Lincoln Crowne & Company Weekly Market Update on the Australian Engineering & Mining Services Sectors for the week ended 2nd May 2014. Report covers Merger & Acquisition activity as well as corporate updates.

1. 2 May 2014 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.
WEEKLYAustralianEngineering&MiningServices
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M&A Rumour and Activity
The Australian market was down over the week with the S&P / ASX100 ending at 4543 points. The Australian dollar fell
slightly, closing at US92.5 cents. The US Federal Reserve announced that its bond buying program would further be cut by
$US10 billion to $US45 billion in May, as the US economic growth picks up after rapidly slowing down during the winter
months due to weather conditions. The Reserve Bank of Australia is scheduled to meet this upcoming Tuesday to announce
its decision on whether it will change the official interest rate.
Transfield Services Limited (ASX:TSE) has approached the High Yield Bond market in the United States in hopes of raising
up to $300 million dollars to help restructure the company’s existing debt obligations. The company has $319 million debt
due in the FY2015, including a $250 million syndicated loan in December, and another $439 million due the year after.
Transfield’s current operating cash flow is under pressure and a successful debt restructuring would ease the tension with
Transfield’s investors, who have been worried the company may be forced into an equity raising.
Chapmans Limited (ASX:CHP), an investment company, has announced it has agreed to invest $1.0 million into Tempo
Australia Limited (ASX:TPP), a provider of engineering, procurement, and construction services for the mining, energy, and
petrochemical sectors in Australia, via a placement of 19,047,619 shares at 5.25 cents per share. The issue price
represents approximately a 16% discount to the 90 day volume weighted average price.
Frontken Corporation Berhad (KLSE:FRONTKN), a Malaysian provider of surface and mechanical engineering services, has
entered into a sale and purchase agreement to acquire 45% stake in TTES Team & Specialist Sdn. Bhd (www.ttes.com.my),
a service provider for turbo machinery and rotating equipment, for $3.63 million.
It is rumored that a private equity vehicle headed by former Xstrata Plc Chief Executive Officer Mick Davis, X2, is in talks
with BHP Billiton Limited (ASX:BHP) to buy a series of non-core assets.
EMS Energy Limited (Catalist:5DE) through its subsidiary EMS Offshore Pte Ltd, a producer of engineering equipment and
a service provider to the oil & gas and offshore marine industries, has entered into conditional sale and purchase agreement
to acquire International Offshore Equipments Pte Ltd (www.internationaloffshore.biz), a manufacturer of marine and offshore
deck machineries, for $0.69 million.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
AAX Was given a speeding ticket by ASX after the stock dropped from
57.5¢ to 50.5¢. In response, Ausenco reaffirmed guidance and
announced there was nothing new to announce
LEI Announced its 100 per cent owned subsidiary, Leighton Asia, India
and Offshore, has secured a $201M contract from Manila North
Tollways Corporation to construct Segment 10 of the North Luzon
Expressway in the Philippines
BYL Has been awarded a contract from Rio Tinto for mining and civil
work at Western Turner Syncline Stage 2 Project, valued at
approximately $300M
TSE Announced the resignation of Kate Munnings as Chief Risk and
Legal Officer & Joint Company Secretary, as she has decided to
take a senior operational role at the company
LEI In a joint venture with Hong Kong construction company, Chun
Wo, has been awarded a contract worth $1.16B to construct the
Passenger Clearance Building for the Hong Kong-Zhuhai-Macao
Bridge Hong Kong Boundary Crossing Facilities
SWL Has appointed Mr Robert Carr to its Board as an Executive Director
Source: Capital IQ, Thomson Reuters, LCC research

2. 2 May 2014 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.
WEEKLYAustralianEngineering&MiningServices
Page 2 / 2
Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 234 0.85 0.88 0.95 0.79 ▲ 3.6% NM NM
ASL 297 0.94 0.95 0.98 0.91 ▲ 1.1% 3.4x 7.2x
AAX 98 0.63 0.59 0.63 0.51 ▼ -7.1% NM NM
ANG 169 2.15 2.01 2.16 2.01 ▼ -6.5% 8.4x 12.6x
BLY 126 0.29 0.28 0.30 0.27 ▼ -5.2% 5.8x NM
BKN 705 4.45 4.12 4.51 4.11 ▼ -7.4% 7.3x 12.0x
BYL 44 0.37 0.40 0.44 0.36 ▲ 8.1% 1.9x 3.6x
BOL 71 0.17 0.15 0.17 0.15 ▼ -9.1% 3.7x 8.9x
BSA 29 0.14 0.13 0.14 0.13 ▼ -7.4% 5.1x 17.8x
CDD 1,141 7.11 7.15 7.23 6.84 ▲ 0.6% 9.7x 12.0x
CGH 142 0.46 0.43 0.46 0.40 ▼ -7.6% 3.4x 7.7x
COF 59 0.23 0.23 0.24 0.23 ▲ 2.2% 9.7x 24.2x
DCG 329 2.07 1.95 2.07 1.94 ▼ -5.8% 3.7x 4.2x
DSB 8 0.16 0.17 0.34 0.34 ▲ 6.3% 3.4x 9.5x
DOW 2,164 5.22 4.97 5.24 4.87 ▼ -4.8% 3.9x 6.8x
EAL 78 0.64 0.64 0.65 0.64 ▼ -0.8% 6.7x 8.0x
EGN 50 0.17 0.16 0.15 0.15 ▼ -5.9% 162.9x NM
EHL 157 0.26 0.27 0.27 0.25 ▲ 5.9% 5.3x 190.2x
EVZ 4 0.03 0.02 0.03 0.02 ▼ -20.0% 24.7x NM
FWD 137 2.32 2.26 2.33 2.26 ▼ -2.6% 5.4x 10.5x
FGE 79 0.92 0.92 0.92 0.92 — 0.0% 0.1x 0.1x
GCS 89 0.56 0.53 0.60 0.50 ▼ -6.3% 3.9x 6.3x
GNG 104 0.70 0.69 0.71 0.66 ▼ -1.4% 4.4x 4.7x
HDX 48 0.23 0.23 NM NM — 0.0% 5.3x 8.1x
IMD 153 0.71 0.72 0.74 0.70 ▲ 1.4% 8.5x 19.1x
LEI 6,475 19.60 19.16 19.61 18.73 ▼ -2.2% 3.6x 7.2x
LCM 57 0.87 0.82 0.88 0.81 ▼ -5.7% 4.9x 5.7x
LYL 127 3.10 3.25 3.26 3.10 ▲ 4.8% 3.9x 4.3x
MLD 438 2.10 2.16 2.17 2.10 ▲ 2.9% 2.8x 4.3x
MAH 138 0.11 0.11 0.11 0.10 — 0.0% 1.4x 3.2x
MYE 41 0.58 0.54 0.57 0.54 ▼ -6.9% 2.9x 5.9x
MIN 2,134 11.79 11.44 11.99 11.19 ▼ -3.0% 4.1x 6.2x
MCE 123 1.32 1.30 1.32 1.22 ▼ -1.1% 9.0x 38.6x
MND 1,627 17.73 17.55 17.83 17.22 ▼ -1.0% 6.0x 6.9x
MRM 807 2.27 2.20 2.29 2.08 ▼ -3.1% 7.6x 12.0x
NOD 14 0.05 0.05 0.05 0.05 ▲ 2.0% 1.5x 1.8x
NWH 312 1.19 1.12 1.20 1.08 ▼ -5.9% 2.7x 4.2x
OTC 22 0.16 0.12 0.16 0.11 ▼ -28.1% 1.7x 2.3x
PRG 346 3.01 2.93 3.06 2.79 ▼ -2.7% 6.2x 7.5x
RCR 392 2.73 2.86 2.86 2.66 ▲ 4.8% 7.3x 9.4x
RQL 48 0.17 0.17 0.17 0.17 — 0.0% 6.5x NM
SND 64 0.82 0.82 0.82 0.78 — 0.0% 5.8x 6.4x
SDM Sedgman Limited 103 0.49 0.46 0.49 0.45 ▼ -6.2% 7.9x NM
SSM Service Stream Limited 77 0.22 0.20 0.22 0.20 ▼ -7.0% NM NM
SWL 150 1.70 1.71 1.75 1.70 ▲ 0.6% 6.3x 7.0x
SXE 97 0.55 0.60 0.60 0.54 ▲ 9.1% 2.1x 2.6x
STS 35 0.57 0.55 0.57 0.55 ▼ -3.5% 1.7x 5.1x
SWK 43 0.26 0.26 0.27 0.26 ▲ 2.0% 2.4x 6.3x
TPP 14 0.08 0.08 0.08 0.08 — 0.0% NM NM
TTN 99 2.29 2.01 2.35 2.01 ▼ -12.2% 4.7x 5.8x
TSE 538 0.88 1.05 1.10 0.88 ▲ 19.3% 6.4x 12.7x
UGL 1,146 7.08 6.98 7.08 6.61 ▼ -1.4% 13.6x 22.0x
VMG 22 0.01 0.01 0.01 0.01 ▼ -12.5% NM NM
WDS 154 1.08 1.07 1.10 1.06 ▼ -0.9% 3.3x 5.9x
WOR 4,018 16.80 16.28 16.95 16.18 ▼ -3.1% 9.4x 10.6x
WTP 150 0.90 0.81 0.91 0.79 ▼ -10.6% 1.4x 6.6x
Source: Capital IQ, LCC research
GR Engineering Services Limited
E&A Limited
Structural Systems Limited
Resource Equipment Limited
Saunders International Limited
Southern Cross Electrical Engineering
Matrix Composites & Engineering
Hughes Drilling Pty Limited
Logicamms Limited
Imdex Limited
Leighton Holdings Limited
Nomad Building Solutions Limited
Transfield Services Limited
Swick Mining Services Limited
Mermaid Marine Australia Limited
Monadelphous Group Limited
Mineral Resources Limited
OTOC Limited
RCR Tomlinson Limited
NRWHoldings Limited
Programmed Maintenance Services
Seymour Whyte Limited
Tempo Australia Limited
Titan Energy Services Limited
Engenco Limited
Emeco Holdings Limited
Forge Group Limited
Global Construction Services Limited
Coffey International Limited
Cardno Limited
BSA Limited
Brierty Limited
Decmil Group Limited
Austin Engineering Limited
Company Name
AJ Lucas Group Limited
Boart Longyear Limited
Calibre Group Limited
DeltaSBD Limited
Boom Logistics Limited
EVZ Limited
Fleetwood Corporation Limited
Downer EDI Limited
Ausenco Limited
Ausdrill Limited
Watpac Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
WorleyParsons Limited
VDM Group Limited
WDS Limited
Bradken Limited
UGL Limited