preliminary final report & june quarterly update - Leighton Holdings

2010/11 

PRELIMINARY FINAL REPORT 

& JUNE QUARTERLY UPDATE 

TO 30 JUNE 2011 / ISSUED 15 AUGUST 2011

2010/11 

APPENDIX 4E & 

PRELIMINARY FINAL REPORT 

FOR THE YEAR ENDED 30 JUNE 2011 

ISSUED 15 AUGUST 2011 

For more information please contact: 

David Stewart 

Chief Executive Officer 

Peter Gregg 

Chief Financial Officer 

Cover: Collinsville Coal Mine, Thiess, Queensland 

Leighton Holdings Limited 

ABN 57 004 482 982 

472 Pacific Highway St Leonards NSW 2065 

T +61 2 9925 6666 F +61 2 9925 6000 www.leighton.com.au

Results for Announcement to the Market 

for the year ended 30 June 2011 

Name of Entity 

LEIGHTON HOLDINGS LIMITED 

A$m 

Revenue - Group, joint ventures and associates Up 4% to 19,376.7 

Revenue - joint ventures and associates Down 7% to 3,815.4 

Revenue Up 7% to 15,561.3 

Profit / (loss) attributable to members of the parent entity Down 167% to (408.8) 

For a brief explanation of the figures reported above: refer to pages 3 to 28 of this document. 

Dividends - 2011 Amount per security Franked amount per security 

Final dividend nil nil nil 

Interim dividend 60.0¢ 60.0¢ (100%) 

Dividends - 2010 Amount per security Franked amount per security 

Final dividend 85.0¢ 85.0¢ (100%) 

Interim dividend 65.0¢ 65.0¢ (100%) 

Annual General Meeting Details 

Date 11 November 2011 

Time 

Place 

10.00am 

Grand Ballroom, The Four Seasons Hotel, 199 George Street, Sydney 

Approximate date the Annual Report will be available Late September 2011 


Appendix 4E and Consolidated Preliminary Final Report for the Year Ended 30 June 2011 2

Commentary on the Results 


Total revenue including joint ventures and associates increased by 4% to $19.4 billion. The revenue generating markets for the 

Group were infrastructure $10.7 billion; resources $7.4 billion; and property $1.3 billion. The Group’s work in hand was $46.2 

billion. New work won, including variations and extensions to existing contracts, totalled $26.0 billion. 

The Group result after tax and minority interest for the year was a loss of $408.8 million, down from a profit of $612.0 million in 

2010. The loss was primarily due to losses and reversals on the Airport Link project in Queensland of $690.0 million (loss at 

completion $520.0 million) and the Victorian Desalination project of $355.0 million (loss at completion $278.0 million), and 

operating losses and impairment of the Group’s investment in the Habtoor Leighton Group (“HLG”). The impact of the loss was 

partially offset by a gain on sale of 35% of Leighton India to Welspun during the first half of the year and a gain recognised from 

the acquisition of a controlling interest in Devine Limited in June. 

Losses from the Thiess John Holland joint venture on Airport Link project and Thiess Degremont joint venture on Victorian 

Desalination Project have resulted in Thiess’ segment loss of $317.5 million (2010: profit $425.0 million). Despite this, Thiess 

has a record $16.5 billion work in hand at June, and was awarded $8.1 billion in new contracts, variations and extensions during 

the year. This included the new work on Parki Barwadih Coal Mine in India and the Hunter Valley Expressway in NSW and 

significant extensions at Mt Owen and Burton Coal Mines in Queensland. 

Leighton Contractors delivered a record segment profit of $322.5 million (2010: $271.3 million) due to strong performances in 

construction, contract mining, and telecommunications. Leighton Contractors’ work in hand was a record $10.8 billion. New 

work won for the year of $7.3 billion included the award of the New Royal Adelaide Hospital in South Australia and M2 

motorway upgrade in Sydney. 

John Holland reported a segment loss of $255.0 million (2010: profit $180.0 million) due to its share of the loss on the Airport 

Link project. John Holland continued to win new opportunities with contract awards of $6.0 billion during the year, including 

Perth City Link Hub and South West Rail Link in Sydney, resulting in a record work in hand of $7.7 billion at 30 June 2011. 

Habtoor Leighton Group, reported as a separate segment for the first time this year, recorded a segment loss of $492.4 million 

(2010: loss $35.9 million) due to both operating losses within HLG, resulting from write downs of outstanding receivables, and 

impairments of the Group’s investment during the year of $286.9 million (US$300.0 million) following downward revisions to 

HLG forecast cash flows. Work in hand at 30 June 2011 was $1.8 billion, with contract wins during the year of $0.6 billion 

including Mafraq Hospital and ADIB Headquarters. 

Leighton International, excluding results of HLG for the first time this year, recorded a segment profit of $299.0 million (2010: 

$59.8 million), due to the sale of 35% of Leighton India to Welspun and a strong performance in Leighton Offshore. Leighton 

International also maintained its work in hand of $1.2 billion. 

Leighton Asia recorded a segment profit of $69.8 million (2010: $88.2 million), reflecting strong contributions from Hong Kong 

and Mongolia. Despite adverse movements in exchange rates, Leighton Asia was able to achieve a record work in hand of $6.6 

billion with new work won during the year of $2.9 billion, including contract awards for the construction of four separate Metro 

stations in Hong Kong for MTR and a significant long term extension to contract mining at the UHG Coal Mine in Mongolia. 



Commentary on the Results continued 


Leighton Properties produced a segment loss of $99.6 million (2010: loss $73.4 million), reflecting the impact of write-downs of 

development properties due to subdued recovery of property markets. Leighton Properties will maintain its strategic focus on 

commercial and residential markets to ensure it is positioned to benefit from the upswing. 

The Company recorded a tax benefit for the year of $85.2 million. No tax benefit arises in relation to segment losses in HLG. 

The review by the ATO of the Group’s claim under the R&D concession has been resolved and net $76.1 million has been 

recognised as a benefit in the current year. 

The Group continues to maintain a strong balance sheet which provides the depth and flexibility necessary to tender large, 

complex projects, providing working capital, investing in plant and equipment, and pursuing new opportunities. Managing the 

Group’s capital requirements remains a core discipline underpinning future growth and strategic direction. The Group has 

maintained a strong capital base with shareholders’ equity of $2.3 billion, gross cash of $1.4 billion and undrawn cash and 

guarantee facilities of around $1.2 billion. During the year the Group raised $757.9 million in a 1 for 9 rights issue. 

The debt profile of the Group has continued to be restructured to a longer term maturity, reducing our reliance on short term 

financial markets, with the Group issuing a further US$350.0 million of Guaranteed Senior Notes during the year. The value of 

the Group’s owned property, plant and equipment now stands at $2.6 billion. The Group has operating and finance lease 

facilities available to provide additional capacity and flexibility for the financing and risk management of its plant fleet. The 

value of major plant and equipment under operating leases is $0.9 billion and under finance leases is $0.3 billion. 

On 29 June Devine Limited became a subsidiary and the Group’s balance sheet includes the consolidation of the Devine, 

Hamilton Harbour and Townsville joint venture assets and liabilities. The gross assets consolidated were $683.1 million with 

liabilities of $338.9 million. The Group’s share of the result for Devine for the year ending 30 June 2011 has been equity 

accounted. 

The loss per share of 133.1 cents compares to earnings per share of 204.6 cents in 2010. As a result of the loss, the directors 

announced that no final dividend would be paid (85 cents per share fully franked last year). A fully franked interim dividend of 

60 cents per share was declared at the half year (65 cents per share fully franked last year). 



Consolidated Income Statement 


Note 2011 

$m 

2010 

$m 

Revenue 2 15,561.3 14,559.6 

Expenses 3 (15,363.2) (13,738.6) 

Finance costs 4 (159.6) (180.1) 

Share of profits / (losses) of associates and joint venture entities (529.4) 201.7 

Profit / (loss) before tax (490.9) 842.6 

Income tax benefit / (expense) 85.2 (227.5) 

Profit / (loss) for the year (405.7) 615.1 

Attributable to: 

Members of the parent entity (408.8) 612.0 

Minority interest 3.1 3.1 


Dividends per share - Final 6 nil 85.0¢ 

- Interim 6 60.0¢ 65.0¢ 

Basic earnings per share (133.1¢) 204.6¢ 

Diluted earnings per share (133.1¢) 201.9¢ 

The consolidated income statement is to be read in conjunction with the notes to the consolidated preliminary final report. 



Consolidated Statement of Comprehensive Income 


2011 

$m 

2010 

$m 


Other comprehensive income: 

- Foreign exchange translation differences (net of tax) (269.2) (60.0) 

- Effective portion of changes in fair value of cash flow hedges (net of tax) 3.0 (27.0) 

- Change in fair value of available-for-sale assets (net of tax) (6.7) (10.2) 

- Change in value of equity reserves (7.1) 1.2 

Net gain / (loss) recognised directly in equity (280.0) (96.0) 

Total comprehensive income / (expense) for the year (685.7) 519.1 

Attributable to: 

Members of the parent entity (688.8) 516.0 


Total comprehensive income / (expense) for the year (685.7) 519.1 

The consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated preliminary final report. 



Consolidated Balance Sheet 

as at 30 June 2011 

Note 2011 

$m 

2010 

$m 

Assets 

Cash and cash equivalents 8 1,414.7 1,313.7 

Trade and other receivables 2,484.0 2,398.6 

Current tax assets 102.8 36.9 

Inventories: consumables and development properties 726.7 375.9 

Other investments - 53.6 

Property, plant and equipment 4.7 3.7 

Total current assets 4,732.9 4,182.4 

Trade and other receivables 373.3 53.3 

Inventories: development properties 422.2 180.3 

Investments accounted for using the equity method 1,003.6 1,783.0 

Other investments 65.2 65.2 

Deferred tax assets 432.8 346.7 

Property, plant and equipment 2,614.5 2,030.2 

Intangibles 155.7 124.7 

Total non-current assets 5,067.3 4,583.4 

Total assets 9,800.2 8,765.8 

Liabilities 

Trade and other payables 4,437.3 3,358.7 

Current tax liabilities 47.0 231.5 

Provisions 292.6 262.3 

Interest bearing liabilities 13 271.3 345.6 

Total current liabilities 5,048.2 4,198.1 

Trade and other payables 623.2 433.0 


Interest bearing liabilities 13 1,555.2 1,324.7 

Total non-current liabilities 2,432.1 1,999.6 

Total liabilities 7,480.3 6,197.7 

Net assets 2,319.9 2,568.1 

Equity 

Share capital 14 2,016.2 1,232.9 

Reserves (305.7) (40.5) 

Retained earnings 526.2 1,372.3 

Total equity attributable to equity holders of the parent 2,236.7 2,564.7 


Total equity 2,319.9 2,568.1 

The consolidated balance sheet is to be read in conjunction with the notes to the consolidated preliminary final report. 



Consolidated Statement of Changes in Equity 


Share 

Capital 

$m 

Reserves 

$m 

Retained 

Earnings 

$m 

Attributable 

to Equity 

Holders 

$m 

Minority 

Interest 

$m 

Total 

Equity 

$m 

Total equity at 30 June 2009 1,171.8 48.0 1,119.5 2,339.3 (0.7) 2,338.6 

Total comprehensive income - (96.0) 612.0 516.0 3.1 519.1 

Transactions with owners in their 

capacity as owners: 

- Contributions of equity 61.1 61.1 61.1 

- Dividends (359.2) (359.2) (359.2) 

- Share based payments 7.5 7.5 7.5 

- Other 1.0 1.0 

Total transactions with owners 61.1 7.5 (359.2) (290.6) 1.0 (289.6) 

Total equity at 30 June 2010 1,232.9 (40.5) 1,372.3 2,564.7 3.4 2,568.1 

Total comprehensive income - (280.0) (408.8) (688.8) 3.1 (685.7) 

Transactions with owners in their 

capacity as owners: 

- Contributions of equity 783.3 783.3 783.3 

- Dividends (437.3) (437.3) (437.3) 

- Share based payments 14.8 14.8 14.8 

- Other 2.2 2.2 

Total transactions with owners 783.3 14.8 (437.3) 360.8 2.2 363.0 

Minority - acquisition of controlled 

entity 

74.5 74.5 

Total equity at 30 June 2011 2,016.2 (305.7) 526.2 2,236.7 83.2 2,319.9 

The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated preliminary final report. 



Consolidated Statement of Cash Flows 


Note 2011 

$m 

2010 

$m 

Cash flows from operating activities 

Cash receipts in the course of operations (including GST) 17,040.5 16,219.3 

Cash payments in the course of operations (including GST) (15,340.6) (14,232.6) 

Cash flows from operating activities 1,699.9 1,986.7 

Dividends received 0.1 2.8 

Interest received 23.9 18.2 

Finance costs paid (128.4) (173.3) 

Income taxes paid (274.2) (94.9) 

Net cash from operating activities 11 1,321.3 1,739.5 

Cash flows from investing activities 

Payments for plant and equipment (1,378.5) (895.1) 

Proceeds from sale of property, plant and equipment 25.4 135.6 

Payments for investments in controlled entities and businesses (8.7) (0.9) 

Cash acquired from acquisition of investments in controlled entities and businesses 22.8 - 

Proceeds from sale of investments in controlled entities and businesses 90.5 - 

Cash disposed from sale of investments in controlled entities and businesses (108.5) - 

Payments for other investments - (105.8) 

Proceeds from sale of other investments 56.9 39.9 

Loans to associates (300.6) (87.2) 

Net cash from investing activities (1,600.7) (913.5) 

Cash flows from financing activities 

Proceeds from share issues 783.3 46.2 

Proceeds from borrowings 396.7 572.2 

Repayment of borrowings (207.6) (377.5) 

Repayment of finance leases (62.3) (49.8) 

Distributions to minority interest (0.3) - 

Dividends paid (437.3) (359.2) 

Net cash from financing activities 472.5 (168.1) 

Net increase / (decrease) in cash held 193.1 657.9 

Net cash at the beginning of the year 1,313.7 665.8 

Effects of exchange rate fluctuations on cash held (92.1) (10.0) 

Net cash at reporting date 8 1,414.7 1,313.7 

The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated preliminary final report. 



Notes to the Consolidated Preliminary Final Report 


1. BASIS OF PREPARATION 

The consolidated preliminary final report is presented in Australian dollars and has been prepared on a historical cost basis, 

except for derivative financial instruments and available-for-sale assets that have been measured at fair value at reporting date. 

Leighton Holdings Limited (the “Company”) is a company domiciled in Australia. The consolidated preliminary final report of 

the Company for the year ended 30 June 2011 comprises the Company and its controlled entities (the “Consolidated Entity” or 

“Group”) and the Consolidated Entity’s interest in associates and jointly controlled entities. 

The Company is a company of the kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that 

Class Order, all financial information presented in Australian dollars has been rounded off to the nearest hundred thousand 

dollars, unless otherwise stated. 

The consolidated preliminary final report is based on the Group’s financial statements which are in the process of being audited 

and have been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian Accounting 

Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The financial 

statements also comply with International Financial Reporting Standards adopted by the International Accounting Standards 

Board. The accounting policies adopted are consistent with those of the previous financial year. 

The Company does not expect that there will be any modification or qualification to the audit opinion on the financial 

statements. 

The consolidated preliminary final report was authorised for issue by the directors on 15 August 2011. 

2. REVENUE 

Note 2011 

$m 

2010 

$m 

Construction contracting services 9,159.7 8,659.5 

Mining contracting services 5,177.0 4,861.4 

Property development revenue 76.5 217.9 

Other services revenue 1,118.3 803.0 

Revenue from external customers 15,531.5 14,541.8 

Interest 

- Related parties 4.4 0.5 

- Other parties 18.3 13.4 

Unwinding of discounts on non-current receivables 

- Related parties 5.6 0.2 

- Other parties 1.4 0.9 

Dividends / distributions 0.1 2.8 

Other revenue 29.8 17.8 

Total revenue 5 15,561.3 14,559.6 



Notes continued 


3. EXPENSES 

Note 2011 

$m 

2010 

$m 

Materials (4,369.9) (3,552.5) 

Subcontractors (3,777.2) (3,258.7) 

Plant costs (1,166.2) (1,354.3) 

Personnel costs (4,100.8) (3,492.9) 

Depreciation of property, plant and equipment 4 (865.6) (824.0) 

Amortisation of intangibles 4 (0.6) - 

Net gain / (loss) on sale of assets 4 322.2 30.5 

Net gain on acquisition of controlled entities 4 101.0 - 

Impairments 4 (301.1) (16.3) 

Property development and property joint ventures write-downs (80.1) (38.9) 

Property development - cost of goods sold (78.1) (220.9) 

Foreign exchange gains / (losses) 2.8 (7.3) 

Operating lease payments - plant and equipment (324.8) (379.0) 

Operating lease payments - other (84.7) (78.3) 

Professional and management fees (245.5) (201.3) 

Other expenses (394.6) (344.7) 

Total expenses (15,363.2) (13,738.6) 





4. ITEMS INCLUDED IN PROFIT / (LOSS) BEFORE TAX 

Note 2011 

$m 

2010 

$m 

Finance costs 

Interest 

- Related parties (4.2) (2.5) 

- Other parties (108.2) (135.5) 

Finance charge for finance leases (10.3) (9.4) 

Facility fees (26.0) (26.8) 

Impact of discounting 

- Related parties (9.3) (5.4) 

Interest rate swap close out transferred from equity (1.6) (0.5) 

Total finance costs (159.6) (180.1) 

Depreciation of property, plant and equipment 

- Buildings (3.0) (3.0) 

- Plant and equipment (847.6) (804.8) 

- Leasehold land, buildings and improvements (13.1) (13.7) 

- Waste management assets (1.9) (2.5) 

Total depreciation of property, plant and equipment (865.6) (824.0) 

Amortisation 

- Intangibles (0.6) - 

Net gain / (loss) on sale of assets 

- Controlled entities 10 259.4 - 

- Other investments 49.0 22.4 

- Land and buildings 0.2 (0.7) 

- Plant and equipment 13.6 8.8 

Total gain / (loss) on sale of assets 322.2 30.5 

Net gain on acquisition of controlled entities 

- Controlled entities 10 101.0 - 

Impairments 

- Investments in infrastructure toll road companies (4.0) (16.3) 

