Macmahon Holdings Limited · ASX:MAH
Macmahon — Investor Presentation (August 2022)
28 slides from Macmahon's investor presentation, Aug 23, 2022
Slide 1: Full Year Results FY22
| | MACMAHON Full Year Results FY22
Slide 2: FY22 Financial Highlights
FY22 Financial Highlights Record underlying operating earnings delivered Revenue Underlying EBITDA1 Underlying EBIT(A)1 (Record) (Record) FY23 Secured Revenue5 $1.7bn p 26% $291.4m p 17% $100.8m p 5% $1.45bn 17.2% margin 5.9% margin Underlying NPAT(A)1 Underlying operating cash flow2 Total Dividend
Slide 3: FY22 Key Highlights
FY22 Key Highlights Execution of new project starts and existing contracts, managing challenging industry conditions, Well positioned for FY23. Financials Surface Mining Underground Mining Mining Support Outlook Services • Continued growth in revenue • Executing on contract • Increasing scale of • I
Slide 4: People
People Trained over 1,000 people to support our growth and industry Safety and Wellbeing • TRIFR decreased from FY21 at 6.4 to 4.8 (FY22) Injury Frequency Rates and Workforce FTE • Targeting further improvement in FY23: • Training our front line leaders in our Integrated Management System (IMS) 7,84
Slide 5: People Resourcing
People Resourcing Labour Challenges Highlights • Commenced five new projects since March 21 in challenging COVID-19 environment and tight-skilled and highly competitive labour market • Closure of Mt Morgans mine resulted in the redeployment of team into other projects with +98% retained% acceptances
Slide 6: Key Projects
Key Projects Diversified client portfolio CLIENT END (UNLESS EST. MINE COST CLIENT PROJECT COMMODITY SINCE EXTENDED) END DATE1 CURVE1 Tropicana, WA Gold 2012 Life of mine 2031 Telfer, WA Gold 2016 Life of mine 2026 Byerwen, QLD Met Coal 2017 Nov 2023 2069 Batu Hijau, Indonesia Copper / Gold 2017 Lif
Slide 7: Sustainability
Sustainability Focused on improving disclosure and performance Baseline Developing FY22 GHG emissions Land rehabilitated Tyre Recycling Environment Environmental ESG Framework 169 hectares in Program (tonnes per CO2-e) Footprint Scope 1: 15,125 Australia 1,267 tonnes Project Scope 2: 1,246 48 hectar
Slide 8: FY22 Results
| | MACMAHON FY22 Results
Slide 9: Financial Performance
Financial Performance Revenue ($m) Underlying EBIT(A) ($m) 1,800 1,698 120 1,600 101 (Record) 1,380 92 96 1,351 100 1,400 1,200 1,103 80 75 1,000 710 60 800 42 600 40 400 20 200 1 1 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Underlying EBITDA ($m) 17.2% Underlying EBIT(A) Margin 291 (Record)
Slide 10: Guidance Performance
Guidance Performance Achieved guidance for 5th consecutive year Revenue ($m) Underlying EBIT(A) ($m) Guidance 105 – 125 Guidance 1,600 – 1,700 Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance 620-680 950–1,050 1,300–1,400 1,300–1,400 1,600–1,700 40-50 70-80 8
Slide 11: Capital Management
Capital Management Underlying EBITDA cash conversion and ROACE Includes one Underlying operating cash flow1 ($m) off of $35M Return on Average Capital (ROACE)2 VAT refunds in Indo 300 108% 110.0% 17.2% 16.5% 92% 93% 15.4% 15.6% 86% 250 90.0% 13.9% 218 269 270 70% 200 70.0% 150 50.0% Impacted 127 by
Slide 12: Underlying Profit and Loss
Underlying Profit and Loss $ Millions Restated1 1H22 2H22 FY22 Change FY21 • Revenue increased by 26% Revenue 1,351.5 809.7 888.3 1,698.0 p 26% ‒ Organic growth along with the ramp up of existing projects (Gwalia, Julius and Underlying EBITDA 2 249.9 138.7 152.7 291.4 p 17% Foxleigh) and commencemen
Slide 13: Revenue Diversification
Revenue Diversification Continued improvement in business revenue mix 13 30 June 2022 Full Year Results
Slide 14: Cash Flow and CapEx
Cash Flow and CapEx Underlying Operating Cash Flow $269.8m Operating Cash flow • Strong underlying operating cash flow of 291.4 (21.6) $269.8m delivered (36.6) • EBITDA cash conversion of 92.6%, (5.0) (279.0) impacted by increased working capital for project start-ups and inventory increases to proa
