Financial Statement Analysis

Financial Statement Analysis Financial Statement Analysis page 1 Table of content Executive Summary 1. 2. 3. 3. 1.

3. 2. 4. Introduction Corporate Governance Financial Analysis Efficiency & Profitability Liquidity & Leverage Conclusion 3 4 6 8 8 12 17 19 Appendix Financial Statement Analysis page 2 Executive Summary This report analyses and assess the current and future profitability, efficiency and financial stability of the McMahon Holdings Ltd. (MAH) and will be compared with two other companies from the same industry, which are UGL Holdings (UGL) and Downer EDI (DOW).

The financial position and performances over the past five years are analysed by using key ratios, cash flow, common size and trend analysis. Furthermore, the companies’ financial health, long-term sustainability and future growth are being reviewed. The result of the financial analysis shows a very volatile performance of MAH. In particular, in the years 2009 and 2011 they suffered from several internal and external events. All these had a negative impact on their EBIT Margin, ROA, ROE and the liquidity ratios.

Especially, the debt ratio increased dramatically in the last three years.

In addition, the changes in the executive team and publishing of incorrect profit expectations show an unethical behaviour and a missing risk management. This report additionally shows that MAH’s current position is not positive and the prospect of MAH’s future performances has a negative trend mainly in the area of credit control and liquidity management. Recent announcement about revising earning guidelines in September this year have also caused a downfall of MAH’s market share price.

The recommendations to improve MAH’s financial situation would include, constantly decreasing the debt ratio and increase of liquidity. A sustainable growth rather than an extensive growth like the current aim of entering new markets would stabilise the company’s performance.

However, the information sources for this financial report is limited and based on past data. Since, changes in the industry and general economic effects cannot be predicted, therefore, all assumptions regarding the past and future behaviour of the three companies is limited to the available data.

Financial Statement Analysis page 3 1. Introduction The aim of this business report is to give a deeper insight into the capital goods sector in Australia and show the performance of three companies with different business structures over the last five years. The capital goods industry uses their manufacturing machinery to create capital goods and it contains aerospace, engineering and construction development projects.

1 The main reason why this particular segment was chosen lies in the fact, that the capital goods market is sensitive to fluctuation of economic activities.

This means that the performance of the companies in this sector will directly be affected by economic changes, like the global economic crises in 2009. 2 How these companies coped with these dependences and how they could overcome this difficult period is being shown further ahead in the report. The main company in this report is MAH with main pillars in mining, construction and operations in Australia, New Zealand, Asia and Africa. 3 MAH performance struggled hugely in the last five years and in addition they were forced to revise their earnings guidelines for 2013 in September 2012 and again after they appointed a new CEO.

One of the compared companies are UGL, a big player in the capital good sector with engineering, rail, resources and service divisions, and the other one is DOW a provider of engineering and infrastructure management and businesses in mining and rail. 5 6 In order to compare their performances, the figures shown ahead depicts, how each division contributed to the total revenue for each year. The focus lays in the mining and construction business, the two main sectors of MAH. 7 1 Reserve Bank of Australia 2012, Statement on Monetary Policy, 2012, Reserve Bank of Australia, Sydney. 2

Investopedia, Definition of ‘Capital Goods’, 10. 11.

2012, http://www. investopedia. com/terms/c/capitalgoods. asp#axzz2C3OH7YdK 3 Macmahon Holdings Limited, About us, 11. 11.

2012, http://www. macmahon. com. au/about-us. html 4 5 6 7 Macmahon Holdings Limited, 19. 09.

2012, ASX Announcement: Macmahon adjusts earnings guidance, 12. 11. 2012, http://www. macmahon. com.

au/asx-announcement-macmahon-adjusts-earnings-guidance. html UGL, Welcome from Richard Leupen, 11. 12. 2012, http://www. ugllimited.

com/index. php? option=com_content=view=3=32 Downer EDI Limited, Downer Group, 11. 2. 2012, http://www. downergroup. com/About-Us/ FinAnalysis, Annual Financials, 02.

11. 2012, http://www. aspectfinancial. com. au. ezproxy.

bond. edu. au Financial Statement Analysis page 4 MAH Divisons Mining Construction 49% 57% 46% 63% 53% 51% 43% 54% 37% 47% 2008 2009 2010 Figure 1 2011 2012 UGL Divisons others 23% 11% Construction 25% 23% 24% 77% 89% 75% 77% 76% 2008 2009 2010 Figure 2 2011 2012 DOW Divisons others Mining Construction 33% 24% 35% 19% 31% 16% 33% 21% 43% 29% 43% 46% 53% 46% 28% 2009 2010 Figure 3 2008 2011 2012 Financial Statement Analysis page 5 . Corporate Governance By analysing the implementation of the ASX Corporate Governance principles at MAH, several discrepancies were discovered, that show that MAH has not followed the recommendations religiously. Principle 1 – Lay solid foundations for management and oversight In the last three years, several changes in the board and in the executive team occurred. In 2010 Kenneth Scott-Mackenzie took over the role as a new chairman.

In the following year a new CFO was appointed, and then in September 2012 Ross Carroll resigned from his position as CEO of MAH.

Even though the reasons for these personnel changes have been disclosed to the public, it is obvious that the performance issues went worse since the changes have occurred. 8 Principle 2 – Structure the board to add value The Board has determined that Mr Vyril Vella is not an independent Director. Mr Vella is a nominee of Leighton Holdings Limited and was appointed on 19 November 2007 in accordance with the terms of a Memorandum of Understanding, signed in November 2007, between Leighton Holdings Limited and MAH. 9

In 2010, Mr Kenneth was appointed as the chairman of MAH, in addition to it he has a similar role at Murchinson Metals Ltd as well, which is another mining company. Furthermore, he is also a non-executive director of Adelaide Brighton Ltd, a construction business.

The different roles of Mr Kenneth lead to a conflict of responsibility and may have a negative impact on his decision making at MAH. 10 Principle 3 – Promote ethical and responsible decision-making The volatile behaviour of the overall performance of MAH puts the question on the company’s integrity and their decision making.

It raises doubts whether MAH is acting ethically by sending out positive messages in their financial reports, hence, misleading their shareholders, investors or customers. 11 8 FinAnalysis, Macmahon Announcement, 2008 – 2012, 30. 10.

2012, http://www. aspectfinancial. com. au. ezproxy. bond.

edu. au 9 http://www. bloomberg. com/news/2012-09-19/macmahon-slumps-on-project-cost-profit-forecast-sydneymover. html? cmpid=yhoo 10 FinAnalysis, Macmahon Annual Report, 2008 – 2012, 30.

10. 2012, http://www. aspectfinancial. com. au. ezproxy.

bond. edu. au 11

FinAnalysis, Macmahon Annual Report, 2008 – 2012, http://www. aspectfinancial. com.

au. ezproxy. bond. edu. au page 6 Financial Statement Analysis Principle 5 – Make timely and balanced disclosure Some of the expenses and additional costs including Hope Down 4 Rail Earthwork were not included in the annual financial report for the year 2012. On the contrary, 2012 financial report shows a very positive picture of MAH.

In September 2012 MAH was forced to announce a change in their earning guideline for 2013, wherein they admitted their wrong expense allocation. 12 13

Principle 7 – Recognise and manage risk The volatile performance of MAH that is described in detail in the next section indicates an insufficient implementation of risk and recognition management. On 19th September 2012, MAH announced a massive extension to the project cost due to additional expenses incurred on the Hope Downs 4 Rail Earthworks project in Western Australia. A comprehensive risk management could have helped in preventing such an underestimation of the cost. 14 12 FinAnalysis, Macmahon Announcement, 19. 09.

2012, Earnings guidance update, 30. 10. 2012, http://www. aspectfinancial. om. au.

ezproxy. bond. edu. au 13 ASX Corporate Governance Council, 2010, Corporate Governance Principles, 2th edition 14 FinAnalysis, Macmahon Announcement, 19. 09.

2012, Earnings guidance update, 30. 10. 2012, http://www. aspectfinancial. com.

au. ezproxy. bond. edu. au Financial Statement Analysis page 7 3.

Financial Analysis This part contains a detailed analysis of the companies’ ratios including explanation and assumption by using financial and economic data. 3. 1. Efficiency & Profitability Profitability is the goal of all businesses and efficiency derives the profitability.

A consistent profitability and efficiency are one of the measurable key factors for sustainability. These two factors can be analysed by looking at company’s sales growth, EBIT, ROE and ROA which give the real picture of a company’s internal profit.

15 Figure 4 UGL Sales Growth Vs EBIT Margin 40% 30% 20% 10% 0% -10% -20% Figure 5 7% 6% 5% 4% 3% 2008 2009 2010 2011 2012 2% 1% 0% Sales Growth EBIT Margin 15 Horngren, C, Harrison, W, 2010: Financial Accounting, 6th edition, Pearson Education Inc. , Frenchs Forest, NSW page 8 Financial Statement Analysis Downers Sales Growth Vs. EBIT Margin 5% 20% 15% 10% 5% 0% -5% Figure 6 6% 5% 4% 3% 2% 1% 2008 2009 2010 2011 2012 0% Sales Growth EBIT Margin Based on the figures 4, 5 and 6, there was a drastic decline in revenue and EBIT Margin for MAH in 2009 which is a direct impact of the global financial crisis (GFC) and major project deferrals. 16 On the contrary, UGL and DOW could survive the GFC keeping Sales growth and EBIT margin consistent. In fact DOW sales and EBIT margin rose in 2009 due to significant rail and mining projects win.

In 2010 there was a drop in sales mainly affecting drastically MAH (-34%) and UGL (-12%).

However, companies including DOW could manage to increase their profitability. It explains that MAH and UGL were focused on utilisation of their resources effectively. These figures say that the three companies worked to improve their financial health by focusing on utilization of resources and assets. 17 18 MAH and DOW seem to be more affected by floods in 2011 because both companies’ revenues come from the mining sector which is 46% of the overall revenue.

2012 was a profitable year for MAH and DOW because of substantial investment in the mining sector. In addition to that UGL continued its sales growth and profit. 16 17 18

FinAnalysis, Macmahon, Financial Report, 2008 – 2012 FinAnalysis, UGL, Financial Report, 2008 – 2012 FinAnalysis, Downer, Financial Report, 2008 – 2012 page 9 Financial Statement Analysis MAH – ROE vs ROA 20% 15% 10% ROE ROA 5% 0% 2008 2009 2010 Figure 7 2011 2012 The figure 7 shows that MAH has a similar trend between the return on equity (ROE) and the return on assets (ROA) with a slightly better efficiency making profit over shareholders’ investment. The overage ROA industry for the analysed companies is around 8%, the industry use of expensive machinery to perform their projects as railroads and mining using its assets to generate profit.

