Slide 1: Macmahon 2012 Full Year Results
For personal use only Macmahon 2012 Full Year Results 20 August 2012
Slide 2: Highlights
Highlights For personal use only Nick Bowen Chief Executive Officer 2
Slide 3: A Record Year
A Record Year For personal use only EPS and DPS (cps) 2 Revenue ($m) NPAT ($m) EPS DPS 56.1 1,871 9.2 48.8 7.7 1,486 38.8 37.9 1,254 1,254 1,244 5.5 5.3 5.2 4.0 3.1 3.0 17.2 1.5 - 2008 2009 2010 2011 2012 2008 2009 2010 2011* 2012 2008 2009 2010 2011* 2012 33 *Based on underlying figures
Slide 4: Mining Overview
Mining Overview For personal use only Record revenue and profit Margins improved through better equipment utilisation, production performance and increased offshore activity Record project wins and extensions totalling $1.8 billion Engineering business established. CSA shaft extension projec
Slide 5: Construction Overview
Construction Overview For personal use only Record revenue, increased profit – but still room for margin improvement Over $1.2 billion in projects won Secured projects with new customers, including Fortescue Metals Group and INPEX Acquisition of remaining 40% of MVM – now trading as Macmahon
Slide 6: Project Wins
6 For personal use only Project Wins
Slide 7: Order Book
Order Book For personal use only Order book of $3.1 billion Record year for winning work - $3.0 billion in new contracts and extensions Order book reconciliation $ million Opening balance at 30 June 2011 2,012.8 $1.4 billion of revenue secured for FY13 Less: Work completed (1,870.7) With exp
Slide 8: People
People For personal use only Group Employee Numbers Employee Breakdown Corporate 3% International 8% 4,791 Construction 36% 3,628 3,536 3,098 3,021 Mining 53% 2008 2009 2010 2011 2012 Employee numbers at record levels on the back of company growth Indigenous employment increased from 4.2% to 5.5
Slide 9: Safety
Safety For personal use only Funding Facilities Injury Frequency Rates Safety performance challenging during (per million hours worked) periods of rapid growth 12.9 83% of projects LTI free No serious or disabling injuries occurred 7.7 7.4 across the business 2.0 4.6 3.5 Supervisor safety le
Slide 10: Financials
Financials For personal use only Theresa Mlikota Chief Financial Officer 10
Slide 11: Record Profit
Record Profit For personal use only $ millions FY 12 FY 11 Change Total revenue 1,870.7 1,254.4 49% EBIT 89.6 8.2 Interest (14.4) (12.0) 20% Profit/(loss) before tax 75.2 (3.8) Tax (expense)/benefit (19.2) 1.1 Add back: non-controlling interest - 3.8 Net profit after tax & non-controlling interest 5
Slide 12: Profit Waterfall
12 For personal use only $ Millions 10 20 30 40 60 70 80 50 0 FY11 NPAT 1.0 Significant 37.8 items FY11 Underlying 38.8 FY11 NPAT Volume - 9.7 Construction Margin - Profit Waterfall 2.5 Construction Volume - 15.6 Mining Margin - 5.4 Mining Other costs (10.3) Interest (1.8) Tax (1.8) Minority (2.0) i
Slide 13: Delivering Value
Delivering Value For personal use only Revenue ($m) and EBIT Margin NPAT ($m) and NPAT Margin 56.1 6.0% 3.9% 1,871 5.3% 48.8 3.0% 3.1% 3.0% 4.4% 1,486 38.8 37.9 4.8% 1,254 1,254 1,244 1.2% 17.2 2.0% 2008 2009 2010 2011* 2012 2008 2009 2010 2011* 2012 *Underlying EBIT Margin *Underlying NPAT and NPAT
Slide 14: Mining Performance
Mining Performance For personal use only $ millions FY 12 FY 11 Change Record profit before tax of $72.3 million, up Segment revenue 880.1 674.4 31% 41% on underlying 41% Underlying PBT 72.3 51.1 Mining revenue increased by 31%, with Significant item - (8.5) increased scope of works at exist
Slide 15: Construction Performance
Construction Performance For personal use only $ millions FY 12 FY 11 Change Major growth in revenue, up 71% to $990.7 Segment revenue 990.7 580.0 71% million 89% Underlying PBT 25.9 13.7 Margins increased to 2.6% but remain Significant item - (49.4) below target levels Reported PBT 25.9 (35
Slide 16: Cash Flow
