WEEKLY

30 August 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

Market review The market closed marginally higher as fears that the Syrian conflict might spiral into a major crisis faded. The Australian dollar ended the week at 89 US cents. Despite the release of key GDP data for the June quarter this week, LCC expects the market to remain cautious until the election on September 7.

4300

S&P/ASX 100 Index

0.940

AUD vs USD

0.920

0.900

4100 31 Jul 13

15 Aug 13

30 Aug 13

0.880 31 Jul 13

15 Aug 13

30 Aug 13

Source: Capital IQ

News Headlines and Key Sector Developments

Ticker News/Event
AJL Announced an EBITDA of $19.3M. Underlying EBITDA was $3.3M in line with market guidance. The result was impacted by impairment charges of $45.7M, restructuring and recapitalisation costs of $3.0M and provisions on legacy contracts of $13.1M Reported a modest increase in revenue but a decrease in earnings. FY13 EBITDA has decreased from $288.4M to $272.7M. The after tax profit decreased from $112.2M in 2012 to $90.4M Announced FY13 results with revenue increasing by 22% to $145.1M (2012: $118.8M). Underlying NPAT increased by 26% to $8.0M (2012: $6.40M) Recorded FY13 NPAT of $7.7M, up 168% and in line with guidance. Sales revenue increased by 22% to $200M while EPS was up 140% to 7.2 cents Reported NPAT of $62.9M for FY13; a 28% increase on the previous corresponding period (FY12: $49.3M). During FY13, FGE secured circa $900M of new contracts, and entered FY14 with an order book of $1.3B Released an NPAT result of $11.5M for FY13, down 27% over the prior corresponding period. Revenue was also down by 8.5% from prior corresponding period to $248.8M Recorded EBIT of $7.7M for FY13. NPAT of $5.2M demonstrates OTCs success in two strategic focus areas: business diversification and improved financial management
Source: Capital IQ, Thomson Reuters, LCC research

Ticker News/Event
SSM As a result of issues with its Fixed Communications segment, SSM recorded a FY13 EBITDA loss of 13.4M and an NPAT loss of $107.1M. On a positive note, SSMs other segments performed well delivering a combined EBITDA of $24.3M Announced a 4.7% increase in NPAT to $9.3M for FY13, slightly exceeding earnings guidance. EPS increased to 11.9 cents, from 11.4 cents previously while net tangible assets increased 14% to $44.4M, up from $38.8M in FY12 Announced the best financial result in SXEs 35 year history with revenue up 26% to $278.0M and NPAT up 27% to $17.3M Announced its NPAT, pre amortisation and impairment charges for FY13, was $62.5M, in line with guidance. Operating cash flow was $210.5M, up 72% on FY12, with net debt falling by $75M from 31 December 2012 to $566M at 30 June 2013 Announced FY13 group revenue of $351.95M (unchanged on FY12) with NPAT of $8.25M (FY12 $8.56M). WDSs mining division remained profitable despite the slowdown in the coal sector Announced an after tax loss of $4.7M for FY13 (2012: $50.2M loss). The result is in line with previous guidance and was primarily impacted by costs associated with the closure of WTPs civil operations along the east coast of Australia

ASL

SWL

DSB

SXE

EAL

TSE

FGE

WDS

MYE

WTP

OTC

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
30 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

374 459 201 254 209 965 41 66 38 916 158 1,123 56 398 20 1,803 77 53 105 11 188 455 78 89 53 145 5,868 110 175 400 163 67 2,057 83 1,689 65 382 18 300 441 40 72 149 35 111 160 25 50 8 586 1,210 10 106 5,432 121

1.45 1.46 1.69 3.75 0.52 5.83 0.38 0.15 0.18 6.32 0.51 1.44 0.24 2.36 0.43 4.25 0.63 0.17 0.19 0.07 3.52 5.32 0.47 0.56 0.25 0.71 17.35 1.59 4.38 2.15 0.14 0.92 11.03 0.83 18.04 0.04 1.28 0.09 2.55 2.91 0.16 0.95 0.71 0.15 1.32 0.98 0.35 0.32 0.05 0.83 7.31 0.02 0.62 22.80 0.56

