WEEKLY

14 February 2014

WWW.LCC.ASIA

Australian Engineering & Mining Services

M&A Rumour and Activity The Australian market was up over the week with the S&P / ASX100 ending at 4446 points. The Australian dollar continued to increase on positive risk sentiment, ending the week at US90 cents. Positive risk sentiment stemmed from Chinas record high imports from Australia which exceeded forecast and the new US Fed Chair, Janet Yellen, signaling a continuation of the current US monetary policy. Forge Group Limited (ASX:FGE) has been placed under voluntary administration as pressures mount from its financier. This followed the announcement of Forge entering another trading halt as its financiers have withdrawn support for the company. Forge retrenched 1,400 employees in power stations and mining projects in Western Australia and Queensland as Administrators announced there was no money to pay the employees. S&P Dow Jones announced it will remove Forge from the S&P/ASX 200, as a result of the company being placed in voluntary administration. UGL Limited (ASX:UGL) makes the demerger of its engineering and property businesses a primary concern, after posting a fall in full-year profit. UGL will aim to complete the separation of its property business DTZ from its under-performing engineering business over the next 12 to 18 months. UGL believed this separation will improve shareholder value over the short and long run. Leighton Holding (ASX:LEI) has completed its acquisition of 100% stake ownership of the Welspun Groups, its Indian-based joint venture, for US$99M. Ativo Pty Ltd (www.ativo.com.au), a provider of specialist maintenance and project services to mining, industrial, and energy resource industries, has completed the acquisition of T & C Services Pty Limited for $35M from Thomas & Coffey Limited (ASX:THO). T & C Services Pty Limited offers maintenance services to the mining, heavy industry, manufacturing, and utilities sectors in Australia.

News Headlines and Key Sector Developments

Ticker News/Event
BKN CGH CGH Announced half year earning with EBITDA of $86.2M, down 18% over the prior period. NPAT was down 18% to $38.1M Announced the appointment of Mr Peter Massey, as the Companys CFO Has been awarded a $22M contract from Rio Tinto Iron Ore to provide EPCM services for the expansion of the West Angelas iron ore mine in Western Australia Has entered a trading halt following an announcement of voluntary appointment of administrators Announced that Mr Ken Scott-Mackenzie would be resigning from the Board of Directors in March 2014. Non-executive Director Mr Jim Walker will assume the Chairmanship

Ticker News/Event
MCE MIN MLD Announced half year earning with EBITDA of $7.7M, up 20% over the prior period. NPAT was up 29.4% to $0.7M Announced half year earning with EBITDA of $305.1M, up 110% over the prior period. NPAT was up 107% to $130.4M Has entered a trading halt pending due to a weather event affecting MACAs mining operations at Duketon Appointed Mr Padraig ODonoghue as CFO & Company Secretary of VDM to replace Ms Samantha Drury Appointed Mr Garret Dixon as a new Independent NonExecutive Director

FGE MAH

VMG WTP

Source: Capital IQ, Thomson Reuters, 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 1

/2

WEEKLY
14 February 2014

WWW.LCC.ASIA
Market Cap Open Price Close Price Week High Week Low (AUD Million) (AUD) (AUD) (AUD) (AUD) Weekly Volume % Change Trend EV/ EBITDA EV/ EBIT

Australian Engineering & Mining Services

Ticker Company Name

AJL ASL AAX ANG BLY BKN BYL BOL BSA CDD CGH COF DCG DSB DOW EAL EGN EHL EVZ FWD FGE GCS GNG HDX IMD LEI LCM LYL MLD MAH MYE MIN MCE MND NMS NOD 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 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 Nomad Building Solutions 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

305 300 115 285 200 763 43 76 26 950 142 59 324 15 2,130 78 50 149 7 180 79 70 83 56 116 5,510 75 166 432 157 48 2,179 104 1,440 91 15 379 24 320 402 30 67 131 68 111 112 30 61 9 420 1,161 27 130 3,872 176

