Macmahon Holdings Limited · ASX:MAH
Macmahon — H1 2014 Earnings Presentation
27 slides from Macmahon's earnings presentation, Feb 18, 2014
Slide 1: Half Year Results 2014
Macmahon Holdings Limited For personal use only Half Year Results 2014 18 February 2014
Slide 2: Half Year Highlights
Half Year Highlights For personal use only Creditable performance in a difficult market Revenue of $574.9 million Net profit after tax of $19.4 million Exit from construction now complete EPS from continuing operations of 1.4 cps Order book of $2.8 billion consisting of long- term contra
Slide 3: Operational Update: Surface Mining
Operational Update Surface Mining For personal use only Continued focus on people and productivity improvements at Christmas Creek and Tropicana Rollout of new technology continuing at Tropicana: • Caterpillar MineStar system introduced in August 2013 • Third excavation fleet delivered in July 2
Slide 4: Operational Update: Underground and International Mining
Operational Update For personal use only Underground Mining Operations expanded at Olympic Dam Works at Ranger 3 Deeps progressing well Future works at George Fisher currently under negotiation Insert photo Argyle continuing on reduced scope of works Shotcreting approaching 7 years LTI fre
Slide 5: Tavan Tolgoi Contract Update
Tavan Tolgoi Contract Update For personal use only $US22 million of PPE required to be purchased from the client under the terms of the contract Proposal currently being pursued to offset PPE purchase against outstanding progress payments to reduce trade debtors and pay outstanding balance Ter
Slide 6: Map of Operations
6 For personal use only Map of Operations
Slide 7: People and Safety
People and Safety For personal use only Group employee numbers Employee numbers reduced following 5000 completion of various projects 4000 3000 Leadership and up-skilling programs a key 4,791 2000 focus 3,021 3,536 3,495 2,885 1000 Continued commitment to graduate, 0 Jun-10 Jun-11 Jun-12 Jun-1
Slide 8: Financial Highlights
For personal use only Financial Highlights
Slide 9: Income Statement
Income Statement For personal use only $ millions Dec-13 Dec-12 Change Total revenue (including joint ventures) from continuing operations 550.1 533.3 3% Earnings before interest and tax (EBIT) from continuing operations 37.1 43.2 (14%) Interest (8.7) (10.8) (19%) Profit before tax from continuing o
Slide 10: Profit Waterfall
10.0 20.0 30.0 0.0 -30.0 -10.0 -20.0 10 For personal use only H113 NPAT H113NPAT (37.6) H113 NPAT from discontinued operations (60.7) H113 NPAT from continuing Note: Numbers may not add due to rounding 23.1 operations Mining - Volume 1.2 Profit Waterfall Mining - Margin 0.1 Mongolia Doubtful Debt (6
Slide 11: Mining Performance
Mining Performance For personal use only $ millions Dec-13 Dec-12 Change Total revenue of $550.1 million - up 3% on pcp Segment revenue 550.1 533.3 3% Significant increase in revenue from Christmas Profit before tax 33.5 38.4 (13%) Creek and Tropicana Profit before tax margin % 6.1% 7.2% Profi
Slide 12: Discontinued Operations
Discontinued Operations For personal use only $ millions Dec-13 Dec-12 Revenue of $24.8 million relates to the Trangie Segment revenue 24.8 503.6 Nevertire Irrigation Scheme project (completed) Profit / (loss) before tax 0.5 (110.1) and the Hong Kong XRL-822 tunnel project (now Profit / (loss) aft
Slide 13: Cash Flow
Cash Flow For personal use only $ millions Dec-13 Dec-12 Group cash from operations - net outflow of Operating cash flow (13.6) 77.5 $13.6 million driven by residual construction Proceeds from sale of assets1 28.8 37.6 outflows of $50.1 million Capital expenditure2 (59.3) (80.4) Prior period net
Slide 14: Normalised Cash Flow
Normalised Cash Flow For personal use only 1-Jul-13 to 31-Dec-13 1-Jul-12 to 31-Dec-12 $ millions Continuing Discontinued Total Continuing Discontinued Total Reported Operating Cash Flows 36.5 (50.1) (13.6) 93.4 (15.9) 77.5 Less: Delayed debtors collected in July (18.9) (1.1) (20.0) (7.0) (57.0) (64
Slide 15: Balance Sheet and Gearing
Balance Sheet and Gearing For personal use only $ millions Dec-13 Jun-13 Change Gearing 25.7% 23.1% Current assets 379.4 435.3 (13%) 15.4% Non-current assets 487.3 509.2 (4%) Total assets 866.8 944.5 (8%) Net assets 423.8 401.2 6% Jun-10 Jun-11 Jun-12 Jun-13 Dec-13 Net debt 108.8 61.7 76% -12.9% -12
Slide 16: Strategy and Outlook
For personal use only Strategy and Outlook
Slide 17: Strategy – Four Pillars of Success
Strategy – Four Pillars of Success For personal use only Improved Safety Performance Business Improvement Program Simplified safety polices and procedures Rapid sourcing initiative delivering implemented annualised savings of $6 million p.a. Visible safety leadership – on site mentoring Stra
Slide 18: Business Improvement Program
Business Improvement Program For personal use only Business improvement program formalised through creation of the REACH program Review of operations, support services and corporate functions underway Value-driver mapping completed Rapid Sourcing initiative completed – delivering annualised
Slide 19: Outlook
Outlook For personal use only Iron ore production Challenging market conditions continue Margin pressure continues as clients seek to reduce costs Mining production forecast to increase over the next 4 years International outlook remains positive as strong economic growth continues in Asia a
Slide 20: Order Book
Order Book For personal use only Order book and run-off ($ million) Order book by division 157 100 344 44 703 703 13 3,167 2,826 1,968 2,683 1,792 1,779 1,530 1,079 Jun-10 Jun-11 Jun-12 Jun-13 Dec-13 2014 run-off 2015 run-off 2016+ run-off Expected contract extensions/renewals (includes Eaglefield/L
Slide 21: Summary
For personal use only Summary
Slide 22: Summary
Summary For personal use only Creditable result in a difficult market Pic here Exit from construction now complete Business improvement program delivering cost savings Order book of $2.8 billion Greater focus on business development and business improvement Full year revenue expected to
Slide 23: Macmahon Holdings Limited Half Year Results 2014
Macmahon Holdings Limited For personal use only Half Year Results 2014 18 February 2014
Slide 24: Major Projects and Key Clients
Major Projects and Key Clients For personal use only Project Value Started Christmas Creek (WA) $1.8 billion 2012 Orebody 18 / Wheelara (WA) $975 million 2006 Tropicana Project (WA) $900 million 2012 Eaglefield / Lenton (QLD) $550 million 2003 Olympic Dam (SA) $687 million 2004 Argyle Mine (WA) $376
Slide 25: Revenue and Order Book Diversity
Revenue and Order Book Diversity For personal use only HY14 revenue by client HY14 revenue by commodity HY14 revenue by location Order book by client Order book by commodity Order book by location 25
Slide 26: 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
Slide 27: Macmahon Holdings Limited Half Year Results 2014
Macmahon Holdings Limited For personal use only Half Year Results 2014 18 February 2014