MACMAHON HOLDINGS LIMITED — Earnings Release 2012

Aug 19, 2012

20 August 2012

Macmahon reports record profit of $56.1 million

Macmahon Holdings Limited (ASX: MAH) today announced a record profit after tax of $56.1 million for the 2012 Financial Year. The Company’s success was driven by record levels of revenue at $1.9 billion, record project wins and the largest number of employees in the Company’s history.

Highlights

• Record revenue of $1.9 billion (up 49% on pcp)

• Record full year profit after tax of $56.1 million

• Earnings per share of 7.7 cents

• Final dividend of 2.5 cents per share, fully franked

• Record project wins of $3.0 billion, with an order book of $3.1 billion

• Domestic funding secured

Macmahon Chief Executive Officer Nick Bowen said Macmahon had an outstanding year, delivering a record profit.

“The Company has worked through an intense project delivery program and met its commitment to provide returns to shareholders. Consequently, the Macmahon Board has declared a fully franked final dividend of 2.5 cents, delivering a total dividend of 4.0 cents per share for the full year,” Mr Bowen said.

Mining achieved excellent results, with increased profit margins attained through better plant utilisation and production performance. Mining also continued to build on its strong relationships with clients, including securing new contracts at the Tropicana Gold and Tavan Tolgoi projects, in addition to expansion works for BHP Billiton.

Construction reported a return to profit for the year. However, the rapid growth of this business created challenges in securing people and equipment, which impacted margins.

Macmahon evolved significantly from its Australian based origins during the year with new International projects bolstering its mining operations. Mining activities pushed into Mongolia and further into Nigeria, demonstrating the Company’s international expansion program was gaining traction. In Australia, new projects in the liquefied natural gas and iron ore sectors broadened the Company’s domestic operations.

“The project diversity and geographical spread of Macmahon’s revenue base provides a robust business model which is expected to deliver sustainable shareholder value over the long-term,” Mr Bowen said.

At year end, the Company’s order book stood at $3.1 billion. Project wins during the year, totalling a record $3 billion, have delivered greater certainty for the outlook.

The Company maintained its strong cash position throughout 2012, with a year-end cash balance of $134.9 million. EBITDA of $167.8 million was 157 per cent higher than the previous year. The Company’s balance sheet is strong and gearing levels at 23.1 per cent remain below maximum targets.

Return on equity showed steady progress towards the 20 per cent target, with a 16.5 per cent return reflecting the Company’s strong financial performance for the year.

==> picture [596 x 88] intentionally omitted <==

…/2

==> picture [594 x 142] intentionally omitted <==

During 2012, Macmahon made a record $186.4 million investment in capital equipment. The purchase of new equipment has ensured the Company’s ability to deliver on key projects, while also securing a modern fleet to meet future demand.

Mr Bowen said in a year of considerable growth, Macmahon also increased its number of direct employees from 3500 to nearly 4800 people.

“The focus for the year ahead will be to continue to drive margin improvements, through cost efficiencies, improved project execution and the pursuit of high margin overseas projects.

“Macmahon’s diversified business strategy is now well advanced and the geographical footprint of our operations is continuing to expand across project types, markets and industry sectors. This business model positions the Company to tackle changing market conditions, while maintaining its commitment to delivering sustainable returns to shareholders,” he said.

Mr Bowen said as Macmahon approaches its 50th anniversary, the outlook is positive for the year ahead, with a strong order book, robust tender pipeline and healthy working relationships with our clients. With much of the order book for the 2013 Financial Year already secured, the Company expects 20 per cent profit growth for the year ahead.

*** ENDS ***

For further information, please contact:

Investors: Tracy Lynch General Manager Investor Relations +61 467 795 335 Media: Stuart McLagan Group Communications Manager +61 458 755 117

About Macmahon

Macmahon is a leading Australian contract mining and construction company with major projects throughout Australia, in New Zealand, Asia, Mongolia and Africa.

An ASX/S&P 200 company, Macmahon has played a major role in the delivery of many of Australia’s largest multi-disciplinary mining and construction projects throughout its 49 year history.

