SGH LIMITED — Interim / Quarterly Report 2012

Feb 28, 2012

29 February 2012

Company Announcements Office Australian Securities Exchange Limited Level 6, 20 Bridge Street SYDNEY NSW 2000

By Electronic Lodgement

Total pages: 31 (including cover letter)

Presentation of Results to Analysts

Following is a copy of the presentation of Results for the financial half year ended 31 December 2011.

Yours faithfully For and on behalf of Seven Group Holdings Limited

Warren Coatsworth Company Secretary

Seven Group Holdings Limited | ABN 46 142 003 469 38-42 Pirrama Road | Pyrmont NSW 2009 Australia | Postal Address: PO Box 777 | Pyrmont NSW 2009 Australia Telephone +61 2 8777 7777 | Facsimile +61 2 8777 7192

RESULTS FOR THE HALF YEAR ENDED31 DECEMBER 2011

Presentation on 29 February 2012

Disclaimer

Basis of preparation of slides

• Included in this presentation is data prepared by the management of Seven Group Holdings Limited (SGH) and other associated entities and investments. This data is included for information purposes only and has not been subject to the same level of review by the company as the statutory accounts and so is merely provided for indicative purposes. The company and its employees do not warrant the data and disclaim any liability flowing from the use of this data by any party.
• SGH does not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations concerning future results and events. Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, materials and equipment) that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward-looking statements.
• Unless otherwise indicated, all references to estimates, targets and forecasts and derivations of the same in this material are references to estimates, targets and forecasts by SGH. Management estimates, targets and forecasts are based on views held only at the date of this material, and actual events and results may be materially different from them. SGH does not undertake to revise the material to reflect any future events or circumstances.

Non-IFRS Financial Information

• SGH results are reported under International Financial Reporting Standards (IFRS) including Segment EBIT and Segment EBITDA, which are used to measure segment performance. The underlying segment performance measures exclude significant items, including impairment, fair value movement of derivatives and net gain on sale of investments as detailed in slide 22.
• This presentation also includes certain non-IFRS measures including Underlying Net Profit after Tax (excluding significant items), total revenue and other income, Segment EBIT margin and Segment EBITDA margin. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review.

• Industrial Services Jim Walker
• Media & Other Investments Peter Gammell
• Outlook and Subsequent Events Peter Gammell
• Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

31 DECEMBER 2011HALF YEAR RESULTSPresentation 29 February 2012

Slide 4.

Key Financial Numbers Total Group – Half-Year Results

Hlf-YRltaearesus	6Mhttonso31D2011ec	6Mhttonso31D2010ec	%Change
TlRtoaevenue	$1,955.6m	$1,512.4m	%29
21,TAEBID	$288.6m	$220.0m	31%
2ff(f)Udlldiiiiiiittttttneryngneproaeraxexcungsgncanems	$169.3m	$127.6m	33%
2Sf()ldiiiiiiittttgncanemsncungaxmpac	$(107.5)m	-	-
Rdfffhdiittttttereneraerareerpopoxopo	$61.8m	$127.6m	52%-
Udlh(ldf)iiiiiiittnernearnnsersareecnsncanemsyggpxugg	46tcens	35tcens	31%
Sh(dh)iitttauoryearnngspersareornarysares	11tcens	35tcens	69%-
I2012fllfkdddd(blAl2012)iiiitnermuyranevenpayaepr	18tcens	18tcens	-

Notes:

1. EBITDA = Profit before depreciation and amortisation, net finance costs and tax, and before significant items

2. Significant items = includes impairment, fair value movement of derivatives, net gains on the sale on investments and significant items relating to investments in associates. (Please refer to slide 22 for listing of significant items).

