Macmahon Holdings Limited · ASX:MAH
Macmahon — H1 2018 Earnings Presentation
16 slides from Macmahon's earnings presentation, Feb 23, 2018
Slide 1: Half Year Results February 2018
23 FEBRUARY 2018 HALF YEAR RESULTS FEBRUARY 2018 Macmahon Holdings Pty Ltd 1
Slide 2: Overview
OVERVIEW • Positive 1H financial performance • 1H17 revenue from operations of $270.0 million - up from $168.3 million in the pcp • EBIT of $9.9 million • NPAT of $8.2 million • FY18 EBIT guidance of $40 million to $50 million. • Cash at bank of $70.2 million • Net cash of $27.9 million • Continuall
Slide 3: Map of Operations Inc. Major Fleet
MAP OF OPERATIONS INC. MAJOR FLEET Map of Operations TELFER MT MORGANS BYERWEN BATU HIJAU Loading Fleet Loading Fleet Loading Fleet Loading Fleet • 2x 6060 BH* • 2 X 2600 • 1x 9800 • 5x 4100 Rope Shovel • 1x EX3600* • 1 X 1200 • 2x 9961 • 1x 2800 Rope Shovel Trucking Fleet Trucking Fleet • 2x 9350 •
Slide 4: Investment Case
INVESTMENT CASE FULL SERVICE • Diversified mining contractor offering open-pit and underground mining services MINING • Strong existing relationships with major mining companies CONTRACTOR LEVERAGED TO • Mining services sector activity continuing to improve due to: RESOURCES – Return to investment b
Slide 5: Overview of Key Contracts
OVERVIEW OF KEY CONTRACTS Project / Client Location Commodity / Comments Type • Alliance model has resulted in reduction in unit cost by roughly 37% Tropicana WA Gold from 2015 levels AngloGold Ashanti / Australia Open-pit • Phase 1 of Long Island mining strategy approved by the project’s JV Indepen
Slide 6: People
PEOPLE Group Employee Numbers Employees by Division Surface Corporate 3,000 International 2,467 1,529 1,659 Underground 1,295 2014 2015 2016 2017 2018 1H18 highlights: • Rapid workforce establishment at Byerwen with significant interest from ex-Macmahon east coast employees to return • Transition of
Slide 7: Safety
SAFETY 1H18 highlights: Group Safety Performance • Safe commencement of several project launches across (per million hours worked) multiple jurisdictions and commodities • Development of two ‘Green Starter’ programs, involving Frequency rate 6.7 5.6 screening and assessment centres, practical aptitu
Slide 8: Financial Results
FINANCIAL RESULTS MACMAHON – Half Year Results - 23 February 2018 8
Slide 9: Income Statement
INCOME STATEMENT $ Millions Dec-17 Dec-16 Total revenue1 from continuing operations 270.0 168.3 2 EBITDA (from continuing operations) 46.1 10.4 3 EBIT (from continuing operations) 9.9 (4.5) Net finance costs (0.7) (0.1) Tax expense (1.0) (0.4) Net profit / (loss) after tax from continuing operations
Slide 10: Cash Flow
CASH FLOW $ Millions Dec-17 Dec-16 EBITDA 46.1 10.4 Net interest paid (0.7) (0.1) Income taxes paid (1.0) (0.4) Working capital and other items (21.6) 1.9 Net cash from / (used in) operating activities 22.8 11.8 Proceeds from sale of assets 0.6 9.9 1 Capital expenditure - cash (13.6) (16.5) Net cash
Slide 11: Balance Sheet
BALANCE SHEET $ Millions Dec-17 Jun-17 Current assets 228.1 164.5 Non-current assets 329.5 130.5 Total assets 557.6 295.0 Current liabilities 148.6 103.0 Non-current liabilities 34.8 7.0 Total liabilities 183.4 110.0 Net assets 374.2 185.0 Borrowings (42.3) (8.8) Net cash 27.9 54.1 Gearing (7.5%) (2
Slide 12: Outlook
OUTLOOK MACMAHON – Half Year Results - 23 February 2018 12
Slide 13: Outlook
OUTLOOK • Market conditions are continuing to improve but competitive pressures still persist • Ongoing focus on project execution • Increased investment in technology and innovation • Push into resource related civil construction through TMM acquisition1 • Strong balance sheet, backed by high quali
Slide 14: FY2018 Guidance
FY2018 GUIDANCE Guidance and Assumptions FY2018 Revenue – Key Movements • FY2018 revenue of $620 – 680 million 800 Tropicana Telfer Batu Hijau Other 700 • FY2018 EBIT of $40 – 50 million (excluding one-off costs and 600 unrealised FX gains / losses) 500 A$m • Key assumptions: 400 — Macmahon commence
Slide 15: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer as to forward looking statements The directors of Macmahon consider that they Not a disclosure document have used reasonable care in preparing forward This presentation is not a disclosure document This presentation contains forward looking looking financia
Slide 16: Half Year Results February 2018
23 FEBRUARY 2018 HALF YEAR RESULTS FEBRUARY 2018 Macmahon Holdings Pty Ltd 16