1

Gresham Mining & Infrastructure Services Quarterly

Chris Branston

cbranston@gresham.com.au

We are pleased to present Edition 19 of the Gresham Mining & Infrastructure Services Quarterly(GMISQ). This quarter we have expanded our coverage to include infrastructure services,reflecting the growth of that market and increasing diversification of many service providers.

After a strong finish to 2016, the Gresham Mining & Infrastructure Services Index1 (GMISI) took arelative breather in the first quarter of 2017, increasing by 4%, in line with the All Ordinaries. Thistrend has continued into the second quarter, with the GMISI performance flat during April.

The index performance was driven by relatively flat share prices for the four largest constituents.However, looking down the list showed an interesting trend with 9 of the next 15 largestcompanies still recording double digit share price growth. On the other hand, small caps continueto struggle, evidenced by 15 of the 21 sub-$100m market cap companies seeing their share pricesfall during the quarter.

The first half reporting season was mixed, with some companies achieving solid top line growthbut the majority still recording a decrease in revenue. The outlook is more positive, with analystsforecasting a return to growth across the sector over the FY17-19 period. This is reflected inobserved valuation multiples, which continue to be above the long term average.

The major deals during the quarter included Downer’s hostile takeover bid for Spotless, VINCI’sproposed acquisition of Seymour Whyte, and Acciona’s purchase of Geotech. These transactionscap a period of consolidation for the sector – over the last three years, eight of the GMISIconstituents have been taken over.

In our Quarterly Focus we review the increasing importance of non-resources infrastructure to thegroup. With the reduction in mining construction capex and a host of major transport projectsplanned and underway, a number of engineering and construction companies are successfullyadapting to the changing market. In many cases, this has been supported by strategic acquisitionsthat have provided additional expertise and new market entry points.

Editorial Team

Gresham Advisory Partners Ltd is a leading Australian mergers and acquisitions/corporate advisorybusiness and one of Australia’s largest and highest ranking independent corporate advisors.

Edition 19 May

2017

The Gresham Mining and Infrastructure Services Index is a market capitalisation weighted index comprising 50 mining and infrastructure services companies selected by Gresham at the date of this report.

Brad Hancock

bhancock@gresham.com.au

Tom Waddell

twaddell@gresham.com.au

(1)

2

55% 52%

38% 35%24%

(25%) (29%) (29%)(34%) (35%)

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Share Price Movements

GMISI CONSTITUENTS

(DEC 16 – MAR 17)

LEADERS & LAGGERS (SHARE PRICE)(DEC 16 – MAR 17)

PERFORMANCE OVER TIME

PERFORMANCE RELATIVE TO S&P 200 INDICES

(DEC 16 – MAR 17)

Note: (1) Bradken was removed from the Official List of ASX on 16-May-17 following compulsory acquisition by Hitachi. Source: FactSet, IRESS.

