Macmahon Holdings Limited · ASX:MAH
Macmahon — FY2009 Earnings Presentation
20 slides from Macmahon's earnings presentation, Aug 19, 2009
Slide 1: 2009 Full Year Results
For personal use only 2009 Full Year Results Ross Carroll - Chief Financial Officer Nick Bowen - Chief Executive Officer Presentation outline Year in review Financial overview Strategy FY10 outlook 2 1
Slide 2: Summary
Summary For personal use only Steady end to a disappointing year despite record revenues of $1.49bn: − NPAT of $17.2m within guidance but significantly below FY08 result − Results severely impacted by global financial crisis and one off issues − Significant project deferrals and closures in mining
Slide 3: Order book impacted by economic downturn
Order book impacted by economic downturn For personal use only Order book ($ million) 2,500 2,000 , 1,500 172 2,138 1,000 2,005 1,412 1,218 500 925 - 2005 2006 2007 2008 2009 Contracts won post 30 June 09 Quality order book in place Government contracts make up 46% 5 Rail portfolio increasing Ji
Slide 4: East coast construction market expanding
East coast construction market expanding For personal use only Hale Street Bridge, Brisbane City Council - Queensland 7 Growth in water infrastructure Stirling Dam, Water Corporation – Western Australia 8 4
Slide 5: Resource infrastructure – iron ore the driver
Resource infrastructure – iron ore the driver For personal use only Rapid Growth Project 5, BHP Billiton Iron Ore - Western Australia 9 Underground mining showing signs of recovery Olympic Dam, BHP Billiton – South Australia 10 5
Slide 6: Open cut mining – demand for bulks rebounding
Open cut mining – demand for bulks rebounding For personal use only Orebody 18, BHP Billiton Iron Ore – Western Australia 11 Mining services market growing Australian Raise Drilling (ARD) & Combined Resource Engineering (CRE) 12 6
Slide 7: Outstanding safety performance
Outstanding safety performance For personal use only Group p safety ypperformance 40% improvement p in TRIFR 20 18.6 18 60% improvement in LTIFR 16 14.1 14 12.7 12.9 12 Exceeding industry LTIFR 10 7.4 average across both mining and 8 6 construction 4 2.1 1.9 2.0 0.7 0.8 2 0 Winner of the saf
Slide 8: Financials: 2009 was a challenging year
Financials For personal use only Ross Carroll, Chief Financial Officer 15 2009 was a challenging year $ millions 2009 2008 Change % Revenue 1,486 1,244 19% EBIT 29.8 74.7 (60%) Interest (8.9) (7.5) (19%) Profit before tax 20.9 67.2 (69%) Tax (2.7) (17.8) 85% Net profit after tax & minorities 17.2 48
Slide 9: Construction growth driven by resource work
Construction growth driven by resource work For personal use only $ millions 2009 2008 Change % Revenue 841 628 34% PBT 29.6 38.1 (22%) PBT margin % 3.5 6.1 (42%) Capex 3.7 5.4 (31%) Order Book 884 974 (9%) Employees 1,311 1,137 15% Revenue increase of 34%, underpinned by several resource infrastr
Slide 10: Construction driving revenue growth
Construction driving revenue growth For personal use only Revenue ($ million) Increase in revenue from resource 1,600 1,486 related infrastructure projects 1,400 1,244 Mining impacted significantly in 1,200 43% 966 second half by the downturn in the 1,000 resource sector 864 50% 800 637 58% Go
Slide 11: Profit impacted by one-off costs
Profit impacted by one-off costs For personal use only Net profit in line with April 2009 guidance NPAT – NPAT margin (%) Tax of $2.7 million paid, represents an 60 5 0% 5.0% effective tax rate of 12 12.7% 7% due to: 50 3.9% 3.5% 4.0% lower profits 3.2% 40 3.0% tax concessions for R&D 2.5% $
Slide 12: Business recovery driving improved cash flow
Business recovery driving improved cash flow For personal use only Cash at hand movement ($m) 180 160 140 120 100 80 60 40 20 0 23 Managing the business for growth Debt facilities Following capital raising, term debt and bank guarantee facilities were renegotiated Limit lowered by $25 million to
Slide 13: Strategy and outlook
Strategy and outlook For personal use only Nick Bowen, Chief Executive Officer 25 Macmahon’s strategic transformation 2000-2004 2005-2008 2009-2010+ Strong mining / growth in Tier 1 construction & Product Strong mining construction mining WA & emerging eastern Australian wide and Geography Western A
Slide 14: Sound strategy in place
Sound strategy in place For personal use only • Established market position as a leading Long contractor throughout Australia Term • Profitable overseas operations with reputable blue-chipp clients • Large infrastructure projects – in strategic partnerships Medium • Position Mining Business for uptu
Slide 15: Positive signs emerging for Mining Outlook
Positive signs emerging for Mining Outlook For personal use only Iron ore demand remains robust Conditions are improving on the back of price i increases iin b base metals t l and d stronger t growth th in China’s commodity imports Macmahon has seen a recent increase in tendering enquiries, si
Slide 16: Over $1 billion secured for FY10
Over $1 billion secured for FY10 For personal use only Order book run-off ($ million) 1800 1600 89 172 1400 973 1200 1000 $m 800 ` 1,412 600 69 400 232 522 14 200 206 0 FY09 Run off FY10 Run off FY11 Run off FY12+ Contracts won post 30 June 09 31 Macmahon positioned well for 2010 2009 has been a d
Slide 17: Appendix
For personal use only 2009 F Fullll Y Year R Results lt Ross Carroll - Chief Financial Officer Nick Bowen - Chief Executive Officer Appendix 17
Slide 18: Appendix - Who we are / cash flow
Appendix - Who we are For personal use only Overseas Mining Construction 35 Appendix – cash flow Cash Flow Dec 07 Dec 06 $ millions 2009 2008 Change % Operating cash flow 53.4 88.3 (40%) Capital expenditure* (43.0) (47.0) 9% Component capex (13.3) - - Business systems (11.1) (7.3) (52%) Disposals 3.
Slide 19: Appendix – balance sheet
Appendix – balance sheet For personal use only Balance Sheet $ millions 2009 2008 Change % C Current t assets t 313 335 (6%) Non current assets 320 296 8% Total assets 633 630 1% Net assets 311 251 24% Net debt 2 29 (93%) Gearing (Net debt/equity) % 0.6 11.6 (95%) Current ratio 1.4 1.3 8% Balance
Slide 20: Appendix - order book
Appendix - order book* Duration of contract (years) % Style of contract % For personal use only Fixed >5 7% 16% SOR <2 41% 38% 3 - 5 years 33% Alliance 2 - 3 years 52% 13% Customer % Commodity % Rio Tinto 14% IIron Ore O BHP Billiton 23% 19% Government Government 46% 46% Diamonds Other 15% 16% Lafar