WEEKLY

23 August 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

Market review The market finished the week slightly higher amid encouraging Chinese and European economic data, stronger resource prices and a rush of earnings announcements. The Australian dollar ended the week slightly above 90 US cents. A key theme to the reporting season has been consolidation, with companies across all sectors noting the challenging business environment.

4300

S&P/ASX 100 Index

0.940

AUD vs USD

4250 4200
4150

0.920

0.900

4100 24 Jul 13

8 Aug 13

23 Aug 13

0.880 24 Jul 13

8 Aug 13

23 Aug 13

Source: Capital IQ

News Headlines and Key Sector Developments

Ticker News/Event
ANG Announced EBITDA of $51.1M for FY13 (up 2%), with NPAT of $28.4M (down 4%) and earnings per share of 39.2cps. Results were impacted by curtailed expenditure on mining equipment and maintenance programs by coal mining customers Has reported a record NPAT of $10.2M for FY13, reflecting BYLs broad project mix and solid operating performance. Revenue for the year was $292.4 million, up 16% from FY12 Announced a record profit of $77.6M for FY13. Revenue for the year was $1,195M, up 23.8%. NPAT was $77.6M, a 4.7% increase over FY12 Reported FY13 NPAT of $64.4M. The result has been delivered on the back of revenues of $528.8M, with margins improving by 21%. The result reflects DCGs strategy to diversify earnings through a broadening of services while pursuing higher margins Reported revenues of $439.7M for FY13 (down 22.2%). NPAT was $35.2M (down 50.5%). Lower revenue on fixed overheads cost base impacted EBITDA margins in Australia and Indonesia Reported sales revenue of $114.7M and PBT of $11.5M, reflecting a weaker financial performance than achieved in FY12 ($152.8M revenue and PBT of $19.9M), largely due to a soft first half

Ticker News/Event
IMD Reported FY13 revenue of $249.4M (down 11%). EBITA was down 53% to $35.2M, which included $3.0M of restructuring costs. NPAT was down 58% to $19.4M Announced a full year loss of $29.5M including net loss after tax of $73.1M from discontinued construction operations. Had record mining revenue for FY13 of $1.2B. Expected FY14 revenue is in the range of $0.9 - $1.2B, but remains at risk FY13 sales revenue was a record $2,614M ($1,897M FY12), up 37.8%. EBITDA was up 25.7% to $247M and NPAT was a record $156.3M, up 24.1% Delivered record earnings with NPAT of $37.3M, up 37% on the previous corresponding period, from record revenue of $875.2M (an increase of 8.2%). At year end RCR had no debt and a net cash balance of $95.8M up $50.7M on FY12 Reported FY13 revenue of $435.5M was down 33.1%. Market volatility and a weak resources sector, particularly in coal attributed to NPAT being down 75.1% to $9.4M Reported FY13 revenue of $60.5M, up 31.5%. EBITDA was $8.3M. NPAT was up 29.5% to $5.8M. SND noted that projects for FY14 are beginning to be released although some hesitation persists
Source: Capital IQ, Thomson Reuters, LCC research

BYL

MAH

CDD

MND

DCG

RCR

EHL

SDM

GNG

SND

IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made. Page 1

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WEEKLY
23 August 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

Ticker Company Name

Market Cap Open Price Close Price (AUD Million) (AUD) (AUD)

High

Low

Weekly Volume Change Trend

EV/ EBITDA

EV/ EBIT

(AUD) (AUD) %

AJL ASL AAX ANG BLY BKN BYL BOL BSA CDD CGH CLO COF DCG DSB DOW EAL EGN EHL EVZ FWD FGE GCS GNG HDX IMD LEI LCM LYL MLD MAH MYE MIN MCE MND NMS NWH OTC PRG RCR RQL SND SDM SSM SWL SXE STS SWK TPP TSE UGL VMG WDS WOR WTP

AJ Lucas Group Limited Ausdrill Limited Ausenco Limited Austin Engineering Limited Boart Longyear Limited Bradken Limited Brierty Limited Boom Logistics Limited BSA Limited Cardno Limited Calibre Group Limited Clough Limited Coffey International Limited Decmil Group Limited DeltaSBD Limited Downer EDI Limited E&A Limited Engenco Limited Emeco Holdings Limited EVZ Limited Fleetwood Corporation Limited Forge Group Limited Global Construction Services Limited GR Engineering Services Limited Hughes Drilling Pty Limited Imdex Limited Leighton Holdings Limited Logicamms Limited Lycopodium Limited MACA Limited MacMahon Holdings Limited Mastermyne Limited Mineral Resources Limited Matrix Composites & Engineering Monadelphous Group Limited Neptune Marine Services Limited NRW Holdings Limited OTOC Limited Programmed Maintenance Services RCR Tomlinson Limited Resource Equipment Limited Saunders International Limited Sedgman Limited Service Stream Limited Seymour Whyte Limited Southern Cross Electrical Engineering Structural Systems Limited Swick Mining Services Limited Tempo Australia Limited Transfield Services Limited UGL Limited VDM Group Limited WDS Limited WorleyParsons Limited Watpac Limited

