ford to step down within the next 12 months 17
Slide 18: Chief Executive Officer
For personal use only Chief Executive Officer
Slide 19: Executive Leadership Group
For personal use only Executive Leadership Group 19
Slide 20: Strategy
Strategy Business model to For personal use only promote consistent sustainable profits Diverse, multi-disciplinary contractor Balance growth with ability to deliver results 20
Slide 21: Getting the strategy back on track
Getting the strategy back on track Focus on quality of earnings For personal use only Look for low capital intensity opportunities in Mining Pursue Underground and Engineering work in Africa Implementation of organisational review De-risk Construction, particularly in WA 21
Slide 22: Risk management
Risk management Risk management a major focus For personal use only Processes and reporting systems are sound Focus on culture to ensure considered approach to all aspects of project management 22
Slide 23: Organisational review
Organisational review Review recently completed For personal use only Centralised corporate and support functions 10% salary reduction for ELG and Board members Additional cost savings implemented 23
Slide 24: Key clients
Key clients Strong For personal use only relationships with blue-chip clients Diverse customer base Strengthens ability to win new work 24
Slide 25: Winning work
Winning work New projects must suit existing skill set For personal use only Cultivate opportunities with existing Mining clients Selective expansion overseas Winning work to support long term objectives 25
Slide 26: People
People Leadership For personal use only Apprenticeships development programs in place Graduate and ROCKSTAR apprenticeship programs delivering value ROCKSTAR supporting AEC commitments 26
Slide 27: Construction
For personal use only Construction Hope Downs 4 to be substantially complete by the end of the year Review of Construction underway 27
Slide 28: Northern Territory projects
For personal use only Northern Territory projects Ichthys LNG Ichthys LNG onshore facilties site development works. 50:50 joint venture with John Holland for INPEX Darwin Marine Supply Base Darwin Marine Supply Base design and construction. Construction partner in ShoreASCO Consortium for NT Gov
Slide 29: Glenfield Transport Interchange
For personal use only Glenfield Transport Interchange Client Member of Glenfield Junction Alliance for the Transport Construction Authority (TCA) Location NSW Work type Rail works Contract value $170 million Status Works completed ahead of schedule 29
Slide 30: South Road Superway
For personal use only South Road Superway Client Part of the Urban Superway Joint Venture for SA Government Location SA Work type Road works Contract value $230 million (MAH share) Point of interest Largest single investment in a road project by SA Government 30
Slide 31: Great Northern Highway
For personal use only Great Northern Highway Client Main Roads WA Location Port Hedland, WA Work type Road works Contract value $220 million 31
Slide 32: Solomon Rail Spur
For personal use only Solomon Rail Spur Client Fortescue Metals Group Location Pilbara Region, WA Work type Resource infrastructure Contract value $330 million Point of interest Significant earthworks project through Chichester Ranges, WA 32
Slide 33: Mining
For personal use only Mining Continuing to deliver consistent results Full service offering for both Surface and Underground mining Strong client relationships 33
Slide 34: Tropicana Gold Project
For personal use only Tropicana Gold Project Client AngloGold Ashanti and Independence Group NL Location Great Victoria Desert, WA Work type Surface mining Contract value $900 million Point of interest Opportunities for automation 34
Slide 35: Olympic Dam
For personal use only Olympic Dam Client BHP Billiton Location Roxby Downs, SA Work type Underground mining Contract value $200 million (contract extension) Point of interest Underground mining operations since 2004 35
Slide 36: Ranger Deeps Exploration Decline
For personal use only Ranger 3 Deeps Exploration Decline Client Energy Resources of Australia (ERA) Location NT Work type Construction / Underground decline development Contract value $50 million 36
Slide 37: Orebody / Wheelarra
For personal use only Orebody 18 / Wheelarra Client BHP Billiton Iron Ore Location Pilbara Region, WA Work type Surface mining Contract value to date $990 million 37
Slide 38: Tavan Tolgoi Coal Mine
For personal use only Tavan Tolgoi Coal Mine Client Erdenes Tavan Tolgoi JSC Location South Gobi Region, Mongolia Work type Surface mining Contract value to date US$500 million 38
Slide 39: International projects
For personal use only International projects Calabar, Nigeria Calabar is second project for Lafarge in Nigeria Kanthan, Malaysia Asia remains strong and is continuing long term relationship with Lafarge 39
Slide 40: Outlook
For personal use only Outlook Next six months challenging Increased competition Opportunities for growth remain 40
Slide 41: Resolution: Adoption of Remuneration Report
For personal use only Resolution 1 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 2012) be adopted.” 41
Slide 42: Resolution – Proxy results: Remuneration Report
For personal use only Resolution 1 – Proxy results Adoption of Remuneration Report For 149,022,690 Against 116,059,163 Abstain 3,398,856 At the Proxies Discretion 4,206,793 Total Proxy votes = 39.07% of shares on issue 42
Slide 43: Resolution: Adoption of Remuneration Report
For personal use only Resolution 1 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 2012) be adopted.” 43
Slide 44: Resolution: Re-election of Kenneth Scott-Mackenzie
For personal use only Resolution 2 Re-election of Kenneth Scott-Mackenzie as a Director “To re-elect Mr Kenneth Scott-Mackenzie, 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.” 44
Slide 45: Resolution – Proxy results: Kenneth Scott-Mackenzie
For personal use only Resolution 2 – Proxy results Re-election of Kenneth Scott-Mackenzie as a Director For 269,700,497 Against 5,765,182 Abstain 16,080,752 At the Proxies discretion 4,270,975 Total Proxy votes = 39.07% of shares on issue 45
Slide 46: Resolution: Re-election of Kenneth Scott-Mackenzie
For personal use only Resolution 2 Re-election of Kenneth Scott-Mackenzie as a Director “To re-elect Mr Kenneth Scott-Mackenzie, 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.” 46
Slide 47: Resolution: Re-election of Barry Raymond Ford
For personal use only Resolution 3 Re-election of Barry Raymond Ford as a Director “To re-elect Mr Barry Raymond Ford, 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.” 47
Slide 48: Resolution – Proxy results: Barry Raymond Ford
For personal use only Resolution 3 – Proxy results Re-election of Barry Raymond Ford as a Director For 269,785,862 Against 5,677,642 Abstain 16,079,093 At the Proxies discretion 4,274,809 Total Proxy votes = 39.07% of shares on issue 48
Slide 49: Resolution: Re-election of Barry Raymond Ford
For personal use only Resolution 3 Re-election of Barry Raymond Ford as a Director “To re-elect Mr Barry Raymond Ford, 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.” 49
Slide 50: Annual General Meeting 2012
Annual | —— General Meeting 2012 9 November 2012 MAGMAHON
Macmahon Holdings — Shareholder Meeting (November 2012) on 6ix