Slide 1: Half Year Results FY24
Half Year Results FY24 20 February 2024
Slide 2: 1H24 Financial Highlights
1H24 Financial Highlights Revenue Underlying EBITDA1 Underlying EBIT(A) 1 FY24 Secured Revenue5 $966.3m q 2.1% $176.0m p 17.9% $68.1m p 26.9% $1.8bn p 15.0% excl. BH7 pass through 18.2% margin 7.1% margin Underlying NPAT(A) 1 Underlying operating cash flow2 Dividend FY24 Revenue Guidance6 $39.7m p 3
Slide 3: Positive Track Record of Delivering on Guidance
Positive Track Record of Delivering on Guidance 1H24 on track for FY24 Revenue ($m) EBIT(A) ($m) 1906 1698 117 1706 excl. BH7 101 1380 1351 1518 excl. 95 BH7 92 1103 75 966 68 Previous Guidance 1,700 – 1,800 Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Gu
Slide 4: Expanding into Lower Capital Intensity Services
Expanding into Lower Capital Intensity Services Executing filtered tender pipeline to progress towards long term targets FY18 Revenue Mix 1H24 Revenue Mix 7% 3% TARGET 25% $710m $966m 10% 65% 90% Revenue Mix 1H24 Tender Pipeline FY18 Pipeline 1% 21% 35% 33% $5.4bn $11.6bn EBIT(A) ROACE ROACE target
Slide 5: 1H24 Key Highlights
1H24 Key Highlights Focussed on improved operational performance across the business Mining Support Services Surface Mining Underground Corporate & Civil Infrastructure • Greenbushes mobilisation and • 1H24 revenue at 25% of group • Fimiston TSF project completed • Successfully attracted talent to r
Slide 6: Pit N Portal Acquisition
Pit N Portal Acquisition Adds to scale and capability in underground division Acquisition Details • Completed the acquisition of key contracts and assets from Emeco including the novation of contracts, inventory, fixed infrastructure and light vehicles • c.220 PnP Employees joined Macmahon’s workfor
Slide 7: Key Projects
Key Projects Diversified client portfolio CLIENT END (UNLESS EST. MINE COST CLIENT PROJECT COMMODITY SINCE EXTENDED) END DATE1 CURVE1 Tropicana, WA Gold 2012 Life of mine 2033 Q3 Telfer, WA Gold 2016 Life of mine 2025 Q4 Byerwen, QLD Met Coal 2017 June 2025 2069 Q1 Batu Hijau, Indonesia Copper / Gol
Slide 8: Revenue Diversification
Revenue Diversification By Commodity By Region By Client 4.1% 5.8% 6.5% 12.0% 10.4% 7% 6.4% 59% 3.6% 2.8% 20.0% 24% 6.3% 5.3% 3.7% 6% 10.4% 9.3% 4% 93.5% Anglogold Ashanti Calidus Newcrest Gold Copper/Gold Met Coal Lithium Other Australia Indonesia Red 5 Silver Lake Genesis PT AMNT PT Agincourt Angl
Slide 9: People & Culture
People & Culture Workforce growth, continued investment in people and development Injury Frequency Rates and Workforce Safety & Wellbeing • TRIFR increased from 3.94 (FY23) to 4.36 (1H FY24), no life changing incidents • Delivered the “Winning at Macmahon” supervisor training to educate in role spec
Slide 10: Sustainability
Sustainability Evolving commitment and enhancing contribution Baseline Monitor and report our 1H24 GHG emissions Land rehabilitated Tyre Recycling Environment Environmental carbon footprint, 120 hectares in Program (tonnes per CO2-e) Footprint including Scopes 1, 2 Scope 1: 497 Australia 170 tonnes
Slide 11: 1H24 Results
| | MACMAHON 1H24 Results
Slide 12: Financial Performance
Financial Performance Track record of delivering growth 1 Revenue ($m) Underlying EBIT(A) ($m) 68.1 Revenue incl. 62.9 987 BH Phase 71 888 919 54.1 53.7 810 48.7 46.5 46.9 Revenue excl. BH Phase 71 653 698 730 788 837 769 966 1H21 2H21 1H22 2H22 1H23 2H23 1H24 1H21 2H21 1H22 2H22 1H23 2H23 1H24 Unde
Slide 13: Profit and Loss
Profit and Loss $ Millions 1H23 1H24 Change • Revenue down 2.1%, attributed to the transition of Batu Hijau phase 7 (BH7) to phase 8 (commenced 1 April 2023) with the removal of $150m zero-margin cost Revenue 987.2 966.3 q2.1% recoveries. The removal offset new revenue from Greenbushes which commenc
Slide 14: Cash Flow – Net Debt Waterfall
Cash Flow – Net Debt Waterfall Underlying Interest and Net Capex Free cash flow Operating Cash Tax $127.2m ($0.8m) Flow $138.2m $11.8m Net Debt • Increased primarily due to working capital increase – timing of receipts, and Greenbushes project ramp up Operating Cash Flow • 1H24 underlying operating
