Macmahon Holdings Limited · ASX:MAH
Macmahon — Merger or Acquisition (August 2006)
11 slides from Macmahon's merger presentation, Aug 14, 2006
Slide 1: Acquisition: Underground Mining – Specialised Services Group
DRAFT ONLY ontents 0 Investor Presentation Acquisition: Underground Mining – Specialised Services Group Monday 14 August 2006
Slide 2: Acquisition Overview
Acquisition Overview 1 Macmahon to acquire Australian Raise Drilling (ARD) and Combined Resource Engineering (CRE) for $27 million Expands Macmahon underground mining business to provide a complete service - no other Australian contractor has this capacity and it lifts Macmahon to a higher level on
Slide 3: ARD and CRE
ARD and CRE 2 Two complementary businesses, established in 1988, that provide specialised underground mining services. Australian Raise Drilling (ARD) Provides vertical and horizontal drilling of large diameter shafts for mine ventilation, access and mine development. Leading raise drilling contract
Slide 4: Transaction Details
Transaction Details 3 Purchase of assets, contracts and transfer of employees Funding from existing bank facilities and cash reserves Total cost of $27 million includes $2 million of transaction costs Settlement on Friday 1 September 2006 Purchase cost covered by FY07 Macmahon capital expenditure bu
Slide 5: Strategy
Strategy 4 Strategy Consistent with Macmahon strategy this acquisition expands the core capability within the Mining Business Specialised work not generally undertaken by owner miners ARD and CRE risk profile similar to Macmahon ARD and CRE are market leaders with high margins and low ongoing capita
Slide 6: ARD Business
ARD Business 5 Raise drill holes for ventilation, ore haulage and mine access Raise drills capable of drilling holes up to 5.8 metres in diameter and 900 metres in depth Typical contracts are on a cost per metre basis
Slide 7: CRE Business
CRE Business 6 Leading specialist in providing complete underground infrastructure, design and installation Typical contracts: Design - hourly rate Installation - cost reimbursable / hourly rate Crusher and conveyor Shaft sinking Underground shaft equipping
Slide 8: ARD / CRE Locations
ARD / CRE Locations Q MAGMAHON Current & Recent Projects (Last 12 months) Key Customers bl bhpbilliton NEWMONT The Gold Company D< xstrata . a= al OLYMPIC DAM” ADELAIDE oo , IN] AUSTRALIAN RAISE DRILLING SI) newonest ber COMBINED RESOURCE ENGINEERING FABRICATION WORKSHOP o< OFFICES
Slide 9: Financial Summary
Financial Summary 8 FY07 Projections*: Revenue $55 million EBITA margin 12% EBITA multiple 4 times Purchase price allocated to: Plant & equipment $18 million Identifiable intangibles ** $ 1 million Goodwill $ 8 million _________ $27 million _________ * Financial projections based on 12 m
Slide 10: Summary
Summary 9 Established, long term, specialised business ARD and CRE will continue to operate as independent brands within the Macmahon mining business Combining Macmahon underground expertise with ARD and CRE will enable Mining Business to offer “complete mine construction and operation” capability L
Slide 11: DRAFT ONLY ontents
DRAFT ONLY ontents 10
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