This report from Lincoln Crowne & Company discusses various activities in the Australian engineering and mining services market as of July 2014. Key highlights include Boart Longyear's appointment of restructuring advisers due to significant debt, Golden Land Berhad's acquisition of a 60% stake in Winapermai Sdn Bhd, and ongoing rumors regarding potential acquisitions in the property sector involving Leighton Holdings. The Australian market saw positive movements with the S&P/ASX 100 increasing alongside a notable rise in the Australian dollar.

1. 18 July 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.
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WEEKLYAustralianEngineering&MiningServices
M&A Rumour and Activity
The Australian market was up over the week with the S&P / ASX100 ending at 4600 points. The Australian dollar increased over the
week closing at US93.9 cents. China's economic growth increased to 7.5% in the June quarter, above the financial market’s consensus
of 7.4%, and back in line with Beijing’s official growth forecast.
Boart Longyear Limited (ASX:BLY), a provider of drilling services, drilling equipment, and performance tooling for mining and drilling
companies globally, is believed to have appointed restructuring specialist advisers Kordamentha and law firm Ashurst LLP to review
refinancing and recapitalisation options to manage its debts of US$600 million. BLY currently trades on a Debt-to-EBITDA ratio of 5.3x
with its S&P Corporate Credit Rating now downgraded to CCC from CCC+.
Golden Land Berhad (KLSE:GLBHD), an investment holding company that undertakes construction, civil, and engineering works, and
also cultivates and processes oil palm in Malaysia, entered into a sale of shares agreement to acquire a 60% stake in Winapermai Sdn
Bhd for MYR 7 million in cash. Winapermai Sdn Bhd provides rehabilitation and upgrading of buildings, and is engaged in a joint venture
to undertake rehabilitation works and to develop two parcels of land in the city of Kota Kinabalu, Malaysia. The proposed acquisition will
allow GLBHD to participate in the joint venture project which is in line with GLBHD Group’s strategy of accelerating its development
business.
It is rumoured that ARA Asset Management (SGX:D1R), a real estate investment manager, Mirvac Group (ASX:MGR) and Lend Lease
Group (ASX:LLC) are considering the purchase of Leighton Holding Limited’s (ASX:LEI) subsidiary, Leighton Properties Pty Limited
(www.leightonproperties.com.au). Leighton Properties provides property development services to the commercial, residential and
mixed-used precinct property sectors. It is believed that Dexus Property Group (ASX:DXS) has abandoned its bidding plan.
It is also rumoured that AVJennings Limited (ASX:AVJ), Daiwa House Industry Co. Limited (TSE:1925) and Sekisui House Limited
(TSE:1928) have ruled themselves out of the race for Leighton Holdings’ 50.6% stake in Devine Limited (ASX:DVN), leaving Lend Lease
Group (ASX:LLC) and Metro Property Development Pty Limited (www.metroprop.com.au) as potential suitors. Metro Property develops
and markets residential properties for families in Australia. It is believed that Devine could sell for as much as $1.32 a share, valuing the
business at $210 million.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
BYL Announced that it expects unaudited FY2014 NPAT to be
between $9.0 - $10.0M, which is ahead of the previous market
consensus of $8.5M
LEI Standard & Poor’s Ratings Services affirmed LEI’s credit
rating as 'BBB-/A-3' with a stable outlook and removed LEI
from negative credit watch
CDD Announced that its preliminary unaudited FY2014 NPAT is
expected to be in the range of $77.5M - $78.0M, which is lower
than the previous market consensus of $85.9M
MIN Announced a 14% increase in quarterly iron ore exports to
5.9MT for the June quarter, which resulted in annual exports
of 10.4MT, an increase of 88% from FY2013 and a 4%
improvement on guidance of 9.5 - 10.0MT
DSB Announced it is undertaking organisational restructuring, which
targets cost reductions of at least $1.0M for FY2015, and the
appointment of Director and Audit and Compliance Committee
Chairman, Geoff Garside, as interim Finance Director and
Company Secretary
NOM Announced Mr Peter Hogan will retire from the Board of
Directors effective 31 July 2014, and that the 2H FY2014
EBITDA from commercial projects of subsidiary Mcgrath
Homes were below expectations, due to delays in the start of a
dwelling development in Karratha
FWD Announced the appointment of Bradley Denison as its Managing
Director, effective 1 August 2014. Bradley is currently the CFO
and Company Secretary of FWD
SDM Announced that the Thiess Sedgman Projects JV has been
awarded a $64M contract for the Design and Construction of a
7.5MT p.a. modular iron ore processing plant at FMG’s
Solomon iron ore mine in WA
Source: Capital IQ, LCC research

2. 18 July 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.