Slide 15: Capital Management
Capital Management Strategic focus on improving cash returns and ROACE 1 2 Underlying operating cash flow ($m) Return on Average Capital (ROACE) 200 150.0% 136.2% 180 127.6% 15.5% 15.7% 15.7% 15.5% 130.0% 14.9% 116.0% 160 13.3% 110.0% 12.90% 140 79.8% 78.6% 90.0% 120 70.0% 70.6% 100 70.0% 80 50.0% 6
Slide 16: Balance Sheet
Balance Sheet Solid financial position $ Millions FY23 1H24 • Maintained prudent financial discipline during growth phase: Cash 218 200 Receivables 378 385 ‒ Net Debt / EBITDA of 0.63x is below internal guiderail of 1.0x Inventories 92 105 ‒ Net Debt for 30-Jun-24 is expected be below 30-Jun-23 bala
Slide 17: Strategy and Outlook
| | MACMAHON Strategy and Outlook
Slide 18: Strategic Overview
Strategic Overview Building a sustainable diversified scalable business STRATEGIC THEMES 1. Improve margins 2. Invest in future relevance 3. Focused expansion in 4. Diversify through new 5. Assess corporate value and execution and competitive advantage current markets business growth drivers Consist
Slide 19: Order Book $4.4bn & Tender Pipeline $11.6bn
Order Book $4.4bn & Tender Pipeline $11.6bn Order book provides a high level of secured revenue Order Book Run Off ($m)3 1H24 Tender Pipeline • $1.8bn1 of FY24 revenue secured • Order book at $4.4bn2 of work in hand 1H23 1H24 966 35% 33% • $11.6bn tender pipeline reflects strong market activity in t
Slide 20: Capital Allocation Policy to Support Growth and Shareholder Returns
Capital Allocation Policy to Support Growth and Shareholder Returns Our Priorities ✓ Maintain resilient balance sheet, ensure appropriate liquidity and gearing ✓ Retain flexibility to fund organic growth and accretive acquisitions ✓ Increased cash return to shareholders Capital 1. Maintain Financial
Slide 21: Priorities and Outlook
Priorities and Outlook 2H24 PRIORITIES FY24 GUIDANCE1 • Optimise operations, continue to safely and efficiently deliver value for our clients • Investment in mining technology and digital transformation Revenue EBIT(A) • Deliver earnings and ROACE growth from capital investment • Accelerate free cas
Slide 22: Thank You
Mick Finnegan Ursula Lummis Donald James Thank You CEO & MD CFO CCO mfinnegan@macmahon.com.au ulummis@macmahon.com.au djames1@macmahon.com.au www.macmahon.com.au 22 31 December 2023 Half Year Results
Slide 23: Appendix
| | MACMAHON Appendix
Slide 24: Corporate Overview
Corporate Overview Capital Structure Share Price Share Price1 (ASX:MAH) $0.190 0.25 Fully paid ordinary shares (m) 2,155 Market Capitalisation1 $409.5m 0.20 Cash (31 Dec 23) $200.1m 0.15 Net Debt (31 Dec 23) $212.4m Enterprise Value $621.9m 0.10 Net Tangible Assets per share (31 Dec 23) $0.289 0.05
Slide 25: Macmahon Board
Macmahon Board Macmahon Board HAMISH TYRWHITT MICHAEL FINNEGAN DENISE McCOMISH DAVID GIBBS – AMNT Nominee Independent, Non-Executive Chair Managing Director Independent, Non-Executive Director Non-Independent, Non-Executive Director and Chief Executive Officer New Directors Commencing 1st Feb 2024 G
Slide 26: Map of Operations
Map of Operations 26 31 December 2023 Half Year Results
Slide 27: Cash Flow
Cash Flow $ Millions 1H23 1H24 Underlying EBITDA 149.3 176.0 Movement in receivables (43.1) (6.9) Movement in inventory 0.2 (13.0) Movement in payables and provisions (4.2) (16.6) Cash payments for SaaS customisation costs (2.5) (1.0) Other1 3.3 (1.3) Net Interest and tax (paid) / received (20.6) (1
Slide 28: Reconciliation of Non-IFRS Financial Information
Reconciliation of Non-IFRS Financial Information $ Millions 1H23 1H24 Profit for the year (as reported) 23.3 36.5 Add back: • Share Based Payment expense 0.5 1.0 • Acquisition and corporate development costs and earn-out related to previous acquisitions - 1.2 • Customer contracts amortisation (A) 3.
Slide 29: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer as to forward looking statements The forward looking statements in this presentation reflect views the contents of this presentation. held only as at the date of this presentation. This presentation contains forward looking statements, including Non-IFRS Fi