ABN AMRO Australian Engineering and Construction Conference 20 September 2006
ABN-AMRO Engineering and Construction Conference 20 September 2006
Structured for Growth HOCHTIEF is Majority Shareholder in Leighton Holdings (53%) Thiess Pty Ltd John Holland Group Pty Ltd Leighton Contractors Pty Limited Leighton Asia Limited (Northern) Leighton Asia Limited (Southern) Leighton Properties Pty Limited MD Operating Revenue Work in Hand No. of Employees Established Subsidiaries 100% owned 99% owned 100% owned 100% owned 100% owned 100% owned Roger Trundle A$4,318m A$7,350m 13,373 1933 PT Thiess Indonesia Thiess Services HVE Silcar Swan Water David Stewart A$2,101m A$2,854m 2,524 1949 Lucon Infratek Networks Gridcomm: Quantum Peter McMorrow A$2,258m A$3,928m 5,136 1949 HWE Leighton Services: Visionstream LSE Technology Nextgen Networks Mayfield Metlabs Broad Joe Dujmovic A$477m A$456m 1,156 1975 David Savage A$494m A$1,335m 1,937 1975 Vyril Vella A$368m 29 1972 Management and key statistics as at 30 June 2006.
Strategic Framework Thiess John Holland Leighton Contractors Leighton Asia (Northern) Leighton Asia (Southern) Leighton Properties Mining & Resources Engineering & Infrastructure Building & Property Services Markets/ Products Geography Brands Delivery Systems Australia Asia/Pacific Hard Dollar Design & Construction Project Management Alliancing Negotiated Development Privatised Projects/PPP
Financial Highlights Jun 06 $m Jun 05 $m % change Total revenue 10,034 7,607 32% New contracts, extensions & variations 10,221 9,756 5% Value of work in hand 16,038 15,471 4% Profit before tax 371 299 24% Profit after tax 276 215 28% Dividends per ord share 66 50 32%
Return on Equity % 30 25 20 15 10 5 0 96/7 97/8 98/9 99/0 00/1 01/2 02/3 03/4 04/5 05/6 At 30 June
Work in Hand A$m 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 96/7 97/8 98/9 99/0 00/1 01/2 02/3 03/4 04/5 05/6 At 31 December At 30 June
Financial Strength A$Billions 18 16 14 12 10 8 6 4 2 0 93/4 94/5 95/6 96/7 97/8 98/9 99/0 00/1 01/2 02/3 03/4 04/5 Jun- 06 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 A$Millions Work in Hand (LHS) Bank Guarantees, Insurance Bonds & Letters of Credit (RHS)
Australian Construction Market $bn 60 50 40 30 20 10 0 94/5 95/6 96/7 97/8 98/9 99/0 00/1 01/2 02/3 03/4 04/5 05/6e 06/7f 07/8f 08/9f Engineering Construction Non-Residential Building e= estimate f=forecast Source: BIS Shrapnel, private sector work done 03/04 dollars
North-South Bypass Tunnel, Qld, Leighton Contractors
Australian Engineering Construction Market $bn 35 30 25 20 15 10 5 0 94/5 95/6 96/7 97/8 98/9 99/0 00/1 01/2 02/3 03/4 04/5 05/6e 06/7f 07/8f 08/9f 09/10f Transport Water, sewerage & drainage Electricity & pipelines Telecommunications Mining & heavy industry Other e=estimate f= forecast Source: BIS Shrapnel, private sector work done, 03/04 dollars
Non-Residential Building and Property Market $bn 25 20 15 10 5 0 94/5 95/6 96/7 97/8 98/9 99/0 00/1 01/2 02/3 03/4 04/5 05/6e 06/7f 07/8f 08/9f Hotels Retail Offices Factories & OBP Education & Health Other Non-residential e=estimate f=forecast Source: BIS Shrapnel, work done 03/04 dollars
LPPL Development Pipeline A$m Total Project Value 3,000 2,836 2,500 2,322 2,370 2,000 1,909 1,500 1,000 500 1,096 306 651 740 979 959 0 96/7 97/8 98/9 99/00 00/1 01/2 02/3 03/4 04/5 05/6 No of Projects 8 7 8 9 10 10 15 16 16 19 KENS Project Star City Casino
Contract Mining and Capex Forecasts $bn 14 12 10 8 6 4 2 0 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3 03/4 04/5e 05/6f 06/7f 07/8f 08/9f Contract mining (operations) Contract maintenance Mining investment e=estimate f=forecast Source: BIS Shrapnel, 02/03 dollars
Koolyanobbing Iron Ore Mine, WA, Leighton Contractors (HWE)
Leighton Contractors Mining and Related Infrastructure Projects
Thiess Mining and Related Infrastructure Australian Projects
Australian Maintenance Markets $bn 30 25 20 15 10 5 0 04/5e 05/6f 06/7f 07/8f 08/9f 09/10f Contract market Total market e=estimate f=forecast Source: BIS Shrapnel, June 06
Kowloon Southern Link, Hong Kong, Leighton Asia (Northern) & John Holland
Wynn Resorts Macau Project, Leighton Asia (Northern)
City of Dreams, Macau, Leighton Asia (Northern) & John Holland
Al Shaqab Equestrian Academy, Qatar, Leighton Asia (Southern)
Al Shaqab Equestrian Academy, Qatar, Leighton Asia (Southern)
City of Arabia Development, UAE, Leighton Asia (Southern)
Nokia Mobile Phone Manufacturing Facility, India, Leighton Asia (Southern)
Summary - Outlook remains very positive - Work in hand to be maintained in a range of approximately $14 - $16 billion - Momentum driven by extended Australia construction and resources related upswing - Strong competitive position and balance sheet strength support outlook - On track for solid profit increase
ABN AMRO Australian Engineering and Construction Conference 20 September 2006