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MACMAHON ASX ANNOUNCEMENT 23 February 2021 Macmahon Holdings Limited ACN 003 696 464 15 Hudswell Road Perth Airport WA 6105 Australia PO Box 198 Cannington WA 6987 Australia T ( +61 ) 08 9232 1000 F ( +61 ) 08 9232 1001 E info@macmahon.com.au W macmahon.com.au Macmahon continues earnings and margin growth in first half FY21 • • • • • Increased earnings and cashflow о Revenue of $ 652.5m , down 5 % pcp Underlying EBITDA¹ of $ 121.2m , up 6 % pcp , EBITDA margin 18.6 % Underlying EBIT ( A ) ² of $ 46.5m , up 5 % pcp , EBIT ( A ) margin 7.1 % Statutory Net Profit After Tax of $ 44.8m , up 56 % pcp Operating cash flow³ of $ 96.7m , up 7 % pcp Strong balance sheet for growth Gearing at 20.0 % and Net Debt / EBITDA of 0.5x Available liquidity of $ 255m ( cash on hand of $ 148.4m ) Interim dividend increased to 0.30cps ( 20 % franked ) , up 20 % pcp Order book of $ 4.2bn5 , including preferred contract worth $ 220m Tender pipeline of $ 7bn • FY21 guidance : Revenue $ 1.3bn - $ 1.4bn ( reduced from $ 1.4bn - $ 1.5bn , due to accounting treatment of certain revenue at Batu Hijau ) - EBIT ( A ) $ 90m – $ 100m ( unchanged , as Batu Hijau accounting treatment does not impact EBIT ) Macmahon Holdings Limited ( ASX : MAH ) ( ' Macmahon ' or ' the Company ' ) has delivered earnings growth for the six months ended 31 December 2020. Statutory Net Profit After Tax increased to $ 44.8 million together with growth in underlying EBIT ( A ) , margins and operating cash flow . Revenue fell by 5 % over the prior corresponding period ( ' pcp ' ) to $ 652.5 million , due to a change in accounting treatment on certain client provided consumable items at Batu Hijau . Operational changes relating to COVID - 19 have restricted control of these items , meaning revenue and costs have not been recorded , consistent with the application of accounting standard AASB 157. As there is no margin associated with these consumable items , earnings have not been impacted . Excluding this change , revenue grew approximately 3 % across the remainder of the business . Underlying EBITDA1 increased by 6 % to $ 121.2 million ( EBITDA margin 18.6 % ) and underlying EBIT ( A ) 2 was up 5 % to $ 46.5 million ( EBIT margin 7.1 % ) , reflecting an increase in activity across the Company's operations . 1 . 2 . 3456N Underlying EBITDA is earnings before interest , tax , depreciation and amortisation , share based payments and M & A transaction costs . A reconciliation of Non - IFRS financial information is contained on slide 29 of the Company's half year results presentation . Underlying EBIT is earnings before interest and tax , share based payments and M & A transaction costs and GBF amortisation of customer contracts . Net operating cash flow excluding interest and tax and M & A costs Gearing = Net Debt / ( Net Debt + Equity ) Pro forma as at 23 February 2021 , adjusted for Batu Hijau revenue treatment , includes Deflector , and Warrawoona ( preferred ) Guidance assumes an exchange rate of AUD : USD 0.75 and excludes one - off items and amortisation related to the GBF acquisition . AASB 15 , if a customer contributes goods , to facilitate fulfilment of the contract , an assessment is required as to whether the Company obtains control of these contributed goods .