Macmahon Holdings Limited · ASX:MAH

Macmahon — FY2002 Earnings Presentation

20 slides from Macmahon's earnings presentation, September 2002

  1. Slide 1: 2002 Financial Results

    MACMAHON 2002 FINANCIAL RESULTS BY NICK BOWEN CEO September 2002 MACMAHON

  2. Slide 2: Financial Overview

    FINANCIAL OVERVIEW • 12 month result to June 2002 ƒ Total Revenue (inc JV’s) – up 13% to $485 million ƒ Profit after tax $7.1 million compared to loss of $32.8 million last year ƒ Debt reduced $37.6 million to $82.5 million MACMAHON

  3. Slide 3: Highlights

    HIGHLIGHTS Operating Revenue 2002 2001 Group Revenue $441.0 m $409.5 m Joint Venture Revenue $44.4 m $21.2 m Total Revenue $485.4 m $430.7 m Profit After Tax $7.1 m $32.8m loss Cashflow from Operations $43.4 m $27.7 m Net Debt June $82.5 m $120.1 m Return on Shareholders Funds 14.3% (77.5%) Earnings

  4. Slide 4: 2002 Total Revenue by Division

    2002 Total Revenue by Division (Includes attributable joint venture revenue) Plant/Labour Hire/Sales Asia $49 Open Cut $18 $227 Civil JV $44 Civil $53 Underground $94 MACMAHON

  5. Slide 5: 2002 Total Revenue by Activity

    2002 Total Revenue by Activity Coal Iron Ore $39 Civil $34 $97 Diamonds/ Oil Shale Quarry Sales $36 $9 Copper Plant/Labour $33 Hire $49 Nickel $35 Gold $153 MACMAHON

  6. Slide 6: 2002 Scorecard

    2002 SCORECARD Targets Established June Actual Results 2001 Profit after tax as a 1.5 to 2% 1.5% % of Total Revenue Net balance sheet $90 m $82.5 m debt LTIFR 4 2.5 MACMAHON

  7. Slide 7: Profit After Tax

    PROFIT AFTER TAX 20 13.2 10 7.1 0 1998 1999 2000 2001 2002 -10 $M -20 -16.5 -30 -40 -32.8 -50 -45.9 MACMAHON

  8. Slide 8: Financial Overview: Cashflow

    FINANCIAL OVERVIEW 70 Cashflow 57.8 60 48.4 50 40.2 40 $M 30 23.3 20 10 0 1999 2000 2001 2002 Cashflow from Asset Sales ($M) Cashflow from Operations ($M) MACMAHON

  9. Slide 9: Financial Overview: Total Debt

    FINANCIAL OVERVIEW Total Debt 200 172.4 163.1 150 132.1 120.1 82.5 $M 100 50 38.0 36.8 11.4 22.5 13.9 0 1998 1999 2000 2001 2002 Balance Sheet Net Debt Operating Leases MACMAHON

  10. Slide 10: Operations Overview: Open Cut

    OPERATIONS OVERVIEW OPEN CUT ƒ Revenue up 17% to $227 million ƒ Diverse range of commodity projects across Australia ƒ Entry into coal delivered $40 million revenue ƒ Macraes contract completed ƒ Targeting additional work in Australia ƒ Queensland office established MACMAHON

  11. Slide 11: Operations Overview: Underground

    OPERATIONS OVERVIEW UNDERGROUND ƒ Revenue up 14% to $94 million ƒ Profit below required hurdle rate but improving ƒ Focus on alternate contracts/risk sharing ƒ Projects finished, Selwyn and Emily Ann ƒ Improved result in 2003 MACMAHON

  12. Slide 12: Operations Overview: Civil

    OPERATIONS OVERVIEW CIVIL ƒ Revenue including joint ventures $97 million ƒ ADrail JV progress excellent – 36% complete ƒ ADrail target completion December 2003 ƒ Significant civil work available in WA ƒ Strong result from JV and WA civil work ƒ Targeting replacement for ADrail MACMAHON

  13. Slide 13: Operations Overview: Plant and Labour Hire

    OPERATIONS OVERVIEW PLANT AND LABOUR HIRE ƒ New developing business for Macmahon ƒ $38 million of revenue mainly related to ADrail ƒ Seeking other opportunities in civil and mining areas MACMAHON

  14. Slide 14: Operations Overview: Asia

    OPERATIONS OVERVIEW ASIA ƒ Completion of all works in Indonesia ƒ Sale of Malaysian JV quarry operation ƒ Kuala Lumpur (100% Macmahon) quarry only remaining Asian operation MACMAHON

  15. Slide 15: Operations Overview: Lost Time Injuries

    OPERATIONS OVERVIEW Lost Time Injuries Per One Million Hours Worked 16.0 14.0 14.0 11.3 12.0 10.0 7.1 8.0 6.0 6.1 4.4 5.0 6.0 4.0 2.5 2.0 0.0 1995 1996 1997 1998 1999 2000 2001 2002 MACMAHON

  16. Slide 16: Operations Overview: New Work

    OPERATIONS OVERVIEW NEW WORK ƒ $324 million of new work and contract extensions during the year ƒ Order book $488 million at June 2002 ƒ New contracts recently awarded provides $340 million of secured work for 2003 compared to $283 million at same time last year ƒ Significant proportion of new work

  17. Slide 17: Order Book at June

    FINANCIAL OVERVIEW Order Book at 30 June 800 631 613 618 600 480 369 400 340 $M 200 91 109 102 101 21 43 8 0 1998 1999 2000 2001 2002 2003 2004 2005 Australia SE Asia Run Off Note: 2003 includes work won in July/August MACMAHON

  18. Slide 18: Fleet Average Age/Capex

    FLEET AVERAGE AGE/CAPEX Capex driven by achieving lowest average cost per hour not maintaining a certain % remaining life. Forecast fleet remaining life will remain above 30%. 50 100 Capex budget sustainable with debt reduction programme. 45 90 40 80 34.2 35 70 29 30 Life Remaining % 30 60 Capex $M

  19. Slide 19: Outlook

    OUTLOOK • Resource sector activity in Australia high • Iron ore, coal and gold prospects • Civil activity in WA strong • Sufficient new work available to achieve $450-$500 million total revenue (subject to competition) • Tendering activity high MACMAHON

  20. Slide 20: 2003 Targets

    2003 TARGETS After tax margin on 2% Total Revenue Net debt Under $70 LTIFR 2 MACMAHON

Macmahon Holdings — FY2002 Earnings Presentation on 6ix