Macmahon Holdings Limited · ASX:MAH
Macmahon — Investor Presentation (August 2021)
31 slides from Macmahon's investor presentation, Aug 25, 2021
Slide 1: Full Year Results FY21
Full Year Results FY21 1
Slide 2: FY21 Financial Highlights
FY21 Financial Highlights Achieved record results despite industry challenges Revenue Underlying EBITDA1 Underlying EBIT(A)1 FY22 Secured Revenue5 $1.35bn q 2% $249.9m p 5% $95.2m p 4% $1.3bn 18.5% margin 7.0% margin Statutory NPAT Underlying operating cash flow2 Total Dividend FY22 Revenue Guidance
Slide 3: FY21 Key Highlights
FY21 Key Highlights Secured $2bn of new work underpinning positive outlook Financials Surface Mining Underground Mining Mining Support Outlook Services • Continued growth with record • New contract awards: • New contract awards: • Secured and expanded • FY21 $2bn contract awards underlying earnings
Slide 4: People and Safety
People and Safety Trained over 400 people to support our growth Safety and Wellbeing Injury Frequency Rates and Workforce • Two employees sadly passed away on site during the year 7,040 7,059 7,069 • Safety is our number one business priority 6,284 • Expect improvement in FY22: 5,572 – Safety and He
Slide 5: People Resourcing in Australia
People Resourcing in Australia 5 new projects commenced PROJECT PROJECT PROJECT Foxleigh, WA Strandline, WA Today Warrawoona, WA PEOPLE IN PLACE PEOPLE IN PLACE PEOPLE REQUIRED 80 65 120 START DATE START DATE START DATE Mar 2021 May 2021 Mar 2022 FY21 FY22 PROJECT PROJECT PROJECT PROJECT Warrawoona,
Slide 6: Key Projects
Key Projects Diversified client portfolio and strong alliances CLIENT END (UNLESS EST. MINE COST CLIENT PROJECT COMMODITY SINCE EXTENDED) END DATE1 CURVE1 Tropicana, WA Gold 2012 2027 2026 Telfer, WA Gold 2016 Sep 2024 2023 Mount Morgans, WA Gold 2017 Nov 2022 2027 Byerwen, QLD Met Coal 2017 Nov 202
Slide 7: Batu Hijau Project
Batu Hijau Project Long term sustainable earnings at world class copper asset Long term sustainable earnings under life of mine contract • Macmahon has life of mine alliance contract for Batu Hijau About AMNT • Second largest copper-gold mine in Indonesia (behind Grasberg) • Batu Hijau is owned by A
Slide 8: Sustainability
Sustainability Focused on improving disclosure and performance 16 material topics ESG Standalone New Sustainability Policy Sustainability Report Safety, Health Strong Minds, Strong Mines Grow Our Own People and Wellbeing WAAMH Award, program 426 developed (graduates, offered to industry apprentices,
Slide 9: FY21 Results
| | MACMAHON FY21 Results
Slide 10: Financial Performance
Financial Performance Solid track record Revenue ($m) Underlying EBIT(A) ($m) 1,380 1,351 95 1,400 100 92 1,200 1,103 80 75 1,000 60 800 710 42 40 600 360 20 400 (2) 200 -20 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Underlying EBITDA ($m) 17.3% 18.5% Underlying EBIT(A) Margin 250 250 239 8%
Slide 11: Historical Guidance and Performance
Historical Guidance and Performance Achieved guidance for 4th consecutive year Guidance Revenue ($m) 1,400 – 1,500 Underlying EBIT(A) ($m) Guidance 95 – 105 Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance 620-680 950–1,050 1,300–1,400 1,300–1,400 40-50 70-80 85-95 90-100 360
Slide 12: Capital Management
Capital Management Focused on cash conversion and ROACE Underlying operating cash flow1 ($m) Return on Average Capital (ROACE)2 108% 300 110.0% 95% 14.8% 92% 250 86% 90.0% 13.9% 13.5% 218 269 12.1% 70% 200 70.0% Impacted 150 50.0% by new 127 project 102 starts 100 30.0% in 2H NA:EBIT 50 30 10.0% neg
Slide 13: Profit and Loss
Profit and Loss Continued earnings and margin growth $ Millions FY20 1H21 2H21 FY21 Change • Revenue decreased by 2% Revenue 1,380.4 652.5 699.0 1,351.5 q 2% ‒ Due to a decrease in non-cash consideration on certain client provided consumable items at Batu Hijau. Macmahon did not have control over mo
Slide 14: Revenue Diversification
Revenue Diversification Continued improvement in business mix Commodity Clients 6% Gold AMNT 17% 23% 16% AngloGold Copper / Gold QCoal 7% Met Coal 53% Silver Lake Other 11% Newcrest 25% 20% Dacian Gold 11% Other 11% 1% 3% Country Activity Australia Surface 24% 22% Indonesia Underground Other Mining
Slide 15: Cash Flow – Net Debt Waterfall
Cash Flow – Net Debt Waterfall Strong cash flows supports growth Underlying Operating Cash Flow $269.0m 19.1 (26.3) • Strong underlying operating cash flow of (3.2) $269m, up 23% on FY20 (296.1) • EBITDA cash conversion 108% including positive working capital movement Growth 249.9 (152.7) • Capex $2
