Lincoln Crowne & Company Weekly market update on the Australian Engineering & Mining Services Contracting Sector. Edition 134 covers valuations of companies in sector and recent deals announced and advanced

1. Australian Engineering & Mining Services
WEEKLY Ed. 134 | 30 October 2015 WWW.LCC.ASIA
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 / 2
M&A Rumour and Activity
The Australian market finished the week 2.23% lower with the S&P / ASX100 ending at 4358 points in a week of interest rate speculation, as
unusually weak inflation numbers increased the odds that the Reserve Bank of Australia will cut rates by the end of the year while the US Federal
Reserve has signaled that it may raise rates in December 2015. The Australian dollar decreased 1.11% for the week to end at US71.34 cents, as the
US Dollar strengthened following increased speculation that the US Federal Reserve will raise interest rates by the end of the year.
Crescent Capital Partners (Crescent) has lodged a second supplementary Bidder’s Statement for its $3.45 1-for-every-2 cash offer for the shares of
Cardno Limited (ASX:CDD). Crescent said that it will pay a broker handling fee to brokers who solicit acceptances of the offer from their clients.
Crescent had on 29 October 2015 gained a 31.32% stake in CDD, paving the way for Crescent to replace 2 Directors of CDD with 3 of its nominees
following the agreement it has entered into with the Board of CDD.
Calibre Group (ASX:CGH) announces that it intends to delist from the ASX and undertake an off-market share buyback. The off-market share
buyback will involve the acquisition of approximately 16.89% of CGH’s current issued capital at $0.12 per share (capped at $7.2 million).
Calibre Group (ASX:CGH) has agreed to a conditional acquisition of Diona Pty Ltd for $45 million, with additional payments of up to $45 million
contingent on performance during FY16 and FY17. Diona is a provider of electrical, gas, water and wastewater services to the utility sector in
Australia.
The Australian Financial Review reported that Sigdo Koppers is believed to have withdrawn from the race for Arrium’s Moly-Cop business. Sources
said that Sigdo Koppers, who was looking to team up with a private equity partner to submit a binding bid, was unable to find the right partner.
Asia Infrastructure Limited agreed to acquire the business and assets of DrillCorp Pty Ltd from Boart Longyear Limited (ASX:BLY) on 28 October
2015 for an undisclosed value. DrillCorp Pty Ltd is a mineral exploration drilling company in Australia
LandOcean Energy Services Co., Ltd. agreed to acquire 90% stake in Sichuan Chuanyou Engineering Survey and Design for approximately RMB260
million ($56.1 million) in cash and stock on 27 October 2015. Sichuan Chuanyou Engineering Survey and Design Co., Ltd. , based in China, offers oil
and gas ground construction, technical consultancy, and management services.
WorleyParsons Limited (ASX:WOR) is said to have appointed advisers to defend against a potential takeover bid, as Chairman John Grill
acknowledged that the group’s tumbling share price has made it vulnerable.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
CIM Leighton Contractors , with its partners, has been selected by Main
Roads Western Australia as the preferred consortium to deliver the
5km Roe 8 highway project in Perth
TSE Signed a deed of variation to continue to provide Welfare and
Garrison Support Services in Nauru for a further 4 months
CIM Announced 9M15 update. EBIT was up 13.7% to $650m and NPAT was
up 25.2% to $393m. Confirmed guidance of $450-520m for FY15
UGL Announced that it has secured c.$550m in new contract wins and
extensions during 1Q16. UGL also said that the Ichthys CCP project
continues to progress well
CIM Appointed Mr Adolfo Valderas (current Group COO) as Deputy CEO UGL Secured a new 2-year contract, in a 50:50 joint venture with Cape plc,
for services on the Woodside operated Karratha Gas Plant Life
Extension Program
IMD Appointed Mr James Hegyi as non-executive director WOR Notified of a Class Action commenced by an individual, Mr Larry