Directly employing more than 4750 people, Macmahon offers the full range of underground and surface mining services and comprehensive construction capabilities spanning transport, marine, water and resource infrastructure services.

With a commitment to providing end to end services, Macmahon’s reputation for outstanding teamwork, integrity and commitment to the environment is underpinned by the company’s core value - safety. Visit www.macmahon.com.au for more information.

==> picture [596 x 88] intentionally omitted <==

==> picture [596 x 107] intentionally omitted <==

==> picture [521 x 147] intentionally omitted <==

Revenue ($m) NPAT ($m) EPS and DPS (cps) Order Book ($m)

==> picture [117 x 97] intentionally omitted <==

==> picture [124 x 94] intentionally omitted <==

==> picture [114 x 90] intentionally omitted <==

==> picture [194 x 17] intentionally omitted <==

----- Start of picture text ----- *----- End of picture text -----

==> picture [112 x 15] intentionally omitted <==

==> picture [192 x 12] intentionally omitted <==

==> picture [274 x 12] intentionally omitted <==

==> picture [55 x 12] intentionally omitted <==

==> picture [134 x 12] intentionally omitted <==

==> picture [321 x 12] intentionally omitted <==

==> picture [34 x 12] intentionally omitted <==

==> picture [228 x 12] intentionally omitted <==

==> picture [442 x 11] intentionally omitted <==

==> picture [59 x 11] intentionally omitted <==

==> picture [165 x 11] intentionally omitted <==

==> picture [204 x 11] intentionally omitted <==

==> picture [181 x 12] intentionally omitted <==

==> picture [296 x 12] intentionally omitted <==

==> picture [173 x 12] intentionally omitted <==

==> picture [330 x 12] intentionally omitted <==

==> picture [101 x 12] intentionally omitted <==

==> picture [92 x 12] intentionally omitted <==

==> picture [57 x 12] intentionally omitted <==

==> picture [248 x 12] intentionally omitted <==

==> picture [78 x 12] intentionally omitted <==

==> picture [437 x 12] intentionally omitted <==

==> picture [73 x 12] intentionally omitted <==

==> picture [381 x 12] intentionally omitted <==

==> picture [101 x 12] intentionally omitted <==

==> picture [69 x 12] intentionally omitted <==

==> picture [215 x 12] intentionally omitted <==

==> picture [209 x 12] intentionally omitted <==

==> picture [120 x 12] intentionally omitted <==

==> picture [107 x 12] intentionally omitted <==

==> picture [65 x 15] intentionally omitted <==

==> picture [48 x 11] intentionally omitted <==

==> picture [426 x 11] intentionally omitted <==

==> picture [43 x 11] intentionally omitted <==

==> picture [233 x 11] intentionally omitted <==

==> picture [199 x 12] intentionally omitted <==

==> picture [290 x 12] intentionally omitted <==

==> picture [404 x 12] intentionally omitted <==

==> picture [202 x 12] intentionally omitted <==

==> picture [37 x 12] intentionally omitted <==

==> picture [131 x 12] intentionally omitted <==

==> picture [81 x 12] intentionally omitted <==

==> picture [97 x 12] intentionally omitted <==

==> picture [73 x 11] intentionally omitted <==

==> picture [126 x 12] intentionally omitted <==

==> picture [33 x 12] intentionally omitted <==

==> picture [33 x 12] intentionally omitted <==

==> picture [23 x 12] intentionally omitted <==

==> picture [29 x 11] intentionally omitted <==

==> picture [26 x 12] intentionally omitted <==

1

==> picture [596 x 75] intentionally omitted <==

==> picture [100 x 16] intentionally omitted <==

==> picture [150 x 12] intentionally omitted <==

==> picture [360 x 12] intentionally omitted <==

==> picture [56 x 11] intentionally omitted <==

==> picture [103 x 11] intentionally omitted <==

==> picture [99 x 11] intentionally omitted <==

==> picture [235 x 11] intentionally omitted <==

==> picture [78 x 11] intentionally omitted <==

==> picture [120 x 11] intentionally omitted <==

==> picture [27 x 12] intentionally omitted <==

==> picture [428 x 12] intentionally omitted <==

==> picture [173 x 12] intentionally omitted <==

==> picture [343 x 12] intentionally omitted <==

==> picture [129 x 12] intentionally omitted <==

==> picture [178 x 15] intentionally omitted <==

==> picture [281 x 12] intentionally omitted <==

==> picture [210 x 12] intentionally omitted <==

==> picture [14 x 12] intentionally omitted <==

==> picture [172 x 12] intentionally omitted <==

==> picture [304 x 12] intentionally omitted <==

==> picture [199 x 12] intentionally omitted <==

==> picture [96 x 12] intentionally omitted <==

==> picture [359 x 11] intentionally omitted <==

==> picture [148 x 11] intentionally omitted <==

==> picture [308 x 11] intentionally omitted <==

==> picture [181 x 11] intentionally omitted <==

==> picture [452 x 11] intentionally omitted <==

==> picture [69 x 11] intentionally omitted <==

==> picture [210 x 12] intentionally omitted <==

==> picture [27 x 12] intentionally omitted <==

==> picture [158 x 15] intentionally omitted <==

==> picture [436 x 12] intentionally omitted <==

==> picture [67 x 12] intentionally omitted <==

==> picture [273 x 12] intentionally omitted <==

==> picture [89 x 12] intentionally omitted <==

==> picture [98 x 12] intentionally omitted <==

==> picture [349 x 12] intentionally omitted <==

==> picture [37 x 12] intentionally omitted <==

==> picture [93 x 12] intentionally omitted <==

==> picture [256 x 12] intentionally omitted <==

==> picture [114 x 12] intentionally omitted <==

==> picture [52 x 12] intentionally omitted <==

==> picture [430 x 12] intentionally omitted <==

==> picture [30 x 12] intentionally omitted <==

==> picture [442 x 11] intentionally omitted <==

==> picture [76 x 11] intentionally omitted <==

==> picture [57 x 11] intentionally omitted <==

==> picture [50 x 11] intentionally omitted <==

==> picture [231 x 11] intentionally omitted <==

==> picture [128 x 11] intentionally omitted <==

==> picture [361 x 12] intentionally omitted <==

==> picture [18 x 12] intentionally omitted <==

==> picture [25 x 12] intentionally omitted <==

==> picture [73 x 12] intentionally omitted <==

==> picture [110 x 12] intentionally omitted <==

==> picture [38 x 12] intentionally omitted <==

==> picture [37 x 12] intentionally omitted <==

==> picture [51 x 12] intentionally omitted <==

==> picture [32 x 12] intentionally omitted <==

==> picture [41 x 12] intentionally omitted <==

==> picture [139 x 11] intentionally omitted <==

==> picture [14 x 11] intentionally omitted <==

==> picture [14 x 11] intentionally omitted <==

==> picture [14 x 11] intentionally omitted <==

==> picture [123 x 11] intentionally omitted <==

==> picture [18 x 11] intentionally omitted <==

==> picture [19 x 11] intentionally omitted <==

==> picture [18 x 11] intentionally omitted <==

==> picture [90 x 12] intentionally omitted <==

==> picture [18 x 12] intentionally omitted <==

==> picture [14 x 12] intentionally omitted <==

==> picture [14 x 12] intentionally omitted <==

==> picture [40 x 12] intentionally omitted <==

==> picture [23 x 12] intentionally omitted <==

==> picture [18 x 12] intentionally omitted <==

==> picture [19 x 12] intentionally omitted <==

==> picture [14 x 12] intentionally omitted <==

==> picture [156 x 12] intentionally omitted <==

==> picture [165 x 12] intentionally omitted <==

==> picture [183 x 12] intentionally omitted <==

==> picture [39 x 12] intentionally omitted <==

==> picture [426 x 12] intentionally omitted <==

==> picture [134 x 12] intentionally omitted <==

==> picture [327 x 12] intentionally omitted <==

==> picture [45 x 12] intentionally omitted <==

==> picture [268 x 12] intentionally omitted <==

==> picture [80 x 12] intentionally omitted <==

==> picture [49 x 15] intentionally omitted <==

==> picture [235 x 12] intentionally omitted <==

==> picture [48 x 12] intentionally omitted <==

==> picture [62 x 12] intentionally omitted <==

==> picture [46 x 12] intentionally omitted <==

==> picture [36 x 12] intentionally omitted <==

==> picture [22 x 12] intentionally omitted <==

==> picture [52 x 12] intentionally omitted <==

==> picture [440 x 12] intentionally omitted <==

==> picture [27 x 12] intentionally omitted <==

==> picture [54 x 12] intentionally omitted <==

==> picture [332 x 12] intentionally omitted <==

==> picture [121 x 12] intentionally omitted <==

==> picture [76 x 12] intentionally omitted <==

==> picture [251 x 11] intentionally omitted <==

==> picture [59 x 11] intentionally omitted <==

==> picture [80 x 11] intentionally omitted <==

2

==> picture [596 x 75] intentionally omitted <==

==> picture [46 x 16] intentionally omitted <==

==> picture [229 x 12] intentionally omitted <==

==> picture [99 x 12] intentionally omitted <==

==> picture [175 x 12] intentionally omitted <==

==> picture [161 x 11] intentionally omitted <==

==> picture [71 x 11] intentionally omitted <==

==> picture [61 x 11] intentionally omitted <==

==> picture [346 x 12] intentionally omitted <==

==> picture [173 x 12] intentionally omitted <==

==> picture [128 x 12] intentionally omitted <==

==> picture [35 x 12] intentionally omitted <==

==> picture [89 x 12] intentionally omitted <==

==> picture [198 x 12] intentionally omitted <==

==> picture [239 x 11] intentionally omitted <==

==> picture [153 x 11] intentionally omitted <==

==> picture [67 x 11] intentionally omitted <==

==> picture [60 x 11] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

==> picture [53 x 12] intentionally omitted <==

==> picture [19 x 12] intentionally omitted <==

==> picture [45 x 12] intentionally omitted <==

==> picture [36 x 12] intentionally omitted <==

==> picture [96 x 12] intentionally omitted <==

==> picture [123 x 12] intentionally omitted <==

==> picture [166 x 11] intentionally omitted <==

==> picture [41 x 11] intentionally omitted <==

==> picture [126 x 11] intentionally omitted <==

==> picture [179 x 11] intentionally omitted <==

==> picture [396 x 11] intentionally omitted <==

==> picture [117 x 11] intentionally omitted <==

==> picture [107 x 12] intentionally omitted <==

==> picture [88 x 12] intentionally omitted <==

==> picture [34 x 12] intentionally omitted <==

==> picture [98 x 12] intentionally omitted <==

==> picture [39 x 12] intentionally omitted <==

==> picture [78 x 12] intentionally omitted <==

==> picture [39 x 12] intentionally omitted <==

==> picture [44 x 11] intentionally omitted <==

==> picture [263 x 11] intentionally omitted <==

==> picture [53 x 11] intentionally omitted <==

==> picture [142 x 12] intentionally omitted <==

==> picture [62 x 12] intentionally omitted <==

==> picture [292 x 12] intentionally omitted <==

==> picture [364 x 12] intentionally omitted <==

==> picture [120 x 12] intentionally omitted <==

==> picture [42 x 12] intentionally omitted <==

==> picture [67 x 12] intentionally omitted <==

==> picture [68 x 12] intentionally omitted <==

==> picture [59 x 12] intentionally omitted <==

==> picture [70 x 12] intentionally omitted <==

==> picture [49 x 12] intentionally omitted <==

==> picture [32 x 12] intentionally omitted <==

==> picture [100 x 12] intentionally omitted <==

==> picture [508 x 392] intentionally omitted <==

==> picture [159 x 10] intentionally omitted <==

3