Retail Entitlement Offer Booklet and Covering Letter - AJ Lucas

2014 Guidance
• Drilling
– Trading environment expected to remain challenging due to downturn in the coal industry and impact on mining services sector
– Capital expenditure to be minimised and margins maintained by further reducing operating costs
• E&C
– Focus on pipelines and related infrastructure, gathering systems, HDD and micro trenching / trenchless technology , with
peripheral activities exited
– EBITDA projections assume new contracts with revenue to AJL of approximately $75mm will be won, including 3 of which are
currently being exclusively negotiated and are expected to be awarded June 2013
• Consolidated position
– FY2014 Reported EBITDA is projected to be $20mm to $23mm
– FY2014 Underlying EBITDA is projected to be $26mm to $29mm
– It is assumed that legal and refinancing costs return to normal levels together with costs associated with redundancies, and that
poorly performing legacy contracts complete in FY14. Corporate overheads are expected to be further reduced post refinancing
• Board review
– The AJL Board will undertake a review of both the Board’s current composition and corporate governance
– It is expected that new directors will be appointed and that the roles of Chairman and CEO will be separated as an outcome of
this review
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