Slide 1: Continuing to Deliver
“Continuing to Deliver” MACMAFHON MINING & CONSTRUCTION Investor Presentation - December 2006 Half Year Result
Slide 2: Presentation Outline
Q MACDMAHON ___ Presentation Outline « December 2006 Half Year Results « Balance Sheet and Cash Flow » Operations » Order Book « Strategy and Outlook
Slide 3: December 2006 Half Year Results
Q MACDMAHON
Slide 4: Half Year Highlights
Q MACDMAHON _ | Half Year Highlights « Record Revenue of $476.5 million * Record EBIT of $28.5 million * Record Profit After Tax of $25.8 million « Higher margins and earnings: « Improved suite of contracts * Improved operating efficiency in Mining « Interim dividend of 1 cent (0.5 cents: 2005) = Re
Slide 5: Key Achievements
Q MACDMAHON | Key Achievements « Continued Revenue and Profit Growth » Acquired ARD and CRE * Sold Allplant Hire « Achieved 6% EBIT Margin « Successful entry into NSW construction market = $880 million of new contracts and extensions
Slide 6: Financial Summary
sachin _____ Financial Summary $million unless stated 31 Dec 06 31 Dec 05 Change Group Revenue 442.9 370.0 20% Joint Venture 33.6 35.6. (6)% Total Revenue 476.5 405.7 17% EBIT 28.5 20.5 39% EBIT Margin 6.0% 5.1% 18% Net Profit from Contracting 14.7 11.7 26% Net Profit from sale of Allplant 11.1 - -
Slide 7: Profit Composition
Q MACDMAHON $ Million 40 35 30 25 20 15 10 25.4 5.3 . Profit Composition 11.1 25.8 Construction Mining Allplant Corporate (discontinued operation) EBIT from Contracting Net Finance Costs Income Tax Expense Minority PAT Allplant Interests from (sale profit) Contracting Reported PAT
Slide 8: Revenue and EBIT
MACDMAHON Revenue EBIT +009 se 908 a5 458 200 46 700 35 _ 600 act 30 3 5 5 2 os § 285 = 2 5 ° ATS Fe 400 243 406 20 118 300 ‘8 a9 281 200 16 78 100 5 ms 6a ® e 2003 2004 2008 2006 2007 2003 2004 2005 2006 2007 mot BH mH Ha
Slide 9: Margins and Profit After Tax
Q MACDMAHON Margins Profit After Tax 30 42 157 40 28 9. 10 4 g 8 20 B2 3 5 8 6 21s 102 2 6 o 84 1? 4 44 43 10 36 62 2 6 ae a7 24 24 oO 2003 2004 2008 2006 M1 2007 2003 2004 2005 2006 2007 “O-EBIT “BR ESITDA mH BH
Slide 10: PAT Margin and Earnings Per Share
Q MACDMAHON PAT Margin Earnings Per Share 38 6 ca - 5 25 z 4 39 . 2 S £ 35. o gs 3 8 Sis 2 4 ; 4 05 o oO 2008 2004 2008 2006 2007 2009 2008 2008 2006 2006 2007 2007 Reported Reported PAT Margin
Slide 11: Return on Equity and Shareholder Returns
Q MACDMAHON Return On Equity sing Shareholder Returns Dividend 1 os 16 159 18a 2 4 4G AS: 2 132 16 45 Pa) . i, é ‘ 4 q 5 4 o8 LS : 2 ° a 2003 2004 2005 2006 2007 2004 2005 2006 Ha 2007 me R06 interim m Final 10
Slide 12: Le ee Q ye
Ba Le ee Q ye » MACDMAHON NkIWe # GeWSTaUETN ae Ly EE, 7 ae 3 : —
Slide 13: Half Year Balance Sheet
- Half Year Balance Sheet § million unless stated December 2006 June 2006 Change % Current Assets 230.3 222.9 3.3 Non Current Assets 288.7 263.8 9.5 TOTAL ASSETS 519.1 486.7 6.6 NET ASSETS 194.9 171.9 13.3 Net Debt 90.3 75.0 20.4 Gearing (Net Debt / Equity ) 46.3% 43.6% Normalised Interest Cover 4.5
Slide 14: Balance Sheet Strength
MACDMAHON Q _ "Balance Sheet Strength Capital Expenditure Shareholder Equity 200 140 120 26.4 14 150 100 a0 & Aa): 768 = 100 oo a 54 40 50 20 | , 2004 2003 2005 2006 2007 Ful Year gs Yew 2003 2004 2005 2006 2007 Full Yoar MHalf yoar
Slide 15: Cash Flow Waterfall
Q MACDMAHON . Cash Flow Waterfall 100, 80 60 40 20 68.6 29.3 EBITDA Tax Paid ‘emma Inflow Interest Increase in Paid Working Capital ween Outflow Sale of Acquisition Increase — Capital Dividends Other _—sIncrease Allplant in Debt Eqpenditure in Cash net) 44
Slide 16: Segment Results
Q Segment Results MARMAHCIN Mining Construction December December December December 2006 2005 2006 2005 Revenue 278 210 191 185 EBIT 25.4 12.9 5.3 8.0 EBIT Margin 9.1% 6.1% 2.8% 4.3% Mining Revenue Construction Revenue 450 an 00 350 350 ey 300 300 a er 280 — z 250 Qe 200 200 . 494 +50 150 1ar +00 10
Slide 17: Revenue by Business
Revenue by Business Allpiant Construction - East 2% 13% Open Cut 39% Construction - West 27% Underground 19% 16
Slide 18: iit
