Murray & Roberts — FY2007 Earnings Presentation
45 slides from Murray & Roberts's earnings presentation, Jun 30, 2007
Slide 1: Report to Stakeholders
REPORT TO STAKEHOLDERS FINANCIAL YEAR TO 30 JUNE 2007
Slide 2: Stop.Think
Stop.Think LTIFR vs Hours worked “We have built a formidable Committed to Zeroperformance Disabling platform Incidentto engage the future potential of all our markets”
Slide 3: Performance Headlines
Performance Headlines “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 4: Performance Headlines
Performance Headlines “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 5: Clough Headlines
Clough Headlines AUD 131 million Provision ¾ Legacy contracts provided ¾ New Management and Board ¾ Murray & Roberts Control ¾ Recapitalisation “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 6: Growth
Growth Market Capitalisation R million R million 60% 7-Yr CAGR 215% 2-Yr CAGR Rebuilding Murray & Roberts “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 7: Growth
Growth Continuing Revenues R million 15% 7-Yr CAGR 33% 2-Yr CAGR Rebuilding g Murray y & Roberts “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 8: Growth
Growth Operating Margin R million 35% 7-Yr CAGR 25% 2-Yr CAGR “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 9: Growth
Growth Order Book R million 30% 7-Yr CAGR 67% 2-Yr CAGR Including Clough R5bn “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 10: Empowerment
Empowerment Wealth Created > R 1,7 billion “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 11: “We have built a formidable performance platform to engage the future potential of all
“We have built a formidable performance platform to engage the future potential of all our markets”
Slide 12: Balance Sheet Strength
Balance Sheet Strength “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 13: Income Statement Growth
Income Statement Growth “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 14: Segmental Revenues
Segmental Revenues R 1,4bn R 17,9bn R 4,7bn R 11,8bn R4,9bn R1,5bn R0,4bn R6,8bn “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 15: Segmental Operating Profit
Segmental Operating Profit R 82m (R 164m) R 763m R 1,44bn R 756m R432m R283m R20m R17m R718m “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 16: Consolidated Cash Flow
Consolidated Cash Flow R 1,54bn (R 851m) R 181m R 2,63bn R 675m (R 280m) (R 278m) R 1,64bn Opening Operating Investing Dividends Interest, Tax Working Financing Closing Cash Cash Activities Paid & Forex Capital Activities Cash “We have built a formidable performance platform to engage the future pot
Slide 17: Construction SADC
Construction SADC Margin 5,3% Order O d Book B k R 5,0bn R 8,5 billion R 264,3m R 2,2bn R 2,1bn R 87 87,1m 1m (R 71,1m) Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 18: Construction Middle East
Construction Middle East Margin 5,1% Order O d Book B k R 2,3 billion R 2,4bn R 1,6bn R 123.3m R 852m R 76,7m , (R 38,7m) 2005 2006 2007 Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 19: Engineering Contracting
Engineering Contracting Margin 5,8% Order O d Book B k R 794m R 1,6 billion R 603m R 611m R 48m R 46m R 26m Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 20: Mining Contracting SADC
Mining Contracting SADC Margin 5,0% Order O d Book B k R 3,3 billion R2,3bn R1 1.8bn 8bn R1 1,8bn 8b R 115m R 92m R 100m Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 21: Mining Contracting International
Mining Contracting International Margin 9,1% Order O d Book B k R 1,6 billion R 1,3bn R 118m R 804m R 662m R 64m R 37m Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 22: Construction Materials - Steel
Construction Materials - Steel Margin 7,6% New C N Capacity it Investments R 2,2bn R1 1,7bn 7bn R 1,46bn R 168m R 127m R 86m Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 23: Construction Materials - Infrastructure
Construction Materials - Infrastructure Margin 24,4% New C N Capacity it Investments R 1,24bn R 979m R 302m R 743m R 217m R 130m Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 24: Construction Materials - Housing
Construction Materials - Housing Margin 18,8% Technicrete T h i t Acquisition R 856m R 161m R 325m R 63m R 174m R 11m Revenue Operating Profit “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 25: Construction Services
Construction Services Margin 32,6% Middle East Middl E t Capacity R 411m R 367 367m R 134m R 235m* R 71 71m R 53m Revenue Operating Profit * Criterion discontinued “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 26: Fabrication & Manufacture
Fabrication & Manufacture Margin 6,2% * UCW UCW, G Genrec Hall Longmore R 1,324bn R 927m R 82m R 620m R 61m R 62m Revenue Operating Profit * Foundries Group discontinued “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 27: “We have built a formidable performance platform to engage the future potential of all