MAH has abnormal figures over the last five years, dropping from 9% to 4% in 2009, year with a poor performance on one of its construction projects and GFC. The follow year the company recovered its efficiency to create profit on equity by 10% and then experienced a huge drop to 2% in 2011, when again the floods, the write–off of a major project, the increase in depreciation expenses and the existence of a new amortization account, could explain the less efficient utilization of assets and shareholders’ investments.

19

On the contrary, UGL and DOW have healthier ROA and ROE over the same years, demonstrating strong and consistent level of efficiency generating profits from their assets and equities. (Figure 8) 20 21 19 20 21 FinAnalysis, Macmahon, Financial Report, 2008 – 2012 FinAnalysis, UGL, Financial Report, 2008 – 2012 FinAnalysis, Downer, Financial Report, 2008 – 2012 page 10 Financial Statement Analysis Figure 8 UGL tax expenses slightly varied between 20% to 25% over the last five years, whereas MAH tax expenses seems to be affected in 2009 by lower profits, tax concessions for R and government investment allowance.

In 2011 floods and the loss of projects for MAH and DOW caused negatives profit margins, therefore no tax expenses incurred. (Figure 9)22 23 Tax 30. 0% 25.

0% 20. 0% 15. 0% 10. 0% 5. 0% 0.

0% -5. 0% -10. 0% -15. 0% Figure 9 UGL MAH DOW 2008 2009 2010 2011 2012 22 23 FinAnalysis, Downer, Financial Report, 2008 – 2012 FinAnalysis, UGL, Financial Report, 2008 – 2012 page 11 Financial Statement Analysis 3. 2. Liquidity & Leverage Current Ratio 1.

50 1. 40 1. 30 1. 20 1. 10 1.

00 2008 2009 2010 Figure 10 UGL MacMahon Downer 2011 2012 Base on the figure 10, liquidity for the three companies differs dramatically.

This is another example of MAH being market sensitive as the market went down in 2009 due to GFC, so MAH. The company has difficulties to pay their liabilities, which bears a higher risk of insolvency and it also makes MAH’s risk management questionable. The reason for the drop in 2010 is a sudden increase of investment (more than 70%) along with entering new overseas operations in Nigeria and Asia. This new projects lead to additional current inventory in 2010 and explains the lowest level of current ratio.

Looking at the financing cash flow over the past 3 years (Figure 11), the expenses have been quadruplicated.

All the investment has been made in PP to cope up with the expenditure project in the new market. 24 Net Investing CF 184,943,000 81,019,000 42,282,000 50,549,000 48,659,000 2008 2009 Net Investing CF 2010 2011 Poly. (Net Investing CF) 2012 Figure 11 24 FinAnalysis, Macmahon , Financial Report, 2008 – 2012 page 12 Financial Statement Analysis Net Financing CF 119,534,000. 00 4,857,000. 00 2008 -40,012,000.

00 -76,354,000. 00 Net Financing CF Figure 12 2009 -13,661,000. 00 2010 2011 2012 Poly. (Net Financing CF) The high expenditure using borrows is a red flag for external investors.

Looking at the net financial cash flow (Figure 12), it is clear that most of the investment was made through external financing.

In 2011, MAH was able to balance the inflow and outflow of cash, which was mainly reached through a dramatic increase of accounts payable. In the following year, long term debts increased by 75% and the short-term debt by 35%, which lead to a peak in the net financing. Figure 73 The figure 13 shows the days payable Outstanding and days receivables. 2011 was an awful year for MAH, which explains an abrupt increase in the number of days’ payable outstanding to keep positive cash flow.

On the contrary, the performance of these two other companies does not show volatile behaviours.

Though MAH is very efficient collecting cash compared to other two companies, however, it looks like MAH strategy of delaying payments to its suppliers, to hold on cash longer so that it can have smooth profit margin regardless sales growth. 25 25 FinAnalysis, Macmahon, Financial Report, 2008 – 2012 page 13 Financial Statement Analysis Debt /Equity 2. 00 1. 60 UGL 1. 20 MAH DOW 0. 80 0.

40 2008 2009 2010 Figure 14 2011 2012 INTEREST COVER 8. 00 7. 00 6. 00 5. 00 4. 00 3.

00 2. 0 1. 00 0. 00 2008 2009 2010 Figure 15 UGL MAH DOW 2011 2012 UGL and Downer show a stable trend on DE (figure 14). UGL has a moderate average DE of 1.

2, and a healthy high interest cover ratio (figure 15), showing that the company is able to pay seven times its interest expenses on debt using profits. 26 On the other hand, Downer has the highest level of DE with average of 1. 6 and the lowest levels of interest cover, demonstrating that DOW has a high level of leverage. The company highly dependent on loans and shareholders capital to funds its assets and activities.

However, it has a stable interest cover ratio trend and average of 4, which makes it an efficient company to utilize its debts to generate revenues.

27 In 2011, MAH interest cover ratio 91% less than 2010, this decline confirms that the business had serious difficulties generating sufficient revenues to 26 27 FinAnalysis, UGL, Financial Report, 2008 – 2012 FinAnalysis, Downer, Financial Report, 2008 – 2012 page 14 Financial Statement Analysis pay its interest obligations, it probably due to the loss incurred with floods and the deferral of one the major project. (Figure 15) MAH – EBIT vs Debt/equity 100,000,000 80,000,000 1. 1 60,000,000 1. 03 40,000,000 20,000,000 0 2008 2009 EBIT 2010 2011 2012 DEBT /equity RATIO Figure 16 2. 10 1. 77 1.

80 1. 50 1. 12 0. 70 1. 20 0.

90 0. 60 0. 30 0. 00 MAH had an unstable trend on its debt to equity (DE) ratio (Figure 16) over the last five years. In 2010 the company dropped its DE up to 0.

70 to then sharply increase up to 1. 8 in 2012, this number reveals a dangerous level of leverage that could lead to bankruptcy if a well risk management is not put in place. In 2010 MAH with a low DE had troubles finding methods to finance its business after the low EBIT margin in 2009 for the GFC.

The increased trend for the last two years indicates that the company had utilized its leverage to its significant business growth. However, the figures tell different story.

Base on the trend looks like MAH in 2013 may have less cash flow, lower assets and higher liabilities than 2012. 28 28 FinAnalysis, Macmahon, Financial Report, 2008 – 2012 page 15 Financial Statement Analysis MAH – Share Price Figure 17 After MAH published the annual report 2012, its share price fell down; this indicates the market’s lack of confidence in MAH.

Overall, MAH is a high risk investment option to invest in because of its fluctuating behaviour as well its weak financial health to pay its debts and liabilities. 29 29 FinAnalysis, Mahmahon, Charts and Prices, 2008 – 2012 page 16 Financial Statement Analysis 4. Conclusion As a conclusion of this financial analysis, we can infer that MAH is not stable or reliable.

In addition, MAH has issues with its management, since it has been restructured a several times within a short period. This is resulting in the lack of internal control and an inconsistent strategy in improving their business performance.

Furthermore, such figures are sending a wrong sign to the market and misleading the stakeholders, the customers and the investors. This is a high time for MAH to focus on getting their financial figures stable on the long run rather than making them look nice. Instead of borrowing money to finance MAH investments, the company should be more focussed in paying back its debtors.

In order to have a fewer chances for negative margins, the company should manage its risk more efficiently. A good management is the key to increase efficiency in order to reduce expenses. On the other hand, companies like UGL and DOW that are also in the onstruction and mining industries, are much more stable than MAH. Due to the volatile performance of MAH, a reliable performance forecasting is not meaningful since it could not provide an insight about company’s future performance. Moreover, unpredictable market conditions make it even worse in order to have a clear picture of the company’s trend.

In general, this report relies on the official documents provided by the companies that drive the whole reports analysis process, and it may be a possibility that since the viewpoint is limited, the analysis may be biased.

From investor’s perspective, a financial and growth metrics of the companies will be really helpful: MAH is definitely not an option to invest in, because of its volatile profitability and poor efficiency along with high leverage and insufficient liquidity. So MAH is a high risk investment along with an uncertain level of dividends; DOW is medium risk and a highexpected dividend, lastly UGL is a low risk, but yields small dividends. Depending on the level of risk investors are willing to take; our recommendation is to invest in UGL or DOW.

With a good financial health, a reasonable leverage, consistent profitability and a strong liquidity make UGL a company as a first investment option, with DOW the second best option for future investments. Financial Statement Analysis page 17 Reference list ASX Group, 30.

10. 2012, http://www. asxgroup. com. au ASX Corporate Governance Council, 2010, Corporate Governance Principles, 2th edition Downer EDI Limited, 30.

10. 2012, http://www. downergroup. com FinAnalysis, Macmahon, Financial Report, 2008 – 2012, 30. 10. 2012, http://www.

aspectfinancial. com. au. ezproxy. bond. edu.

au FinAnalysis, UGL, Financial Report, 2008 – 2012, 30. 0. 2012, http://www. aspectfinancial. com.

au. ezproxy. bond. edu. au FinAnalysis, Downer, Financial Report, 2008 – 2012, 30. 10.

2012, http://www. aspectfinancial. com. au. ezproxy. bond.

edu. au Horngren, C, Harrison, W, 2010: Financial Accounting, 6th edition, Pearson Education Inc. , Frenchs Forest, NSW Investopedia, 30. 10. 2012, http://www.

investopedia. com Macmahon Holdings Limited, 30. 10. 2012, http://www. macmahon. com.

au UGL, 30. 10. 2012, http://www. ugllimited. com Reserve Bank of Australia 2012, Statement on Monetary Policy, 2012, Reserve Bank of Australia, Sydney.

Yahoo Finance, 30. 0. 2012, http://au. finance. yahoo.

com/ Financial Statement Analysis page 18 Appendix 1. MacMahons Annual Financials MacMahon Profit & Lost June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 902,771,000. 00 1,201,216,000. 00 1,358,490,000. 00 896,445,000.

00 1,089,409,000. 00 1,661,472,000. 00 4,147,000. 00 1,731,000. 00 1,825,000. 00 1,683,000.

00 1,220,000. 00 1,591,000. 00 906,918,000. 00 1,202,947,000. 00 1,360,315,000. 00 898,128,000.

