Preliminary Final Report August 2009
Presentation outline Results highlights Operational update Financial statements Strategy and outlook 2 Preliminary Final Report I 14 August 2009 I
Results Highlights 3 Preliminary Final Report I 14 August 2009 I
Financial highlights for the year June 09 ($m) June 08 ($m) % change Total revenue 18,315 14,542 26% New contracts, extensions and variations Value of work in hand Operating profit after tax 25,093 37,005 610 22,901 30,303 608 10% 22% 0% Profit after tax 440 608 (28%) Dividends per ordinary share 115 145 (21%) 4 Preliminary Final Report I 14 August 2009 I
Work maintained at near record levels VALUE OF WORK IN HAND A$bn 40 At 31 December 35 30 At 30 June 25 20 15 10 5 0 99/0 00/1 01/2 02/3 03/4 04/5 05/6 06/7 07/8 08/9 5 Preliminary Final Report I 14 August 2009 I
Operational Update 6 Preliminary Final Report I 14 August 2009 I
CONFIDENTIAL Airport Link, Qld, Thiess John Holland 7 Preliminary Final Report I 14 August 2009 I
SMR Iron Ore Mine, SA, HWE Mining 8 Preliminary Final Report I 14 August 2009 I
Contract mining and BHP/RIO CONTRACT MINING REVENUES $M 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2007 2008 2009 Australian Iron Ore Australian Coal Australian other International Source Note: Internal Analysis 9 Preliminary Final Report I 14 August 2009 I
400 George Street, Qld, Leighton Properties (Thiess) 10 Preliminary Final Report I 14 August 2009 I
Royal North Shore Hospital NSW, Thiess 11 Preliminary Final Report I 14 August 2009 I
Tabang Coal Processing Project, Indonesia, Thiess 12 Preliminary Final Report I 14 August 2009 I
City of Dreams Opening, Macau, Leighton Asia/John Holland 13 Preliminary Final Report I 14 August 2009 I
Al Shaqab Equestrian Academy, Qatar, Habtoor Leighton Group 14 Preliminary Final Report I 14 August 2009 I
Abu Dhabi now our largest market in the Middle East REVENUE SPLIT A$m 800 700 600 500 400 300 200 100 0 2008 2009 Dubai Abu Dhabi Qatar Source Note: Internal analysis 15 Preliminary Final Report I 14 August 2009 I
We have responded to the GFC Reviewed and monitoring all private sector clients Changing payment terms Reducing bonding Reducing overheads Targeting opportunities 16 Preliminary Final Report I 14 August 2009 I
Financial Statements 17 Preliminary Final Report I 14 August 2009 I
Revenue has grown strongly during the period REVENUE BY GROUP AND JOINT VENTURES & ASSOCIATES A$bn 20 18 16 14 12 10 8 6 4 2 0 2008 2009 Group revenue up 29% JV & Associates up 19% Total revenue up 26% Final dividend of 55cps for full year dividend of 115cps Group JV's & Assoc Source : 2009 Preliminary Final Report 18 Preliminary Final Report I 14 August 2009 I
Profit impacted by impairments JUNE 2008 A$m 1,200 1,000 800 600 400 200 JUNE 2009 A$m 1,200 1,000 800 600 400 200 0 EBIT Loss on assets Finance Costs Tax NPAT 0 EBIT Loss on assets Finance Costs Tax NPAT Source : 2009 Preliminary Final Report 19 Preliminary Final Report I 14 August 2009 I
Balance Sheet Total assets up to $7.7 billion TOTAL ASSETS Cash & equiv 2009 Trade & Receive's Inventories 2008 Investments (equity) Investments (other) PP&E A$bn 0 1 2 3 4 5 6 7 8 9 Other Source : 2009 Preliminary Final Report 20 Preliminary Final Report I 14 August 2009 I
Balance Sheet Equity of $2.3 billion TOTAL LIABILITIES Trade & payables 2009 Curent tax Liab's Provisions 2008 Interest bearing Liab's Limited Recourse Loans Leighton Notes A$bn 0 1 2 3 4 5 6 Source : 2009 Preliminary Final Report 21 Preliminary Final Report I 14 August 2009 I
