Macmahon Holdings Limited · ASX:MAH
Macmahon — Shareholder Meeting (October 2020)
38 slides from Macmahon's shareholder meeting presentation, Oct 21, 2020
Slide 1: FY20 Annual General Meeting
FY20 Annual General Meeting 21 October 2020
Slide 2: Board
Board Eva Skira Mick Finnegan Vyril Vella Arief Sidarto Non-Executive Chair Chief Executive Officer Independent Non-Executive Director and Managing Director Non-Executive Director Appointed October 2019 Appointed June 2019 Alex Ramlie Bruce Munro Hamish Tyrwhitt Non-Executive Director Independent In
Slide 3: Online Attendees – Question Process
Online Attendees – Question Process • When the Question function is available, the Q&A icon will appear at the top of the app • To send in a questions, simply click in the ‘Ask a question’ box, type your question and press the send arrow • Your question will be sent immediately for review MACMAHON –
Slide 4: Online Attendees – Voting Process
Online Attendees – Voting Process • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote select the direction in which you would like to cast your vote – the selected option will change colour • There is no submit or send button, your sel
Slide 5: Format of Meeting
Format of Meeting 1. Chair’s Address 2. CEO & Managing Director’s Address 3. Formal Business • Financial Statements and Reports Discussion/Questions • Discussion of Resolutions and Voting • Questions 4. Closing MACMAHON – FY20 Annual General Meeting 5
Slide 6: Chair Address – Eva Skira
Chair Address Eva Skira MACMAHON – FY20 Annual General Meeting 6
Slide 7: Overview
Overview Revenue ($m) Underlying EBIT(A) ($m) 1,380 92 Guidance Record 1,300–1,400 Guidance A highly successful year 1,103 75 85–95 Guidance Guidance • Delivered record 950–1,050 70–80 financial results 710 42 Guidance Guidance • Achieved earnings guidance 620–680 40–50 for 3rd consecutive year 360
Slide 8: Overview
Overview Expanded service offering • Completed acquisition of GBF underground contractors Mount Monger, WA (Silver Lake Resources) Mount Monger, WA (Silver Lake Resources) ESG Sustainability Report • Continued commitment to strengthen ESG culture and reporting Batu Hijau, Indonesia (PT AMNT) Head Of
Slide 9: Capital Allocation Policy and FY20 Dividend
Capital Allocation Policy and FY20 Dividend Policy to balance growth and cash returns to shareholders Objectives 1. Maintain financial strength 2. Invest in growth 3. Return cash to shareholders ✓ Maintain strong balance sheet ✓ Ensure appropriate liquidity and gearing with regard to revenue visibil
Slide 10: Closing Remarks
Closing Remarks Batu Hijau, Indonesia (PT AMNT) Batu Hijau, Indonesia (PT AMNT) Tropicana, WA (AGA / IGO) Mount Monger, WA (Silver Lake Resources) Tropicana, WA (AGA / IGO) MACMAHON – FY20 Annual General Meeting 10
Slide 11: CEO & Managing Director Address – Mick Finnegan
CEO & Managing Director Address Mick Finnegan MACMAHON – FY20 Annual General Meeting 11
Slide 12: FY20 Highlights
FY20 Highlights Record financial results New work and achieved guidance Byerwen – $700m • 3 years for 3rd consecutive year Mount Monger – $200m • 3 years Safety performance Record production volumes Improved TRIFR – 3.77 at Batu Hijau and Byerwen Record low LTIFR – 0.12 Telfer settlement Successful
Slide 13: A Record Year – Financial Highlights
A Record Year – Financial Highlights FY20 Revenue FY20 Record underlying EBITDA1 FY20 Record underlying EBIT(A)1 $1,380.4m $238.7m $91.6m p 25% on FY19 p 32% on FY19 p 22% on FY19 FY20 Record reported NPAT FY20 Record operating cash flow2 Net Tangible Assets $64.9m $218.4m 22.1 cps p 41% on FY19 p 7
