Slide 1Important Notice
This presentation and these materials (together the “Presentation”) has The information contained in this Presentation is for information
been prepared by MACA Limited ABN 42 144 745 782 (ASX:MLD) purposes only and does not constitute an offer to issue, or arrange to
(“MACA”) as an Investor Presentation and a summary of MACA’s issue, securities or other financial products. MACA has no obligation to
results for the full year to 30 June 2013. By participating in this tell recipients if it becomes aware of any inaccuracy in or omission from
Presentation or reviewing or retaining these materials, you the information in this Presentation. This Presentation has been
acknowledge and represent that you have read, understood and prepared without taking into account the investment objectives,
accepted the terms of this Important Notice and Disclaimer. financial situation or particular needs of any particular person. You
should consult your own advisors as to legal, tax, financial and related
This presentation should be read in conjunction with other periodic concerning any transaction or investment or other financial decision.
and continuous disclosure announcements that have been lodged
by MACA with the ASX. This Presentation, including opinions set out in it, is based on
information compiled or prepared by MACA from sources believed to
This Presentation may contain forward looking statements concerning be reliable, although such information has not been verified in all
projected earnings, revenue, growth, outlook or other matters instances. No representation or warranty, express or implied, is made
(“Projections”) for the full year ending 30 June 2014 or beyond. as to the fairness, accuracy, completeness or correctness of the
Any such Projections are based on assumptions which may differ information, opinions or conclusions contained in this Presentation. To
materially from the actual circumstances which may arise. MACA the maximum extent permitted by law, none of MACA, its directors,
undertakes no obligation to update any Projections for events or employees, advisors or agents, nor any other person, accepts any
circumstances that occur subsequent to the date of this Presentation or liability, including without limitation any liability arising out of fault
to keep current any of the information provided. Past performance is no or negligence, for any loss arising from the use of the information
guarantee of future performance. contained in this Presentation. In particular, no representation or
warranty, express or implied, is given as to the accuracy,
Recipients of this Presentation are advised that the information completeness, likelihood of achievement or reasonableness of any
contained in this Presentation is not legal, tax, accounting, investment forecasts, Projections or prospects referred to in this Presentation.
or financial product advice and should not be used as the basis for
making investment decisions in relation to MACA securities.
Corporate Snapshot
Capital Structure
Share price (as at 22 August 2013) $2.11
Market capitalisation (undiluted) $364 million
Cash (as at 30 June 2013) $122 million
Directors and Senior Management
Andrew Edwards Non-Executive Chairman
Geoff Baker Operations Director
Joe Sweet Non-Executive Director
Linton Kirk Non-Executive Director
Tim Gooch General Manager Mining
Mitch Wallace General Manager Plant
Maurice Dessauvagie General Manager Civil
Peter Gilford Company Secretary, Financial Controller
Substantial Shareholders (as at 30 June 2013)
Name Shareholding per last notice
G A Baker / Gemblue Nominees 8.70%
D Edwards / Mining and Civil Management 8.70%
FM and SJ Maher 8.58%
Celeste Funds Management 6.01%
3
Record full year result
Revenue of $475.9 million (up 42% on previous corresponding period)
EBITDA of $116.3 million (up 35% on previous corresponding period)
NPAT of $49.5 million (up 31% on previous corresponding period)
Cash flow from operating activities $111.8 million
Key contract wins over the past 12 months include:
Regis Resources Limited (ASX: RRL) Rosemont Gold Project - contract value $220 million over 5 years with
subsequent increase in scale (minimum 8 year mine life);
Atlas Iron Limited (ASX: AGO) Abydos DSO project – contract value $200 million over 3 years;
Main Roads Western Australia (MRWA) Carnarvon Flood Mitigation project awarded to MACA Civil Pty Ltd,
contract value approximately $65 million;
Main Roads Western Australia (MRWA) Safelinks Alliance Goldfields Highway, Wubin Mullewa Road
Upgrade - contract value approximately $42 million
Work In Hand position of $1.713 billion as at 30 June 2013 and mining average contract length 35 months
Strong balance sheet - Net cash position
Client base diversified by commodity – Iron ore 38% – Gold 33% – Other Minerals 7% – Civil 22%
Targeting full year FY2014 revenue of +$550m (>95% contracted), representing +15% growth on FY2013
4
30 June 2012
Net Profit Before Tax $m $71.8 $54.0 33%
Net Profit After Tax (attributable to members) $m $49.5 $37.7 32%
Contracted / Awarded Work in Hand $m $1,713 $1,322 30%
Operating Cash Flow $m $111.8 $52.8 112%
Earnings per share - basic cps 31.5 25.1 25%
Dividends per share (fully franked) 1 cps 10.0 8.0 25%
1 Final dividend 5.5c per share, record date 6 September 2013, payable on 26 September 2013
5
workforce of 1,200 personnel comprising
direct staff and subcontractors
to AS 4801 – certification to April 2015 –
MACA and MACA Civil
14001 – certification to April 2015 – MACA
and MACA Civil
certification to April 2015 – MACA and MACA
Civil
a 38% improvement from previous period
Federal Building and Construction OHS
Accreditation Scheme awarded to MACA
Civil Pty Ltd in December 2012
7
Board and 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.