2

Leaders LaggersRanks

Mar Dec 31 Mar 17 31 Dec 16

1 1 CIMIC Group Ltd. (ASX:CIM) 11,650 11,329 3%

2 2 Orica Ltd. (ASX:ORI) 6,621 6,651 -0%

3 4 Downer EDI Ltd. (ASX:DOW) 3,443 2,587 1%

4 3 ALS Ltd. (ASX:ALQ) 3,096 3,045 2%

5 5 WorleyParsons Ltd. (ASX:WOR) 2,719 2,395 13%

6 6 Mineral Resources Ltd. (ASX:MIN) 2,011 2,267 -11%

7 7 Spotless Group Holdings Ltd. (ASX:SPO) 1,192 1,087 10%

8 8 Monadelphous Group Ltd. (ASX:MND) 1,157 1,054 10%

9 9 Bradken Ltd. (ASX:BKN) 679 663 1%

10 12 Cardno Ltd. (ASX:CDD) 614 453 35%

11 11 Programmed Maintenance Services Ltd. (ASX:PRG) 482 495 -3%

12 10 Tox Free Solutions Ltd. (ASX:TOX) 452 502 -10%

13 14 Ausdrill Ltd. (ASX:ASL) 443 393 13%

14 15 RCR Tomlinson Ltd. (ASX:RCR) 442 385 15%

15 13 MACA Ltd. (ASX:MLD) 357 402 -11%

16 16 Pacific Energy Ltd. (ASX:PEA) 260 220 18%

17 18 GR Engineering Services Ltd. (ASX:GNG) 241 207 16%

18 19 Imdex Ltd. (ASX:IMD) 239 190 13%

19 17 NRW Holdings Ltd. (ASX:NWH) 216 214 1%

20 23 Macmahon Holdings Ltd. (ASX:MAH) 186 120 55%

21 43 Emeco Holdings Ltd. (ASX:EHL) 169 41 24%

22 20 Decmil Group Ltd. (ASX:DCG) 162 178 -9%

23 22 Watpac Ltd. (ASX:WTP) 145 146 -1%

24 24 Fleetwood Corp. Ltd. (ASX:FWD) 131 120 9%

25 26 RPMGlobal Holdings Ltd. (ASX:RUL) 126 115 10%

26 29 Lycopodium Ltd. (ASX:LYL) 123 108 14%

27 27 Global Construction Services Ltd. (ASX:GCS) 117 114 3%

28 21 AJ Lucas Group Ltd. (ASX:AJL) 117 164 -29%

29 36 Seymour Whyte Ltd. (ASX:SWL) 114 75 52%

30 31 SRG Ltd. (ASX:SRG) 99 96 3%

31 28 Austin Engineering Ltd. (ASX:ANG) 96 110 -13%

32 32 Alliance Aviation Services Ltd. (ASX:AQZ) 86 95 -9%

33 33 Veem Ltd. (ASX:VEE) 83 84 -2%

34 34 Southern Cross Electrical Engineering Ltd. (ASX:SXE) 83 84 -2%

35 30 MMA Offshore Ltd. (ASX:MRM) 82 101 -19%

36 25 Boart Longyear Ltd. (ASX:BLY) 78 118 -34%

37 39 Swick Mining Services Ltd. (ASX:SWK) 59 56 6%

38 38 Neptune Marine Services Ltd. (ASX:NMS) 58 58 -

39 41 Boom Logistics Ltd. (ASX:BOL) 55 50 10%

40 35 Veris Ltd. (ASX:OTC) 50 78 -35%

41 45 Matrix Composites & Engineering Ltd. (ASX:MCE) 50 36 38%

42 37 Mitchell Services Ltd. (ASX:MSV) 47 59 -20%

43 40 Tempo Australia Ltd. (ASX:TPP) 47 54 -13%

44 42 Saunders International Ltd. (ASX:SND) 43 50 -13%

45 46 LogiCamms Ltd. (ASX:LCM) 29 31 -8%

46 44 Mastermyne Group Ltd. (ASX:MYE) 27 38 -29%

47 47 XRF Scientific Ltd. (ASX:XRF) 21 24 -11%

48 48 Brierty Ltd. (ASX:BYL) 13 17 -19%

49 50 Laserbond Ltd. (ASX:LBL) 12 12 -

50 49 Delta SBD Ltd. (ASX:DSB) 11 15 -25%

Market Cap (A$m) Share

price

r %

Company

1

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14%

10% 9%

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(7%)

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Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17

Gresham Mining Services Index (GMSI)

S&P/ASX 200

S&P/ASX 200 Resources

GMSI (excl. top 5)

3

Large Cap (>$1bn) Mid Cap (between $200m and $1bn) Small Cap (<$200m)

Notes: (1) Share price reaction based on closing price on the first full trade day post results announcement and closing price on the last trade day prior to announcement.Source: FactSet, Company announcements.

1H FY17 Results Wrap

The 1H FY17 results were mixed, with some companies such as Lycopodium, SRG, Mineral Resources, Pacific Energy andNRW reporting good organic revenue growth, while more than half still saw sales go backwards.

The fact that nearly half of the GMISI constituents recorded meaningful share price falls on the day of announcementsuggests there was a reasonable proportion of negative surprises.