Segment Analysis Total Group – Half-Year Results

	WTesrac	WTesrac	ioNltana	iaMde	Ohetr	Tltao
3C20HALFYEARENDED1DEEMBER11	iaAltrusa	Cinha	irHe	Intmtsvesen	Intmtsvesen
	$m	$m	$m	$m	$m	$m
Stegmenrevenue	1,507.3	317.8	101.7	-	28.9	1,955.6
Slttegmenresu
Sfobiittt,tegmenearnngsereneresax,
(a)d(EBITDA)iiottanamorsan	186.4	16.2	31.7	72.6	(3.5)	303.5
Ddiioiiottteprecananamorsan	()17.5	(3.9)	(2)1.	0.0	(8)11.	(34.)5
Sibfidtttegmenearnngseoreneresan	168.9	12.3	30.5	72.6	(15.3)	269.0
(b)(EBIT)tax
C&iottttrpraeransacncossoo						(15.0)
()cUdliGEBITneryngroup						254.0

(a) Segment EBITDA comprises profit before depreciation and amortisation, net finance costs, tax, net gain on sale of investments, impairment of assets, fair value movement of derivatives, share of significant items relating to results from equity accounted investees, corporate operating costs and transaction related costs

transaction related costs(b) Segment EBIT comprises segment net operating profit before net finance costs, tax, net gain on sale of investments, impairment of assets, fair value movement of derivatives, share of significant items relating to results from equity accounted investees, corporate operating costs and

(c) Underlying results exclude significant items, and are used internally by management to assess the performance of the business.

Half-Year Highlights

• Outstanding performance by WesTrac Australia with strong new equipment and service revenue growth driving a 73% increase in Segment EBIT
• Good growth in China (32% increase in USD revenue) although some variability in market conditions
• National Hire and Coates continue to trade strongly. SGH completed the compulsory acquisition of the remaining NHR minority interests subject to its take-over offer on 25 January 2012.
• Segment contribution from media investments reflects a lower ownership % in a materially larger group and recognising a post tax return from SWM as income.
• Significant item of $107.5m post tax loss predominantly caused by the share price impairment of SWM.
• Subsequent to year end, the SWM share price has recovered, with the likely impact that the majority of this impairment will be reversed in the 2nd half, should the share price remain at current levels.

Industrial Services Jim Walker

• Media & Other Investments Peter Gammell
• Outlook and Subsequent Events Peter Gammell
• Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

WesTrac Group P&L – Dec 2011 v Dec 2010

Half-Year Result (Excluding National Hire)

	6Mhttonso	6Mhttonso	Chaneg
$m	31D2011ec	31D2010ec	%
Al&hiittusraarevenueoerncome--	1,5140	1,171.2	29%
Chh&iitnarevenueoerncome--	321.9	2690	20%
Tl&hittoareeneoerncomevu	1,8359	1,4402	27%
Alitusraaexpenses-	1,3276	1,0550	26%
Chinaeensesxp-	3057	2545	20%
(i&)TlldDAtoaexpensesexcung	63331,	3091,5	2%5
AlSEBITDAittusraaegmen-	1864	1162	60%
ChSEBITDAitnaegmen-	162	145	12%
SEBITDAtemeng	2026	1307	55%
D&iiiittteprecaonamorsaon	21.5	221	3%-
SEBITtegmen	181.1	1086	67%
S/iEBITRMtegmenevenueargn	99%	%75

1. China 2011 AUD translated results impacted by 10% increase in the AUD v USD exchange rate.

2. Total revenue & other income includes share of results from equity accounted investees

WesTrac Group – Dec 2011 v Dec 2010

Half-Year Result (Excluding National Hire)

• Group performed strongly in key measures
• Over 5,550 employees in group
• Australia and China growing profitably

31 DECEMBER 2011HALF YEAR RESULTSPresentation 29 February 2012

Slide 10.