00 1,090,629,000. 00 1,663,063,000. 00 -817,831,000. 00 -1,088,050,000. 00 -1,286,678,000. 00 -799,718,000.

00 -1,025,302,000. 00 -1,495,235,000. 0 89,087,000. 00 114,897,000. 00 73,637,000.

00 98,410,000. 00 65,327,000. 00 167,828,000. 00 -34,813,000. 00 -40,209,000. 00 -43,840,000.

00 -44,309,000. 00 -52,760,000. 00 -73,920,000. 00 0 0 0 0 -4,314,000. 00 -4,285,000.

00 -34,813,000. 00 -40,209,000. 00 -43,840,000. 00 -44,309,000. 00 -57,074,000. 00 -78,205,000.

00 54,274,000. 00 74,688,000. 00 29,797,000. 00 54,101,000. 00 8,253,000. 00 89,623,000.

00 3,470,000. 00 5,253,000. 00 2,376,000. 00 2,216,000. 00 1,597,000.

00 2,978,000. 00 -13,901,000. 00 -12,766,000. 00 -11,243,000. 00 -8,016,000. 00 -13,637,000.

00 -17,386,000. 0 0 0 0 0 0 0 -10,431,000. 00 -7,513,000. 00 -8,867,000. 00 -5,800,000. 00 -12,040,000.

00 -14,408,000. 00 43,843,000. 00 67,175,000. 00 20,930,000. 00 48,301,000. 00 -3,787,000.

00 75,215,000. 00 -13,800,000. 00 -17,797,000. 00 -2,651,000. 00 -10,652,000. 00 1,071,000.

00 -19,164,000. 00 -20,000. 00 -623,000. 00 -1,123,000. 00 -911,000. 00 3,761,000.

00 0 33,401,000. 00 48,755,000. 00 17,156,000. 00 36,738,000. 00 1,045,000.

00 56,051,000. 00 11,110,000. 00 0 0 1,154,000. 00 0 0 0 0 0 0 0 0 11,110,000. 00 0 0 1,154,000.

00 0 0 44,511,000. 00 48,755,000. 00 17,156,000. 00 37,892,000. 00 1,045,000.

0 56,051,000. 00 -15,715,000. 00 0 5,887,000. 00 11,110,000. 00 32,733,000. 00 33,401,000.

00 -29,363,000. 00 0 5,540,000. 00 0 67,175,000. 00 48,755,000. 00 -8,195,000. 00 -22,012,000.

00 0 0 13,622,000. 00 34,368,000. 00 0 0 20,930,000. 00 48,301,000. 00 17,156,000. 00 37,892,000.

00 0 0 -27,214,000. 00 0 -3,787,000. 00 1,045,000. 00 -29,545,000. 00 0 36,871,000.

00 0 75,215,000. 00 56,051,000. 00 Macmahon Holdings Limited (MAH) Operating Revenue Other Revenue Total Revenue (Ex. Int) Operating Expenses EBITDA Depreciation Amortisation Deprec & Amort EBIT Interest Revenue Interest Exp. incl. Cap Int.

Capitalised Interest Net Interest Expense EBT Before Abs. Tax Expense Outside Equity NPAT Before Abs. Abnormals Before Tax Tax on Abnormals Net Abnormals Reported NPAT Ordinary Dividends Preference Dividends Share of Associates Profit Net Capital Profits EBT Pre-Cap. Profits NPAT Pre-Cap. Profits Financial Statement Analysis page 19 MacMahon Balance Sheet Macmahon Holdings Limited (MAH) June/2007 Current Assets Cash Debtors Other Debtors Prepaid Expenses Inventories Curr. Investments Other CA Total Curr.

Assets Non-Current Assets Receivables Investments Inventories PP Accumulated Depr. Intangibles Ex.

Goodwill Goodwill FITB Other NCA Total NCA Total Assets June/2008 June/2009 June/2010 June/2011 June/2012 114,644,000. 00 120,098,000. 00 109,286,000. 00 102,193,000.

00 115,634,000. 00 134,894,000. 00 54,314,000. 00 73,143,000. 00 41,948,000. 00 38,205,000.

00 65,375,000. 00 148,084,000. 00 74,662,000. 00 107,856,000. 00 116,696,000.

00 46,237,000. 00 69,088,000. 00 200,587,000. 00 0 0 0 0 0 0 34,144,000. 00 33,452,000. 00 38,694,000.

00 37,047,000. 00 78,694,000. 00 45,311,000. 00 0 0 0 0 0 0 0 268,000. 00 6,606,000.

00 1,928,000. 00 2,778,000. 00 0 277,764,000. 00 334,817,000. 00 313,230,000.

00 225,610,000. 0 331,569,000. 00 528,876,000. 00 0 0 0 0 0 0 4,658,000. 00 5,886,000. 00 7,457,000.

00 27,431,000. 00 4,237,000. 00 11,127,000. 00 0 0 0 0 0 0 439,368,000. 00 463,447,000.

00 504,679,000. 00 526,638,000. 00 591,541,000. 00 762,100,000. 00 -183,701,000. 00 -205,510,000.

00 -235,945,000. 00 -240,331,000. 00 -280,340,000. 00 -344,346,000. 00 0 9,070,000. 00 19,927,000.

00 17,027,000. 00 12,801,000. 00 8,516,000. 00 20,512,000. 00 22,251,000. 00 22,550,000.

00 22,550,000. 00 22,550,000. 00 22,550,000. 00 1,204,000. 00 359,000. 00 876,000.

00 118,000. 00 3,367,000. 00 173,000. 00 0 0 0 0 0 0 282,041,000. 0 295,503,000.

00 319,544,000. 00 353,433,000. 00 354,156,000. 00 460,120,000. 00 559,805,000. 00 630,320,000.

00 632,774,000. 00 579,043,000. 00 685,725,000. 00 988,996,000. 00 Current Liabilities Accounts Payable Provisions S/T Debt Other CL Total CL Non-Current Liabilities Accounts Payable L/T Debt Provisions Other NCL Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Ex.

SPR Share Prem Reserves Retained Profits Other Equity Convertible Equity Outside Equity Total Equity 138,846,000. 00 168,533,000. 00 154,934,000. 00 118,429,000. 00 217,012,000.

00 306,306,000. 00 33,724,000. 00 53,107,000. 0 44,144,000. 00 40,768,000. 00 45,821,000. 00 83,179,000. 00 33,815,000. 00 32,550,000. 00 26,610,000. 00 15,764,000. 00 37,488,000. 00 55,200,000. 00 0 0 0 0 0 0 206,385,000. 00 254,190,000. 00 225,688,000. 00 174,961,000. 00 300,321,000. 00 444,685,000. 00 0 0 0 0 0 0 135,600,000. 00 116,771,000. 00 84,524,000. 00 42,653,000. 00 38,653,000. 00 162,274,000. 00 6,671,000. 00 8,359,000. 00 11,558,000. 00 21,691,000. 00 23,628,000. 00 25,226,000. 00 0 0 0 0 0 0 142,271,000. 00 125,130,000. 00 96,082,000. 00 64,344,000. 00 62,281,000. 00 187,500,000. 00 348,656,000. 00 379,320,000. 00 321,770,000. 00 239,305,000. 0 362,602,000. 00 632,185,000. 00 229,962,000. 00 240,880,000. 00 308,283,000. 00 307,963,000. 00 307,963,000. 00 307,963,000. 00 -308,000. 00 -1,228,000. 00 -288,000. 00 -2,284,000. 00 -9,057,000. 00 -15,574,000. 00 0 0 0 0 0 0 -19,576,000. 00 9,654,000. 00 192,000. 00 30,331,000. 00 24,250,000. 00 64,422,000. 00 0 0 0 0 0 0 0 0 0 0 0 0 1,071,000. 00 1,694,000. 00 2,817,000. 00 3,728,000. 00 -33,000. 00 0 211,149,000. 00 251,000,000. 00 311,004,000. 00 339,738,000. 00 323,123,000. 00 356,811,000. 00 Financial Statement Analysis page 20 MacMahon Cash flow June/2007 June/2008 June/2009 June/2010 June/2011 June/2012

