16 December 2013 ASX Market Announcements Australian Securities Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Listing Rule 3.17 – Shareholder Update for the 9 months to 30 September 2013 Further to the release of the Company’s unaudited results for the 9 months ended 30 September 2013 to the Australian Securities Exchange on 13 November 2013, please find attached a copy of our Shareholder Update for the 9 months to 30 September 2013 as at 13 November 2013 containing highlights during the period. This report is now in a printed format and will be mailed to shareholders today. Yours faithfully LEIGHTON HOLDINGS LIMITED VANESSA REES Group Company Secretary For personal use only
Transcript
16 December 2013 ASX Market Announcements Australian Securities Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Listing Rule 3.17 – Shareholder Update for the 9 months to 30 September 2013 Further to the release of the Company’s unaudited results for the 9 months ended 30 September 2013 to the Australian Securities Exchange on 13 November 2013, please find attached a copy of our Shareholder Update for the 9 months to 30 September 2013 as at 13 November 2013 containing highlights during the period. This report is now in a printed format and will be mailed to shareholders today. Yours faithfully LEIGHTON HOLDINGS LIMITED VANESSA REES Group Company Secretary
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For the 9 Months to 30 September 2013 as at 13 November 2013
Shareholder Update
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Leighton Holdings Limited Shareholder Update as at 13 November 2013
South Island Line (East) rail project Hong Kong Construction: Leighton Asia
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Financial HighlightsLeighton Holdings Limited recently announced its financial results for the nine months to 30 September 2013.
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Key performance features* for the nine months ended 30 September 2013
* All chart data reflects 9 months to September for the respective years. For periods prior to September 2012, the data was derived from the previous Preliminary Final Reports, Half Year Reports and Quarterly Reports.
1 Non-underlying items after tax comprised: $115m gain on sale of the non-core telecommunications assets, net of $18m impairment of the Cross City Tunnel investment, $29m impairment of the development property inventory and $13m in restructuring costs. (Nine months to 30 September 2012 comprised $81m gain on sale of the non-core waste management assets.)
2 For the balance sheet items, comparative data as at 31 December 2012 has been shown in order to be consistent with disclosures at the 30 June 2013 Half Year. December 2012 balance sheet information has been restated to include the impact upon adoption of AASB 11 Joint Venture Arrangements. The September 2012 balance sheet information is available in the release dated 30 October 2012.
3 Includes the Group’s share of joint ventures and associates.4 UNPAT is net profit after tax adjusted for gains or losses on sale, impairments and other non-underlying items.
Total Revenue 3
9 months to 30 Sept 2013
$17.9 billion
Work In Hand 3
as at 30 Sept 2013
$42.4 billion
Sept2009
Sept 2010
Sept 2011
Sept 2012
Sept 2013
Sept2009
Sept 2010
Sept 2011
Sept 2012
Sept 2013
Profit/(loss) Before tax9 months to 30 Sept 2013
$619.1 million
Profit after taxattributable to members (NPAT)
9 months to 30 Sept 2013
$443.7 million
15.8 16
.9
14.4
13.7
17.9
43.9
45.3
42.5
38.2 42
.4
Sept2009
Sept2010
Sept 2011
Sept 2012
Sept 2013
Sept2009
Sept2010
Sept 2011
Sept 2012
Sept 2013
358.
6
619.
1
612.
2
523.
7
( 394
.0)
316.
8 443.
7
459.
8
371.0
( 325
.1)
9 months to 9 months to 30 Sept 2013 30 Sept 2012 % Profit or Loss items ($M) Unaudited Unaudited MovementRevenue – Group 16,431 13,889 18 – Joint Ventures and Associates 1,423 2,971 (52)Total Revenue 17,854 16,860 6 Profit/(Loss) before tax 619 358 73Income tax (210) (50) 320Profit/(loss) attributable to minority interests 35 9 289NPAT (Profit after tax attributable to members) 444 317 40Of which – UNPAT (Underlying net profit after tax) 4 389 236 65 – Non-underlying items after tax 1 55 81 (32)
Net margin (UNPAT to total revenue) 2.2% 1.4% 57 As at As at 30 Sept 2013 31 Dec 2012 2
Balance Sheet items ($M) Unaudited UnauditedTotal assets 12,141 11,717 Total liabilities 9,127 8,800 Net assets 3,014 2,917 As at As at 30 Sept 2013 31 Dec 2012 2
Balance Sheet items ($M) Unaudited UnauditedWork in Hand 3 42,425 43,486
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Leighton Holdings Limited Shareholder Update as at 13 November 2013
29 July 2013THIESS TAKES OWNERSHIP OF SILCAR
Thiess has taken 100% ownership of telecommunications, energy and infrastructure services company, Silcar Pty Ltd. Silcar has been a 50/50 joint venture between Thiess and the global engineering technology company Siemens. Silcar designs, constructs, operates, manages and maintains critical communication, energy, mining and transport infrastructure assets. The acquisition of Siemens’ shares by Thiess was agreed so that both companies could better focus their respective strategic portfolios.
