MASTERMYNE GROUP LIMITED

2012 Annual General Meeting Managing Director’s Report

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FY2012 Recap

Financial Highlights

Group Revenue for the full year $271.9 million, up 65%

(FY2011; $164.8 million)

Statutory Net Profit After Tax $14.7 million[1] up 24.9% (FY2011 $11.7 million[2] ).
Adjusted Net Profit After Tax (NPAT) $15.8 million up 61.2% (FY2011: $9.794 million)
Final Dividend of 4.8 cps, taking total dividends for

FY2012 to 7.8cps an increase of 27.9%

$251.5 million of revenue is deliverable in FY2013 from

current Contracted Order Book (excludes recurring

revenue)

Tendering pipeline was $728 million at the end of

FY2012

1 Incudes a negative tax adjustment of $1.124 million due to recent changes in tax legislation enacted at the end of FY12. This adjustment is reversing benefits recognised in prior periods. 2 Includes positive tax adjustments of $ 2.362 million due to entering into a tax consolidation for the group and rights to future income as a result of the IPO and changes in tax legislation.

FY2012 Recap

Operational Highlights

Safety performance (TRIFR) for FY2012 improved 20%

and again outperformed industry benchmarks

New management personnel in key operational roles have

heightened the capability of management team

Workforce numbers 1088 at June 2012 (32% increase from

June 2011)

All three divisions exceeded operational expectations
Underground Fleet has seen the highest utilisation in the
history of the business
Contracts renewed during FY2012:
- Illawarra Outbye Services (further 2+1+1 years);
- Illawarra Roadway Development option triggered

(further 12 months)

Moranbah Umbrella (further 2 + 2 years)
2nd Myne Start facility in Brisbane was opened in June

2012

FY2013 Update

We are continuing to see customers focus on reducing the production costs of their mines but not production levels
This link to production is a key business driver for all MYE divisions
All major underground contracts are continuing to operate unchanged (refer to appendix). One significant NSW contract is still under

review by the owner .

Workforce numbers in November were 1002 compared to 1088 at the start of FY2013
Some workforce reductions on purchase order works and smaller projects
Reductions also included head and regional office overheads and reductions at the engineering division workshops to match the
reduced fabrication demand.
Equipment utilisation rates across the sector have reduced with hire rates also reducing
The MYE fleet has seen some impact from displaced equipment which in turn is having an impact on group margins
The Moranbah North Drivage contract has been extended for a further 12 months from November
The underground division is in discussions on several new underground projects. In the current climate, where clients are taking a

more measured approach to new work, we do not expect to have confirmation of the outcome on these projects until Q1 calendar

2013”.

The pipeline of predominantly brownfield projects remains solid supported by the strong tendering activity and the increased business

development discussions

Current tender pipeline stands at > $1B versus $728m at the end of FY2012

Outlook

Although the operating environment has deteriorated in the short term for contractors, MYE’s underground link to coal production is a key differentiator of its business
The company’s mine site diversity, strong balance sheet and high variable cost structure will be valuable towards mitigating the

increasing competitive cost pressures (eg. lower equipment pricing)

MYE has no exposure to new mine construction projects in its current order book
The MYE Group business model will prove to be resilient in the current phase. At this stage, we are forecasting growth for FY2013.
We are undertaking a wider review of opportunities “complementary to our current core business” as well as continuing to assess

opportunities (both organic and acquisition) to expand the capability and range of services offered by MYE

Summary

FY2012 was another excellent year of strong growth for Mastermyne with all divisions performing well
We anticipate coal production levels to remain resilient. The group’s contracts are predominantly with Tier 1 customers, which typically

operate low cost underground mines; it is unlikely these operations will be materially affected

MYE’s order book remains intact. Encouragingly, MYE managed to grow its earnings during FY2009 amid the GFC
Importantly, tendering opportunities across brownfield operations remain healthy. Given our strong reputation, long standing relationships and solid balance sheet, we believe MYE will be successful in in winning new contractors to support FY2014 and beyond

Appendix – Contracted Order Book

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Previous Contract
Current Contract Duration
Option Duration
Acquisition of
Mine Life Duration
PYD Mining
Services
BHP Douglas Contract
prior to Dendrobium
Kestrel Mine Extension
Project start up
Acquisition of
Highland Mining Contract
Services / previously
extended for 12
Drivage Contracts
months
Financial Year
MYE has a demonstrated track record in triggering options and securing repeat contracts All Operations
extend beyond
2020
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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KME Services Contract

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Newstan Mine
Westcliff Colliery
Dendrobium Mine
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Kestrel Mine

Kestrel Mine Extension

Oaky Creek Complex Crinum Mine

Moranbah North Drivage

Moranbah North Umbrella

� MYE has a demonstrated track record in triggering options and securing repeat contracts

Disclaimer and Important Notice

The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any information contained in this presentation.

Except as required by law, no representation or warranty, express or implied, is made as the fairness, accuracy, completeness, reliability or correctness of the Information, opinions and conclusions, or as to the reasonableness of any assumption contained in this document. By receiving this document and to the extent permitted by law, you release Mastermyne Group Limited (“Mastermyne”), and its officers, employees, agents and associates from any liability (including in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising as a result of the reliance by you or any other person on anything contained in or omitted from this document.

Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Mastermyne, industry growth or other trend projections and any estimated company earnings are or may be forward looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties, many of which are outside the control of, and are unknown to, Mastermyne and its officers, employees, agents or associates. In particular, factors such as variable climatic conditions and regulatory decisions and processes may cause or may affect the future operating and financial performance of Mastermyne. Actual results, performance or achievement may vary materially from any forward looking statements and the assumptions on which those statements are based. The Information also assumes the success of Mastermyne’s business strategies. The success of the strategies is subject to uncertainties and contingencies beyond Mastermyne’s control, and no assurance can be given that the anticipated benefits from the strategies will be realised in the periods for which forecasts have been prepared or otherwise. Given these uncertainties, you are cautioned to not place undue reliance on any such forward looking statements. Mastermyne undertakes no obligation to revise the forward looking statements included in this presentation to reflect any future events or circumstances.

In addition, Mastermyne’s results are reported under Australian International Financial Reporting Standards, or AIFRS. This presentation includes references to EBITA and NPAT. These references to EBITA and NPAT should not be viewed in isolation or considered as an indication of, or as an alternative to, measures AIFRS or as an indicator of operating performance or as an alternative to cash flow as a measure of liquidity.

The distribution of this Information in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. This Information does not constitute investment, legal, accounting, regulatory, taxation or other advice and the Information does not take into account any investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and the market and for making your own independent assessment of the Information. You are solely responsible for seeking independent professional advice in relation to the Information and any action taken on the basis of the Information. No responsibility or liability is accepted by Mastermyne or any of its officers, employees, agents or associates, nor any other person, for any of the Information or for any action taken by you or any of your officers, employees, agents or associates on the basis of the Information.

Contact

www.mastermyne.com.au

Information for Investors / Analysts:

Tony Caruso – Chief Executive and Managing Director: (07) 4963 0400 Bill Lyne – Company Secretary: (07) 3378 7673

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MASTERMYNE GROUP LIMITED AGM Information 2012

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