Notes:

• 1. China AUD results impacted by AUD v USD exchange rate
• 1. Total Revenue and Other Income numbers in the graph includes revenue, other income and share of results from equity accounted investees

WesTrac Australia – Dec 2011 v Dec 2010

Half-Year Result (Excluding National Hire)

3,452 employees

• 30% product sales growth
  • Driven by coal and iron ore mining
• 27% product support sales growth
  • Large and growing installed equipment base
  • High mining equipment utilisation
• 73% EBIT growth
  • EBIT margin improved
• Operating margins improved

$m	6Mhttonso3201D11ec	6Mhttonso32001D1ec	Change%
iWTAltesracusraa
Pdltroucsaes-	8987	6896	30%
Pdttroucsuppor-	6086	477.6	27%
1Oh/iterreenencmevuo-	6.7	40	68%
iTldhttoarevenueanoerncome	401,51	21,171.	29%
SEBITDAtegmen	86.41	6.211	60%
SEBITDAitegmenmargn	123%	99%
SEBITtegmen	1689	97.6	73%
SEBITitemenmarngg	2%11.	83%

Note:

1. Other Income includes Share of results from equity accounted investees

WesTrac China – (AUD) Dec 2011 v Dec 2010 Half-Year Result

	213l5empoyees,	AUD$m	6Mhttonso31D20113ec	6Mhttono1D2010ec	Chaneg%
	SAUDidttrongmpacefSliUDlttransaonosaes	CiWThesracna
		Pdltrcsaesou-	255.7	206.0	24%
	BhEBITdEBITDAhttoangrow	Pdttroucsuppor-	62.1	62.0	0%
	hidttargesaceev	Ohiterncome-	41	01.	30%1
	Hihdltgprocsaesu	Tl&hi(AUD)ttoarevenueoerncome	321.9	269.0	20%
	Cflttonroocoss	SEBITDA(AUD)temeng	16.2	145	12%
	EBITDA&EBITMiargnsddreucevpcp	SEBITDAitegmenmargn	0%5.	4%5.
	Dibiflirvenmxoowermarn	S()EBITAUDtegmen	2.31	011.	2%1
	ygdltproucsaes	SEBITitemenmarngg	3.%8	%4.1
	CATilteqpmensppuuyiibillttmprongssanavuyhhifChitrogepansononaux	/SAAUDUDldtttverageraerevenueransae-	1.03	0.94	10%

factories

WesTrac China – (USD) Dec 2011 v Dec 2010 Half-Year Result

37% USD product sales growth

• Increased demand for engines due to improvement in oil & gas sector
• Growth in large mining support equipment for coal mines
• 10% product support sales growth
  • Driven by increased population of large excavators
  • Overhauls of large gas engine fleet
  • Branch expansion
• 20% EBITDA growth

USD	6Mhttonso	6Mhttonso	Change
$m	3201D11ec	32001D1ec	%
WTChiesracna
Pdltroucsaes-	2634	9281	3%7
Pdttrcsrouuppo-	640	580	10%
Ohiterncome-	42	01.	320%
Tl(USD)toarevenue	331.5	251.8	32%
SEBITDA(USD)tegmen	168	140	20%
SEBITDAitemenmarngg	51%	56%
SEBIT(USD)temeng	128	103	24%
SEBITitegmenmargn	39%	41%

31 DECEMBER 2011HALF YEAR RESULTSPresentation 29 February 2012

Slide 13.

WesTrac Group – The Next 12 Months

• Strong market fundamentals expected to drive further growth, particularly in Australia
  • China outlook overall is positive, however growth is expected to be slower than previous years
• Major facility expansion plans well underway by landlord
  • Newcastle construction underway for leased facility, targeting 30 June 2012 operation commencement
  • Perth parts distribution centre under construction by landlord
  • Redevelopment of WesTrac Institute – WA completed September 2011
• China branch expansion continues, currently we have:
  • 52 branches and storefronts and
  • 23 SEM (Chinese Wheel Loaders) shop front facilities

National Hire Group Limited Half-Year Result

SGH ownership in National Hire was 99.7% at 31 December 2011. Compulsory acquisition of minorities was completed on 25 January 2012.

• Share of profit from equity accounted investments (Coates Group) is 125% above pcp
• Equipment Sales and Support revenue $101.7m – up 85% against pcp.

