Macmahon Holdings Limited · ASX:MAH
Macmahon — FY2015 Earnings Presentation
23 slides from Macmahon's earnings presentation, Aug 28, 2015
Slide 1: Full Year Results 28 August 2015
For personal use only FULL YEAR RESULTS 28 AUGUST 2015
Slide 2: Overview
Overview For personal use only Challenging market conditions persist as mining companies continue to cut costs resulting in less new work and tighter margins FY15 consolidated loss after tax of $217.9 million, primarily due to impairments taken on equipment, goodwill and inventory assets PBT f
Slide 3: Building a more resilient business
Building a more resilient business For personal use only New, streamlined operating model implemented Improved organisational structure - reduced layers of management Major cost reduction program successfully executed Consolidation of Perth offices into single ‘world-class’ facility Bankin
Slide 4: Operational Performance
Operational Performance For personal use only Key project performing to expectations: – Tropicana operations performed well in second half – on track for further improvement Revenue and margins impacted by: – Early contract terminations due to financial pressures facing mine owners – Significant
Slide 5: Contract Awards and Extensions
Contract Awards and Extensions For personal use only Australia: – A 3 year contract extension by Rio Tinto to continue tailings dam management operations at Argyle Diamond Mine in WA – Awarded additional raise-drilling contracts at Olympic Dam – Short-term underground mining services contracts at:
Slide 6: Financial Results
For personal use only FINANCIAL RESULTS
Slide 7: Income Statement
Income Statement For personal use only $m 2015 2014 Change Total revenue1 from continuing operations 660.2 1,015.9 (35%) EBITDA (from continuing operations)2 97.1 171.0 (43%) EBIT (from continuing operations)3 37.4 69.3 (46%) Asset write-downs and onerous lease provision (233.8) (2.0) Interest (23.7
Slide 8: Cash Flow
Cash Flow For personal use only $m 2015 2014 Strong operating cash EBITDA (consolidated) 100.8 172.9 flow of $53.8 million Net interest paid (10.8) (15.9) despite challenging market Income taxes paid (1.9) (8.7) Net capital Working capital and provisions (34.3) (70.4) expenditure restricted Oper
Slide 9: Balance Sheet
Balance Sheet For personal use only $m 2015 2014 Change Current assets 382.6 354.6 28.0 Non-current assets 141.7 469.1 (327.4) Total assets 524.3 823.7 (299.4) Net assets 221.8 432.2 (210.4) Net cash 74.2 (55.9) 130.1 Gearing (33.5%) 12.9% Strong cash position at 30 June 2015 Significant asset w
Slide 10: People and Safety
For personal use only PEOPLE AND SAFETY
Slide 11: People
People For personal use only Group Employee Numbers Employees by division 4,791 Surface 3,536 3,495 Corporate 2,467 International 1,295 Underground 2011 2012 2013 2014 2015 Major organisational restructure implemented – designed to deliver lean, fit- for-purpose service delivery to sites Focus o
Slide 12: Safety
Safety For personal use only 9.9 9.9 8.5 KEY MILESTONES (per million hours Frequency rate worked) 5.4 Improved TRIFR ratios 4.0 1.2 1.1 0.9 0.9 Kanthan, Malaysia operating 10 years 0.3 LTI free 2011 2012 2013 2014 2015 Eaglefield operating over 8 years LTI free TRIFR (Total Recordable Injury F
Slide 13: Strategy and Outlook
For personal use only STRATEGY AND OUTLOOK
Slide 14: Current Environment
Current Environment For personal use only Challenging market conditions are expected to persist for the near to medium term Iron-ore price remains depressed, however production is forecast to increase in coming years Gold price is volatile – although MAH exposed to one of the lowest cost produ
Slide 15: MAH strategic priorities
MAH strategic priorities For personal use only Delivering sustainable profits and returning value to shareholders Increasing work winning conversion rate by: – Lowering cost base – Streamlining systems and processes – improving productivity – Selective tendering – Focusing on early client engage
Slide 16: Appendices
Appendices For personal use only Board of directors Management team Where we operate Revenue and order book diversification
Slide 17: Board of Directors
Board of Directors For personal use only Jim Walker Giles Everist Eva Skira Vyril Vella Sy and Dyk Non-Executive Independent Independent Non-Executive Chief Executive Officer Director, Non-Executive Non-Executive Director and Managing Director Chairman Director Director Mr Walker has over 40 Mr Ever
Slide 18: Management team
Management team For personal use only Sy and Dyk Greg Miller Mark Ruston Michael Finnegan Chief Executive Officer and General Manager General Manager General Manager Managing Director Underground Surface East and Africa Surface West and SE Asia Mr van Dyk was appointed as Mr Miller holds a Bachelor
Slide 19: Management team (continued)
Management team (continued) For personal use only Brenton Perry Peter Truscott Coogee Barbuzza Roger Hughes General Manager General Manager General Manager General Manager Construction Plant & Maintenance BD and Estimating HR and HSEQ Mr Perry holds a Bachelor of Mr Truscott holds a Bachelor of Mr B
Slide 20: Where we operate
Where we operate For personal use only Macmahon 2015 Full Year Results 20
Slide 21: Revenue and Order book
Revenue and Order book For personal use only Revenue by client Revenue by commodity Revenue by location Macmahon 2015 Full Year Results 21
Slide 22: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the business. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether circumstances actually occ
Slide 23: Thank you
Thank you For personal use only macmahon.com.au