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Australian Engineering, Contractors & Service Providers

Edition 241 for the week ending 15 Dec 2017 | Published 18 Dec 2017 WWW.LCCAPAC.COM

Market Performance - Overview

Percentage change Change in basis points
Index Week YTD 12 months Fixed Income Yield Week YTD 12 months
(Australia) S&P / ASX200 0.0% 5.8% 8.3% (Australia) 2-year gov bonds 1.90% 8.5 (1.7) (1.2)
(Japan) Topix (0.6%) 18.1% 16.3% (Australia) 5-year gov bonds 2.25% 7.0 (8.0) (10.9)
(Singapore) FTSE Strait Times Index (0.2%) 18.6% 16.6% (Australia) 10-year gov bonds 2.53% (0.7) (24.1) (35.5)
(Hong Kong) Hang Seng 0.7% 31.1% 30.8%
(South Korea) Kospi 200 0.5% 25.5% 24.8% Rate Week YTD 12-months
(US) S&P 500 0.9% 19.5% 18.3% AUD to USD 0.7644 1.9% 5.9% 3.9%
(US) Dow Jones Industrial 1.3% 24.7% 24.2%
(UK) FTSE 100 1.3% 4.9% 7.0%

M&A Rumour and Activity

The Australian market finished the week 0.04% higher with the S&P/ASX200 ending at 5994 points, with losses in bank stocks
offset by a rally in the property sector following Unibail-Rodamco’s $32 billion takeover bid for Westfield. The Australian dollar
finished the week 1.87% higher to end at US76.44 cents, buoyed by positive November jobs figure, while the US dollar declined
following a cautious inflation outlook from the US Federal Reserve (which reduced market expectations of quicker interest rate
rises in the US).

MMA Offshore Ltd (MRM.AX) announced on 11 December 2017 that it has successfully completed its equity raising to raise
$97 million in new funds.

News Headlines and Key Sector Developments

Ticker News/Event Ticker News/Event
CPB Contractors has achieve contractual close on the
Extended its voluntary suspension pending the release of
CIM $2.5b design and construct contract for the VIC’s West MBO
an announcement of a material transaction
Gate Tunnel,
Sedgman has been awarded contracts by QCoal Group at
Secured a new maintenance and construction contracts
CIM the Byerwen Coal Mine in Central Queensland, with a MND
with combined value of c.$110m
combined revenue of almost $100m
Finalised terms for mining works at Gascoyne Resources
UGL has been appointed as EPC contractor for Genex
CIM NWH Ltd’s Dalgaranga Gold Project. The contract is expected to
Power Ltd’s 270MW Kidston Stage 2 Solar Project in QLD
generate c.$324m revenue over 72 months to NWH
CPB Contractors, as part of the Rail Systems Alliance, has
been awarded works by the VIC government in support of Appointed Ms Denise Gibson as independent, non-
CIM ORI
the $11b Metro Tunnel Project. The contract will generate executive director
c.$312m revenue to CPB Contractors
Together with Ausenco, has been awarded a contract by OZ
Minerals for work at the Carrapateena copper gold mine Extended its contingent instrument bank guarantee facility
DOW RCR
project. Initial works are valued at c.$100m with full by a further $10m to $295m
contract value estimated at c.$312m
Received notice to proceed for the EPC and O&M for the
Has now executed the mining contract for the Mt Morgans
MAH RCR 75MWac Clermont Solar Farm and the 88MWac Wemen
Gold Mine project with Dacian Gold Ltd
Solar Farm

CPC Project Design has been by Black Rock Mining (BKT.AX) as Engineering Contractor for the Definitive Feasibility Study at BKT’s Mahenge
Graphite Project

Source: Thomson Reuters, Company Announcements, LCC research

IMPORTANT DISCLAIMER: This report has been prepared by LCC Asia Pacific 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.
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Australian Engineering, Contractors & Service Providers

Edition 241 for the week ending 15 Dec 2017 | Published 18 Dec 2017 WWW.LCCAPAC.COM

Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker Company Name Market Cap (A$ m)
(A$) (A$) (A$) (A$) change (%) Trend EBITDA EBIT
Engineering Services
AJL.AX AJ Lucas Group Ltd 220 0.32 0.38 0.39 0.32 ▲ 19.0% n.m. n.m.
BOL.AX Boom Logistics Ltd 126 0.26 0.27 0.27 0.26 ▲ 3.9% 13.3x n.m.
BSA.AX BSA Ltd 150 0.36 0.36 0.36 0.36 — 0.0% 10.4x 16.7x
BYL.AX Brierty Ltd 10 0.08 0.08 0.08 0.08 — 0.0% n.m. n.m.
CDD.AX Cardno Ltd 695 1.42 1.45 1.41 1.39 ▲ 2.1% 23.3x 102.8x
CIM.AX CIMIC Group Ltd 16,791 51.02 51.64 50.90 49.72 ▲ 1.0% 12.6x 19.0x
DCG.AX Decmil Group Ltd 231 1.15 1.33 1.25 1.15 ▲ 13.2% 158.5x n.m.
DOW.AX Downer EDI Ltd 4,109 6.75 6.91 6.76 6.69 ▲ 3.0% 10.3x 18.0x
EGN.AX Engenco Ltd 132 0.42 0.42 0.43 0.41 — 0.0% 10.1x 14.5x
GCS.AX Global Construction Services Ltd 186 0.87 0.88 0.87 0.86 ▲ 1.7% 6.1x 7.8x
GNG.AX GR Engineering Services Ltd 207 1.34 1.35 1.40 1.32 ▲ 1.9% 10.2x 11.1x
LCM.AX LogiCamms Ltd 26 0.31 0.32 0.32 0.31 ▲ 1.6% n.m. n.m.
LLC.AX LendLease Group 9,396 16.12 16.09 16.24 15.87 ▼ (0.1% ) 11.6x 13.1x
LYL.AX Lycopodium Ltd 172 4.31 4.33 4.29 4.24 ▲ 0.7% 3.7x 3.9x
MND.AX Monadelphous Group Ltd 1,631 17.90 17.35 17.50 16.87 ▼ (3.1% ) 14.2x 17.5x
OTR.AX Onterran Ltd 20 0.32 0.32 0.32 0.32 — 0.0% n.m. n.m.
RCR.AX RCR Tomlinson Ltd 655 3.99 3.96 3.96 3.89 ▼ (0.3% ) 12.4x 19.5x
RDG.AX Resource Development Group Ltd 11 0.02 0.02 0.02 0.02 ▼ (5.6% ) n.m. n.m.
SND.AX Saunders International Ltd 60 0.56 0.58 0.58 0.55 ▲ 5.5% 35.8x 73.0x
SSM.AX Service Stream Ltd 497 1.25 1.36 1.36 1.25 ▲ 8.4% 9.2x 10.8x
SWL.AX Seymour Whyte Ltd 81 0.94 0.93 0.92 0.92 — 0.0% n.m. n.m.
SXE.AX Southern Cross Electrical Engineering Ltd 174 0.75 0.75 0.75 0.74 ▲ 0.7% 30.8x n.m.
STS.AX SRG Ltd 110 1.67 1.67 1.67 1.62 ▲ 0.3% 5.6x 7.9x
TPP.AX Tempo Australia Ltd 58 0.22 0.24 0.24 0.22 ▲ 11.6% 18.2x 20.5x
VMG.AX VDM Group Ltd 5 0.00 0.00 0.00 0.00 — 0.0% n.m. n.m.
VRS.AX Veris Ltd 55 0.17 0.17 0.17 0.17 ▲ 1.5% 5.5x 41.3x
WOR.AX WorleyParsons Ltd 3,850 14.53 14.11 14.28 13.91 ▼ (2.8% ) 14.2x 18.7x
Mining Services
ASL.AX Ausdrill Ltd 838 2.24 2.33 2.28 2.23 ▲ 3.6% 8.9x 18.8x
