Bradken : HY17 Results Presentation

Bradken Limited

21 February 2017

The business has reviewed and sharpened its focus on safety.

Total recordable injury frequency rate is reducing.

Underlying EBITDA was $52 million, in line with expectations and similar to last year.

Sales were down 6% to $380 million but gross margin improved slightly compared to 1H16.

Our order book remains similar to prior periods.

Work in hand remains stable at $379 million. Despite recent rising commodity prices, we are not seeing a meaningful rise in maintenance spending or new capital projects starting.

Delays and slowdowns in the North American energy, defence and locomotive markets has negatively impacted our Engineered Products business.

Revenue for the period was down 6%.

Our tight focus on cost control has continued.

Total cash costs continue to decline period on period, helping to improve margins.

• Safety performance for the first half of FY17 has reduced our total recordable injury frequency rate (TRIFR) by 45%. However, our goal remains, "zero harm."

  FY15	FY16	1H17	% Change FY16 to 1H17
  LTIFR	4.4*	4.6*	3.2	30% Improvement
  MTIFR	16.6	18.4	9.5	48% Improvement
  TRIFR	21.1*	22.9*	12.6	45% Improvement

  * As part of a safety classifications review in the U.S. since last reporting, these numbers have

  been adjusted accordingly.

  TRIFR

  30

  20

  21.1

  22.9

  12.6

  10

  0

  FY15 FY16 1H17

  LTIFR

  MTIFR

  TRIFR

  • Our strong focus on cost control has further reduced our cash costs period on period.

120

100

80

60

40

20

0

Cash Overheads ($m)

DEC-13 JUN-14 DEC-14 JUN-15 DEC-15 JUN-16 DEC-16