Murray & Roberts — FY2011 Earnings Presentation
42 slides from Murray & Roberts's earnings presentation, 2011
Slide 1: Report to Stakeholders for the year ended 30 June 2011
REPORT TO STAKEHOLDERS FOR THE YEAR ENDED 30 JUNE 2011 RECOVERY & GROWTH
Slide 2: Medupi Power Station
MEDUPI POWER STATION 7 NSPS, a | int r= ae , i
Slide 3: Recovery & Growth
Salient points Summarised Hot Group FY2011 financial results topics financials Purpose, values Outlook Priorities and vision RECOVERY & GROWTH 3
Slide 4: Salient points
Salient Salient points points Summarised Hot Group FY2011 financial results topics financials Purpose, values Outlook Priorities and vision RECOVERY & GROWTH 4
Slide 5: Salient points
Effective and smooth leadership transition Material loss reported Improvement in liquidity Progress on resolution of major claims Strong order book Safety No dividend 5
Slide 6: Summarised FY2011 financial results
Salient points Summarised Summarised Hot Group FY2011 financial financial results results topics financials Purpose, values Outlook Priorities and vision RECOVERY & GROWTH 6
Slide 7: Earnings and cash position
FY2011 FY2010 Earnings (Rm) Rm EPS Rm EPS Comment Attributable earnings (1 735) (585) 1 098 371 excl. Steel, Clough Marine EBIT from continuing (678) - 1 535 - Construction & Properties, Johnson operations Arabia,, BRC Arabia and SA Properties p EBIT from continuing excl. Gautrain, GPMOF, Legacy ope
Slide 8: Hot topics
Salient points Summarised Hot Group FY2011 financial results topics topics financials Purpose, values Outlook Priorities and vision RECOVERY & GROWTH 8
Slide 9: Safety
Major Uncertified Competition Safety Liquidity projects revenues Commission Together Towards Zero Harm 12 fatalities (2010: 9) LTIFR 1.6 (2010: 2.2) DuPont intervention Outstanding safety performances: • 10m LTI free man hours – Zayed University • 6m LTI free man hours – ABSA Towers • 4m L
Slide 10: Liquidity timeframe
Major Uncertified Competition Safety Liquidity projects revenues Commission Impact on Timeframe Claims Disposals earnings Mechanicals Power Programme Apr 2011- Medupi Civils advance payment N3 Toll Concession Jun 2011 PRASA Houghton Johnson Arabia Jul 2011 - BRC Arabia Medupi Civils acceleration cla
Slide 11: Major projects: Gautrain
Major Uncertified Competition Safety Liquidity projects revenues Commission MedupiMedupi / Kusile/ Kusile Medupi Dubai Gautrain Gautrain Medupi Civils GPMOF Barrow Island International Mechanicals mechanicals Civils Airport Opened Hatfield to Rosebank Stations (2 Aug 2011) Estimated completion J
Slide 12: Major projects: Medupi / Kusile mechanicals
Major Uncertified Competition Safety Liquidity projects revenues Commission MedupiMedupi / Kusile/ Kusile Medupi Dubai Gautrain Gautrain Medupi Civils GPMOF Barrow Island International Mechanicals mechanicals Civils Airport Amicable resolution of claim New N commercial i l arrangementt Profit
Slide 13: Major projects: Medupi Civils
Major Uncertified Competition Safety Liquidity projects revenues Commission MedupiMedupi / Kusile/ Kusile Medupi Dubai Gautrain Gautrain Medupi Civils GPMOF Barrow Island International Mechanicals mechanicals Civils Airport Improved relationship with Eskom Advance Ad paymentt reinstated i t t d
Slide 14: Major projects: Dubai International Airport
Major Uncertified Competition Safety Liquidity projects revenues Commission MedupiMedupi / Kusile/ Kusile Medupi Dubai Gautrain Gautrain Medupi Civils GPMOF Barrow Island International Mechanicals mechanicals Civils Airport Loss making contract Estimated E ti t d completion l ti JJanuary 2012
Slide 15: Major projects: GPMOF Barrow Island
Major Uncertified Competition Safety Liquidity projects revenues Commission MedupiMedupi / Kusile/ Kusile Medupi Dubai Gautrain Gautrain Medupi Civils GPMOF Barrow Island International Mechanicals mechanicals Civils Airport Project handover October 2008 Re-measurable R bl contract t t Final ce
Slide 16: Uncertified revenues: claims