- Investments accounted for using the equity method (296.4) - 

- Goodwill (0.7) - 

Total impairments (301.1) (16.3) 





5. SEGMENT INFORMATION 

Thiess 

$m 

Leighton 

Contractors 

$m 

John 

Holland 

$m 

Habtoor 


Group 

$m 


Int’l 

$m 


Asia 

$m 


Properties Corporate 

$m $m 

Eliminations 

$m 

Total 

$m 

June 2011 

Revenue 

Segment revenue before 6,619.4 6,178.8 3,672.5 846.9 839.5 1,048.9 132.5 23.1 (14.6) 19,347.0 

interest 

Interest revenue 17.4 - - - - - - 12.3 - 29.7 

Segment revenue 6,636.8 6,178.8 3,672.5 846.9 839.5 1,048.9 132.5 35.4 (14.6) 19,376.7 

Inter-segment revenue - 1.4 - - - 13.2 - - (14.6) - 

Segment joint venture and 1,665.2 461.4 518.1 846.9 157.1 124.6 42.1 - - 3,815.4 

associate revenue 

External revenue 4,971.6 5,716.0 3,154.4 - 682.4 911.1 90.4 35.4 - 15,561.3 

Result 

Segment result before interest (316.8) 366.4 (243.8) (176.7) 311.6 85.1 (88.3) 32.3 - (30.2) 

and impairments 

Interest - (39.9) (11.2) (28.8) (12.6) (15.3) (11.3) (40.5) - (159.6) 

Segment result before 

(316.8) 326.5 (255.0) (205.5) 299.0 69.8 (99.6) (8.2) - (189.8) 

impairments 

Impairments (0.7) (4.0) - (286.9) - - - (9.5) - (301.1) 

Segment result (317.5) 322.5 (255.0) (492.4) 299.0 69.8 (99.6) (17.7) - (490.9) 

Income tax (expense) / benefit 85.2 

Profit / (loss) for the year (405.7) 

Other 

Share of profit / (loss) of (486.3) 2.0 61.0 (155.7) 21.3 20.2 (0.4) 8.5 - (529.4) 

associates and joint venture 

entities 

Depreciation (367.3) (304.9) (83.4) - (6.5) (98.7) (0.4) (4.4) - (865.6) 

Other material non-cash 

expenses 

(0.7) (4.6) - (286.9) - - (80.1) (9.5) - (381.8) 

Assets and liabilities 

Reportable segment assets 1,520.1 2,336.2 848.3 474.9 452.9 801.0 340.4 3,890.2 - 10,664.0 

Investments accounted for 70.3 47.0 14.0 474.9 212.2 - 97.7 87.5 - 1,003.6 

using the equity method 

Capital expenditure 515.2 656.4 152.9 - 12.8 253.0 1.3 9.9 - 1,601.5 

Reportable segment liabilities 1,550.8 1,233.0 957.5 - 267.7 474.8 44.2 3,816.1 - 8,344.1 

Non-current assets 

Revenue 

2011 

$m 

2010 

$m 

2011 

$m 

2010 

$m 

Geographical information 

Australia / Pacific 2,512.8 1,757.4 13,329.9 12,187.5 

Asia 679.6 577.8 2,231.4 2,372.1 

Total 3,192.4 2,335.2 15,561.3 14,559.6 





5. SEGMENT INFORMATION CONTINUED 

Thiess 

$m 


Contractors 

$m 

John 

Holland 

$m 

Habtoor 


Group 

$m 


Int’l 

$m 


Asia 

$m 


Properties Corporate Eliminations 

$m $m $m 

Total 

$m 

June 2010 

Revenue 

Segment revenue before 6,640.8 5,322.7 3,618.8 1,106.7 644.3 1,148.9 210.9 7.1 (73.1) 18,627.1 

interest 

Interest revenue 2.4 - 1.9 - - - - 10.7 - 15.0 

Segment revenue 6,643.2 5,322.7 3,620.7 1,106.7 644.3 1,148.9 210.9 17.8 (73.1) 18,642.1 

Inter-segment revenue 22.3 50.8 - - - - - - (73.1) - 

Segment joint venture and 1,255.4 925.7 499.6 1,106.7 9.0 245.7 40.4 - - 4,082.5 

associate revenue 

External revenue 5,365.5 4,346.2 3,121.1 - 635.3 903.2 170.5 17.8 - 14,559.6 

Result 

Segment result before interest 425.0 317.3 180.0 (1.1) 86.1 97.9 (64.6) (1.6) - 1,039.0 

and impairments 

Interest - (36.4) - (34.8) (26.3) (9.7) (8.8) (64.1) - (180.1) 

Segment result before 

425.0 280.9 180.0 (35.9) 59.8 88.2 (73.4) (65.7) - 858.9 

impairments 

Impairments - (9.6) - - - - - (6.7) - (16.3) 

Segment result 425.0 271.3 180.0 (35.9) 59.8 88.2 (73.4) (72.4) - 842.6 

Income tax (expense) / benefit (227.5) 

Profit / (loss) for the year 615.1 

Other 

Share of profit / (loss) of 

86.5 36.2 26.8 7.9 (5.2) 36.7 3.1 9.7 - 201.7 

associates and joint venture 

entities 

Depreciation (442.1) (213.3) (80.6) - (9.8) (75.6) - (2.6) - (824.0) 

Other material non-cash 

expenses 

- (9.6) - - - - (38.9) (6.7) - (55.2) 

Assets and liabilities 

Reportable segment assets 1,983.0 1,874.9 876.6 1,144.4 522.5 672.0 363.4 2,494.1 - 9,930.9 

Investments accounted for 99.8 30.4 9.0 1,144.4 72.8 - 162.0 264.6 - 1,783.0 

using the equity method 

Capital expenditure 551.2 322.5 81.4 - 40.2 319.7 - 6.2 - 1,321.2 

Reportable segment liabilities 1,540.8 862.3 827.8 - 256.6 338.1 11.2 3,526.0 - 7,362.8 





5. SEGMENT INFORMATION CONTINUED 

Description of segments 

Operating segments have been identified based on separate financial information that is regularly reviewed by the Leighton 

CEO, the Chief Operating Decision Maker (“CODM”). The Leighton Group is structured on a decentralised basis comprising the 

following main operating companies and a corporate head office: 

• Thiess 

• Leighton Contractors 

• John Holland 

• Habtoor Leighton Group (“HLG”) 

• Leighton International 

• Leighton Asia 

• Leighton Properties 

The performance of each operating company forms the primary basis for all management reporting to the CODM. HLG has 

been disclosed as a separate segment to Leighton International since 1 July 2010 as its performance is reported separately to 

the CODM. Accordingly, segment data for the prior period presented for comparative purposes has been restated to reflect the 

newly reportable segment as a separate segment in accordance with AASB 8 Operating Segments. The types of services from 

which segments derive revenue, are included in note 2: Revenue. The Group’s share of revenue from joint ventures is included 

in the revenue reported for each applicable operating company. Performance is measured based on segment result. 

Information regarding the results of each reportable segment, as reported to the CODM, is included on pages 13 to 14. The 

corporate segment represents the corporate head office and includes transactions relating to Group finance, taxation, treasury, 

corporate secretarial and certain strategic investments. 

Plant and equipment leased under operating lease facilities of $0.9 billion (2010: $1.2 billion) is included in segment assets with 

a corresponding amount in segment liabilities. Other than this, differences in the reporting for management and financial 

accounting are individually and in total, not material. These differences are contained in the results of the corporate segment 

and include: 

• Interest capitalised on property developments held indirectly through joint ventures and associates; and 

• Adjustments for tax on earnings from equity accounted investments, as earnings from equity accounted investments are 

reported on a pre-tax basis in the applicable operating company. 

Geographical segments 

In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of the 

customer and the location of the service provided. Segment assets are based on the geographical location of the assets. 

Major customers 

No revenue from transactions with a single external customer amount to 10% or more of the Group’s revenue. 





6. DIVIDENDS 

Cents per 

share $m 

2011 final dividend 

No final dividend has been declared by the Company in respect of the year ended 30 

June 2011 

nil 

nil 

Dividends recognised in the reporting period to 30 June 2011 

2011 interim ordinary dividend 100% franked paid on 31 March 2011 60.0 181.7 

2010 final ordinary dividend 100% franked paid on 30 September 2010 85.0 255.6 

437.3 

Dividends recognised in the reporting period to 30 June 2010 

2010 interim ordinary dividend 100% franked paid on 31 March 2010 65.0 195.2 

2009 final ordinary dividend 100% franked paid on 30 September 2009 55.0 164.0 

359.2 

7. NET TANGIBLE ASSET BACKING 

June 2011 June 2010 

Net tangible asset backing per ordinary share $6.43 $8.13 

8. CASH AND CASH EQUIVALENTS 

2011 

$m 

2010 

$m 

Funds on deposit* 603.9 686.5 

Cash at bank and on hand 810.8 627.2 

Total cash and cash equivalents 1,414.7 1,313.7 

* Funds on deposit include US$96.1 million (30 June 2010: nil), equivalent to $89.8 million (30 June 2010: nil), which has been 

pledged as security against borrowings by Habtoor Leighton Group (“HLG”) under a US$136.1 million loan facility, 

equivalent to $127.2 million. A letter of credit has been pledged as security against the remaining US$40.0 million, 

equivalent to $37.4 million. In addition US$46.3 million (30 June 2010: nil), equivalent to $43.3 million (30 June 2010: nil), 

has also been pledged as security against borrowings by HLG under a second US$136.1 million loan facility, equivalent to 

$127.2 million. Subsequent to the reporting date a further US$10.9 million, equivalent to $10.2 million, has been pledged 

as security against the second facility. The cash security is expected to be released within the next 12 months. 





9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD 

Associates 

Ownership Interest 

Name of entity Principal activity 2011 

% 

2010 

% 

Al Habtoor Leighton LLC Construction 45 45 

Devine Limited (refer to note 10) Development - 49 

Dunsborough Lakes Village Syndicate Development 20 20 

Macmahon Holdings Limited 

Construction, Contract 

19 19 

Mining 

Metro Trains Melbourne Pty Limited Services 20 20 

Oriental Pathways (Agra) Pvt Limited Investment - 49 

Oriental Pathways (Indore) Pvt Limited Investment - 49 

Sedgman Limited 

Construction, Contract 

Mining 

32 32 

Al Habtoor Leighton LLC 

During the year the carrying value of the Group’s investment in Al Habtoor Leighton LLC (“HLG”) decreased from $1,144.4 

million to $474.9 million (equivalent to US$972.8 million and US$508.2 million). The decrease was due to foreign exchange 

revaluation of $226.9 million, operating losses of $155.7 million and an impairment of $286.9 million. The impairment was due 

to a downward revision to forecast cash flow, reflecting HLG’s current performance and prevailing market conditions in the 

Middle East and Africa region (“MEA”). The recoverable amount was determined using a value in use calculation. 

The key assumptions used in the value in use calculation: 

Discount rate: 16.0% (June 2010: 14.2%) 

Growth rate: 

3.0% (June 2010: 3.0%) for cash flows beyond five years. This rate does not exceed the 

expected long-term average growth rate for the MEA region. 

Legacy project receivables: The economic downturn in the Gulf region continues to delay payment from clients, 

particularly for projects in progress at the time the Group invested in HLG. It is assumed 

45% of the remaining unprovided legacy project receivables will be collected within 24 

months. 

Borrowings: 

Borrowings obtained to fund working capital will be progressively repaid during the forecast 

period. 

Forecast cash flow: 

The calculation uses five year cash flow projections based on forecasts provided by HLG’s 

management, risk adjusted downward by the Group. Cash flows beyond five years are 

extrapolated using the estimated growth rate. 

The Group has also provided interest free loans of US$117.6 million (30 June 2010: US$32.4 million) equivalent to $109.9 

million (30 June 2010: $38.1 million) maturing on 5 September 2012 and interest bearing loans of US$244.9 million (30 June 

2010: US$nil) equivalent to $228.9 million (30 June 2010: $nil) maturing on 5 September 2012. These loans are included in 

non-current trade and other receivables. Subsequent to reporting date, the Group provided a further interest bearing loan of 

US$40.8 million equivalent to $38.1 million. 





9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD CONTINUED 

Joint Ventures 



% 

2010 

% 

400 George Street Partnership Development 50 50 

APM Group (Aust) Pty Ltd & Broad Construction Services 

Construction 45 - 

(NSW/VIC) Pty Ltd 

APN No.19 Pty Ltd And Leighton Properties (VIC) Pty Ltd Development 50 50 

Aspire Schools (Qld) Pty Limited Construction, Services 50 50 

Aspire Schools Financing (Qld) Pty Limited Investment 50 50 

Aspire Schools Financing Services (Qld) Pty Limited Construction 50 50 

Aspire Schools Holdings (Qld) Pty Limited Investment 50 50 

Auckland Road Maintenance Construction 50 50 

Bac Devco Pty Limited Development 33 33 

Bankstown Airport Development Pty Limited Development - 50 

Bayview Project Noosa Partnership Development 50 50 

BJB Joint Venture Services 38 38 

Brisbane Motorway Services Pty Limited Services 50 50 

China State Leighton Joint Venture Construction 50 50 

City West Property Holding Trust (Section 63 Trust) Development 50 50 

City West Property Holdings Pty Limited Development 50 50 

City West Property Investment (No.1) Trust Development 50 50 






City West Property Investments (No.1) Pty Limited Development 50 50 






Cockatoo Iron Ore Contract Mining 50 50 

Cockatoo Mining Pty Ltd Contract Mining 50 50 

Coleman Rail Pty Ltd & John Holland Pty Ltd Construction 50 - 

Coleman Rail Pty Ltd & John Holland Pty Ltd & York Civil Pty Ltd Construction 38 38 

Coleman Rail Pty Ltd & John Holland Pty Ltd & York Civil Pty Ltd 

(Tracksure Rail Upgrade) 

Construction 38 38 






Joint Ventures continued 



% 

2010 

% 

Conneq Infrastructure Services (Australia) Pty Ltd and John Services 50 50 

Holland Pty Ltd 

Copperstring Pty Ltd Construction 50 - 

Cotter Googong Bulk Transfer Joint Venture Construction 50 50 

Deep Blue Consortium Pty Ltd Development - 50 

Degremont Thiess Services Joint Venture Services 40 40 

Erskineville Residential Project Development 50 - 

Fallingwater Trust Development 15 - 

Folkestone/Leighton JV Pty Limited Development 50 50 

Gammon - Leighton Joint Venture Construction 50 - 

Gateway Motorway Services Pty Limited Services 50 50 

Hamilton Harbour Developments Pty Ltd Development - 50 

Hamilton Harbour Unit Trust (Devine Hamilton Unit Trust) Development - 50 

Hassall Street Pty Ltd Development 50 50 

Hassall Street Trust Development 50 50 

Hazell Brothers John Holland Joint Venture Construction 50 50 

Holland York Joint Venture Construction 50 50 

Hoxton Park Airport Development Pty Limited Development - 50 

HPAL Freehold Pty Limited Development 50 50 

HYLC Joint Venture Construction 50 - 

Infocus Infrastructure Management Pty Limited Services 50 50 

James Fielding Developments Pty Limited and 

Development - 50 

Leighton Properties Pty Limited Partnership 

JM Joint Venture Construction 50 50 

JM JV SIA Joint Venture Construction 80 80 

John Holland Abigroup Contractors Joint Venture (Bulk Water) Construction 50 50 

John Holland Abigroup Contractors Joint Venture 


(Coffs Infrastructure) 

John Holland BRW Joint Venture Construction 50 50 

John Holland Coleman Rail Joint Venture Construction 50 50 

John Holland Colin Joss Joint Venture Construction 50 50 

John Holland Downer EDI Engineering Power Joint Venture Construction 65 65 

John Holland Downer EDI Joint Venture Construction 60 60 

John Holland Fairbrother Joint Venture Construction 50 50 

John Holland Fulton Hogan Joint Venture Construction 50 50 









% 

2010 

% 

John Holland Laing O'Rourke Joint Venture Construction 50 50 

John Holland Macmahon Joint Venture (Bell Bay) Construction 80 80 

John Holland Macmahon Joint Venture (Roe and Tonkin Highways) Construction 50 50 

John Holland Macmahon Joint Venture (Ross River Dam) Construction 50 50 

John Holland McConnell Dowell Joint Venture Construction 50 50 

John Holland Pty Ltd & Leed Engineering and Construction Pty Ltd Construction 40 - 

& Macmahon Contractors Pty Ltd 

John Holland Pty Ltd & UGL Infrastructure Pty Ltd Construction 50 - 

John Holland Tenix Alliance Joint Venture Construction 50 50 

John Holland Thames Water Joint Venture Construction 50 50 

John Holland United Group Infrastructure Joint Venture Construction 47 47 

John Holland Veolia Water Australia Joint Venture (Blue Water) Construction 74 74 

John Holland Veolia Water Australia Joint Venture (Gold Coast Construction 64 64 

Desalination Plant) 

Kentz E & C Pty Ltd Construction 50 50 

Kurunjang Development Trust Development 50 - 

Leighton Abigroup Joint Venture Construction 50 50 

Leighton Able Joint Venture Construction 51 51 

Leighton BMD JV Construction 50 50 

Leighton China State John Holland Joint Venture (City Of Dreams) Construction 70 70 

Leighton China State Joint Venture (Wynn Resort) Construction 50 50 

Leighton China State Van Oord Joint Venture Construction 45 45 

Leighton Construction India (Private) Limited Construction 50 50 

Leighton Contractors & Baulderstone Hornibrook Bilfinger Berger Construction 50 50 

Joint Venture 

Leighton Hsin Chong Joint Venture Construction 50 50 

Leighton Kumagai Joint Venture (MetroRail) Construction 55 55 

Leighton Kumagai Joint Venture (Route 9 - Eagle’s Nest Tunnel) Construction 51 51 

Leighton Kumagai Joint Venture 


(Wanchai East & North Point Trunk Sewerage) 

Leighton Monnis Infrastructure JV LLC Construction 55 55 

Leighton Offshore Middle East Construction - 73 

Leighton Oriental Structural Engineers Joint Venture - In050A Construction - 50 

Leighton Oriental Structural Engineers Joint Venture - In050B Construction - 50 









% 

2010 

% 

Leighton Welspun Contractors Private Ltd 

Construction 65 - 

(formerly Leighton Contractors (India) Private Ltd) 