Macmahon Holdings Limited (MAH) Operating Cashflows Rcpts from Customers Payments to Suppliers Dividends Received Interest Received Interest Paid Taxes Paid Other Op CF Net Operating CF Investing Cashflows Cash Paid for PP Sale of PP Purchase of Investments Proceeds from Invests Purch of Subsidiaries Proceeds from Subsid Loans Granted Loans Repaid Other Investing CF Net Investing CF Financing Cashflows Proceeds from Issues Proceeds from Borrow Repayment of Borrow Dividends Paid Other Financing CF Net Financing CF Net Increase in Cash Cash at Beginning Exchange Rate Adjs Other Cash Adjs Cash at End 988,625,000. 0 1,270,439,000. 00 1,517,825,000. 00 1,060,872,000. 00 1,117,728,000. 00 1,647,641,000. 00 -910,795,000. 00 -1,168,974,000. 00 -1,452,882,000. 00 -954,475,000. 00 -1,040,517,000. 00 -1,564,643,000. 00 0 0 0 0 0 0 3,470,000. 00 5,253,000. 00 2,376,000. 00 2,216,000. 00 1,597,000. 00 2,978,000. 00 -14,490,000. 00 -12,766,000. 00 -11,243,000. 00 -8,016,000. 00 -13,637,000. 00 -12,152,000. 00 -5,832,000. 00 -9,978,000. 00 -14,733,000. 00 2,111,000. 00 -856,000. 00 -4,833,000. 00 7,753,000. 00 4,312,000. 00 12,051,000. 00 14,394,000. 00 28,049,000. 00 17,776,000. 00 68,731,000. 00 88,286,000. 00 53,394,000. 00 117,102,000. 0 92,364,000. 00 86,767,000. 00 -33,009,000. 00 79,484,000. 00 0 0 -29,250,000. 00 0 0 0 0 17,225,000. 00 -46,520,000. 00 5,686,000. 00 0 0 0 0 0 0 -1,448,000. 00 -42,282,000. 00 -39,173,000. 00 3,531,000. 00 0 0 0 0 0 0 -14,907,000. 00 -50,549,000. 00 -39,510,000. 00 4,503,000. 00 0 0 0 0 0 0 -13,652,000. 00 -48,659,000. 00 -82,160,000. 00 1,141,000. 00 0 0 0 0 0 0 0 -81,019,000. 00 -186,356,000. 00 7,205,000. 00 0 0 -5,792,000. 00 0 0 0 0 -184,943,000. 00 1,515,000. 00 20,000,000. 00 -71,356,000. 00 -8,780,000. 00 0 -58,621,000. 00 27,335,000. 00 87,415,000. 00 -106,000. 00 0 114,644,000. 00 1,753,000. 00 56,072,000. 0 -85,863,000. 00 -11,974,000. 00 0 -40,012,000. 00 5,992,000. 00 114,644,000. 00 -538,000. 00 0 120,098,000. 00 58,399,000. 00 75,000,000. 00 -128,139,000. 00 -18,921,000. 00 0 -13,661,000. 00 -10,816,000. 00 120,098,000. 00 4,000. 00 0 109,286,000. 00 -320,000. 00 40,000,000. 00 -29,605,000. 00 -10,978,000. 00 -75,451,000. 00 -76,354,000. 00 -7,911,000. 00 109,286,000. 00 818,000. 00 0 102,193,000. 00 0 53,314,000. 00 -23,240,000. 00 -10,885,000. 00 -14,332,000. 00 4,857,000. 00 16,202,000. 00 102,193,000. 00 -2,761,000. 00 0 115,634,000. 00 0 224,053,000. 00 -77,000,000. 00 -10,940,000. 00 -16,579,000. 00 119,534,000. 0 21,358,000. 00 115,634,000. 00 -2,098,000. 00 0 134,894,000. 00 Financial Statement Analysis page 21 MacMahon Ratios Macmahon Holdings Limited (MAH) June/2007 Profitability ratios Net Profit Margin EBIT Margin EBITA Margin EBITDA Margin ROE ROA ROIC NOPLAT Margin Asset Management Ratios Invested Capital Turnover Inventory Turnover Asset Turnover PPE Turnover Depreciation/PP Depreciation/Revenue Wkg Capital/Revenue Working Cap Turnover Safety Ratios Financial Leverage Gross Gearing (D/E) Net Gearing Net Interest Exp. Cover Current Ratio Quick Ratio Gross Debt/CF Net Debt/CF NTA per Share BV per Share Cash per Share 3. 0% 6. 01% 6. 01% 9. 87% 15. 90% 7. 72% 15. 51% 4. 14% June/2008 June/2009 June/2010 June/2011 June/2012 4. 06% 6. 22% 6. 22% 9. 57% 19. 56% 9. 18% 21. 67% 4. 55% 1. 26% 2. 19% 2. 19% 5. 42% 5. 57% 3. 97% 8. 66% 1. 80% 4. 10% 6. 04% 6. 04% 10. 98% 10. 93% 7. 36% 16. 96% 4. 65% 0. 10% 0. 76% 1. 15% 6. 00% 0. 32% 1. 54% 3. 90% 0. 92% 3. 37% 5. 39% 5. 65% 10. 10% 15. 71% 6. 90% 17. 36% 4. 24% 374. 98% 476. 51% 480. 29% 364. 44% 424. 15% 409. 52% 2,644. 01% 3,590. 86% 3,510. 85% 2,419. 75% 1,384. 36% 3,666. 82% 161. 27% 190. 57% 214. 69% 154. 81% 158. 87% 168. 00% 353. 10% 465. 70% 505. 51% 313. 11% 350. 07% 397. 72% 7. 92% 8. 8% 8. 69% 8. 41% 8. 92% 9. 70% 3. 86% 3. 35% 3. 23% 4. 94% 4. 84% 4. 45% -1. 05% -0. 58% 0. 36% -3. 99% -4. 30% 0. 27% -9,553. 13% -17,356. 10% 27,918. 00% -2,505. 44% -2,322. 93% 36,946. 23% 265. 12% 80. 23% 25. 94% 5. 2 1. 35 1. 18 2. 33 0. 75 0. 36 0. 4 0. 22 251. 12% 59. 49% 11. 64% 9. 94 1. 32 1. 19 1. 61 0. 32 0. 41 0. 47 0. 22 203. 46% 35. 73% 0. 59% 3. 36 1. 39 1. 22 1. 72 0. 03 0. 36 0. 42 0. 15 170. 44% 17. 19% -12. 89% 9. 33 1. 29 1. 08 0. 71 -0. 53 0. 4 0. 46 0. 14 212. 22% 23. 56% -12. 22% 0. 69 1. 1 0. 84 1. 21 -0. 63 0. 39 0. 44 0. 16 277. 18% 60. 95% 23. 14% 6. 22 1. 19 1. 09 1. 54 0. 59 0. 44 0. 48 0. 18

Financial Statement Analysis page 22 MacMahon Ratios June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 6. 09% 2. 78% 14. 03% 88. 31% 86. 43% 3. 87% 10. 16 22. 23 51. 21 0. 17 2. 16 3. 09% 2. 85% 11. 40% 88. 19% 111. 91% 2. 88% 10. 4 11. 27 41. 63 0. 12 2. 42 4. 26% 4. 13% 13. 21% 108. 12% 112. 15% 4. 41% 15. 08 15. 56 48. 22 0. 11 1. 2 6. 00% 7. 22% 19. 92% 118. 19% 64. 22% 7. 54% 26. 37 21. 9 72. 71 0. 09 1. 5 8. 91% 2. 73% 18. 44% 49. 45% 39. 67% 11. 22% 9. 95 32. 53 67. 29 0. 19 2. 19 Cashflow Ratios Receivables/Op. Rev. Inventory/Trading Rev. Creditors/Op. Rev. Funds from Ops. /EBITDA Depreciation/Capex Capex/Operating Rev.

