Murray & Roberts — H1 2013 Earnings Presentation
48 slides from Murray & Roberts's earnings presentation, 2013
Slide 1: Report to Stakeholders: Six Months to 31 December 2012
REPORT TO STAKEHOLDERS SIX MONTHS TO 31 DECEMBER 2012 POSITIONED FOR GROWTH
Slide 2: Salient Features
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 2
Slide 3: Salient Features
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 3
Slide 4: Six Months to December 2012 Highlights
SIX MONTHS TO 31 DECEMBER 2012 Cautionary Health & Safety Revenue Announcement Returned to LTIFR – 0.85 R16.3bn Profitability (Dec 2011: 1.04) Disposal of non- Fatalities – 0 core assets R15.0bn (Dec 2011: 3) commenced Attributable HEPS Order Book Net cash earnings Profit R262m Profit 69 cents R1.
Slide 5: Attributable earnings and diluted EPS
SIX MONTHS TO 31 DECEMBER 2012 Rm Cents 1 500 400 340 Recovery Growth 272 300 1 000 175 160 200 500 64 100 902 1 116 576 522 262 0 0 (636) (1 099) (528) (208) (53) (100) -500 (200) (161) -1 000 (194) (300) (334) -1 500 (400) H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 Att
Slide 6: Safety
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 6
Slide 7: Fatalities and LTIFR
SIX MONTHS TO 31 DECEMBER 2012 18 4.65 5.00 16 4.50 14 4.00 3.05 3.50 12 2.86 3.00 10 2.44 2.50 8 2.07 2.00 6 1.28 1.50 1.14 4 0.85 1.00 2 0.50 10 11 16 9 9 12 4 0 0 0.00 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 2013 H1 Fatalities L.T.I.F.R. (per 1 million man hours) Target L.T.I.F.R. RECOVE
Slide 8: Stop.Think.Act.24/7
STOP.THINK.ACT.24/7 Outstanding safety performance • LTIFR – 0.85 (Dec 2011: 1.04) • Fatalities – 0 (Dec 2011: 3) Stop.Think.Act.24/7 launch • ‘Act’ and ‘24/7’ dimensions Zero Harm Through Effective Leadership • Consistency in leadership interactions • Increase leadership visibility • Build a
Slide 9: Competition Commission
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 9
Slide 10: Competition Commission fast-track process
To our knowledge, Murray & Roberts first to report collusive conduct to Competition authority Collusive conduct rooted out in Group Zero tolerance for any anti-competitive or corrupt behaviour Compliance declarations Competition Commission Fast-track process nearing completion Provision
Slide 11: Major Claims
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 11
Slide 12: GPMOF, Gautrain and Dubai Airport claims
GPMOF Gautrain Rapid Rail Link Dubai International Airport Project demobilised Favourable arbitration ruling on the principle of design change claim Interim arbitration award ruled quantum should include all related costs Client appealed interim award – delay in resolution Commercial closu
Slide 13: GPMOF and Gautrain arbitration
GPMOF Gautrain Gautrain Rapid Rail Rail Link Link Dubai International Airport Water ingress arbitration resumes March 2013 • Ruling expected by June 2013 Favourable arbitration ruling on principle of Sandton Cavern claim. Quantum arbitration to commence May 2013 Delay & Disruption arbitration
Slide 14: Dubai International Airport arbitration
GPMOF Gautrain Rapid Rail Link Dubai DubaiInternational International Airport Airport According to legal advice, the UAE Supreme Court ruled: • Dubai Government is the respondent to the claim; and • arbitration panel has jurisdiction to decide all matters referred to it for adjudication Arbitrat
Slide 15: Group Financials
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 15
Slide 16: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 (1) Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations (2) 93 72 21
Slide 17: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations 93 72 21 Non-con
Slide 18: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations 93 72 21 Non-con
Slide 19: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations 93 72 21 Non-con
Slide 20: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations 93 72 21 Non-con
Slide 21: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations 93 72 21 Non-con
Slide 22: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations 93 72 21 Non-con
Slide 23: Statement of Financial Performance
STATEMENT OF FINANCIAL PERFORMANCE Rm Dec 2012 Dec 2011 Variance Revenue 16 344 15 015 1 329 EBITDA 764 (33) 797 Operating Profit/(loss) 400 (328) 728 Net interest expense (76) (90) 14 Taxation (109) (198) 89 Income from equity accounted investments 112 63 49 Discontinued operations 93 72 21 Non-con