3

SHARE PRICE REACTION (1 DAY PRIOR1)

Median: (0.3%)

-30%

-20%

-10%

0%

10%

20%

LYL

DO

W

MN

D

AN

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LCM

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TPP

SND

ALQ BLY

SWL

TOX

SXE

CD

D

LBL

WO

R

SPO

BYL

MR

M

OTC

REVENUE GROWTH (1H17 VS 1H16)

Median: (5.6%)

-100%

-75%

-50%

-25%

0%

25%

50%

75%

100%

PR

G

LYL

SRG

SWL

MIN LB

L

RU

L

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PEA

NW

H

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GC

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4

Forecast Profitability & Gearing

Analysts are forecasting improved sector performance, as companies benefit from increased maintenance capex, the largeupcoming investment in transport infrastructure investment, and the flow-through of improving commodity prices toexploration and development spending. Nearly all constituents covered by research analysts are forecast to grow bothrevenue and earnings, with a median FY17-19F EBITDA CAGR of 12%.

4

FORECAST REVENUE GROWTH (FY17-19F CAGR)

FORECAST EBITDA GROWTH (FY17-19F CAGR)

Notes: (1) Only companies with consensus earnings forecasts are included in charts.Source: FactSet.

EBITDA MARGINS (FY17F)

NET DEBT / ENTERPRISE VALUE

Large Cap (>$1bn) Mid Cap (between $200m and $1bn) Small Cap (<$200m)

-30%

-20%

-10%

0%

10%

20%

30%

MA

H

DC

G

GN

G

RC

R

FWD

NW

H

SWK

LCM

SRG

SWL

CIM PEA ASL

IMD

WO

R

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MR

M

ALQ XR

F

TOX

AQ

Z

MIN

OTC

SPO

BK

N

CD

D

OR

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DO

W

MN

D

WTP

Median: 9%

0%

10%

20%

30%

PEA

MIN

MC

E

AQ

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MLD

ALQ

IMD

OR

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TOX

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M

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DC

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SRG

RC

R

CD

D

PR

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SXE

WTP

SWL

Median: 10%

-100%

-50%

0%

50%

100%

WTP BLY

MR

M

BYL

EHL

AJL

BO

L

AQ

Z

SPO

PR

G

ASL

BK

N

DSB

AN

G

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WO

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SWK

NW

H

RC

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CD

D

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L

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MIN

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G

GC

S

RU

L

GN

G

MLD

MN

D

MC

E

SRG

SWL

MA

H

NM

S

SND

SXE

TPP

LYL

Median: 5%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

MA

H

MR

M

SWL

DC

G

SWK

XR

F

FWD

SRG

RC

R

OTC

GN

G

ALQ

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D

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MLD

TOX

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SPO

PR

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CIM OR

I

DO

W

AQ

Z

MN

D

MC

E

MIN

WTP

Median: 12%

5

0%

1%

2%

3%

4%

5%

6%

7%

GC

S

GN

G

MLD SX

E

MIN

PR

G

SRG

MN

D

TOX

DO

W

PEA

DC

G

CIM

OTC OR

I

AQ

Z

ASL

SPO

XR

F

RC

R

ALQ VEE

FWD

NW

H

SWK

Median: 3.1%

-

5x

10x

15x

20x

25x

30x

IMD

SXE

CD

D

ALQ

SWL

RU

L

OTC

WO

R

MN

D

DO

W

BK

N

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DC

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SRG

OR

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RC

R

PR

G

GN

G

SPO

NW

H

TPP

MLD

GC

S

WTP

MIN

AQ

Z

Median: 17.0x

Notes: (1) Only companies with consensus earnings forecasts are included in charts; (2) Share prices are as at 31 March 2017; (3) Earnings multiples are not calendarised; (4) Companies exhibiting negative multiples have been excluded from the above analysis. Source: FactSet.

Valuation Multiples

The expected growth for the sector is reflected in current earnings multiples which have sat above the long term averagethroughout FY17.

