Macmahon : Presentation to Macquarie WA Forum November 2021

ersonal use only

Macquarie

Western Australia Forum

November 2021

Macquarie WA Forum - November 2021

Important Notice Disclaimer

Disclaimer as to forward looking statements

onlyThis presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. These forward looking statements are based on, among other things, Macmahon Holdings Limited's ACN 007 634 406 (Macmahon) assumptions, expectations, estimates, objectives, plans and intentions.

F rward looking statements are subject to inherent risks and uncertainties. Although Macmahon believes that the expectations reflected in any forward looking statement included in this presentation are reasonable, no assurance can be given that such

usexpectations will prove to be correct. Actual events, results or outcomes may differ materially from the events, results or outcomes expressed or implied in any forward looking statement.

Except as required by applicable law or the ASX Listing Rules, Macmahon does not undertake to update or revise these forward looking statements, nor any other statements whether written or oral, that may be made from time to time by or on behalf of Macmahon, whether as a result of new information, future events or otherwise.

ersonalNone of Macmahon (nor any of its officers and employees), or any other person named in this presentation, or any person involved in

the preparation of this presentation makes any representation or warranty (express or implied) as to the accuracy or likelihood or fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law. You are cautioned not to place undue reliance on any forward looking statement.

The forward looking statements in this presentation reflect views held only as at the date of this presentation.

The directors of Macmahon consider that they have used reasonable care in preparing forward looking financial information (Guidance) in this presentation. However, the Guidance is not fact, rather it is predictive in character and there are margins of uncertainty surrounding any assumptions about future conditions and anticipated performance.

The Guidance may differ materially from results ultimately achieved and does not take into account the potential impact of some risks, such as the unquantified contingent liabilities noted in Macmahon's Annual Report. You are cautioned

not to place undue reliance on the Guidance. Forward looking information is by its very nature subject to uncertainties and can be affected by unexpected events, many of which are outside

the control of Macmahon's directors. Any variation to the assumptions on which the Guidance has

been prepared could be materially positive or negative to actual financial performance. Therefore Macmahon's directors cannot guarantee the achievement of the Guidance.

The Guidance should not be regarded as a representation or warranty with respect to its accuracy or the accuracy of the best estimate assumptions or that Macmahon will achieve,

or is likely to achieve, the particular results.

This presentation does not take into account the individual investment objectives, financial or tax situation or particular needs of any person. It does not contain financial advice. You should consider

seeking independent legal, financial and taxation advice in relation to the contents of this presentation.

Non-IFRS Financial Information

This presentation uses non-IFRS financial information including EBITDA and EBIT which

are used to measure both group and operational performance. Non- IFRS measures have

not been subject to audit or review.

References to "Macmahon", "the Company", "the Group" or "the Macmahon Group" may be references to Macmahon Holdings Limited or its subsidiaries.

Not a disclosure document

This presentation is not a disclosure document and should not be considered as investment advice or an offer or invitation to subscribe for or purchase any securities in Macmahon, or an inducement to make an offer or invitation with respect to such securities. This presentation does not purport to cover all relevant information about any potential investment

in Macmahon or any decision relating to Macmahon.

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Key Highlights

Secured $2bn in FY21 of new work underpinning positive outlook

Awarded post FY21 result

Financials	Surface Mining
only
		•	New contract awards:
• Continued growth with record
	FY21 underlying earnings
	and cashflow		-	5 year $250m: QMetco's
	-	Revenue $1.35bn			Foxleigh project
use	- EBIT(A) - $95.2m			(commenced)
			-	3 year $240m: Anglo
• Guidance delivered for 4th
	consecutive year			American's Dawson
					project (commenced)
•	Strong balance sheet:
	-	ND/EBITDA 0.5x		- 5 year $660m: surface and
	-	Gearing 19%			underground at Red 5's
	-	Cash and available			(ASX:RED) KOTH project
ersonal		facilities of $288m			(start January 2022)
•	Capital management:		- 5 year $210m Calidus'
	-	Cash conversion 108%			(ASX:CAI) Warrawoona
	-	ROACE 13.5%			project (start early 2022)
• Full year dividend: 0.65 cps	•	Contract extensions:
	(20% franked)		-	3 year $140m: Telfer
				-	4 year $470m: Tropicana

Macquarie WA Forum - November 2021

Underground Mining

• New contract awards:
• • 5 year $500m: St Barbara's
    (ASX:SBM) Gwalia mine (commenced)
  • Contract to construct and refurbish decline at the Bellevue (ASX:BGL) mine (commenced)
• Contract extensions:
• • 4 year $217m: Silver Lake's
    (ASX:SLR) Deflector mine
  • Pantoro's (ASX:PNR) Wagtail and Nicolsons mines
• Successfully completed a number of engineering projects

Mining Support

Services

• Secured and expanded mining support services into WA, including:
• • Civil work at Strandline's
    (ASX:STA) Coburn project
  • Civil work at Calidus'
    Warrawoona project
  • Civil work at copper-gold project inASIndonesia
  • Civil work at Northern Star's Fimiston project

Outlook

• FY21 $2bn contract awards provide a high level of secured revenue in FY22, FY23 and into FY24
• FY22 Guidance:
• • Secured revenue $1.4bn
  • Revenue $1.4 - $1.5bn
  • EBIT(A) $95 - $105m
• Order book of ~$5.0bn
• Tender pipeline of $8.2bn
• Pipeline evolving to create a diversified scalable business

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People Resourcing in Australia

5 new projects commenced

PROJECT	PROJECT
Foxleigh, QLD	Strandline, WA
PEOPLE IN PLACE	PEOPLE IN PLACE
80	65
START DATE	START DATE
Mar 2021	May 2021

FY21
only		PROJECT			PROJECT
use		Warrawoona, WA			Gwalia, WA
	PEOPLE IN PLACE			PEOPLE IN PLACE
65			280
	START DATE			START DATE
	Mar 2021			May 2021
ersonal			Surface Mining		Underground Mining		Mining Support Services
Current situation

• Commenced 5 new projects in recent months

• Well placed to meet resourcing requirements for Warrawoona and King of the Hills

Macquarie WA Forum - November 2021

	Today	PROJECT
	Warrawoona, WA
		PEOPLE REQUIRED
		120
		START DATE
		Mar 2022
		FY22
PROJECT		PROJECT
Dawson, QLD		King of the Hills, WA
PEOPLE IN PLACE		PEOPLE REQUIRED
180		240
START DATE		START DATE
Jul 2021		Jan-Apr 2022

Surface and Underground Mining

Cost management

• Contract structures provide protection against input costs, including labour:
• • ~60% of revenue is Alliance-style contracts with monthly rise and fall provisions
  • ~40% of revenue is Schedule of Rates contracts containing rise and fall provisions which are adjusted monthly, quarterly, bi-annually
• Current rates have been built into new contracts and tenders

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Strategic Overview

Building a diversified scalable business

Improve	Invest
only		Relevance and competitive advantage
Margins and execution
•	Systems and processes	•	Advanced contractor
•	Contract management	•	Structure and capability
•	Operational excellence	•	Sustainability
use
ersonal
Macquarie WA Forum - November 2021

Diversify		Expand
Build scalability		Growth in current markets
•	Mining Support Services		• Additional services with existing
			clients
•	Underground
			• Grow market share

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