WEEKLY

2 August 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

Market review The Australian dollar ended the week below the US90 cent mark following weak producer price index data which gave the Reserve Bank of Australia further incentive to cut interest rates. The dollar also dropped sharply mid-week after Reserve Bank of Australia Governor, Glenn Stevens, indicated that last weeks soft inflation numbers provided scope to cut rates. Australian shares surged through the week as the market followed global stocks higher on the back of positive manufacturing news from China and favourable employment data in the US. The week ended on a sour note as Treasurer Chris Bowen revealed four-year forward revenue estimates have been slashed by $33B, with the budget deficit to hit $30.1B this financial year.

4400

S&P/ASX 100 Index

0.940

AUD vs USD

4200

0.920

4000

0.900

3800 3 Jul 13

18 Jul 13

2 Aug 13

0.880 3 Jul 13

18 Jul 13

2 Aug 13

Source: Capital IQ

News Headlines and Key Sector Developments

Ticker News/Event
BYL Has entered into a new joint venture with Kalayura Construction Services known as the Brierty Kalayura Joint Venture. The joint venture provides BYLs clients the opportunity to engage an Aboriginal contracting company for civil and mining infrastructure works Received a conditional proposal from its major shareholder, Murray & Roberts Holdings Limited, to acquire all the outstanding shares in CLO that it does not already own at $1.46 cash per share. Murray & Roberts is a major South African engineering, contracting and construction services company and first invested in CLO in 2003. They currently own 61.6% of CLO Has been invited to enter into discussions with Slater & Gordon Lawyers (in relation to a proposed shareholder class action), failing which Slater & Gordon Lawyers have been instructed to commence proceedings. No details of the amount of claims have been provided and DOW will vigorously defend any proceedings Announced that the Managing Director, Mr Keith Gordon, has stepped down. Mr Gordon will remain in his current position until a successor is appointed and commences with EHL

Ticker News/Event
LEI Has taken 100% ownership of telecommunications, energy and infrastructure services company, Silcar Pty Ltd. Silcar was a 50/50 joint venture between Thiess and Siemens. The acquisition was agreed so that both companies could better focus their respective strategic portfolios Thiess has been awarded a $650M contract to deliver the long awaited Moreton Bay Rail Link which will service a major suburban growth corridor in South East Queensland. Thiess is the construction spearhead of the Trackstar team which includes design subcontractors Aurecon, AECOM, HASSELL, and geotechnical subcontractor Golder Associates Has taken 100% ownership of infrastructure engineering company Norfolk Group Limited in accordance with the previously announced scheme of arrangement

CLO

LEI

DOW

RCR

EHL

WDS

Expects NPAT for the 12 months to 30 June 2013 to slightly exceed the upper end of its February guidance range of $6 to $8M. Revenue for FY13 is now expected to be in the range of $350 to $355M, compared with the Companys previous guidance of $330-350M
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
2 August 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

Ticker Company Name

Market Cap Open Price Close Price (AUD Million) (AUD) (AUD)

High (AUD)

Low

Weekly

Volume Trend

EV/ EBITDA

EV/ EBIT

(AUD) % Change

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 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 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

418 351 187 305 248 836 32 68 40 839 112 1108 35 352 20 1669 62 53 149 12 233 401 85 71 44 162 5881 101 162 355 175 56 1819 87 1510 68 282 14 295 317 37 66 137 95 159 23 50 8 489 1214 18 68 5430 96

1.44 1.10 1.50 4.00 0.54 4.60 0.28 0.13 0.17 5.55 0.34 1.10 0.14 2.10 0.44 3.74 0.55 0.16 0.27 0.05 3.80 4.26 0.46 0.49 0.26 0.76 16.50 1.45 4.20 1.95 0.15 0.70 9.54 0.88 16.30 0.04 0.98 0.06 2.48 2.32 0.15 0.84 0.65 1.20 1.01 0.38 0.31 0.05 0.91 7.25 0.02 0.37 21.75 0.55

1.57 1.13 1.52 4.17 0.55 4.97 0.29 0.15 0.18 5.84 0.37 1.43 0.14 2.09 0.43 3.85 0.55 0.17 0.26 0.06 3.85 4.65 0.50 0.47 0.24 0.77 17.44 1.45 4.15 2.06 0.14 0.74 9.78 0.92 16.60 0.04 1.01 0.08 2.50 2.39 0.15 0.85 0.62 1.23 0.99 0.37 0.30 0.05 0.96 7.40 0.02 0.47 21.98 0.52

1.61 1.43 8.7% 1.17 1.08 2.3% 1.55 1.46 1.3% 4.20 3.98 4.3% 0.56 0.51 1.9% 5.05 4.53 8.0% 0.30 0.28 5.5% 0.15 0.13 11.5% 0.18 0.17 6.1% 5.89 5.17 5.2% 0.38 0.33 7.4% 1.43 1.10 29.5% 0.14 0.13 -3.6% 2.11 2.05 -0.5% 0.44 0.43 -2.3% 3.90 3.67 2.9% 0.56 0.52 0.0% 0.17 0.15 9.7% 0.27 0.25 -3.8% 0.06 0.05 16.0% 4.14 3.65 1.3% 4.69 4.24 9.2% 0.51 0.46 8.7% 0.49 0.47 -4.1% 0.26 0.24 -7.7% 0.82 0.73 1.3% 17.57 16.16 5.7% 1.48 1.41 0.0% 4.20 4.06 -1.2% 2.11 1.95 5.6% 0.15 0.14 -3.4% 0.78 0.67 5.7% 9.91 9.40 2.5% 0.93 0.86 4.5% 16.65 15.96 1.8% 0.04 0.04 5.7% 1.03 0.94 3.6% 0.08 0.05 36.4% 2.51 2.40 0.8% 2.43 2.30 3.0% 0.15 0.14 0.0% 0.86 0.83 0.6% 0.66 0.61 -4.6% 1.25 1.16 2.1% 1.01 0.99 -2.5% 0.39 0.35 -2.7% 0.31 0.30 -1.6% 0.05 0.05 -3.8% 0.97 0.88 5.5% 7.51 7.20 2.1% 0.02 0.02 5.6% 0.49 0.37 27.0% 22.45 21.54 1.1% 0.55 0.52 -4.6%

NM 2.8x 2.9x 6.0x 2.4x 5.5x 1.9x 3.0x 4.9x 7.3x 1.6x 10.0x 3.3x 3.7x 2.8x 3.5x 7.3x NM 2.4x 8.3x 3.8x 3.0x 3.5x 4.1x 3.7x 3.2x 3.4x 5.5x 3.7x 3.7x 1.1x 2.1x 7.5x NM 5.9x 70.4x 1.5x 1.6x 5.8x 4.6x 2.7x 7.5x 1.3x 8.4x 5.0x 2.2x 1.7x NM 5.3x 9.1x NM 3.0x 10.4x NM

NM 4.8x 3.4x 6.9x 3.8x 7.2x 3.0x 5.3x 12.5x 8.5x 2.5x 10.3x 4.5x 4.0x 3.5x 6.2x 9.1x NM 5.2x 13.9x 5.1x 3.8x 5.3x 4.5x 5.6x 3.7x 6.9x 5.7x 3.9x 5.6x 2.0x 2.7x 11.3x NM 6.7x NM 1.9x 2.2x 7.1x 6.4x 4.3x 8.0x 1.9x 10.5x 6.1x 5.2x 3.3x NM 10.1x 12.5x NM 6.6x 11.5x NM

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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