richard willcock leighton holdings limited abn 57 004 482 ... · services to pt marunda...

Richard Willcock Group Company Secretary & General Counsel

Leighton Holdings Limited ABN 57 004 482 982

472 Pacific Highway St Leonards NSW 2065 Australia

PO Box 1002 Crows Nest NSW 1585, Australia

www.leighton.com.au T (02) 9925 6666 F (02) 9925 6005

17 September 2012 ASX Market Announcements Australian Securities Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Listing Rule 3.17 – Shareholder Update for the Half Year to 30 June 2012 Further to the release of the Company’s Half Yearly Report to 30 June 2012 to the Australian Securities Exchange on 7 August 2012, please find attached a copy of our Shareholder Update for the Half Year to 30 June 2012 as at 7 August 2012 containing highlights from the Half Yearly Report and various feature articles. This report is now in a printed format and will be mailed to shareholders today. Yours faithfully, R. Willcock Group Company Secretary & General Counsel

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http://www.leighton.com.au/

SHAREHOLDER UPDATE FOR THE HALF YEAR TO 30 JUNE 2012AS AT 7 AUGUST 2012

2012SHAREHOLDER

UPDATE

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FINANCIAL SUMMARY

Key performance features for the six months ended 30 June 2012

LEIGHTON HOLDINGS LIMITED SHAREHOLDER UPDATE AS AT 7 AUGUST 2012 2

Sludge Treatment FacilityHong KongConstruction: Leighton Asia


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6 months 6 months 6 months to to toProfit & Loss Items ($M) 30 June 2012 31 Dec 2011 30 June 2011*Revenue – Group 9,106.8 10,169.2 8,190.7 – Joint ventures and associates 1,961.2 2,007.7 1,476.9Total Revenue 11,068.0 12,176.9 9,667.6

EBITDA 752.0 1,111.6 (330.2)Depreciation of property, plant and equipment (513.4) (512.7) (417.2)Amortisation of intangibles (15.4) (33.0) (0.6)EBIT 223.2 565.9 (748.0)Finance costs (90.8) (90.5) (67.4)

Profit/(loss) before tax 132.4 475.4 (815.4)Income tax (expense)/benefit (26.5) (130.5) 191.4Profit/(loss) after tax 105.9 344.9 (624.0)Profit/(loss) attributable to minority interests (8.7) 4.9 1.6Profit/(loss) attributable to members 114.6 340.0 (625.6)

EPS and DPS (Cents) Earnings per ordinary share 34.0 101.0 (203.7)Dividends per ordinary share 20.0 60.0 _

New Contracts and Work in Hand (Backlog) ($M)# New contracts, extensions and variations 13,665.4 10,054.0 10,011.2Value of work in hand at end of period 47,326.7 44,559.7 46,225.8

As at As at As at Balance Sheet Items ($M) 30 June 2012 31 Dec 2011 30 June 2011Total capital and reserves 2,654.2 2,766.9 2,319.9Total assets 10,592.9 9,900.4 9,800.2Cash and cash equivalents 1,169.4 1,503.2 1,414.7Interest bearing liabilities 2,937.8 2,143.7 1,826.5Undrawn loan and guarantee facilities (excl. Devine) 1,002.0 1,163.9 1,191.7Gearing (including operating leases)^ 46% 32% 35%

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FINANCIAL SUMMARY

Profit/(loss) Before Tax6 months to 30 June 2012

$132.4 million

Profit/(loss) Attributable to Members

6 months to 30 June 2012

$114.6 million

June2008

June 2009

June 2010

June 2011

June 2012

June2008

June 2009

June 2010

June 2011

June 2012

323.

1

328.

9

357.

6

(625

.6)

114.

6

132.

