Investor Presentation United Kingdom and United States of America 12 – 18 July 2011 Disclaimer and Important Notice
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Investor Presentation United Kingdom and United States of America 12 – 18 July 2011 Disclaimer and Important Notice Information, including forecast financial information in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities of other instruments in NRW Holdings Limited or any other company. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecast and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies may occur which are outside the control of NRW Holdings Limited. Before making or varying any decision in relation to holding, purchasing or selling shares in NRW Holdings Limited, investors should consider the appropriateness of that investment in light of their individual investment objectives and financial situation and should seek their own independent professional advice. 2 Executive Summary Operational Highlights Purchase of Comiskey Earthmoving in Queensland for $82M plus Tyre Stock. Award of $780M coking coal contract with Middlemount Coal. NRW’s first coal project. Signed 5 year Framework Agreement with Rio Tinto Iron Ore for future earthworks involvement on 333 programme Multiple contract wins with external clients for Action Drill and Blast. Financial Trading Update Record order book of $1.664 billion Successfully raised $70 million from institutional and $5.6 million from retail investors. Confirm guidance on revenue in excess of $700 million for FY11 NPAT confirmed as per previous guidance and expected at the lower end of broker forecast range of $40-45 million 3 Safety and Training Performance As of June 30 2011 NRW employs a workforce in excess of 2000, comprising direct staff and sub contractors. NRW have world class safety systems and procedures in place and have recently implemented a new HSET reporting system which has improved communications between site and the corporate office. Although our injury statistics have leveled out, the increase in employee HSE training will drive this trend down in 2011 NRW has enhanced it’s training portfolio and is geared to delivering more training to all employees in 2011. • Staff employed in an on-site supervisory role with NRW are enrolled in a Diploma of Management. Currently 175 supervisors are enrolled on the program. • All NRW site based employees will complete Certificate II in Surface Extraction Operations NRW’s Indigenous content is currently 10% of total workforce with a target of 12% by 2012. 4 Services and Products Civil Contracting Mining Services Drill and Blast Mechanical / Provides construction Provides a wide range Provides Drill and Blast Fabrication services including rail of contracting services services for the Mining Provides equipment formation, bulk including earth moving, Services and Civil repairs, sand blasting earthworks, detailed waste stripping, ore Contracting divisions as and painting services, road and tunnel haulage, drill and blast, well as for external service truck and tanker construction, as well as related clients. fabrication and import greenfields mine ancillary services. services (including development and quarantine cleaning) concrete installation. 5 Key Clients 6 Civil Division: Current Projects Western Turner Brockman Client: Rio Tinto Iron Ore Model: Joint Venture with Eastern Guruma Pty Ltd Value: Award Value: $160 million Scope: Bulk earthworks for the overland conveyor at Western Turner Syncline; and civil works at the Brockman 4 Mine including haul roads, ROM and ROM wall construction and access roads. Herb Elliot Port Client: Fortescue Metals Group Value: Approximately $36 million Scope: Earthworks and concrete works contract as part of Stages 1 and 2 of the T155 Expansion. Cape Lambert Stockyard and Car Dumper Earthworks Client: Rio Tinto Iron Ore Model: Joint venture with NYFL Value: Award Value: $101 million Scope: Bulk earthworks for a stockyard, car dumper and stacker reclaimer at Rio Tinto’s Port Lambert 7 Civil Division: Current Projects Karara Earthworks and Concrete Client: Karara Mining (Gindalbie Metals) Value: Approximately $190 million Scope: Bulk earthworks and concrete construction work for the iron ore crushing and processing facility. Works include the construction of major concrete foundations and structures for the plant and associated infrastructure. Main Line Rail Duplication ECI Client: Fortescue Metals Group Value: TBA currently under ECI Scope: Earthworks to duplicate 50 kilometres of rail by realigning the existing access road, includes substantial drill and blast. Port Hedland Inner Harbour Project Client: BHP Billiton Iron Ore Value: Award value: $158 