Slide 15: Balance Sheet
Balance Sheet Solid financial position $ Millions Restated FY22 FY21 • Strong financial discipline during high growth phase: Cash 182 198 ‒ Net Debt / EBITDA of 0.7x remains below target range of 1.0x Receivables 253 322 ‒ Gearing 27.8%, increased on FY21 due to new project capex and additional inve
Slide 16: Strategy and Outlook
Strategy and Outlook
Slide 17: Strategic Overview
Strategic Overview Building a sustainable diversified scalable business Improve Invest Expand Diversify Value Margins & execution Relevance & competitive advantage Growth in current markets Build scalability Grow shareholder value • Systems and processes • Advanced contractor • Additional services w
Slide 18: Diversify and Expand
Diversify and Expand Grow adjacent lower capital intensity services to improve long term ROACE 3% 11% 22% 25% FY211 FY221 Target1 64% 75% EBITDA EBIT(A) ROACE EBITDA EBIT(A) ROACE EBITDA EBIT(A) ROACE Margin Margin Margin Margin Margin Margin 18.5% 7.1% 15.6% 17.2% 5.9% 13.9% p 20% p 8% p 15% • The
Slide 19: Order Book $5.0bn & Tender Pipeline $8.4bn
Order Book1 $5.0bn & Tender Pipeline $8.4bn Order book provides a high level of secured revenue Tender Pipeline $5.0bn – Order Book1 • $1.45bn1 of FY23 revenue secured • $5.0bn1 order book secured – represents 3x FY22 19% revenue • Order book excludes short term civil and underground churn work, whi
Slide 20: Priorities and Outlook
Priorities and Outlook FY23 PRIORITIES FY23 GUIDANCE1 • Optimise operations and deliver safety improvements • Effectively manage COVID-19 Revenue EBIT(A) • Finalise Batu Hijau Phase 8 extension • Deliver earnings growth from recent growth capital investment • Accelerate ROACE growth by continuing to
Slide 21: Thank You
Thank You CONTACT Mick Finnegan CEO & MD mfinnegan@macmahon.com.au Ursula Lummis CFO ulummis@macmahon.com.au Donald James CCO djames1@macmahon.com.au www.macmahon.com.au 21 30 June 2022 Full Year Results
Slide 22: Appendix
| | MACMAHON Appendix
Slide 23: Corporate Overview
Corporate Overview Capital Structure Share Price1 (ASX:MAH) $0.170 Fully paid ordinary shares (m) 2,155 Market Capitalisation1 $366.4m Cash (30 June 22) $198.0m Net Debt (30 June 22) $215.5m Enterprise Value $581.9m Net Tangible Assets per share (30 June 22) $0.252 Analyst Coverage Argonaut – Ian Ch
Slide 24: Corporate Overview - Directors
Corporate Overview - Directors MICHAEL FINNEGAN BRUCE MUNRO ALEX RAMLIE Managing Director Independent, Non-Executive Director Non-Independent, Non-Executive Director and Chief Executive Officer EVA SKIRA ARIEF SIDARTO HAMISH TYRWHITT DENISE McCOMISH Independent Non-Executive Chair Non-Independent, N
Slide 25: Map of Operations
Map of Operations NORTHERN MALAYSIA TERRITORY INDONESIA TomAL . as 1 SURFACE ‘1 UNDERGROUND 0 Langkawi Tremi WESTERN AUSTRALIA QUEENSLAND 2 SURFACE atu Haw Mortabe Jorma. res 1_ UNDERGROUND Tujuh Bukit 1 MINING SUPPORT SERVICES. 2 SURFACE 5 SURFACE re) Byerwen oe Dawson South king of tre Hie Me Mora
Slide 26: Cash Flow
Cash Flow $ Millions FY21 Previously Restated1 FY22 Stated FY21 Underlying EBITDA 249.9 249.9 291.4 Movement in receivables (37.1) (37.1) (77.8) Movement in inventory 9.0 9.0 (24.9) Movement in payables and provisions 50.9 50.9 83.9 Cash payments for SaaS customisation costs - (3.7) (5.0) Other (3.7
Slide 27: Reconciliation of Non-IFRS Financial Information
Reconciliation of Non-IFRS Financial Information $ Millions Restated1 FY22 FY21 Profit for the year (as reported) 75.4 27.4 Add back: • Share Based Payment expense 0.9 0.1 • M&A costs and earn-out related to previous acquisitions 3.2 22.3 • Customer contracts amortisation (A) 0.9 7.2 • SaaS customiz
Slide 28: 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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