Page 2 / 2
WEEKLYAustralianEngineering&MiningServices
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 211 0.90 0.79 0.90 0.69 ▼ -12.2% NM NM
ASL 286 0.92 0.92 0.93 0.88 ▼ -0.5% 3.4x 7.1x
AAX 92 0.55 0.55 0.55 0.50 ▲ 0.9% NM NM
ANG 130 1.58 1.55 1.61 1.52 ▼ -1.9% 7.1x 10.6x
BLY 40 0.16 0.09 0.16 0.09 ▼ -45.6% 5.1x NM
BKN 746 4.25 4.36 4.50 4.08 ▲ 2.6% 7.6x 12.5x
BYL 58 0.42 0.53 0.56 0.42 ▲ 26.5% 2.4x 4.4x
BOL 66 0.13 0.14 0.15 0.13 ▲ 10.2% 3.6x 8.7x
BSA 24 0.10 0.11 0.12 0.10 ▲ 10.5% 4.7x 16.4x
CDD 1,008 6.46 6.28 6.65 6.21 ▼ -2.8% 8.8x 10.8x
CGH 136 0.41 0.41 0.42 0.40 ▼ -1.2% 3.3x 7.5x
COF 67 0.27 0.26 0.27 0.25 ▼ -3.7% 10.3x 25.6x
DCG 320 1.86 1.90 1.90 1.82 ▲ 1.9% 3.6x 4.0x
DSB 6 0.12 0.13 0.34 0.34 ▲ 13.0% 3.1x 8.7x
DOW 1,981 4.53 4.55 4.59 4.40 ▲ 0.4% 3.6x 6.3x
EAL 61 0.56 0.48 0.56 0.45 ▼ -14.3% 5.7x 6.8x
EGN 37 0.12 0.12 0.15 0.15 — 0.0% NM NM
EHL 122 0.21 0.21 0.22 0.21 — 0.0% 4.9x 177.0x
EVZ 3 0.02 0.02 NM NM — 0.0% 22.6x NM
FWD 138 2.36 2.28 2.39 2.25 ▼ -3.4% 5.5x 10.6x
GCS 80 0.46 0.47 0.47 0.46 ▲ 2.2% 3.7x 6.0x
GNG 105 0.71 0.70 0.71 0.70 ▼ -1.4% 4.5x 4.8x
HDX 37 0.18 0.18 0.18 0.16 ▼ -2.8% 4.6x 7.1x
IMD 138 0.64 0.65 0.67 0.63 ▲ 2.4% 7.7x 17.3x
LEI 7,095 20.80 20.96 21.04 20.22 ▲ 0.8% 3.9x 7.3x
LCM 62 0.93 0.89 0.95 0.89 ▼ -4.3% 5.4x 6.3x
LYL 89 2.44 2.28 2.46 2.28 ▼ -6.6% 2.3x 2.5x
MLD 398 2.02 1.97 2.04 1.90 ▼ -2.7% 2.5x 3.8x
MAH 132 0.11 0.11 0.11 0.11 ▼ -4.5% 1.3x 3.1x
MYE 33 0.43 0.44 0.44 0.39 ▲ 2.3% 2.4x 4.9x
MIN 2,071 10.50 11.10 11.10 10.40 ▲ 5.7% 4.0x 6.0x
MCE 115 1.19 1.22 1.24 1.17 ▲ 2.5% 8.5x 36.2x
MND 1,486 16.86 16.03 16.89 15.98 ▼ -4.9% 5.4x 6.2x
MRM 724 2.03 1.98 2.04 1.96 ▼ -2.7% 7.0x 11.0x
NOD 10 0.05 0.04 0.05 0.04 ▼ -17.8% 1.0x 1.2x
NWH 280 0.99 1.01 1.04 0.97 ▲ 1.5% 2.5x 3.8x
OTC 19 0.10 0.10 0.11 0.10 — 0.0% 1.5x 2.0x
PRG 297 2.59 2.51 2.59 2.40 ▼ -3.1% 5.7x 6.9x
RCR 408 2.92 2.98 3.07 2.92 ▲ 2.1% 7.5x 9.7x
RQL 42 0.12 0.14 0.14 0.12 ▲ 12.5% 5.9x NM
SND 71 0.90 0.90 0.92 0.88 — 0.0% 6.6x 7.2x
SDM Sedgman Limited 125 0.50 0.55 0.56 0.50 ▲ 10.0% 14.6x NM
SSM Service Stream Limited 77 0.21 0.20 0.21 0.20 ▼ -2.4% NM NM
SWL 174 1.92 1.99 2.00 1.89 ▲ 3.9% 7.9x 8.8x
SXE 90 0.57 0.56 0.57 0.54 ▼ -1.8% 1.8x 2.3x
STS 42 0.63 0.67 0.67 0.61 ▲ 5.6% 2.1x 6.3x
SWK 43 0.26 0.26 0.27 0.26 — 0.0% 2.4x 6.3x
TPP 13 0.08 0.08 0.08 0.08 ▼ -3.8% NM NM
TTN 101 2.17 2.00 2.19 1.95 ▼ -7.8% 4.8x 6.0x
TSE 661 1.29 1.29 1.33 1.25 ▲ 0.4% 7.1x 14.1x
UGL 1,166 7.06 7.10 7.10 6.87 ▲ 0.6% 13.8x 22.2x
VMG 28 0.01 0.01 0.01 0.01 ▼ -10.0% NM NM
WDS 119 0.93 0.83 0.93 0.83 ▼ -10.8% 2.2x 4.0x
WOR 4,497 18.47 18.22 18.68 18.09 ▼ -1.4% 10.3x 11.6x
WTP 158 0.85 0.85 0.87 0.82 ▼ -0.6% 1.5x 7.2x
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
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