Coates Group revenue $637m – up 28% against pcp

NilHi$taonarem	6Mhttonso3201D11ec	6Mhttonso32001D1ec	Change%
Revenue	101.7	550	85%
Ohiterncome	1.4	1.1	27%
Sffhlittareoresusromequy	265	411.	2%15
dittaccneneseesouv
Oittperangcoss	(970)	(555)	75%
SEBITDAtegmen	31.7	201	64%1
D&iiiittterecanamrsanpooo	(1.2)	(07)	71%
SEBITtegmen	305	11.3	170%

Notes:

1. National Hire owns 46.1% of Coates Group. Coates Group is an equity accounted investment and therefore not consolidated into NHR's results.

2. 31 Dec 2011 includes full Sykes operating results ($37.6m in revenue) where 31 Dec 2010 includes approximately 1 month trading by Sykes ($5.2m in revenue)

31 DECEMBER 2011HALF YEAR RESULTSPresentation 29 February 2012

Slide 15.

• Industrial Services Jim Walker

Media & Other Investments Peter Gammell

• Outlook and Subsequent Events Peter Gammell
• Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

Media Investments P&L (excluding significant items)

	6Mhttonso	6Mhttonso
$m	3201D11ec	32001D1ec
ShfAitareossocaes
SWMditeeneseav-	50.0	0.0
1SMdGieenearvoup-	0.0	071.
1WAlNittesusraanewspapers-	0.0	12.0
ClddMdHldiiitnsaeeansooog-	10.3	10.2
Ohiterncome
2Ohiittternvesmenncome-	2.31	0.5
SEBITCibitttegmenonruon	726	937
Bittynvesmen
SWMd(l.SMGWAN)&iiteveneseapcpnc-	60.6	83.0
ClddMdHldiiitonsoaeeaongs-	0.31	0.21
Ohter-	1.7	0.5
SEBITCibitttemenonrongu	726	937

Since last year, SGH's media investments in Seven Media Group and West Australian Newspaper Holdings have been combined to form Seven West Media.

This has resulted in SGH now having a lower ownership % in a materially larger group and recognising a post tax return as income.

Notes:

1. Seven Media Group and West Australian Newspapers results are incorporated into Seven West Media in 2011 at new ownership level and new investment structure.

2. Other Income includes accretion on the Seven West Media RCPS and dividend income from Prime Media.

Seven West Media HY12 Overview

• Profit after tax of $163.0m up from $50.1m in pcp (before SMG merger).

• Basic EPS 26.1 cents v 23.2 cents in pcp (before SMG merger)

• SWM Debt refinanced in November 2011 with average 4 year tenor

• EBITDA of $340.8m v pro-forma pcp of $364.5m (including SMG operations).

• Overall group EBIT margin still over 30% despite difficult market and consumer sentiment

• Television EBIT down 7% on pro-forma pcp

  • Po-forma revenue decline 1%, Pro-forma cost growth 1%
  • EBIT margin of 31% & EBITDA margin at 34%
  • Number 1 in revenue share for CY11 at 38% of Metro market
  • Number 1 in revenue share since the December 2006 half
  • Won every official ratings week in 2011

• Magazines earnings held consistent despite difficult conditions

  • Revenue decline of 6% v pro-forma pcp
  • Expense reduction of 7% v pro-forma pcp
  • EBITDA margin improvement to 18%

• Newspaper earnings reflects challenging economic conditions

  • December circulation up 0.32% for Monday to Friday editions
  • Revenue decline of 1.6% v pcp
  • EBITDA margin maintained at 42%

• Yahoo!7 double-digit EBITDA growth

  • Revenue growth of 40%
  • EBITDA growth of 18% to $26m
  • Strong EBITDA margin of 40%

Other Investments P&L

$m	6MhTtonsoD312011ec	6MhTtonsoD312010ec
Revenue	289	260
OhIterncome	167	192
Shflfidittttareoresusromequyaccounenvesees	06	()03
iTldhttoarevenueanoerncome	462	449
()Eldiidtttpensesecngneresancorporaexxu	()497	()397
SEBITDAtegmen	()35	07
Dii&iittteprecaonamorsaon	()118	()93
SEBITtegmen	(5)13	()23

On 20 February 2012, SGH announced the conditional sale of its vividwireless business to Optus for a sale price of $230m

