Macmahon Holdings Limited · ASX:MAH
Macmahon — Shareholder Meeting (November 2004)
26 slides from Macmahon's shareholder meeting presentation, Nov 26, 2004
Slide 1: 2004 Annual General Meeting CEO Presentation
@) MACMAHCN NM EXPERIENCE COLINTS 2004 Annual General Meeting CEO Presentation
Slide 2: Key Highlights - 2004 Year
KEY HIGHLIGHTS — 2004 YEAR van an Net profit after tax increased 36% to $11.6 million Total Recordable Injury Frequency Rate improved by 14% to 22.1 Debt/equity improved to 52% VV Vv WV Record order book of $784 million as a result of $862 million of new. contracts and extensions » Fully franked div
Slide 3: Our Markets
OUR MARKETS van uan >» Under investment over last 7 years in infrastructure > Positive impact of Federal Government Auslink program ($11.8 billion) > Strong demand from China and other Asian economies (iron ore, coal, copper, nickel) —-Price and volume benefits » Engineering construction expenditure
Slide 4: Civil
CIVIL vince cn > Revenue this year expected to increase to over $275 million (2004: $169 million) > Growth to +$300 million expected in 2006 >» Workload split evenly between Government infrastructure and major mine development > New work awarded by Rio Tinto Iron Ore (Rail) >» Finalising major contr
Slide 5: Civil: Tonkin Highway Duplication - WA
@) MAC MARION CIVIL Tonkin Highway Duplication - WA se oe
Slide 6: Civil: Burnett River Dam
@) CIVIL Burnett River Dam MAGMAHON
Slide 7: Civil: Tunkawanna to Rosella Rail Duplication
CIVIL. Tunkawanna to Rosella Rail Duplication MAUMAKIOIN L aie Oe fine ie, es
Slide 8: Open Cut
OPEN CUT vince dan >» Revenue of $220 million expected for 2005 (2004: $197 million) > EBIT margins improved in 2004 with further improvement expected in 2005 >» Business mix has changed with 60% now from Iron Ore and Coal > Considering opportunities to grow in selected areas > Mt Whaleback contract
Slide 9: Open Cut: Eaglefield Coal Mine
OPEN CUT Eazglefield Coal Mine £2 ay
Slide 10: Open Cut: Mt Whaleback Iron Ore Mine
OPEN CUT Mt Whaleback Iron Ore Mine ae scan e Ni ee Le cen
Slide 11: Underground
UNDERGROUND van van > Revenue $54 million in 2004 with growth to +$75 million in 2005 targeted >» Business Model appropriately shares risk/rewards > Specialist work (diamond drilling and cable bolting) providing additional growth >» Awarded 2 year contract with Bendigo Mining > Major contracts >» Ol
Slide 12: Underground: Olympic Dam
UNDERGROUND Olympic Dam ance divans
Slide 13: Allplant
ALLPLANT @) sft loalln LA AIT >» 3 business streams: - Large Earthmoving Plant Hire — 120 items in fleet - Labour Hire — maintenance and operating labour - Maintenance Services — mechanical repairs for major plant > Target 2005 revenue of $40 million ($19 million 2004) > 50% of business to external
Slide 14: Allplant
ALLPLANT ALL PLANT 44
Slide 15: Allplant
ALLPLANT ALL PLANT i ie J oo ae ae Hine a 15
Slide 16: Allplant: Drayton Hire Fleet
ALLPLANT a Me Drayton Hire Fleet 7 Lia ) 2 a oy 2 MAC MARION
Slide 17: Malaysia
MALAYSIA vac e dan > Re established Malaysian business with award of 6 year mining contract by La Farge >» Mining 4.5 million tonnes limestone annually >» La Farge is the worlds largest cement manufacturer >» Strategy is to expand relationship with La Farge
Slide 18: Malaysia
MALAYSIA vac e dan CD oe be 18
Slide 19: APT/FreightLink - Alice Springs to Darwin Railway
APT/FREIGHTLINK - ALICE SPRINGS TO DARWIN Raiway, 62 > Construction completed October 2003 — 5 months early > Freight operations commenced January 2004 >» Additional business to come from fuel, agriculture, mining and international freight > Additional rolling stock ordered to meet demand > Ramp up
Slide 20: Slide 20
Slide 21: Safety
SAFETY Q MAC MARION 4) a8 40} | > Continued focus on safety 35 | delivered 12% improvement in , 4 Lost Time Injury Frequency Rate # os | iy £20) > No permanent disabling injuries 154 . 104 > Commitment to further.improve - 5 safety performance across all 0 , divisions -. SS 2001 2002 2003 2004 TRIFR
Slide 22: Order Book
ORDER BOOK vac eduan >» $100 million of contracts announced today > Total of $180 million of new contracts and extensions since July 2004 ; $ (millions) >» Order book now at $760 million 2004 Nov-05 » +$150 million of contracts under final negotiation 150 under negotiation Work on Hand at 30 June
Slide 23: Order Book Runoff
ORDER BOOK RUNOFF ace Sean 900 - 800 | Order book secures $525 million of 0] revenue for 2005 ® 600 2 500 5 Future contract extensions and new *E 400 4 work expected @ 300 5 Full year 2005 revenue will exceed © OO | 315 275 $580 million 220 0 Revenue in 2005 may reach $600 30.6.04 2005 2006 2007+ mi
Slide 24: Outlook - 2005
OUTLOOK - 2005 sack aan Very positive outlook in civil construction and mining Increased requirements from existing clients in all divisions Significant revenue growth to +$580 million (up from $434 million) High volume of new work available at targeted margins Capex of $55 million VV VV VW Profit e
Slide 25: Outlook 2006 Onwards
OUTLOOK 2006 ONWARDS > Further revenue growth achievable > Move to full tax accounting (30%) in 2006 > Targeting to deliver increased eps even after increased tax >» Very positive outlook Q MAC MARION 25
Slide 26: When Experience Counts
WHEN EXPERIENCE COUNTS Cul a WHEN EXPERIENCE COUNTS Oper Gn Mining a Undergiound Mijieg Aliplest labour hire, plant hire ar Jey pAlAno é MAGMAHEIN . Sel 47, wee suscalaner coun 26
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