WEEKLY

25 October 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

M&A Rumour and Activity The Australian market defied falls on other Asian markets to end the week up with the S&P/ASX 100 closing at 4467 points. The Australian dollar ended the week up against the US dollar after a report indicated strengthening in China's manufacturing sector. The downturn for mining services providers continues to be felt with creditors of ASX listed Allmine Group Limited (www.allminegroup.com) voting to wind up the company. Accommodation provider Nomad (ASX:NOD) has placed its Queensland business (Nomad Eastern States) into care and maintenance. Nomad plans to focus its remaining resources on its Western Australian focused McGrath Homes business and remaining rental assets of Karratha Village and Derby Housing, WA. Three other M&A announcements this week. Monadelphous (ASX:MND) has completed the sale of its non-core aviation support services business, Skystar to Menzies Aviation (www.menziesaviation.com) for $10M. As discussed below, the New Zealand joint venture between Transfield (ASX:TSE) and Worley Parsons (ASX:WOR) has been unwound with Transfield selling out to Worley. Transfield is also selling its 49% share in its Transfield Mannai facilities management business in Qatar to existing partner Mannai International.

News Headlines and Key Sector Developments

Ticker News/Event
CGH Entered into a marketing joint venture agreement with Canadian oil and gas automation business True North Automation. The joint venture intends to jointly develop oil and gas technology market opportunities in Australia and bulk commodities mining, rail and integrated operations technology opportunities in Canada Has been advised by Boral that mining operations at Borals Berrima Colliery will be transitioned into care and maintenance. Delta SBD was appointed to manage Berrima in 2009 until 30 June 2015 and now will continue to manage the care and maintenance of the colliery Successfully completed a placement to institutions and professional investors of 7,300,000 shares at $0.69/share to raise $5,037,000

Ticker News/Event
GCS Awarded contracts on two prominent Perth projects with a combined value of approximately $15.5M

DSB

HDX

Confirmed that a line of HDX shares held by JSW Australia Pty Ltd shareholders has been sold to a strategic investor. The vast majority of remaining HDX shares held by those JSW shareholders are subject to a 12 month escrow Sold its 50% share in its Transfield Worley New Zealand joint venture to existing partner Worley Parsons for $30M. TSE is also selling its 49% share in its Transfield Mannai facilities management business in Qatar to existing partner Mannai International

EAL

TSE

EHL

Amended two financial covenants under its $450M Senior Debt Facility. EHL remains in full compliance with its current covenants. Amendments to the Gearing Ratio (Gross Debt: EBITDA) and Interest Cover Ratio (EBITDA: Net Interest) covenants were sought to better enable EHL to pursue a debt reduction strategy in FY14
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

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WEEKLY
25 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 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 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 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

342 479 217 307 207 1,125 41 94 30 974 141 1,143 59 423 20 2,143 91 50 195 12 208 400 99 103 66 176 5,979 136 192 445 201 83 2,122 65 1,727 67 21 396 19 342 518 47 72 185 61 106 178 31 75 7 776 1,301 10 127 5,553 180

1.34 1.45 1.72 4.01 0.44 5.99 0.39 0.18 0.14 6.60 0.46 1.47 0.22 2.58 0.46 4.98 0.72 0.15 0.28 0.06 3.62 4.95 0.54 0.67 0.31 0.78 17.40 1.92 4.54 2.59 0.14 1.10 11.56 0.72 17.99 0.05 0.10 1.41 0.10 2.79 3.60 0.20 0.92 0.75 0.20 1.36 1.11 0.48 0.35 0.04 1.32 7.88 0.01 0.86 22.55 0.95

1.28 1.54 1.76 4.20 0.46 6.65 0.37 0.20 0.13 6.74 0.45 1.47 0.23 2.51 0.43 4.93 0.76 0.16 0.34 0.06 3.44 4.64 0.58 0.69 0.32 0.84 17.73 1.96 4.94 2.58 0.16 1.10 11.40 0.69 18.71 0.04 0.08 1.42 0.10 2.89 3.80 0.19 0.92 0.83 0.22 1.36 1.10 0.50 0.35 0.05 1.52 7.97 0.01 0.88 22.50 0.98

1.34 1.62 1.78 4.30 0.47 6.83 0.39 0.21 0.14 6.82 0.46 1.48 0.23 2.60 0.48 5.17 0.78 0.16 0.36 0.06 3.65 5.14 0.58 0.69 0.32 0.86 18.10 2.24 4.94 2.62 0.17 1.10 11.79 0.76 19.00 0.05 0.10 1.47 0.11 2.89 3.85 0.21 0.95 0.83 0.23 1.40 1.13 0.50 0.35 0.05 1.53 8.05 0.01 0.94 22.73 0.99

1.15 1.41 1.71 4.01 0.42 5.98 0.37 0.18 0.13 6.46 0.43 1.46 0.22 2.43 0.43 4.85 0.71 0.15 0.26 0.06 3.42 4.62 0.51 0.62 0.29 0.77 17.39 1.92 4.50 2.44 0.14 1.01 11.32 0.68 17.93 0.04 0.08 1.40 0.10 2.74 3.60 0.19 0.90 0.75 0.19 1.34 1.10 0.48 0.34 0.04 1.31 7.80 0.01 0.86 22.14 0.92

-4.5% 5.9% 2.3% 4.7% 4.6% 11.0% -5.1% 11.1% -3.7% 2.1% -3.3% -0.1% 4.5% -2.7% -6.5% -1.0% 5.6% 6.7% 21.8% 5.5% -5.0% -6.3% 7.4% 2.2% 1.6% 7.1% 1.9% 2.3% 8.8% -0.4% 14.3% 0.0% -1.4% -4.9% 4.0% -28.0% -22.7% 1.1% -4.0% 3.6% 5.6% -5.0% 0.0% 10.7% 7.5% 0.0% -0.9% 4.2% -1.4% 17.5% 14.8% 1.1% 0.0% 1.7% -0.2% 3.2%

NM 3.4x 5.3x 7.2x 3.9x 8.7x 2.1x 3.9x 3.9x 8.3x 3.0x 7.0x 7.5x 5.5x 2.4x 3.9x 7.8x NM 3.5x 7.9x 6.1x 3.0x 3.9x 8.0x 4.9x 4.7x 3.6x 8.8x 5.2x 3.6x 1.5x 3.5x 6.5x 6.1x 6.4x 68.3x 1.7x 2.9x 2.1x 6.5x 7.5x 3.5x 7.6x 3.1x NM 4.2x 4.6x 2.8x 2.5x NM 6.8x 17.0x NM 4.8x 10.6x 2.5x

NM 6.1x 6.9x 8.7x 11.5x 12.9x 3.6x 8.5x 11.6x 10.1x 6.2x 7.2x 13.7x 6.2x 3.3x 7.0x 9.1x NM 10.2x 10.9x 10.2x 3.8x 6.2x 8.7x 7.0x 6.2x 7.6x 9.3x 5.5x 5.4x 3.1x 4.9x 9.9x 80.4x 7.3x NM 2.4x 4.0x 3.0x 8.0x 10.1x 7.1x 8.1x 7.1x NM 4.7x 5.7x 9.3x 4.8x NM 13.4x 31.8x NM 10.6x 12.0x 11.5x

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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