Scott Cummins

28 September 2017

STRATEGY UPDATE

2STRATEGY UPDATE

• Transformational Growth Strategy – Reset, Stabilise, Consolidate, Grow • New operating model and turnaround in performance• Pursuit of operational excellence adopted across the entire business and all operating regions• Cultural shift to a consistent, reliable and high-performing project delivery business• Simplified business structure and strengthened technical & operational capabilities• Established strong foundation with effective management systems and programs• Active Project Portfolio performing in line with expectations and plan

• Balance Sheet ‘Clean & Strong’. Significantly Reduced overall Business Risk Profile. 1. Balance Sheet Strengthened & Restored Financial Capacity & Flexibility

• Aveng have reset the McConnell Dowell Balance Sheet. Removed risk & uncertainty from the Balance Sheet• Resolution of the long outstanding arbitration process in relation to the QCLNG Export Pipeline Project that

was executed over a four-year period from 2010• Project impairments remove risk and uncertainty from the Balance Sheet. Non cash in nature but impacted

the FY17 P&L 2. Capital Restructure

• Recapitalised the balance sheet by capital injection from Aveng3. No External Debt

• Paid off all external debt in Australia (minor asset finance / leases remain)

• Full Support from all Stakeholders• All our Banks and Bonding providers have approved the balance sheet restructure and have confirmed ongoing

commitment to provide bonding required to support our business plan

STRATEGIC HIGHLIGHTS

‘Following the reset of our organisational structure and

operating model it was necessary to reset the balance

sheet. This has been successfully completed and now positions the Group for future reliable & predictable

project delivery and Corporate growth.’

Scott Cummins, Chief Executive Officer McConnell Dowell

3STRATEGY UPDATE

FY17 PERFORMANCE SUMMARY

VALUE WE ARE DELIVERINGMcConnell Dowell has taken the final step in completing the Reset phase of its transformational strategy – Reset, Stabilise, Consolidate & Grow – and built a platform to optimise value and growth. Transformational program to ensuring the McConnell Dowell Group are a leading project delivery business.

Select highlights are included below:

SAFETY PERFORMANCE

33,969 Safety Observations Recorded 84%

Projects Remained LTI Free

FINANCIAL PERFORMANCE

Revenue

A$936 Millionof construction work including:

• Webb Dock, Melbourne, Australia• Waterview Tunnel, Auckland, New Zealand• Modbury Hospital, Adelaide, Australia• RAPID Solid Product Jetty, Malaysia• Mangere BNR, Auckland, New Zealand• O-Bahn City Access, Adelaide, Australia

Cash Position

A$120 MillionImproved Cashflow Performance

Order Book & Preferred Status

A$1,500 MillionIncreased >50% from Dec 16

SIGNIFICANT INDUSTRY RECOGNITION

• Australian Construction Achievement Award

• Webb Dock

• Master Builders• Modbury Hospital

Redevelopment

• Civil Contractors New Zealand

• Waterview Tunnel

MAJOR PROJECTS AWARDED

• Murray Basin Rail Upgrade, Australia• BP Tanguuh LNG Export Jetty, Indonesia• Northern Gas Pipeline, Australia• Dryandra Road Underpass, Australia• Amrun Export Facility, Australia• Western Program Alliance, Australia

• Midvale, Australia• Christchurch Southern Motorway Stage 2, New

Zealand• U2 on Waymouth, Australia• West Franklin Apartments, Australia

4STRATEGY UPDATE

YEAR IN REVIEW

Established a new leadership• Set clear expectations for

leaders and business units

MAXIMISINGVALUE

Stronger focus on Customer relationships• Strong band and

market position• Customer orientated

and outcome focused

Simplified the organisation• New structure and operating

model• Lean and accountable• Regionally focused business

units and strategies

Enhanced technical and operational capabilities

Implemented a structured approach to winning a new business

• Embedded a clear transformational growth strategy – Reset, Stabilise, Consolidate & Grow

• Maximise value by becoming a reliable and high performance business

• Increased transparency in all aspects of the business, winning through execution

