Macmahon Holdings Limited · ASX:MAH

Macmahon — Euroz Securities Limited Presentation (March 2006)

33 slides from Macmahon's conference presentation, Mar 8, 2006

  1. Slide 1: Euroz Securities Limited Presentation

    /Euroz Securities Limited | Presentation — a 8 March 2006

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  3. Slide 3: Who we are

    2 Who we are Euroz Secutities Limited Presentation 8 March 2008 2

  4. Slide 4: Industry Outlook: Engineering Construction - Australia

    Value of Work ($" bi 25 20 46 410 2001 2002 2003 2004 Industry Outlook Engineering Construction - Australia (2003/04 $'billion) watt Wy 2005 2006 2007 2008 2009 2010 2011 2012 2013 ‘We 2014 TINE cnet 2015 @ Roads Bridges 0 Railways O Harbours mg Water @ Heavy Industry @ Other Sources: BIS Shrapnel:

  5. Slide 5: Industry Outlook: Value of Contract Mining in Australia

    Industry Outlook Value of Contract Mining in Australia ($'million) 7,000 6,000 7 J) a 5,000 4,000 3,000 Value of Work ($'million) 2,000 74,000 2000 «©2001. «2002, 2003.) 2004. 2005. 2006 = 2007, 2008 «= 2008S 2010 2011 2012, 2013 2014 = 2015 WCoal Biron Ore Bauxite Copper EGold DAg/Pb/Zi Other Ores

  6. Slide 6: Competitor Profile

    Competitor Profile PLANT HIRE i aa ieee OPEN cur _ UNDERGROUND Euroz Securities Limited Presentation 8 March 2006 5

  7. Slide 7: Macmahon Strategy - Increase Total Shareholder Returns

    gee nnn TTT | eee To Macmahon Strategy — Increase Total Sharehoider Returns ~# Two key Pillars: - Grow the Business - Increase EBIT Margins (Profitability) # Growth Opportunities * Construction - Large government infrastructure projects - Mining expansion projects (iron ore and coal) « Mining - lron

  8. Slide 8: Targets

    Sc Bll atc Targets Targets Actual Dec 05 EBIT Margin 5% 2006 5.1% 6% 2007 PAT Growth +20% pa +107% Debt/Equity <50% short term 16.9% <30% long term ROE +15% 15.8% TRIFR Continual Improvement 18.2% improvement Euroz Secutities Limited Presentation 8 March 2008 7

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  10. Slide 10: Financials Summary

    ca inancials Summary 31 Dec 05 31 Dec 04 Change Revenue Group $370 $243 +52% Joint Venture $36 $38 -5% Total Revenue $406 $281 45% EBIT $20.5 $11.2 +83% EBIT Margin 5.1% 4.0% +28% PBT $16.9 $8.3 +103% PAT $11.7 $5.7 +107% EPS 2.6 cents 1.4 cents +82% Dividends per share 0.5 cent Nil Note: 2004 tax a

  11. Slide 11: Total Revenue

    ee C—O ee ~* Half year Total revenue up 45% on December 2004 half $641 ~* 13% increase on June 2005 half $479 confirms continued growth $421 8406 ~ All divisions delivering growth ~ Systems in place to manage t Li 1. i J growth 2003 2004 2005 2006 Bs me Total Revenue Euroz Securities Limited Present

  12. Slide 12: EBIT and EBIT Margin

    i 6 EBIT and EBIT Margin 5.195 ~ EBIT up 83% on December half and 27% up on June 05 half 43% 4.3% # Importantly EBIT margins increased to 5.1% - above 2006 FY target of 5% 3.5%, $205 $18.7 * EBIT margin highest in company history + Increased EBIT margins from improved tender results 2003* 2004* 2005

  13. Slide 13: Record half year profit of $11.7 million

    ~* Record half year profit of $11.7 million $15.9 ~# Profit up 107% on December 2004 half and up 15% on June 2005 half ~» Tax now applied at 30% (AIFRS) although tax paid in 2006 FY will be approximately 15% ~» Accumulated tax losses used up by July 2007 PAT Note: PAT for FY03 & FY04 has been normal

  14. Slide 14: EPS & Dividend

    EPS & Dividend # EPS of 2.6 cents on expanded share 34 base following capital raising (516 million shares at December 2005) w Interim fully franked dividend of 0.5 cent on back of record result and positive outlook = ~* DRP activated @ 2.5% discount os t i oo fale 2003* 2004* 2005 We ont Gy 2 [Final