Operating cash flow of $1.3 billion CASH FLOW RECONCILIATION (JULY 2008 JUNE 2009) A$m 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Opening cash Operating cash Source : 2009 Preliminary Final Report Finance & tax Proceeds & payments PP&E Investment Share issue Net borrowings Dividends Closing cash 22 Preliminary Final Report I 14 August 2009 I
Some pressure on working capital but improving Gateway and North South Bypass Tunnel ahead of schedule Seen some slow payments in the Middle East but improving Large capex spend has come to an end 23 Preliminary Final Report I 14 August 2009 I
Depreciation a function of increased volumes DEPRECIATION EXPENSES A$m 700 600 500 400 300 Operating lease payments of $432m Total depreciation of $642m Total WDV of plant is $1.8bn Depreciation to increase due to increase in mining work 200 100 0 2008 2009 Plant & Equip Components Other Source : 2009 Preliminary Final Report 24 Preliminary Final Report I 14 August 2009 I
Impairments impacted Australian profit REVENUE JV & ASSOC S PROFIT BEFORE INTEREST AND TAX A$bn A$m 20 1,000 18 900 16 800 14 700 12 600 10 500 8 400 6 300 4 200 2 100 0 0 2008 2009 2008 2009 Australia Asia Australia Asia Source : 2009 Preliminary Final Report 25 Preliminary Final Report I 14 August 2009 I
Debt facilities and their maturity Amount Tenor Maturity TERM DEBT US Private Placement US$280m 5, 7, 10 years 2013, 2015, 2018 Australian MTN A$280m* 5 years 2014 Habtoor Non recourse US$434m 5 years 2012 Indonesian bond US$110m 5 years 2011 WORKING CAPITAL Syndicated facility A$520m 3 years Oct 2011 Bilateral facility A$150m 2 years Aug 2010 Bilateral facility A$100m 15 months Aug 2010 BONDING/ GUARANTEES Aggregate facilities A$3,266m 1 3 years 2010 2012 Source : 2009 Preliminary Final Report *Up scaled since initial issue 26 Preliminary Final Report I 14 August 2009 I
Asset impairments and our strategy Committed to strategy but more tightly limited Historically done well from infrastructure investments and construction Previous infrastructure projects were profitable; M7, Eastern Distributor, Sydney Casino, M5 Have incurred impairments for ConnectEast, BrisConnections and RiverCity, and Devine and Macmahon 27 Preliminary Final Report I 14 August 2009 I
Strategy and Outlook 28 Preliminary Final Report I 14 August 2009 I
Long term business strategy Our long term business strategy remains unchanged MISSION To provide diversified contracting and project development services which create wealth and add value for stakeholders PEOPLE & CULTURE Can do and competitive United by core values Driven by results Clear accountability STRATEGIC GOAL 2010 2012 Come through the recession in a strong position, able to capitalise on the opportunities and resume our growth MARKET DIVERSITY MARKETS/ ACTIVITIES GEOGRAPHY BRANDS DELIVERY SYSTEMS OUTCOME Large, profitable, respected contractor and developer Australian based with a global reputation in Asia, India and MENA FINANCIAL STRENGTH Management discipline Financial robustness Strong balance sheet and conservative gearing 29 Preliminary Final Report I 14 August 2009 I
Infrastructure spend to stay high TOTAL INFRASTRUCTURE VALUE OF WORK DONE BY PRIVATE SECTOR $06/07bn 50 45 40 35 30 25 20 15 F Social Utilities and other Transport 10 5 0 98 99 00 01 02 03 04 05 06 07 08 09e 10f 11f 12f 13f Work Done for Public Sector Source: BIS Shrapnel Mar 09 & Apr 09 forecast. Total value of work done by the private sector. 100% of social infrastructure work assumed by private sector, with 80% for public sector. Market share estimates based on LHL analysis. Year end June. 30 Preliminary Final Report I 14 August 2009 I
Deer Park Bypass, Vic, Leighton Contractors 31 Preliminary Final Report I 14 August 2009 I