Link 200 Joint Venture Construction 48 48 

Link 200 Station Joint Venture Construction 60 60 

Link 200 Tunnel Joint Venture Construction 60 60 

Macmahon Leighton Joint Venture Construction 50 50 

Majwe Mining (Proprietary) Limited Contract Mining 60 - 

Manukau Motorway Extension Construction 50 50 

Moonamang Joint Venture Pty Ltd Construction - 90 

Mulba Mia Leighton Broad Joint Venture Construction 63 63 

Ngarda Civil and Mining Pty Limited Contract Mining 50 50 

Ngarda Civil and Mining Pty Limited and 


Leighton Contractors Pty Limited 

Northern Gateway Alliance Construction 50 50 

Norton Street Investments Pty Ltd Development 45 45 

Promet Engineers Pty Limited Construction 50 50 

Rail Link Joint Venture Construction 65 65 

Riverina Estate Developments Trust Development 50 - 

Roche Thiess Linfox Joint Venture Contract Mining 44 44 

SA Health Partnership Holding Nominees Pty Ltd Investment 20 - 

SA Health Partnership Nominees Pty Ltd Investment 20 - 

Silcar Pty Limited Services 50 50 

Southern Gateway Alliance (Mandurah) Construction 69 69 

Taiwan Track Partners Joint Venture Construction 28 28 

Thiess Alstom Joint Venture Construction 50 50 

Thiess Black and Veatch Joint Venture Construction 50 50 

Thiess Decmil Kentz Joint Venture Construction 33 33 

Thiess Degremont Joint Venture Construction 65 65 

Thiess Degremont Nacap Joint Venture Construction 33 33 

Thiess Downer EDI Works Joint Venture Construction 75 75 

Thiess Hochtief Joint Venture Construction 50 50 

Thiess Sedgman Joint Venture Construction 50 50 

Thiess Services Arkwood Joint Venture Services 50 50 

Thiess Services Middle East LLC Services 50 50 









% 

2010 

% 

Thiess United Group Joint Venture Construction 50 50 

Townsville City Project Pty Ltd Development - 50 

Townsville City Project Trust Development - 50 

TSDI Pty Ltd Services 50 50 

Ubique Finance Pty Ltd Construction 50 - 

Veolia Water - Leighton - John Holland Joint Venture Construction 40 - 

Viridian Noosa Pty Limited (in receivership) Development 50 50 

Viridian Noosa Resort Management Pty Ltd (deregistered 13th July 2011) Development 50 50 

Viridian Noosa Trust (in receivership) Development 50 50 

VR Pakenham Trust Development 50 - 

Wedgewood Road Hallam No.1 Pty Ltd Development 50 50 

Wedgewood Road Hallam Trust Development 50 50 

Westlink (Services) Pty Limited Services 50 50 





10. ACQUISITION AND DISPOSALS OF CONTROLLED ENTITIES AND BUSINESSES 

Acquisitions 

During the year to 30 June 2011 the Consolidated Entity made the following acquisitions: 

Devine Limited 

On 29 June 2011 Leighton Residential Investments Pty Ltd, a controlled entity of the Company, acquired 2,500,000 additional 

shares in Devine Limited (‘Devine’), a company listed on the Australian Securities Exchange, at $0.23 per share which increased 

the Group’s interest to 50.06%. 

The decision to acquire a controlling interest in Devine followed a review of the Group’s property interests. The increased 

shareholding provides stronger flexibility and certainty to the Group’s strategy and position in property. The decision also 

supports Devine’s strategy to grow the business through joint ventures and commercial relationships with other strategic 

partners that will be assured by the increased shareholding. 

As a result of this purchase the Group has gained a controlling interest in Devine as well as the Hamilton Harbour and 

Townsville joint ventures between Devine and Leighton Properties. 

The acquisition has been accounted for under the requirements of Accounting Standard AASB 3 Business Combinations as 

follows: the purchase consideration paid for Devine was determined as $149.1 million (comprising: cash paid of $0.6 million; 

the market value of non-controlling interest of $74.5 million; and, the market value of the Group’s previously held equity 

interest of 49.66% of $74.0 million); and the fair value of the identifiable net assets of Devine acquired by the Group was $344.2 

million. The fair value of the identifiable net assets was determined using the assistance of independent valuation experts. 

The fair value of the identifiable net assets of Devine of $344.2 million exceeded the total purchase consideration resulting in a 

gain on acquisition of a controlled entity of $195.1 million. In accordance with AASB 3, the Group revalued its previously held 

equity interest in Devine resulting in a loss of $94.1 million. The net gain on the acquisition recognised in profit and loss was 

$101.0 million (Refer note 4: Items included in profit before tax). Due to the date of the acquisition there was no contribution 

by Devine to the Group’s operating profit and loss for the year ended 30 June 2011. Devine’s contribution for the year is 

recorded in share of profits of associates. For comparative purposes the total reported profit of Devine for the year ended 30 

June 2010 was $8.2 million. 

Other acquisitions 

During the year the Group also acquired Delron Cleaning Pty Limited on 1 July 2010 for $8.1 million including acquisition costs, 

and Moonamang Joint Venture Pty Limited on 10 June 2011 for one hundred dollars including acquisition costs. 

Disposals 

Leighton Contractors (India) Private Limited 

On 24 December 2010 the Group sold 35% of Leighton Contractors (India) Private Limited (“Leighton India”) to Welspun Infra 

Projects Private Limited (“Welspun”) and entered into a joint venture arrangement with Welspun to pursue opportunities in the 

Indian construction market. As the Group no longer controls Leighton India the transaction has been recorded as a disposal of 

a controlled entity and the acquisition of an interest in a joint venture entity. The disposal has been accounted for under the 

requirements of Accounting Standard AASB 127 Consolidated and Separate Financial Statements as follows: the total 

consideration received was US$298.8 million (comprising: cash consideration of US$104.6 million (of which US$95.7m has been 

received to date) and non-cash consideration of US$194.2 million (fair value of the 65% retained interest based on the cash 

consideration)) less the carrying value of Leighton India’s net assets of US$39.4 million, resulting in a gain before tax of 

US$259.4 million. (Refer to note 4: Items included in profit before tax). Leighton India’s contribution since 31 December 2010 is 

recorded in share of profits of joint ventures entities. 





11. RECONCILIATION OF PROFIT / (LOSS) FOR THE YEAR TO NET CASH FROM OPERATING ACTIVITIES 

2011 

$m 

2010 

$m 


Adjustments for non-cash items: 

- Depreciation of property, plant and equipment 865.6 824.0 

- Amortisation of intangibles 0.6 - 

- Net (gain) / loss on sale of assets (322.2) (30.5) 

- Net (gain) on acquisition of a controlled entity (101.0) - 

- Impairment of investments in infrastructure toll road companies 4.0 16.3 

- Impairment of investments accounted for using the equity method 296.4 - 

- Impairment of goodwill 0.7 - 

- Property development and property joint venture write-downs 80.1 38.9 

- Net amounts set aside to provisions 427.7 373.8 

- Share of profits of associates 144.4 (7.7) 

- Foreign exchange losses (4.6) 5.4 

- Share based payments 14.8 7.5 

Net changes in assets / liabilities: 

- Decrease / (increase) in receivables (190.2) 20.3 

- Decrease / (increase) in joint ventures (2.2) (108.3) 

- Decrease / (increase) in inventories (62.9) 13.8 

- Increase / (decrease) in payables 1,301.6 184.5 

- Increase / (decrease) in provisions (379.9) (324.7) 

- Current and deferred income tax movement (345.9) 111.1 

Net cash from operating activities 1,321.3 1,739.5 





12. LIQUIDITY BALANCE SHEET 

Previously, the Consolidated Entity’s balance sheet was presented using the liquidity format with current and non-current 

information disclosed in the notes. To provide more relevant information to users upfront, the Consolidated Entity’s balance 

sheet is now presented in a current and non-current format as at 30 June 2011. For comparative information purposes, a 

liquidity balance sheet is included below. 

Note 2011 

$m 

2010 

$m 

Assets 

Cash and cash equivalents 8 1,414.7 1,313.7 

Trade and other receivables 2,857.3 2,451.9 

Current tax assets 102.8 36.9 

Inventories: consumables and development property 1,148.9 556.2 

Investments accounted for using the equity method 1,003.6 1,783.0 

Other investments 65.2 118.8 

Deferred tax assets 432.8 346.7 

Property, plant and equipment 2,619.2 2,033.9 

Intangibles 155.7 124.7 

Total assets 9,800.2 8,765.8 

Liabilities 

Trade and other payables 5,060.5 3,791.7 

Current tax liabilities 47.0 231.5 


Interest bearing liabilities 13 1,564.8 1,478.9 

Interest bearing liabilities - limited recourse 13 261.7 191.4 

Total liabilities 7,480.3 6,197.7 

Net assets 2,319.9 2,568.1 

Equity 

Share capital 14 2,016.2 1,232.9 

Reserves (305.7) (40.5) 

Retained earnings 526.2 1,372.3 

Total equity attributable to equity holders of the parent 2,236.7 2,564.7 


Total equity 2,319.9 2,568.1 





13. INTEREST BEARING LIABILITIES 

2011 

$m 

2010 

$m 

Current 

Interest bearing loans 68.6 85.6 

Finance lease liabilities 68.8 68.6 

Interest bearing liabilities - limited recourse loans 133.9 62.0 

Interest bearing liabilities - limited recourse Leighton Finance International Notes - 129.4 

Total current liabilities 271.3 345.6 

Non-current 

Interest bearing loans 1,152.2 1,070.2 

Finance lease liabilities 275.2 254.5 

Interest bearing liabilities - limited recourse loans 127.8 - 

Total non-current liabilities 1,555.2 1,324.7 

Total interest bearing liabilities 1,826.5 1,670.3 

Interest Bearing Loans 

Syndicated Loans 

On 10 October 2008, Leighton Finance Limited, a wholly owned subsidiary of the Company, entered into a syndicated bank 

facility for $520.0 million, maturing on 10 October 2011. On 8 December 2010, the syndicated bank facility was Amended and 

Restated to $600.0 million, maturing on 8 December 2013. Amount outstanding as at 30 June 2011: $nil (30 June 2010: $nil). 

On 14 September 2007 LMENA No.1 Pty Limited, a wholly owned subsidiary of the Company, entered into a syndicated bank 

loan for US$434.0 million loan maturing on 30 September 2012 to finance its investment in Al Habtoor Engineering Enterprises 

LLC. The loan was recourse only to the investment in Al Habtoor Leighton LLC. On 31 March 2010, the facility was Amended 

and Restated. The Amended and Restated facility is for US$368.2 million and is guaranteed by the Group. Amount outstanding 

as at 30 June 2011: US$331.6 million (30 June 2010: US$366.3 million) equivalent to $309.9 million (30 June 2010: $431.0 

million). Repayment instalments totalling US$33.6 million (30 June 2010: US$36.0 million) equivalent to $31.4 million (30 June 

2010: $42.4 million) are due within 12 months of the reporting date. 

Guaranteed Senior Notes 

On 15 October 2008, Leighton Finance Limited, a wholly owned subsidiary of the Company, issued a total of US$280.0 million 

Guaranteed Senior Notes in three series: 

• Series A Notes: US$111.0 million Guaranteed Senior Notes at the rate of 6.91% maturing on 15 October 2013 

• Series B Notes: US$90.0 million Guaranteed Senior Notes at the rate of 7.19% maturing on 15 October 2015 

• Series C Notes: US$79.0 million Guaranteed Senior Notes at the rate of 7.66% maturing on 15 October 2018 





13. INTEREST BEARING LIABILITIES CONTINUED 

Interest on the above notes will be paid semi-annually on the 15 th day of April and October in each year. Amount outstanding 

as at 30 June 2011: US$280.0 million (30 June 2010: US$280.0 million) equivalent to $260.3 million (30 June 2010: $329.4 

million). 

On 21 July 2010, Leighton Finance (USA) Pty Limited, a wholly owned subsidiary of the Company, issued a total of US$350.0 

million Guaranteed Senior Notes in three series: 

• Series A Notes: US$90.0 million Guaranteed Senior Notes at the rate of 4.51% maturing on 21 July 2015 

• Series B Notes: US$145.0 million Guaranteed Senior Notes at the rate of 5.22 % maturing on 21 July 2017 

• Series C Notes: US$115.0 million Guaranteed Senior Notes at the rate of 5.78 % maturing on 21 July 2020 

Interest on the above notes will be paid semi-annually on the 21 st day of January and July in each year. Amount outstanding as 

at 30 June 2011: US$350.0 million (30 June 2010: US$nil) equivalent to $325.6 million (30 June 2010: nil). 

Medium Term Notes 

Leighton Finance Limited, a wholly owned subsidiary of the Company, issued a total of $280.0 million Medium Term Notes on 

the following dates: 

• 28 July 2009: $230.0 million 

• 12 August 2009: $50.0 million 

The Notes bear interest at the rate of 9.5% and mature on 28 July 2014. 

Other unsecured loans 

Other unsecured loans outstanding as at 30 June 2011: $45.1 million (30 June 2010: $115.5 million). Other unsecured loans 

expected to be settled more than 12 months after reporting date: $7.8 million (30 June 2010: $71.6 million). 

Finance Lease Liabilities 

The Group has leased mining plant and equipment in Indonesia and Australia under finance leases that expire within five years 

of the reporting date. 

Limited Recourse Loans 

The Group has limited recourse property development loans secured against certain property development assets of the 

Group. Amount outstanding as at 30 June 2011: $261.7 million (30 June 2010: $62.0 million). 

Leighton Finance International Notes 

On 16 May 2006, Leighton Finance International Limited (the “Issuer”), a wholly owned subsidiary of the Company, issued 

US$110.0 million of 5-Year Fixed-Rate Guaranteed Notes (“Leighton Finance International Notes”). On 16 May 2011, the 

Leighton Finance International Notes were repaid to Noteholders in full. Amount outstanding as at 30 June 2011: US$nil (30 

June 2010: US$110.0 million) equivalent to $nil million (30 June 2010: $129.4 million). 





14. TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS 

On 11 April 2011 the Company invited its shareholders to subscribe to a rights issue of 33,684,297 shares at an issue price of 

$22.50 per share on the basis of 1 share for 9 fully paid ordinary shares held, with such shares participating in dividends after 30 

June 2011. The issue was fully subscribed resulting in an increase in the share capital of $740.7 million. The amount disclosed 

is net of transaction costs of $17.2 million. 

During the year the company issued 2,144,000 shares to satisfy options issued in 2006 under the Leighton Senior Executive 

Share Option Plan (“LSEOP”) at an issue price of $19.89, resulting in an increase in share capital of $42.6 million. 

15. EVENTS SUBSEQUENT TO REPORTING DATE 

Subsequent to reporting date the Group: 

• on 9 August 2011 signed a Heads of Agreement for the sale of the HWE Iron Ore entities and assets that provide iron ore 

contract mining services to BHP Billiton in Western Australia for a purchase price expected to be around $705 million. The 

sale will enable BHP Billiton to transition from contract mining to an owner operator model. The sale is expected to close 

during the fourth quarter of calendar year 2011. The entities and assets to be sold are presented in the Leighton 

Contractors segment at 30 June 2011; 

• provided a further $10.2 million in cash collateral for amounts drawn by HLG on a loan facility (refer to note 8: Cash and 

cash equivalents); and 

• provided a further interest bearing loan of $38.1 million to HLG (refer to note 9: Investments accounted for using the 

equity method). 



2010/11 

JUNE QUARTERLY UPDATE 

TO 30 JUNE 2011 / ISSUED 15 AUGUST 2011 


ABN 57 004 482 982 

472 Pacific Highway St Leonards NSW 2065 

T +61 2 9925 6666 F +61 2 9925 6000 www.leighton.com.au

Financial Highlights 

30 June 2011 30 June 2010 % 

$M $M Change 

Revenue - Group 15,561.3 14,559.6 7 

- Joint ventures and associates 3,815.4 4,082.5 (7) 

Total Revenue 19,376.7 18,642.1 4 

New contracts, extensions & variations 26,065.0 23,476.1 11 

Value of work in hand # 46,225.8 41,540.7 11 

Profit/(loss) before tax (490.9) 842.6 (158) 

Income tax benefit/(expense) 85.2 (227.5) 137 

Profit/(loss) after tax (405.7) 615.1 (166) 

Profit/(loss) attributable to minority interests 3.1 3.1 -- 

Profit/(loss) attributable to members (408.8) 612.0 (167) 

Earnings per ordinary share (133.1)¢ 204.6¢ (165) 

Dividends per ordinary share 60.0¢ 150.0¢ (60) 

Total capital and reserves 2,319.9 2,568.1 (10) 

Total assets 9,800.2 8,765.8 12 

Cash and cash equivalents 1,414.7 1,313.7 8 

Interest bearing liabilities 1,826.5 1,670.3 9 

Undrawn loan and guarantee facilities 1,191.7 1,318.6 (10) 

# 

Includes the Group’s share of Joint Ventures and Associates 

Key Performance Indicators for the 12 month periods to 30 June 2011 

900 

700 

20,000 

48,000 

800 

700 

600 

500 

600 

500 

400 

16,000 

42,000 

36,000 

400 

300 

300 

200 

12,000 

30,000 

200 

100 

0 

-100 

' 

06/7 07/8 08/9 09/10 10/11 

100 

0 

-100 

06/7 07/8 08/9 09/10 10/11 

8,000 

24,000 

18,000 

-200 

-300 

-400 

-500 

-200 

-300 

-400 

4,000 

12,000 

6,000 

-600 

-500 

0 

0 

06/7 07/8 08/9 09/10 10/11 

06/7 07/8 08/9 09/10 10/11 

$M $M $M $M 

Profit/(Loss) 

Profit/(Loss) 

Total Revenue # Work in Hand # 

Before Tax 

After Tax 

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

Leighton Holdings Limited JUNE 2011 QUARTERLY UPDATE Page 30

June Quarterly Update 

Financial Performance 

For the year ended 30 June 2011, the Leighton Group 

reported a loss after tax and minority interests of $409 

million. Compared to last year’s profit of $612 million, this is 

an extremely disappointing result brought about by a 

number of difficulties and challenges which the Company 

has faced in this financial year. However, the Leighton 

Group maintains record levels of work in hand and 

anticipates a return to satisfactory levels of profitability over 

the next 12 month period. 