396 456 205 274 252 987 41 68 38 906 157 1111 58 395 20 1846 71 53 111 12 212 461 85 84 45 146 5827 109 171 361 176 69 2046 78 1635 74 353 19 301 381 39 70 156 44 103 158 20 53 8 425 1203 16 87 5704 103

1.52 1.39 1.67 4.30 0.58 5.58 0.30 0.15 0.17 6.33 0.51 1.43 0.21 2.16 0.43 4.18 0.61 0.17 0.21 0.06 3.91 4.96 0.52 0.48 0.25 0.74 16.70 1.48 4.29 2.01 0.17 0.97 10.45 0.88 18.60 0.04 1.17 0.09 2.44 2.67 0.16 0.93 0.68 0.17 1.34 1.00 0.35 0.30 0.05 0.91 7.10 0.02 0.59 22.25 0.54

1.48 1.46 1.66 3.74 0.56 5.83 0.38 0.15 0.17 6.33 0.51 1.43 0.23 2.35 0.43 4.26 0.63 0.17 0.19 0.06 3.51 5.35 0.50 0.56 0.25 0.70 17.28 1.57 4.38 2.09 0.14 0.92 11.00 0.82 17.98 0.04 1.27 0.10 2.55 2.88 0.16 0.90 0.71 0.16 1.32 0.98 0.33 0.32 0.05 0.83 7.37 0.02 0.60 23.11 0.56

1.54 1.52 1.76 4.49 0.63 5.90 0.38 0.15 0.18 6.38 0.55 1.45 0.24 2.39 0.43 4.36 0.63 0.17 0.22 0.06 3.91 5.45 0.55 0.64 0.26 0.74 17.35 1.58 4.38 2.14 0.18 0.97 11.13 0.91 19.15 0.04 1.27 0.11 2.55 2.95 0.18 0.95 0.72 0.17 1.35 1.05 0.35 0.32 0.06 0.91 7.39 0.02 0.60 23.30 0.58

1.40 1.37 1.61 3.53 0.54 5.55 0.29 0.15 0.17 6.14 0.48 1.42 0.20 2.05 0.42 4.03 0.61 0.17 0.18 0.06 3.28 4.96 0.46 0.48 0.23 0.64 16.57 1.46 4.10 1.99 0.13 0.87 10.40 0.80 17.51 0.04 1.11 0.09 2.43 2.62 0.16 0.90 0.65 0.14 1.29 0.98 0.33 0.30 0.05 0.83 7.00 0.02 0.58 22.04 0.54

-2.3% 5.4% -0.6% -13.0% -4.3% 4.5% 27.1% -4.6% 0.0% 0.0% 0.0% 0.4% 7.1% 8.8% 0.0% 1.9% 3.3% 0.0% -9.5% 0.0% -10.2% 7.9% -3.8% 17.9% 0.0% -6.1% 3.5% 6.1% 2.1% 4.0% -15.2% -5.2% 5.3% -6.8% -3.3% 0.0% 8.6% 14.9% 4.5% 7.9% -3.1% -2.7% 4.4% -6.1% -1.1% -2.0% -7.1% 5.0% 0.0% -8.3% 3.8% 0.0% 1.7% 3.9% 3.7%

NM 3.2x 5.0x 5.5x 2.4x 7.9x 2.1x 3.4x 4.7x 7.8x 3.3x 6.7x 7.4x 4.8x 2.8x 3.4x 8.1x NM 3.0x 8.3x 6.1x 3.6x 3.5x 5.5x 3.8x 4.0x 3.5x 6.8x 4.5x 3.7x 1.4x 2.5x 6.3x 7.3x 6.0x 76.8x 2.6x 2.0x 5.9x 4.6x 2.7x 6.5x 2.3x 2.0x 9.4x 5.0x 2.0x 1.8x NM 5.0x 16.1x NM 3.6x 10.8x NM

NM 5.5x 6.5x 6.4x 3.9x 11.7x 3.7x 7.4x 12.0x 9.5x 6.7x 6.9x 13.6x 5.2x 3.5x 6.1x 10.0x NM 8.8x 13.7x 10.0x 4.5x 5.3x 5.9x 5.7x 5.3x 7.4x 7.4x 4.8x 5.7x 2.8x 3.2x 9.6x 95.5x 6.9x NM 3.6x 2.8x 7.2x 6.0x 4.4x 6.9x 5.2x 2.3x 11.8x 6.1x 4.9x 3.5x NM 9.5x 30.1x NM 8.0x 12.3x NM

So urce: Capital IQ, LCC research

IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made. Page 2

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