Murray & Roberts — H1 FY2008 Earnings Presentation
46 slides from Murray & Roberts's earnings presentation, February 2008
Slide 1: Interim Report to Stakeholders for the Six Months Ended December 2007
INTERIM REPORT TO STAKEHOLDERS FOR THE SIX MONTHS ENDED DECEMBER 2007 RY N ‘i S Murray . &Roberts
Slide 2: Power Generation Program
POWER GENERATION PROGRAM Formidable Performance Platform
Slide 3: Many leaders promise. We deliver.
Many leaders promise. We deliver. His Highness Shaikh Mohammed Bin Rashid Al Maktoum Vice President & Prime Minister of the United Arab Emirates & Ruler of Dubai Formidable Performance Platform
Slide 4: Order Book
ORDER BOOK R38 billion TIME DISTRIBUTION 2010: 17% 2009: 28% — 2011 to 2015 : 30% Remainder 2008 : 25% Formidable Performance Platform
Slide 5: Order Book - Geographic Distribution
ORDER BOOK 2008 - 2010 GEOGRAPHIC DISTRIBUTION SADC: 53% Australasia : 26% ee North America : 8% Middle East : 13% Formidable Performance Platform
Slide 6: Order Book - Sector Distribution
ORDER BOOK 2008 - 2010 SECTOR DISTRIBUTION Engineering Mining Contracting 4% ‘International: 10% = Clough : 25% Mining oug ° SADC 112% Construction Construction SADC : 38% Middle East : 11% Formidable Performance Platform
Slide 7: Salient Features
SALIENT FEATURES * ORDER BOOK TOR38 billion — + REVENUES TOR12,8billion RATING PROFIT TO Ri billion + OPE Formidable Performance Platform
Slide 8: Salient Features
SALIENT FEATURES * HEADLINE EARNINGS TO 216 cents per share —— * R4A billion OPERATING CASHIN HAND «37% RETURN ON EQUITY Formidable Performance Platform
Slide 9: Value Creation
VALUE CREATION Share Murray & RobertsHoldingsLimited Volume Price 31 December 2005 to 31 December 2007 Traded 12000 9000000 ; 8000000 10000 ~ 7000000 8000 6000000 5000000 6000 - 4000000 4000 - ; 3000000 2000000 2000 - 1000000 + \ T a) 30-Dec-05 30-Apr-06 30-Aug-06 30-Dec-06 30-Apr-07 30-Aug-07 30-De
Slide 10: Empowerment Shareholding
EMPOWERMENT SHAREHOLDING > R2,2 BILLION VALUE CREATED Formidable Performance Platform
Slide 11: Stop.Think
STOP.THINK » LTIFR: 2.26 (2006 : 2.94) » FIFR : 0.06 (2006 : 0.12) » 109.6 million hours worked (2006 : 81.1 million) 6.00 7 r ; 0.40 FY 2006 FY 2007 FY 2008 0.35 0.30 0.25 0.20 0.15 - 0.10 0.05 0.00 Formidable Performance Platform
Slide 12: Clough Limited
CLOUGH LIMITED (AUD millions) Dec 2007 Dec 2006 366,3 20,8 AGF Formidable Performance Platform
Slide 13: Balance Sheet
BALANCE SHEET (R millions) Dec 2007 Dec 2006 10 675 1753 8 922 10 675 3 524 1178 9973 Formidable Performance Platform
Slide 14: Income Statement
INCOME STATEMENT Revenue Operating Profit R 656m R 403m 03% Headline Earnings Formidable Performance Platform
Slide 15: Segmental Revenues
SEGMENTAL REVENUES Construction & Engineering R 9,5 billion Materials &Services R 2.5 billion Corporate & Properties R 59 million Fabrication & Manufacture R 676 million Formidable Performance Platform
Slide 16: Segmental Operating Profit
SEGMENTAL OPERATING PROFIT 7,9% MARGIN Construction & Engineering R 667 million Properties R 25 million Fabrication & Manufacture Materials & Services R 369 million R 44 million Formidable Performance Platform
Slide 17: Construction SADC
CONSTRUCTION SADC 5,8% MARGIN R 2.8bn R 2.3bn 20% R 160m 119% Revenue Operating Profit SALIENT POINTS » Order books at record highs » Outstanding performance from Concor and SADC » Construction RSA not yet at full performance Formidable Performance Platform
Slide 18: Construction Middle East
