Murray & Roberts — Investor Presentation (April 2014)
24 slides from Murray & Roberts's investor presentation, Apr 23, 2014
Slide 1: Construction Africa and Middle East Platform
MURRAY & ROBERTS Construction Africa and Middle East Platform 23 April 2014 Jerome Govender Engineered Excellence
Slide 2: Our Intent
OUR INTENT “The platform is emerging from a protracted period of operational, market and leadership instability. It has adopted a simple three phase strategy. Phase one entailed returning the platform to operational and leadership stability. Phase two will focus on a return to profitability through
Slide 3: Key Platform Issues
KEY PLATFORM ISSUES Achievements • Simplified operating structure and bedded down leadership team • Returned to profitability in the first half of the financial year • Full year performance on track to be in line with our expectations • Successfully resolved various commercial issues • New Award in
Slide 4: Who We Were
WHO WE WERE Construction Africa and Middle East Platform Platform Jerome Govender & Wayne van Houten Businesses Shared Shared Shared Civils Civils Civils Buildings Buildings Buildings Middle East MiddleEast Middle East Marine Marine Marine Plant Plant Plant Services Services Services Civils Civils G
Slide 5: Who We Are Now
WHO WE ARE NOW Platform Construction Africa and Middle East Platform Opencast Middle Shared Infrastructure Buildings Division Roads, Civils, Earthworks Mining East Services Gauteng & RSA Western Cape Namibia Botswana Engineered Excellence
Slide 6: What We Do: Bryanston Office Park
WHAT WE DO Bryanston Office Park Engineered Excellence
Slide 7: What We Do: Jefferies Bay Wind Farm
WHAT WE DO Jefferies Bay Wind Farm Engineered Excellence
Slide 8: What We Do: Dainfern Square Shopping Centre
WHAT WE DO Dainfern Square Shopping Centre Engineered Excellence
Slide 9: What We Do: The Grove - Namibia
WHAT WE DO The Grove - Namibia Engineered Excellence
Slide 10: What We Do: City Deep Container Terminal
WHAT WE DO City Deep Container Terminal Engineered Excellence
Slide 11: What We Do: Portside – Cape Town
WHAT WE DO Portside – Cape Town Engineered Excellence
Slide 12: What We Do: Lanseria Reservoir
WHAT WE DO Lanseria Reservoir Engineered Excellence
Slide 13: What We Do: Matlosana Mall - Klerksdorp
WHAT WE DO Matlosana Mall - Klerksdorp Engineered Excellence
Slide 14: What We Do: Al Raha – Abu Dhabi
WHAT WE DO Al Raha – Abu Dhabi Engineered Excellence
Slide 15: What We Do: Mafraq Hospital – Abu Dhabi
WHAT WE DO Mafraq Hospital – Abu Dhabi Engineered Excellence
Slide 16: Current Market Environment
CURRENT MARKET ENVIRONMENT Engineered Excellence
Slide 17: Typical Client Base
TYPICAL CLIENT BASE Buildings Infrastructure Opencast Mining Middle East Engineered Excellence
Slide 18: Contractor Risk
CURRENT RISK PROFILE CONTRACTING ARRANGEMENTS CONTRACTOR RISK CLIENT RISK Cost Plus % Cost Reimbursable + Target Cost Re-measurable Lump Sum Fee Rates CONTRACT TYPE OCM Middle East Buildings Infrastructure Engineered Excellence 11
Slide 19: Current Market Conditions
CURRENT MARKET CONDITIONS • Limited real increase in government spend • Limited private investment • Construction industry overcapacity in most geographies • Africa is no panacea – but pockets of opportunity exist • Margins will continue to be under pressure • Labour unrest impact a constant concern
Slide 20: Our Current Focus
OUR CURRENT FOCUS • Entrench and sustain our focus on Operational Excellence • Pursue additional commercial resolutions • Continue to build relationships with our clients based on: • Murray & Roberts Construction has experienced and proven management and delivery teams • Murray & Roberts Constructio
Slide 21: Future Potential (Post FY2015)
FUTURE POTENTIAL (POST FY2015) Engineered Excellence
Slide 22: Long term upward trend
Long term upward trend Civil Tender Index1 1999-2013 300 280 260 240 220 200 180 160 140 120 100 Notes: (1) Monthly Average Total indexed to 100 in March 1999 Source: Industry Insight Project Database, FTC Analysis Engineered Excellence
Slide 23: Current Market Position & Potential Options Post 2015
CURRENT MARKET POSITION & POTENTIAL OPTIONS POST 2015 Maintain Asset Develop Contract Finance Design Operate Asset Concept Own M&R Construction Current 25% Current Position 10-20% 15% Gross Margin 10% 6-8% 3-5% 2-3% Roles Developers Build, Own, Engineering Civils Buildings Specialty O&M Owners Trans
Slide 24: Thank You
THANK YOU Engineered Excellence
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