Northern Access Road, Qld, Leighton Contractors 32 Preliminary Final Report I 14 August 2009 I
Sydney Desalination Project, NSW, John Holland 33 Preliminary Final Report I 14 August 2009 I
Commercial property declining before recovery TOTAL RESIDENTIAL AND COMMERCIAL & INDUSTRIAL BUILDING COMMENCEMENTS* $06/07bn 40 35 30 25 20 15 10 5 F OFFICE VACANCIES CBD S ALL GRADE 14% 12% 10% 8% 6% 4% 2% F Typical vacancy rate 0 91 96 99 02 05 08 11f Commercial & Industrial Residential Detached Houses Residential Other Dwellings* 0% 99 01 03 05 07 09e 11f 13f 15f 17f Sydney Melbourne Brisbane Canberra *Residential excludes alterations/additions. Other dwellings include townhouses, duplex and apartments Source: BIS Shrapnel, Value of Commencements, Apr 2009 update. Year end June. Office Vacancies, Jones Lang La Salle July 2009. 34 Preliminary Final Report I 14 August 2009 I
111 Eagle Street, Qld, Leighton Contractors 35 Preliminary Final Report I 14 August 2009 I
Commodities volumes set to grow COMMODITY PRODUCTION VOLUMES MT 550 500 450 400 350 300 250 200 150 100 50 0 02 04 06 08 10f 12f Australian Iron ore Australian Coking coal Australian Thermal coal Indonesian Thermal coal Source: Wood Mackenzie (Coal) 2009. Macquarie Research (Iron Ore) April 2009. 36 Preliminary Final Report I 14 August 2009 I F SELECTED COMMODITY PRICES $US/various 350 300 250 200 150 100 50 0 01 03 05 07 09e 11f Gold ($US/oz /10) Thermal Coal ($US/t) Coking Coal (US$/t) Iron Ore Source: ABARE, BIS Shrapnel, Macquarie Research F
Mt Owen Coal Mine, NSW, Thiess 37 Preliminary Final Report I 14 August 2009 I
Positive outlook for oil and gas AUSTRALIA LNG EXPORT VOLUME MT 30 25 20 15 10 5 F MINING AND HEAVY INDUSTRY VALUE OF WORK DONE IN AUSTRALIA $bn 06/07 25 F 20 15 10 5 0 01 03 05 07 09e 11f 13f Source: BIS Shrapnel Mar 2009 38 Preliminary Final Report I 14 August 2009 I 0 94 96 98 00 02 04 06 08 10f 12f Oil & Gas Bauxite/ aluminium Coal Other Heavy Ind
Asia recovering, Hong Kong to boom REAL GDP GROWTH HK INFRASTRUCTURE PUBLIC EXPENDITURE % HK$bn 20 F 60 F 15 50 10 40 5 30 0 20 5 87 90 93 96 99 02 05 08 11f 10 10 0 World Hong Kong China 02 03 04 05 06 07 08 09 10f 11f 12f India ASEAN 5 Source: IMF, World Economic Outlook Update, Jan 09. Year end December. Hong Kong Government budget. Year end March 39 Preliminary Final Report I 14 August 2009 I
KPC Sangatta Coal Mine, Indonesia, Thiess 40 Preliminary Final Report I 14 August 2009 I
$60/barrel oil supports the Middle East REAL OIL PRICES AND FISCAL BALANCE BREAK EVEN LEVELS (REAL AUGUST 2009 PRICES) US$/barrel 160 140 120 100 80 60 40 20 0 Current price of ~US$70 significantly above historical average prices 83 86 89 92 95 98 01 04 07 Oil price bands for fiscal break even Bahrain ($75) Oman ($77) Saudi Arabia ($49) Kuwait ($33) Qatar ($24) UAE ($23) COMMITTED AND PLANNED CONSTRUCTION PROJECTS UAE Qatar Kuwait Saudi Arabia Bahrain Oman US$bn 0 500 1,000 1,500 Apr 08 Apr 09 Source: MEED Projects, EFG Hermes, Mena economics, March 2009. Bloomberg, IMF and HSBC * real May 2009 prices 41 Preliminary Final Report I 14 August 2009 I
Subsea Flexible Pipe Lay, India, Leighton International 42 Preliminary Final Report I 14 August 2009 I
Ukhaakhudag Coal Mine, Mongolia, Leighton Asia 43 Preliminary Final Report I 14 August 2009 I
Summary Committed to diversity strategy Serves as a platform for growth Strong competitive position and robust balance sheet Expect rebound in core markets 2010 to be a flat year on 2009 Returning to growth in 2011 and beyond 44 Preliminary Final Report I 14 August 2009 I
Preliminary Final Report August 2009