CONSTRUCTION MIDDLE EAST 6,6% MARGIN R 1,1bn R 100m Revenue - Operating Profit SALIENT POINTS » DubaiAirport Phase 1 delivered on schedule » Significant new major project opportunity » Sama Contracting team fully mobilised Formidable Performance Platform
Slide 19: Engineering Contracting
ENGINEERING CONTRACTING 5,1% MARGIN R 729m 201% 208% R 242m R 37m Revenue Operating Profit SALIENT POINTS » South Africa power program + 20 year opportunity » Outstanding performance from Wade Walker » Not yet at full performance Formidable Performance Platform
Slide 20: Mining Contracting SADC
MINING CONTRACTING SADC 5,5% MARGIN ; Operating Profit - SALIENT POINTS » Future market impacted by electricity cutbacks » Highly active unionised workforce » Company performing to expectation Formidable Performance Platform
Slide 21: Mining Contracting International
MINING CONTRACTING INTERNATIONAL 11,5% MARGIN Revenue | Operating Profit SALIENT POINTS » Resource driven up-cycle » Canada outperforming in strong market » Australia expanding into strong market Formidable Performance Platform
Slide 22: Construction Materials Steel
CONSTRUCTION MATERIALS STEEL 6,8% MARGIN Revenue “Operating Profit SALIENT POINTS » Scrap steel input costs at highest levels ever » Production impacted by electricity cutbacks » Performance volatility possible Formidable Performance Platform
Slide 23: Construction Materials Housing
CONSTRUCTION MATERIALS HOUSING 15,9% MARGIN R 434m R423m i"! f = => Revenue x Operating Profit SALIENT POINTS » Highinterest regime has dampened growth » Bricks volumes holding including new capacity » Sale of Harvey imminent Formidable Performance Platform
Slide 24: Construction Materials Infrastructure
CONSTRUCTION MATERIALS INFRASTRUCTURE 21,9% MARGIN R 644m R 540m R 141m om | R 110m 28% Revenue Operating Profit SALIENT POINTS » Infrastructure demand unabated » Concrete Products buoyant into good markets » Asphalt demand stable ahead of new road projects Formidable Performance Platform
Slide 25: Construction Services
CONSTRUCTION SERVICES 30,4% MARGIN rq R193m R78m — Revenue Zz Operating Profit SALIENT POINTS » Growing demand for craneage in Middle East » Vehicle overloading impacting toll roads » Significant operations & maintenance projects in pipeline Formidable Performance Platform
Slide 26: Fabrication & Manufacturing
FABRICATION & MANUFACTURING 6,5% MARGIN R21m R 676m a 556m 10% R44m ~ Revenue - Operating Profit : SALIENT POINTS » Structural steel upturn on back of power station program » Oil & Gas plus water transfer piping on increase » Locomotive build program on schedule Formidable Performance Platform
Slide 27: Consolidated Cash Flow
CONSOLIDATED CASH FLOW R458m (R 196m) (R 247m ) de R 1,3bn fam R3,7bn R 2.6bn Opening Operating VVorking Financing Interest, Dividends Investing Closing Cash Cash Capital Activities Tax & Forex Paid Activities Cash Formidable Performance Platform
Slide 28: Major Projects
MAJOR PROJECTS Formidable Performance Platform
Slide 29: Gautrain
GAUTRAIN Formidable Performance Platform
Slide 30: Gautrain
GAUTRAIN eer ion Marlboro Tunnel Bite Establishment Portal Marlboro Tunnel Portal ee -. 4 ; ‘ set unnel Length: 1320 metres} — ¢ Invert Slab: 166 metres ~ z Marlboro complex & depot face time challenges Formidable Performance Platform
Slide 31: Gautrain
GAUTRAIN ViewtowardsHorth 25 January 2008 Ps ee y 1 Alignment towards Park Station Formidable Performance Platform
Slide 32: Gautrain
GAUTRAIN Formidable Performance Platform