1.40 1.47 1.63 3.47 0.46 5.70 0.37 0.14 0.17 6.40 0.52 1.45 0.22 2.36 0.42 4.16 0.68 0.17 0.18 0.06 3.10 5.28 0.46 0.60 0.29 0.69 17.40 1.58 4.50 2.32 0.13 0.89 11.06 0.88 18.57 0.04 1.37 0.10 2.54 3.30 0.16 0.92 0.68 0.13 1.43 0.99 0.40 0.30 0.05 1.15 7.41 0.01 0.73 22.01 0.66

1.45 1.49 1.70 3.89 0.53 5.98 0.40 0.15 0.18 6.42 0.52 1.45 0.25 2.37 0.43 4.32 0.70 0.17 0.20 0.07 3.55 5.40 0.47 0.63 0.29 0.71 17.93 1.63 4.58 2.32 0.14 0.93 11.24 0.88 18.81 0.04 1.39 0.10 2.56 3.33 0.17 0.95 0.73 0.15 1.49 1.07 0.43 0.32 0.05 1.16 7.46 0.02 0.79 22.80 0.68

1.33 1.22 1.56 3.41 0.42 5.42 0.35 0.13 0.17 6.13 0.49 1.43 0.22 2.15 0.40 4.09 0.60 0.17 0.17 0.06 3.01 4.61 0.45 0.56 0.25 0.65 16.66 1.57 4.17 2.13 0.13 0.87 10.66 0.77 17.75 0.04 1.16 0.09 2.47 2.90 0.15 0.91 0.67 0.13 1.32 0.91 0.33 0.30 0.05 0.81 7.14 0.01 0.61 21.02 0.55

-3.4% 0.7% -3.8% -7.5% -11.5% -2.2% -2.6% -3.4% -5.7% 1.3% 1.0% 0.3% -6.4% 0.0% -1.2% -2.1% 7.9% 0.0% -5.3% -17.9% -11.9% -0.8% -2.1% 6.2% 16.0% -2.8% 0.3% -0.9% 2.7% 7.9% -3.7% -3.3% 0.3% 5.4% 2.9% 0.0% 7.0% 3.3% -0.4% 13.4% 0.0% -3.2% -4.9% -16.7% 8.3% 1.0% 14.5% -4.8% 0.0% 38.0% 1.4% -55.0% 18.7% -3.5% 18.0%

NM NM 3.4x 6.0x 4.9x 6.4x 6.1x 7.4x 3.9x 11.5x 7.8x 11.6x 2.1x 3.6x 3.4x 7.4x 4.7x 12.0x 7.9x 9.6x 3.3x 6.8x 6.8x 7.0x 7.3x 13.5x 5.2x 5.8x 2.3x 3.3x 3.3x 6.0x 8.6x 10.6x NM NM 3.0x 8.7x 8.1x 13.5x 5.5x 9.0x 3.5x 4.4x 3.5x 5.5x 5.9x 6.4x 4.2x 6.3x 4.0x 5.3x 3.6x 7.5x 6.9x 7.3x 4.7x 5.0x 3.2x 4.8x 1.3x 2.7x 3.1x 4.2x 6.4x 9.6x 7.7x 101.7x 6.3x 7.1x 66.1x NM 2.8x 3.8x 1.9x 2.6x 5.9x 7.2x 6.2x 8.3x 2.8x 4.4x 7.6x 8.1x 2.1x 4.7x 53.0x NM 10.6x 13.3x 4.0x 5.0x 2.4x 7.9x 1.7x 3.1x NM NM 5.9x 11.5x 16.2x 30.2x NM NM 3.9x 8.4x 10.4x 11.8x 1.5x 7.1x
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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