The Group’s total revenue, including joint ventures and 

associates, was up 4% to $19.4 billion versus $18.6 billion 

last year. Revenue from joint ventures and associates 

decreased by 7% to $3.8 billion year on year, largely due to 

the completion of a number of joint venture projects and a 

greater level of self perform work. 

The major factors negatively impacting this year’s result 

included the following pre-tax items: 

• An expected loss of $520 million at completion of the 

$4.1 billion Airport Link PPP project in Queensland. 

• An expected loss of $278 million at completion of the 

$3.5 billion Victorian Desalination Project joint venture 

PPP. 

• $100 million loss in Leighton Properties, largely 

attributable to continuing stagnant property markets in 

Australia. 

• Operating losses and impairments totalling $492 

million in the Middle East. 

The overall result was improved to an extent by a number 

of one-off items on a pre-tax basis: 

• The sale of 35% of the Leighton India business to the 

Welspun Group which generated a gain of $259 

million. 

• The sale of the 5% interest in the Burton coal mine for 

$35 million which realised a $27 million gain. 

• The consolidation of the investment in Devine (after 

increasing our shareholding to 50.06%) which resulted 

in a one-off $101 million gain. 

• A positive ruling from the Australian Taxation Office 

(ATO) on deductible R&D resulting in the release of 

$76 million in tax credits. 

Currency 

The high value of the Australian dollar, relative to the US 

dollar, impacted the contribution from offshore earnings, 

revenue and work in hand. 

During the year, the Australian dollar continued to rise 

against the US dollar. The average rate for 2011 results 

was $1.00 compared with 85 cents for 2010. On an 

equivalent exchange rate basis for the full year 

comparison, operating profit after tax and minority interests 

for offshore operations would have been $15 million higher. 

Similarly, offshore revenue would have been around $1 

billion higher. However, the high Australian dollar was 

beneficial in terms of borrowings, plant purchases from 

offshore vendors, and some materials purchases. 

Tax 

The Company recorded a tax benefit for the year of $85 

million. No tax benefit arises in relation to segment losses 

in the Habtoor Leighton Group. The review by the ATO of 

the Group’s claim under the R&D concession has been 

resolved and net $76 million has been recognised as a 

benefit in the current year. For the year to 30 June 2011, 

the total tax paid was $274 million. 

Dividend 

The directors confirmed that no dividend will be paid for the 

second half of FY2011, compared with 85 cents per share 

for the previous corresponding period. As a result, the full 

year dividend will remain at 60 cents per share (versus 150 

cents per share last year). 

Whilst the directors remain supportive of a payout ratio 

between 60% and 70%, reinstatement of a dividend will 

depend on the Group delivering significantly improved 

results in the coming year. 

Work in Hand 

Work in hand for the Group at 30 June 2011 increased by 

11% to a record $46.2 billion, with 69% in Australia and 

New Zealand and 31% in offshore markets. This compares 

with $41.5 billion for the previous financial year and $45.6 

billion at the half year. The strong Australian dollar 

negatively impacted the value of work in hand by 

approximately $3 billion. 

The Group’s order book was replenished with the award of 

$21.7 billion in new contracts and $4.3 billion in extensions 

and variations. Based on current revenue levels, the burn 

rate for work in hand stands at approximately $1.6 billion 

per month. Contracts beyond five years that are not 

included in work in hand currently stand at $9 billion. In 

addition, there is approximately $7 billion in contracts 

where Leighton Group companies have preferred tenderer 

status, and a further $10 billion in current tenders which are 

highly likely to be awarded in the next 12 months. 

Margin in hand, the theoretical profit in the Group’s work in 

hand before overheads, tax and depreciation, remained in 

excess of 10% at the project level. 

Balance Sheet 

The Group continues to maintain a strong balance sheet 

which is essential to support contracting operations through 

the funding of bonds and guarantees, provision of working 

capital, and significant investments in plant and equipment. 

In April 2011, the company completed a major review of its 

operations and assets which resulted in a significant 

downward revision of its FY2011 financial year forecasts. 

Subsequently, Leighton took steps to strengthen its 

balance sheet in anticipation of significant cash outflows in 

FY2012 on the Airport Link and Victorian Desalination 

projects, and to cover deterioration in investments in the 

Middle East and the Australian property market. 


The Company raised $758 million in equity via an 

accelerated renounceable entitlement offer at an offer price 

of $22.50 per share. Following the completion of the 

institutional and retail offers in May 2011, 33,684,297 new 

shares were issued. In addition, 2,144,000 options were 

exercised during the year bringing the total number of 

ordinary shares on issue to 336,515,596. 

At year end, the Group had a strong capital base with 

shareholder’s equity of $2.3 billion, total assets of $9.8 

billion and debt and finance lease facilities on balance 

sheet of $1.8 billion. 

Cash remained high at $1.4 billion. Cash generated from 

operating activities was $1.7 billion. Primary uses of cash 

during the year were dividends of $437 million, loan 

repayments totalling $207 million, shareholder loans to the 

Habtoor Leighton Group (HLG) of $301 million, and plant 

and equipment purchases of $1.4 billion. 

Gross debt, including recourse and non-recourse loans, 

stood at $1.8 billion at 30 June 2011. The average interest 

rate for the year was 6.4%. The Group’s debt maturity 

profile remains relatively long-term in nature with $271 

million of loans falling due in the next 12 months. 

In July 2010, the Group completed a US$350 million 

private placement and, in December 2010, the Group’s 

syndicated working capital facility was increased from $520 

million to $600 million and the maturity date extended to 

December 2013. In May 2011, the 5-year US$110 million 

Indonesian Note was redeemed and, subsequent to year 

end, a new US$113 million finance lease facility was put in 

place in July 2011 to fund expansionary capex in our 

Mongolia operations. 

Bonds and guarantees at financial year end totalled $3.96 

billion, up 12% and in line with increased levels of 

construction work. Of the total, $436 million was undrawn 

which provides substantial headroom. 

The consolidation of Devine Limited, Hamilton Harbour and 

Townsville joint ventures resulted in an increase in cash by 

$23 million, debt by $255 million and total assets by $683 

million. 

Plant and equipment remained a significant area of 

expenditure. A major focus on plant purchases and plant 

utilisation by operating companies commenced during the 

year and is expected to deliver results over the next 12 

month period. 

During the year, new plant worth $1.1 billion was 

purchased with an additional $310 million for major 

component parts. Depreciation for plant and equipment 

was $848 million including $324 million for major 

component parts. 

The Group’s combined fleet is now worth approximately 

$3.3 billion, with $2.1 billion owned, an additional $344 

million under finance leases and $870 million under 

operating leases. 

Gearing, including operating leases, decreased from 38% 

at 30 June 2010 to 35% at 30 June 2011. 

The Group targets a gearing range between 35 and 45%, 

including operating leases. This is a management target 

designed to maintain a balance between the Group’s 

various operations, some of which are more capital 

intensive than others. From time to time the Company 

expects to temporarily exceed the limits of this range. It is 

important to note that this gearing target does not reflect 

the overall capacity of the balance sheet or the Group’s 

banking covenants, which has additional borrowing 

capacity and headroom. 

The Company’s credit rating from Standard & Poor’s is 

BBB with the rating on credit watch with negative 

implications. Moody’s has recently reaffirmed the 

company’s Baa1 rating with a negative outlook. 

Investments, Acquisitions and Sales 

During the year, the Group announced it would undertake a 

review of all listed and unlisted investments and determine 

their strategic value to the Group. This review has been 

substantially completed and already some asset sales 

have been concluded. 

The sale of 35% of Leighton India to the Welspun Group in 

December 2010 realised a pre-tax one-off gain of $259 

million and included US$105 million in cash. The after tax 

impact was $202 million. The Group’s stakes in the Indore 

and Agra toll-roads in India were sold to our joint venture 

partner, Oriental Structural Engineers, for approximately 

US$40 million which was in line with book value. 

Thiess and John Holland sold their 3.3% stake in 

ConnectEast on market in December 2010 for a profit of 

$16 million. 

As part of the wind down of JF Infrastructure, 50% of the 

shares it held in RiverCity Motorway were transferred to 

Leighton Contractors increasing its share from 8.4% to 

13.7%. In February 2011, voluntary administrators were 

appointed to RiverCity Motorway. Leighton Contractors 

investment in RiverCity has been written down to zero. 

The Group’s 45% investment in the Habtoor Leighton 

Group was affected by impairments totalling $287 million, 

exchange rate movements and operating losses. During 

the year, the carrying value of this investment was 

progressively reduced from US$973 million to US$508 

million. 

Thiess sold its 5% stake in Burton coal to Peabody Energy 

for $35 million in June 2011 which realised a pre-tax gain 

of $27 million. 

Leighton increased its stake in Devine from 49.7% to 

50.06% and consolidated the subsidiary at 30 June 2011. 

This resulted in a one-off gain of $101 million pre-tax. 

Governance 

David Stewart was appointed CEO on 1 January 2011 

following Wal King’s retirement from the position. In 

November 2010, Stephen Sasse was appointed General 

Manager Organisational Strategy. In April 2011, Deputy 

CEO Bill Wild announced his retirement from the company 

and in June 2011, Craig van der Laan was appointed Chief 

Risk Officer and Group General Counsel. As at 30 June 

2011, the Senior Executive Team comprised David 

Stewart, Chief Executive Officer; Peter Gregg, Chief 

Financial Officer; Craig van der Laan, Chief Risk Officer 

and Group General Counsel; and Stephen Sasse, General 

Manager Organisational Strategy. 


Leighton International was further restructured in April 2011 

to facilitate a better span of control and consistency across 

the various geographic regions and timezones. Hamish 

Tyrwhitt, Managing Director of Leighton Asia, has assumed 

responsibility for India, Malaysia and the Offshore Oil and 

Gas operations of Leighton International. Laurie Voyer, 

Managing Director of HLG, is now also responsible for 

operations in Africa. Since year end, David Saxelby, 

Managing Director of Thiess, announced his intention to 

leave the Group later this calendar year. Bruce Munro, 

currently Thiess’ Chief Executive Mining, will fill the role of 

acting Managing Director until a formal appointment is 

made. 

A number of changes occurred at a Board level during the 

financial year. Wal King resigned from the Board and was 

replaced by David Stewart. Dieter Adamsas retired from 

the Board in November 2010 and Peter Gregg was 

appointed to the Board in December 2010. Dr Herbert 

Lutkestratkotter and Dr Peter Noe, both HOCHTIEF 

executives, resigned from the Leighton Holdings Board. Dr 

Lutkestratkotter was replaced by Dr Frank Stieler, the new 

CEO of HOCHTIEF, in May 2011. As at 30 June 2011, the 

Board comprised three HOCHTIEF directors, two Leighton 

executive directors, and six independent directors including 

the Chairman, David Mortimer AO. 

During the year, the Group’s major shareholder HOCHTIEF 

was the subject of a takeover by ACS. During June 2011, 

ACS announced it had secured control of more than 50% 

of HOCHTIEF voting share, and that HOCHTIEF would 

continue to control the investment in Leighton. Leighton 

senior executives have met with both HOCHTIEF and ACS 

representatives who remain closely aligned with Leighton 

on the Company’s strategic and financial goals. 

Safety, Workforce and Environment 

At 30 June 2011, the Group directly employed 51,281 

people (up from 45,340 in 2010) including 581 graduates 

and 1,169 trainees/apprentices. 

Safety remains the Group’s most fundamental operational 

priority. The Company believes that if participants in the 

construction procurement chain - clients, designers, 

contractors, and employees - all play their role in ensuring 

workplace safety, all fatalities and permanent disabling 

injuries can be prevented. Leighton Holdings’ safety 

objective is to eliminate these incidents and to 

systematically reduce all other injuries across its 

operations. 

A new safety function has been established at Leighton 

Holdings with the aim of establishing an audit and 

assurance program that delivers the benefits of sharing 

learnings and best practices. 

The Group’s Lost Time Injury Severity Rate (LTISR), which 

is measured per million hours worked, increased from 27.7 

to 28.8 for our Australian operations and decreased from 

0.8 to 0.6 in our international operations. LTISR is an 

indicator of the severity of the lost time injuries that occur 

and is a measure of the average number of days lost per 

lost time injury. 

The Group’s Lost Time Injury Frequency Rate (LTIFR) 

which is measured per million hours worked increased from 

1.6 to 1.8 in our Australian operations and decreased from 

0.8 to 0.6 in our international operations. From FY2012 

Leighton Holdings will no longer collate or report LTIFR as 

the Company believes that it is an ineffective indicator of 

performance and its use drives underreporting. Consistent 

with the Company’s ongoing commitment to a proactive 

approach to safety, a broader range of indicators will be 

introduced to provide a clear picture of performance, to 

encourage a ‘blame free’ culture, and to provide insight and 

lessons from hazards and near misses 

Potential Class 1 and Actual Class 1 incidents have 

decreased in our Australian operations but increased in our 

international operations. It is clear from the data that the 

objective of eliminating fatalities and permanent disabling 

injuries has not yet been realised. There were four fatalities 

within the Group in the past year. One occurred within our 

Australian operations and three occurred within our 

international operations. 

These four fatalities demonstrate that there is still work to 

be done to improve safety performance across the Group. 

Many of the features developed as part of the new 

structure and process in FY2011 have already been 

implemented and are expected to drive a further step 

change in safety performance. 

Industrial relations in Australia is an emerging issue. 

Labour productivity is declining and there is an urgent need 

to review and assess the effectiveness of the construction 

industry’s industrial relations framework, including the Fair 

Work Act, the operation of the ABCC and the 

Commonwealth Government’s Code of Practice 

In FY2011, Leighton Holdings developed an environmental, 

social and governance strategy endorsed by the Board of 

Directors which addresses the priority issues and 

underpins the Group’s business strategy. Two Level 1 

environmental damage incidents were reported in our 

Australian operations, both at Thiess operations during the 

Queensland floods. There are no expected prosecution or 

penalties arising from these incidents. 

The Federal Government’s proposed carbon pricing 

scheme is due to start on 1 July 2012. The Company 

estimates the potential direct liability under the proposed 

scheme will be $7.4 million in 2012/13, based on an 

expected 2-4% annual compound rate of increase in the 

Group’s scope 1 greenhouse gas emissions on projects 

over which Group companies have operational control. The 

most significant impact of the Clean Energy Future 

package will be from the cut to fuel tax credits (FTC), which 

are currently worth more than $110 million a year to the 

Australian operating companies. It is estimated that the 

cuts will reduce the amount of FTC claimed by about $20 

million a year from 2012/13. The Group is currently 

working through the draft Bills to determine any further 

impacts. 

Operational Performance 

The Group made a loss before tax of $491 million which 

represents a significant turnaround from last year’s profit 

before tax of $843 million. 

Revenue for the year totalled $19.4 billion with $16 billion 

coming from Australia and New Zealand and $3.4 billion 

from offshore. The major revenue generating markets for 

the Group were infrastructure $10.7 billion, resources $7.4 

billion and property $1.3 billion. Group companies provided 

a range of services to these markets including construction 

$12 billion, contract mining $5.2 billion, and services $2 

billion. 


The poor financial performance of the Airport Link and 

Victorian Desalination PPP projects, along with the slow 

recovery in property markets, overshadowed an otherwise 

solid performance across construction, contract mining and 

services projects in Australia and the near Pacific region. 

Hong Kong, Indonesia, India, Mongolia and the Offshore 

Oil & Gas operations all made strong contributions to the 

Group’s result. 

Leighton Contractors 

Good performances across all divisions ensured another 

strong result from Leighton Contractors. 

Leighton Contractors earned a segment result of $323 

million before tax for the financial year, up 19% versus 

$271 million in the year to 30 June 2010. This was 

achieved on segment revenue of $6.2 billion, up 17% on 

the $5.3 billion recorded in 2010. 

The company’s work in hand rose by 10% to $10.8 billion 

at 30 June 2011 versus $9.8 billion for the previous 

financial year. Leighton Contractors had reportable 

segment assets of $2.3 billion compared with $1.9 billion 

for the previous year. 

Transport infrastructure, resources-related infrastructure, 

power and energy, and contract mining provided the bulk of 

the new work won in the financial year to June 2011. 

During the year, Leighton Contractors secured over $1 

billion of new road contracts. Good progress was made on 

the $467 million M2 Hills Motorway upgrade in New South 

Wales and the $120 million upgrade of the M80 Ring Road 

in Victoria. In Western Australia, work commenced on the 

$229 million Great Eastern Highway alliance project and, in 

March 2011, the company secured a five-year, $191 million 

joint venture contract with Opus International Consultants 

to deliver road improvement and maintenance services in 

the Wheatbelt region. 

In Queensland, the Eastern Busway Stage 2 neared 

completion and, in New South Wales, the Ballina Bypass 

and Kempsey Bypass projects continued to make good 

progress. The upgrade of the Sapphire to Woolgoolga 

section of the Pacific Highway has been impacted by wet 

weather. 

Leighton Contractors’ rail projects in New South Wales, 

Victoria and Queensland continued as expected and were 

not unduly affected by the extreme weather events along 

the east coast. The company did secure some minor flood 

remediation work in the rail sector in Queensland. The 

RGP5 rail project, in joint venture with Macmahon, was 

completed during the period. 

For some time, Leighton Contractors has been active in the 

health sector, both from a construction and facilities 

management perspective. In June 2011, the SA Health 

Partnership, led by Leighton Contractors, reached financial 

close on Australia’s largest health PPP. The design and 

construction of the $1.85 billion New Royal Adelaide 

Hospital, the most advanced facility of its type in the 

country, is a joint venture contract with Hansen Yuncken. 

Leighton Contractors is also a sponsor of the project and 

will invest $68.1 million for a 19.9% equity stake payable in 

2014. 

Other major construction projects won during the year 

include a $113 million contract to construct the Enfield 

Intermodal Logistics Centre for the Sydney Ports 

Corporation, and $113 million to design and construct the 

new Botany Paper Mill for Amcor. 

In the power and energy sector, Leighton Contractors 

secured over $500 million in new work including the $291 

million Macarthur wind farm in Victoria, and is part of a 

consortium to construct the $73 million Mumbida wind farm 

in Western Australia. 