4

Total Revenue#

6 months to 30 June 2012

$11.1 billion

Work In Hand#

as at 30 June 2012

$47.3 billion

41.5

37.0

30.3

46.2

47.3

June2008

June 2009

June 2010

June 2011

June 2012

June2008

June 2009

June 2010

June 2011

June 2012

9.6

9.7

9.2

8.0

11.1

446.

2

456.

9

437.

6

(815

.4)

* Derived from year to June 2011, less six months to December 2010

# Includes the Group’s share of Joint Ventures and Associates

^ For June 2012, gearing is adjusted for anticipated completion of Thiess Waste Management Services (which was announced on 9 July 2012), Gearing expressed as: net debt including operating leases to net debt including operating leases plus shareholder equity

All data shown on the charts opposite reflects six months to June for the respective years. For periods prior to June 2012 the data was derived from the year to June results, less the prior six months to December results


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LEIGHTON HOLDINGS LIMITED SHAREHOLDER UPDATE AS AT 7 AUGUST 2012

10 APRIL 2012LEIGHTON ASIA AWARDED A$420M MINING CONTRACT IN INDONESIA Leighton Asia received a Letter of Award for a seven-year contract worth approximately A$420m to provide mining services to PT Marunda Grahamineral coal mine in Central Kalimantan.

20 APRIL 2012

HLG JV AWARDED SAR2.87BN (US$765M) AIRCRAFT MAINTENANCE FACILITY PROJECT IN SAUDI ARABIA Habtoor Leighton Group (HLG), in joint venture with TAV and Al Rajhi, was awarded an SAR2.87bn (US$765m) contract in Saudi Arabia for the design and construction of a new maintenance, repair and overhaul facility for Saudi Aerospace and Engineering Industries. HLG’s share of the contract is worth SAR573m (US$153m).

THIESS WINS WHEATSTONE SITE CLEARING & PREPARATION PROJECT Thiess secured a contract with Bechtel to undertake site preparation works for the downstream portion of the Chevron-operated Wheatstone Project, a liquefied natural gas (LNG) and domestic gas project in Western Australia. The total contract value is estimated at A$450m.

8 MAY 2012BROAD SUCCESS WITH OVER $300M OF CONSTRUCTION WORK SECUREDBroad Group Holdings Pty Ltd, a fully owned subsidiary of Leighton Contractors, secured more than $300m of major construction projects throughout Western Australia, Queensland and the Northern Territory for clients including Rio Tinto, Perth Airport and the Northern Territory Government.

9 MAY 2012LEIGHTON CONTRACTORS NAMED AS PREFERRED CONTRACTOR FOR SOLOMON IRON ORE PROJECT IN WA’S PILBARA REGION Leighton Contractors received formal notification as preferred contractor for the mining and operations at the Solomon iron ore project, owned by Fortescue Metals Group Ltd.

10 MAY 2012AUSTRALIA PACIFIC LNG AWARDS LEIGHTON CONTRACTORS $800M IN GAS GATHERING AND WATER TREATMENT FACILITIES CONTRACTS IN QUEENSLAND Leighton Contractors will deliver $800m worth of gas and water infrastructure across rural and central Queensland after having been awarded two key contracts by Australia Pacific LNG.

26 APRIL 2012HLG JV AWARDED SAR633M (US$169M) MINE-RELATED INFRASTRUCTURE PROJECT IN SAUDI ARABIA Habtoor Leighton Group, in joint venture with Dragados Gulf Construction Company / Intecsa Industrial (ACS Group), was awarded an SAR633m (US$169m) contract in Saudi Arabia for the construction of mine-related infrastructure for the Ma’aden Alcoa Aluminium joint venture’s bauxite mine. HLG’s share of the contract is worth SAR316m (US$85m).

2 MAY 2012LEIGHTON CONTRACTORS AWARDED $604M CONTRACT Leighton Contractors, through its Mining Division, was awarded a three-year contract worth $604m for the provision of mining services at the Peak Downs mine in Central Queensland’s Bowen Basin.