Days Inventory Days Receivables Days Payable Gross CF per Share Sales per Share Market Data Year End Share Price Market Cap. ($m) Net Debt ($m) Enterprise Value ($m) Valuation Multiples EV/EBITDA EV/EBIT Market Cap. /Rep NPAT Market Cap. /Trading Rev. Price/Book Value Price/Gross Cash Flow PER 6. 02% 3. 78% 15. 38% 87. 36% 105. 47% 3. 66% 13. 8 21. 96 56. 14 0. 13 1. 64 $1. 29 676. 66 54. 77 731. 43 $1. 66 891. 32 29. 22 920. 54 $0. 34 249. 46 1. 85 251. 31 $0. 54 399. 87 -43. 78 356. 1 $0. 56 410. 88 -39. 49 371. 39 $0. 58 424. 71 82. 58 507. 29 8. 21 13. 48 15. 2 0. 75 3. 2 9. 29 20. 48 8. 01 12. 33 18. 05 0. 74 3. 55 9. 4 18. 38 3. 41 8. 43 13. 65 0. 18 0. 8 3. 86 11. 11 3. 62 6. 58 10. 31 0. 45 1. 18 4. 87 11. 05 5. 68 45 -0. 38 1. 27 6. 54 400 3. 02 5. 66 7. 58 0. 26 1. 19 3. 01 7. 77 Financial Statement Analysis page 23 MacMahon DuPont Year 2008 2009 2010 2011 2012 2008 2009 Year 2010 2011 2012 2008 2009 Year 2010 2011 2012 2008 2009 Year 2010 Sales Growth 2011 2012 Current Ratio 1. 32 1. 19 Other (Abnormals)/EBT % 0. 00% 0. 00% 2. 39% 0. 00% 0. 00% 51. 21 1. 39 1. 22 41. 63 1. 29 Quick ratio 1. 08 48. 22 LIQUIDITY 0. 84 72. 71 1. 09 67. 29 4. 1% Days Payables Outstanding 1. 10 1. 19 EFFICIENCY Net Profit Margin 1. 26% 4. 10% 0. 0% 3. 37% 33. 06% 13. 09% -34. 01% 21. 53% 52. 51% Gross Margin 9. 42% 5. 29% 10. 79% 5. 88% 10. 01% EBIT Margin or Operating Profit Margin 6. 2% 2. 2% 6. 0% 0. 8% 5. 4% Return on Shareholders’ Funds ROE 19. 56% 19. 56% 5. 57% 5. 57% 10. 93% 10. 93% 0. 32% 0. 32% 15. 71% 15. 71% LEVERAGE 0 9. 18% Return on Assets ROA 3. 97% 7. 36% 1. 54% 6. 90% Total Asset Turnover Debt Ratio (Debt to Assets) 60. 18% Tax Expense 23. 83% 181. 08% 8. 90% 311. 23% 19. 69% -12. 98% 21. 38% 154. 80% 151. 12% 585. 05% Operating Cash Flow/NPAT 318. 75% 8838. 66% 50. 85% 103. 46% 265. 03% 41. 33% 70. 44% 674. 91% 52. 88% 112. 22% 60. 52% 63. 2% Fixed Asset Turnover 177. 18% 515. 49% 3. 50 4. 47 4. 74 2. 88 2. 61 Inventory Turnover 3,590. 86% 3,510. 85% 2,419. 75% 1,384. 36% 3,666. 82% Days Receivable Outstanding 19. 40% Debt / Equity Interest Cover or Times Interest Earned Interest to EBIT 17. 09% 37. 73% 14. 82% 165. 24% 1. 91 2. 15 1. 55 1. 59 1. 68 ACTIVITY Financing 22. 23 11. 27 15. 56 21. 90 32. 53 Financial Statement Analysis page 24 2. UGL Annual Financials UGL Profit & Lost UGL Limited (UGL) June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 Operating Revenue 2,549,521,000. 00 3,478,228,000. 00 4,754,386,000. 00 4,186,929,000. 00 4,285,096,000. 0 4,454,412,000. 00 Other Revenue 2,007,000. 00 10,275,000. 00 3,855,000. 00 3,477,000. 00 2,499,000. 00 2,414,000. 00 Total Revenue (Ex. Int) 2,551,528,000. 00 3,488,503,000. 00 4,758,241,000. 00 4,190,406,000. 00 4,287,595,000. 00 4,456,826,000. 00 Operating Expenses -2,349,433,000. 00 -3,233,988,000. 00 -4,473,368,000. 00 -3,908,227,000. 00 -3,984,503,000. 00 -4,141,220,000. 00 EBITDA 202,095,000. 00 254,515,000. 00 284,873,000. 00 282,179,000. 00 303,092,000. 00 315,606,000. 00 Depreciation -23,610,000. 00 -26,199,000. 00 -28,886,000. 00 -29,646,000. 00 -30,335,000. 00 -34,234,000. 00 Amortisation -7,703,000. 00 -17,470,000. 0 -25,009,000. 00 -29,536,000. 00 -29,424,000. 00 -29,102,000. 00 Deprec & Amort -31,313,000. 00 -43,669,000. 00 -53,895,000. 00 -59,182,000. 00 -59,759,000. 00 -63,336,000. 00 EBIT 170,782,000. 00 210,846,000. 00 230,978,000. 00 222,997,000. 00 243,333,000. 00 252,270,000. 00 Interest Revenue 4,907,000. 00 8,975,000. 00 4,921,000. 00 4,547,000. 00 5,017,000. 00 6,506,000. 00 Interest Exp. incl. Cap Int. -32,616,000. 00 -29,291,000. 00 -40,619,000. 00 -31,197,000. 00 -32,512,000. 00 -39,713,000. 00 Capitalised Interest 0 0 0 0 0 0 Net Interest Expense -27,709,000. 00 -20,316,000. 00 -35,698,000. 00 -26,650,000. 00 -27,495,000. 0 -33,207,000. 00 EBT Before Abs. 143,073,000. 00 190,530,000. 00 195,280,000. 00 196,347,000. 00 215,838,000. 00 219,063,000. 00 Tax Expense -33,664,000. 00 -53,149,000. 00 -44,980,000. 00 -52,316,000. 00 -57,170,000. 00 -49,687,000. 00 Outside Equity 1,355,000. 00 -1,276,000. 00 -1,250,000. 00 515,000. 00 -158,000. 00 -1,070,000. 00 NPAT Before Abs. 110,764,000. 00 136,105,000. 00 149,050,000. 00 144,546,000. 00 158,510,000. 00 168,306,000. 00 Abnormals Before Tax -18,063,000. 00 -5,000,000. 00 -6,574,000. 00 0 0 -41,275,000. 00 Tax on Abnormals 0 0 0 0 0 7,291,000. 00 Net Abnormals -18,063,000. 00 -5,000,000. 00 -6,574,000. 0 0 0 -33,984,000. 00 Reported NPAT 92,701,000. 00 131,105,000. 00 142,476,000. 00 144,546,000. 00 158,510,000. 00 134,322,000. 00 Ordinary Dividends Preference Dividends Share of Associates Profit Net Capital Profits EBT Pre-Cap. Profits NPAT Pre-Cap. Profits -72,275,000. 00 0 16,563,000. 00 0 143,073,000. 00 92,701,000. 00 -95,141,000. 00 0 12,784,000. 00 0 190,530,000. 00 131,105,000. 00 -105,498,000. 00 0 8,847,000. 00 0 195,280,000. 00 142,476,000. 00 -106,165,000. 00 0 4,344,000. 00 0 196,347,000. 00 144,546,000. 00 -116,233,000. 00 0 7,718,000. 00 0 215,838,000. 00 158,510,000. 00 -116,420,000. 00 0 -7,269,000. 0 0 219,063,000. 00 134,322,000. 00 Financial Statement Analysis page 25 UGL Balance Sheet UGL Limited (UGL) June/2007 Current Assets Cash Debtors Other Debtors Prepaid Expenses Inventories Curr. Investments Other CA Total Curr. Assets Non-Current Assets Receivables Investments Inventories PP&E Accumulated Depr. Intangibles Ex. Goodwill Goodwill FITB Other NCA Total NCA Total Assets 103,464,000. 00 342,477,000. 00 1,413,000. 00 87,391,000. 00 203,602,000. 00 0 5,427,000. 00 June/2008 228,812,000. 00 532,292,000. 00 698,000. 00 11,472,000. 00 289,729,000. 00 6,634,000. 00 1,990,000. 00 June/2009 253,185,000. 00 510,480,000. 0 901,000. 00 14,269,000. 00 304,122,000. 00 0 3,776,000. 00 June/2010 297,848,000. 00 430,437,000. 00 1,309,000. 00 11,151,000. 00 342,543,000. 00 0 2,281,000. 00 June/2011 236,688,000. 00 466,861,000. 00 601,000. 00 12,202,000. 00 385,998,000. 00 170,000. 00 831,000. 00 June/2012 177,375,000. 00 567,561,000. 00 1,071,000. 00 21,008,000. 00 359,747,000. 00 190,000. 00 23,025,000. 00 743,774,000. 00 1,071,627,000. 00 1,086,733,000. 00 1,085,569,000. 00 1,103,351,000. 00 1,149,977,000. 00 0 9,490,000. 00 7,936,000. 00 13,494,000. 00 12,161,000. 00 12,916,000. 00 7,474,000. 00 10,240,000. 00 16,580,000. 00 22,767,000. 00 41,868,000. 0 43,610,000. 00 0 0 0 0 0 0 278,162,000. 00 276,604,000. 00 309,106,000. 00 314,816,000. 00 319,733,000. 00 357,755,000. 00 -134,235,000. 00 -120,620,000. 00 -146,336,000. 00 -153,441,000. 00 -162,272,000. 00 -181,081,000. 00 38,464,000. 00 212,295,000. 00 250,219,000. 00 234,531,000. 00 193,566,000. 00 293,107,000. 00 581,293,000. 00 884,337,000. 00 965,272,000. 00 940,375,000. 00 845,981,000. 00 1,017,807,000. 00 31,254,000. 00 37,198,000. 00 48,237,000. 00 47,039,000. 00 54,113,000. 00 39,421,000. 00 7,014,000. 00 0 0 0 0 14,137,000. 00 809,426,000. 00 1,309,544,000. 00 1,451,014,000. 00 1,419,581,000. 00 1,305,150,000. 0 1,597,672,000. 00 1,553,200,000. 00 2,381,171,000. 00 2,537,747,000. 00 2,505,150,000. 00 2,408,501,000. 00 2,747,649,000. 00 Current Liabilities Accounts Payable Provisions S/T Debt Other CL Total CL Non-Current Liabilities Accounts Payable L/T Debt Provisions Other NCL Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Ex. SPR Share Prem Reserves Retained Profits Other Equity Convertible Equity Outside Equity Total Equity 419,843,000. 00 134,387,000. 00 27,545,000. 00 0 581,775,000. 00 534,224,000. 00 221,657,000. 00 5,305,000. 00 0 761,186,000. 00 490,548,000. 00 279,310,000. 00 2,743,000. 00 1,200,000. 0 773,801,000. 00 524,055,000. 00 220,965,000. 00 2,178,000. 00 1,592,000. 00 748,790,000. 00 509,421,000. 00 244,339,000. 00 1,153,000. 00 1,626,000. 00 756,539,000. 00 513,783,000. 00 286,360,000. 00 6,382,000. 00 3,730,000. 00 810,255,000. 00 0 0 0 0 0 0 343,124,000. 00 507,117,000. 00 574,793,000. 00 529,225,000. 00 413,765,000. 00 606,354,000. 00 33,443,000. 00 56,909,000. 00 61,050,000. 00 61,658,000. 00 61,815,000. 00 125,332,000. 00 0 0 7,815,000. 00 6,361,000. 00 4,960,000. 00 30,326,000. 00 376,567,000. 00 564,026,000. 00 643,658,000. 00 597,244,000. 00 480,540,000. 00 762,012,000. 00 958,342,000. 00 1,325,212,000. 0 1,417,459,000. 00 1,346,034,000. 00 1,237,079,000. 00 1,572,267,000. 00 465,950,000. 00 891,219,000. 00 894,092,000. 00 904,911,000. 00 905,875,000. 00 908,775,000. 00 551,000. 00 -12,218,000. 00 8,979,000. 00 -1,101,000. 00 -41,824,000. 00 -55,649,000. 00 0 0 0 0 0 0 129,666,000. 00 176,991,000. 00 215,968,000. 00 254,577,000. 00 301,877,000. 00 316,554,000. 00 0 0 0 0 0 0 0 0 0 0 0 0 -1,309,000. 00 -33,000. 00 1,249,000. 00 729,000. 00 5,494,000. 00 5,702,000. 00 594,858,000. 00 1,055,959,000. 00 1,120,288,000. 00 1,159,116,000. 00 1,171,422,000. 00 1,175,382,000. 00 Financial Statement Analysis page 26 UGL Cash Flow