ANG.AX Austin Engineering Ltd 145 0.26 0.25 0.26 0.25 ▼ (2.0% ) 13.3x 61.6x
BLY.AX Boart Longyear Ltd 289 0.01 0.01 0.01 0.01 ▲ 10.0% 31.2x n.m.
EHL.AX Emeco Holdings Ltd 662 0.24 0.24 0.24 0.22 ▼ (2.1% ) 20.6x 654.3x
IMD.AX Imdex Ltd 340 0.91 0.93 0.93 0.86 ▲ 1.6% 8.7x 12.5x
MAH.AX Macmahon Holdings Ltd 475 0.22 0.22 0.21 0.21 ▲ 7.3% 18.5x n.m.
MIN.AX Mineral Resources Ltd 3,394 17.47 18.10 17.65 16.10 ▲ 1.3% 7.2x 11.0x
MLD.AX MACA Ltd 422 1.65 1.58 1.63 1.58 ▼ (4.5% ) 4.6x 14.1x
MSV.AX Mitchell Services Ltd 73 0.04 0.04 0.04 0.04 ▲ 7.7% 38.9x n.m.
MYE.AX Mastermyne Group Ltd 82 0.87 0.81 0.86 0.81 ▼ (6.9% ) 17.0x n.m.
NWH.AX NRW Holdings Ltd 551 1.33 1.51 1.41 1.32 ▲ 12.3% 10.0x 19.3x
ORI.AX Orica Ltd 6,847 18.78 18.16 18.33 17.80 ▼ (3.3% ) 9.9x 14.3x
RUL.AX RPMGlobal Holdings Ltd 139 0.67 0.65 0.67 0.65 ▼ (7.1% ) 25.8x 66.8x
SWK.AX Swick Mining Services Ltd 58 0.25 0.25 0.25 0.25 ▼ (3.8% ) 6.4x n.m.
Marine Services
ASB.AX Austal Ltd 607 1.64 1.73 1.67 1.64 ▲ 2.4% 7.28 11.24
MBO.AX Mobilarm Ltd 10 0.02 0.02 0.02 0.02 — 0.0% n.m. n.m.
MCE.AX Matrix Composites & Engineering Ltd 52 0.53 0.56 0.54 0.53 ▲ 5.7% n.m. n.m.
MRM.AX MMA Offshore Ltd 223 0.24 0.26 0.26 0.24 ▲ 6.1% 24.4x n.m.
NMS.AX Neptune Marine Services Ltd 55 0.89 0.89 0.89 0.89 ▼ (1.1% ) n.m. n.m.
VEE.AX VEEM Ltd 72 0.55 0.55 0.55 0.55 — 0.0% 10.3x 12.7x
ZGL.AX Zicom Group Ltd 33 0.15 0.15 0.15 0.15 ▲ 7.1% n.m. n.m.
Facilities Management
AEI.AX Aeris Environmental Ltd 42 0.27 0.27 0.27 0.26 ▲ 3.9% n.m. n.m.
GMG.AX Goodman Group Pty Ltd 15,847 8.63 8.80 8.75 8.55 ▲ 2.3% 59.9x 61.7x
HIL.AX Hills Ltd 49 0.20 0.21 0.21 0.20 ▲ 7.7% n.m. n.m.
MIL.AX Millennium Services Group Ltd 64 1.42 1.40 1.40 1.36 ▼ (1.8% ) 5.4x 8.5x
SPO.AX Spotless Group Holdings Ltd 1,238 1.11 1.12 1.11 1.11 ▼ (2.6% ) 9.0x 17.8x
TPS.AX Threat Protect Australia Ltd 18 0.18 0.18 0.18 0.17 ▼ (2.8% ) 7.6x 10.6x
UBN.AX Urbanise com Ltd 21 0.04 0.04 0.04 0.04 — 0.0% n.m. n.m.
So urce: Tho mso n Reuters, LCC research

IMPORTANT DISCLAIMER: This report has been prepared by LCC Asia Pacific 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.