• Improved Systems and Procedures –back to basics drive, execution improvement program, centralised project start-up expertise, centralised HSEQ processes

• Strengthened new business and commercial management processes to safeguard brand, profitability and strategy

• Monthly project review process, peer reviews, internal audit

Strengthened project and business governance

Year of considerable change across the organisation

Foundations built to optimise value and growth

Focused on becoming a consistent reliable project delivery business

Strengthened Customer Relationships

Reduced the fixed cost base to improve cost competitiveness

RESET PHASE COMPLETED STRENGTHENED OPERATIONAL MANAGEMENT

5STRATEGY UPDATE

• Strengthening the balance sheet was a significant focus for the organisation in the 2017 financial year

• Results reflect the financial Reset of the business and places the Group in a strong position to support the further stages of the growth strategy

• Project impairment for QCLNG and other historical issues (Previously announced non-cash impairment)

• Banks and financiers support the project impairments and capital restructure that forms part of the FY17 Full Year Results

• The capital restructure provides the Group with a robust balance sheet to:

• Execute and fulfil all defined growth objectives in line with the transformational strategy

• Support future working capital and bonding requirements associated with the strong pipeline of projects

• Continue to invest in building and enhancing capability across the entire Group

STRONGER BALANCE SHEET

GREATER PREDICTABILITY& CERTAINTY OF

FINANCIAL PEFORMANCE

• >100% secured revenue for FY18. More predictable performance and earnings.

• Efficient & scalable cost structure

• Strong operational focus to bid, execute and deliver strong earnings growth

• Strong & healthy Order Book

Transforming to a stabilised and cash flow positive business. Recapitalised the balance sheet to support Business Plan.

6STRATEGY UPDATE

PROJECT IMPAIRMENTS Previously announced non-cash impairment on the QCLNG Export Pipeline Project and other historical commercial issues

PROJECT IMPAIRMENTS FROM LEGACY & HISTORICAL ISSUES

• QCLNG Export Pipeline Project

• Reflects the long running arbitration process associated with the project that commenced in 2010 and was executed over a four-year period. Project was completed in late 2013

• The award event was fully anticipated and represents a long awaited important milestone in our strategic journey

• Other Historical Commercial Issues

• Enable the finalisation of commercial issues and disputes

• Clean up the balance sheet of historical issues so we can focus on the future

• No material adverse impacts expected in FY18

REDUCED BUSINESS RISK PROFILE

• Significantly reduced the level our dispute backlog in relation to all legacy and historical projects

• Significantly lower risk profile as legacy matters are closed

CULTURAL SHIFT TO DISCIPLINE

• Disciplined commercial delivery approach to project commercial and legal disputes. Focused on timely and effective resolution.

• Embedded new rigorous project commercial framework and procedures in response to past practices and decision making processes

7STRATEGY UPDATE

FY18 & BEYOND

• Turnaround strategy on track• Positive momentum moving in to FY18 with 100% of Group

Revenue Budget secured• All Business Units are well placed to deliver strong operational

results in line with plan

2016 2018 2021 2025

RESET STABILISE, DELIVER & POSITION FOR GROWTH

CONSOLIDATED GROWTH

EXTENDED GROWTH & SUSTAINED PROFITABILITY

• Cultural shift to a consistent, reliable and high-performing project delivery business

• Disciplined focus on high growth opportunities. Strong growth in Order Book & Preferred Status. Significant upside.

• Positioned for strong earnings growth in FY18 – Year of delivery

GROUP STRATEGY REMAINS INTACT AND FULLY SUPPORTED BY AVENG.

MCCONNELL DOWELL ENTERS FY18 WITH A CLEAR STRATEGY, A NEW LEADERSHIP TEAM, A STRONGER BALANCE SHEET AND TREMENDOUS MOMENTUM.

