Notes to the Concise Financial Report

The concise financial report has been prepared in accordance with the Corporations Act 2001, Accounting Standard Concise Financial Reports (AASB 1039). The financial statements and specific disclosures required by the AASB 1039 have been derived from the Consolidated Entity’s full financial report for the financial year. Other information included in the concise financial report is consistent with the Consolidated Entity’s full financial report. The concise financial report does not, and can not be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group, as the full financial report. Further financial information can be obtained from the Consolidated Entity’s full financial report which is available free of charge on request.

The concise financial report is presented in Australian dollars and has been prepared on a historical cost basis, except for derivative financial instruments and available-for-sale assets that have been measured at fair value at reporting date. The Consolidated Entity’s accounting policies have been consistently applied by each entity in the Group and are consistent with those in the previous year. A full description of the accounting policies adopted by the Consolidated Entity may be found in the Consolidated Entity’s full financial report.

Interest Bearing Loans

Syndicated Loans

On 10 October 2008, Leighton Finance Limited, a wholly owned subsidiary of the Company, entered into a syndicated bank facility for $520 million, maturing on 10 October 2011. Amount outstanding as at 30 June 2010: $nil (30 June 2009: $200 million).

On 14 September 2007 LMENA No.1 Pty Limited, a wholly owned subsidiary of the Company, entered into a syndicated bank loan for US$434 million loan maturing on 30 September 2012 to finance its investment in Al Habtoor Engineering Enterprises LLC. The loan was recourse only to the investment in Al Habtoor Engineering Enterprises LLC. On 31 March 2010, the facility was Amended and Restated. The Amended and Restated facility is for US$368 million and is guaranteed by the Guarantor Group resulting in a reclassification of the facility during the period from limited recourse loan to interest bearing loans. Amount outstanding as at 30 June 2010: US$366 million (30 June 2009: US$399 million) equivalent to $431 million (30 June 2009: $492 million). Repayment instalments totalling US$36 million are due within 12 months of the reporting date.

Guaranteed Senior Notes

On 15 October 2008, Leighton Finance Limited, a wholly owned subsidiary of the Company, issued a total of US$280 million Guaranteed Senior Notes in three series:

• Series A Notes: US$111 million Guaranteed Senior Notes at the rate of 6.91% maturing on 15 October 2013
• Series B Notes: US$90 million Guaranteed Senior Notes at the rate of 7.19% maturing on 15 October 2015
• Series C Notes: US$79 million Guaranteed Senior Notes at the rate of 7.66% maturing on 15 October 2018

Interest on the above notes will be paid semi-annually on the 15th day of April and October in each year. Amount outstanding as at 30 June 2010: $329 million (30 June 2009: $345 million).

Medium Term Notes

Leighton Finance Limited, a wholly owned subsidiary of the Company, issued a total of $280 million Medium Term Notes on the following dates:

• 28 July 2009: $230 million
• 12 August 2009: $50 million

The Notes bear interest at the rate of 9.5% and mature on 28 July 2014.

Other

Other current unsecured loans outstanding as at 30 June 2010: $116 million (30 June 2009: $76 million).

Finance Lease Liabilities
The Group has leased mining plant and equipment in Indonesia under finance leases that expire within five years of the reporting date.

Limited Recourse Loans
The Group has limited recourse property development loans secured against certain property development assets of the Group. Amount outstanding as at 30 June 2010: $62 million (30 June 2009: $30 million).

The LMENA No.1 Pty Limited syndicated bank loan, amount outstanding at 30 June 2009 of US$399 million (equivalent to $492 million), has been reclassified to ‘Interest bearing loans’ during the year following an amendment to the facility.

Leighton Finance International Notes
On 16 May 2006, Leighton Finance International Limited (the “Issuer”), a wholly owned subsidiary of the Company, issued US$110 million of 5-Year Fixed-Rate Guaranteed Notes (“Leighton Finance International Notes”).

Leighton Finance International Notes will mature on 16 May 2011 unless previously redeemed or purchased and cancelled and are subject to redemption in whole at their principal amount at the option of the Issuer at any time in the event of certain changes affecting taxation in Australia or Indonesia.

PT Thiess Contractors Indonesia and PT Leighton Contractors Indonesia, both wholly owned subsidiaries of the Company, jointly and severally guarantee the obligations of Leighton Finance International Limited and Noteholders have no recourse to other Group companies.

Subsequent to reporting date:

• The Group declared a final dividend of 85 cents 100% franked.
• On 21 July 2010, Leighton Finance (USA) Pty Limited, a wholly owned subsidiary of the Company, issued a total of US$350 million Guaranteed Senior Notes in three series:
  – Series A Notes: US$90 million Guaranteed Senior Notes at the rate of 4.51% maturing on 21 July 2015
  – Series B Notes: US$145 million Guaranteed Senior Notes at the rate of 5.22% maturing on 21 July 2017
  – Series C Notes: US$115 million Guaranteed Senior Notes at the rate of 5.78% maturing on 21 July 2020

Interest on the above notes will be paid semi-annually on the 21st day of January and July in each year.