NRW Holdings Limited achieved another record year with sales revenue of $745 million, a 22% increase from FY 2010; generating a 17% increase in net profit after tax to AUD 41.2 million. We achieved returns on average capital employed of 29.6%, and have successfully preserved a conservative net debt to equity position of 19.8%.

The repercussions of the Global Financial Crisis, followed by the Super Tax and MRRT, continued to have some legacy through industry, primarily with respect to project commencement delays. We were sheltered from the majority of negative impacts due to the strength of our relationships with our clients and the expansion of scope on some existing projects.

In April and May 2011 NRW raised a total of AUD 76 million from an equity placement and SPP that was well supported by institutional and retail investors. The funds were used in the transaction to purchase equipment from Comiskey Earthmoving which was subsequently deployed at the Middlemount Coal project in Queensland.

The award of the Middlemount Coal project was a milestone achievement in the Group’s diversification strategy across commodity, client and geography as well as expanding the overall tenure of the Mining Division‘s order book. Overall, the Mining Division ended the financial year strongly, with a 60% increase in revenue.

NRW’s Civil Division has had considerable success during the year with work in hand of approximately AUD 650 million and finalisation of the Rio Tinto Iron Ore Preferred Contractor five year Framework Agreement. The agreement nominates NRW as Rio Tinto Iron Ore’s preferred earthworks contractor for two significant streams of work; the Port Stream and Western Pilbara Stream. In addition, NRW continues to expand its concrete division with contracts awarded at Herb Elliott Port for Fortescue Metals Group, and Cape Lambert Port for Rio Tinto Iron Ore.

Action Drill and Blast, established in April 2010 to initially provide an internal service, has now successfully broken into the drill and blast market as a contractor in its own right. With revenue of

AUD 27.8 million in its first full financial year (representing 297% growth), Action Drill and Blast has now built up an experienced team of over 200 people.

Overall, the 2011 financial year result was pleasing and represents the endeavors of hard work and commitment that our Board, management team and employees have dedicated to the business. The Company reaffirms its commitment to seeking out profitable opportunities to diversify, whilst continuing to build upon core capabilities to successfully deliver existing projects.

HIGHLIGHTS
1. 22% increase in revenue to AUD 745 million
2. 12% increase in EBIT to AUD 64.6 million
3. 5 year Middlemount Coal mining services contract
4. 5 year framework agreement with Rio Tinto Iron Ore
5. Record order book of AUD 2.0 billion
6. Conservative net debt to equity position of 19.8%
7. 17% increase of NPAT to AUD 41.2 million