INTERVIEW WITH MR. WAL KING, CHIEF EXECUTIVE OFFICER, LEIGHTON HOLDINGS LIMITED (LEI)

“CEO Profile-Wal King”

http://www.brr.com.au/event/49447

FRIDAY, AUGUST 15, 2008, 4:45 PM

            BRR    Hello and welcome to Boardroom Radio. I'm Cameron Young. Today, we welcome Mr. Wal King. Wal King is the Chief Executive Officer of Australia’s

10                    largest project development and contracting group. Leighton Holdings also being one of the top 100 companies in terms of total shareholder returns and during that time revenue has increased from 1.3 billion to 14.5 billion in share price. Under Wal’s tenure, they’ve got from 90 cents to over $40. Welcome, Wal and thanks for joining us.

15        LEI       Thank you.

            BRR    Wal, what have been the most consistent characteristics of your leadership over the years and that has contributed to the success of Leighton Holdings?

            LEI       Well, one of the core things that we have is people and people produce

20                    results. I mean, once we did not have money, so we had to borrow the money. But it all revolved around people, achieving results through people. So we have a number of core values, which I call the rules of racing that actually is the glue that holds the company together and in one of those sort of values is giving sort of individual freedom and rewarding people. So we

25                    spent a lot of time in establishing objectives in our business planning process. Now those objectives really tell you what you're supposed to achieve. It would necessarily tell you how to achieve it but one you've achieved it, we believe there should be, you know, a good reward for it. So we have a culture and I do believe that the culture does count and we have a “can do” culture, we

30                    have a culture that rewards people, we have a culture of achievement, and I guess I've always been on the view, if you’re a winning football team, generally, you will continue to win and, you know, that's one of the hallmarks of Leighton. We distribute intelligence through the organization. You know, I haven't got the keys to all intelligence, but I have the keys to very little

35                    intelligence. So I expect the people, in fact, to be able to lead. So right through our organization we have a very intelligent organization, and people have the freedom to operate, they know where they're supposed to go. There's many ways of achieving the result and its different strategies so people can employ their own strategies to achieve the results and if they

40                    achieve those results, they’re well rewarded, and hopefully, get great job satisfaction.

            BRR    Wall, as I mentioned, you've been chief executive officer of Leighton Holdings for roughly twenty-one years now. When you started out in your role, did you

45                    ever envisaged Leighton Holdings becoming a top 20 company employing 37,000 people around the globe?

            LEI       Well, it's a sort of a strange experience. I mean, strange experience even more so that I come from a little country town. We had a one-teacher school and, you know, you never envisaged that, you know, you would travel such a path and it's been, you know, a really great experience. So when we set out, when I set out as chief executive, I still had those very strong beliefs that you achieve things through people. And as we worked our way, you know, we've had a lot of successes but we had some failures. You really have to get over

5                      your failures and move forward with a positive attitude, and you know, everything's about our learning experience and learned by, you know, your issues and your mistakes, your positives, your negatives and have the courage to move forward. And I mean, we have a very courageous organization that, you know, was really prepared to go forward and it's really

10                    the people in the organization that’s had the courage.  And hopefully, I've been there to provide some of the group guidance and leadership.

            BRR    Wal, You've been in the industry for over thirty years, what would you say are some of the biggest challenges affecting the industry, particularly now in

15                    these times of financial turmoil?

            LEI       Well I think it's courage. I mean, courage to go on in the face sometimes of adversity. I mean, in our business, I mean, we implement, you know, big, large, complex projects and we have been very much enlightened, you know, very much a “can do” attitude, you know, never give up, continue to go on.

20                    And you know, that's not to say from time to time that, you know, our beads of perspiration, you know, coming off from our brow with some of the issues that we deal with but we've always been able to never get in our way. And people have said to me, well, you know, aren't you so lucky, you're in the right place at the right time. I said, well, you might call it luck but I've used 20 the

25                    example that it's like setting your sail from here, from Sydney to Los Angeles. It's no mistake that you’ll actually wake up in Los Angeles in the right place. So if you set out on a sailing ship and spent your time, you know, beneath the deck and did not stick your head up, it would be a miracle if you actually arrive in Los Angeles. But we spent, you know, our time navigating our way,