Notes:

• 1. Revenue growth from stronger trading in both vividwireless and Engin
• 1. Other income in 2010 included $3.5m of gains on sale of listed investments
• 1. Expense in 2011 include provisions in relation to the vividwireless networks and operations

• Industrial Services Jim Walker
• Media & Other Investments Peter Gammell

• Outlook and Subsequent Events Peter Gammell
• Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

Consolidated Profit and Loss

Total Group

$	6Mhsttoon	6Mhsttoon	C%hae
m	31D2011ec	31D2010ec	ng
Revenue	961,55.	2.41,51	29%
Ohiterncome	39.2	29.1	35%
Shflfdiittttareressrmeaccneneseesouoquyouv	88.7	103.8	15%-
Tldhittoarevenueanoerncome	2,083.5	1,645.3	27%
E(lddiiiiitttxpensesexcungeprecaon,amorsaon	(1,794.9)	(1,425.3)	26%
d)ittanneres
UdliEBITDAneryng	288.6	220.0	31%
Ddiiiittteprecaonanamorsaon	(34.6)	(32.2)	%7
UdliEBITnernyg	254.0	187.8	35%
Nfittenancecsso	(49.5)	(22.9)	116%
SfIiiittgncanems:
N/fliittegansarvauemovemens	5.8	0.0	%-
Ifittmarmenassespo	(167.5)	0.0	%-
Ohter	8.2	0.0	%-
Sfibftttttaorproeoreauyx	51.0	1649	69%-
Tfbfdittaxexpenseonproeoreaxan	(35.3)	(37.3)	5%-
bffiiiitteoresgncanems
Tbffiiiiitttaenensncanemsxog	46.1	0.0	%-
SNPATtttauory	61.8	127.6	52%-
PfiibblhhldfSGHtttttroaraeosareoersou	52.1	123.6	58%-

Note: refer to appendix 4D for statutory presentation

31 DECEMBER 2011HALF YEAR RESULTSPresentation 29 February 2012

Slide 21.

Summary of Significant Items

$m	6Mhttonso31D2011ec	6Mhttonso31D2010ec
ISWMkliittttmparmenequyomarevaue-	(161.8)	-
ICMHkliittttmparmenequyomarevaue-	(3.4)	-
OIhittmparmener-	(24)	-
OG/hFliitteransarvauemovemens-	85.	-
Ulhflfdiittttnusuasareoresuromequyaccounenvesee	82	-
Nbffhbiittttteaeneeemsaexoov	46.1	-
SiifiTlItttoagncanems	(0)17.5	00
SNPATtttaoruy	61.8	127.6
NPATldiSiifiIttecnncanemsxugg	1693	127.6

Notes:

1. No items were classified as significant in the 6 months ended 31 December 2010 results presentation due to their size

Consolidated Balance Sheet Total Group

$m	Atsa31D2011ec	Atsa30J2011neu	Change%
Tddhiblhttttraeanoerreceaes+oercrrenassesvu	6507	5787	12%
Iitnvenores	13677,	9896	39%
Iiblttnangeasses	5429	5262	3%
Ittnesmensv	23611,	23664,	0%
Fidtxeasses	2937	2649	12%
Tddhbltraeanoerpaaesy	()6516	()5046	29%
Piirovsons	()980	()963	2%
N/(libilii)tttteaassesaesx	()3533	()3550	0%
Dfdeerrereenevu	()847	()1316	40%-
fDiiiiliDbldtttttervavenancansrumensereae-	()644	()1090	41%-
ODiifiilihtttteraenancansrmenservvu-	()57	()105	46%-
()Ndbttee	()14481,	()8317	3%7
TlShhldEittoaareoersquy	52293,	26819,	6%-

Notes:

1.The reduction in the derivative financial instruments relates predominantly to the impact of the exchange rate movements on fully hedged US Notes. The favorable exchange rate impact on hedging instruments is offset by unfavorable exchange rate movements on the actual Notes.

