DOUG GREWAR - MANAGING DIRECTOR / CEO ROSS WILLIAMS - FINANCE DIRECTOR / CFO MACA LIMITED INVESTOR PRESENTATION FEBRUARY 2014
Important Notice IMPORTANT NOTICE AND DISCLAIMER This presentation and these materials (together the Presentation ) has been prepared by MACA Limited ABN 42 144 745 782 (ASX:MLD) ( MACA ) as an Investor Presentation and a summary of MACA s results for the half year to 31 December 2013. By participating in this Presentation or reviewing or retaining these materials, you acknowledge and represent that you have read, understood and accepted the terms of this Important Notice and Disclaimer. This presentation should be read in conjunction with other periodic and continuous disclosure announcements that have been lodged by MACA with the ASX. This Presentation may contain forward looking statements concerning projected earnings, revenue, growth, outlook or other matters ( Projections ) for the half year ending 31 December 2013 or beyond. Any such Projections are based on assumptions which may differ materially from the actual circumstances which may arise. MACA undertakes no obligation to update any Projections for events or circumstances that occur subsequent to the date of this Presentation or to keep current any of the information provided. Past performance is no guarantee of future performance. Recipients of this Presentation are advised that the information contained in this Presentation is not legal, tax, accounting, investment or financial product advice and should not be used as the basis for making investment decisions in relation to MACA securities. The information contained in this Presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. MACA has no obligation to tell recipients if it becomes aware of any inaccuracy in or omission from the information in this Presentation. This Presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. You should consult your own advisors as to legal, tax, financial and related concerning any transaction or investment or other financial decision. This Presentation, including opinions set out in it, is based on information compiled or prepared by MACA from sources believed to be reliable, although such information has not been verified in all instances. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this Presentation. To the maximum extent permitted by law, none of MACA, its directors, employees, advisors or agents, nor any other person, accepts any liability, including without limitation any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this Presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, Projections or prospects referred to in this Presentation. 2
Corporate Snapshot Capital Structure Fully paid ordinary shares Performance Rights 176.5 million 0.45 million Share price (last traded) $2.45 Market capitalisation (undiluted) Cash (as at 31 December 2013) Substantial Shareholders (as at 31 December 2013) Name $432 million $162 million Shareholding per last notice Directors and Senior Management Andrew Edwards Non-Executive Chairman Doug Grewar Managing Director / CEO Geoff Baker Operations Director Ross Williams Finance Director / CFO Joe Sweet Non-Executive Director Linton Kirk Non-Executive Director Dave Edwards General Manager Business Development Tim Gooch General Manager Mining Mitch Wallace General Manager Plant Maurice Dessauvagie General Manager Civil Peter Gilford Company Secretary, Financial Controller G A Baker / Gemblue Nominees 8.50% D Edwards / Mining and Civil Management 8.50% FM and SJ Maher 8.38% Celeste Funds Management 6.56% Acorn Capital 5.85% Average of 300k shares traded per day since IPO Average of 368k shares traded per day in CY2012 3
Financial and Operational Highlights for the Half Year Record half year result Revenue of $304.6 million (up 47% on previous corresponding period) EBITDA of $74.3 million (up 35% on previous corresponding period) NPAT of $32.6 million (up 44% on previous corresponding period) Cash flow from operating activities $61.4 million Significant growth opportunities identified and being actively pursued, both organic and new Work In Hand position of $1.524 billion as at 31 December 2013 Strong balance sheet with healthy net cash position Reaffirmed full year FY2014 revenue of +$550m (100% contracted), representing +15% growth on FY2013 4
Half Year Financial Summary 2014 FY Half Year Results 31 Dec 2013 31 Dec 2012 Change Contract Revenue $m $304.6 $207.5 47% EBITDA $m $74.3 $55.2 35% EBIT $m $49.6 $37.2 33% Net Profit Before Tax $m $46.5 $34.5 35% Net Profit After Tax (attributable to members) $m $32.6 $22.6 44% Operating Cash Flow $m $61.4 $41.7 47% Earnings per share - basic cps 18.8 15.0 25% Dividend per share (fully franked) 1 cps 6.5 4.5 44% 1 Dividend Record date 11 March 2014, payable on 24 March 2014. 5
Safety, Environment and Training Solid safety performance As at Dec 2013 MACA employed a workforce of +1200 personnel comprising direct staff and subcontractors MACA has consistently maintained a LTIFR below the industry average Industry leading accreditations Integrated safety and management system to AS 4801 certification to April 2015 MACA and MACA Civil Environment management system to ISO 14001 certification to April 2015 MACA and MACA Civil Quality management system to ISO 9001 certification to April 2015 MACA and MACA Civil 6
