ASX/Media Release

28 July 2014 Leighton increases HY14 net margin to 2.7%, reiterates guidance

Leighton Holdings today announced its results for the six months to 30 June 2014i:
Total revenueii of $11.9 billion, up on HY13
EBITDAiii of $843 million. Comparable EBITDAiv of $945 million, up on HY13
NPAT of $291 million. Underlying NPAT (UNPATv) of $319 million, up on HY13

Net margin (UNPAT to total revenue) of 2.7%, an absolute increase of 0.5% on HY13

Gearingvi of 37.1%. Comparable gearing of 36.5%, improved from June 2013
New contracts, extensions and variationsvii of $7.8 billion and a strong pipeline:

o Preferred bidder positions of $5 billion

o 12 month tender pipeline 33% higher than at the FY13 result

o Largest ever pipeline of tenders greater than $1 billionviii under preparation

Interim dividend of 57 cents per share, 25% franked, an increase of 27% on HY13.

The Leighton Group reported an increase in total revenue during HY14 of 3% on HY13, driven primarily by growth in construction work, which rose 5% to $7.7 billion.
Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said: "I'm pleased to report the Leighton Group net margin again expanded during the period, continuing a steady improvement from 1.0% in HY12 to 2.7% in HY14. We expect to further increase net margin as we simplify the structure of the Group."
The Group's focus on capital management and the redeployment of mining fleet resulted in a reduction in capital expenditure of 22%.
Comparable gearing was 36.5% at 30 June 2014, an improvement from 44.7% at 30 June 2013. Mr Fernández Verdes said: "Reducing working capital remains a focus. We are improving the
approach to working capital management on new projects and seeking to strengthen the
balance sheet through the options we are considering as part of the Strategic Review."
The Group maintained its strong market share during the period, securing $7.8 billion of new contracts, extensions and variations, and it has preferred bidder position on $5 billion in contracts, compared to $3 billion in June 2013.
Mr Fernández Verdes said: "Some $125 billion in new infrastructure project spending is
expected by the end of the decade in Australia, including Federal Government commitments and the private and State investment that is expected to follow. Similarly, in our markets in Asia and the Middle East, governments continue spending on infrastructure. This expenditure will be underpinned by the emergence of new, more attractive PPP models, in which we will seek to
take on roles as an equity participant, contractor and asset manager.
"We are already seeing the positive impact of the Federal Government's infrastructure initiatives, with our 12 month tender pipeline approximately 33% higher than the equivalent pipeline at the time of the FY13 result, and, looking further ahead, we have under preparation the largest
pipeline of $1 billion-plus tenders in Leighton's history.

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Media Release 28 July 2014

"We have made progress on our Strategic Review including the appointment of Managing Directors and the identification of executive teams, transition planning for the new organisational structures as well as for operational and legal matters, and the continued focus on the collection of receivables."
The Leighton Board determined to pay out 60% of UNPAT for HY14 and has approved a 57
cents per share, 25% franked interim dividend to be paid on 3 October 2014. This compares with a 45 cents per share, 50% franked interim dividend in HY13, an increase of 27%.
Leighton reiterates previously issued guidance for FY14 for UNPAT in the range of $540 million to $620 million and gearing in the range of 20% to 35% by 31 December 2014, subject to market conditions, unforeseen circumstances and the outcomes of the Strategic Review.
ENDS

Issued by Leighton Holdings Limited ABN 57 004 482 982 www.leighton.com.au Further information:

MS JANET PAYNE, Group Manager Investor Relations T+61 2 9925 6121
MS FIONA TYNDALL, Group Manager Media Relations T+61 2 9925 6188

LEIGHTON HOLDINGS LIMITED, founded in Australia in 1949, is the parent company of the Leighton Group, one of the world's leading international contractors. The Group is also the world's largest contract miner. Listed on the Australian Stock Exchange since 1962, Leighton Holdings has its head office in Sydney, Australia. Leighton Holdings owns and operates through a number of diverse and independent operating companies: Leighton Contractors; Thiess; John Holland; Leighton Asia, India and Offshore; and Leighton Properties. The Leighton Group also has a 45% investment in the Habtoor Leighton Group (HLG). These companies provide development, construction, contract mining, and operation and maintenance services to the infrastructure, resources and property markets. They operate in more than 20 countries throughout the Asia Pacific, the Middle East and Southern Africa. The Leighton Group directly employed approximately 52,100 people, as at 30 June 2014.

i HY14 and HY13 are the results for the six months to 30 June 2014 and 30 June 2013 respectively. FY14 is the result for the 12 months to 31

December 2014.

ii Total revenue includes revenue from joint ventures and associates.

iii Earnings before interest, tax, depreciation and amortisation.

iv Comparable data is adjusted for the deconsolidation of the sale of 70.1% of the telecommunication assets (the 'Telco sale') in June 2013, the FleetCo initiative, and non-underlying items (v below). See reconciliation in Management Commentary.

v UNPAT is NPAT adjusted for non-underlying items including gains/losses on sale/acquisition of assets, impairments and restructuring costs ('non-

underlying items').

vi Gearing is expressed as the ratio of net debt and operating leases to net debt, operating leases and shareholders' equity.

vii Net of foreign exchange.

viii Tenders with a value of $1 billion or more due for submission between now and 2018.

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