Leighton Contractors’ Telecommunications Division saw 

strong year-on-year growth in revenue and profit and 

reported its best ever financial results. 

Visionstream, a 100% subsidiary, performed well on $165 

million worth of contracts for Telstra across New South 

Wales and Victoria. Progress on the 10-year, NZ$1 billion 

contract to provide telecommunications field services in the 

Auckland and Northlands regions of New Zealand 

continued to meet expectations. Visionstream is currently 

finalising its arrangements with Chorus for the country’s 

Ultra Fast Broadband (UFB) and Regional Broadband 

Initiative (RBI) deployments. Visionstream is also seeing 

continued growth in its intelligent network services area 

with involvement in the New Royal Adelaide Hospital and 

growing demand in the resources sector for both fibre optic 

and wireless infrastructure. 

Nextgen Networks, Australia’s third largest fibre optic 

telecommunications network, offers a range of services to 

corporate, government and wholesale clients. Nextgen 

continued the rollout of the $250 million Regional 

Backbone Blackspots Program which is more than 50% 

complete. 

Data centre business Metronode and new hosting and 

cloud services business Infoplex, also delivered solid 

performances. Leighton Contractors has made further 

investment in these telecommunications growth areas and 

has announced the establishment of new generation 

“BladeRoom” data centres in Melbourne and Perth which 

will complement established data centres in these cities. 

Plans were also announced to develop a new 

telecommunications submarine cable between Perth and 

Singapore known as “ASC” via the 100% owned subsidiary 

Australia-Singapore Cable (International) Limited. The 

cable will have initial capacity of 6.4 Tera bits per second, 

expandable to 16 Tera bits per second. The first phase, 

involving detailed design, route survey and permit 

application, is already underway. The second phase, 

subject to final Board approval and securing the necessary 

permits, involves construction and is expected to 

commence in the first quarter of 2012. 

Resources related infrastructure continued to be a key 

driver of construction work in Australia. Leighton 

Contractors was awarded a $814 million contract to 

undertake civil and underground services for Chevron on 

the Gorgon project in September 2010. This is in addition 

to the $768 million jetty and marine works project secured 

the previous financial year. Both projects are now 

underway and remain on track despite a number of unique 

challenges, particularly in logistics and marine operations. 

Contract mining volumes and opportunities remained 

strong in Western Australia, although production at some 


coal mines in Queensland was affected by the heavy rains 

between November and January. 

In Queensland, work commenced on stage 2 of the Poitrel 

coal mine for BHP Mitsui Coal in Queensland worth $225 

million over 3 years, and phase 1 of the Dawson coal mine 

for Anglo Coal worth $155 million over two years. 

The high price of gold has stimulated mining activity in that 

sector and two new projects were secured - a $206 million 

contract for Newcrest at Telfer gold mine near Port 

Hedland in Western Australia and a $122 million contract 

for Crocodile Gold at Cosmo Deep in the Northern 

Territory. 

Since year end, the potential sale of the HWE Iron Ore 

entities and assets in Western Australia, wholly owned by 

Leighton Contractors, to BHP Billiton Iron Ore was 

announced. The purchase price, subject to working capital 

adjustments and final documentation, is expected to be 

around $705 million. Subject to due diligence, definitive 

agreements and relevant internal and regulatory approvals, 

the sale is expected to close during the fourth quarter of 

the 2011 calendar year. 

Commercial building opportunities remained limited due to 

market conditions. Work progressed well on the 

Queensland University of Technology’s new Science and 

Technology Precinct and Community Hub project, and the 

111 Eagle Street development is nearing completion. 

In New Zealand, the Manukau Motorway project was 

completed and the Newmarket Viaduct is nearing 

completion. Work continued on the $48 million contract to 

refurbish the Wellington Tunnels. 

Thiess 

Thiess’ financial results were heavily impacted by the poor 

financial performance of the Airport Link and Victorian 

Desalination projects, and extreme weather conditions in 

Queensland, Victoria and Indonesia. 

Thiess reported a segment loss for the year to 30 June 

2011 of $318 million, compared to a $425 million segment 

profit reported in June 2010. Segment revenue for the full 

year was steady at $6.6 billion. 

Thiess’ work in hand rose by 1% to $16.5 billion at 30 June 

2011 versus $16.3 billion for the previous year. At 30 June 

2011, Thiess had reportable segment assets of $1.5 billion 

compared with $2 billion for the previous year. 

The Thiess John Holland Joint Venture constructing the 

Airport Link project made good progress working through 

the access, design and engineering challenges facing the 

$4.1 billion PPP project. 

Tunnel boring machine (TBM) operations are now 100% 

complete and the remaining design issues have been 

finalised. The mechanical and electrical fit-out is well 

underway and overall the project is now around 80% 

complete. 

Discussions with the Queensland government on 

arrangements for the tunnel opening have been productive, 

and the Thiess John Holland Joint Venture is confident of 

having traffic on the road by the contractual date of 30 

June 2012. The project’s gross loss has been reduced from 

$730 million to $520 million as a result of no longer 

needing to provide for liquidated damages and time related 

costs that would have applied for late completion. 

The Joint Venture is currently pursuing a substantial 

number of claims, resolution of which is expected to occur 

over 2012-2014. 

The performance of Thiess’ other major PPP project, the 

Victorian Desalination Plant, a $3.5 billion joint venture, 

deteriorated further in the period from April to June 2011. 

The project lost a significant amount of time on the critical 

path due to poor weather and productivity issues. 

As a result, the overall timeframe is under pressure and the 

30 June 2012 completion target is at risk. Provisions have 

been made and actions taken to mitigate the potential late 

completion. Thiess has reforecast their project result from a 

profit of $6 million to a projected loss of $278 million. 

Thiess has also appointed a new project director and 

senior human resources and industrial relations staff. 

All other major construction projects in Thiess’ portfolio 

were performing to expectations and remained profitable. 

Transport projects, such as the $583 million M80 Ring 

Road upgrade in Victoria and the $757 million Hunter 

Expressway alliance in New South Wales made good 

progress, as did the $214 million Seaford to Adelaide rail 

link. 

Telecommunications projects continued to emerge and 

Silcar, a 50:50 joint venture between Thiess Services and 

Siemens, secured the first major rollout contract under the 

Federal Government’s National Broadband Network (NBN) 

program. The contract is worth $373 million over the next 

two years with $279 million attributable to Thiess Services, 

with an option of a further two years at an additional value 

of approximately $740 million. Silcar is also providing 

network integrity and facilities management services to 

Telstra for five years under a $350 million contract with 

$175 million attributable to Thiess Services. 

Renewal of power transmission networks across eastern 

Australia has created a number of long-term alliance 

opportunities. A Thiess-led alliance secured a five-year 

$202 million contract with Ausgrid in New South Wales for 

the rollout of a new transmission cable. Earlier in the year, 

Thiess Services secured a number of maintenance 

contracts for Ergon and Energex in Queensland. 

The global demand for commodities and energy continued 

to produce contract mining opportunities and resourcesrelated 

infrastructure work both in Australia and offshore. 

Thiess secured six major mining contracts during the year 

worth over $7.7 billion, including a $1.3 billion extension at 

the Burton coal mine for Peabody Energy, a $182 million 

variation at the Collinsville coal mine for Xstrata, and a 

$145 million joint venture at Lake Vermont in Queensland. 

In New South Wales, the company was awarded a $1 

billion contract at Mt Owen coal mine for Xstrata and a 

$220 million extension at the Wilpinjong coal mine for 

Peabody Energy. 

In India, the Thiess-Minecs joint venture (90% Thiess) 

secured a landmark $4.9 billion contract over 22 years at 

the Pakri Barwadih coal mine for NTPC. Revenue over the 

first five years is estimated at $354 million. 


Production at existing mines in Queensland and Indonesia 

was affected by extremely high rainfall between November 

2010 and January 2011. 

Resources-related infrastructure was a major source of 

revenue and new work. Progress on the Gorgon village 

and site preparation projects for Chevron in Western 

Australia was slower than expected, due to a range of 

factors outside Thiess’ control. Thiess has since negotiated 

variations and extensions of time for both contracts and 

project performance is within these new parameters. Also 

in Western Australia, Thiess won a $210 million contract to 

provide bulk earthworks and selected infrastructure for 

BHP Billiton Iron Ore’s Jimblebar mine as part of their 

RGP6 expansion. 

In Queensland, Thiess was awarded a $147 million 

contract for upstream coal seam gas infrastructure works 

for QGC. This is a significant contract as it represents a 

firm foothold in a fast growing sector of the LNG industry. 

No significant new building projects were secured during 

the year, but work proceeded to schedule on the $736 

million Royal North Shore Hospital redevelopment in 

Sydney, with some buildings handed over, and the $97 

million Townsville Hospital Expansion. The $123 million 

King George Central development for Leighton Properties 

made good progress, despite interruptions from the 

Brisbane floods in January, and the $376 million Lotus 

Glen correctional centre in Queensland is nearing 

completion. 

Waste management services suffered a setback in January 

as the Queensland floods inundated the Rocklea Transfer 

Station transfer pit, offices and workshops. The facility was 

quickly reopened for business and the offices have since 

been rebuilt. In June, Thiess Services announced $203 

million in new waste contracts along Australia’s east coast. 

John Holland 

The poor financial performance of the Airport Link project 

severely impacted John Holland’s profit contribution for the 

full year. However, the company has secured a strong level 

of new work and work in hand is at historically high levels. 

John Holland recorded a segment loss of $255 million for 

the full year to June 2011, versus $180 million profit in the 

year to June 2010. Full year segment revenue remained 

steady at $3.7 billion. 

John Holland’s work in hand increased by 45% to $7.7 

billion at June 2011 versus $5.3 billion at June 2010. The 

company had reportable segment assets of $848 million at 

30 June 2011 compared with $877 million for the previous 

year. 

Whilst the financial performance of the Airport Link project 

in Brisbane has been unacceptable, the travelling public 

will benefit from a world class piece of infrastructure. The 

final stretch of the 15 kilometre tunnel system, the 5.1 

kilometres of twin bored tunnels, was successfully 

completed in July 2011. The tunnel boring machines were 

entombed in a specially constructed chamber giving full 

and immediate access to the tunnels for the mechanical 

and electrical fitout. The Thiess John Holland Joint Venture 

is confident of having traffic on the road by the contractual 

completion date of 30 June 2012. 

Tunnelling work remained a key part of John Holland’s civil 

engineering capabilities. New tunnelling projects included 

the Sungei Road Station and Associated Tunnels in 

Singapore, a US$122 million joint venture with Leighton 

Asia, and the US$237 million Lei Tung and South Horizon 

Stations and Tunnels in Hong Kong, also a joint venture 

with Leighton Asia. The $282 million Northern Sewage 

Project Stage 1 and the $166 million sewer replacement 

project in Melbourne all progressed well during the year. 

Rail construction and maintenance continued to be one of 

the major revenue sources for John Holland. During the 

year, the company was awarded a contract estimated at 

$1.5 billion over 10 years to operate and maintain the New 

South Wales Country Regional Network and the first five 

years has been valued at $598 million. Also in New South 

Wales, John Holland won a $568 million contract to design 

and construct the Glenfield to Leppington rail link (South 

West Rail Link). In Western Australia, the $339 million 

Perth City Link rail project was awarded to a John Hollandled 

alliance, and the company secured $102 million in 

contracts for the Midwest Rail Upgrade and the Kalgoorlie 

to Esperance Track Upgrade projects. 

The $281 million alliance contract for rail works between 

Maitland and Whittingham, New South Wales, made good 

progress, as did the $261 million South Morang Rail 

Extension project in Victoria. 

The financial and operational performance of Metro Trains 

Melbourne, which has a $7 billion contract to operate and 

maintain Melbourne’s metropolitan passenger train 

franchise, has achieved financial results forecast at time of 

tender. Performance is now at a level not experienced 

since 2005, and new timetable structures and services 

have been introduced. 

John Holland was also successful in securing a number of 

opportunities in other sectors, particularly health, water, 

roads and defence. In health, highlights include the $105 

million Sunshine Coast Private Hospital in Queensland, the 

management contract for the $800 million New Children’s 

Hospital in Perth, and $152 million to design and construct 

the Albany Health Campus, also in Western Australia. 

Major water-related projects secured during the year 

include the $97 million upgrade of the Murrumbidgee 

Irrigation Network in New South Wales, and a US$561 

million joint venture with Leighton Asia and Veolia to 

construct a sludge treatment facility in Hong Kong. The 

$488 million joint venture to construct water infrastructure 

in Canberra remained on schedule. 

Work commenced on a $545 million contract to deliver a 

new 4.8 kilometre highway corridor in South Australia, 

including 2.8 kilometres of elevated roadway, and a $110 

million contract to construct facilities and supporting 

infrastructure at Singleton, New South Wales, for the 

Department of Defence. 

A wide variety of energy and resources related 

infrastructure contracts were won including the $299 million 

Cape Lambert Marine Facility for Hamersley Iron in 

Western Australia, four contracts worth a total of $375 

million to construct marine offloading and LNG export jetty 

facilities for both Santos’ GLNG and BG’s QCLNG projects 

in Gladstone, and a $183 million contract to design and 

construct the permanent buildings on the Chevronoperated 

Gorgon project in Western Australia, which is due 

to commence in late 2011. 


Mining services is a relatively new market for John Holland, 

and the company secured two significant contracts during 

the year including a $156 million three-year contract at 

Anglo Coal’s Lake Lindsay and Oak Park operations near 

Middlemount, Queensland, and a $349 million open cut 

mining contract at the Jellinbah coal mine in Queensland. 

Leighton Asia 

Leighton Asia earned a segment result of $70 million for 

the financial year to 30 June 2011, down 21% on the 

previous year’s result of $88 million. Segment revenue for 

the year was $1 billion, which was down 10% versus $1.1 

billion at 30 June 2010. 

Leighton Asia’s work in hand rose by 10% to $6.6 billion at 

30 June 2011, versus $6 billion at June 2010. At year end, 

Leighton Asia had reportable segment assets of $801 

million compared with $672 million of assets in the previous 

year. 

The main sources of revenue remained Hong Kong, 

Indonesia and Mongolia. Hong Kong’s ongoing investment 

in infrastructure continued to gain momentum and Leighton 

Asia was successful in securing a significant share of work. 

Rail infrastructure was a strong source of new work, and 

new contracts included the US$278 million Kowloon 

Terminus Approach Tunnel joint venture (part of the 

Express Rail Line from Hong Kong to China), the $US237 

million Lei Tung and South Horizons Stations and Tunnels, 

and the US$322 million Ocean Park and Wong Chuk Hang 

Station; all for Hong Kong’s Mass Transit Rail Corporation. 

Work on the US$259 million Central Reclamation Phase 3 

project remained on schedule and, in September 2011, the 

company won a US$163 million road contract for the 

Central-Wanchai Bypass – Central Interchange project. 

Work commenced on the largest sludge treatment 

incineration facility ever built, a US$561 million joint 

venture between Leighton Asia and John Holland, and a 

US$42 million gas supply project also made a good start. 

Other major projects, such as the US$196 million North 

Lantau hospital in Hong Kong, made good progress. 

Leighton Asia also secured its first contract in Singapore 

for the Land Transport Authority. The US$122 million 

Sungei Road Station and Associated Tunnels will be 

constructed in joint venture with John Holland. 

Growth in Mongolia was sustained by strong global 

demand for bulk commodities and energy. The company 

continued to grow its mining and infrastructure work and 

production volumes from the major coal mines operated by 

Leighton Asia - UHG and Khushuut - increased in line with 

current plans. 

Mining in Indonesia experienced some difficulties during 

the year due to abnormally high rainfall, which impacted 

production. However, high global prices saw a number of 

new contracts and extensions awarded, including a 

US$168 million, 65-month contract at the Martabe gold 

mine. 

Leighton International 

Leighton International earned a segment result of $299 

million, including the sale of 35% of Leighton India to the 

Welspun Group, for the financial year to 30 June 2011. The 

previous year’s result was $60 million. Segment revenue 

for the year was $840 million, up 30% compared with $644 

million at 30 June 2010. 

Leighton International’s work in hand remained steady at 

$1.2 billion at 30 June 2011. At year end, Leighton 

International had reportable segment assets of $453 million 

compared with $523 million in the previous year. 

In April 2011, it was announced that Leighton International 

would be disbanded from 30 June 2011. Its construction 

operations in Malaysia, India and the Offshore Oil and Gas 

business are now aligned with Leighton Asia’s operations 

to improve operational efficiencies and span of control. 

Operations in Africa are now aligned with the Middle East. 

The formation of Leighton Welspun Contractors India Pvt 

Ltd, via the sale of 35% of Leighton India to the Welspun 

Group, was a significant milestone as it gives the company 

better access to pursue construction opportunities within 

the growing range of PPP-style projects, particularly in the 

transport sector. Welspun is a logical partner as they are 

experienced in construction and are keen to invest in 

infrastructure for the long-term. 

Work commenced on the US$587 million Chenani Nashri 

road tunnel, which will be India’s longest road tunnel when 

completed in 2015. The world-class Ramuanujan IT Park in 

Chennai reached a significant milestone with the 

commencement of handover of the first building space 

achieved. 

Other major milestones in India included the successful 

completion of the US$693 million Pipeline Replacement 2 

project for India’s Oil and Natural Gas Corporation, 

offshore Mumbai, and the successful completion of 

ONGC’s G1-GS15 Platform installation and hookup project. 

The India business also secured ongoing work with ONGC 

to carry out upgrade of the Water Injection North Platform. 

Leighton Offshore currently has two projects underway in 

Iraq and Tanzania and is actively targeting a range of 

additional projects in the offshore oil and gas construction 

market in the Middle East, South East Asia and Australia, 

and Africa. 

During the year, the offshore division secured a contract 

worth US$799 million for engineering, procurement and 

construction of three single point moorings and 120 

kilometres of pipeline in the Arabian Gulf, off the coast of 

Iraq. Work commenced in October and the project is due to 

be completed in the first half of 2012. 

The Offshore business is targeting a combination of 

Engineering, Procurement, Construction, Installation & 

Commissioning (EPCIC) contracts for Greenfield and 

Brownfield projects and Life of Field Services (LOFS) 

contracts. 