7 MAY 2012AIRPORTLINK PROGRAMMED TO OPEN IN AUGUSTLeighton Holdings’ Thiess John Holland joint venture completed a detailed review of the integrated commissioning activities and productivities to date on the Airport Link Project to assist BrisConnections with their opening processes. This review indicates that the project should be open to traffic on or before 20 August 2012.

8 MAY 2012LEIGHTON CONFIRMS PROFIT GUIDANCE – FIRST QUARTER IMPACTED BY APL AND VDPLeighton Holdings Limited reconfirmed its guidance for underlying Net Profit after Tax for the six months to 30 June 2012 of A$100 – $150m and, for the full year to 31 December 2012, of A$400 – $450m.

THIESS INDONESIA AWARDED US$393M MINING CONTRACTThiess Indonesia was awarded a US$393m coal mining contract by PT Tamtama Perkasa, a member of the Barito Pacific Group.

NEWS AND MEDIA RELEASES

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10 MAY 2012LEIGHTON CONTRACTORS AWARDED CONTRACT FOR ICHTHYS PROJECT ONSHORE LNG TEMPORARY SITE FACILITIESLeighton Contractors was awarded a $93m Engineer, Procure and Construct contract by JKC Australia LNG Pty Ltd for the Temporary Site Facilities Works at Blaydin Point, Darwin, Northern Territory.

14 MAY 2012JOHN HOLLAND SECURES $570M REGIONAL RAIL LINK ALLIANCE CONTRACT John Holland was awarded a A$570m contract to deliver the City to Maribyrnong River section of Victoria’s Regional Rail Link project.

17 MAY 2012JOHN HOLLAND SIGNS MOU FOR MINING SERVICES CONTRACT EXTENSION AT ISAAC PLAINS COAL MINEJohn Holland signed a memorandum of understanding with Isaac Plains Coal Management to negotiate final contract terms on a one-year mining services contract extension, and begin negotiations on an additional three year agreement. The final one-year contract will be valued at approximately $200m and commence in July 2012.

22 MAY 2012

LEIGHTON POSITIONING FOR THE FUTUREAt Leighton Holdings’ Annual General Meeting in Sydney, the Chairman Mr Stephen Johns highlighted the determination of the Board to restore Leighton’s performance and to deliver acceptable and sustainable investment returns to shareholders.

25 MAY 2012LEIGHTON CONTRACTORS SUBSIDIARY METRONODE SIGNS SIGNIFICANT $182M DATA CENTRE CONTRACT WITH NSW GOVERNMENTMetronode, a subsidiary of Leighton Contractors signed a A$182m contract with the New South Wales Government under the Data Centre Reform project for the provision of two managed data centres in NSW.

12 JUNE 2012LEIGHTON APPOINTS GROUP COMPANY SECRETARY AND GENERAL COUNSEL Leighton Holdings announced the appointment of Mr Richard Willcock to the role of Group Company Secretary and General Counsel effective 12 June, 2012. Chief Executive Officer Mr Hamish Tyrwhitt said that he was very pleased that Richard had agreed to join Leighton Holdings after the Company had conducted an extensive search.

12 JUNE 2012LEIGHTON FINALISES NEW A$425M LEASE FACILITY Leighton Holdings announced that it had successfully completed syndication of a new A$425m Syndicated Lease Facility. The leasing facility is important in diversifying the Group’s funding sources and extending its duration.

15 JUNE 2012LEIGHTON WELSPUN AWARDED INR 1400 CRORE (A$ 256M) PIPELINE REPLACEMENT PROJECT – 3 BY ONGC Leighton Welspun was awarded its fifth project by India’s Oil & Natural Gas Corporation (ONGC), taking the value of the total work awarded to the Company by ONGC to more than INR 5000 Crore (A$914m) over the past 5 years.