Cash Flow For personal use only $ millions FY 12 FY 11 Change Facilities Headroom EBITDA 167.8 65.3 157% Net interest paid (9.2) (12.0) (23%) Income tax (paid) / refund (4.8) (0.9) Working capital and provisions (67.0) 40.0 (decrease) / increase $189 m Operating cash flow 86.8 92.4 (6%) Cash on hand
Slide 17: Gearing
Gearing For personal use only $ millions FY 12 FY 11 Change Gearing 23.1% Current assets 528.9 331.6 59% 14% 27% 11.6% Non-current assets 460.1 354.2 30% Total assets 989.0 685.7 44% 7.1% 0.6% Net assets 356.8 323.1 10% 2008 2009 2010 2011 2012 Net debt/(cash) 82.6 (39.5) 59% Gearing (%) 23.1 (12.2)
Slide 18: Mongolian Funding Update
Mongolian Funding Update For personal use only Macmahon Investment and Funding update Macmahon investment - $40 million to date – including $24 million in yellow goods Equipment risk protected with PRI and ‘put option’ back to client Establishment of stand-alone, non-recourse funding facility
Slide 19: Improved Shareholder Returns
Improved Shareholder Returns For personal use only EPS and DPS Funding Facilities Return on Equity (cents per share) 19.6% 9.2 16.5% 7.7 11.3% 10.7% 5.5 5.3 5.2 5.6% 4.0 3.1 3.0 1.5 - 2008 2009 2010 2011* 2012 2008 2009 2010 2011* 2012 *underlying EPS *underlying ROE Earnings Per Share Dividend Per
Slide 20: Dividend Reinvestment Plan
Dividend Reinvestment Plan For personal use only Fully franked final dividend of 2.5 cents per share declared, paid on 17 October 2012 Total dividends for the year – 4.0 cents per share, fully franked Payout ratio of 52.7% With growth projected for the FY13, DRP reinstated DRP participatio
Slide 21: Strategy & Outlook
Strategy & For personal use only Outlook Nick Bowen Chief Executive Officer 21
Slide 22: Market Outlook
Market Outlook For personal use only Current market conditions Some future uncertainty with growth slowing in China, Euro debt crisis and lower commodity price outlook Timing and level of domestic expansion projects has slowed Outlook for Macmahon Mining tendering pipeline remains robust due t
Slide 23: Market Opportunities
Market Opportunities For personal use only Coal LNG, ports, roads Coal, roads, rail Gold, base metals Iron ore, roads, rail, ports Roads, rail 23
Slide 24: Robust Business Model
Robust Business Model For personal use only 24
Slide 25: Business Strategy
Business Strategy For personal use only Mining Pursue long-term contracts with key customers Newly established Engineering Business providing EPC delivery of materials handling infrastructure to both underground and surface market Deliver expansion projects Leverage end-to-end service offeri
Slide 26: Strategic Targets
Strategic Targets For personal use only Commitment Strategic Target 2012 Delivery 2013 Outlook EPS Growth 20% year on year 45%* 20% Margins 4% 3% Improve on 2012 ROE 20% 16.5% Improve on 2012 Dividends 50% payout ratio 52.7% 50% 23.1% Gearing Under 35% Under 35% 7.1% if adjusted for late receipts Or
Slide 27: 2013 Outlook
2013 Outlook For personal use only Strong forward order book of $3.1 billion $1.4 billion of revenue secured for FY13, including expected contract extensions, increases to $1.7 billion Opportunities for growth remain robust – Mining contract extensions expected with long-term clients, client
Slide 28: For personal use only
28 For personal use only
Slide 29: Order Book Diversity
Order Book Diversity For personal use only Diversified client base Diversified commodity exposure Diversified contract styles Diversified order book reflects a robust business model 29
Slide 30: IFRS Reconciliation
IFRS Reconciliation For personal use only In millions of AUD, unless otherwise stated FY 12 FY 11 Reported revenue is adjusted to include net revenues from joint ventures: Reported Revenue 1,661.5 1,089.4 Revenue from joint ventures (net of cost recoveries) 209.3 165.0 Total Revenue 1,870.7 1,254.4
Slide 31: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the mining and construction businesses. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether