Lincoln Crowne & Company Weekly Engineering & Contractors Market Report Edition 112 For Australia dated 29th May 2015

1. Report No. 112, 29 May 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.
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WEEKLYAustralianEngineering&MiningServices
M&A Rumour and Activity
The Australian market finished the week 1.0% higher with the S&P / ASX100 ending at 4809 points, despite the weak capital expenditure data released mid-week, with the
lower Australian dollar providing a boost to share prices. The Australian dollar decreased 2.38% for the week to end at US76.48 cents, weighed down by weak business
investment outlook and the strong US dollar due to the higher US inflation data.
Private equity firm Crescent Capital Partners, via Malvern Capital Investments, has appeared as a substantial shareholder of Cardno Group Limited (ASX:CDD) with a
18.74% stake. The Australian Financial Review had previously reported that Deutsche Bank, on behalf of an unidentified buyer, had offered to acquire up to 10.1% stake in
Cardno Group Limited (ASX:CDD) at $2.60 a share. AFR, however, had also said that the offer was not a prelude to a takeover offer.
CIMIC Group Limited (ASX:CIM) has commenced the process to potentially divest its 50.6% interest in Devine Limited (ASX:DVN) on 26 May 2015. DVN had, for the
past 10 months, sought an acquirer for 100% of its business which failed to yield results. The Australian said that potential acquirers linked to the previous sale process
included private equity firm Proprium Capital Partners, Singapore’s City Developments, Japanese Daiwa House and local developer AVJennings. The Australian also said
that there were rumours of CIM mulling a merger of DVN and its own real estate subsidiary, Leighton Properties, and suggestions that an Asia suitor had been in talks to
acquire an entity comprising both DVN and Leighton Properties’ residential division.
AFR reported that Singapore’s City Developments Limited (CDL) is closing in on the acquisition of CIMIC Group Limited (ASX:CIM)’s Leighton Properties residential
division, and that CDL may be willing to pay up to $400 million. It is also understood that Leighton Properties will hold of the sale of the commercial projects until the
residential sale has been completed, with Charter Hall Group named as an interested party.
The Australian, quoting unnamed sources, said that UGL Limited (ASX:UGL) is seeking to change the terms of its contract to build the Ichthys onshore LNG project in
Darwin. If successful, the costs will no longer be fixed, but charged according to actual expenses incurred, and this development will likely make a difference for a potential
buyer. This was not reflected in UGL’s market announcement on 1 June 2015, but UGL says that substantive commercial negotiations with the client are well progressed.
UGL had previously flagged a $175 million provision and warned that more write-downs may be required for the Ichthys project, but said on 1 June 2015 that it has
increasing confidence in the adequacy of this provision following extensive project reviews. The Australian also said that TPG Capital, Jacobs Engineering and Downer
EDI Limited (ASX:DOW) were parties previously interested to acquire UGL, while another local party is thought to currently have UGL in sight as a takeover target.
Suzhou Hailu Heavy Industry Co., Ltd. (SZSE:002255) agreed to acquire Zhangjiagang Gerui Environmental Engineering Co., Ltd for approximately CNY 630
million ($130.2 million) on 26 May 2015. Zhangjiagang Gerui Environmental Engineering Co., Ltd. provides engineering and wastewater construction in China.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
CDD Crescent Capital Partners (via Malvern Capital Investments) emerged as a
substantial shareholder with a 18.74% stake
MAH Announced that its $38m mining contract with Newmont Waihi Gold, for
the Martha Mine in New Zealand, originally scheduled to complete in
Apr-16, will conclude on 24-Jun-15, due to a slip in the north wall of the
open pit. MAH will receive a termination payment under the terms of the
mining contract
CDD Appointed Mr Richard Wankmuller as CEO and MD LYL Provided guidance of $1m-$2m operating loss for the FY15
DOW Awarded a 3-year contract (with option to extend for a further 2 years)
valued at $180m over its initial term by United Energy to provide network
operations and maintenance covering 300,000 customers
LCM Appointed Richard Robinson as non-executive director
GCS Awarded a scaffolding services contract by CITIC Pacific Mining for the
Sino Iron Project for an initial 2-year term with a renewal option
PRG Announced FY15 results of $1,434m in revenue (similar with last year),
while EBITDA dropped 4.1% to $61.4m and NPAT decreased 15.7% to
$25.7m
GNG Appointed as the process engineer to undertake process plant and
infrastructure design and cost estimation for Gold Road Resources’ pre-
feasibility study for the Gruyere Project
SWL Reaffirmed FY15 NPAT guidance of $8m-$11m
LCM Reaffirmed revenue guidance of c.$140m and EBITDA guidance of 8-10%
of revenue
UGL Secured a new $190 million contract from BP Australia for the
operations and maintenance of 17 fuel terminals in Australia through a
newly incorporated 50:50 joint venture between UGL and BP. The 3-
year contract has a value of c.$190m over the initial term and includes
3-year renewal options on an ongoing basis
 Contract Wins Source: Capital IQ, LCC research
 Contract Losses

2. Report No. 112, 29 May 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
WEEKLYAustralianEngineering&MiningServices
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 134 0.54 0.50 0.55 0.50 ▼ -6.5% 17.3x NM
ASL Ausdrill Limited 131 0.43 0.42 0.43 0.38 ▼ -1.2% 3.7x 10.4x
AAX Ausenco Limited 39 0.26 0.24 0.26 0.24 ▼ -9.6% NM NM
ANG Austin Engineering Limited 62 0.75 0.73 0.77 0.73 ▼ -2.7% 17.8x NM
BLY Boart Longyear Limited 153 0.18 0.17 0.18 0.16 ▼ -5.7% 40.6x NM
BKN Bradken Limited 375 2.20 2.19 2.24 2.09 ▼ -0.5% 74.7x NM
BYL Brierty Limited 44 0.36 0.35 0.36 0.35 ▼ -2.8% 3.4x 5.4x
BOL Boom Logistics Limited 55 0.12 0.12 0.12 0.12 ▼ -4.2% 4.7x 49.9x
BSA BSA Limited 74 0.17 0.18 0.18 0.17 ▲ 2.9% 6.0x 18.6x
CDD Cardno Limited 503 2.84 3.05 3.10 2.70 ▲ 7.4% 6.3x 8.0x
CGH Calibre Group Limited 71 0.19 0.20 0.20 0.19 ▲ 5.3% 1.6x 3.7x