Crowley, claiming that WOR failed to comply with its continuous
disclosure obligations
TSE Reaffirmed its FY16 guidance for flat EBITDA year on year
 Contract Wins Source: Capital IQ, Company Announcements, LCC research
 Contract Losses

2. Australian Engineering & Mining Services
WEEKLY Ed. 134 | 30 October 2015 WWW.LCC.ASIA
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 / 2
Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker Company Name (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL AJ Lucas Group Limited 79 0.30 0.30 0.30 0.27 — 0.0% 18.8x NM
ASL Ausdrill Limited 108 0.38 0.35 0.38 0.34 ▼ -8.0% 3.8x 10.5x
AAX Ausenco Limited 68 0.35 0.37 0.40 0.35 ▲ 5.7% NM NM
ANG Austin Engineering Limited 53 0.33 0.34 0.34 0.33 ▲ 4.6% 41.9x NM
BLY Boart Longyear Limited 83 0.11 0.10 0.12 0.10 ▼ -4.8% 63.7x NM
BKN Bradken Limited 166 1.06 0.97 1.08 0.94 ▼ -8.5% 6.7x 25.1x
BYL Brierty Limited 30 0.25 0.24 0.25 0.24 ▼ -6.0% 4.9x 14.2x
BOL Boom Logistics Limited 52 0.11 0.11 0.12 0.11 ▲ 4.8% 7.4x NM
BSA BSA Limited 78 0.18 0.19 0.19 0.18 ▲ 2.8% 3.3x 5.7x
CDD Cardno Limited 518 3.20 3.06 3.20 2.97 ▼ -4.4% 8.5x 12.5x
CGH Calibre Group Limited 36 0.14 0.11 0.13 0.09 ▼ -22.2% 1.2x 3.6x
CIM CIMIC Group Limited 7,051 20.75 20.83 20.84 20.05 ▲ 0.4% 14.8x 36.1x
COF Coffey International Limited 105 0.41 0.41 0.41 0.40 ▲ 1.2% 8.1x 13.2x
DCG Decmil Group Limited 157 1.07 0.94 1.07 0.94 ▼ -12.1% 1.6x 1.7x
DSB DeltaSBD Limited 5 0.11 0.11 0.11 0.11 — 0.0% 2.3x 4.4x
DOW Downer EDI Limited 1,536 3.78 3.55 3.79 3.49 ▼ -6.1% 3.2x 5.6x
EAL E&A Limited 22 0.19 0.16 0.19 0.16 ▼ -15.8% NM NM
EGN Engenco Limited 28 0.09 0.09 NM NM — 0.0% 6.3x NM
EHL Emeco Holdings Limited 31 0.06 0.06 0.07 0.05 ▼ -3.5% 13.9x NM
EVZ EVZ Limited 2 0.01 0.01 NM NM — 0.0% NM NM
FWD Fleetwood Corporation Limited 94 1.54 1.55 1.59 1.48 ▲ 0.3% 4.0x 16.0x
GCS Global Construction Services Limited 98 0.49 0.49 0.49 0.48 — 0.0% 4.8x 8.6x
GNG GR Engineering Services Limited 132 0.83 0.87 0.89 0.83 ▲ 4.2% 3.4x 4.4x
HDX Hughes Drilling Pty Limited 27 0.13 0.13 NM NM — 0.0% 3.1x 5.5x
IMD Imdex Limited 56 0.24 0.23 0.24 0.23 ▼ -4.3% 27.0x NM
LCM Logicamms Limited 50 0.73 0.72 0.74 0.72 ▼ -1.4% 2.9x 3.2x
LYL Lycopodium Limited 49 1.33 1.23 1.33 1.23 ▼ -7.5% 226.4x NM
MLD MACA Limited 201 0.90 0.87 0.92 0.85 ▼ -3.9% 1.1x 1.8x
MAH MacMahon Holdings Limited 123 0.10 0.10 0.10 0.09 ▲ 4.2% 0.9x 12.3x
MYE Mastermyne Limited 22 0.22 0.24 0.24 0.22 ▲ 9.1% 4.1x NM
MIN Mineral Resources Limited 804 4.55 4.28 4.63 4.19 ▼ -5.9% 2.5x 4.7x
MCE Matrix Composites & Engineering 70 0.64 0.75 0.84 0.64 ▲ 17.3% 2.7x 5.6x
MND Monadelphous Group Limited 647 7.33 6.92 7.38 6.78 ▼ -5.6% 2.7x 3.2x
MRM MMA Offshore Limited 157 0.48 0.42 0.48 0.41 ▼ -12.5% 2.2x 5.5x
NOD Nomad Building Solutions Limited 34 0.08 0.08 0.08 0.07 — 0.0% NM NM
NWH NRWHoldings Limited 38 0.14 0.14 0.15 0.14 ▼ -3.6% NM NM
OTC OTOC Limited 49 0.18 0.19 0.19 0.17 ▲ 2.8% 12.8x NM
PRG Programmed Maintenance Services 725 2.67 2.91 2.92 2.62 ▲ 9.0% 13.3x 16.4x
RCR RCR Tomlinson Limited 318 2.40 2.29 2.47 2.17 ▼ -4.6% 6.3x 10.6x
SND Saunders International Limited 47 0.61 0.60 0.62 0.60 ▼ -1.6% 4.2x 4.6x
SDM Sedgman Limited 182 0.81 0.80 0.83 0.75 ▼ -1.2% 3.1x 4.7x
SSM Service Stream Limited 143 0.39 0.38 0.40 0.37 ▼ -1.3% 5.6x 6.7x
SWL Seymour Whyte Limited 114 1.28 1.30 1.30 1.26 ▲ 1.6% 4.4x 5.4x
SXE Southern Cross Electrical Engineering 59 0.36 0.37 0.39 0.35 ▲ 4.2% 1.3x 3.6x
STS SRG Limited 38 0.58 0.60 0.62 0.58 ▲ 3.4% 1.0x 2.3x
SWK Swick Mining Services Limited 18 0.12 0.11 0.12 0.11 ▼ -4.3% 2.4x 28.1x
TPP Tempo Australia Limited 18 0.08 0.09 0.09 0.08 ▲ 10.7% NM NM
TTN Titan Energy Services Limited 4 0.05 0.06 0.06 0.05 ▲ 1.9% NM NM
TSE Transfield Services Limited 515 1.08 1.01 1.11 0.99 ▼ -6.9% 4.0x 6.0x
UGL UGL Limited 375 2.44 2.28 2.45 2.21 ▼ -6.6% NM NM
VMG VDM Group Limited 29 0.01 0.01 NM NM — 0.0% NM NM
WOR WorleyParsons Limited 1,617 7.15 6.52 7.24 6.45 ▼ -8.8% 5.7x 7.0x
WTP 180 0.91 0.96 0.97 0.91 ▲ 5.5% 0.4x 1.1x
Source: Capital IQ, LCC research
Watpac Limited