———— HN i i a) iit SII Ais
Slide 19: Employees
MACMAHCIN Pe he ee OU : ae 2 e Ce 000: 500. 010 Employees 4000. 500 18 2002
Slide 20: Zz oO oF = G < z
Zz oO oF = G < z
Slide 21: Operations
MACMAHON le a
Slide 22: MACDMAHON
MACDMAHON Cy ee : et VNU Gy yeh) Co eae oe
Slide 23: MADMAHCON i SrA
MADMAHCON i SrA NniWe F SHWeTRUBTEN
Slide 24: Mining — ARD and CRE
Q MACDMAHON _ Mining — ARD and CRE CQ com ee COMBINED RESOURCE ENGINEERING ARD AUSTRALIAN RAISE DRILUNG
Slide 25: ~~ 2. ee a a oo eC — oS Se oe — z Zz
~~ 2. ee a a oo eC — oS Se oe — z 0 Zz : < 2 : a | < = nl
Slide 26: Construction — Mitchell Freeway
truction — Mitchell Freeway
Slide 27: Construction - Ross River Dam
onst MACMAMCIN ruction - Ross River Dam Pt - - aly, in 7
Slide 28: Order Book
— -— MACDMAHON
Slide 29: G < = Q < z
G < = Q < z
Slide 30: Increasing Orders
Increasing Orders MACDMAHON Order Book Order Book Run Off 1800 4000 1600 one 1400 ano 430 4200 700 1000 re 618 = 2 ST = B00 ee 7 450 600 300 40 200 200 190 6 0 2003 2004 2005 2006 2007 2007 2008 2009+ BW Atthe Ful Year Ml At the Half Year m Work Completed @ Order Book Run Off
Slide 31: Contracts
MACDMAHON Contracts Schedile of Rates: 70% Cost Reimbursable 16% > ‘Couper oe Commodity fron Ore 25%
Slide 32: Long Term Contracts
ace as Chip Long Term Contracts Customers Duration of Contract BHP Billiton, a1% cE Kimberloy Diamonds 1% Peabody Energy 14%
Slide 33: Contract Life — Mining
Q _ Contract Life — Mining BHP Billiton » Orebody 18 es > BHP Billiton > Jimblebar nl a > BHP Billiton » Leinster eee eee BHP Billiton » Olympic Dam oes eee > Rio Tinto » Argyle ees eee > Rio Tinto » Cape Lambert / Dampier 4 i oe Peabody » Eaglefield a ce incitec Pivot » Phosphate Hill A A > Kimberl
Slide 34: Contract Life — Construction
Q ontract Life = Construction MARMAHCIN WA Govt m Eyre Highway EE WA Govt » Mitchell Freeway cD WA Govt » Rail Link Package A ee 2 WA Govt » Goldfields/Esperance TNC EEE eee WA Govt » Karratha to Tom Price Rd oe NSW Govt » Great Western Hwy = QLD Govt b Ross River Dam en ee NT Govt » Waterfront es A
Slide 35: Strategy and Outlook
i MADRMAHG
Slide 36: Market Picture
vacua | Market Picture « Commodity prices and volumes remain strong « Governments upgrading ageing infrastructure « Barriers to new competition high = Buoyant conditions expected to continue (refer Appendix) 35
Slide 37: Objectives, Opportunities and Outcomes
Q MAGRMAFICIN Objective > Grow the Business &> Secure Market Position c> In Core Business Opportunities Outcomes Mining Construction Mining » fron Ore » Coal » Base Metals Govt Infastructure » Road » Rail » Water Maintenance Projects aligned with our expertise Australia - East Coast Overseas growth
Slide 38: 2007 Outlook
action a 2007 Outlook = $430 + million already secured for second half # Revenue $1 - $1.05 billion — subject to new work « Capital spend will be lower: $30 - $35 million » Review of financing for future capital requirements = New work flow to continue « Second half profit expected to exceed the fir
Slide 39: Slide 39
Slide 40: Future Growth
MACDMAHON Q : / Future Growth « Concentrated Effort - East Coast Construction « Greater Penetration in Coal « Pursue “Low Risk” Overseas Opportunities = Maximise Vertical Integration « Acquisitions « Continue To Improve Efficiency 38
Slide 41: Continuing to Deliver
“Continuing to Deliver” MAGMAHON MINING & CONSTRUCTION
Slide 42: Value of Contract Mining
Q MACDMAHON Value of Contract Mining (Constant 2603/04 A#039;million) 8,000.0 4,500.0 4,000.0 3,500.0 3,000.0 2,500.0 2,000.0 Value of Work (§’million) 1,500.8 3,000.0 500.0 0.0 2004 2002 2003 2004 2008 20066 2007 2008 2008 2010 2014 Coat tron Gre 0 Bauxite 8 Copper @ Gold 8 Siver, Lead, Zine m Other (
Slide 43: Engineering Construction — Australia
Q MACDMAHON Value of Work (#039;b) 2001 2002 2003 Engineering Construction ~ Australia {Constant 2003/04 Prices $M) 2004 2005 2006 2007 2008 2009 2010 2011 @ Roacs m Bridges 0 Railways 1B Harbours m Water Bw Heavy Industry Other eusess BIS Grpnel: Eaginoorirg Constuetionin Australia 2006-2024 42