  15. Slide 15: Operating Cash Flow

    ef 14 ae Operating Cash Flow $514 $49.6 $30.7 $218 fi i i L j 2003 2004 2005 2006 i Euroz Securities Limited Presentation 8 March 2008 14

  16. Slide 16: Balance Sheet

    eisca ccccl tance Shoot, 120% 2003 2004 2005 Dec 2005 Ey Net Balance Sheet Debt ——= Net Debt to Equity Euroz Securities Limited Presentation 8 March 2008 15

  17. Slide 17: Market Cap

    pica de BS —— ae * Market cap now +$360 million up from $174 million in June 2005 # Share price continues to show improvement up from 46 cents at June 05 and 27 cents June 04 ~* Positive share price performance following capital raising in late 2005 FYOS FYO4 FYOS DecO5 6 Mar 06 Market Cap Euroz Sec

  18. Slide 18: Share Price

    ge She Price 7O/;- 60 40+ Cents per Share 30, 10 1 i I rl | 2003 2004 2005 31Dec05 6Mar05 Euroz Securities Limited Presentation 8 March 2008 17

  19. Slide 19: LLL

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  20. Slide 20: Order Book

    esa ee BK ~ $705 million of new contracts and $925 contract extensions in 6 months to December 2005 $ « December 2005 order book at a record $1.2 billion $341 . A ~ Focusing on securing longer term cL contracts for blue chip clients 1 ~ Further contract extensions and new FOR 1 FYOS Fvos FVOS Becds

  21. Slide 21: Type of Contract & Run-Off Style

    of Contract & Run-Off 20 Style Alliance or 22% Fixed Price ’ 119% Schedule of Rates ¥ (with Rise and Fall} S7% + wv FYO6 FYO? FYOB+ - Work Completed |] @7 Order Book Run-Off HEB bxcasions Majority of contracts (89%) fully protected for cost increases Fixed price contracts appropriately priced $392 m

  22. Slide 22: Order book by commodity

    Manganese Oil & Gas Aluminium — Copper Govt lron Ore Other Euroz Securities Limited Presentation 8 March 2008 21

  23. Slide 23: Major clients

    sb bhpbilliton NEWMONT The Geld Company Peabody fr, LCAN “ Government of Western FARGE Australia | ( \) Queensland WS Government xstrata Euroz Securities Limited Presentation 8 March 2008 22

  24. Slide 24: We are

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  25. Slide 25: Construction revenue continues to grow

    + + Construction revenue continues to grow Significant increase in EBIT to $8.0million with improved EBIT margin of 4.3% All construction contracts profitable Contracts reflect current industry costs High levels of tendering activity in QLD and WA (Government infrastructure and mining) Second half r

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  27. Slide 27: Mining: existing mines increase production

    ~* * + a * + Existing mines continue to increase production (Eaglefield and Olympic Dam) 4 year $250 million BHP Billiton Orebody 18 iron ore contract commences March 06 Preferred tenderer for BHP Billiton Jimblebar iron ore mine Contract renegotiations and new work will deliver improved margins Sup

  28. Slide 28: TETEw,—,—\\—_ tin nT

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  29. Slide 29: Allplant: equipment hire fleet expanded

    + Equipment hire fleet expanded to 132 items ~# Nebo workshop complex in Queensland coal fields now operational + Planning underway for new workshop complex in Perth ~# Further growth forecast in 2007 Euroz Securities Limited Presentation 8 March 2008 28

  30. Slide 30: Workforce now at 2550

    ~* Workforce now at 2550 # Need to increase workforce over next 12 months for new work # Longer term contracts for blue chip clients attractive for employees ~* Shortages of engineers and mechanical tradesmen. Overseas recruitment a short term solution ~w Focusing on retention strategies for existin

  31. Slide 31: Ly

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  32. Slide 32: Outlook

    Ear #* Positive Market Conditions - Government infrastructure - Resources activity (iron ore, coal, copper) ~* Contractor services in short supply - opportunity # Expect 2006 revenue of $850 million with EBIT margins above 5% ~* Existing and new contracts expected to lift revenue above $1 billion in

  33. Slide 33: Discussion

Macmahon Holdings — Euroz Securities Limited Presentation (March 2006) on 6ix