Clough Overview and Company History

1
Clough Overview and Company History

• Presentation by David Singleton, CEO
• 31 October 2006

2
Outline

• Group overview and history
• Strategy
• Business Units

3
Overview and history
4
Snapshot

• Our business is Intelligent Engineering
  Construction primarily in Oil Gas but also in
  Minerals, Infrastructure and Construction
• Our primary markets are Australasia, SE Asia to
  the Indian subcontinent
• Clough is the only Offshore Engineering and
  Construction company based in Australia
• Clough has primarily been Offshore Installation
  but increasingly present across the value chain
• 922m turnover in 05/06
• 3500 employees

FEED Detail Design Install Construct
OM
5
Group History

• 1919 Private company established as a building
  contractor
• 1957 Awarded Narrows Bridge contract
• 1959 Constructed Perths first highrise
• 1967 Awarded first oil gas project
• 1984 Acquired Petrosea (83 JSE listed)
• 1998 Listed on ASX (ticker CLO)
• 2001 Acquired 100 share in Crest Engineers
• 2002 Acquired 50 share in Shedden Uhde
• 2004/5 Sold Wundowie, Shark Bay Salt, HR Connect
  and completed MPA and HWE acquisitions.
• 2004 Services Division formed. Invested in
  Property and Petrosea
• 2004 Shareholders approve Murray Roberts
  transaction
• 2005 Shareholders approve second MR transaction

6
Group Structure
7
Environment

• Civil construction in Australia dominated by
  Leighton Group and Baulderstone
• Cloughs differentiation and key skills in Oil
  Gas
• International business
• Asset driven Offshore
• Need strong overseas bases
• Perth has one of the best Minerals markets
  worldwide
• Key objective with Murray Roberts
• Cloughs Project delivery inconsistent
• War for Talent has come to Perth

8
Strategy
9
Strategy

• Grow the business so that 50 of our earnings is
  from lower risk contracts or business lines.
• Focus on long-term sustainable, differentiated
  lines of business in which Clough can develop a
  core expertise.
• Establish strong, regional, integrated businesses
  to deploy our skills into relevant and growing
  markets.
• Leverage value from our relationship with Murray
  Roberts.
• Develop a highly skilled and motivated workforce
  united in achieving the goals of the company.
• Instil into the organisation an approach to
  business improvement specifically aimed at
  on-time performance in everything we do.

10
Strategy

• Grow the business so that 50 of our earnings is
  from lower risk contracts or business lines.
• Focus on long-term sustainable, differentiated
  lines of business in which Clough can develop a
  core expertise.
• Establish strong, regional, integrated businesses
  to deploy our skills into relevant and growing
  markets.
• Leverage value from our relationship with Murray
  Roberts.
• Develop a highly skilled and motivated workforce
  united in achieving the goals of the company.
• Instil into the organisation an approach to
  business improvement specifically aimed at
  on-time performance in everything we do.

11
Modifying the Risk Profile

• Services Business Set-up
• Operations maintenance with AMEC (UK)
• EPCM
• Engineering
• Shedden
• FEED
• IC Focusing on Alliance Structures

12
Modifying the Risk Profile

• Petrosea Reinvested
• 2003 share price 1700 Rps
• 2006 share price 6500-7000 Rps
• Renewed mine fleet US30m
• GBP extended 4 years
• BBE won
• Sanga Mine won
• Supply base invested
• Deepwater access unusual
• New contracts
• Chevron
• Total
• ENI
• Investing 12m infrastructure
• Oil Gas limited access in Indonesia

Drilling Support
13
2006/07 Earnings vs Risk Profile
Chart excludes Property Chart assumes India
achieves 0 No assessment made of BassGas
outcome in 06/07 Excludes work not yet won
14
Strategy

• Grow the business so that 50 of our earnings is
  from lower risk contracts or business lines.
• Focus on long-term sustainable, differentiated
  lines of business in which Clough can develop a
  core expertise.
• Establish strong, regional, integrated businesses
  to deploy our skills into relevant and growing
  markets.
• Leverage value from our relationship with Murray
  Roberts.
• Develop a highly skilled and motivated workforce
  united in achieving the goals of the company.
• Instil into the organisation an approach to
  business improvement specifically aimed at
  on-time performance in everything we do.

15
Normand Clipper
16
Java Constructor
17
Clough Challenge
18
Technology partnershipsDrillACE

• DrillACE - innovative self installing concept
  being used on Maari
• Considerable advantages over a traditional
  platform
• Can be installed in less than 24 hrs.
• Currently used on Maari field development for
  OMV.

19
Transport and Installation Floatovers

• Complex floatovers
• Heavy topside modules
• Transport and installation for topside platform
  on Angel Gas Field Development off Karratha for
  Woodside
• Exclusive with Aker Kvaerner

20
Nearshore Jetty Construction

• 30 year partnership with Interbeton
• Current contract with Woodside for LNG Jetty
  Marine Works (Train V), North West Shelf, WA
• Use Interbeton Jack-up Barge IB909

21
Operations Maintenance

• 50/50 JV with AMEC of UK
• Australia and other countries (by agreement)
• Main competition
• Transfield Worley (Woodside in Oil Gas)
• Wood Group (Brunei SEA)
• KBR (Bass Straits, PNG)
• Small groups

22
Strategy

• Grow the business so that 50 of our earnings is
  from lower risk contracts or business lines.
• Focus on long-term sustainable, differentiated
  lines of business in which Clough can develop a
  core expertise.
• Establish strong, regional, integrated businesses
  to deploy our skills into relevant and growing
  markets.
• Leverage value from our relationship with Murray
  Roberts.
• Develop a highly skilled and motivated workforce
  united in achieving the goals of the company.
• Instil into the organisation an approach to
  business improvement specifically aimed at
  on-time performance in everything we do.