1 YEAR FORWARD PRICE EARNINGS RATIO OVER TIME

PRICE EARNINGS RATIO (FY17F)

5

Large Cap (>$1bn) Mid Cap (between $200m and $1bn) Small Cap (<$200m)

DIVIDEND YIELD (FY17F)

1-yr fwd median as at:Mar 16: 9.9x (FY16)Jun 16: 10.9x (FY17)Sep 16: 12.0x (FY17) Dec 16: 14.5x (FY17)

1-yr fwd median as at:Mar 16: 5.5% (FY16)Jun 16: 4.1% (FY17)Sep 16: 4.0% (FY17) Dec 16: 3.5% (FY17)

2x

4x

6x

8x

10x

12x

14x

16x

18x

Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17

Gresham Mining Services PER

All Ordinaries Index PER

Gresham Mining Services Median

Gresham Mining Services Median: 9.5x

6

0%

100%

200%

300%

400%

500%

600%

LCM

PR

G

TOX

ALQ OR

I

CIM

RU

L

GN

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VEE

RC

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DO

W

MN

D

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CD

D

PEA LY

L

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MIN

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AJL

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BYL

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F

MLD SX

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NW

H

NM

S

DC

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MA

H

FWD

GC

S

AN

G

SWK

MYE

ASL

WTP

DSB

AQ

Z

MC

E

BO

L

MR

M

Median: 183%

-

2x

4x

6x

8x

10x

12x

MR

M

RU

L

CD

D

ALQ VEE

WO

R

MN

D

SXE

BK

N

OR

I

RC

R

SWL

CIM

GN

G

IMD

XR

F

DC

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SPO

FWD

PR

G

TOX

PEA

DO

W

SRG

SWK

ASL

OTC

MA

H

TPP

NW

H

MIN

GC

S

AQ

Z

MLD

MC

E

Median: 7.6x

-

5x

10x

15x

20x

SXE

CD

D

RU

L

ALQ

SWL

WO

R

RC

R

VEE

TOX

SPO

FWD

DC

G

BK

N

DO

W

OTC OR

I

IMD

CIM

MN

D

PEA XR

F

PR

G

ASL

SRG

GN

G

NW

H

AQ

Z

MLD

MIN

TPP

GC

S

Median: 12.4x

Notes: (1) Only companies with consensus earnings forecasts are included in charts; (2) Share prices are as at 31 March 2017 (3) Earnings multiples are not calendarised;(4) Enterprise Value is based on market capitalisation plus minority interests and last reported net debt adjusted for capital raisings and acquisitions. (5) Companies exhibiting negative multiples have been excluded from the above analysis. Source: FactSet.

Valuation Multiples

On FY17F earnings, median sector EBIT and EBITDA multiples are 12.4x and 7.6x respectively, representing a significantexpansion over the last year. On a FY18F basis these fall to 9.9x and 6.6x respectively, illustrating the market’s strongearnings growth expectations.

EV/EBIT (FY17F)

EV/EBITDA (FY17F)

6

Large Cap (>$1bn) Mid Cap (between $200m and $1bn) Small Cap (<$200m)

PRICE/NTA

1-yr fwd median as at:Mar 16: 7.3x (FY16)Jun 16: 7.8x (FY17)Sep 16: 8.6x (FY17) Dec 16: 9.6x (FY17)

1-yr fwd median as at: Mar 16: 4.6x (FY16)Jun 16: 4.4x (FY17)Sep 16: 5.3x (FY17) Dec 16: 6.2x (FY17)

Companies trading at a discount to NTA

7

Contract Awards

7

MAJOR CONTRACT AWARDS

With our contract award list expanded to include infrastructure work, we get a better picture of the true performance andopportunity set for many companies. There was a long list of small to medium size awards to the ASX-listed companiesduring the March quarter, but a lack of large contract wins.

Source: Company announcements.

Date

AnnouncedCompany Client Project/Facility Location Services Value (A$m)

Commodity

/ Sector

27 Mar 17 RCR Tomlinson Manildra Manildra Solar Farm NSW EPC and commissioning 85 Renewables

21 Mar 17 Worley Parsons Manaseer GroupPotash and Fertilizer

ProjectJordan Project management n/a Potash

20 Mar 17 CIMIC PUBWoodleigh

WaterworksSingapore Process upgrade SGD67.5 Utilities

13 Mar 17 CIMICRoads and Maritime

ServicesM1 Pacific Motorway NSW Widening and upgrade 145 Road Infra.

