WEEKLY

11 October 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

M&A Rumour and Activity The Australian market was up 1.3% for the week, buoyed after the US White House endorsed a non-conditional temporary increase in the debt limit. If the US cannot agree to raise the borrowing limit, the US could default on its debt by the end of October. Takeover speculation continues in the industry with Bradken the latest company to be subject (albeit denied by the company) to M&A rumour. Emeco and UGL have also been the subject of increased M&A speculation. Offshore activity in acquiring onshore companies continued last week with 2 small deals announced. Wood Group Wagners (www.woodgroupwagners.com), a Queensland based CSG oriented Engineering Services Firm closed the sale of 45% to UK based Production Services Network. Value has not been disclosed at this time (but we are keeping our eye out as usual). Mancala (www.mancala.com.au), an underground Mining Services specialist (in particular around raise boring) sold itself in a heavily structured share based transaction to Singaporean Sapphire Corporation, which is listed on the Singaporean Second Board (Catalist). Deal value was disclosed at $15M which included a $2M loan from Sapphire to Mancala, $1.5m in shares granted 3 months from completion, $4M following audited accounts being issued 31 Dec 2014 and $9.5M in shares granted following audited accounts being issued 31 Dec 2015.

News Headlines and Key Sector Developments

Ticker News/Event
ANG Has further expanded operations in northern Chile through the acquisition of competitor Servigrut for US$21M (payable in cash)

Ticker News/Event
MND Secured maintenance and infrastructure construction contracts with a combined value of approximately $250M. The contracts are with customers in the oil and gas sector in WA and the water sector in QLD Has completed the sale of the VDM Construction (Eastern Operations) business. Given the impact this transaction would have within the notes of the VMGs annual return, VMG has decided to not lodge their accounts at this time, and as such will remain in suspension until those matters are finalised Won contract work with a total value exceeding $50M for delivery in the current financial year. Two of the contracts are with Santos (GLNG Project) and Vale (Carborough Downs Coal Mine) Has been awarded a $25M contract from Australia Post to deliver a major expansion at its Melbourne Parcel Facility in Ardeer
Source: Capital IQ, Thomson Reuters, LCC research

CDD

Signed an agreement to acquire Haynes Whaley Associates, a 100 person structural engineering firm headquartered in Houston Texas for US$22.25M. The acquisition is expected to contribute approximately US$20M in revenue and US$4.6M in EBITDA over the next twelve months The Federal Court of Australia has given orders to CLO approving the issue of the Scheme Booklet in relation to the proposed acquisition by Murray & Roberts Pty Ltd Awarded an additional $9M of formwork and concrete works to its initial contract award for the construction of the Brookfield Place Tower 2 project located in Perths CBD

VMG

CLO

WDS

GCS

WTP

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
11 October 2013

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 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

353 433 203 260 193 1,012 43 82 32 916 149 1,135 58 391 20 2,026 73 50 131 11 215 429 89 102 71 168 5,999 131 183 442 169 77 2,120 66 1,600 83 376 20 333 481 47 71 164 48 105 181 28 76 8 648 1,278 10 114 5,467 151

1.32 1.40 1.62 3.17 0.44 5.80 0.38 0.19 0.14 6.10 0.48 1.46 0.21 2.29 0.53 4.50 0.67 0.14 0.25 0.05 3.57 4.89 0.50 0.69 0.35 0.83 16.95 1.87 4.79 2.55 0.13 1.00 10.81 0.68 17.85 0.05 1.35 0.10 2.76 3.49 0.18 0.89 0.76 0.17 1.40 1.17 0.43 0.36 0.05 1.14 7.74 0.01 0.76 23.10 0.82

1.32 1.39 1.65 3.55 0.43 5.98 0.40 0.18 0.14 6.38 0.47 1.46 0.23 2.32 0.44 4.66 0.65 0.16 0.23 0.05 3.55 4.98 0.52 0.68 0.34 0.80 17.79 1.88 4.69 2.56 0.14 1.02 11.40 0.70 17.33 0.05 1.35 0.11 2.82 3.53 0.19 0.91 0.74 0.17 1.35 1.12 0.44 0.35 0.05 1.27 7.83 0.01 0.79 22.15 0.82

1.38 1.42 1.67 3.58 0.45 6.15 0.40 0.19 0.14 6.43 0.48 1.46 0.23 2.32 0.53 4.66 0.70 0.16 0.25 0.05 3.62 5.12 0.52 0.69 0.36 0.85 17.84 1.90 4.79 2.59 0.14 1.02 11.47 0.74 17.94 0.05 1.38 0.11 2.83 3.66 0.19 0.93 0.76 0.18 1.40 1.21 0.44 0.37 0.06 1.27 7.87 0.00 0.80 23.57 0.83

1.30 1.28 1.54 3.17 0.41 5.53 0.38 0.18 0.13 5.81 0.46 1.45 0.20 2.03 0.44 4.27 0.65 0.12 0.22 0.05 3.36 4.69 0.48 0.65 0.33 0.78 16.64 1.71 4.60 2.49 0.12 0.95 10.81 0.67 16.74 0.05 1.23 0.10 2.70 3.11 0.18 0.87 0.73 0.16 1.33 1.10 0.43 0.34 0.05 1.14 7.46 0.00 0.75 21.51 0.78

0.0% -1.1% 1.5% 12.0% -3.4% 3.1% 5.3% -5.4% 0.0% 4.6% -2.1% 0.3% 7.1% 1.3% -17.0% 3.6% -3.0% 14.3% -8.2% 0.0% -0.6% 1.8% 4.0% -0.7% -2.9% -3.6% 5.0% 0.5% -2.1% 0.4% 8.0% 2.0% 5.5% 2.9% -2.9% 0.0% 0.0% 5.0% 2.2% 1.1% 5.6% 2.2% -3.3% 0.0% -3.6% -4.3% 2.3% -2.8% 0.0% 11.0% 1.2% 0.0% 3.9% -4.1% 0.0%

NM 3.2x 5.0x 6.3x 3.8x 8.1x 2.2x 3.7x 4.1x 7.9x 3.1x 6.9x 7.4x 5.1x 2.4x 3.7x 6.7x NM 3.2x 7.6x 6.3x 3.3x 3.7x 7.9x 5.2x 4.5x 3.6x 8.3x 4.9x 3.5x 1.4x 3.2x 6.5x 6.2x 5.9x 87.5x 2.8x 2.3x 6.4x 6.9x 3.5x 7.5x 2.5x NM 4.2x 4.7x 2.6x 2.6x NM 6.2x 16.8x NM 4.4x 10.5x 2.0x

NM 5.8x 6.4x 7.6x 11.3x 12.0x 3.8x 8.0x 12.2x 9.6x 6.4x 7.2x 13.6x 5.7x 3.3x 6.6x 7.8x NM 9.1x 10.4x 10.5x 4.1x 5.9x 8.7x 7.4x 6.0x 7.6x 8.9x 5.2x 5.3x 2.8x 4.6x 9.9x 82.1x 6.7x NM 3.8x 3.2x 7.8x 9.3x 7.1x 8.0x 5.7x NM 4.6x 5.8x 8.5x 4.9x NM 12.1x 31.4x NM 9.6x 11.8x 9.4x

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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