23
Petrosea

• Centre of Cloughs mining activity
• Projects
• GBP
• Sanga Sanga
• Toms Gully Northern Territory
• Tanjung Batu Supply base
• Petrosea Engineering centre
• Oil and gas projects in Indonesia with Clough
  Oil and Gas

24
Regional Integrated Area

• Thailand (the next Petrosea)
• Thailand is one of the worlds most active Oil
  Gas markets
• 100 offshore platforms, 45 Clough installed
• Onshore Petrochemicals entering major
  reinvestment phase
• World class fabrication skills and labour
  availability

• Fabrication
• OG platforms
• Processing modules

Construction

• Oil Gas
• Installation pipelines platforms
• Support

• Petrochemical Engineering
• 40-230 since acquisition
• Low cost, high value
• Upstream Downstream

25
Strategy

• Grow the business so that 50 of our earnings is
  from lower risk contracts or business lines.
• Focus on long-term sustainable, differentiated
  lines of business in which Clough can develop a
  core expertise.
• Establish strong, regional, integrated businesses
  to deploy our skills into relevant and growing
  markets.
• Leverage value from our relationship with Murray
  Roberts.
• Develop a highly skilled and motivated workforce
  united in achieving the goals of the company.
• Instil into the organisation an approach to
  business improvement specifically aimed at
  on-time performance in everything we do.

26
Murray Roberts - shareholding

• Murray Roberts major shareholder
• Initial transaction approved Nov 04 to increase
  to 30.3
• Second transaction approved Nov 05 to 46.1
• Current holding 46.75
• Underwriting proposed 40m capital raising

27
Murray Roberts alliance benefits

• To date, Murray Roberts has invested approx.
  A177M in Clough
• Murray Roberts CEO, Australian Country Manager
  and Director of Strategy are directors of Clough
• Key strategy is to leverage value from our
  relationship
• Strategic Alliance to perform EPCM projects in
  minerals processing sector in Australia
• Opportunities to work collaboratively in Middle
  East for Oil Gas construction
• Systems transfer between Clough and Murray
  Roberts

28
Murray RobertsAustralian South East Asian
Operations
CLOUGH
29
Inaugural contractBoddington Gold Mine

• Inaugural project for Clough Murray Roberts (in
  joint venture with Aker Kvaerner)
• Will be Australias largest gold and copper mine
  operation
• Blue chip client Boddington Gold Mine Joint
  Venture (Newmont and Anglo Gold)
• EPCM contract for gold and copper processing
  plant - 35 million tonnes per annum ore
  processing capacity
• Opportunities to leverage Construction work
  packages (IC)

30
Strategy

• Grow the business so that 50 of our earnings is
  from lower risk contracts or business lines.
• Focus on long-term sustainable, differentiated
  lines of business in which Clough can develop a
  core expertise.
• Establish strong, regional, integrated businesses
  to deploy our skills into relevant and growing
  markets.
• Leverage value from our relationship with Murray
  Roberts.
• Develop a highly skilled and motivated workforce
  united in achieving the goals of the company.
• Instil into the organisation an approach to
  business improvement specifically aimed at
  on-time performance in everything we do.

31
Business Improvement

• Financial
• Commercial
• HR
• Bid Committee
• PSG
• Based on MR methodology
• Functional experts for start up and support
• Project X
• Major IT infrastructure over 2 years
• Software, systems and people developments
• Project cost control (PRISM)
• Procurement material control (Marion)
• Document data control (SmartPlant)
• Estimating (CES)
• General roll out Christmas 2006
• Project management development

MR upgrade to come
32
Business Units
33
Petrosea
Mining and Mine Services Engineering and
Construction in Oil Gas Infrastructure and
Minerals Processing Clough owns 82 Listed on
Jakarta SX
34
Key contractsGunungbayan Contract Overburden
Stripping

• GBP USD140m
• 2005-2008
• Overburden removal (drill blast)
• 28 million BCM per annum
• 7 x 250T fleets, 3 x 100T fleets
• (35 x 100T trucks)

35
Key contracts Toms Gully Underground Gold Mine

• Toms Gully gold mine
• Alliance between Renison and Petrosea.
• Northern Territory Australia
• Petrosea mining equipment and underground mining

36
Key contracts Sanga Sanga Coal Mining

• Sanga Sanga USD100m
• 4 year contract
• Topsoil clearing, overburden removal, coal load
  and haul

37
Key contractsSupply base

• Petroseas Offshore Supply Base at Tanjung Batu
• Current clients include Chevron and Total
• Used for 25 years as logistics hub for the region
• Upgrade currently underway new infrastructure,
  mobile plant and equipment

38
Clough Overview and Company History

• Presentation to JPMorgan
• David Singleton, CEO
• 31 October 2006