Investor Presentation Full Year Results FY2011 Disclaimer and - PowerPoint PPT Presentation

Investor Presentation Full Year Results FY2011

Disclaimer and Important Notice Information, including forecast financial information in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities of other instruments in NRW Holdings Limited or any other company. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecast and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies may occur which are outside the control of NRW Holdings Limited. Before making or varying any decision in relation to holding, purchasing or selling shares in NRW Holdings Limited, investors should consider the appropriateness of that investment in light of their individual investment objectives and financial situation and should seek their own independent professional advice. All currency is denominated in Australian dollars. 2

Year in review: Operational highlights Operational highlights Purchase of Comiskey Earthmoving assets in Queensland for $82m  Award of $780m mining services contract with Middlemount Coal, representing NRW’s breakthrough into the coal  market (Middlemount Coal is a joint venture between Gloucester Coal Ltd and Macarthur Coal Ltd) Signed 5 year preferred contractor Framework Agreement with Rio Tinto Iron Ore for future earthworks  involvement on 333 Expansion programme Multiple contract wins with Fortescue Metals Group – Main Line Rail Duplication, Herb Elliott Port, Solomon Hub  Successful completion of BHP Billiton Iron Ore’s RGP5 Rail (south) duplication and CITIC Pacific’s Cape Preston  breakwater and bulk earthworks (combined value:$412 million) Action Drill and Blast awarded multiple new contracts with external clients  Significant revenue growth for the Mining division (60%) and Drill and Blast division (297%)  3

Year in review: Financial highlights Financial highlights Revenue of $745 million: 22% increase on FY10  EBIT of $64.6 million: 12% increase on FY10  Net Profit After Tax $41.2 million: 17% increase on FY10  Successfully raised $76 million via an equity placement and share purchase plan  Conservative Net debt / Equity position of 19.8%  Cash balance $70.6 million  Record order book of $2.0 billion (excludes current ECI projects and post FY12 Rio Tinto  Iron Ore preferred contractor framework agreement projects) Achieved Return on Average Capital Employed of 29.6%  Final dividend of 5 cents fully franked, totalling 9 cents for full financial year  4

People, Safety and Training Performance As of June 30 2011 NRW employed a workforce in excess of  2,500, comprising direct employees, sub contractors and apprentices. NRW have world class safety systems and procedures in place  and have recently implemented a new HSET reporting system which has improved communications between site and the corporate office. Improved safety performance with Lost Time Injury Frequency  Rate (LTIFR) currently at 1.38 (23% decrease from FY2010:1.8). A corresponding decrease in Total Recordable Case Frequency  achieved, currently at 9.81, down from 12.62 in FY2010. NRW has enhanced its training portfolio and is geared to  delivering more training to all employees in 2012. Although our injury statistics have leveled out, the increase in  employee HSE training will continue to drive down this trend. All NRW site based employees will complete Certificate II in  Surface Extraction Operations NRW’s Indigenous workforce participation is currently 12% of  total workforce, an increase of 2% from FY10. 5

Civil Division: Current Projects *Western Turner Brockman  Client: Rio Tinto Iron Ore  Model: Joint Venture with Eastern Guruma Pty Ltd  Value : Award Value: $160 million  Scope : Bulk earthworks for the overland conveyor at Western Turner Syncline; and civil works at the Brockman 4 Mine including haul roads, ROM and ROM wall construction and access roads. Herb Elliott Port facility  Client: Fortescue Metals Group  Value: Approximately $162 million including additional scope  Scope: Earthworks and concrete works contract as part of Stages 1, 2 and 3 of the T155 Expansion. *Cape Lambert Stockyard and Car Dumper  Client: Rio Tinto Iron Ore  Model: Joint venture with NYFL  Value: Award Value: $101 million  Scope: Bulk earthworks for a stockyard, car dumper and stacker reclaimer at Rio Tinto’s Port Lambert * Projects awarded as part of the Rio Tinto Iron Ore Framework Agreement, see slide 9 6