Dave Edwards Business Development Manager 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.
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.
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.
Mitch Wallace General Manager Plant Mitch joined MACA in 2005 as Plant Manager and is responsible for planning, scheduling and preventative maintenance functions and providing leadership to the plant and maintenance teams. Mitch has extensive experience working with contractors and equipment suppliers in Australia and overseas.
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.
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.
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 Institute of Chartered
Accountants in Australia ('ICAA') and has served as state councillor. Andrew is currently a board member of Mermaid Marine, Nido Petroleum and Aspire Mining.
B o a rd
e n t
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. His career has spanned responsibilities in Australia and Pacific regions and he has held previous board, CEO and managing director positions as well as senior executive roles within the resources sector.
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.
9
Andy Well
to mill solutions and customised to
meet project needs
Komatsu PC2000 200t 1
Hitachi EX1900 190t 5
Komatsu PC1250 120t 19
Komatsu PC600 60t 1
pre-splitting and probe drilling
mobile crushing circuits from
single to multi stage
Sinosteel – Midwest 2.0 Mtpa
Atlas Iron – Mt Dove 2.3 Mtpa
Atlas Iron – Abydos 2 - 3 Mtpa
11
Pardoo (1 Mtpa) Mining - to November 2013
Crushing - to February 2014
Crushing - to February 2014
Crushing – to March 2016
Crushing commenced in September 2012
Contract to 2017
Crushing - to commence September 2013
Contract to early 2016
Mining Services
Moolart Well Mining since January 2010, contract to end of 2016
Garden Well Mining since 2011, contracted to mid 2018
Rosemont Commenced March 2013, contracted to mid 2019
Plutonic MACA undertakes haulage and crusher feed services
Commenced 2008, contract to be completed August 2013
13
Ellendale – Kimberley Diamonds Commenced December 2011, contract to early 2014
Fixed and variable contract mitigates mining disruption
during Kimberley wet season
Crusher feed commenced May 2013
Contract to early 2017
$10m in total
value. Commenced August 12, completed Jan 13
Abydos saddle and ROM works approx. $9.5m
Safelinks Programme Alliance
Contract value $42 million
Browns Range Alliance Carnarvon
million over 12 months from October 2012
MidWest / Gascoyne ISA sub-contract works
Picture?
National pre-qualification system for
Accreditation Scheme awarded in
Work In Hand as at 30 June 2013
Work in Hand: average tenure – Mining 35 months – Crushing 25 months
16
17
Strong financial performance continued in FY2013
Revenue forecast FY2014 expected to exceed $550 million, up 15% on 2013, >95%
contracted
Order book of +$1.7 billion and average mining contract tenure of 35 months (up 30% on
30 June 2012)
A strong balance sheet (net cash) to fund new projects and position company for growth
Pipeline for new projects and project expansions is enhanced by enduring relationships
driven by proven capability and delivery
MACA Civil now 100% owned, creating opportunities with new management structure
Strong alignment with clients and key stakeholders
18
corresponding period
Profit attributable to MACA 27.1 37.7 49.5 31.3%
Net Profit Margin 10.9% 11.3% 10.4%
Basic earning per share - cents 19.7 25.1 31.5 25.4%
Total dividends per share - cents 6.0 8.0 10.0 25.0%
Shareholders funds 88.2 117.3 202.4
Net cash flow from operating activities 57.8 52.8 111.8 111.7%
Net debt -13.4 15.0 -28.8
Net debt / (Net debt + equity) n/a 11.3% n/a
19
Cash and cash equivalents 50.6 39.9 123.0
Trade and other receivables 28.7 58.8 60.4
Inventories / WIP 2.1 3.6 3.6
Property, plant and equipment 70.3 113.8 177.4
Other assets 5.7 10.0 8.1
Total Assets 157.4 226.2 372.6
Payables 25.0 39.9 61.4
Borrowings 37.1 54.8 94.2
Provisions 2.6 5.3 7.3
Other Liabilities 4.4 8.9 7.6
Total Liabilities 69.1 108.9 170.6
Shareholders Equity 88.2 117.3 202.1
Net Debt -13.4 15.0 -28.8
Net tangible asset backing - cents per share (basic) 58.1 78.2 1.15
20
Contacts
21