Macmahon Holdings Limited · ASX:MAH
Macmahon — Euroz Hartleys Industrial Forum 2024
13 slides from Macmahon's conference presentation, Jun 19, 2024
Slide 1: Euroz Hartleys Industrial Forum
Euroz Hartleys Industrial Forum 19th June 2024
Slide 2: 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
Slide 3: Our Business
Our Business A leading, ASX-listed (ASX:MAH) mining services company focussed on low-capital growth Established People1 ✓ Track record in surface, underground and civil FY24 Secured Revenue1 infrastructure across Australia 1963 9,200 $1.8bn and Southeast Asia 58% Australia, 42% Indonesia ✓ Comprehen
Slide 4: Track Record of Delivering on Guidance and Earnings Growth
Track Record of Delivering on Guidance and Earnings Growth Revenue ($m) EBIT(A) ($m) 1,906 1,698 117 1,706 excl. 1,380 BH7 101 1,351 1,518 excl. 95 BH7 92 1,103 75 966 68 710 42 FY24 FY24 369 Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance Guidance
Slide 5: Operational & Corporate Update
Operational & Corporate Update Surface Mining Underground Civil Infrastructure Corporate • Greenbushes steady state • 1H24 revenue at 25% of group • Scheme Implementation Deed • Successfully attracted talent to achieved in April 2024 revenue and targeting +50% executed with Decmil increase workforce
Slide 6: Decmil is Highly Complementary to Macmahon
Decmil is Highly Complementary to Macmahon Established civil business to drive diversification and growth with lower capital intensity Surface Mining Underground Mining Civil Infrastructure • Tier 1 surface miner with full suite of services • Annual revenue circa $500 million, with 1H24 • Annual rev
Slide 7: Further Expanding into Lower Capital Intensity Services
Further Expanding into Lower Capital Intensity Services Decmil adds scale and capability to existing civil offering, assisting execution of $10 billion combined civil pipeline Pro-Forma FY18 Revenue Mix 1H24 Revenue Mix 1H24 Revenue Mix 3% 7% 25% 18% TARGET $710 $966 8% $1.2 million 10% million bill
Slide 8: Disciplined Strategy Execution has Delivered Consistent Growth
Disciplined Strategy Execution has Delivered Consistent Growth Successful growth track record through both organic initiatives and acquisitions Macmahon’s M&A Track Record Total Revenue and Business Unit Contribution ($ million)1 Adds significant scale and capability to civil 2024 2,500.0 2,310 infr
Slide 9: Mining Services EV / EBIT(A) FY24F Multiples
Mining Services EV / EBIT(A) FY24F Multiples1 Capital Light1 Capital Intensive1 Underground, Engineering, Civil and Infrastructure Large focus on traditional surface mining / heavy mining equipment Mader 16.2x Austin Engineering 8.8x Worley 13.5x Monadelphous 12.7x NRW Holdings 8.0x Downer 11.9x Mac
Slide 10: Capital Management
Capital Management Increasing cashflow generation and ROACE Underlying Operating Cash Flow ($m)1 Return on Average Capital (ROACE)2 New target 108% of 20% 350 110.0% 99% 17.2% 16.5% 92% 93% 15.6% 15.5% 300 14.5% Previous 306 90.0% 13.9% target of 15% 250 70% 269 270 70.0% 200 218 50.0% 150 30.0% 100
Slide 11: Capital Allocation Policy to Support Growth and Shareholder Returns
Capital Allocation Policy to Support Growth and Shareholder Returns Our Priorities ✓ Maintain resilient balance sheet, ensure appropriate liquidity and gearing ✓ Retain flexibility to fund organic growth and accretive acquisitions ✓ Increase cash return to shareholders Capital 1. Maintain Financial
Slide 12: Priorities and Outlook
Priorities and Outlook POSITIVE OUTLOOK On track to deliver earnings Order Book Run Off ($m)2 1H24 Tender Pipeline guidance1 for eighth consecutive year Order book of $4.4bn2 and highly filtered tender 1H24 pipeline of $11.6bn 966 35% 33% Order book provides high $11.6bn level of secured revenue and
Slide 13: 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 Euroz Hartleys Industrial Forum 13
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