1.14 0.94 0.66 3.47 0.47 5.08 0.39 0.17 0.11 6.11 0.47 0.26 1.93 0.34 4.85 0.61 0.16 0.29 0.04 2.92 0.87 0.43 0.53 0.27 0.59 16.00 1.08 4.34 2.50 0.13 0.69 11.25 0.99 15.50 0.05 0.05 1.33 0.12 2.80 2.99 0.14 0.86 0.63 0.26 1.43 0.74 0.49 0.27 0.05 0.82 7.04 0.01 0.88 15.66 1.03

1.14 0.96 0.69 3.38 0.44 4.51 0.39 0.16 0.12 6.57 0.45 0.23 1.92 0.32 4.90 0.64 0.16 0.26 0.03 2.97 0.92 0.41 0.56 0.27 0.55 16.34 1.08 4.26 2.45 0.13 0.64 11.71 1.10 15.60 0.05 0.05 1.36 0.13 2.71 2.95 0.12 0.85 0.59 0.24 1.42 0.70 0.47 0.28 0.06 0.82 7.08 0.01 0.90 15.69 0.96

1.19 0.97 0.70 3.51 0.48 5.30 0.39 0.18 0.12 6.57 0.48 0.27 2.00 0.34 4.95 0.65 0.15 0.29 0.04 3.05 0.95 0.43 0.56 0.28 0.60 16.43 1.08 4.43 2.53 0.13 0.69 11.74 1.11 15.89 0.05 0.06 1.38 0.14 2.82 3.02 0.14 0.87 0.64 0.26 1.45 0.74 0.50 0.28 0.06 0.86 7.18 0.01 0.98 15.86 1.03

1.08 0.93 0.64 3.35 0.43 4.44 0.38 0.15 0.11 6.11 0.44 0.20 1.82 0.34 4.75 0.61 0.15 0.26 0.03 2.89 0.86 0.40 0.53 0.27 0.54 15.96 1.00 4.21 2.43 0.13 0.61 11.03 0.97 14.92 0.04 0.05 1.30 0.11 2.57 2.85 0.11 0.85 0.59 0.23 1.40 0.69 0.47 0.27 0.05 0.82 6.91 0.01 0.84 15.55 0.93

0.0% 2.1% 3.8% -2.6% -6.4% -11.2% 1.3% -5.9% 4.5% 7.5% -4.3% -9.8% -0.3% -5.9% 1.0% 5.0% 3.2% -10.5% -10.8% 1.7% 5.8% -3.5% 4.7% 0.0% -6.0% 2.1% 0.0% -1.8% -2.0% 0.0% -7.2% 4.1% 11.1% 0.6% -2.0% 1.9% 2.3% 8.7% -3.2% -1.3% -14.3% -1.2% -7.1% -5.9% -0.7% -6.1% -3.1% 3.7% 20.0% 0.0% 0.6% -10.0% 2.9% 0.2% -6.8%

NM 2.7x 3.0x 6.7x 3.8x 7.7x 2.2x 3.8x 3.7x 8.1x 3.1x 9.7x 4.1x 2.1x 3.8x 7.0x NM 3.3x 6.0x 5.4x 0.1x 3.3x 6.2x 4.3x 3.3x 3.3x 4.4x 4.3x 3.5x 1.3x 2.1x 4.2x 7.6x 5.3x 87.2x 1.1x 2.8x 2.6x 5.8x 5.5x 2.7x 6.9x 1.6x NM 4.6x 2.5x 2.7x 2.1x NM 5.0x 15.8x NM 4.9x 7.8x 2.4x

NM 4.9x 3.9x 8.2x 11.4x 12.6x 3.7x 9.2x 10.8x 9.9x 6.2x 24.2x 4.7x 2.9x 6.8x 8.2x NM 9.4x 8.2x 9.0x 0.1x 5.2x 6.8x 6.3x 4.4x 6.5x 4.7x 4.6x 5.2x 2.6x 3.1x 6.3x 32.6x 6.0x NM 1.5x 3.8x 3.7x 7.0x 7.4x 5.4x 7.4x 3.6x NM 5.1x 3.1x 8.9x 3.9x NM 9.8x 29.4x NM 10.9x 8.8x 11.2x

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

/2