14 August 2013RESULT SHOWS CLEAR TURNAROUND, SUPPORTED BY A DIVERSIFIED PORTFOLIO STRATEGY
Leighton Holdings Limited announced an improved result for the six months to 30 June 2013 demonstrating the resilience of its operations. The result showed the positive progress of the Group’s ‘stabilise, rebase and grow’ strategy, combined with the benefits of diversification by brand, market sector and geography, in challenging macroeconomic conditions.
VANESSA REES APPOINTED GROUP COMPANY SECRETARY
Leighton Holdings has promoted Ms Vanessa Rees to the role of Group Company Secretary. Ms Rees was appointed Company Secretary of Leighton Holdings in April 2009.
29 July 2013LEIGHTON PROPERTIES AND SEVEN GROUP HOLDINGS ANNOUNCES NEW SIGNING AT KINGS SQUARE, PERTH
Western Australia’s largest health insurer, HBF, will be the latest corporate to make Perth’s Kings Square precinct its home. HBF will own, occupy and sub-let the KS4 tower, which has approximately 13,000sqm of commercial office space over 10 levels. Joining other Kings Square tenants, Shell and John Holland, HBF will relocate from their existing premises in Murray Street to the $97.8 millon KS4 tower in Kings Square, which is part of the $5.2 billion Perth City Link project initiated by the State Government.
30 July 2013LEIGHTON TO DELIVER A LUXURY INTEGRATED HOTEL RESORT IN MACAU
Leighton Asia, India and Offshore Group (LAIO), announced it secured a A$2.8 billion contract to design and build a luxury, integrated, hotel resort in Macau, the world’s biggest gaming hub, for Wynn Resorts. The contract is the largest won by LAIO to date.
1 August 2013THIESS TO BUILD $650 MILLION MORETON BAY RAIL LINK
Thiess has been awarded the $650 million contract to deliver the long awaited Moreton Bay Rail Link which will service a major suburban growth corridor in South East Queensland. The 12.6 kilometre rail link will connect the greater Brisbane rail network, which currently ends at Petrie, to the rapidly growing Moreton Bay region.
6 August 2013LEIGHTON CONTRACTORS AGREES GATEWAY WA COST AND SCOPE, PROCEEDS TO DELIVERY
Leighton Contractors, as part of the Gateway WA Alliance, reached agreement with Main Roads WA on the price, scope and construction methodology for the $1 billion Gateway WA Perth Airport and Freight Access Project. The project will improve the road network around the Perth Airport and include new interchanges and an upgrade of nearby highways.
News and media releases
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For the third quarter of 2013
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20 August 2013LEIGHTON PROPERTIES TO DEVELOP NORTH SYDNEY’S FIRST NEW COMMERCIAL PROPERTY IN 6 YEARS
Leighton Properties announced the development of North Sydney’s first new commercial building in six years at 177 Pacific Highway, which is set to become one of Sydney’s most significant projects. The $400 million high rise development will redefine the North Sydney CBD skyline and feature 40,000sqm of A-Grade commercial space across 30 levels. Completion is scheduled in the first half of 2016.
30 August 2013LEIGHTON WELSPUN AWARDED THE MAIN CONTRACT FOR SUPER LUXURY RESIDENTIAL PROJECT IN INDIA
Leighton Welspun Contractors, part of the Leighton Asia, India and Offshore Group, was awarded the main contract to build the super luxury residential development ‘The Camellias’ for DLF in Gurgaon, India, valued at A$246 million. The project includes the building of nine tower blocks of between 19 and 38 floors which will house 431 apartments, including 19 penthouses.
2 September 2013JOHN HOLLAND SECURES ROYAL HOBART HOSPITAL REDEVELOPMENT PROJECT
John Holland has been awarded the contract to deliver the $365 million Royal Hobart Hospital redevelopment project by the Department of Health and Human Services. John Holland will deliver the project under a Managing Contractor relationship model in joint venture with Fairbrother.
6 September 2013THIESS AND QGC SIGN LANDMARK QCLNG CONTRACT
Thiess was awarded a landmark $1.8 billion contract by coal seam gas producer QGC for construction of gas compression facilities and associated works for the QCLNG project in the Surat Basin. The new contract significantly expands Thiess’ role in the project which now includes construction of all 18 Field Compressor Stations and four Central Processing Plants, with works to be completed by November 2014.
16 September 2013THIESS SEDGMAN JV WINS $186M CHPP CONTRACT
The Thiess Sedgman Joint Venture was awarded a $186 million contract to design and construct a Coal Handling and Preparation Plant (CHPP) for Boggabri Coal Pty Ltd. The CHPP will support the expansion of Boggabri Coal’s mining operation located in the Gunnedah Basin in New South Wales. Boggabri Coal is expanding the annual production to 6.9 million tonnes.
