WEEKLY

7 March 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 4530 points. The Australian dollar was up, ending the week at US90.8 cents, as Australia posted a large increase in trade surplus which resulted in its highest positive trade balance since August 2011. S&P Dow Jones Indices conducted its quarterly rebalance and announced it will add: RCR to its S&P/All Australia 200 Index, WDS, SWL to its All Ordinaries Index and remove UGL from S&P/ASX 100 Index, ASL, DCG from S&P/ASX 200 Index, SDM from S&P/ASX 300 Index, COF, GCS, GNG, MCE and MYE from All Ordinaries Index, effective after the close of trading on March 21, 2014. Leighton Holdings (ASX:LEI) was given an ASX speeding ticket after its stock price was up 16% in three days. It has since announced that major shareholder, Hochtief, intends to make $22.14 cash per share proportional offer under which Hochtief would, if all Leightons shareholders accept, increases its stake in Leighton from 58.77% to 74.23%. Fugro NV (ENXTAM:FUR) acquired a provider of mapping services and solutions for electricity distribution sector, Roames Asset Services Pty Ltd. Roames Asset Services has reported revenues of 7 million uses airborne sensors to generate accurate 3D models of electric power transmission networks and surrounding vegetation. Fabricor Industries (www.fabricorindustries.com), an engineering, fabrication and construction company based in Western Australia, acquired FWF Welding Services. Fabricor Industries is planning to expand FWFs operation to include structural, mechanical and piping engineering and design, as well electrical, instrumentation and control systems engineering and design. Savcor Group Limited (ASX:SAV) announced it has entered into a conditional Share Purchase Deed with Soletanche Freyssinet, a provider of civil engineering and construction services, for the sale of its wholly owned subsidiary, ART Entities. If the proposed sale is completed, Savcor will be paid upfront consideration of $13.5 million and will be eligible for a conditional earn-out payments of up to $14 million subject to the financial performance of ART Entities.

News Headlines and Key Sector Developments

Ticker News/Event
ANG Awarded a three year contract for the supply of cranes and spot services at BHPs Spence mine in Northern Chile, valued at approximately $10M Announced half year earnings with EBITDA of -$13.8M. NPAT resulted in a net loss of $23.4M Announced the appointment of Mr Craig Amos as Chief Financial Officer Awarded a contract by Tecnicas Reunidas S.A. for work on the Technical Ammonium Nitrate Plant project located near Karratha in Western Australia, valued at approximately $70M Announced it has reached an agreement with Consolidated Minerals Pty Ltd with respect to a legal dispute between the parties. The settlement agreement includes a cash payment of $44M by CML to MRL, a transfer of ownership of the Coobina tenements to MRL and monetise MRL's rights to manganese tailings at CMLs Woodie Woodie operations
Source: Capital IQ, Thomson Reuters, LCC research

Ticker News/Event
MYE Announced Colin Bloomfield has been appointed as a NonExecutive Director Announced half year earnings with EBITDA of -$0.5M, an improvement of 60.9%. NPAT resulted in a net loss of $1.2M, contrast to previous corresponding net loss of $7.4M Announced it has secured a three year extension of its operating contract at the Red Mountain Joint Venture in the Bowen Basin, Queensland, valued at approximately $90M Has been appointed to provide detailed engineering and procurement services for Phase 1 of the North West Redwater Partnerships greenfield bitumen refinery project in Canada, valued at approximately $130M

BSA

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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
7 March 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 MRM 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 Mermaid Marine Australia 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

245 289 100 199 133 765 43 81 29 921 153 64 369 13 2,248 83 47 150 6 156 79 89 101 52 126 6,988 70 135 462 157 44 2,362 111 1,615 549 15 326 25 344 448 30 73 116 71 140 128 39 42 14 441 1,075 24 164 4,178 175