13 Mar 17 RCR Tomlinson Edify EnergyGannawarra Solar

FarmVIC EPC and O&M 80 Renewables

9 Mar 17 Fleetwood NSW Dept. of Justice Various facilities NSW Supply of portable buildings 8.7 Education

9 Mar 17 GCS Scentre Group Westfield Carousel WA Concrete and formwork 27.5 Retail

1 Mar 17 Ausdrill Peabody Various coal mines NSW/QLDMining and ancillary

equipment rental70 Coal

1 Mar 17 GR Engineering Eni Australia Blacktip Gasfield NTMaintenance, engineering

and operations supportn/a Oil & Gas

28 Feb 17 Downer Sydney Trains Millennium train fleet NSW Maintenance 225 Rail Infra.

24 Feb 17 Monadelphous

FMG Solomon Mine WAMaintenance, blasting and

cleaning

120

Iron Ore

BHP Mining Area C WAUpgrade to water supply,

treatment and distributionIron Ore

Brolton Group Bass Point Quarry NSWFabrication and pre-

assemblyBuilding

materials

Chevron Wheatstone WA Maintenance services LNG

23 Feb 17 Watpac Australian Unity Herston Quarter QLD Construction services 325 Health

22 Feb 17 AusdrillKCGM Super Pit WA Drill, blast and grade control 143 Gold

Gold FieldsSt Ives and Granny

SmithWA Exploration drilling 60 Gold

22 Feb 17 Seymour Whyte VIC Gov’t Chandler Highway VIC Design and construction 55.9 Road Infra.

21 Feb 17 CIMIC Esso AustraliaVarious onshore and

offshore assetsVIC

Maintenance, shutdown and modification

n/a Oil & Gas

15 Feb 17 NRW MacMahon Telfer Gold Mine WA Drill and blast 40 Gold

14 Feb 17 NRW Altura Mining Pilgangoora Project WAConstruction, drill and blast,

haulage110 Lithium

14 Feb 17 NRW Talison Lithium Greenbushes Mine WA Drill and blast, grade control 12 Lithium

9 Feb 17 CIMICCakrawala Langit

SejahteraWaha coal mines Indonesia Mining services 134 Coal

8 Feb 17 Worley Parsons Chevron Salt Lake City Project USA EPCM and fabrication US$67 Oil & Gas

8 Feb 17 Alliance Aviation Newcrest Telfer Gold Mine WA Transport n/a Gold

30 Jan 17 CIMIC Main Roads WA Northlink Stage 3 WA Construction 175 Road Infra.

25 Jan 17 Pacific Energy Westgold Resources Fortnum Gold Project WADiesel power station build,

own, operaten/a Gold

20 Jan 17 Veris Pilbara Minerals Pilgangoora Project WA Camp relocation 4.8 Lithium

18 Jan 17 RCR Tomlinson Pilbara Minerals Pilgangoora Project WA Processing plant EPC 148 Lithium

17 Jan 17 RCR Tomlinson

Pacific Hydro Yaloak Wind Farm VIC BOP works

100

Renewables

AlstomSydney Metro

Northwest ProjectNSW

Signalling and communications

Rail Infra.

Various Supply of proprietary boilers Energy

Wollongong Uni Innovation Campus NSW Facilities management Education

5 Jan 17 Worley Parsons Saudi AramcoVarious onshore,

green and brownfields assets

Saudi ArabiaProject management and

design engineering servicesn/a Oil & Gas

8

Corporate Activity

8

The major live transaction announced during the March quarter was Downer’s hostile bid for Spotless, which has alsoinvolved a $1b underwritten equity raising. The increasing activity of international companies has also continued,particularly in infrastructure services, with Vinci in discussions with Seymour Whyte, Acciona buying Geotech and Enermechacquiring EPS Group.

Date Announced

Status Target BusinessTarget

HQSeller Acquirer

Value (A$m)

ForumInterest

(%)Cons.