UGL Limited (UGL) June/2007 Operating Cashflows Rcpts from Customers Payments to Suppliers Dividends Received Interest Received Interest Paid Taxes Paid Other Op CF Net Operating CF Investing Cashflows Cash Paid for PP&E Sale of PP&E Purchase of Investments Proceeds from Invests Purch of Subsidiaries Proceeds from Subsid Loans Granted Loans Repaid Other Investing CF Net Investing CF Financing Cashflows Proceeds from Issues Proceeds from Borrow Repayment of Borrow Dividends Paid Other Financing CF Net Financing CF Net Increase in Cash Cash at Beginning Exchange Rate Adjs Other Cash Adjs Cash at End June/2008 June/2009 June/2010 June/2011 June/2012 2,782,854,000. 00 3,761,059,000. 00 5,118,134,000. 00 4,578,589,000. 00 4,576,869,000. 00 4,786,858,000. 00 -2,470,030,000. 00 -3,527,207,000. 00 -4,854,797,000. 00 -4,279,040,000. 00 -4,365,216,000. 00 -4,601,820,000. 00 10,879,000. 00 8,110,000. 00 8,230,000. 00 5,298,000. 00 6,311,000. 00 10,409,000. 00 4,397,000. 00 8,921,000. 00 4,955,000. 00 4,471,000. 00 5,122,000. 00 6,538,000. 00 -30,424,000. 00 -26,111,000. 00 -37,821,000. 00 -23,854,000. 00 -26,635,000. 00 -32,570,000. 00 -46,284,000. 00 -53,469,000. 00 -55,255,000. 00 -56,019,000. 0 -45,814,000. 00 -58,405,000. 00 -121,186,000. 00 0 0 0 0 0 130,206,000. 00 171,303,000. 00 183,446,000. 00 229,445,000. 00 150,637,000. 00 111,010,000. 00 -56,048,000. 00 3,934,000. 00 0 290,000. 00 -168,639,000. 00 0 0 0 1,716,000. 00 -218,747,000. 00 -64,350,000. 00 13,172,000. 00 0 0 -438,240,000. 00 0 0 0 -6,915,000. 00 -496,333,000. 00 -56,445,000. 00 1,315,000. 00 0 0 0 22,529,000. 00 0 0 -10,631,000. 00 -43,232,000. 00 -46,801,000. 00 2,480,000. 00 0 0 -3,346,000. 00 0 -9,750,000. 00 0 -3,577,000. 00 -60,994,000. 00 -51,467,000. 00 3,469,000. 00 0 0 -16,004,000. 00 0 0 0 -5,198,000. 00 -69,200,000. 00 -68,016,000. 00 1,082,000. 00 -22,009,000. 0 0 -103,090,000. 00 0 0 0 -9,881,000. 00 -201,914,000. 00 42,563,000. 00 455,541,000. 00 -334,859,000. 00 -60,633,000. 00 -3,791,000. 00 98,821,000. 00 10,280,000. 00 95,782,000. 00 -4,270,000. 00 0 101,792,000. 00 348,858,000. 00 780,812,000. 00 -588,682,000. 00 -83,780,000. 00 -4,992,000. 00 452,216,000. 00 127,186,000. 00 101,792,000. 00 -2,271,000. 00 0 226,707,000. 00 2,873,000. 00 184,793,000. 00 -201,633,000. 00 -103,499,000. 00 -1,829,000. 00 -119,295,000. 00 20,919,000. 00 226,707,000. 00 4,320,000. 00 0 251,946,000. 00 5,370,000. 00 130,000,000. 00 -146,746,000. 00 -105,937,000. 00 -6,654,000. 00 -123,967,000. 00 44,484,000. 00 251,946,000. 0 155,000. 00 0 296,585,000. 00 964,000. 00 193,647,000. 00 -200,326,000. 00 -113,038,000. 00 -9,537,000. 00 -128,290,000. 00 -46,853,000. 00 296,585,000. 00 -13,044,000. 00 0 236,688,000. 00 2,900,000. 00 309,763,000. 00 -141,763,000. 00 -124,263,000. 00 -19,042,000. 00 27,595,000. 00 -63,309,000. 00 236,688,000. 00 902,000. 00 0 174,281,000. 00 Financial Statement Analysis page 27 UGL Ratio UGL Limited (UGL) June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 Profitability ratios Net Profit Margin EBIT Margin EBITA Margin EBITDA Margin ROE ROA ROIC NOPLAT Margin 4. 34% 6. 70% 7. 00% 7. 93% 18. 58% 8. 59% 49. 95% 5. 35% 3. 91% 6. 06% 6. 56% 7. 2% 12. 89% 6. 58% 37. 99% 4. 86% 3. 13% 4. 86% 5. 38% 5. 99% 13. 32% 7. 00% 43. 28% 4. 21% 3. 45% 5. 33% 6. 03% 6. 74% 12. 48% 6. 64% 44. 75% 4. 59% 3. 70% 5. 68% 6. 37% 7. 07% 13. 60% 7. 54% 44. 90% 4. 84% 3. 78% 5. 66% 6. 32% 7. 09% 14. 39% 7. 15% 40. 36% 4. 98% Asset Management Ratios Invested Capital Turnover 932. 88% 781. 64% 1,027. 34% 974. 77% 927. 91% 810. 89% Inventory Turnover 1,252. 21% 1,200. 51% 1,563. 32% 1,222. 31% 1,110. 13% 1,238. 21% Asset Turnover 164. 15% 146. 07% 187. 35% 167. 13% 177. 92% 162. 12% PPE Turnover 1,771. 40% 2,229. 86% 2,920. 92% 2,594. 53% 2,721. 37% 2,521. 26% Depreciation/PP&E 8. 49% 9. 47% 9. 35% 9. 42% 9. 9% 9. 57% Depreciation/Revenue 0. 93% 0. 75% 0. 61% 0. 71% 0. 71% 0. 77% Wkg Capital/Revenue 3. 38% 2. 50% 1. 31% 0. 98% 2. 60% 3. 79% Working Cap Turnover 2,961. 80% 4,001. 00% 7,608. 23% 10,184. 94% 3,850. 84% 2,639. 98% Safety Ratios Financial Leverage Gross Gearing (D/E) Net Gearing Net Interest Exp. Cover Current Ratio Quick Ratio Gross Debt/CF Net Debt/CF NTA per Share BV per Share Cash per Share 261. 10% 62. 31% 44. 92% 6. 16 1. 28 0. 93 2. 46 1. 77 -0. 17 4. 33 0. 75 225. 50% 48. 53% 26. 86% 10. 38 1. 41 1. 03 2. 68 1. 48 -0. 25 6. 47 1. 4 226. 53% 51. 55% 28. 95% 6. 47 1. 4 1. 01 2. 68 1. 5 -0. 59 6. 81 1. 54 216. 13% 45. 85% 20. 15% 8. 7 1. 45 0. 99 2. 47 1. 08 -0. 1 7. 01 1. 8 205. 60% 35. 42% 15. 21% 8. 85 1. 46 0. 95 1. 8 0. 77 0. 76 7. 05 1. 43 233. 77% 52. 13% 37. 04% 7. 6 1. 42 0. 98 2. 55 1. 81 -0. 85 7. 06 1. 07 Financial Statement Analysis page 28 UGL Ratio June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 Cashflow Ratios Receivables/Op. Rev. Inventory/Trading Rev. Creditors/Op. Rev. Funds from Ops. /EBITDA Depreciation/Capex Capex/Operating Rev. Days Inventory Days Receivables Days Payable Gross CF per Share Sales per Share Market Data Year End Share Price Market Cap. ($m) Net Debt ($m) Enterprise Value ($m) Valuation Multiples EV/EBITDA EV/EBIT Market Cap. Rep NPAT Market Cap. /Trading Rev. Price/Book Value Price/Gross Cash Flow PER 13. 43% 7. 99% 16. 47% 154. 79% 42. 12% 2. 20% 29. 15 49. 03 60. 11 1. 08 18. 26 15. 30% 8. 33% 15. 36% 91. 88% 40. 71% 1. 85% 30. 4 55. 86 56. 06 1. 18 21. 38 10. 74% 6. 40% 10. 32% 92. 44% 51. 18% 1. 19% 23. 35 39. 19 37. 66 1. 31 28. 93 10. 28% 8. 18% 12. 52% 106. 16% 63. 34% 1. 12% 29. 86 37. 52 45. 69 1. 3 25. 29 10. 89% 9. 01% 11. 89% 69. 83% 58. 94% 1. 20% 32. 88 39. 77 43. 39 1. 38 25. 76 12. 74% 8. 08% 11. 53% 58. 63% 50. 33% 1. 53% 29. 48 46. 51 42. 1 1. 44 26. 8 $16. 65 2,292. 62 267. 2 2,559. 83 $12. 31 2,010. 33 283. 61 2,293. 94 $10. 35 1,700. 96 324. 5 2,025. 31 $13. 55 2,238. 17 233. 55 2,471. 73 $13. 88 2,294. 32 178. 23 2,472. 55 $12. 41 2,054. 66 435. 36 2,490. 02 12. 67 14. 99 25. 1 0. 9 3. 85 15. 2 20. 99 9. 01 10. 88 15. 19 0. 58 1. 9 10. 51 14. 71 7. 11 8. 77 11. 83 0. 36 1. 52 7. 89 11. 41 8. 76 11. 08 15. 54 0. 53 1. 93 10. 4 15. 52 8. 16 10. 16 14. 46 0. 54 1. 96 9. 97 14. 56 7. 89 9. 87 15. 18 0. 46 1. 75 8. 56 12. 25 Financial Statement Analysis page 29 UGL DuPont Year 2010 Year 2010 Year 2010 Year 2010 2008 2009 2011 2012 2008 2009 2011 2012 2008 2009 2011 2012 2008 2009 2011 2012 1. 41 1. 03 Other (Abnormals)/EBT % 2. 6% 3. 4% 0. 0% 0. 0% 15. 5% 56. 06 Current Ratio 1. 40 1. 45 1. 6 Acid Test or Quick Ratio 1. 01 0. 99 0. 95 Days Payables Outstanding 37. 66 45. 69 LIQUIDITY 43. 39 EFFICIENCY 1. 42 0. 98 42. 10 3. 90% Net Profit Margin 3. 13% 3. 45% 3. 70% 3. 78% 36. 4% Sales Growth 36. 7% -11. 9% Gross Margin 5. 9% 6. 7% 2. 3% 4. 0% 7. 0% 7. 0% 7. 0% EBIT Margin or Operating Profit Margin 6. 1% 4. 9% 5. 3% 5. 7% Expense Management 5. 7% Return on Shareholders’ Funds ROE 12. 89% 13. 32% 12. 48% 13. 60% 14. 39% 12. 89% 13. 30% 12. 47% 13. 53% 14. 32% LEVERAGE 13. 3% 12. 5% 13. 6% 14. 4% 0. 56 Tax Expense 27. 9% 1. 26 23. 0% 26. 6% 26. 5% Operating Cash Flow/NPAT 1. 15 1. 19 1. 08 22. 7% 1. 02 Debt Ratio (Debt to Assets) 0. 56 0. 54 0. 1 Debt / Equity 1. 25 1. 27 1. 16 1. 06 Interest Cover or Times Interest Earned 7. 20 5. 69 7. 15 7. 48 Interest to EBIT 13. 9% 17. 6% 14. 0% 13. 4% 1. 34 6. 35 15. 7% 6. 58% Return on Assets ROA 7. 00% 6. 64% 7. 54% 7. 15% Total Asset Turnover 1. 4607 1. 8735 1. 6713 1. 7792 1. 6212 ACTIVITY Fixed Asset Turnover 22. 2986 29. 2092 25. 9453 27. 2137 25. 2126 0. 57 Inventory Turnover 1311% 1507% 1209% 1094% Days Receivable Outstanding 1111% 46. 5100 Financing 55. 8600 39. 1900 37. 5200 39. 7700 Financial Statement Analysis page 30 2. Downer Annual Financials Downer Profit & Lost Downer EDI Limited (DOW) Operating Revenue Other Revenue Total Revenue (Ex.