“We have built a formidable performance platform to engage the future potential of all our markets”
Slide 28: Order Book - Geographic
Order Book - Geographic SADC 58% Australasia 24% (2006:71%) (2006:1%) Middle East 13% North America 5% (2006: 23%) (2006: 5%) “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 29: Order Book - Operations
Order Book - Operations Engineering Mining SADC 15% Contracting 7% Mining (2006: 26%) (2006: 7%) International 8% (2006: 6%) Construction C t ti Clough 22% SADC 38% (2006: 0%) (2006: 38%) Construction Middle East 10% (2006: 23%) “We have built a formidable performance platform to engage the future p
Slide 30: Major Projects
Major Projects “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 31: 2010 Major Projects
2010 Major Projects “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 32: 2010 Major Projects
2010 Major Projects Sean Flanagan ¾ Gautrain Rapid Rail Link R 24 billion ¾ Fully Mobilised by January 2008 ¾ Green Point Stadium R 3 billion ¾ Every Dimension of Complexity ¾ Coega Aluminium Smelter R 20 billion ¾ First Metal May 2010 “We have built a formidable performance platform to engage the f
Slide 33: Global Major Programs
Global Major Programs “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 34: Global Major Programs
Global Major Programs ¾ Dubai International Airports ± R 25 billion ¾ Concourse 2 on Schedule & Concourse 3 in Discussion ¾ Power Generation - 60 GW ± R 200 billion ¾ Medupi, Bravo, Mmamabule, Ingula, PBMR + PWR Nuclear ¾ Natural Resources ± R 100 billion ¾ Underground Platinum, Gold, Nickel and Off
Slide 35: Segmental Structure
Segmental Structure Revenue / Profit * 70% / 60% * Incl Clough 20% / 30% 10% / 10% “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 36: Leadership Structure
Leadership Structure Murray & Roberts Holdings ¾ Independent Board ¾ Independent Directors 9 no ¾ Executive Directors 4 no ¾ World Class and South African ¾ Committee Structure ¾ Appropriately Empowered ¾ Representative of Market Sector ¾ Representative of Skills Diversity ¾ International Advisors “
Slide 37: Leadership Structure
Leadership Structure Murray & Roberts Limited ¾ South African and Rest of Africa ¾ Lead Enterprise Brian Bruce, Roger Rees ¾ Manage Cluster Sean Flanagan, Keith Smith Malose Chaba, Edwin Hewitt, Andrew Langham ¾ Manage Business Cobus Bester, Henry Laas, Rob Noonan, Gordon Taylor ¾ Enterprise Functio
Slide 38: Leadership Structure
Leadership Structure Murray & Roberts International Limited ¾ Australasia, Canada and Middle East ¾ Lead Enterprise Brian Bruce, Roger Rees ¾ Manage Cluster Peter Adams, John Cooper ¾ Manage Business Nigel Harvey, Henry Laas ¾ Enterprise Function Terry Rensen, Rensen ¾ Financial /Secretarial Richard
Slide 39: Segmental Breakdown
Segmental Breakdown SADC vs International SADC International Construction Construction & Engineering E i Engineering i Mining Steel Construction Infrastructure Material & Services Housing Services F b i ti Fabrication Fabrication TOTAL % “We have built a formidable performance platform to engage the
Slide 40: The Big Issues
The Big Issues Performance ¾ Clough Performance ¾ Deliver to Murray & Roberts Investment over 3 years to 2010 ¾ 2010 Project Delivery ¾ Deadline May 2010 ¾ Power Generation Opportunity ¾ Secure Key Implementation Role “We have built a formidable performance platform to engage the future potential of
Slide 41: The Big Issues
The Big Issues Risk Management ¾ Health Safety & Environment ¾ Zero Disabling Incident ¾ Systems & Connectivity ¾ Enable Growth and Measure Performance ¾ People & Community ¾ Mutual Development in Integrated Society “We have built a formidable performance platform to engage the future potential of a
Slide 42: The Big Issues
The Big Issues Strategy ¾ Revenue Growth ¾ Market CAGR @ 15% to 25% per annum + Acquisition ¾ Organisational Capacity ¾ Balance Sheet, Leadership, Systems of Control, Business Partnerships and Skills ¾ Embedded Value ¾ Margin Focus, Commercial Terms, Project Selection, Critical Mass “We have built a
Slide 43: Future Growth
Future Growth Revenues Average R 32 billion A billi R million 2008 to 2010 17% 10-Yr CAGR 40% 4-Yr CAGR “We have built a formidable performance platform to engage the future potential of all our markets”
Slide 44: 2008 Prospects
2008 Prospects ¾ Market M k t growth th expected t d in i range 15% tot 25% nominal i l ¾ Consolidation of Clough adds R 5,0 billion revenues ¾ Margins ahead of guidance range 5,0% to 7,5% ¾ Fully diluted headline earnings per share up 30% to 40% This Trading Statement has not been audited or review
Slide 45: Presentation available at murrob.com
This presentation is available on http://www murrob com http://www.murrob.com
Murray & Roberts Holdings — FY2007 Earnings Presentation on 6ix