Major Uncertified Competition Safety Liquidity projects revenues Commission Claims Jun 2011 Jun 2010 Total (Rm) 1 968* 1 966 C Gautrain Medupi Civils Dubai Airport GPMOF C * Net of R334m payment on account GPMOF 16
Slide 17: Competition Commission
Major Uncertified Competition Safety Liquidity projects revenues Commission Fast track process (15 April 2011) Identified potential transgressions Possible penalty accounted for FY2011 Cooperation with Competition Commission S Statement ae e o of Business us ess Principles c p es • Consequ
Slide 18: Companies, geography, segments and value chain
Companies Geography Segments Value chain • MUR Construction • Africa • Metals & Minerals • Project Dev Dev. & Design Industrial Construction Africa • MUR Marine • Middle East • Planning and Eng. • MUR Middle East Infrastructure • Construction works and Middle East • Concessions • Building • Operatio
Slide 19: Group financials
Salient points Summarised Hot Group Group FY2011 financial results topics financials financials Purpose, values Outlook Priorities and vision RECOVERY & GROWTH 19
Slide 20: Statement of financial performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Jun 2011 Jun 2010 Revenue 30 535 27 851 EBITDA (93) 2 123 Operating (loss) / profit (EBIT) (678) 1 535 Net interest expense (194) (122) Taxation (196) (414) Income from equity accounted investments 86 15 Discontinued operations (666) 215 N Non-controlling t lli
Slide 21: Normalised EBIT
NORMALISED EBIT Rm Jun 2011 Jun 2010 EBIT from continuing operations (678) 1 535 Gautrain / Competition Commission penalties 1 150 619 Marine 582 - Middle East contract receivable impairment 164 89 Asset impairment 79 - EBIT normalised 1 297 2 243 Significant charges Jan 2011 – Jun 2011 Continuing D
Slide 22: Statement of financial position
STATEMENT OF FINANCIAL POSITION Rm Jun 2011 Jun 2010 Total assets 19 560 21 125 Cash and cash equivalents 3 101 3 811 Current 8 036 9 701 Non-current 5 563 6 165 Assets classified as held for sale 2 860 1 448 Total equity and liabilities 19 560 21 125 Shareholders’ equity 5 321 7 177 I t Interest t
Slide 23: Cash flow (Group)
CASH FLOW (GROUP) Rm 1 400 232 (597) 1 200 646 1 000 377 759 800 (274) 600 437 (62) 400 200 0 June Operating Working Interest, tax Dividends Investing Discontinued June 2010 cash flow capital and forex paid activities operations 2011 (Borrowings) 23
Slide 24: Construction Africa and Middle East
Construction Construction Construction Africa Africa Construction Global Construction Australasia Oil & Gas Engineering Africa and and Middle Middle East East Underground g Mining g Products Africa andd Mi Minerals l Construction Rm Africa¹ Marine Middle East Total 2011 2010 2011 2010 2011 2010 2011
Slide 25: Construction Global Underground Mining
Construction Construction Africa Construction Construction Global Global Construction Australasia Oil & Gas Engineering Africa and Middle East Underground Underground gg Mining Mining gg Products Africa andd Mi Minerals l Rm Africa Australasia The Americas Total 2011 2010 2011 2010 2011 2010 2011 20
Slide 26: Construction Australasia Oil & Gas and Minerals
Construction Construction Construction Africa Construction Global Construction Australasia Australasia Oil Oil &&Gas Gas Engineering Africa and Middle East Underground g Mining g Products Africa and and dd Minerals Mi Mineralsll Rm Clough Forge¹ 2011 2010 2011 2010 Revenue 5 387 3 843 2 926 1 642 Op
Slide 27: Engineering Africa
Construction Construction Africa Construction Global Construction Australasia Oil & Gas Engineering Engineering Africa Africa and Middle East Underground g Mining g Products Africa andd Mi Minerals l Rm Power Program¹ Engineering² Total 2011 2010 2011 2010 2011 2010 Revenue 3 337 1 099 757 619 4 094
Slide 28: Construction Products Africa
Construction Construction Africa Construction Global Construction Construction Australasia Oil & Gas Engineering Africa and Middle East Underground g Mining g Products Products Africa Africa andd Mi Minerals l Construction Industrial Rm products¹ products² Total 2011 2010 2011 2010 2011 2010 Revenue
Slide 29: Discontinued operations
Construction Construction Africa Construction Global Construction and Middle East Underground g Discontinued Mining g operations Australasia Oil & Gas Engineering Africa Products Africa andd Mi Minerals l Crane Hire Steel Reinforcing Clough Marine Rm Services¹ Products Services & Prop. Properties SA
Slide 30: Net operating assets by segment
Construction Construction Construction Construction Africa Africa Construction Construction Global Global Construction Construction Australasia Australasia Oil Oil &&Gas Gas Engineering Engineering Africa Africa and and Middle Middle East East Underground Underground gg Mining Mining gg Products Pro
Slide 31: Purpose, values and vision
Salient points Summarised Hot Group FY2011 financial results topics financials Purpose, Purpose, values values Outlook Priorities and and vision vision RECOVERY & GROWTH 31
Slide 32: Purpose, values and vision
Delivery of infrastructure to enable Purpose economic and social development in a sustainable way Values Integrity Care Respect Accountability Commitment By 2020 we will be the leading diversified engineering and construction group Vision • in the global underground mining market, and • selected eme
Slide 33: Outlook
Salient points Summarised Hot Group FY2011 financial results topics financials Purpose, values Outlook Outlook Priorities and vision RECOVERY & GROWTH 33
Slide 34: Projected revenue and order book
Projected revenue Order book % split Rbn SADC Int. Jun 2011 Jun 2010 Construction Africa 65 35 10.0 12.1 and Middle East Construction Global 60 40 16.7 7.0 Underground Mining Construction Australasia Oil & 0 100 11.4 6.7 Gas and Minerals Engineering 100 0 14.2 16.1 Africa Construction 100 0 3.1 2.2
Slide 35: Order book time distribution
Projected revenue Order book Order book Rbn % split Rbn Time Distribution SADC Int. Jun 2011 Jun 2010 2012 6.0 Construction Africa 65 35 10.0 12.1 2013 2.1 and Middle East >2013 19 1.9 2012 7.5 Construction Global 60 40 16.7 7.0 2013 5.4 Underground Mining >2013 38 3.8 Construction 2012 5.9 Australa
Slide 36: EBIT contribution and margin range
Projected revenue Order book Relative % Market % EBIT % split Rbn EBIT prospects margin SADC Int. Jun 2011 Jun 2010 Contribution range Construction Africa 65 35 10.0 12.1 ±20 <5.0 and Middle East Construction Global 60 40 16.7 7.0 ±35 5.0 - 7.5 Underground Mining Construction Australasia Oil & 0 100
Slide 37: Order book movement
Rbn 180 87bn (6bn) 160 (66bn) 140 120 100 (7bn) 9bn 86bn 80 68bn 60 40 20 0 Opening New Cancelled Lost / Converted Change in Closing balance prospects p p declined to scope p / forex balance 01 July 2010 order book adjustment 31 June 2011 1. Construction, Global Underground Mining, Construction Afri
Slide 38: Priorities
Salient points Summarised Hot Group FY2011 financial results topics financials Purpose, values Outlook Priorities Priorities and vision RECOVERY & GROWTH 38
Slide 39: Priorities: re-organise, re-energise, improve liquidity
Improve liquidity and Re-organise Re organise and re-energise re energise resume dividend payment Strengthen operational leadership Cash from operations and operational focus Reduce overhead costs Claims on major projects Changes g to business areas Sale of discontinued operations p Realign Murray &
Slide 40: Global office locations
London North Bay Salt Lake City Dubai Ghana Harare Gaborone Brisbane Windhoek Johannesburg Kalgoorlie Santiago Cape town Perth Corporate Office Construction Australasia Oil & Gas and Minerals Construction Global Underground Mining Engineering Africa Construction Africa and Middle East Construction P
Slide 41: Forward-looking statements
We may make statements that are not historical facts and relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable. These are forward forward-looking looking statements as defined in the U.S. Private Securities Litigation Reform Act o
Slide 42: Report to Stakeholders
REPORT TO STAKEHOLDERS FOR THE YEAR ENDED 30 JUNE 2011 This presentation is available on www.murrob.com RECOVERY & GROWTH
Murray & Roberts Holdings — FY2011 Earnings Presentation on 6ix