PRELIMINARY FINAL REPORT AUGUST 2003
PRESENTATION OUTLINE Results highlights Financial statements Group strategy Australian market outlook Asian market outlook
RESULTS OVERVIEW
FINANCIAL HIGHLIGHTS Jun 03 Jun 02 % $m $m change Total revenue 5,620 5,275 7 New contracts, extensions & variations 6,802 5,552 23 Value of work in hand 9,662 8,371 15 Operating profit before tax 209.8 227.3 (8) Operating profit after tax 140.0 169.2 (17) Dividends per ord share 44 42 5
$m 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 WORK IN HAND at 31 December at 30 June 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3
FINANCIAL STATEMENTS
$m 6000 TOTAL REVENUE 5000 4000 3000 2000 1000 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3
$m 200 PROFIT AFTER TAX 150 100 50 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3
FINANCIAL POSITION Jun 03 Jun 02 Cash ($m) 408 588 Total assets ($m) 2,146 2,318 Gross debt ($m) 21 64 Net cash ($m) 387 524 Members equity ($m) 856 789 Return on equity (%) 17.0 21.4 Return on assets (%) 6.5 7.3
OTHER KEY STATISTICS Jun 03 Jun 02 Ratios profit before tax/ 4.4% 4.6% sales revenue EPS 51.7 63.1 NTA $3.10 $2.83 Depreciation $302m $308m
GEOGRAPHIC SPLIT Jun 03 Jun 02 $m $m Total revenue Australia/Pacific 4,577 3,964 Asia 996 1,225 Americas 46 86 Profit before tax Australia/Pacific 145 141 Asia 81 77 Americas (17) 9
GROUP STRATEGY
GROUP STRATEGY Geography Brands Markets/ Products Delivery Systems
$m 6000 5000 4000 LEIGHTON REVENUE VS AUST CONST MARKET Thiess Indonesian Leighton starts coal projects Eastern Distributor Tollroad Thiess John Holland coal projects acquisition Leighton telco projects PRL WSO KENS $bn 30 25 3000 2000 20 1000 Leighton Revenue 94 95 96 97 98 99 00 01 02 03 15 Aust Const Market
STRUCTURED FOR GROWTH HOCHTIEF (50.3%) Leighton Holdings Other (49.7%) 100% owned 100% owned 70% owned 100% owned 100% owned 100% owned Thiess Roger Trundle Leighton Contractors Bob Merkenhof John Holland* Bill Wild PT Thiess Indonesia Thiess Services HVE Leighton Services -Infocus - Visionstream Lucon Infratek Networks DMM Gridcomm Silcar - LSE Technology - Quantum BOS Australia Broad * Includes Transfield Leighton Asia (Northern) Will Hamilton Leighton Asia (Southern) David Savage Leighton Properties Vyril Vella
OUTLOOK IN AUSTRALIA
BUILDING AND ENGINEERING WORK $bn 34 30 26 22 18 14 10 6 2 Source: BIS Shrapnel, ABS Data Non-Residential Building Engineering Construction Forecasts 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
MAJOR PROJECTS - TIMING F3 to Orbital Link M4 East Gateway Bridge Pakenham Bypass Albury Bypass Mitcham- Frankston Freeway Lane Cove Tunnel Perth- Mandurah Rail WestLink M7 Regional Fast Rail Parramatta Rail Spencer St 03/04 04/05 05/06 06/07 07/08 08/09 09/10
Parramatta Rail Link, NSW Thiess
WestLink M7, NSW Leighton Contractors
AUSTRALIAN CONTRACT MINING INDUSTRY $m 4000 3500 3000 2500 Forecasts Annual Turnover 2000 1500 1000 500 Source: IBIS World, June 2002 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
LONG TERM MINING CONTRACTS In work in hand Future work Yarrie Moorvale Mt Keith Sth Walker Westside Liddell Southland Collinsville Burton Senakin Satui Mt Owen Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Jun 08
South Walker Creek Coal Mine, Qld Thiess
Comalco Alumina Refinery Project, Qld John Holland
$m 16000 10000 7000 5000 AUSTRALIAN PROPERTY MARKETS Commercial and Industrial Offices Factories Forecasts 2000 1500 1000 500 Total Value of Commencements 200 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Source: BIS Shrapnel, ABS Data 05
PROPERTY NEW SOUTH WALES Category Delivery Total End LPPL Type Value $m Share KENS Comm Pre-sold 630 100% 100 Pacific Hwy Comm JV 140 50% 101 George St, Parramatta Comm JV 80 50% 233 Castlereagh St Comm JV 90 50% 56 Delhi Rd Comm Strata 30 50%
KENS Commercial Office Tower Development, Sydney Leighton Properties
PROPERTY VICTORIA Category Delivery Total End LPPL Type Value $m Share Mulgrave 245 Wellington Rd C/Ind Mixed 60 100% Thomastown 15 Edgars Rd Ind Land Subdiv 7 100% 700 Collins St Comm JV 135 50% Lyndhurst BG Mixed* 35 100% Mornington BG Pre-sold 45 100% *Potential JV
PROPERTY QUEENSLAND Category Delivery Total End LPPL Type Value $m Share Noosa Resort Resort JV 180 50% MacArthur - Retail Retail JV 100 50% MacArthur - Comm Comm JV 125 50%
Amcor Wine Bottling Plant, South Australia Leighton Contractors
$bn 25 OPERATIONS & MAINTENANCE MARKET 1998/99 Prices Forecasts 20 15 10 01 02 03 04 05 06 Source: BIS Shrapnel Maintenance in Australia 2001 2016
$m 600 500 400 300 200 100 GROUP O&M REVENUE Telecommunications Building & property 104 221 Engineering & infrastructure Mining & resources Environmental 503 529 353 98/9 99/00 00/1 01/2 02/3
Waste Management, NSW Thiess
Telstra Network Rehabilitation, NSW & Vic Leighton Contractors
Defence Maintenance Management Contracts, NSW John Holland
$m 3500 WORK IN HAND BY AUSTRALIAN MARKET at 30 June 02 at 30 June 03 3000 2500 2000 1500 1000 500 Engineering & infrastructure Mining & resources Building & property Operations & maintenance
OUTLOOK IN ASIA
OVERVIEW OF REGION Resources remains focus in Indonesia Solid civil workload in Hong Kong Pursuing other opportunities in Malaysia Philippines has reasonable activity levels Improving investment climate in Vietnam Hopeful of further rail work in Taiwan Select opportunities in Thailand
Senakin Coal Mine, Indonesia Thiess
Central Reclamation, Hong Kong Leighton Asia
Duta Plaza Retail and Commercial Development, Malaysia Leighton Asia
North Luzon Expressway, Philippines Leighton Asia
$m 1200 WORK IN HAND BY ASIAN COUNTRY at 30 June 02 at 30 June 03 1000 800 600 400 200 Hong Kong Indonesia Philippines Malaysia Other
SUMMARY
SUMMARY Operating performance remains strong Work to be around $10 billion Diverse range of major projects in both Australia and Asia Upswing in Australian construction, property and resources markets Expect similar underlying profit growth in 2003/04
PRELIMINARY FINAL REPORT AUGUST 2003