Transfield Services progressing well against strategic objectives

21 October 2010

Transfield Services’ Chairman, Mr Tony Shepherd, said today that the Company is progressing well against the strategic objectives it identified in the 2010 financial year.

“In 2010 the Board approved a corporate strategy aimed at streamlining our operational structure, strengthening our executive team and increasing our focus on business development.

“We are delivering on these priorities and the Company is starting to see the benefits. We have a strong and flexible balance sheet, a dynamic Chief Executive Officer and a strengthened management team driving all aspects of our performance.”

In the 2010 financial year Transfield Services produced record operating free cash flow of A$225 million and reduced gearing to 25 per cent.

Transfield Services’ Managing Director and Chief Executive Officer, Mr Peter Goode, said: “In the last financial year we laid the foundations for the growth of our Company. We now have a flexible capital position and a leaner and more efficient operating structure that allows us to focus on growth opportunities as they become available.”

Since 1 July 2010 Transfield Services has secured more than A$1.1 billion of work with new and existing clients in Australia, New Zealand and North America.

“The healthy flow of new business in the first quarter is evidence of the high quality of service and value we are delivering to our diverse client base,” Mr Goode said.

“With strict financial discipline and our renewed focus on business development we will continue to work hard to convert more of our opportunities. We will also maintain our rigorous safety standards.”

Earlier this month, Transfield Services announced that Diane Smith-Gander will be joining its Board as an independent non-executive director with effect from 22 October 2010. Ms Smith-Gander is a director of Wesfarmers Limited and NBN Co Limited, which is overseeing the rollout of the National Broadband Network, and is also Chairman of the Board of Basketball Australia.

Ms Smith-Gander’s appointment follows Douglas Snedden joining the Board in December 2009, also as a non-executive director. Mr Snedden has more than 30 years’ experience in finance, consulting, strategic management and outsourcing, most recently as Country Managing Director of Accenture (formerly Andersen Consulting) in Australia.

In addition, Mr. Jeet Bindra has agreed to accept the post of Deputy Chairman. Mr. Bindra has substantial global experience, has a deep knowledge of the hydrocarbons sector and is resident in North America – an important market for the Company.

Mr Shepherd said: “We are delighted to welcome Diane and Douglas to the Board as part of our ongoing Board renewal process. We are pleased that Jeet has accepted the position of Deputy Chairman, and are indeed fortunate to have a person of his calibre on our Board. Their collective depth of international experience and multi-industry backgrounds will be invaluable assets to Transfield Services.”

The Company provides more than 80 per cent of its services under secure, long-term asset management contracts, and has renewal rates in excess of 95 per cent.

It has a robust pipeline of work developing in power, defence, transport and social infrastructure, providing continuing diversification for the business.

Subject to there being no further deterioration in economic conditions, the Board reiterates a target of mid-single digit percentage growth for FY11 Net Profit after Tax. This guidance is based on FY10 normalised NPAT of A$96.0 million and assumes foreign exchange rates as at 30 June 2010. It does not include any restructuring or cost reduction initiatives.

Copies of the Chairman and Chief Executive Officer’s speeches from today’s Annual General Meeting are available at www.transfieldservices.com.

Transfield Services progressing well against strategic objectives

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