Investor Teleconference Transcript, Scott Charlton, 3 September 2007

Leighton Holdings Investor Teleconference, September 2007TranscriptQuestion: John Purtell, Macquarie BankAnd will you be consolidating, you mentioned revenues of more than $14bn so you’reimplying Scott that you’ll be consolidating some of the revenues or were you just talkingin an overall sense there because the equity accounting presumably you’re not bringingwork in hand and revenues to the Leighton accounts.Speaker: Scott CharltonYou know how we show the associates, we’ll be showing then the associates the impactto the revenue so we’ll make it clear what revenue is coming in from Habtoor as well asthe work in hand, we can put that out for you, it’s too big an acquisition to leave it on theside there so we’ll bring in or highlight the impact of the associate revenue how it’stravelling as well as the work in hand.Question: John Purtell, Macquarie BankTwo final questions just in relation to the style of contracts. Can you confirm that themajority of Al Habtoor’s contracts are cost plus, are there any fixed price in there andlastly as far as the capacity constraints go and obviously that market is significantlycapacity constrained in terms of labour, I understand as you mentioned that most of theirresources are internal but how does Leighton and Al Habtoor intend to grow and I guesstake advantage of that growth in the region when labour is seemingly still so constrained.Speaker: Bill WildWell the contracts are a mixture of contracts, there’s fixed price contracts, fixed pricelump sum contracts and there’s also a range of other contracts I mean the SaadiyatIsland contracts we’re talking about essentially alliance contracts, so there’s a wholerange and a mix of contracts, there’s no one particular dominant one.Speaker: Scott CharltonEven when they’re fixed price though John they do a lot of provisional sums.Speaker: Bill WildMost of the fitout and the E&M there tend to be big provisional sum items, some of thejobs that amounts to 40% or 50% of the total contract value are provisional sums whichare effectively cost plus. The resourcing side I mean Al Habtoor having been providingits own labour and a lot of its own sub-services for many years have the capacity to growthat, I mean there is no shortages of labour into the Middle East if you’re set up to do itand in Dubai itself Al Habtoor has three major work camps of its own that are well locatedaround the town, so bringing extra labour in isn’t the problem that’s what makes it such agood approach to risk management is that there is really no shortage of labour comingout of India, Pakistan, Philippines and that sort of thing and there’s no real price inflationon that labour, I mean we can get plenty of it for what we’re paying now. It’s the otherservices that are really the problem and if you go out to the subcontract market thesubcontractors are fairly stretched and as I said earlier Al Habtoor does all its ownformwork, does all its own concreting so it’s not really stuck in that marketplace.Speaker: Scott CharltonI think as well, the issues around the management and the supervisors and the ability togrow there and we think with Al Habtoor Leighton you’ll attract the best of both worldsLeighton Holdings Limited ABN 57 004 482 982 Page 10 of 15