30                    you know, through the environment. There are always challenges coming at you and if you use the analogy of sailing to Los Angeles, if you we head out, through the heads in one way it hits you and you say, that's it, it’s all over, I give up, and head back to Sydney. I mean, we've always had the courage, the organization had the courage to go on through good times and bad times

35                    but always navigating. I guess what's different at this point in time, you know, the environment is turbulent or choppy. So, you know, there's all sorts of signals coming to you about the directions of the economy, you know price of debt, the projects, skill shortages, you know, greenhouse, endless issues that we have to face in the environment. So you really have to take a considered

40                    position. So, yes, we do have as an organization the intelligence and the courage and the wherewithal to navigate our way through, you know, these choppy waters and we'll come out the other side bigger and stronger. And that's been our hallmark of Leighton. You know, we've always navigated, we've had periods where the waves had been bigger in other times but we’ve

45                    always come out the other side stronger and more powerful.

            BRR    Wal, you’ve outlined a substantial part of Leighton's growth coming from the Middle East and in Asia, India. You mentioned today that Siberia and Mongolia are outlined as part of that growth strategy. If ten years ago, you mentioned that certain of Siberia and Mongolia would have been met with much trepidation in the financial community? Today, it's quite really an accepted practice. Where do you see Leighton Holdings going in the next fifteen years and what frontiers do you expect Leighton Holdings to push?

5          LEI       Well, we've got - I supposed we're very fortunate that if we don't have in the main big, large scale, you know, fixed investments, i.e., we're not in the sort of car manufacturing business where you invest a billion dollars in a particular location to produce motorcars. So we can be very flexible in navigating our way in the future. And we've always endeavored to navigate to where the

10                    opportunities are that suit us. And it's a changing world, it's changing very rapidly so, for example, in the resource business there are lots of resources in Siberia and I have no doubt that those resources will be, you know, developed in the period ahead, but there's also resources in places like Africa and you have to ask yourself the question, you know, would you participate in

15                    the development of those resources. So I think it's a big world out there, full of opportunities. And, you know, the company will continue to grow and prosper as it maneuvers its way through, you know, the ever-changing future.

            BRR    Are there any countries that you've looked at that you feel the risk is too great

20                    for you to return?

            LEI       Well in many countries that, you know, we go through a sort of a qualification process. And I mean the glaring example of that was, of course, Iraq. After the invasion of Iraq, I mean, the Australian government was encouraging, you know, contractors like ourselves to go over there and participate in the

25                    reconstruction. And of course, when we did send people to have a look, I very quickly came to the conclusion there is no way that we would put our people in danger in such a way. So there's a whole series of countries that we wouldn't participate in. I think the first issue is, you know, personal danger to our people and the second is, you know, the ethical and moral standards

30                    under which they operate, you know, (inaudible). So, you know, it sort of mean the developing world, I mean, there are lots of challenges in certain countries we won't go to.

            BRR    Wal, you're truly successful at Leighton Holdings. You are one of the

35                    executives, one of the most respected CEOs in Australia and were the 2008 recipient of the Chartered Accountants Business Leader Award. At the same time, you're a publicized lover of extreme sports and have upcoming planned trips in the next few years, which include, I believe, trekking new town, at least getting the northern corner of Turkey and Argentina and board racing in

40                    Papua, New Guinea. How do you manage to achieve the incredible work life balance? And can you give us an idea of the typical week for Wal King?

            LEI       Well, I manage my saddle f a little strange. I’ve never taken myself, you know, all out seriously, albeit I’m working out sort of a serious business and I have an enormous, you know, array of friends that, you know, keep me in touch

45                    with reality. And I believe that, you know, it’s very important that you do keep in touch with a lot of people, too. So in my array of friends, you know, they make sure that, you know, I’ll keep in touch with reality. And the work life balance I think it’s very important that you, you know, follow things that you like, your passion to, you know, keep yourself sane. I do know business people look, you know, they sit in a corner office and they believe that it is the most important thing in life. But, you know, eventually you will, you know, vacate the corner office and when you reflect on what you’ve done, you know, you’ve also got your work achievements but your personal achievements

5                      also, I think, very important to your mental state of mind and in the sort of a sports and activities that I pursue it’s always been given me great sort of pleasure and a great balance in my view of the world.

            BRR    Wal King, it’s been actually a pleasure spending your day. We thank you very

10                    much for your time.  Congratulations on another set of record results, twenty-one years.

INTERVIEW CONCLUDED

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