Oil and gas price expectations are crucial to final 

investment decisions on major infrastructure projects. 

Market conditions have picked up in FY2011 due to 

stronger expectations of future oil and gas prices which are 

encouraging further exploration of emerging assets. In the 

next five years more than US$80 billion is forecast to be 


invested in the offshore construction market in Leighton’s 

targeted regions. 

In April 2011, De Beers awarded a US$587 million 66- 

month mining contract at the Debswana diamond mine in 

Botswana to a joint venture featuring Leighton Africa 

(60%), and local companies Basil Read (20%) and 

Bothakga Burrow Botswana (20%). 

Leighton Africa is focused on pursuing contract mining and 

mine infrastructure opportunities in Botswana, 

Mozambique, Namibia, Zambia and Tanzania. 

Habtoor Leighton Group 

The 45%-owned Habtoor Leighton Group (HLG) reported a 

segment loss of $206 million, excluding impairment 

charges of $287 million, for the year to 30 June 2011, 

compared to the previous year’s segment loss of $36 

million. Segment revenue for the financial year was $847 

million, down 23% on the previous year’s $1.1 billion. 

HLG’s work in hand was $1.8 billion as at 30 June 2011, 

down 27% versus $2.4 billion for the previous year. At year 

end, the carrying value of the investment in HLG was $475 

million compared with $1.1 billion the previous year. 

After a tough two year period, conditions in the Middle East 

markets are showing some signs of recovery. Over that 

time, HLG has made good progress in diversifying its 

business - from being almost a pure Dubai-based builder to 

one of the leading providers of transport and social 

infrastructure across the region. This leaves HLG well 

positioned to capitalise on renewed growth, particularly in 

Qatar, Abu Dhabi and Saudi Arabia. 

The remaining legacy projects in Qatar are approaching 

completion. The Al Shaqab Equestrian Centre main works 

are complete and handed over, and a preliminary account 

has been submitted. The final component of the Doha City 

Centre project should achieve completion in 2012. 

Bidding activity remained high, and HLG currently has over 

US$10 billion of live bids. The award of new projects is 

gradually increasing, driven somewhat by a desire by 

regional governments to provide new and improved 

infrastructure for their citizens. 

During the year, HLG won 10 contracts worth in total more 

than US$1.2 billion. The bulk of this work was in Abu Dhabi 

and includes the US$328 million Khalifa Port, the US$139 

million Qusahwira Building and Services package, the 

US$600 million Al Mafraq Hospital in joint venture with 

Murray and Roberts, and the US$110 million Abu Dhabi 

Islamic Bank headquarters. Both the Zayed University and 

the landmark Capital Gate building project were completed 

and successfully handed over to the clients. 

In Dubai, work on the US$2.4 billion Dubai Pearl project 

proceeded according to schedule. The pace of work is 

relatively subdued as the client works to finalise design, 

financing and leasing arrangements for this massive 

development. Two new projects were won in the Emirate 

during the year, the US$199 million Daman Buildings in 

Dubai’s financial centre, and the US$130 million Jewel of 

the Creek development. 

highest level of certification so it can bid unrestricted in the 

Kingdom. It is currently project managing its first project in 

the Kingdom, the ITCC building, and is bidding a range of 

new opportunities, including a bauxite mine. 

HLG continues to bid for work in other selected countries, 

and is currently targeting projects in Kuwait and Oman. 

Leighton Properties 

Leighton Properties recorded a segment loss of $100 

million for the financial year to June 2011 versus a loss of 

$73 million in the previous financial year. This represents 

final project writedowns on non-core assets. Excluding the 

Green Square development in Sydney, Leighton 

Properties’ total portfolio has an approximate end value of 

$1.8 billion over the next five years. 

The business is focussed on delivery of its existing pipeline 

and securing new projects in the Commercial and Mixed 

Use/Residential sectors of the market which are expected 

to be strong growth areas in the medium term. Good 

progress was made on identifying new opportunities that fit 

within this strategy. 

The Hamilton Harbour Residential Towers 1 and 2, 

comprising of over 470 apartments, are more than 90% 

sold. The project was unaffected by the flooding of the 

Brisbane River earlier in the year and is on target for 

practical completion in November 2011. A third tower, 

Riverside Hamilton, is due to start construction later in 

2011 and is currently more than 50% pre-sold. This mixed 

use/residential development is being undertaken in joint 

venture with Devine and is now consolidated following the 

gaining of control of Devine. 

In the commercial sector, a proposed 45,000 square metre 

development at 567 Collins Street, Melbourne, upgraded 

its sustainability design and is now targeting a 6 Star Green 

Star Office Design rating. In New South Wales, anchor 

tenants were secured for the A-grade Eclipse Tower at 

Parramatta and the project is over 80% leased. 

Construction commenced in December 2010 and the 20- 

storey development is targeting a 5 Star Green Star Office 

Design v2 rating. 

The HQ North Tower in Brisbane is 100% leased and 

recently won the 2011 National Development of the Year 

award from the Urban Taskforce. It was also awarded a Six 

Star Green Star as Built v2 rating which complements its 

already awarded Six Star Green Star Office Design rating. 

It is the largest building in Australia to receive this award 

which represents 'World Leadership' in environmentally 

sustainable design and construction. This project was 

undertaken in joint venture with Leighton Contractors and 

the sale of the North Tower is expected to occur in the 

forthcoming year. 

Leighton Properties has been selected as the preferred 

proponent for two major urban redevelopments in 

Queensland. The Ipswich Town Centre gained momentum 

with the launch of plans for the sale and redevelopment of 

the CBD regional shopping centre as part of the $1 billion 

Ipswich City Heart precinct. Leighton Properties was also 

selected by the Queensland Government as the preferred 

developer of the Boggo Road mixed use precinct in 

Brisbane. 

During the year, HLG received a licence to operate in 

Saudi Arabia and is currently working to achieve the 


In August 2011, Leighton Properties announced a series of 

organisational changes to better focus the business on 

opportunities, clients and stakeholders. Leighton Properties 

will operate on a national basis with two business units – 

Commercial and Residential – supported by a national 

Operations team. The three State-based offices will 

continue as an integral part of this new structure. 

Market Outlook - Australia 

Australia’s economy is expected to operate at close to full 

capacity over the next five years. As investment by the 

public sector declines, the private sector will take over as 

the engine of growth. The mining sector will lead, with a 

new round of investment ramping up from 2011/12 to meet 

China and India’s demand for minerals and energy. 

Australia is expected to continue outperforming its 

advanced economy peers in the medium term, with 

economic growth forecast to be 3% per annum or above. 

Commodity exports and resources-related construction will 

be key drivers, with business investment in other areas 

also rebuilding. 

The key constraint over this period of growth will be the 

supply of labour. The unemployment rate is currently 5% 

and will likely trend down towards a 37-year low of 4% over 

the medium term, potentially imposing labour constraints 

and upward pressure on wages. 

Infrastructure 

Infrastructure activity is estimated to return to trend in 2011 

after an exceptional 2010, largely as a result of the 

investment in the Building the Education Revolution 

running off and the efforts by State Governments to 

balance their budget deficits. State Government budgets 

include $190 billion for capital works over the next four 

years, with more than half expected to be spent in New 

South Wales and Queensland. Public sector investment in 

real terms is expected to be maintained at levels well 

above those of previous decades. 

The Australian non-residential construction market is 

forecast to rise by 5% per year, in real terms, over the next 

four years. The key driver will be resources investment, 

backed by transport infrastructure and utilities construction, 

and a gradual recovery in commercial building. 

Public infrastructure works increased solidly in most States 

during 2010 and growth will now centre on upgrading major 

utilities and large transport projects as social building 

projects decline. A substantial ongoing road program 

supports New South Wales, resources infrastructure will lift 

Western Australia, while flood and cyclone rebuilding will 

add to activity in Queensland. 

Transport sector construction continues to expand after a 

modest setback in 2009/10. Flood repair and 

reconstruction work will boost activity in the near term, 

while big increases in rail and port construction will lift 

activity over the next five years. Additional rail and port 

capacity for the resources sector will be a key driver along 

with improvements to passenger rail networks and 

sustained high levels of road construction. 

Utilities construction is set to continue its recent 

extraordinary growth over the next few years as electricity 

construction edges upwards (through new power 

generation and network upgrades), gas pipeline 

construction surges to its highest level on record (due to 

coal seam gas connections, offshore and onshore pipes 

and domestic network expansions) and telecommunication 

construction climbs dramatically as the NBN gets fully 

underway. Water related construction should drop back 

over the next few years as desalination and dam projects 

are completed. 

Social infrastructure is reverting to trend as educational 

building drops back sharply and health is expected to rise 

significantly as some major new hospital projects get 

underway. 

This range of infrastructure opportunities auger well for the 

Leighton Group’s Australian based contracting companies. 

Property 

Demand in the commercial and industrial markets is slowly 

improving in line with the increase in employment and 

capital inflows from overseas. The national office vacancy 

rate tightened to 7.6% in 2Q 2011 from 7.9% in 4Q 2010. A 

real increase of 13% in the value of commercial and 

industrial building commenced is expected in 2011. The 

previous activity peak of $24 billion could be reached again 

in 2014. 

One of the key drivers of residential property, net overseas 

migration, is forecast to accelerate to a peak of 240,000 in 

2014 from the current expected trough of 165,000 in 2011, 

which will lead to a commensurate increase in underlying 

demand. This factor, combined with new dwelling 

commencements falling 6% in 2011, will keep residential 

market conditions tight in terms of low vacancy rates, rental 

growth and prices growth. 

Resources 

Stronger economic activity, growing demand and higher 

prices have encouraged producers to expand capacity in 

2011 and restart existing operations that were closed in 

response to falling demand in 2008 and 2009. In 2011, 

world steel consumption is forecast to increase by 6% to 

1.4 billion tonnes, with 53% of demand coming from China, 

India and Brazil. 

A 5% rise in Australia’s iron ore export volumes is expected 

for the year, with further growth in 2012. Around $24 billion 

of iron ore projects have been identified as committed or 

under construction, which will add 215 Mtpa of additional 

output and provide both contract mining and construction 

opportunities. 

The outlook for Australian metallurgical coal exports is well 

supported by the expected increase in China’s reliance on 

imports relative to domestic coal, due to increasing cost of 

domestic coal production and decreasing quality. 

Thermal coal production in Australia is also forecast to rise 

sharply by 18% to 175Mt in 2011, boosted by the 

completion of new coal mines and expanded capacity in 

New South Wales. As at May 2011, 64 Mtpa of additional 

capacity have been identified in projects under construction 

or committed, with an estimated capital cost of $9.2 billion. 

Port capacity is expected to rise to 430 Mtpa in 2011 after 

expansions were implemented at port facilities at 

Gladstone, Abbot Point and Newcastle. Beyond 2011, port 

capacity is forecast to be further expanded to more than 

660 Mtpa by 2020 with rail capacity meeting or exceeding 

this level. 

The value of new construction work commenced in the 

resources sector increased more than three-fold in the 

2010 financial year, helped by the commencement of the 

$40 billion Gorgon LNG project. The value of resources 


construction work done is expected to rise, in real terms, by 

20% in 2011 and by a total of 70% over the next three 

years, providing a solid pipeline of construction 


Australian LNG exports are expected to reach 41 million 

tonnes by 2016, underpinned by the completion in 2015 of 

projects currently under construction, including the Gorgon 

project (15 Mtpa) in Western Australia and Gladstone LNG 

(7.8 Mtpa) and Curtis Island LNG (8.5 Mtpa) in 

Queensland. 

Market Outlook - International 

Growth in the global economy is expected to remain above 

4% over the next five years through to 2016, underpinned 

by strong growth in emerging markets. 

The Middle East has returned to pre-GFC long-term growth 

levels, while developing Asia continues to outperform the 

rest of the world with annual growth of 8.4% expected in 

2011 and 2012. 

The Middle East and Africa 

Despite the recent political unrest in the Middle East, 

economic growth is estimated to rebound in 2011 to 4.1% 

on average across the region (up from 2% in 2009). A new 

era of political and economic freedom could propel the 

region forward during the coming decade. 

Significant project pipelines in Saudi Arabia, Abu Dhabi 

and Qatar support the outlook for robust growth in the 

region in the medium term. Favourable demographics – 

66% of the Saudi population is under 25 – and energy 

sector investments will ensure continued demand for both 

social and economic infrastructure. The award of the 2022 

FIFA World Cup to Qatar will also increase the level of 

available work in the region as that country implements a 

US$65 billion infrastructure program. 

In Sub-Saharan Africa, recovery has brought output back 

to pre-GFC peaks, and many economies have already 

moved into an expansion phase. Output for the region is 

expected to reach 6% in 2012, reflecting sustained strength 

in domestic demand and rising global demand for 

commodities. 

Africa is a continent rich in mineral resources with, among 

others, 60% of the world’s diamonds, 40% of the world’s 

phosphate, and 47% of worldwide cobalt reserves. The 

region is expected to benefit from the current low interest 

rate environment and worries about rising inflation, which 

are driving a sustained flow of foreign direct investment into 

commodities. 

In the latest annual survey of exploration companies, 

Botswana overtook Australia as a preferred destination for 

new mining investments, achieving a rank of 8 th in the 

world. The country has a stable political situation and a well 

developed mining sector, backed by a sound regulatory 

framework. This signals that a good level of new projects 

should emerge in Sub-Saharan Africa in the coming years. 

Asia and India 

Asia continues to outpace other regions supported by 

strong exports, rapid credit growth and robust private 

domestic demand. The demand in China and India is 

helping other emerging economies as it raises commodity 

prices and related investments. 

Relatively low levels of government debt and policy 

settings to allow higher trend growth have turned the region 

into a magnet for foreign capital flows. The outlook for 

China – 9.5% growth over the next few years – rests on 

continued stability following China’s planned leadership 

change in the autumn of 2012. Public debt, currently under 

20% of GDP, is estimated to jump to 32% as Beijing cleans 

up the provincial governments’ debts. China’s continued 

growth should flow on to support other neighbouring 

countries. 

Hong Kong enjoys a strong fiscal position and the country’s 

rapid economic rebound will help push the 2011 budget 

surplus to 1.8% of GDP and 3%+ in the following years. 

Government spending drove fixed investment through 1Q 

2011 and supported 6.8% GDP growth in 2010. Hong Kong 

aims to enhance its access to the mainland and last year 

launched 10 major infrastructure projects to accomplish 

this goal. The value of its construction industry is forecast 

to rise from $7.1 billion in 2011 to $9.8 billion in 2015. 

Public works spending in Hong Kong drove 2010 

construction, but private demand is likely to take over in 

2011 as firms and households take advantage of low 

borrowing costs. A total spend of HK$67 billion (A$8 billion) 

is forecast to be committed from the Capital Works 

Reserve Fund on existing and new projects during 2012. 

The pipeline of government-funded major infrastructure 

projects at 31 March 2012 is expected to increase from 

HK$192 billion this year to HK$216 billion and Leighton 

Asia is well placed to take advantage of these 


India is expected to remain within recent trend expectations 

with GDP growth projected at 7.8% in 2012, driven mainly 

by infrastructure spending and corporate investment. 

India’s main growth drivers in 2010 – a surge in fixed 

investment and strong export performance – are likely to 

continue in the medium term as a growing population, 

rising rural incomes and urban migration ensure a solid 

outlook for 2011 through to 2016. Fixed investment is now 

35% of GDP, a level at which it usually starts raising the 

long-term productivity of the economy. India is emerging as 

a manufacturing centre that is increasingly export driven. 

A 20% increase in infrastructure spending is possible over 

the next five years, led by strong GDP growth and a step 

up in infrastructure investments from 4.6% of GDP to 5.6% 

in 2015 (the government’s target is 8%). This is expected 

to deliver a wide range of construction and PPP 

opportunities, and the newly formed Leighton Welspun 

Contractors India is anticipating participating in this 

investment surge. 

Indonesia has outperformed the ASEAN region in terms of 

economic growth, which is expected to remain around the 

6% level, driven by mild reforms and a lift in fixed 

investment. Indonesian sovereign debt is forecast to be 

upgraded to investment grade level in the next year, which 

will promote further foreign investment in the region. This 

will support the level of infrastructure development which is 

needed to provide outperforming economic growth. 

Indonesia’s coal exports are projected to increase to 340 

million tonnes by 2016. Thermal coal production is forecast 

to be the fastest growing major source of energy in 

Indonesia over the next decade, supported by strong 

exports to Asia and rapidly growing domestic consumption. 

This is likely to lead to an increase in new mines and 

further extensions to existing mining operations. 

Mongolia will experience one of the fastest rates of 

economic growth in the world over the coming five year 

period. However, due to the high level of dependence on 


the resources sector – mining accounts for 81% of exports, 

32% of government revenue, and 30% of GDP – this 

growth will be volatile. 

Group Prospects 

The Leighton Group’s long-term outlook remains positive 

based on a record level of work in hand, a strong 

competitive position, and strong economic activity in its 

major markets. The Group’s diversity strategy, offering a 

number of Australian based construction opportunities 

positions the Group to pursue the numerous infrastructure 

and resources projects likely to proceed over the next few 

years. Additionally, the Group’s presence in Asia, either as 

wholly owned entities or in partnership, positions the 

Company well for future growth. 

Guidance 

The Leighton Group maintains a strong level of work in 

hand, has a strengthened balance sheet and anticipates 

reporting an after tax profit of between $600-650 million for 

the 12 months to 30 June 2012. This guidance does not 

include the potential impacts of the sale of the HWE Mining 

iron ore business. 

Investments 

Engineering & Infrastructure 

• AquaSure: Thiess has a 5.2% share of the consortium 

that will finance, design, build, operate and maintain 

the $3.5 billion Victorian Desalination Project. 

• RiverCity Motorway: Leighton Contractors has an 

13.7% share in the company that owns, operates and 

maintains the RiverCity Motorway in Brisbane. 

• BrisConnections: Thiess and John Holland will invest 

$200 million in the consortium that will own, operate 

and maintain the Airport Link Project in Brisbane. 

• Aspire Schools: Leighton Contractors has a 50% 

share of the consortium that will finance, design, 

construct and maintain over 30 years, 7 schools in 

South East Queensland. 

• Cross City Motorway: Leighton Contractors has 6% 

of the company that owns, operates and maintains the 

Cross City Tunnel in Sydney. 