Slide 33: Major Projects
MAJOR PROJECTS Formidable Performance Platform
Slide 34: Green Point Stadium
GREEN POINT STADIUM Formidable Performance Platform
Slide 35: Major Projects
MAJOR PROJECTS Formidable Performance Platform
Slide 36: Dubai International Airport
DUBAI INTERNATIONAL AIRPORT Another World Class Performance Formidable Performance Platform
Slide 37: Factors from Our Internal Environment
FACTORS FROM OUR INTERNAL ENVIRONMENT Group Risk Framework Vv Opportunity Management System w ia Health Safety & Environment Focus v Systems & Connectivity Framework y Leadership Pipeline & Development Vv Skills Procurement & Development Formidable Performance Platform
Slide 38: Factors from Our External Environment
FACTORS FROM OUR EXTERNAL ENVIRONMENT The South African Power Situation v Industry Competition & Competitiveness w Leadership & Skills Demand a Rising Cost of Energy Vv Steel Price Volatility y v Project Securitisation & Financing Formidable Performance Platform
Slide 39: Energy Is a Driver of Opportunity
ENERGY IS A DRIVER OF OPPORTUNITY Middle East Investment driven by free cash flow from oil & gas revenues Probably > $40 / barrel Trump Tower is new Iconic Building for Dubai Emirates Airlines enables Dubai Business Model Airports in Dubai V&A Waterfront in RSA Formidable Performance Platform
Slide 40: Energy Is a Driver of Opportunity
ENERGY IS A DRIVER OF OPPORTUNITY Clough is focused on Offshore & Coastal Upstream Oil & Gas Infrastructure EPC & Manufacture Engineering & Services Australasia & Asia Pacific Middle East Africa West Coast Gulf of Mexico Murray & Roberts > 60% Formidable Performance Platform
Slide 41: Energy Is a Driver of Opportunity
ENERGY IS A DRIVER OF OPPORTUNITY Cost of Power in South Africa will still be most competitive following this investment Attractive destination for energy intensive assets Aluminium smelting Deep level mining & minerals processing Heavy Industry BHP Billiton Hillside and Mozal to Alcan Coega Formida
Slide 42: Thermal Energy Is the Backbone of South Africa Power Generation
Thermal Energy is the backbone of South Africa power generation Hydro Energy is a small peak load choice Gas Energy is the new peak load option Co-generation is the private sector input 35000 MW installed 40000 MW additional over 25 years Formidable Performance Platform
Slide 43: Energy Is a Driver of Opportunity
ENERGY IS A DRIVER OF OPPORTUNITY Nuclear Energy is a primary future source of power Globally & in South Africa 20000 MW over 20 years PBMR@ 165 MW Units PWR @ 1150 MW Units Requires totally different engineering construction culture & discipline Safety & Quality priority Formidable Performance Plat
Slide 44: Energy Is a Driver of Opportunity
ENERGY IS A DRIVER OF OPPORTUNITY The SA Power Initiative & the Competitive Supplier Development Program (CSDP) seek to indigenise the fabrication & manufacture of key systems & components Better than World Class Private Public Partnership Murray & Roberts positioned for key role Enhanced fuel suppl
Slide 45: Prospects Statement
PROSPECTS STATEMENT “ Despite the threat of recession in the United States and electricity supply challenges in South Africa, the directors are of the considered view that fixed capital formation will continue to develop in all the Group’s markets over the foreseeable future. The directors expect fu
Slide 46: Thank You
THANK YOU This presentation Is available on http:/Avww.murrob.com
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