Financial Summary

1
Financial Summary

• Presentation by Andrew Walsh, CFO
• 31 October 2006

2
Agenda

• Group historical performance
• Earnings by Lines of business
• Liquidity
• Summary of latest financials (30th June 2006)
• Outlook

3
Financial Years 2001-2006

• Inconsistent order intake profile
• A number of difficult lump sum projects won in
  2001/2002 to grow headline Revenues
• 2003 Revenues 1.1bn
• Resources stretched
• Projects over budget
• Earnings impacted in 2001- 2003 Profits mostly
  on the back of asset sales including sale of
  buildings

4
Financial Years 2001-2006 - Earnings

• 2004 Profits supported by close out of claims on
  legacy projects
• underlying EPC projects loss making (BassGas)
• low returns from Petrosea and Services
• Property business contributes 10m to group
  results
• 2005 loss almost entirely Bassgas
• 2006 Impact of G1 and Panna (Indian projects)

5
Results by Line of Business
6
Earnings by Lines of Business
7
Profit by Lines of Business - Projects

• Line of business is predominantly fixed price,
  EPC style projects
• Losses reported on
• Bassgas Contract cost increases, Bonds (LD)
  claims, legal costs
• G1 and Panna Engineering changes impacted
  offshore schedule and major customer delays on G1
• Inconsistent activity levels (first half of 2005
  very low order book)

8
Profit by Lines of Business - Services

• Services business has continued to grow. The
  business has won a number of multi year
  engineering and OM contracts over the past 2
  years -
• Gorgon
• Conoco Philips
• Saudi Aramco
• Woodside ESC
• Plus growth in Engineering in Shedden and in
  support of Clough projects
• And most recently Boddington with Murray and
  Roberts

9
Profit by Lines of Business - Petrosea

• Petrosea is fully consolidated in the Clough
  group accounts.
• Growth is in Mining, Supply base and improved
  returns on Oil and Gas Offshore projects
• Mining includes 2 major multi year mining
  projects (250m). Investment in new plant in
  support of these projects - 30m (mostly funded
  through equipment suppliers)
• Petrosea is listed on the Jakarta SX current
  market cap is 93.5m (circa net assets)

10
Profit by Lines of Business - Property

• Property has grown from a 3m earnings per annum
  business to an average 11m per annum over the
  last 3 years.
• Further development requires incremental funding
  plus structured finance vehicles.
• Clough announced the proposal to sell August 06.
  Net assets in balance sheet at 30th June - 56m.
• Sale process well progressed through Investec
  completion Q4,06/Q1,07

11
Cash Holdings Debt

• Cash holdings reduction is repayment of advances
  and Contract losses (Including Bassgas)
• Debt increases include adverse funding on Indian
  contracts, increased equipment finance for
  Petrosea asset acquisitions (mining) and
  increased activity in Property financed through
  individual projects.
• Delays on G1 and Panna impacted Debtor and
  Creditor balances at year end. Agreements reached
  post year end have improved position

FY 2005 and 2006 balances adjusted for AIFRS
12
Financial Performance - Summary
Year Ended 30 Jun 2006 2006 2005 M M
Net Profit (Loss) after tax (15.1) (57.6) Gro
up Turnover 922.0 629.5 Cash Holdings 53.6 64.9
Debt (114.1) (59.6) Net Assets 187.7 175.4 New
orders Order Intake 918.9 1097.9 Order
Book 808.7 853.6
13
Results by Half Year
14
Profit 2 Year Outlook
Earnings Before Interest Tax ( Millions)
-15
-10
-5
0
5
10
15
20
Clough
EBIT RANGE
Projects/EPC
Clough
EBIT RANGE
Services/EPCM
EBIT RANG
Petrosea
EBIT RANGE
Clough Property
Update August 06
15
Summary

• Risk profile in current order book substantially
  different to prior years major outstanding risk
  is close out of Panna and G1
• Property business sale announced
• Convertible note issue 38m December 06 fully
  underwritten by Murray and Roberts at 36.8cents
  available to all shareholders (coupon rate 10)
• Bassgas arbitration hearing first phase
  expected Q1 2007

16
Questions

• Presentation to JPMorgan
• Andrew Walsh, CFO
• 31 October 2006

17
Financial Year 2001-2003
18
Financial Year 2004-2006
19
Profit 2 Year Outlook
EBIT RANGE
20
Profit by Business Unit