Consolidated Investment Listing Total Group

$m	28Fb2012eMkVltareae(4)u	31D2011ec	30J2011une
3,4,5SWMd(OdhRCPS)ii+tevenesearnarysares	061,57	9231.	9623
1,4fLdPliittseoroo	3948	3943	3545
2,4AllBkfChiitrcraannaguuo	3.271	2576	2978
3,4ClddMdHldiiitonsoaeeaongs	3870	3581	3584
3CHitaesreo	Ulditnse	363.7	331.3
Ohter	Ulditnse	661	622
TlItttoanvesmens		2361.1,	23664,

Notes:

• 1. Available for sale security fair value movements are carried in reserves until the asset is disposed of or impaired.
• 1. Available for sale security fair value movements are carried in reserves (share price movement in Available for Sale Reserves, Foreign Currency movement in Foreign Currency Translation Reserve).
• 1. Associates carried at historical cost, plus share of associate income, less dividends received, less impairment.
• 1. Estimated market values of listed investments using number of shares held at 31 December 2011 and share prices at 5pm on 28 February 2012.
• 1. Movement in SWM between 30 June and 31 December includes additional investment in SWM DRP and on market acquisitions

Consolidated Net Debt Movement Total Group

$m		6MhTtonso3201D11ec
Ndb(ldidii)30J2011ttteeexcungervavesune		(8371)
Sfiiiiittttgncannvesmenems:NlHiitaonare-SWMditeeneseav-	(90)11(601)	(2502)(1,087.3)
Ohflfdiiittttperangcasowpre-nenancecossanncomeaxCld()iitttaaeenrenepxpu	(165.2)(45.4)
Ohter	(49)	(2)15.5(1,3028)
NfittenancecossDdddiiivenspa	(41.7)(724)	(1141)
		(1,416.9)
fFXdddbiiitttmemennrencrrencenmnaeeovoguyoCi(iii)ldbbllddtttosngneeaanceexcungervaves		(32)1.(448)1,1

Note: Working capital grew by $376.3m in the period, largely in inventory to support higher levels of activity and forward orders.

Slide 25.

Consolidated Debt Maturity Profile At 31 December 2011

Total Group – refer disclaimer

At 31 December 2011 there was $468.7m of available undrawn group borrowing facilities.

• Current "<1 year" debt includes a number of offshore facilities (over 50%) that are regularly rolled over for further terms but which are categorised as current due to the short dated nature of the facility.
• In January 2012 $75m of current Australian debt shown above was rolled over for a further 3 years, and the balance relates to rolling inventory facilities.

31 DECEMBER 2011HALF YEAR RESULTSPresentation 29 February 2012

Slide 26.

• Industrial Services Jim Walker
• Media & Other Investments Peter Gammell

Outlook and Subsequent Events Peter Gammell

Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

Outlook & Subsequent Events

Subsequent events

• On 25 January 2012 SGH completed the compulsory acquisition of Minority Interests in National Hire, moving to 100% ownership.
• As shown on slide 24 (Consolidated listed investment slide) and in the subsequent event note in the Appendix 4D, there has been share price recovery in SWM & CMH since period end. The Group will be positively impacted by the reversal of impairment charges at 30 June 2012 if the share prices of these investments remain at these levels.
• On 20 February 2012, SGH announced the sale of vividwireless to Optus for a sale price of $230m. The contract remains subject to a number of material conditions including approvals by ACCC and FIRB and re-issue of the spectrum licence by ACMA.

Outlook – refer disclaimer

• WesTrac is still in negotiations with Caterpillar Inc. in relation to the acquisition of the Bucyrus distribution business. Whilst these negotiations are not yet complete and the details remain confidential it is expected that this will occur around the time of the June year-end.
• Excluding significant items and the impact of transactions, assuming current market conditions and growth continue, the company anticipates the full year Underlying Net Profit After Tax (excluding significant items) to be up 20% to 30% compared to the prior year 2011 result.

• Industrial Services Jim Walker
• Media & Other Investments Peter Gammell
• Outlook and Subsequent Events Peter Gammell
• Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison