Investor Investor Presentation Presentation MARCH 2010 MARCH - PowerPoint PPT Presentation

Investor Investor Presentation Presentation MARCH 2010 MARCH 2010 MARCH 2010 MARCH 2010 Jules Pemberton Chief Operating Officer Mark Wallace Chief Financial Officer

Share Register Share Register FPO Shares: 251 million Share Price History: Market Cap: $388 million 12 Month High: $2.16 P/E Ratio: 9.77* 12 Month Low: $0.32 Sector P/E ratio: 12.99* Last (19/03/10): $1.545 * Source Commsec 2

Key Clients – – Civil & Mining Civil & Mining Key Clients Customer Mix (Mining) Customer Mix (Civil) Other Other Rio Tinto 4% 3% BHP 21% OM Holdings 23% 34% Rio Tinto 36% Citic Pacific FMG 53% 26% 3

st Half FY2010 Business Overview 1 st Half FY2010 Business Overview 1 Revenue Contribution Geographical Spread International NT 5% 12% Promac Action 2% 4% Mining 32% Civil 62% WA 83% Business Mix (Mining) Business Mix (Civil) Roads Managanese CIVIL: Business Mix 9% 35% Roads 9% Rail Bulk Earthworks Rail Iron Ore 33% Bulk Earthworks 54% 33% 54% 65% Port Infrastructure Port Infrastructure 4% 4% 4

Safety Safety Performance At Feb 2010 NRW employs a  workforce of 1600 personnel comprising direct staff and sub 3000000 40 contractors. 35 2500000 Safety performance is an  30 important fundamental factor in 2000000 25 retaining key clients and the 1500000 20 awarding of new contracts. 15 NRW has world class safety  1000000 systems and procedures. 10 500000 5 0 0 FY 2005 FY 2006 FY 2007 FY 2008 FY2009 YTD 2010 Man hours TRIFR (Total Recordable Injury Frequency Rate) LTIFR (Lost Time Injury Frequency Rate) 5

Human Resources Human Resources Training & Development Initiatives Key Management Ongoing extensive Safety Training programmes  Jeff McGlinn – Chief Executive Officer attended by all staff Julian Pemberton – Chief Operating Officer Indigenous Cultural Awareness workshops  Willie Rooney – MD Civil & Mining attended by all staff. Mark Wallace – Chief Financial Officer Accredited Cert.2 in Metaliferous Mining  attended by 700 staff to date. Mal Stewart – GM Civil Operations Diploma of Management for all Supervisors and  Simon Ridley – GM Mining Operations site managers – attended by 150 staff Bob McNair – GM HSE & Training Power Up programme providing indigenous  Keith Bounsell – GM Action Mining Services groups extensive training to enter the mining sector Keith Bassett – GM Human Resources Commitment to Dept. of Employment for intake  of 100 indigenous employees each year. Employee Retention and Mix 0 Dec 09 Dec 08 Total Staff 830 585 Indigenous Staff 11% 10% Project Staff 90% 90% Retention Rates 90% 90% Sub Contractors 800 600 6

Operation Overview Operation Overview 7

Civil Division – – Key Projects Key Projects Civil Division RGP5 (South) - BHPBIO Rail duplication - 54km of the southern section from Cowra  siding to Yandi mine Contract includes: Rail formations, drill and blast, track and  signals and a 300 man camp JV with Laing O’Rourke & John Holland  Chichester Deviation contract awarded by variation in Jan  2010 for $120m Cape Preston – CP Mining Port infrastructure and mine site earthworks.  6 million cubic meters of drill and blast rock  Contract includes: 3.7km breakwater construction, plant site  and bulk earthworks JV with VDM Group  Peak workforce in excess of 400  8

Civil Division – – Key Projects Key Projects Civil Division Karara Concrete Works – Gindalbie Metals Contract includes: All preliminary construction works including site  drains, roads, retention ponds and all-weather airstrip 40,000 cubic metres of concrete for concentrator base  400-500 NRW personnel on site  Project value: $120 million  Christmas Creek Rail - FMG Recommencement of Cloudbreak to Christmas Creek Mine Rail  Spur Contract. Port Haven - BHPBIO Camp earthworks, drainage and minor concrete works for a new  camp adjacent to the Port Hedland airport Area H – Variation awarded November 2009  9

Mining Services – – Key Projects Key Projects Mining Services Hope Downs Mining – Rio Tinto Drill and blast, excavation, haulage and waste dump  management services In-pit works including pre-development pit establishment,  waste pre-stripping, waste cutback and remnant ore mining Christmas Creek - FMG Drill & Blast, excavation of mine overburden, load and  haul Significant mine expansion proposed  10