million Scope: Earthworks for 13 kilometres of rail duplication, 23 kilometres of access road construction and 700,000m³ cut and borrow to fill. 8 Civil Division: Current Projects Great Eastern Highway Upgrade Client: Main Roads WA Model: Alliance with Leighton and GHD Value: $225 million Scope: Earthworks for the upgrade of the Great Eastern Highway in metropolitan Perth between Kooyong Road and Tonkin Highway Macedon Drilling Support Client: BHP Billiton Petroleum Value: Approximately $3.2 million Scope: Preparation earthworks allowing for water bore installation. These early works included access road construction, drill pads and preparation of lined ponds. Morawa - Mullewa Rail ECI Client: Westnet Rail Model: ECI - Joint Venture with Laing O’Rourke and Brookfield Multiplex Value: To be determined Scope: JV selected for early contract involvement to formulate the optimisation of design specifications for significant track rectification, replacement and upgrade as well as associated earthworks. 9 Civil Division: Preferred Contractor Framework Agreement Client: Rio Tinto Iron Ore Tenure: Five years Scope: The projects covered in the agreement are a part of Rio Tinto’s 333 Expansion and this agreement places NRW in a preferred contractor position for these works. Beyond the delivery of the earthworks packages, the framework also encompasses NRW in an ECI role. Current: Works currently being undertaken as part of this agreement: Port Stream - The NRW / NYFL Joint Venture was awarded the Cape Lambert Port Car Dumper and Bulk Earthworks package in March 2011, valued at $100 million and employing an anticipated 196 people. Western Pilbara Stream - The NRW / Eastern Guruma Joint Venture was awarded the Western Turner Brockman earthworks package in April 2011, valued at $160 million and with an anticipated workforce of over 550. Future: Future potential work packages covered under the agreement for the Port Stream consist of similar bulk earthworks as part of the planned future upgrade of Rio Tinto’s Cape Lambert Port to 333Mt/a, currently awaiting funding approval. Under the Western Pilbara Stream there are three further earthworks packages for three future mine developments planned by Rio Tinto, also awaiting funding approval as part of the 333 Programme. 10 Mining Services: Current Projects Middlemount Coal Client: Middlemount Coal* Value: Approximately $780 million (over five years) Scope: The mining contract is for all mining activities including clearing and grubbing, long and short term detailed mine scheduling and planning, as well as drilling and blasting including design and load & haul. *Middlemount Coal is a joint venture between Gloucester Coal Ltd and Macarthur Coal Ltd Christmas Creek / Cloudbreak Client: Fortescue Metals Group Value: Approximately $120 million per annum Scope: NRW undertaking the drill and blast; load and haul for the continuous mining operations at pits within Christmas Creek and Cloudbreak Mines. Karara Mining Client: Karara Mining (Gindalbie Metals) Value: Approximately $2 million per month Scope: Further to performance on the preceding civil and concrete package, NRW is now also providing mining services including pit development and early works. 11 Mining Services: Current Projects Western Turner Syncline Client: Rio Tinto Iron Ore Model: Joint Venture with Eastern Guruma Pty Ltd Value: Award Value: $200 million (over 4 years) Scope: Involves the engineering design and development of site infrastructure, mining of the iron ore deposit and ore haulage to Tom Price via a purpose- built 15.5 kilometre-long road Bootu Creek Client: OM Holdings Value: Approximately $60 million per annum (3 + 2 year contract) Scope: This contract mining operation involves the mining of approximately 33 million tonnes per annum. NRW hold responsibility for drill and blast, load and haul, ROM pad management, waste management and dewatering Simandou Project Client: Rio Tinto Iron Ore Value: Approximately $35 million per annum Scope: NRW have been contracted for the civil works required for the exploration phase of this project. These works include preparation of access roads and construction of drill pads along the steep inclines of the site. 12 Action Drill & Blast Division formed in March 2010. Initially formed to service internal contracts at Rio Tinto’s Western Turner Syncline and BHP Billiton Iron Ore’s RGP5. It now employs 150 people operates 21 drill rigs and has undertaken work on 12 contracts. Commenced our first external contract to Karara Mining Limited in September 2010 Commenced drilling on first coal project at Macarthur Coal/Gloucester Coal JV’s Middlemount Operation in February 2011, has since been awarded 2nd coal project at Gregory