Int) Operating Expenses EBITDA Depreciation Amortisation Deprec & Amort EBIT Interest Revenue Interest Exp. incl. Cap Int. Capitalised Interest Net Interest Expense EBT Before Abs. Tax Expense Outside Equity NPAT Before Abs. Abnormals Before Tax Tax on Abnormals Net Abnormals Reported NPAT Ordinary Dividends Preference Dividends Share of Associates Profit Net Capital Profits EBT Pre-Cap. Profits NPAT Pre-Cap. Profits June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 5,312,443,000. 00 5,434,528,000. 00 5,834,668,000. 00 5,779,584,000. 00 6,613,550,000. 00 7,903,906,000. 00 38,239,000. 00 21,347,000. 00 14,989,000. 00 47,080,000. 00 28,297,000. 0 16,560,000. 00 5,350,682,000. 00 5,455,875,000. 00 5,849,657,000. 00 5,826,664,000. 00 6,641,847,000. 00 7,920,466,000. 00 -4,931,018,000. 00 -5,055,884,000. 00 -5,402,002,000. 00 -5,345,873,000. 00 -6,139,117,000. 00 -7,330,990,000. 00 419,664,000. 00 399,991,000. 00 447,655,000. 00 480,791,000. 00 502,730,000. 00 589,476,000. 00 -129,704,000. 00 -113,818,000. 00 -133,917,000. 00 -149,553,000. 00 -199,251,000. 00 -222,861,000. 00 -7,724,000. 00 -3,745,000. 00 -7,851,000. 00 -10,606,000. 00 -11,243,000. 00 -23,134,000. 00 -137,428,000. 00 -117,563,000. 00 -141,768,000. 00 -160,159,000. 00 -210,494,000. 00 -245,995,000. 00 282,236,000. 00 282,428,000. 0 305,887,000. 00 320,632,000. 00 292,236,000. 00 343,481,000. 00 11,233,000. 00 16,838,000. 00 18,156,000. 00 18,103,000. 00 14,180,000. 00 10,746,000. 00 -68,593,000. 00 -67,320,000. 00 -65,018,000. 00 -72,268,000. 00 -78,489,000. 00 -82,257,000. 00 0 0 0 0 0 0 -57,360,000. 00 -50,482,000. 00 -46,862,000. 00 -54,165,000. 00 -64,309,000. 00 -71,511,000. 00 224,876,000. 00 231,946,000. 00 259,025,000. 00 266,467,000. 00 227,927,000. 00 271,970,000. 00 -63,310,000. 00 -66,104,000. 00 -69,649,000. 00 -69,115,000. 00 10,946,000. 00 -82,176,000. 00 0 0 0 -95,000. 00 -143,000. 00 -129,000. 00 161,566,000. 00 165,842,000. 00 189,376,000. 00 197,257,000. 0 238,730,000. 00 195,045,000. 00 -152,233,000. 00 0 0 -264,400,000. 00 -266,573,000. 00 -82,279,000. 00 92,165,000. 00 0 0 70,100,000. 00 0 0 -60,068,000. 00 0 0 -194,300,000. 00 -266,573,000. 00 -82,279,000. 00 101,498,000. 00 165,842,000. 00 189,376,000. 00 2,957,000. 00 -27,843,000. 00 112,766,000. 00 -66,899,000. 00 0 4,638,000. 00 0 224,876,000. 00 101,498,000. 00 -82,703,000. 00 -11,154,000. 00 23,607,000. 00 0 231,946,000. 00 165,842,000. 00 -95,455,000. 00 -11,331,000. 00 10,154,000. 00 0 259,025,000. 00 189,376,000. 00 -97,565,000. 00 0 18,022,000. 00 0 266,467,000. 00 2,957,000. 00 0 0 26,395,000. 00 0 227,927,000. 00 -27,843,000. 0 0 -10,998,000. 00 45,853,000. 00 0 271,970,000. 00 112,766,000. 00 Financial Statement Analysis page 31 Downer Balance Sheet Downer EDI Limited (DOW) June/2007 Current Assets Cash Debtors Other Debtors Prepaid Expenses Inventories Curr. Investments Other CA Total Curr. Assets Non-Current Assets Receivables Investments Inventories PP Accumulated Depr. Intangibles Ex. Goodwill Goodwill FITB Other NCA Total NCA Total Assets 242,746,000. 00 841,423,000. 00 250,040,000. 00 20,844,000. 00 177,543,000. 00 18,075,000. 00 8,011,000. 00 June/2008 245,790,000. 00 766,972,000. 00 348,674,000. 00 34,327,000. 00 204,043,000. 00 16,261,000. 00 13,600,000. 0 June/2009 June/2010 June/2011 June/2012 299,463,000. 00 385,126,000. 00 288,575,000. 00 296,691,000. 00 735,141,000. 00 1,113,658,000. 00 1,261,377,000. 00 1,539,525,000. 00 430,317,000. 00 70,220,000. 00 51,621,000. 00 58,889,000. 00 20,842,000. 00 21,887,000. 00 35,540,000. 00 46,109,000. 00 198,396,000. 00 193,138,000. 00 192,568,000. 00 282,738,000. 00 12,154,000. 00 12,708,000. 00 6,078,000. 00 14,211,000. 00 25,388,000. 00 20,665,000. 00 19,733,000. 00 16,625,000. 00 1,558,682,000. 00 1,697,625,000. 00 1,787,288,000. 00 1,817,402,000. 00 1,855,492,000. 00 2,254,788,000. 00 518,000. 00 0 14,949,000. 00 0 0 1,922,000. 00 92,208,000. 00 54,030,000. 00 30,883,000. 0 58,364,000. 00 68,331,000. 00 68,687,000. 00 0 0 0 0 0 0 1,355,668,000. 00 1,453,917,000. 00 1,530,389,000. 00 1,629,259,000. 00 1,887,622,000. 00 2,060,016,000. 00 -601,514,000. 00 -791,729,000. 00 -684,085,000. 00 -767,183,000. 00 -832,607,000. 00 -926,546,000. 00 7,710,000. 00 4,925,000. 00 5,558,000. 00 5,798,000. 00 22,912,000. 00 59,063,000. 00 561,841,000. 00 573,800,000. 00 604,412,000. 00 583,616,000. 00 566,283,000. 00 518,588,000. 00 197,079,000. 00 183,682,000. 00 87,450,000. 00 123,280,000. 00 137,949,000. 00 71,271,000. 00 7,835,000. 00 7,026,000. 00 6,245,000. 00 5,464,000. 00 4,684,000. 00 3,553,000. 00 1,621,345,000. 00 1,485,651,000. 0 1,595,801,000. 00 1,638,598,000. 00 1,855,174,000. 00 1,856,554,000. 00 3,180,027,000. 00 3,183,276,000. 00 3,383,089,000. 00 3,456,000,000. 00 3,710,666,000. 00 4,111,342,000. 00 Current Liabilities Accounts Payable Provisions S/T Debt Other CL Total CL Non-Current Liabilities Accounts Payable L/T Debt Provisions Other NCL Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Ex. SPR Share Prem Reserves Retained Profits Other Equity Convertible Equity Outside Equity Total Equity 848,791,000. 00 993,478,000. 00 946,024,000. 00 987,266,000. 00 1,117,726,000. 00 1,388,995,000. 00 232,121,000. 00 279,287,000. 00 226,821,000. 00 229,929,000. 0 305,345,000. 00 385,444,000. 00 193,685,000. 00 146,708,000. 00 216,839,000. 00 272,167,000. 00 165,121,000. 00 180,938,000. 00 0 0 0 16,010,000. 00 12,809,000. 00 28,464,000. 00 1,274,597,000. 00 1,419,473,000. 00 1,389,684,000. 00 1,505,372,000. 00 1,601,001,000. 00 1,983,841,000. 00 877,000. 00 918,000. 00 2,192,000. 00 713,000. 00 2,812,000. 00 3,955,000. 00 516,093,000. 00 439,646,000. 00 594,334,000. 00 617,012,000. 00 567,665,000. 00 437,972,000. 00 218,553,000. 00 126,875,000. 00 66,491,000. 00 90,052,000. 00 96,803,000. 00 67,874,000. 00 0 0 0 0 0 0 735,523,000. 00 567,439,000. 00 663,017,000. 00 707,777,000. 00 667,280,000. 00 509,801,000. 0 2,010,120,000. 00 1,986,912,000. 00 2,052,701,000. 00 2,213,149,000. 00 2,268,281,000. 00 2,493,642,000. 00 1,065,317,000. 00 1,081,631,000. 00 1,078,791,000. 00 1,118,675,000. 00 1,423,897,000. 00 1,249,127,000. 00 -50,271,000. 00 -127,061,000. 00 -85,124,000. 00 -107,893,000. 00 -121,581,000. 00 -51,752,000. 00 0 0 0 0 0 0 154,861,000. 00 241,794,000. 00 336,721,000. 00 231,974,000. 00 139,969,000. 00 241,737,000. 00 0 0 0 0 0 178,603,000. 00 0 0 0 0 0 0 0 0 0 95,000. 00 100,000. 00 -15,000. 00 1,169,907,000. 00 1,196,364,000. 00 1,330,388,000. 00 1,242,851,000. 00 1,442,385,000. 00 1,617,700,000. 00 Financial Statement Analysis page 32 Downer Cash Flow

Downer EDI Limited (DOW) June/2007 Operating Cashflows Rcpts from Customers Payments to Suppliers Dividends Received Interest Received Interest Paid Taxes Paid Other Op CF Net Operating CF Investing Cashflows Cash Paid for PP Sale of PP Purchase of Investments Proceeds from Invests Purch of Subsidiaries Proceeds from Subsid Loans Granted Loans Repaid Other Investing CF Net Investing CF Financing Cashflows Proceeds from Issues Proceeds from Borrow Repayment of Borrow Dividends Paid Other Financing CF Net Financing CF Net Increase in Cash Cash at Beginning Exchange Rate Adjs Other Cash Adjs Cash at End June/2008 June/2009 June/2010 June/2011 June/2012 5,616,750,000. 00 5,808,923,000. 00 6,448,412,000. 00 6,206,952,000. 00 7,275,150,000. 00 8,584,764,000. 00 -5,475,178,000. 00 -5,466,204,000. 00 -6,103,693,000. 00 -5,905,166,000. 00 -7,025,409,000. 00 -8,158,966,000. 00 7,041,000. 00 12,377,000. 00 11,285,000. 00 13,067,000. 00 13,368,000. 00 24,292,000. 00 10,888,000. 0 16,909,000. 00 18,227,000. 00 18,327,000. 00 14,275,000. 00 6,914,000. 00 -69,058,000. 00 -66,338,000. 00 -60,220,000. 00 -69,274,000. 00 -73,399,000. 00 -76,860,000. 00 15,713,000. 00 -29,636,000. 00 -16,374,000. 00 -24,758,000. 00 -18,360,000. 00 -15,673,000. 00 0 0 38,827,000. 00 -34,882,000. 00 0 0 106,156,000. 00 276,031,000. 00 336,464,000. 00 204,266,000. 00 185,625,000. 00 364,471,000. 00 -127,762,000. 00 30,640,000. 00 -72,654,000. 00 12,060,000. 00 -67,555,000. 00 0 0 0 4,072,000. 00 -221,199,000. 00 -260,101,000. 00 79,559,000. 00 0 48,000. 00 -30,683,000. 00 64,565,000. 00 0 0 2,891,000. 00 -143,721,000. 00 -291,745,000. 00 25,059,000. 0 -961,000. 00 0 -51,576,000. 00 0 -1,793,000. 00 0 0 -321,016,000. 00 -211,709,000. 00 163,424,000. 00 -29,323,000. 00 0 -32,336,000. 00 0 -34,452,000. 00 0 0 -144,396,000. 00 -447,431,000. 00 127,045,000. 00 -3,948,000. 00 7,962,000. 00 0 0 -3,201,000. 00 0 0 -319,573,000. 00 -380,565,000. 00 44,095,000. 00 0 4,027,000. 00 -1,000,000. 00 129,192,000. 00 0 1,261,000. 00 0 -202,990,000. 00 176,856,000. 00 1,271,044,000. 00 -1,224,120,000. 00 -36,172,000. 00 0 187,608,000. 00 72,565,000. 00 164,359,000. 00 -3,260,000. 00 0 233,664,000. 00 647,000. 00 2,495,000. 00 818,387,000. 00 1,260,517,000. 00 -889,401,000. 00 -1,157,909,000. 00 -54,518,000. 0 -72,080,000. 00 0 0 -124,885,000. 00 33,023,000. 00 7,425,000. 00 233,664,000. 00 -1,256,000. 00 0 239,833,000. 00 48,471,000. 00 239,833,000. 00 3,919,000. 00 0 292,223,000. 00 0 270,185,000. 00 0 855,441,000. 00 972,576,000. 00 2,320,430,000. 00 -764,183,000. 00 -1,148,133,000. 00 -2,463,159,000. 00 -66,003,000. 00 -44,273,000. 00 -11,161,000. 00 0 0 4,000,000. 00 25,255,000. 00 50,355,000. 00 -149,890,000. 00 85,125,000. 00 292,223,000. 00 1,034,000. 00 0 378,382,000. 00 -83,593,000. 00 378,382,000. 00 -12,557,000. 00 0 282,232,000. 00 11,591,000. 00 282,232,000. 00 2,866,000. 00 0 296,689,000. 00 Financial Statement Analysis page 33 Downer Ratio

Downer EDI Limited (DOW) June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 Profitability ratios Net Profit Margin EBIT Margin EBITA Margin EBITDA Margin ROE ROA ROIC NOPLAT Margin Asset Management Ratios Invested Capital Turnover Inventory Turnover Asset Turnover PPE Turnover Depreciation/PP Depreciation/Revenue Wkg Capital/Revenue Working Cap Turnover Safety Ratios Financial Leverage Gross Gearing (D/E) Net Gearing Net Interest Exp. Cover Current Ratio Quick Ratio Gross Debt/CF Net Debt/CF NTA per Share BV per Share Cash per Share 3. 04% 5. 31% 5. 46% 7. 90% 13. 81% 6. 59% 21. 31% 3. 94% 2. 85% 5. 20% 5. 27% 7. 36% 12. 93% 6. 34% 22. 54% 3. 77% 3. 05% 5. 24% 5. 38% 7. 67% 13. 38% 6. 61% 19. 06% 3. 94% 3. 41% 5. 55% 5. 73% 8. 32% 15. 87% 7. 17% 22. 25% 4. 25% 3. 61% 4. 42% 4. 59% 7. 60% 16. 55% 7. 1% 23. 57% 4. 46% 2. 33% 4. 35% 4. 64% 7. 46% 11. 38% 5. 88% 19. 44% 3. 33% 540. 49% 597. 79% 483. 48% 523. 08% 528. 25% 584. 33% 2,992. 20% 2,663. 42% 2,940. 92% 2,992. 46% 3,434. 40% 2,795. 49% 167. 06% 170. 72% 172. 47% 167. 23% 178. 23% 192. 25% 704. 42% 820. 69% 689. 43% 670. 43% 626. 87% 697. 32% 9. 57% 7. 83% 8. 75% 9. 18% 10. 56% 10. 82% 2. 44% 2. 09% 2. 30% 2. 59% 3. 01% 2. 82% 4. 42% 3. 30% 5. 40% 3. 44% 1. 98% 1. 96% 2,260. 38% 3,034. 86% 1,852. 39% 2,903. 28% 5,047. 09% 5,092. 92% 271. 82% 60. 67% 39. 92% 4. 92 1. 22 1. 08 2. 12 1. 39 1. 87 3. 64 0. 76 266. 08% 49. 01% 28. 47% 5. 59 1. 2 1. 05 1. 86 1. 08 1. 9 3. 68 0. 76 254. 29% 60. 7% 38. 46% 6. 53 1. 29 1. 14 2. 28 1. 44 2. 18 4. 02 0. 9 278. 07% 71. 54% 40. 56% 5. 92 1. 21 1. 08 2. 31 1. 31 1. 94 3. 69 1. 14 257. 26% 50. 80% 30. 80% 4. 54 1. 16 1. 04 1. 77 1. 07 1. 99 3. 36 0. 67 254. 15% 38. 26% 19. 92% 4. 8 1. 14 0. 99 1. 27 0. 66 2. 42 3. 77 0. 69 Financial Statement Analysis page 34 Downer Ratio June/2007 June/2008 June/2009 June/2010 June/2011 June/2012 Cashflow Ratios Receivables/Op. Rev. Inventory/Trading Rev. Creditors/Op. Rev. Funds from Ops. /EBITDA Depreciation/Capex Capex/Operating Rev. Days Inventory Days Receivables Days Payable Gross CF per Share Sales per Share Market Data Year End Share Price Market Cap. $m) Net Debt ($m) Enterprise Value ($m) Valuation Multiples EV/EBITDA EV/EBIT Market Cap. /Rep NPAT Market Cap. /Trading Rev. Price/Book Value Price/Gross Cash Flow PER 15. 84% 3. 34% 15. 98% 33. 73% 101. 52% 2. 40% 12. 2 57. 81 58. 32 1. 02 16. 19 14. 11% 3. 75% 18. 28% 85. 68% 43. 76% 4. 79% 13. 7 51. 51 66. 73 0. 94 16. 12 12. 60% 3. 40% 16. 21% 77. 01% 45. 90% 5. 00% 12. 41 45. 99 59. 18 1. 02 16. 68 19. 27% 3. 34% 17. 08% 62. 77% 70. 64% 3. 66% 12. 2 70. 33 62. 35 1. 11 16. 73 19. 07% 2. 91% 16. 90% 49. 68% 44. 53% 6. 77% 10. 63 69. 62 61. 69 1. 14 18. 1 19. 48% 3. 58% 17. 57% 72. 23% 58. 56% 4. 81% 13. 06 71. 09 64. 14 1. 12 18. 25 $7. 36 2,362. 9 467. 03 2,829. 62 $6. 87 2,233. 33 340. 56 2,573. 89 $5. 59 1,850. 72 511. 71 2,362. 43 $3. 60 1,211. 70 504. 05 1,715. 75 $3. 70 1,587. 67 444. 21 2,031. 88 $3. 13 1,343. 08 322. 22 1,665. 30 6. 74 10. 03 23. 28 0. 44 2. 02 7. 05 14. 43 6. 43 9. 11 13. 47 0. 41 1. 87 7. 08 14. 46 5. 28 7. 72 9. 77 0. 32 1. 39 5. 2 10. 61 3. 57 5. 35 397. 02 0. 21 0. 97 3. 15 6. 09 4. 04 6. 95 -0. 24 1. 1 3. 83 5. 66 2. 83 4. 85 11. 9 0. 17 0. 83 2. 76 7. 36 Financial Statement Analysis page 35 Downer DuPont Year 2008 2009 2010 2011 2012 2008 2009 Year 2010 2011 2012 2008 2009 Year 2010 2011 2012 2008 2009 Year 2010 Sales Growth 2011 2012 Current Ratio 1. 20 1. 5 Other (Abnormals)/EBT % 0. 0% 0. 0% 72. 9% 117. 0% 30. 3% 66. 73 1. 29 1. 14 59. 18 1. 21 1. 08 62. 35 LIQUIDITY 1. 16 1. 04 61. 69 1. 14 Acid Test or Quick Ratio 0. 99 64. 14 3. 04% Days Payables Outstanding EFFICIENCY Net Profit Margin 3. 24% 3. 39% 3. 59% 2. 46% 2. 30% 7. 36% -0. 94% 14. 43% 19. 51% Gross Margin 6. 97% 7. 42% 7. 50% 7. 17% 7. 25% EBIT Margin or Operating Profit Margin 5. 20% 5. 24% 5. 55% 4. 42% 4. 35% Return on Shareholders’ Funds ROE 12. 93% 12. 93% 13. 38% 13. 38% 15. 87% 15. 87% 16. 55% 16. 55% 11. 38% 11. 38% LEVERAGE 8. 87% Return on Assets ROA 9. 04% 9. 28% 7. 88% 8. 35% Total Asset Turnover Debt Ratio (Debt to Assets) 0. 2 Tax Expense 23. 41% 1. 66 22. 77% 1. 78 21. 56% 1. 04 -3. 75% 0. 78 23. 92% 1. 87 1. 66 4. 20 23. 84% Operating Cash Flow/NPAT 0. 61 1. 54 5. 69 17. 59% 0. 64 1. 78 7. 15 13. 99% 0. 61 1. 57 7. 48 13. 36% 0. 61 Fixed Asset Turnover 1. 54 6. 35 15. 74% Financing 8. 21 2663% 51. 51 6. 89 2941% 45. 99 6. 70 2992% 70. 33 6. 27 3434% 69. 62 6. 97 2795% 71. 09 Inventory Turnover Days Receivable Outstanding Debt / Equity Interest Cover or Times Interest Earned Interest to EBIT 1. 71 1. 72 1. 67 1. 78 1. 92 ACTIVITY Financial Statement Analysis page 36 3. Figures and Graphs Efficiency ratios Gross Margin 15. 0% 10. 0% 5. 0% 0. 0% UGL MAH DOW 0. 0% 100. 0% 50. % Sales Growth UGL MAH 2008 2009 2010 2011 2012 DOW 2008 2009 2010 2011 2012 -50. 0% Net Profit Margin 5. 00% 4. 00% 3. 00% UGL MAH DOW EBIT Margin 8. 0% 6. 0% 4. 0% UGL MAH DOW 2008 2