• SA Health Partnership: Leighton Contractors has a 

19.9% share in the consortium that will finance, design, 

construct and maintain the new Royal Adelaide 

Hospital for 35 years. 

Mining and Resources 

• Cockatoo Island Project: HWE Mining is a 50:50 joint 

venture owner of an iron ore mine in Western 

Australia. 

Listed Entities 

• Sedgman Limited: Thiess owns 31.72% of the listed 

resources engineering company. 

• Macmahon Holdings Limited: Leighton Holdings 

owns 19% of the listed engineering and mining 

contracting company. 


Operational Analysis 

Operating Revenue 

Work in Hand 

Group June 2011 June 2010 Group June 2011 June 2010 

by Company $M % $M % by Company $M % $M % 

Thiess 6,637 35 6,621 36 Thiess 16,492 36 16,261 39 

Leighton Contractors 6,177 32 5,272 28 Leighton Contractors 10,786 23 9,797 24 

John Holland 3,672 19 3,621 20 John Holland 7,673 16 5,302 13 

Leighton Asia 1,037 5 1,149 6 Leighton Asia 6,576 14 6,001 14 

Habtoor Leighton 847 4 1,107 6 Habtoor Leighton 1,774 4 2,426 6 

Leighton International 839 4 644 3 Leighton International 1,203 3 1,189 3 

Leighton Properties 133 1 211 1 Property 1,722 4 565 1 

Corporate/Eliminations 35 0 17 0 

TOTAL 19,377 100 18,642 100 TOTAL 46,226 100 41,541 100 


by Market $M % $M % by Market $M % $M % 

Infrastructure 10,681 55 10,417 56 Infrastructure 20,100 44 17,910 43 

Resources 7,381 38 6,399 34 Resources 22,393 48 20,151 49 

Property 1,280 7 1,809 10 Property 3,733 8 3,480 8 


TOTAL 19,377 100 18,642 100 TOTAL 46,226 100 41,541 100 


by Activity $M % $M % by Activity $M % $M % 

Construction 12,006 62 11,653 63 Construction 19,847 43 18,645 45 

Contract Mining 5,177 27 4,861 26 Contract Mining 18,479 40 17,399 42 

Services 2,026 10 1,900 10 Services 6,178 13 4,932 12 

Development 133 1 211 1 Development 1,722 4 565 1 


TOTAL 19,377 100 18,642 100 TOTAL 46,226 100 41,541 100 

Australia/Pacific June 2011 June 2010 Australia/Pacific June 2011 June 2010 

by Market $M % $M % by Market $M % $M % 

Infrastructure 9,203 58 9,053 61 Infrastructure 17,054 53 15,492 58 

Resources 6,155 38 5,036 34 Resources 12,602 40 10,227 38 

Property 592 4 778 5 Property 2,337 7 1,112 4 


TOTAL 15,985 100 14,884 100 TOTAL 31,993 100 26,831 100 

Asia & Middle East June 2011 June 2010 Asia & Middle East June 2011 June 2010 

by Country $M % $M % by Country $M % $M % 

Middle East 1,246 37 1,107 30 Middle East 2,122 15 2,426 17 

Indonesia 1,086 33 1,278 34 Indonesia 7,109 50 8,096 55 

Hong Kong/Macau 396 11 556 15 Hong Kong/Macau 1,409 10 877 6 

India 311 9 450 12 India 1,185 8 946 6 

Mongolia 102 3 49 1 Mongolia 1,440 10 1,674 11 

Other 251 7 318 8 Other 968 7 691 5 

TOTAL 3,392 100 3,758 100 TOTAL 14,233 100 14,710 100 

Note 1: 

Operating revenue includes the Group’s share of 

joint venture and associates revenue. 

Note 2: See Note 5 Segment information on pages 13 & 14 

of the Appendix 4E & Consolidated Preliminary 

Final Report for greater detail. 

Note 1: 

Note 2: 

Work in hand includes the Group’s share of work in hand from 

joint ventures and associates. 

Work in hand only includes work for 5 years from the reporting 

date. The value of long-term contracts running past June 2016 is 

not included. 


Significant Current Contracts and Property Developments 

- Unless otherwise stated total contract values are shown in A$ for all projects (less than 95% complete), 

including joint ventures (JVs) and associates, with the figures in brackets indicating the operating company’s 

share of the contract. 

- For long term contracts extending beyond five years, the total contract value shown includes the value of work 

completed to date plus five years worth of work in hand. 

Leighton Contractors 

• $1.85bn ($925m) JV to design and construct the New 

Royal Adelaide Hospital for SA Health Partnership. 

• $814m for construction of civil and underground 

services for the Gorgon Project, Barrow Island, WA, for 

Chevron Australia. 

• $467m contract to upgrade the M2, Sydney, NSW, for 

Hills Motorway Ltd & Hills Motorway Mgt Ltd. 

• $291m EPC contract to construct a 420MW windfarm, 

VIC, for Macarthur Wind Farm. 

• $225m for contract mining at the Poitrel coal mine, 

QLD, for BHP Mitsui Coal. 

• $206m for contract mining at the Telfer gold mine, 

Telfer, WA for Newcrest Operations Limited. 

• $155m open cut coal mining contract at the Dawson 

coal mine, QLD, for Anglo Coal (Dawson 

Management) Pty Ltd. 

• $150m for civil infrastructure works , Moranbah, QLD, 

for BM Alliance Coal Operations. 

• $229m ($130m) alliance to widen the Great Eastern 

Hwy in Perth from 4 to 6 lanes between Kooyong 

Road and Tonkin Highway, WA, for WA Main Roads. 

• $191m ($127m) contract for road maintenance in the 

Wheatbelt region, WA for WA Main Roads. 

• $120m contract to design and construct 4.1km of 

freeway from the south of Tilburn Road to Furlong 

Road, Melbourne, VIC, for VicRoads. 

• $122m for underground development and production 

at the Cosmo Deep gold mine, Humpty Doo, NT, for 

Crocodile Gold Australia Operations Pty Ltd. 

• $113m for construction services and early works in 

South Strathfield, NSW, for Sydney Ports Corporation. 

• $113m to design and construct the new Botany Paper 

Mill, NSW, for Amcor Packaging (Australia) Pty Ltd. 

• $73m to design and construct a new wind farm in 

consortium with GE near Geraldton, WA, for Mumbida 

Windfarm Pty Ltd. 

• $768m to design and construct jetty and marine 

structures for the Gorgon LNG project, Barrow Island, 

WA, for Chevron Australia. 

• $518m alliance to design and construct the new 

Ballina Bypass, NSW, for the RTA. 

• $470m ($235m) to design and construct the Pacific 

Highway - Sapphire to Woolgoolga Upgrade, NSW, for 

the RTA. 

• $459m contract to load and haul ore and waste from 

St Ives gold mine, Kambalda, WA, for St Ives Gold 

Mining Company. 

• $445m alliance to design and construct the Kingsgrove 

to Revesby Rail Quadruplication (K2RQ), NSW, for the 

Transport Infrastructure Development Corp. 

• $335m to design and construct a commercial office 

tower at 111 Eagle St, Brisbane, QLD, for GPT Funds 

Management. 

• 

• $332m for the development of the Coal Connect rail 

link, Newlands, QLD, for Queensland Rail. 

• $325m for mining services at the Duralie coal mine, 

Gloucester, NSW, for Duralie Coal. 

• $324m to design and construct the Kempsey Bypass, 

part of the Kempsey to Eungai Upgrade Project, NSW, 

for the RTA. 

• $281m ($242m) alliance for the construction of the 

Eastern Busway Stage II, Brisbane, QLD, for the 

Department of Main Roads. 

• Alliance to design and construct 132kv substations, 

Sydney, NSW, for Energy Australia. 

• $214m alliance for bypass and road construction 

works at Tarcutta on the Hume Highway, NSW, for the 

RTA. 

• $200m for contract mining services at the Sonoma 

coal mine Collinsville, QLD, for Sonama Mine 

Management. 

• $197m for contract mining services at the Peak Downs 

coal mine Mackay, QLD, for BM Alliance Coal 

Operations. 

• $194m for site preparation works at the PNG LNG 

Project, PNG, for Chiyoda - (JGC JV). 

• Alliance to upgrade a rail line in the Upper Hunter 

Valley, Sydney, NSW, for the Australian Rail Track 

Corporation. 

• $99m alliance to construct an additional track between 

Quakers Hill and a relocated Schofield station on the 

Richmond Line, NSW, for the Transport Infrastructure 

Development Corporation. 

• $97m for contract mining services at the Moorvale coal 

mine, Coppabella, QLD, for Macarthur Coal P/L. 

• $89m alliance to provide maintenance services for the 

Auckland road network, NZ, for Auckland City Council. 

• $80m for construction of a new 6 level building and 

internal fit out of approx. 50% of the building, VIC, for 

Vic - Dept of Health. 

• $58m for construction works at the Newmarket 

Viaduct, Auckland, NZ, for NZ Transport Agency. 

• Operations and maintenance of the Eastern Distributor 

Motorway, NSW, for Airport Motorway. 

• $48m for refurbishment of Wellington Tunnel, NZ, for 

New Zealand Transport Agency. 

• $41m to construct Phase 1 of the road and irrigation 

channels, Ord River, WA, for the Land Authority of 

Western Australia Government. 

HWE Mining 

• $1.88bn for contract mining services at the Area C iron 

ore mine, near Newman, WA, for BHP Billiton. 

• $1.73bn for contract mining services at the Yandi iron 

ore mine, near Newman, WA, for BHP Billiton. 

• $1bn for contract mining operations at the SMR 

Magnet iron ore mine, Whyalla, SA, for OneSteel 

Manufacturing. 

Note: ■ Indicates new project secured between 1 July 2010 – 30 June 2011 

• Indicates significant on-going project 


• $541m for contract mining services at the Orebody 

23/25 iron ore mine, Newman, WA, for BHP Billiton. 

• $229m for mining operations at the Challenger gold 

mine, north west of Adelaide, SA, for Dominion Mining. 

• $190m for mining services at Woodie Woodie 

manganese mine, Pilbara region, WA for Pilbara 

Manganese Pty Ltd. 

• $190m for mining services at the Rotowaro coal mine, 

Huntley, North Island, NZ, for Solid Energy New 

Zealand. 

• $168m for mining operations at the Favona gold mine, 

Waihi, North Island, NZ, for Newmont. 

• $276m ($138m) for contract mining services at the 

Cockatoo Island iron ore mine, WA, for Portman 

Mining. 

• $103m for mining services at the Wattle Dam gold 

mine, WA, for Ramelius Resources. 

Broad 

• $95m to construct two 6 storey office buildings in 

Perth, WA, for CHOF 5 Pier Street Pty Ltd. 

• $41m to extend and refurbish an existing shopping 

centre in Mount Sheridan, Cairns, QLD, for Green 

Group Property Investments Pty Ltd. 

• $476m ($238m) for the design and construction of 

seven new state schools, South East QLD, for Aspire 

Schools. 

• $96m to construct housing and infrastructure for 

indigenous communities (SIHIP), Darwin, NT & Perth, 

WA, for the Australian, WA & NT Governments. 

Telecommunications 

• $718m contract to provide telecommunication field 

services, Auckland, NZ, for Chorus (Telecom New 

Zealand). 

• $250m to provide fibre construction, design and 

project management, to the Regional Backbone 

Blackspots Program (RBBP), for the Department of 

Broadband Communications & the Digital Economy. 

• $67m to operate and maintain an emergency alerting 

system, across various areas, Vic, for the Department 

of Justice. 

Thiess 

• $757m for approximately 13km of new expressway 

from the Newcastle link road at the F3 west to Kurri 

Kurri, including 24 bridges, NSW, for RTA. 

• $354m to design and construct mine infrastructure for 

the Pakri Barwadih coal Mine, India, for NTPC Ltd. 

• $214m ($107m) for a 5.5km extension of dual track 

heavy rail from Noarlunga to Seaford, SA, for the Dept 

of Transport Energy and Infrastructure. 

• $210m for bulk earthworks and selected infrastructure 

at the Jimblebar iron ore mine, WA, for BHP Billiton. 

• $202m alliance for project management and civil 

works for installation of a 132kV transmission cable, 

Sydney, NSW, for Energy Australia. 

• $147m for construction of upstream gas processing 

facilities, Chinchilla, QLD, for QGC. 

• $106m to demolish and rebuild infrastructure, Goodna, 

QLD, for Ipswich Water. 

• $83m for training and access management system 

project early works, Moranbah, QLD, for BMA Coal. 

• $4.14bn ($2.07bn) joint venture for the construction of 

the Airport Link tollroad, Northern Busway (Windsor to 

Kedron) and Airport Roundabout Upgrade, Brisbane, 

QLD, for BrisConnections. 

• $3.74bn for mining operations at the Burton coal mine, 

Glenden, QLD, for Peabody Energy Australia. 

• $3.35bn for mining operations at the Mt Owen coal 

mine, Singleton, NSW, for Xstrata. 

• $3.5bn ($2.32bn) joint venture to design and construct 

the Victorian Desalination Plant, Wonthaggi, VIC, for 

the Department of Sustainability and Environment. 

• $2.74bn for mining operations at the Collinsville coal 

mine, Collinsville, QLD, for the Collinsville Coal 

Company. 

• $945m for mining operations at the Prominent Hill 

copper-gold mine, SA, for Oz Minerals. 

• $800m for mining operations at the Curragh North coal 

project, Blackwater, QLD, for Wesfarmers Curragh Pty 

Ltd. 

• $797m for mining services at the Wilpinjong coal mine, 

Wollar, NSW, for Peabody Energy Australia. 

• $742m for mining services at the Lake Vermont coal 

mine, Dysart, QLD, for Lake Vermont Resources. 

• $736m for the construction of the Royal North Shore 

Hospital Redevelopment, Sydney, NSW, for 

Infrashore. 

• $729m ($243m) for engineering, procurement and 

construction of the Gorgon Village, Barrow Island, WA, 

for Chevron Australia. 

• $583m to upgrade the Tulla to Sydney Road section of 

the M80 Ring Road, Tullamarine, VIC, for VicRoads. 

• $581m for site preparation and temporary construction 

facilities at the Gorgon LNG Project, Barrow Island, 

WA, for Chevron Australia. 

• $527m for mining and coal processing at the Tarong 

coal project, Kingaroy, QLD, for Tarong Energy 

Corporation Limited. 

• $376m to design and construct the Lotus Glen 

Correctional Centre, Mareeba, QLD, for Queensland 

Corrective Services. 

• $265m for mining operations at South Walker Creek 

Mine, Bowen Basin, QLD, for BHP Mitsui Coal Pty Ltd 

(BMC). 

• $123m for the construction of the King George Central 

building, Brisbane, QLD, for Leighton Properties. 

• $112m ($56m) to design and construct the northern 

section of the Brighton Bypass, Tasmania, for the Dept 

of Infrastructure, Energy and Resources. 

• $97m for the construction of the Townsville Hospital 

upgrade, Townsville, QLD, for Queensland Health. 

• $62m to develop and construct wastewater 

infrastructure, Ipswich, QLD, for Queensland Urban 

Utilities. 

• $54m for construction of 19 rail sidings and associated 

earthworks infrastructure, Newport, VIC, for Metro 

Trains Melbourne. 

• $76m for site preparation at the QCLNG gas plant, 

Gladstone, for Bechtel Australia. 

PT Thiess Contractors Indonesia 

• US$4.08bn for contract mining at the Senakin and 

Satui coal mines, South Kalimantan, Indonesia, for PT 

Arutmin Indonesia. 

• US$2.74bn for mining services and related works at 

the KPC (Sangatta) coal mine, East Kalimantan, 

Indonesia, for Kaltim Prima Coal. 

• US$888m for mining services at the Bayan FKP coal 

mine, East Kalimantan, Indonesia, for Gunung Bayan 

Pratama Coal PT. 

Thiess Services 

• $373m ($279m) for passive fibre network construction 

for first stage of the NBN works in ACT, NSW and 

QLD, for NBN Co. 


• $68m for implementation, design and construction of 

wideband services (high speed data 2Mbits/s & above) 

for Telstra's retail and wholesale customers. 

• $41m for a material recover facility to sort recyclable 

material received from local council for Amcor, Petrie, 

QLD. 

• $845m alliance for provision of operations, 

maintenance and construction services, Victoria, for 

South East Water. 

• $483m ($241m) for provision of specialist installation & 

maintenance broadband and access services, QLD & 

NSW, for Telstra. 

• $355m contract to provide maintenance services, 

Victoria, for Melbourne Water. 

• $350m ($175m) for provision of Telepower and 

network building facility management services to 

Telstra. 

• $280m ($140m) to design and construct Telstra's 

Telepower Network, Aust Wide, Telstra. 

• $262m ($131m) for provision of maintenance and 

asset management services, Victoria, for BlueScope 

Steel. 

• $234m for the operations of waste transfer stations 

and landfill, Brisbane, QLD, for the Brisbane City 

Council. 

• $217m ($87m) to operate and maintenance the 

Victorian Desalination Plant for 27 years plus preoperations 

commissioning & testing, Wonthaggi, VIC, 

for Aquasure. 

• $200m contract for collection of domestic general 

waste, recycling and operation of a materials recycling 

facility, Gosford &Wyong, NSW, for the Gosford & 

Wyong Councils. 

• $173m alliance for operation and maintenance North 

of the Swan River, Perth, WA, for the Water 

Corporation. 

• $104m for operation & maintenance of the Airport Link 

Tunnel and associated works Brisbane, QLD, for 

Brisconnections. 

• $88m ($44m) for transport & processing of waste for a 

15 years concession period, Abu Dhabi, United Arab 

Emirates, for the Abu Dhabi Government. 

• $83m for overhead distribution work & high voltage live 

line work, QLD for Ergon Energy. 

• $80m to provide water, waste water and stormwater 

maintenance services to the Auckland City, New 

Zealand, for Metrowater. 

• $69m domestic waste collection contract, Wollongong, 

NSW, for the Wollongong City Council. 

• $64m to provide inspection and maintenance services 

for a distribution and sub-transmission electricity 

network, QLD, for Ergon Energy. 

• $60m in facility management of building plant & 

equipment maintenance, Sydney, NSW, for Infrasure 

Consortium. 