Slide 16: Capex
Capex Supports contract wins and underpins expected earnings growth Well positioned to achieve financial targets (EBITDA margin 20%, EBIT(A) margin 8%, ROACE 15%) as new projects contribute to growth FY21 Capex $296m FY22 Capex $270m • Growth Capex, includes: – Foxleigh • Growth Capex, includes: – B
Slide 17: Balance Sheet
Balance Sheet Solid financial position $ Millions FY20 FY21 • Liquidity and balance sheet capacity to fund secured growth: Cash 142 182 ‒ Net Debt / EBITDA of 0.5x Receivables 211 253 ‒ Gearing 19% Inventories 57 69 ‒ Cash and available banking facilities of $288m Property, plant and equipment 458 5
Slide 18: Strategy and Outlook
| | MACMAHON Strategy and Outlook
Slide 19: Strategic Overview
Strategic Overview Building a diversified scalable business Improve Invest Diversify Expand Margins and execution Relevance and competitive advantage Build scalability Growth in current markets • Systems and processes • Advanced contractor • Mining Support Services • Additional services with existin
Slide 20: Diversify and expand
Diversify and expand Focused on growing adjacent services to deliver higher returns 4% 3% 7% 22% FY181 FY211 Target 75% 89% EBITDA EBIT(A) ROACE EBITDA EBIT(A) ROACE EBITDA EBIT(A) ROACE Margin Margin Margin Margin Margin Margin 16.8% 5.8% 12.1% 18.5% 7.0% 13.5% p 20% p 8% p 15% Surface Underground
Slide 21: Order Book $5.0bn & Tender Pipeline $7.1bn
Order Book1 $5.0bn & Tender Pipeline $7.1bn Significant contract awards bolster order book and provides a high level of secured revenue $5.0bn – Order Book1 Tender Pipeline plus ~$820m of extensions and a preferred project 428 • $1.3bn of FY22 revenue secured • $5.0bn order book1 secured – represent
Slide 22: Priorities and Outlook
Priorities and Outlook FY22 set for continued growth FY22 PRIORITIES FY22 GUIDANCE1 • Improve safety performance • Effectively manage COVID-19 Revenue EBIT(A) • Finalise Batu Hijau Phase 8 extension • Improve scalability through diversifying earnings in underground and other mining support services
Slide 23: Thank You
Thank You CONTACT Chris Chong Investor Relations and Corporate Development cchong@macmahon.com.au Mick Finnegan CEO & MD mfinnegan@macmahon.com.au Peter Pollard CFO ppollard@macmahon.com.au www.macmahon.com.au 23 30 June 2021 Full Year Results
Slide 24: Appendix
| | MACMAHON as Append
Slide 25: Corporate Overview
Corporate Overview Capital Structure Share Price ($) – 3 years Share Price1 (ASX:MAH) $0.235 0.35 Fully paid ordinary shares (m) 2,155 0.30 Market Capitalisation $506.4m Cash (30 June 21) $182.1m 0.25 Debt (30 June 21) $312.4m Enterprise Value $636.7m 0.20 Net Tangible Assets per share (30 June 21)
Slide 26: Corporate Overview - Directors
Corporate Overview - Directors EVA SKIRA MICHAEL FINNEGAN BRUCE MUNRO ALEX RAMLIE Independent Non-Executive Chair Managing Director Independent, Non-Executive Director Non-Independent, Non-Executive Director and Chief Executive Officer ARIEF SIDARTO HAMISH TYRWHITT VYRIL VELLA DENISE McCOMISH Non-In
Slide 27: Map of Operations
Map of Operations 27 30 June 2021 Full Year Results
Slide 28: COVID-19
COVID-19 PROTECTING OUR PEOPLE, COMMUNITY AND CLIENTS • Communication and education • Health screening and physical distancing protocols • Sanitation and cleaning • Travel restrictions • Remain vigilant whilst acknowledging COVID-19 environment continues to evolve and has the potential to impact the
Slide 29: Cash Flow
Cash Flow $ Millions FY20 FY21 Underlying EBITDA 238.7 249.9 Movement in receivables 4.7 (37.1) Movement in inventory (4.4) 9.0 Movement in payables and provisions (21.7) 50.9 Other 1.1 (3.7) Net Interest and tax (paid) / received (23.4) (26.3) M&A costs and earn-out related to previous acquisitions
Slide 30: Reconciliation of Non-IFRS Financial Information
Reconciliation of Non-IFRS Financial Information $ Millions FY20 FY21 Profit for the year (as reported) 64.9 77.2 Add back: • Share Based Payment expense 2.6 0.9 • M&A costs and earn-out related to previous acquisitions 1.3 3.2 • GBF customer amortisation (A) 0.3 0.9 Less: • Fair value gain on JV (6
Slide 31: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer as to forward looking statements The forward looking statements in this presentation reflect views seeking independent legal, financial and taxation advice in relation to held only as at the date of this presentation. the contents of this presentation. This
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