CIM CIMIC Group Limited 7,051 20.75 20.83 20.84 20.05 ▲ 0.4% 14.5x 70.0x
COF Coffey International Limited 40 0.16 0.16 0.17 0.15 — 0.0% 5.2x 8.3x
DCG Decmil Group Limited 177 1.14 1.06 1.18 1.05 ▼ -7.0% 1.6x 1.8x
DSB DeltaSBD Limited 4 0.09 0.09 0.09 0.09 — 0.0% 28.9x NM
DOW Downer EDI Limited 2,228 4.95 5.15 5.22 4.95 ▲ 4.0% 4.4x 7.6x
EAL E&A Limited 27 0.21 0.20 0.22 0.20 ▼ -4.8% 6.0x 7.7x
EGN Engenco Limited 39 0.10 0.13 0.13 0.10 ▲ 25.0% 5.6x NM
EHL Emeco Holdings Limited 57 0.11 0.10 0.11 0.10 ▼ -5.7% 8.8x NM
EVZ EVZ Limited 3 0.01 0.01 0.01 0.01 ▼ -14.3% 37.4x NM
FWD Fleetwood Corporation Limited 87 1.44 1.43 1.49 1.37 ▼ -1.0% 5.0x 13.8x
GCS Global Construction Services Limited 96 0.49 0.48 0.52 0.48 ▼ -2.0% 6.0x 11.3x
GNG GR Engineering Services Limited 128 0.85 0.85 0.88 0.85 ▲ 0.6% 5.2x 6.5x
HDX Hughes Drilling Pty Limited 37 0.20 0.18 0.20 0.18 ▼ -12.5% 3.4x 6.3x
IMD Imdex Limited 59 0.29 0.28 0.30 0.27 ▼ -3.5% NM NM
LCM Logicamms Limited 52 0.68 0.75 0.76 0.66 ▲ 10.8% 4.5x 6.0x
LYL Lycopodium Limited 56 1.42 1.40 1.42 1.32 ▼ -1.1% 16.8x NM
MLD MACA Limited 187 0.85 0.81 0.86 0.80 ▼ -5.3% 1.2x 2.0x
MAH MacMahon Holdings Limited 62 0.05 0.05 0.05 0.05 ▼ -2.0% 1.0x 4.3x
MYE Mastermyne Limited 18 0.23 0.20 0.24 0.20 ▼ -15.2% 2.2x 7.3x
MIN Mineral Resources Limited 1,432 7.16 7.63 7.72 7.08 ▲ 6.6% 5.0x 11.6x
MCE Matrix Composites & Engineering 51 0.54 0.55 0.60 0.54 ▲ 1.9% 1.4x 3.4x
MND Monadelphous Group Limited 1,041 10.95 11.17 11.75 10.81 ▲ 2.0% 4.5x 5.2x
MRM MMA Offshore Limited 226 0.59 0.61 0.66 0.58 ▲ 3.4% 2.6x 4.6x
NOD Nomad Building Solutions Limited 33 0.07 0.07 0.07 0.07 ▲ 4.3% NM NM
NWH NRWHoldings Limited 54 0.19 0.20 0.22 0.19 ▲ 2.6% 1.5x 12.8x
OTC OTOC Limited 21 0.08 0.08 0.08 0.08 ▲ 1.3% 3.7x 9.4x
PRG Programmed Maintenance Services 325 2.58 2.74 2.78 2.40 ▲ 6.2% 6.0x 7.4x
RCR RCR Tomlinson Limited 254 1.89 1.84 1.98 1.84 ▼ -2.9% 4.1x 6.1x
SND Saunders International Limited 50 0.64 0.64 0.65 0.63 ▼ -0.8% 3.1x 3.3x
SDM Sedgman Limited 168 0.73 0.74 0.75 0.72 ▲ 2.1% 3.2x 6.0x
SKE SKILLED Group Limited 339 1.40 1.45 1.51 1.36 ▲ 3.2% 6.1x 7.4x
SSM Service Stream Limited 126 0.30 0.33 0.35 0.29 ▲ 10.2% 8.7x 10.8x
SWL Seymour Whyte Limited 105 1.10 1.20 1.24 1.07 ▲ 8.6% 4.3x 5.3x
SXE Southern Cross Electrical Engineering 45 0.28 0.29 0.30 0.28 ▲ 3.6% 0.8x 1.6x
STS SRG Limited 41 0.65 0.65 0.66 0.63 — 0.0% 2.4x 9.7x
SWK Swick Mining Services Limited 23 0.14 0.14 0.15 0.14 — 0.0% 2.2x 9.2x
TPP Tempo Australia Limited 11 0.06 0.06 0.06 0.06 ▼ -6.5% NM NM
TTN Titan Energy Services Limited 8 0.10 0.10 0.11 0.10 ▲ 5.3% 1.6x 2.4x
TSE Transfield Services Limited 853 1.69 1.67 1.71 1.65 ▼ -1.5% 6.0x 9.1x
UGL UGL Limited 383 2.25 2.32 2.54 2.18 ▲ 3.1% NM NM
VMG VDM Group Limited 34 0.01 0.01 0.01 0.01 — 0.0% NM NM
WDS WDS Limited 17 0.12 0.12 0.13 0.11 ▼ -4.2% 2.4x NM
WOR WorleyParsons Limited 2,696 10.92 10.89 11.16 10.69 ▼ -0.3% 7.0x 7.8x
WTP 155 0.83 0.82 0.84 0.80 ▼ -1.2% 0.8x 1.8x
Source: Capital IQ, LCC research
Watpac Limited