Management Board For personal use only Board and Management Andrew Edwards Non Executive Chairman Andrew is a former Managing Partner of Price Waterhouse Coopers (PwC), Perth Office, a former national Vice President of the Securities Institute of Australia (now the Financial Institute of Australasia) and a former President of the Western Australian division of that Institute. Andrew is a Fellow of the ICAA and has served as state councillor of the ICAA. Andrew is currently a board member of Mermaid Marine, Nido Petroleum and Aspire Mining. Doug Grewar Managing Director & CEO Doug has more than 15 years direct experience in the mining industry working for some of Australia s largest mining contractors, as well as 10 years in the heavy construction materials industry in management and senior leadership roles. He also has past experience as the managing director of an ASX listed company. Geoff Baker Operations Director Geoff is a founding shareholder of MACA. Geoff is responsible for planning, operating strategy, capital expenditure and delivery of safety and financial outcomes on all projects. Geoff has worked in the sector for 36 years focusing on plant maintenance and asset management. Ross Williams Finance Director & CFO Ross is a founding shareholder of MACA. Ross is responsible for all financial facets of the Company including capital management, finance, financial reporting and corporate strategy. Ross also has 16 years banking experience having held executive positions with a major Australian bank. Ross is a past fellow of the Australian Institute of Banking and Finance and holds a Post Graduate Diploma in Financial Services Management. Joseph (Joe) Sweet Non Executive Director Joe has extensive mining contracting and civil contracting experience and was the Managing Director of BGC Australia Pty Ltd from 1988 to 1997 and Managing Director of BGC Contracting Pty Ltd from 1997 to 1999. Joe held senior management roles and Board positions within the Bell Group from 1969 to 1988. Linton Kirk Non Executive Director Linton has over 30 years experience in mining and earthmoving, covering both open pit and underground operations in several commodities. He has held technical, operational and management positions in a variety of mining and mining service companies throughout the world prior to becoming a consultant in 1997. Mr Kirk holds a Bachelor of Engineering (Mining) degree from the University of Melbourne, is a fellow and Charted Professional of the Australian Institute of Mining and Metallurgy and is a graduate of the Australian Institute of Company Directors. Dave Edwards General Manager - Business Development Dave is a founding shareholder of MACA. Dave is responsible for business development, estimation of required services and negotiating project contracts. Dave has worked in the mining services sector since 1978 and has held general managerial positions with major mining and civil contractors. Mitch Wallace General Manager - Plant Mitch joined MACA in 2005 as Plant Manager and is responsible for planning, scheduling and preventative maintenance functions and provide leadership to the maintenance teams. Mitch has worked with contractors and equipment suppliers in Australia and overseas. Tim Gooch General Manager - Mining Tim is a qualified Mining Engineer from Camborne School of Mines in the UK. His 30 years in the mining industry has seen him work in the UK, South & West Africa, Canada and 24 years based here in Australia. His experience covers surface and underground mining and processing in gold, diamonds, nickel and other base metals in a number of senior management roles. Maurice Dessauvagie General Manager Civil Maurice is a highly experienced professional civil engineer. As a significant civil business leader he has delivered an outstanding portfolio of resources and public infrastructure projects throughout his career. He has held substantial roles in the WA civil sector with some of Australia's largest and most successful service companies. Maurice has a strong track record in building and growing successful civil businesses. 7
Project Locations Mining Services Iron Ore Crushing Services Iron Ore Mining Services - Gold Northern Territory Mining Services Other Ellendale MACA Civil - Civil Contracting Abydos DSO Carnarvon Paroo Station Mine Moolart Well Garden Well Rosemont Peculiar Knob DSO Midwest DSO Western Australia South Australia