Slide 14: Projects – Southeast Asia
Projects – Southeast Asia End Global (Unless Cost Project Clients Location Commodity Type Comments Start extended) Curve1 • Alliance life-of-mine contract • World class mine with huge mineral resources base Batu Sumbawa Aug Copper/Gold Surface • Investigating extension of the Batu Hijau pit and 2031
Slide 15: Projects – Western Australia
Projects – Western Australia End Global (Unless Cost Project Clients Commodity Type Comments Start extended) Curve1 • Alliance life-of-mine contract Mar Tropicana Surface • Potential to extend scope 2023+ 2012 2023 Gold • Successfully commenced 5 year alliance style contract Boston • Synergies betwe
Slide 16: Projects – Queensland
Projects – Queensland End Global (Unless Cost Project Clients Commodity Type Comments Start extended) Curve1 • Record production volumes Nov Nov Byerwen Coking coal Surface • Awarded $700m, 3 year extension and expansion 2017 2023 • Employs over 390 people, including 188 locally 1. Minespans 2020 da
Slide 17: Projects – Underground
Projects – Underground End Global Project / (Unless Cost Division Clients Location Commodity Comments Start extended) Curve1 Mount WA • GBF awarded $200m, 3 year extension at the Daisy Complex and April April Gold Monger Australia Mount Belches Centre (Maxwells, Cock-eyed Bob, Santa) 2020 2023 WA •
Slide 18: Projects – Civil and Rehabilitation
Projects – Civil and Rehabilitation Project / Division Clients Location Commodity Type Comments • Peak Downs – tailings dam and creek remediation Coking coal • Saraji – equipment and maintenance services Indonesia/ Civil Various Mineral Sands Surface • Poitrel – mud removal, flood protection levee a
Slide 19: People and Safety
People and Safety Injury Frequency Rates and Workforce 7,059 5,572 5,050 Second Lowest 3.77 2,227 2,171 Record Low 0.12 FY16 FY17 FY18 FY19 FY20 TRIFR (Total Recordable Injury Frequency Rate) Contractors Employees LTIFR (Lost Time Injury Frequency Rate) Team Macmahon – MACA Cancer 200: 2020 Challeng
Slide 20: Key Strategic Priorities
Key Strategic Priorities Mining Value Chain Develop Open-Cut Underground Rehab Civil / Operations / Operations / Process Process Operations / Engineering Engineering Engineering Engineering Explore Evaluate Process Plant & Maintenance Plant & Supply / Hire / Maintain Maintenance Key Strategic Focus
Slide 21: Positive Outlook
Positive Outlook ✓ Scalable – systems, processes, structure A leading mining ✓ Successful flexible alliance style approach services business ✓ Proven capabilities across the whole mining value chain ✓ Focused on developing technological competitive advantage ✓ $4.5 billion work in hand at 30 June 20
Slide 22: Outlook – Tender Pipeline
Outlook – Tender Pipeline Expected Project Commencement 12–18 Months 2–3 Years Exclusive / Preferred Batu Hijau Tropicana expansion $3.8bn+ Potentially $2–$4bn to Tender be awarded in next 12 months Pre Tender Bubbles represent = $200m Current Client New Client contract value Early Success – secured
Slide 23: Closing
Closing MACMAHON – FY20 Annual General Meeting 23
Slide 24: Meeting Resolutions
Meeting Resolutions MACMAHON – FY20 Annual General Meeting 24
Slide 25: Voting results
Voting results Agenda item For Against Abstain Open Resolution 1 – Adoption of Remuneration 743,220,162 3,867,296 1,520,213 3,067,525 Report Resolution 2 – Re-election of Ms Eva Skira 677,873,223 70,299,400 1,317,497 3,077,525 as a Director Resolution 3 – Re-election of Mr Alexander 740,111,539 7,66