16 September 2013JOHN HOLLAND AWARDED $257 MILLION SUB-CONTRACT AT ROY HILL
John Holland was chosen to construct nearly 350km of heavy haulage railway track for the Roy Hill Iron Ore Project in Western Australia.The Roy Hill Iron Ore Project includes a new mine at the Roy Hill deposit north of Newman, a mine process plant, a heavy haul railway system and new port facilities at Port Hedland.
17 September 2013AIRPORTLINKM7 WINS GLOBAL AWARD
The Thiess John Holland Joint Venture, builder of Brisbane’s innovative AirportlinkM7 road tunnel project, was awarded the 2013 International Roads Federation Global Road Achievement Award for Construction Methodology deployed on the iconic $4.8 billion project. Winning such a prestigious global award confirms the standing of Thiess and John Holland as world leaders in infrastructure delivery.
20 September 2013VISIONSTREAM AWARDED OPTUS MOBILE NETWORK DEPLOYMENT CONTRACT
Visionstream, a wholly owned subsidiary of Leighton Holdings, announced that it had successfully secured a contract with Optus for civil and services work in the deployment of its Long Term Evolution mobile network. The contract, which has an approximate potential value of A$240 million, sees Visionstream as the preferred supplier for the civil and services upgrade to over 1200 existing Optus mobile sites and for the construction and commissioning of new sites across Australia.
30 September 2013$370 MILLION MELBOURNE AIRPORT WIN FOR LEIGHTON CONTRACTORS
Leighton Contractors secured a $370 million contract for the construction of an integrated transport facility and a new airline terminal as part of a capacity upgrade for the Melbourne Airport. The work will include construction of a new seven storey carpark, new baggage handling facilities, elevated access roads and ramps, new check-in facilities and retail areas, and associated infrastructure.
For the third quarter of 2013
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Leighton Holdings Limited Shareholder Update as at 13 November 2013 6
On 13 November 2013, Leighton Holdings Limited announced its unaudited results for the nine months to 30 September 2013:
• Revenue of $17.9 billion, up 6% on 3Q12• Net Profit after Tax (NPAT) of $444 million,
up 40% on 3Q12• Underlying NPAT 1 (UNPAT) of $389 million,
up 65% on 3Q12• Work in hand of $42.4 billion, down 2% on
3Q12, up 6% from 1H13• $8.7 billion of new contracts, extensions and
variations awarded• Gearing 2 of 39%, up from 36% at 1H13 • Reiterates full year UNPAT of $520 to
$600 million, subject to market conditions and/or unfavourable developments
Chief Executive Officer, Mr Hamish Tyrwhitt, said that while it was pleasing to report an increase in UNPAT, the elevated gearing level reflected the trade receivables position.
“We continue to forecast year-end gearing will be within the band of 25–35 per cent however we are currently above where we expected it to be at this stage of the year. The final position will depend on the success of our working capital improvement initiatives.
“Commercial negotiations with the client in regards to the Gorgon Jetty project are on-going and recoveries in Iraq have been delayed, in part, due to the damage created by the recent media campaign conducted by the Fairfax Group.
“The rebase element of ‘Stabilise, Rebase and Grow’ remains our key focus, with the reshaping of our operations the priority before we progress to growth. As part of this, we must deliver operating profits that are backed by sustainable cash flows.
“Progress on the other elements of the rebase strategy during the quarter included:
• Acquisition of the first tranche of mining equipment by FleetCo and the launch of the initial round of re-financings
• Commencement of management restructuring initiatives to align our business with our addressable markets
• Advancement of plans for Group global business services and procurement savings
“Turning to our pipeline of work, we were awarded $8.7 billion of new contracts, extensions and variations during the third quarter, reflecting the diversification benefits of the Group’s portfolio.
“Since the end of the quarter, we have continued to win contracts in Australia and overseas, with Government and global private-sector clients. These have included a seven-year road asset management contract with the NSW Roads and Maritime Services; a three-year contract mining award in Queensland; and an airport expansion project in Dubai.
“Looking further ahead, domestic civil infrastructure opportunities are improving with a greater range of opportunities coming to market quicker than expected, as Australia seeks to redress its public infrastructure deficit.
“Domestically, coal production volumes remain strong, although mining clients continue to look for potential cost savings in exploration, capital works and maintenance. Some headwinds remain and we continue to seek solutions with our clients.
“Longer-term, we expect the increasing urbanisation and economic growth occurring throughout Asia to drive demand and underpin our addressable markets in Australia, Asia and elsewhere,” Mr Tyrwhitt concluded.•
1 Underlying NPAT is NPAT adjusted for non-underlying items including gains or losses on sale, impairments and restructuring costs.
2 Gearing is expressed as the ratio of net debt and operating leases to net debt, operating leases and shareholder equity.
Third Quarter ResultsLeighton reports Q3 2013 results and reiterates guidance
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South Island Line (East) rail project Hong Kong Construction: Leighton Asia