LEIGHTON UPDATES MARKET, GORGON SCOPE OF WORK EXPANDED Leighton Holdings provided an update to the market about the status of the jetty and marine structures contract, comprising a 2.1 km jetty, a heavy lift facility, tug pens and navigation aids, which is being executed for the Chevron-operated Gorgon Project in Western Australia. The value of the contract has been increased to A$1.85bn.

19 JUNE 2012VISIONSTREAM SECURES $102M NBN NEW DEVELOPMENTS CONTRACT FOR QUEENSLAND AND VICTORIA. Visionstream, a subsidiary of Leighton Contractors, announced a significant contract win with NBN Co worth up to A$102m to design and install fibre optic cable for new development estates across Victoria and Queensland.

20 JUNE 2012HLG SECURES ACCOMMODATION AND UTILITIES PROJECT ON ZADCO’S ARTIFICIAL ISLANDS IN ABU DHABI Habtoor Leighton Group secured a major contract for the design and construction of accommodation and utilities for artificial islands being constructed in the Zakum Development Company’s Upper Zakum offshore oil field development in Abu Dhabi. The contract is worth in excess of A$300m.

28 JUNE 2012NOTICE OF COMPLETION LODGED, EXTENSION OF TIME AGREED AT AIRPORT LINK Leighton Holdings advised that the Thiess John Holland joint venture, which is constructing the Airport Link project in Brisbane, has given notice that BrisConnections, the concession holder for the project, should be in a position to open the project somewhere in the days following 27 July 2012.

NEWS AND MEDIA RELEASES


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Airport LinkQueensland, AustraliaConstruction: Thiess John Holland


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SOLID EARNINGS AND REPOSITIONING FOR GROWTH

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•$115mNPATwithinguidance•Goodprogressonlegacies•Robustaddressablemarket•Repositioningforsustainablegrowth

Leighton Holdings Limited announced a net profit after tax (NPAT) of $115 million for the six months ended 30 June 2012, in line with the guidance provided in March 2012.

Chief Executive Officer, Mr Hamish Tyrwhitt, said “This is a solid operating result during a period when we have made substantial progress on resolving legacy issues and delivered a record level of work in hand. Importantly, we are repositioning the Group and building the platform that will drive sustainable growth in the future.”

SOLID OPERATING RESULT •Totalrevenueof$11billionwasachieved

from a portfolio of 450 active projects spread across the Group’s geographies, markets and activities.

•Theresultwasunderpinnedbystrongperformances from across the Group’s diversified portfolio including Thiess, John Holland and Leighton Contractors, which mitigated the impact of the write-down on Airport Link and the Victorian Desalination Plant.

•Gearing 1 increased to 46 per cent as the Group incurred increased expenditure in delivery of its legacy projects. Gearing is expected to reduce at year end to within the Group’s target band of 35 to 45 per cent.

•Thedirectorsannouncedanunfrankeddividend of 20 cents per share which will be payable on 28 September 2012.

•Balancesheetmanagementinitiativesincluded the completion of new debt facilities worth $550 million and the extension of a further $210 million.

•Enhancementofworkingcapital,includingproject cash flows, remains a key focus in the next six months.

•InJuly,LeightonannouncedthesaleofThiessWaste Management for a total purchase price of $218 million2, subject to certain conditions. It is expected to be completed in the second half of the year and will support the reduction in gearing. ↓

Airport LinkQueensland, AustraliaConstruction: Thiess John Holland

1 Gearing has been adjusted for anticipated completion of the sale of Thiess Waste Management Services. As at 30 June 2012 gearing was 48%. It includes operating leases.

2 Inclusive of retained operating leases and working captial.


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SOLID EARNINGS AND REPOSITIONING FOR GROWTH CONTINUED

•TogetherwiththesaleofHWEIronOreoperations last year, a total of approximately $1 billion of assets have been sold as part of a disciplined capital recycling program.

GOOD PROGRESS ON LEGACY PROJECTS

•TheAirportLinkprojectwascompletedon23 July and opened to traffic on 24 July 2012 within 3½ weeks of its contractual date.