0.95 0.96 0.61 2.35 0.31 4.21 0.40 0.17 0.12 6.28 0.51 0.23 2.25 0.25 4.98 0.65 0.16 0.24 0.03 2.65 0.92 0.46 0.69 0.27 0.58 18.20 0.91 3.70 2.72 0.12 0.50 12.04 1.22 17.48 2.45 0.05 1.26 0.13 2.98 3.15 0.14 0.93 0.53 0.25 1.63 0.88 0.61 0.26 0.08 0.89 6.37 0.01 1.16 16.44 0.97

0.92 0.93 0.60 2.36 0.29 4.52 0.40 0.17 0.13 6.37 0.49 0.25 2.19 0.27 5.17 0.67 0.15 0.26 0.03 2.58 0.92 0.52 0.67 0.25 0.60 20.72 1.01 3.47 2.62 0.13 0.58 12.68 1.17 17.50 2.36 0.05 1.17 0.13 2.91 3.27 0.12 0.93 0.52 0.25 1.60 0.80 0.62 0.26 0.09 0.86 6.55 0.01 1.13 16.93 0.95

1.00 1.00 0.62 2.54 0.31 4.54 0.40 0.18 0.13 6.45 0.51 0.25 2.25 0.34 5.19 0.67 0.15 0.26 0.03 2.66 0.92 0.54 0.71 0.27 0.65 21.05 1.04 3.70 2.72 0.13 0.61 12.74 1.24 18.12 2.48 0.06 1.29 0.13 3.00 3.33 0.14 0.93 0.55 0.25 1.63 0.90 0.63 0.26 0.09 0.94 6.57 0.01 1.18 17.02 0.97

0.88 0.88 0.57 2.25 0.28 4.08 0.39 0.16 0.10 6.20 0.48 0.23 2.07 0.34 4.90 0.63 0.15 0.23 0.03 2.58 0.92 0.45 0.66 0.25 0.58 17.62 0.88 3.19 2.41 0.12 0.48 11.92 1.17 17.00 2.26 0.05 1.14 0.12 2.81 3.15 0.12 0.93 0.52 0.24 1.57 0.75 0.57 0.25 0.08 0.85 6.36 0.01 1.02 16.22 0.94

-3.7% -3.1% -1.6% 0.4% -4.9% 7.4% 0.0% 3.0% 8.7% 1.4% -4.9% 8.7% -2.7% 8.0% 3.8% 3.1% -3.2% 7.3% -10.0% -2.6% 0.0% 13.0% -2.9% -5.7% 4.3% 13.8% 10.4% -6.2% -3.7% 4.2% 16.0% 5.3% -4.1% 0.1% -3.7% 0.0% -7.1% 4.0% -2.3% 3.8% -11.1% 0.0% -1.9% 2.0% -1.8% -9.1% 1.6% 0.0% 13.9% -3.4% 2.8% -11.1% -2.6% 3.0% -1.6%

NM NM 3.4x 7.1x NM NM 9.4x 14.1x 5.9x NM 7.7x 12.7x 1.9x 3.5x 3.9x 9.4x NM NM 8.1x 10.0x 3.7x 8.4x 10.1x 25.1x 4.2x 4.7x 3.9x 11.5x 4.0x 7.1x 7.0x 8.3x 151.3x NM 5.2x 187.4x 27.8x NM 6.0x 11.6x 0.1x 0.1x 3.9x 6.3x 4.2x 4.5x 6.0x 8.4x 7.1x 15.9x 4.0x 8.0x 6.3x 7.3x 4.2x 4.6x 3.0x 4.6x 1.5x 3.4x 3.0x 5.9x 4.5x 6.9x 8.1x 34.7x 6.0x 6.8x 5.5x 8.7x 1.1x 1.5x 2.8x 4.4x 1.9x 2.5x 6.2x 7.5x 8.1x 10.4x 4.9x NM 6.9x 7.5x 11.9x NM NM NM 5.7x 6.3x 3.0x 3.8x 2.2x 8.1x 2.3x 6.2x NM NM 5.8x 11.3x 13.1x 21.1x NM NM 3.5x 6.4x 9.7x 10.9x 1.8x 8.5x
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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