21 Mar 17 Announced SpotlessIndustrial and

support services VIC n/a Downer 1,922 Public 100% Cash

16 Mar 17 Announced Seymour WhyteConstruction

services QLD n/a VINCI 83 Public 100% Cash

10 Mar 17 Announced Synertech Pty LtdOil & Gas

engineering VIC n/a SML Corporation 10 Private 100%

Cash / Scrip

9 Mar 17 Completed GeotechEngineering and

constructionVIC n/a Acciona 262 Private 100%

Cash / Scrip

8 Mar 17 Completed HawkinsConstruction and

infrastructure services

NZMcConnell

FamilyDowner n/a Private 100% Cash

1 Mar 17 AnnouncedToll Mermaid Logistics JV

Oil & Gas supply base

WA MMA Toll 9 Private 50% Cash

1 Mar 17 AnnouncedDampier

Supply Base Oil & Gas supply

baseWA MMA Toll 44 Private 100% Cash

28 Feb 17 Completed Heyday5 Pty LtdElectrical

contractingNSW n/a SCEE 54 Private 100%

Cash / Scrip

27 Feb 17 Completed CivilbuildBridge

constructionNSW n/a Saunders 6 Private 100%

Cash / Scrip

31 Jan 17 Completed Hydrocarbon

Dynamics Oil &Gas chemicals

Hong Kong

n/a Indago Energy 15 Private 100% Cash

24 Jan 17 Closed1 MacMahon Contract mining WA n/a CIMIC 118 Public 79% Cash

17 Jan 17 Completed EPS GroupCompletions & commissioning

NSW n/a Enermech n/a Private 100% Cash

5 Jan 17 Completed Peak Well SystemsDownhole tool development

WA n/a Schlumberger n/a Private 100% Cash

MERGERS & ACQUISITIONS

CAPITAL RAISINGS

Date Announced

Status Company TypeAmount Raised

(A$m)

(Discount) / Premium to Last

Price (%)Purpose

12 Apr 17 Completed Barminco Corporate Bond US$350 n/a Refinance

21 Mar 17 Completed Downer Entitlement Offer 1,011 (19.8%) Acquisition

21 Mar 17 Completed Emeco Entitlement Offer 20 45.0% Recapitalisation

Notes: (1) CIMIC’s unconditional, off-market takeover offer for MacMahon closed on 9-Mar-17 with CIMIC holding 23.64% of MacMahon’s issued share capital (pre-bid stake of 20.54%). Source: Company announcements.

ACTIVE SHARE BUYBACKS

Date Announced Company Type Size Purpose

28 Feb 17 Cardno On-market Up to 10%Acquire shares where the Board deems the

share price to be below intrinsic value

9Notes: (1) Excludes alternate appointments; (2) Internal appointment. Source: Company announcements.

Executive Movements

EXECUTIVE & DIRECTOR APPOINTMENTS1

Date Announced Company Name Role Date Effective

29 Mar 17 Veris Adam Lamond2 Managing Director 29 Mar 17

22 Mar 17 Fleetwood Jeff Dowling NED 1 July 17

22 Mar 17 Fleetwood Stephen Boyle NED 1 Apr 17

27 Feb 17 ALS Raj Naran2 CEO & Managing Director 20 July 17

16 Feb 17 Logicamms Flora Furness2 CEO 22 Feb 17

6 Feb 17 Imdex Sally-Anne Layman NED 6 Feb 17

20 Jan 17 Boart Longyear Conor Tochilin NED 20 Jan 17

9

EXECUTIVE & DIRECTOR RESIGNATIONS / RETIREMENTS

Date Announced Company Name Role Date Effective

29 Mar 17 Veris Simon Thomas Managing Director 29 Mar 17

7 Mar 17 Tempo Philip Loots NED 7 Mar 17

27 Feb 17 ALS Greg Kilmister CEO & Managing Director 20 Jul 17

17 Feb 17 Fleetwood Michael Hardy NED 30 Jun 17

16 Feb 17 Logicamms Steve Banning CEO 22 Feb 17

7 Feb 17 Decmil Giles Everist NED 7 Feb 17

20 Jan 17 Boart Longyear Jonathon Lewinsohn NED 20 Jan 17

10

Quarterly Focus: Infrastructure

A raft of major infrastructure projects are currently planned or under construction, with the federal Government committingover $75 billion in funding to support nation building infrastructure projects over the next ten years. A number of the GMISIconstituents stand to benefit from this spending, some of whom have actively acquired businesses to gain exposure to thisend market.