•ThecommissioningphaseoftheVictorianDesalination Plant is progressing and first reverse osmosis water was delivered on 30 June 2012. The project remains on target for completion by the end of the year.

•IntheMiddleEast,ateamfromLeightonHoldings is working with HLG on the recovery of legacy receivables and has made specific and measurable progress in the six months ended 30 June 2012.

“While the Airport Link and Victorian Desalination projects have had a considerable financial impact on the Group, they are among the most complex engineering projects ever undertaken in this country. Completion of such iconic projects reinforces our reputation for delivery of major projects,” Mr Tyrwhitt commented.

“In the Middle East, we are looking to have HLG ‘IPO ready by 2016’, as a diversified standalone construction company within a four year timeframe,” he concluded.

ROBUST ADDRESSABLE MARKET•TheGroup’sdiversifiedportfolioofworkin

hand was at a record level of $47 billion. •Contractedworkbeyondfiveyearswasan

additional $11 billion. •Themargininhandwasabovetenpercent,in

line with historic highs. “Contrary to commentary suggesting a

decline in investment activity in Australia, our addressable markets have never been stronger. Indeed, rational sequencing to some of the mega-projects in this country will assist us by reducing the costs of labour and equipment, and by ensuring the existence of a longer-term sustainable market,” Mr Tyrwhitt stated.

“Growth from economic development and urbanisation in Asia is a reality and Leighton continues to capitalise upon it. We’ve been in Asia for more than forty years and have earned a reputation as a reliable provider of quality construction and mining services in key countries.

“Importantly, we are not chasing growth for growth’s sake. There are plenty of opportunities for the Group to pursue. However, within this pipeline, we are being selective, evaluating capital requirements and exerting pricing discipline as part of our improved tendering processes,” he concluded. ↓



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Newmarket Viaduct Replacement ProgramAuckland, New ZealandConstruction: Leighton Contractors


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SOLID EARNINGS AND REPOSITIONING FOR GROWTH CONTINUED

REPOSITIONING FOR SUSTAINABLE GROWTHAs regards repositioning the Group and building the platform for the future, Mr Tyrwhitt stated, “After a decade or more of rapid growth, which has seen the Group outgrow its existing processes and procedures, we are now stabilising, reshaping and rebasing the operating model.

“Leighton Holdings is being transformed into a strategic management company, providing the risk management, governance and strategic leadership to enable the Group to compete successfully. We are repositioning the Group’s Operating Companies to make the most of their core competencies while preserving their uniqueness and diversity, essential ingredients to their success.

“Importantly we are enhancing our financial strength through a disciplined capital management program focused on driving working capital and capital expenditure improvements, diversifying funding sources, and recycling capital from non-core assets. In addition to capital management, our executive team has a focus on overhead control and cost savings through utilising our economies of scale.

“The deliverables from this strategy will include higher quality of work in hand, net margin improvement, better returns and growth funded from the existing capital base.”

GUIDANCE•Inthesecondhalfofthe2012financial

year, the Group expects to report a stronger operating performance given the successful completion of the Airport Link Project and the progress on the Victorian Desalination Plant.

•GuidanceisreconfirmedforunderlyingNPATof $400-$450 million for the year ending 31 December 2012, excluding the capital gain on the sale of Thiess Waste Management Services, announced on 9 July 2012.

Mr Tyrwhitt stated, “Looking to the immediate future, Leighton has a clear set of priorities to enable it to stabilise and rebase its model. Beyond this time, Leighton is seeking to improve returns from existing markets and export its skills to new markets, deliver the best solutions for clients and drive sustainable growth for shareholders.” ▨

Olivia Newton John Cancer and Wellness CentreVictoria, AustraliaConstruction: Leighton Contractors


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richard willcock leighton holdings limited abn 57 004 482 ... · services to pt marunda...

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