• $56m for electrical distribution, construction and 

maintenance work, Brisbane Metro & North Coast, 

QLD, for Energex. 

• $49m contract to operate and maintain a recyclable 

materials recovery facility, Canberra, ACT, for the Dept 

of Urban Services. 

• $45m for network electrical construction, maintenance 

and management services, South Country WA, 

Metropolitan Perth & Geraldton, WA, for Western 

Power. 

• $41m contract for waste collection & recycling, 

Caloundra, QLD, for the Caloundra City Council. 

John Holland 

• Managing contractor role on construction of the new 

$800m children/adolescent tertiary and quaternary 

hospital, WA, for the Department of Treasury & 

Finance. 

• $598m to operate, manage, maintain and upgrade 

country railway lines across NSW for Country Rail 

Infrastructure Authority. 

• US$561m ($87m) to construct a sludge treatment 

facility, Hong Kong, for the Hong Kong Environmental 

Protection Department. 

• $568m to construct 10.5 kilometres of new twin track 

electrified rail line from Glenfield to Leppington, 

including new passenger stations and a stabling yard, 

Sydney, NSW for Transport Construction Authority. 

• $545m ($218m) to deliver a new 4.8 kilometre highway 

corridor, including 2.8 kilometres of elevated roadway, 

Adelaide, SA, for Department for Transport, Energy 

and Infrastructure. 

• $349m for mining operations at the Jellinbah Plains 

coal mine, QLD, for Jellinbah Resources Pty Ltd. 

• $339m ($302m) alliance to deliver rail, tunnelling and 

civil works for the Perth City Transport Hub, WA for 

Public Transport Authority. 

• $299m ($254m) for expansion of port facilities, Cape 

Lambert, WA, for Hammersley Iron Pty Ltd. 

• US$237m ($102m) to construct twin 1 km long railway 

tunnels, an underground cavern station, and other 

infrastructure on the South East Line, Hong Kong, for 

MTR Corporation Limited. 

• $183m to design and construct the production centre, 

maintenance, vehicle maintenance, canteen and other 

ancillary buildings at the Barrow Island Gorgon 

facilities, WA, for Chevron Australia Pty Ltd. 

• $156m for mining operations at the Oak Park and Lake 

Lindsay coal mines, Middlemount, QLD, for Anglo Coal 

(Capcoal Management) Pty Ltd. 

• $156m to construct marine offloading facilities at the 

GLNG site, QLD for the Santos, PETRONAS, Total & 

KOGAS joint venture. 

• $152m for the redevelopment and expansion of the 

Albany hospital, WA, for Department of Treasury & 

Finance. 

• US$122m ($65m) for construction of twin 780m long 

rail tunnels plus station box on the Down Town Line, 

Singapore for Land Transport Authority. 

• $110m to construct facilities and supporting 

infrastructure for the Singleton Military Area, NSW, for 


• $105m to construct a new 200 bed co-located private 

hospital adjacent to Sunshine Coast University 

Hospital, QLD, for Ramsay Health Care Australia 

$97m ($48m) for the upgrade of the Murrumbidgee 

irrigation network, NSW for Murrumbidgee Irrigation 

Council. 

• $83m for strengthening of the rail line between 

Narngulu and Mullewa, WA, for Westnet Rail Pty Ltd. 

• $80m to supply and construct Stage 2AA of the 

inbound and outbound structural and mechanical 

works, Kooragang Island, NSW, for Newcastle Coal 

Infrastructure Group. 

• $79m for construction of a product load out jetty at the 

GLNG site, QLD for the Santos, PETRONAS, Total & 

KOGAS joint venture. 

• $79m to construct a 20 storey commercial office block, 

NSW, for Hassall Street Pty Ltd. 

• $77m to construct a wastewater treatment plant for the 

Shell Refinery, Barwon Region, for Barwon Region 

Water Corporation. 


• $75m for construction of a product load-out jetty and 

operations jetty at the QCLNG site, QLD, for QGC. 

• $67m ($40m) for activation and enabling works at 

Southern Cross Station for the Regional Rail Link 

project, Melbourne, for Metro Trains Melbourne Pty 

Ltd. 

• $66m ($44m) for managing contractor role to deliver 

pressure reducing valves and other ancilliary works for 

the North South Interconnection System Project, SA, 

for SA Water Corporation. 

• $65m to construct marine offloading facilities at the 

QCLNG site, QLD, for QGC. 

• $60m for expansion and refurbishment of existing 

morgue facilties, Melbourne, VIC, for Department of 

Justice. 

• $55m for construction of a bulk liquids berth at Port 

Botany, NSW, for Sydney Ports Corporation. 

• $44m for expansion of Carousels 6 & 7 and Gates 18 

& 20 at Melbourne Airport for Australia Pacific Airports. 

• $41m to construct 4.5 km of sewer with cross 

connections, Eight Mile Plains, QLD, for Queensland 

Urban Utilities. 

• $7.03bn ($1.41bn) to operate and maintain the 

metropolitan rail network, Melbourne, VIC, for the 

Department of Transport. 

• $4.14bn ($2.07bn) for the construction of the Airport 

Link tollroad, Northern Busway (Windsor to Kedron) 

and Airport Roundabout Upgrade, Brisbane, QLD, for 

BrisConnections. 

• $488m ($244m) alliance to construct water 

infrastructure, Canberra, ACT, for ACTEW 

Corporation. 

• $348m alliance to strengthen the Westgate Bridge, 

Melbourne, VIC, for Vic Roads. 

• $342m for mining operations at the Isaac Plains coal 

mine, Moranbah, QLD, for Isaac Plains Coal 

Management. 

• $282m to construct Stage 1 of the Northern Sewerage 

project, Melbourne suburbs, VIC, for Melbourne Water. 

• $281m alliance to construct rail works between 

Maitland and Whittingham, NSW, for the Australian 

Rail Track Corporation. 

• $261m for the delivery of the South Morang Rail 

Extension Project, VIC, for the Victorian Government. 

• $230m to maintain rail infrastructures, WA, for 

WestNet Rail. 

• $229m to construct the Melbourne Airport terminal 

expansion, VIC, for Australia Pacific Airports. 

• $198m to deliver a 5 year program of works including 

major civil, rail, signalling and overhead traction works, 

NSW, for Rail Corporation. 

• $178m to construct onshore processing facilities and 

pipelines for the Devil Creek Development Project, 

WA, for Apache Energy. 

• $170m alliance to upgrade water infrastructure, 

Barwon Region, Vic, for Barwon Region Water 

Corporation. 

• $166m for the replacement of sewers, Melbourne 

suburbs, VIC, for Melbourne Water. 

• $160m ($60m) JV for the delivery of trackwork 

upgrade to the Adelaide metropolitan passenger rail 

network, Adelaide, SA, for the Department of 

Transport, Energy & Infrastructure. 

• $134m alliance to construct the Western Highway 

Realignment, Bacchus Marsh, VIC, for VicRoads. 

• $108m to construct the Middlemount coal rail loop, 

QLD, for Middlemount Coal. 

• $96m ($48m) to construct extra facilities and 

infrastructure as part of Stage 1 of the Kapooka 

project, Kapooka, NSW, for the Department of 

Defence. 

• $95m management contract to deliver track, station 

upgrade and signalling works at Liverpool station, 

NSW, for TIDC. 

• $83m to construct new facilities and the refurbishment 

of existing working accommodation, training, and 

storage accommodation, Sth East QLD, for the 


• $78m to construct a new heavy maintenance facility, 

Melbourne, VIC, for Department of Transport. 

• $69m to construct additional facilities at the Cessnock 

Correctional Centre, Newcastle, NSW, for the 

Department of Corrective Services. 

• $48m to construct an emergency department, 70 bed 

public ward, & 12 new theatres, WA, for Joondalup 

Hospital Pty Ltd. 

• $47m to construct 21 buildings including stores and 

warehouse, QLD, for Department of Defence. 

• $40m to expand the wireless network throughout rural 

Australia for Optus. 

Leighton Asia 

• US$561m (US$135m) joint venture to design and 

construct sludge treatment facilities at Tuen Mun, for 

VW-VES (HK) Ltd. 

• US$322m to construct 1.8 km of elevated viaduct and 

two elevated stations with footbridge connections, for 

MTR Corporation Limited. 

• US$278m (US$139m) joint venture to construct a cut 

and cover approach tunnel for West Kowloon 

Terminus, for MTR Corporation Ltd. 

• US$237m (US$130m) joint venture to construct 

railway tunnels between the Aberdeen Channel Bridge 

and the proposed South Horizons Station, for MTR 


• US$168m for mining operations at Martabe gold mine, 

Indonesia, for PT Agincourt Resources. 

• US$163m to construct a cut and cover tunnel for the 

Highways Department of the Hong Kong Government. 

• US$122m (US$61m) to construct the Sungei Road 

Rail Station together with twin tunnels of approximately 

770m, for the Land Transport Authority of Singapore. 

• US$79m to prepare site and bulk earthworks in 

preparation for gold mining and processing plant at 

Martabe, North Sumatra, for PT Agincourt Resources. 

• US$45m for site preparation work for JGC 

Corporation. 

• US$42m to modifiy works to the Black Point Power 

Station in preparation for a new gas supply due in 

2013, for the China Light & Power Limited. 

• US$2.81bn for mining operations at the Wahana coal 

mine, Indonesia, for PT Wahana Baratama Mining. 

• US$1.24bn for mining operations at MSJ coal mine, 

Indonesia, for PT Mahakam Sumber Jaya. 

• US$1.17bn for mining services at the Ukhaakhudag 

(UHG) coal mine, Mongolia, for Energy Resources 

LLC. 

• US$439m (US$330m) for construction of Express Rail 

tunnels and associated ventilation and access 

structures between Tse Uk Tseun in Kam Tin and 

Shek Yam in Kwai Chung, Hong Kong, for MTR 


• US$322m for mining operations at the Masbate gold 

mine, Philippines, for the Philippines Gold Processing 

& Refining Corporation. 

• US$298m to design and build the Ukhaa Khudag to 

Gashuun Sukhait freight railway in the South Gobi 

region of Mongolia, for Energy Resources Rail LLC. 

• US$259m (US$130m) for installation, deep excavation 

and protection works for the Central Reclamation 


project, Hong Kong, for the Civil Engineering & 

Development Department of the Hong Kong 

Government. 

• US$277m (US$221m) for the construction of Stage 2A 

of the Harbour Area Treatment Scheme (HATS), Hong 

Kong, for Hong Kong Drainage Service Department. 

• US$208m contract to develop and operate the 

Khushuut coal mine in western Mongolia for Mongolia 

Energy Corporation. 

• US$196m (US$100m) to design and construct an 

eight-storey, 160 bed hospital block together with 

associated building services and external works, Hong 

Kong, for the Architectural Services Department of the 

Hong Kong Government. 

• US$161m to install approximately 360km of double 

track from Ipoh to Padang Besar, for the MMC 

Gamuda Joint Venture Sdn Bhd. 

• US$156m to construct drainage tunnels at the Lai Chi 

Kok Transfer Scheme, Hong Kong, for the Hong Kong 

Drainage Service Department. 

• US$126m for mining operations at the Toka Tindung 

Gold Mine, Indonesia, for PT Meares Soputan 

Mining/Achipelago Resources Pty. 

• US$89m for the construction of a 34 floor Grade A 

office tower in the Philippines, for Bridgebury Realty 

Corporation-Zuellig Group. 

• US$74m for the demolition, disposal and 

decommissioning of concrete storage bunkers, 

Malaysia, for the MMC Gamuda Joint Venture Sdn 

Bhd. 

Leighton International 

• US$799m to install 3 single point moorings and 120 

km of Pipelines, Iraq, for South Oil Company. 

• US$587m (US$352m) to deliver the Cut 8 Phase 2 

contract, including mine scheduling, drill and blast, 

truck and shovel waste removal and limited ore 

mining, Jwaneng, Botswana, for Debswana. 

• US$126m (US$82m) to design and construct the WIN 

Revamp Project, India, for Oil & Natural Gas 

Corporation Ltd. 

• US$66m for engineering & supply of a single point 

mooring system, as well as testing and commissioning, 

Tanzania, for Tanzania Ports Authority. 

• US$41m (US$27m) to install a single point mooring 

system and submarine pipeline for Mangalore Refinery 

Petrolchemicals Limited, India, for Engineers India 

Limited. 

• US$41m (US$27m) to develop a multi-purpose berth 

to handle clean cargo, India, for Paradip Port Trust. 

• US$587m (US$382m) for engineering, procurement 

and construction of a 2 lane road tunnel, Jammu, 

Northern India, for IL&FS Transportation Networks Ltd. 

• US$84m (US$55m) to construct the Ramanujan IT 

Park, Chennai, India, for Tata Realty and 

Infrastructure. 

Habtoor Leighton Group 

• US$600m (US$129m) for the construction of the Al 

Mafraq Hospital, Abu Dhabi, UAE, for the Abu Dhabi 

Health Services Company. 

• US$328m (US$147m) for the construction of roads 

and services for the Khalifa Port, Abu Dhabi, UAE, for 

the Abu Dhabi Ports Company (ADPC). 

• US$199m (US$90m) for the construction of hotel, 

office and residential towers at DIFC, Dubai, UAE, for 

Daman Real Estate Capital Partners. 

• US$139m (US$62m) for the construction of the 

Qusahwira Building; an administration and 

accomodation complex, Abu Dhabi, UAE, for the Abu 

Dhabi Company for Onshore Oil Operations (ADCO). 

• US$130m (US$58m) for the construction a four level 

basement structure, Dubai, UAE, for Dubai 

International Real Estate. 

• US$110m (US$50m) for the construction of new bank 

headquarters, Abu Dhabi, UAE, for Abu Dhabi Islamic 

Bank. 

• US$2.41bn (US$1.08bn) for the construction of the 

Dubai Pearl, Dubai, UAE, for Pearl Dubai FZ LLC. 

• US$556m (US$125m) for the construction of the St 

Regis Hotel, Abu Dhabi, UAE, for the Tourism 

Development and Investment Company. 


Bustan mixed use development, Abu Dhabi, UAE, for 

the Al Hamid Group. 

• US$443m (US$120m) for the construction of the Dubai 

Tower, Qatar, for Dubai International Properties. 

• US$436m (US$98m) for the construction of the 72 

storey Landmark Tower, Abu Dhabi, UAE, for the 

Department of Presidential Affairs. 

• US$407m (US$183m) for the construction of the City 

Centre expansion at Doha, Qatar, for the Al Rayyan 

Tourism Investment Company. 

• US$404m (US$182m) for the construction of a JW 

Marriott Hotel, Abu Dhabi, UAE, for Abu Dhabi 

National Hotels. 

• US$349m (US$157m) for the construction of the Jafza 

Convention Centre, Dubai, UAE, for the Jebel Ali Free 

Zone Authority. 


Ghurair city expansion, Dubai, UAE, for Al Ghurair 

Centre LLC. 

• US$337m (US$152m) for the construction of the P9 

mixed use development, Abu Dhabi, UAE, for East & 

West International Group. 

• US$301m (US$135m) for the construction of Khalifa 

Port and industrial zone, Abu Dhabi, UAE, for the Abu 

Dhabi Ports Company (ADPC). 

• US$206m (US$93m) for the construction of the Duhail 

and Umm Qarn water reservoirs, Qatar, for Qatar 

General Electricity & Water Corporation. 

• US$112m (US$50m) to construct the Arzanah Medical 

Centre, Abu Dhabi, UAE, for Medical Holding 

Company LLC – Mubadala. 

• US$106m (US$48m) for the construction of the 

Samriya Tower, Qatar, for Sheikh Faisal Bin Qassam 

Al Thani. 

• US$105m (US$48m) for the construction of the Iris 

Bay commercial development, Dubai, UAE, for Sheth 

Estate (International) Ltd. 

Leighton Properties 

• Section 63: A 50% owner and joint venture 

development partner for a planned $900m 4-building 

phased commercial development in Civic, Canberra, 

ACT. 

• 567 Collins Street: A 50% joint venture development 

partner of a site where a $350m commercial building is 

proposed in Melbourne CBD, VIC. 

• Cranbourne West: An owner and developer of a 120 

hectare industrial site on Westernport Hwy, in 

Melbourne VIC. 

• Bay Road Cheltenham: Owner of units in a completed 

strata unit development in Melbourne VIC. 

• Hallam: Leighton Properties is a 50% owner and joint 

venture development partner of an industrial lot 

development underway in Melbourne VIC. 


• Deer Park: Leighton Properties is a joint venture 

development partner of a staged industrial lot 

development underway in Melbourne, VIC. 

• 486 Pacific Hwy: A 50% owner and joint venture 

development partner of a commercial office building 

proposed for redevelopment in St Leonards, Sydney, 

NSW. 

• Erskineville: A joint venture owner and developer of a 

site for a proposed 5 stage 320 unit medium rise 

residential development in Erskineville, Sydney NSW. 

• Hassall St (60 Station St): A 50% owner and joint 

venture development partner for a commercial building 

which has commenced construction in Parramatta, 

NSW. 

• Kingscliff: An agreement to develop an eco-tourism 

resort in Kingscliff, NSW. 

• King George Central: The developer of a commercial 

office tower which has been sold to Commonwealth 

Property Office Fund (CPA) for $210m and is under 

construction in Brisbane CBD, QLD. 

• HQ North Tower: A 50% owner of a completed 

33,000sqm commercial office tower on Wickham Street 

in Fortitude Valley, Brisbane, QLD. 

• Ipswich: An agreement with Ipswich City Properties to 

develop a $1 billion mixed use commercial, retail and 

residential development at Ipswich Town Centre, QLD. 

• Hamilton Harbour: Leighton Properties and Devine 

jointly own and are developing a $500m staged mixed 

use residential and office development in Hamilton, 

Brisbane QLD. The first 2 towers are under 

construction. 

• Mosaic: Leighton Properties holds an option on a site 

to develop 200 residential apartments in Church 

Street, Fortitude Valley, Brisbane, QLD. 

• Townsville: Leighton Properties and Devine jointly own 

a site where a mixed use residential, retail and office 

precinct is proposed for development in Townsville 

QLD. 

• Beckmans Green: An owner and developer of lots in a 

completed residential land subdivision at Noosaville, 

QLD. 

# # # # # # #

preliminary final report & june quarterly update - Leighton Holdings

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