Operating Divisions Drilling and Blasting Production drilling and blasting, pre-splitting and probe drilling services Loading and Hauling Contract load and haul offering mine to mill solutions and customised to meet project needs Crushing and Screening Crushing and screening fixed or mobile crushing circuits from single to multi stage MACA Civil 100% MACA owned Deliver effective solutions for: Equipment Blasthole Drills CAT SCH5125H 12 Equipment Excavator Hitachi EX 2500 250t 1 Komatsu PC2000 200t 1 Hitachi EX1900 190t 6 Komatsu PC1250 120t 19 Komatsu PC600 60t 1 Dumptruck Cat 785D 140t 5 Cat 777G 100t 12 Komatsu 785 100t 71 Dozers Cat D10T 3 Cat D9T 11 Komatsu 475 1 Komatsu 375 2 Graders Cat 16M 5 Cat 16H 6 Cat 16G 1 Cat 14H 3 Front End Loaders Cat 993 5 Cat 988H 2 Komatsu WA600-6/3 15 Komatsu WA500-6/3 4 Cat / Komatsu IT 14 Equipment Jaw Metso 125 5 Cone Metso HP5 3 Metso HP4 3 Metso HP400 1 Metso HP300 5 Screens Metso TS5.2 27x8 2 Metso LH 15x8 1 Triple Cedarapids 20x8 5 Double Striker 20x7 4 Sample Stations Striker 6 Essa 2 Circuits Arrium Peculiar Knob Sinosteel Midwest Atlas Iron Pardoo Atlas Iron Mt Dove Atlas Iron Abydos 3.3-4.0 Mtpa 2.0 Mtpa 1.8 Mtpa 2.3 Mtpa 2-3 Mtpa Tails dam construction Evaporation ponds Complete mine infrastructure works Road construction and maintenance Airport runway construction Major earthworks projects 9
Mining Division Iron Ore Mining Services / Crushing and Screening Services Pardoo (1 Mtpa): Mining finished operations in November 2013 Crushing to finish operations March 2014 Mt Dove (2 Mtpa): Mining finished operations in October 2013 Crushing finished operations in January 2014 Abydos (2-3 Mtpa) Mining 36 months commenced December 2012 Crushing 36 months from June 2013 Picture? Peculiar Knob (3.8 Mtpa): Mining commenced in December 2011 Crushing commenced in September 2012 Contract to 2017 Picture? Midwest DSO (1.4 Mtpa): Blue Hills commenced in July 2013 Three year project Picture? 10
Mining Division Gold Mining Services Moolart Well: Mining since January 2010 Garden Well: Mining since 2011, contracted to 2019 Rosemont Commenced March 2013, minimum 8 year mine life Picture? Plutonic: MACA undertook haulage and crusher feed services Contracted since 2008, completed project in August 2013 Picture? 11
Mining Division Other Mining Services Ellendale Kimberley Diamonds: Commenced December 2011, contract to early 2014 Fixed and variable contract mitigates mining disruption during Kimberley wet season Picture? R Paroo Station Mine: Mining re-commenced June 2013 Crusher feed commenced May 2013 Contract to early 2017 Picture? 12
MACA Civil (100% MACA owned) Safelinks Mid West Alliance Civil works contracted from July 2013 until June 2014 Contract value of approximately $36M R3 accreditation achieved May 2012 National pre-qualification system for civil construction contracts Browns Range Alliance Carnarvon Main Roads Western Australia (MRWA) Alliance project with contract value approximately $65 million from October 2012 until June 2014 Picture? Federal Building and Construction OHS Accreditation Scheme awarded in December 2012 MidWest / Gascoyne ISA sub-contract works MRWA Roadworks Onslow March 2012 13
Work In Hand as at Dec 13 Projected sources of revenue time based (excludes MACA Civil) 14
Work In Hand as at Dec 13 700 $M Projected revenue $M Projected sources of revenue 600 500 400 36 74 70 19 11 50 96 300 200 100 511 490 428 355 347 121 257 248 88 181-2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 Work in hand Work in hand Potential mining Potential extension mining work extension work MACA Civil *Note WIH from FY15 onwards does Note WIH from FY14 onwards does not include any Civil not include any Civil revenues 15
Company Outlook Strong financial performance continued during FY2014 first half Reaffirmed revenue forecast FY2014 of +$550 million, up +15% on FY2013 Despite weather events at Garden Well and Rosemont Projects, FY2014 NPAT expected to exceed FY2013 with no impact anticipated on FY2015 earnings Order book of +$1.5 billion with significant opportunities for extensions and new contracts Currently in advanced negotiations for multiple contract extensions Strong balance sheet and cash position to fund new projects and position company for continued growth into FY2015 and beyond Consolidation of MACA Civil and integration of Perth operations into single premises expected to enhance alignment of systems and culture Implementation of new management structure complete at MACA Civil 16
Income Statement Income Statement A$ million HY12 HY13 HY14 % Change from previous corresponding period Revenue 141.2 207.5 304.6 47% EBITDA 36.1 55.2 74.3 35% EBITDA Margin 25.6% 26.6% 24.4% EBIT 24.4 37.2 49.6 33% EBIT Margin 17.3% 17.9% 16.3% Profit attributable to MACA 16.4 22.6 32.6 44% Net Profit Margin 11.6% 10.9% 10.7% Basic earning per share - cents 10.9 15.0 18.8 Total dividends per share - cents 3.5 4.5 6.5 Shareholders funds 100.9 134.8 230.5 Net cash flow from operating activities 17.7 41.7 61.4 Net cash (23.5) (42.9) 52.5 17
Balance Sheet Balance Sheet A$ million HY12 HY13 HY14 Cash and cash equivalents 39.9 40.2 162.4 Trade and other receivables 58.8 64.9 68.9 Inventories / WIP 3.6 3.0 7.0 Property, plant and equipment 113.8 148.7 187.2 Intangibles Other assets 10.0 19.7 9.8 Total Assets 226.2 276.6 435.4 Payables 39.9 45.5 78.2 Borrowings 54.8 83.1 109.9 Provisions 5.3 6.2 8.7 Other Liabilities 8.9 6.9 8.1 Total Liabilities 108.9 141.8 204.9 Shareholders Equity 117.3 134.8 230.5 Net Debt 15.0 42.9 (52.5) Net tangible asset backing - cents per share (basic) 78.2 89.85 128.75 18
Contacts 19