10

Notes: (1) Federal Funding as detailed in the 2017/18 Federal Budget and associated commentary. (2) SCEE exposure based pro-forma FY17 Budget revenue composition following acquisition of Heyday5 announced on 28 Feb 17. CIMIC exposure based on composition of work in hand disclosed to ASX on 13 Apr 17. Downer exposure based on annual revenue composition for the period ending 31 Dec 16. Decmil and RCR Tomlinson exposure based on 1H FY17 Revenue composition.Source: FactSet, Company announcements.

SELECTED CONSTITUENT REVENUE EXPOSURE

100%

100%

75%

36%

28%

32%

40%

24%

27%

1H FY12 Current2

Resources Non Resources

• Electrical contracting exposure across commercial construction, infrastructure, utilities, telecommunications, defence and health

• Diversifying acquisitions include Heyday5 and Datatel

SELECTED UPCOMING TRANSPORT INFRASTRUCTURE PROJECTS

State Project Federal Funding1 Description

NSW

Western Sydney Airport $5.3b• Construction of second airport• Targeting FY26 commercial operations

Pacific Highway $5.6b • Continued upgrade to Pacific Highway

Sydney Metro $1.7b • $12b rail project

WestConnex $1.5b (plus $2b loan) • Construction of a toll road

QLD/VIC Inland Rail Project $8.4b• Construction of 1,700km freight rail line between Melbourne &

Brisbane• 16,000 jobs at peak construction; FY18 project start

QLD Bruce Highway $6.7b • Additional highway upgrades, including Pine River to Caloundra

VIC Rail and Infrastructure $1.0b • Includes $500m upgrade to regional passenger rail network

WA Metronet $0.8b • Construction of passenger rail network

• Infrastructure projects contributed 44% of 1H FY17 revenue (transport infrastructure and renewables)

• Recent acquisitions include Scope Australia, Cut & Fill, SC Services, SAS Telecom and EDE

• Infrastructure projects contributed 57% of 1H FY17 revenue (Strong position in transport and renewables)

• Transformation accelerated by 2013 acquisition of infrastructure engineering group Norfolk

Non-resources exposures include traditional transport infrastructure, telecommunications infrastructure, commercial construction, renewable energy, defence and health

• Major infrastructure player domestically and globally

• Performing significant work on east coast transport projects

• Recently awarded a $1.7b contract for supply and maintenance of new trains with NSW Dept. of Transport