Civil Division: Current Projects Karara Earthworks and Concrete  Client: Karara Mining (Gindalbie Metals)  Value: Approximately $190 million  Scope : Bulk earthworks and concrete construction work for the iron ore crushing and processing facility. Works include the construction of major concrete foundations and structures for the plant and associated infrastructure. Main Line Rail Duplication  Client: Fortescue Metals Group  Value: Approximately $70 million  Scope: Earthworks to duplicate 50 kilometres of rail by realigning the existing access road, includes substantial drill and blast. Port Hedland Inner Harbour Project  Client: BHP Billiton Iron Ore  Value : Award value: $158 million  Scope : Earthworks for 13 kilometres of rail duplication, 23 kilometres of access road construction and 700,000m³ cut and borrow to fill. 7

Civil Division: Current Projects Great Eastern Highway Upgrade  Client: Main Roads WA  Model : Joint venture with Leighton and GHD, in alliance with Main Roads WA  Value : $174 million  Scope : Earthworks for the upgrade of the Great Eastern Highway in metropolitan Perth between Kooyong Road and Tonkin Highway Morawa - Mullewa Rail ECI  Client: Westnet Rail  Model : ECI - Joint Venture with Laing O’Rourke and Brookfield Multiplex  Value : Early works contract awarded for $14.5 million  Scope : Commenced early works for the project, whilst awaiting determination and award of full scope. Includes design specifications for significant track rectification, replacement and upgrade as well as associated earthworks. 8

Civil Division: Preferred Contractor Framework Agreement  Client: Rio Tinto Iron Ore  Tenure : Five years  Scope : The projects covered in the agreement are a part of Rio Tinto Iron Ore’s 333 Expansion. This agreement places NRW in a preferred contractor position for these works. Beyond the delivery of the earthworks packages, the framework also encompasses NRW in an ECI role.  Current : Works currently being undertaken as part of this agreement: Port Stream - The NRW / NYFL Joint Venture awarded Cape Lambert Port Car Dumper and Bulk Earthworks package in March 2011, valued at $101 million and employing an anticipated 196 people. Western Pilbara Stream - The NRW / Eastern Guruma Joint Venture awarded Western Turner Brockman Earthworks package in April 2011, valued at $160 million and with an anticipated workforce of over 550.  Future : Future potential work packages covered under the agreement for the Port Stream consist of similar bulk earthworks as part of the planned future upgrade of Rio Tinto’s Cape Lambert Port to 333Mt/a, currently awaiting funding approval. Under the Western Pilbara Stream there are three further earthworks packages for three future mine developments planned by Rio Tinto, also awaiting funding approval as part of the 333 Programme. 9

Mining Services: Current Projects Middlemount Coal  Client: Middlemount Coal*  Value : Approximately $780 million (over five years)  Scope : The mining contract is for all mining activities including clearing and grubbing, long and short term detailed mine scheduling and planning, as well as drilling and blasting including design and load & haul.  On Site: NRW commenced early works at Middlemount Coal Project in January 2011. *Middlemount Coal is a joint venture between Gloucester Coal Ltd and Macarthur Coal Ltd Solomon Pre strip  Client: Fortescue Metals Group  Value: Approximately $80 million  Scope: The contract consists of load and haul, and drill and blast, for the initial pre-strip. It is also expected that pioneering civil earthworks including access roads will be undertaken as part of the scope. The contract has an anticipated 18 month duration  On Site: NRW commenced early works at Solomon in June 2011. 10

Mining Services: Current Projects Western Turner Syncline  Client : Rio Tinto Iron Ore  Model : Joint Venture with Eastern Guruma Pty Ltd  Value : Award Value: $200 million (over 4 years)  Scope : Involves the engineering design and development of site infrastructure, mining of the iron ore deposit and ore haulage to Tom Price via a purpose-built 15.5 kilometre long road  On Site: NRW has been on site at Western Turner Syncline since January 2010. Christmas Creek / Cloudbreak  Client : Fortescue Metals Group  Value : Approximately $120 million per annum  Scope : NRW undertaking the drill and blast; load and haul for the continuous mining operations at pits within Christmas Creek and Cloudbreak Mines.  On Site: NRW commenced on site at Cloudbreak in March 2008, and Christmas Creek in February 2009. 11