8STRATEGY UPDATE

GROUP DIVERSITYACTIVELY EXECUTING MAJOR PROJECTS ACROSS ALL GLOBAL REGIONS, MARKET SECTORS ANDSPECIALIST CAPABILITIES OF THE MCCONNELL DOWELL GROUP’S VALUE OFFERING

9STRATEGY UPDATE

ACTIVE PROJECT PORTFOLIO

O’Bahn City Access, Australia

• Customer: Department of Planning, Transport & Infrastructure

• Design & Construct Contract• 670m long tunnel completed

Murray Basin Rail Upgrade, Australia

• Customer: V/Line• Upgrading 1,055km of rail track• Converting the track from broad gauge to

standard gauge• Completion scheduled for August 2018

Amrun Export Facility, Australia

• Customer: Rio Tinto• Significant Australian mining project• 642m of jetty structure• 306m of wharf with attached tug berth

10STRATEGY UPDATE

ACTIVE PROJECT PORTFOLIO

Dryandra Road, Australia

• Customer: Brisbane Airport Corporation• Significant structural element of new

runway• Concrete 4-lane underpass structure• 700 precast piles including 1.5km of road

Northern Gas Pipeline, Australia

• Customer: Jemena• Engineering, construction and

commissioning 481km of pipeline• Scheduled for completion late 2018

Western Program Alliance, Australia

• Customer: LXRA• Major Alliance Project• Significant Program of Work 5+ years• First 2 sites to be complete by end 2018

11STRATEGY UPDATE

ACTIVE PROJECT PORTFOLIO

Christchurch Southern Motorway, New Zealand

• Customer: New Zealand Transport Agency• 8km new of 4 lane motorway• 7 bridges over new highway• Scheduled Completion end 2019

City Rail Link, New Zealand

• Customer: City Rail Link Limited• Largest Infrastructure project in New

Zealand• 3.45km twin tunnel underground rail link

Russley Road Upgrade, New Zealand

• Customer: New Zealand Transport Agency• An on-line roundabout and a 150 m

subway • Scheduled Completion end 2019

12STRATEGY UPDATE

Petronas RAPID 12B Solid Product Jetty, Malaysia

• Customer: Petronas PRPC Utilities• EPC Contract• 8km new of 4 lane motorway• 7 bridges over new highway• Scheduled Completion end 2019

ACTIVE PROJECT PORTFOLIO

Tangguh LNG Bulk Offloading Facility, Indonesia

• Customer: PT Saipem Indonesia (PTSI)• Bulk Offloading Facility, LNG and

Condensate Loading Jetty• Onshore brownfield site and receiving

facility

Tuas Road Bridges, Singapore

• Customer: National Environment Agency (NEA)

• 2 Permanent viaducts including foundations, abutments and marine deck

• Scheduled for completion in June 2018

13STRATEGY UPDATE

ACTIVE PROJECT PORTFOLIO

Nakhon Ratchasima Pipeline Extension, Thailand

• Customer: PTT Public Company Limited• EPC Contract• 60 km of 42-inch diameter pipeline, 18

block valve stations• 20 km of pipe installation by Direct Pipe

processes

Maris South Canal, Philippines

• Customer: SNAP (Aboitiz Power and Statkraft Norfund Power Investment group)

• 8.5 megawatt hydroelectric power plant• Scheduled for completion late 2017

Dubal Energy Optimisation Mechanical Works, Dubai

• Customer: Emirates Global Aluminium (EGA)

• 4 pot rooms, 8 sections, 241 pots, 4 temporary crossovers, 4 central passageways

• 4 North end and 4 South end crossovers

14STRATEGY UPDATE

ACTIVE PROJECT PORTFOLIO

Urbanest, Australia

• Customer: Urbanest Australia• Design & Construct Contract• 689 – bed accommodation• Scheduled completion November 2017

West Franklin Apartments, Australia

• Customer: Greaton• 272 residential apartments• two towers (north tower is 20 storeys and

the south tower is 18 storeys)• Scheduled for completion early 2019

U2 on Waymouth, Australia

• Customer: U2• Design & Construct Contract• 27 Levels with 257 apartments• Scheduled completion for early 2019