Slide 26: Financial statements and reports discussion
Financial statements and reports discussion Batu Hijau, Indonesia (PT AMNT) Tropicana, WA (AGA / IGO) Batu Hijau, Indonesia (PT AMNT) Mount Monger, WA (Silver Lake Resources) Argyle, WA (Rio Tinto) Boston Shaker, WA (AGA / IGO) MACMAHON – FY20 Annual General Meeting 26
Slide 27: Resolution 1
Resolution 1 ADOPTION OF REMUNERATION REPORT “That for the purposes of section 250R(2) of the Corporations Act, the Remuneration Report (which forms part of the Directors' report for the year ended 30 June 2020) be adopted”. Note: Section 250R(3) of the Corporations Act provides that the vote on thi
Slide 28: Resolution 1 – Proxy Results
Resolution 1 – Proxy Results ADOPTION OF REMUNERATION REPORT For 743,220,162 Against 3,867,296 Abstain 1,520,213 At the Proxies Discretion 3,067,525 Total Proxy Votes = 751,675,196 MACMAHON – FY20 Annual General Meeting 28
Slide 29: Resolution 2
Resolution 2 RE-ELECTION OF MS EVA SKIRA AS A DIRECTOR “To re-elect Ms Skira, who retires from the office of Director in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers herself for re-election”. MACMAHON – FY20 Annual General Meeting 29
Slide 30: Resolution 2 – Proxy Results
Resolution 2 – Proxy Results RE-ELECTION OF MS EVA SKIRA AS A DIRECTOR For 677,873,223 Against 70,299,400 Abstain 1,317,497 At the Proxies Discretion 3,077,525 Total Proxy Votes = 752,567,645 MACMAHON – FY20 Annual General Meeting 30
Slide 31: Resolution 3
Resolution 3 RE-ELECTION OF MR ALEXANDER RAMLIE AS A DIRECTOR “To re-elect Mr Ramlie, who retires from the office of Director in accordance with rule 3.6(c) of the Company’s Constitution, and being eligible, offers himself for re-election”. MACMAHON – FY20 Annual General Meeting 31
Slide 32: Resolution 3 – Proxy Results
Resolution 3 – Proxy Results RE-ELECTION OF MR ALEXANDER RAMLIE AS A DIRECTOR For 740,111,539 Against 7,660,099 Abstain 1,608,482 At the Proxies Discretion 3,187,525 Total Proxy Votes = 752,567,645 MACMAHON – FY20 Annual General Meeting 32
Slide 33: Resolution 4
Resolution 4 RE-ELECTION OF MR ARIEF SIDARTO AS A DIRECTOR “To re-elect Mr Sidarto, who retires from the office of Director in accordance with rule 3.6(c) of the Company’s constitution, and being eligible, offers himself for re-election”. MACMAHON – FY20 Annual General Meeting 33
Slide 34: Resolution 4 – Proxy Results
Resolution 4 – Proxy Results RE-ELECTION OF MR ARIEF SIDARTO AS A DIRECTOR For 740,033,845 Against 7,837,793 Abstain 1,508,482 At the Proxies Discretion 3,187,525 Total Proxy Votes = 752,567,645 MACMAHON – FY20 Annual General Meeting 34
Slide 35: Resolution 5
Resolution 5 RENEWAL OF PROPORTIONAL TAKEOVER PROVISIONS “That, with effect from the close of the Meeting and in accordance with section 648G of the Corporations Act, the proportional takeover provisions set out in Rule 29.8 of, and Schedule 2 to, the Constitution of the Company (a copy of which is
Slide 36: Resolution 5 – Proxy Results
Resolution 5 – Proxy Results RENEWAL OF PROPORTIONAL TAKEOVER PROVISIONS For 737,010,021 Against 5,995,447 Abstain 6,306,152 At the Proxies Discretion 3,256,025 Total Proxy Votes = 752,567,645 MACMAHON – FY20 Annual General Meeting 36
Slide 37: Annual General Meeting
Annual General Meeting 21 October 2020 MACMAHON – FY20 Annual General Meeting 37
Slide 38: Meeting Closed
Meeting Closed MACMAHON – FY20 Annual General Meeting 38
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