• Acquired utilities services business Tenix in 2013

18%

90%

11

Gresham’s Credentials

LANDMARK MERGERS & ACQUISITIONS

TAKEOVER RESPONSE

MINING AND INFRASTRUCTURE SERVICES

Advised Fosters on its $12.3bn

takeover by SABMiller

Advisor to SCEE in relation to the

acquisition of Heyday5

Advised CHAMP and Frontenac on the sale of

H-E Parts International

Advisor to Coffey International in

relation to acquisition by

Tetra Tech

Advised Clough in relation to its

takeover by Murray & Roberts

Adviser on US$350m

corporate debt financing, credit ratings and US

144A issue

AWARDS & ACCOLADES

2011 M&A Deal of the Year

SABMiller’s acquisition of

Foster’s Group

2009 Most Innovative Deal

Babcock & Brown

Infrastructure’s recapitalisation

Secondary Market Equity Raising of

the Year

Wesfarmers’ $2.6bn equity

raising

2007 Best M&A Deal

Wesfarmers’ acquisition of

Coles

Best M&A Deal in Australia

Wesfarmers’ acquisition of

Coles

Advised Boral on the formation of a US$1.6bn joint

venture with USG Corporation

2013

Joint lead adviser to Japan Post on the acquisition of

Toll Holdings

2015

2011

2017 2016 2015 20132017

2013

Advised David Jones in relation to acquisition by

Woolworths

2014

Advised Bank of Queensland on

the acquisition of $2.5bn loan

portfolio from Investec

2014

Advised Wesfarmers on the sale of its

underwriting and insurance broking

businesses

2014

Excellence in Corporate

Advisory - 2012

Boutique / Independent

Lead Independent

financial adviser to the Board of BHP Billiton on

the demerger of South32

2015

Advisor to UGL in relation to its takeover by

CIMIC

2017

Advised Asciano on its takeover by a

consortium led by Canada Pension Plan Investment

Board

2016

Advised the Lonsdale

Consortium on the acquisition of

a 50-year lease of Port of

Melbourne

2016

Advised DUET Group in relation

to its $13bn takeover by a

consortium comprising CKP,

CKI and PAH

Advised Little World

Beverages on its acquisition

by Lion

2017

Advised Lend Lease on its

acquisition of ValemusAustralia

2011

12

Contact Details

Gresham Advisory Partners LimitedABN 88 093 611 413

Level 17, 167 Macquarie Street

Sydney NSW 2000

Telephone: +61 2 9221 5133

Facsimile: +61 2 9221 6814

Level 39, 120 Collins Street

Melbourne VIC 2000

Telephone: +61 3 9664 0300

Facsimile: +61 3 9650 7722

Level 3, 28 The Esplanade

Perth WA 6000

Telephone: +61 8 9486 7077

Facsimile: +61 8 9486 7024

www.gresham.com.au

Michael LishmanManaging Director, PerthE: mlishman@gresham.com.auT: +61 8 9213 0289

Terms and Conditions

Information contained in this publicationThe opinions, advice, recommendations and other information contained in this publication, whether express or implied, are published or made by Gresham Advisory Partners Limited (ABN 88 093 611 413),Australian financial services license (247113), and by its officers and employees (collectively “Gresham Advisory Partners”) in good faith in relation to the facts known to it at the time of preparation. GreshamAdvisory Partners has prepared this publication without consideration of the investment objectives, financial situation or particular needs of any individual investor, and you should not rely on the publication forthe purpose of making a financial decision.

To whom this information is providedThis publication is only made available to persons who are wholesale clients within the meaning of section 761G of the Corporations Act 2001. This publication is supplied on the condition that it is not passed on toany person who is a retail client within the meaning of section 761G of the Corporations Act 2001.

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CopyrightCopyright in this publication is owned by Gresham Advisory Partners. You may use the information in this publication for your own personal use, but you must not (without Gresham Advisory Partners’ consent)alter, reproduce or distribute any part of this publication, transmit it to any other person or incorporate the information into any other document.

General mattersThese Terms and Conditions are governed by the law in force in the State of Victoria, and the parties irrevocably submit to the non-exclusive jurisdiction of the courts of Victoria and courts of appeal from them fordetermining any disputes concerning the Terms and Conditions. If the whole or any part of a provision of these Terms and Conditions are void, unenforceable or illegal in a jurisdiction it is severed for thatjurisdiction. The remainder of the Terms and Conditions have full force and effect and the validity or enforceability of that provision in any other jurisdiction is not affected. This clause has no effect if the severancealters the basic nature of the Terms and Conditions or is contrary to public policy. If Gresham Advisory Partners do not act in relation to a breach by you of these Terms and Conditions, this does not waiveGresham Advisory Partners’ right to act with respect to subsequent or similar breaches.

Chris BranstonExecutive Director, PerthE: cbranston@gresham.com.auT: +61 8 9213 0290

Matt KeenanManaging Director, MelbourneE: mkeenan@gresham.com.auT: +61 3 9664 0353

Charlie GrahamManaging Director, SydneyE: cgraham@gresham.com.auT: +61 2 9224 0247

Michail LagogiannisExecutive Director, MelbourneE: mlagogiannis@gresham.com.auT: +61 3 9664 0375

Neville SpryManaging Director, SydneyE: nspry@gresham.com.auT: +61 2 9224 0237