Mining Services – – Key Projects Key Projects Mining Services Bootu Creek – OM Holdings Drill and blast, excavation, haulage waste dump  management services and crusher feed 3 + 2 year contract term  Simandou Project – Rio Tinto Renegotiated contract extension through to December  2010 plus one year option NRW onsite since July 2007  11

Promac / Action Mining Promac / Action Mining Promac Product sales only business in FY2010  Lighting towers and Gensets demand strong in mining sector  Quotations increasing on service and water trucks as activity in  resource sector picks up. Action Mining Services Slow to recover but ahead of expectations to Dec 09  Repairs and Maintenance business now increasing output  Contracts secured for quarantine cleaning works associated with  Gorgon Project. 12

Revenue and Order Book Outlook Revenue and Order Book Outlook 13

14 Revenue Outlook Revenue Outlook

Revenue & EBIT Margin Revenue & EBIT Margin Consistent industry leading margins Consistent industry leading margins 13% 12% 12% 11% 509.6 8% 471.2 277.6 186.2 76.7 2005 2006 2007 2008 2009 Revenue ($m) Margin (%) 15

Order Book: Civil & Mining Order Book: Civil & Mining Strongest order book in NRW’ Strongest order book in NRW ’s history s history $m's 900 800 700 600 500 400 300 200 100 0 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Feb 2010 16

Order Book Run Off Order Book Run Off FY 10 revenue secured and building FY11 and beyond FY 10 revenue secured and building FY11 and beyond $m's 700 600 500 400 300 200 100 0 FY09 FY10 FY11 FY12 + Completed Secured 17

Tender Break- -up up Tender Break Tender Pipeline Civil 3% 5% Tender Pipeline ($bn's) $1.4 92% Bulk Earthworks Rail Road Tender Pipeline Mining $3.3 Civil Mining 45% 55% Coal Iron Ore 18

Capital Expense Capital Expense $m 70 NRW has invested in equipment during  60 the 1HY10 in order to capitalize on the upward demand for commodities. 50 Strategic purchases made at reduced  cost. New assets immediately deployed 40 on Bootu Creek and Western Turner 51.0 Syncline projects. 30 Total expenditure to 31 Dec 2009 is  36.4 26.4 20 $33.79m 19.7 Future capex driven by new project  10 awards. 8.0 7.4 6.2 4.4 0 FY 07 FY 08 FY09 1H 10 Maintenance Growth 19

Strategy & Outlook Strategy & Outlook The expected NPAT range for FY10 is $33 - $38m with legacy of contracts awarded during GFC running off during the current financial year. As world wide demand for commodities continues to improve the outlook is very positive for the Group and the mining services sector. • Continued involvement in WA iron ore expansion projects. Mining • East Coast expansion into coal. • International expansion building on current African presence. • Focus on long term revenue contracts • Opportunities in oil & gas infrastructure projects. • Road, rail and bridge construction with increased capital Civil expense in resource sector. • Develop opportunities in government and utilities sector including WA and QLD Roads. Prequalification's in place. • International sales opportunities for Promac’s Lighting Action & Promac plants and Gensets • Develop the fabrication arm of Action Mining 20

Strategy & Outlook Strategy & Outlook • Internal establishment of a concrete division undertaking New Business significant project works at Gindalbie Divisions • Establishment of Drill & Blast division to service internal mining and civil projects. Future opportunity to offer drill and blast services externally Grow revenue at a compounding rate of 20% per annum.  Target double digit EBIT margins.  Grow earnings per share.  Grow order book to $2bn.  Continue to provide, involve and integrate indigenous groups  through training, employment and JV initiatives. Maintain conservative net Debt/Equity levels in order to sustain a  strong balance sheet. Reinstate dividend policy to 40 – 60% payout of net profit.  21

Appendices Appendices 22

Appendix: Balance Sheet Appendix: Balance Sheet $m unless stated 1HY10 2009 2008 Cash 14.5 20.6 3.3 PPE 145.8 125.9 123.4 Other Assets 187.1 165.3 185.0 Total Assets 347.3 311.8 311.7 Net assets 156.8 142.3 117.2 Shareholders equity 156.8 142.3 117.2 Debt / Balance Sheet Metrics EBIT / net interest 6.2x 7.2x 8.4x Net debt / (Net debt + equity) 29.3% 22.0% 44.7% 23