Slide 24: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION Rm Dec 2012 Dec 2011 Variance Total assets 22 701 20 624 2 077 Property, plant and equipment 2 980 3 511 (531) Other non current assets 5 092 2 453 2 639 Current assets 8 383 9 876 (1 493) Cash and cash equivalents 4 039 3 642 397 Assets classified as held-for-sale 2
Slide 25: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION Rm Dec 2012 Dec 2011 Variance Total assets 22 701 20 624 2 077 Property, plant and equipment 2 980 3 511 (531) Other non current assets 5 092 2 453 2 639 Current assets 8 383 9 876 (1 493) Cash and cash equivalents 4 039 3 642 397 Assets classified as held-for-sale 2
Slide 26: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION Rm Dec 2012 Dec 2011 Variance Total assets 22 701 20 624 2 077 Property, plant and equipment 2 980 3 511 (531) Other non current assets 5 092 2 453 2 639 Current assets 8 383 9 876 (1 493) Cash and cash equivalents 4 039 3 642 397 Assets classified as held-for-sale 2
Slide 27: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION Rm Dec 2012 Dec 2011 Variance Total assets 22 701 20 624 2 077 Property, plant and equipment 2 980 3 511 (531) Other non current assets 5 092 2 453 2 639 Current assets 8 383 9 876 (1 493) Cash and cash equivalents 4 039 3 642 397 Assets classified as held-for-sale 2
Slide 28: Net Cash Reconciliation
NET CASH RECONCILIATION Rm 2500 80 (93) 864 72 (315) 2000 (121) (554) 1500 1 202 1 135 1000 500 0 June EBITDA Disposal of Disposal of Other Working Interest, tax, Capex Dec 2012 Cash items properties business investing capital dividends 2012 activities and forex RECOVERY & GROWTH 28
Slide 29: Net Cash Reconciliation
NET CASH RECONCILIATION Rm 2500 80 (93) 864 72 (315) 2000 (121) (554) 1500 1 202 1 135 1000 500 0 June EBITDA Disposal of Disposal of Other Working Interest, tax, Capex Dec 2012 Cash items properties business investing capital dividends 2012 activities and forex Working capital outflow is attributab
Slide 30: Net Cash Reconciliation
NET CASH RECONCILIATION Rm 2500 80 (93) 864 72 (315) 2000 (121) (554) 1500 1 202 1 135 1000 500 0 June EBITDA Disposal of Disposal of Other Working Interest, tax, Capex Dec 2012 Cash items properties business investing capital dividends 2012 activities and forex Capex spend relates primarily to: Und
Slide 31: Revenue by platform
SIX MONTHS TO 31 DECEMBER 2012 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 M
Slide 32: Construction Africa and Middle East results
SIX MONTHS TO 31 DECEMBER 2012 Construction Construction Africa Africa Construction Global Construction Australasia Engineering Africa and and Middle Middle East East Underground Mining Oil & Gas and Minerals Construction Rm Africa (1) Marine Middle East Total 2012 2011 2012 2011 2012 2011 2012 2011
Slide 33: Global Underground Mining results
SIX MONTHS TO 31 DECEMBER 2012 Construction Africa Construction Construction Global Global Construction Australasia Engineering Africa and Middle East Underground Underground Mining Mining Oil & Gas and Minerals Rm Africa Australasia The Americas Total 2012 2011 2012 2011 2012 2011 2012 2011 Revenue
Slide 34: Construction Australasia Oil & Gas and Minerals results
SIX MONTHS TO 31 DECEMBER 2012 Construction Africa Construction Global Construction Construction Australasia Australasia Engineering Africa and Middle East Underground Mining Oil Oil & & Gas Gas and and Minerals Minerals Commissioning Fabrication, and Overheads Rm Engineering Projects Asset Support
Slide 35: Engineering Africa results
SIX MONTHS TO 31 DECEMBER 2012 Construction Africa Construction Global Construction Australasia Engineering Engineering Africa Africa and Middle East Underground Mining Oil & Gas and Minerals Power Rm Programme (1) Engineering (2) Total 2012 2011 2012 2011 2012 2011 Revenue 2 010 1 876 538 446 2 548
Slide 36: Discontinued operations
SIX MONTHS TO 31 DECEMBER 2012 Construction Africa Construction Global Construction Australasia and Middle East Discontinued Underground Mining operations Oil & Gas and Minerals Engineering Africa Clough Construction Johnson Steel Marine Serv. Properties Products Rm Arabia Business & Prop. SA Africa
Slide 37: Order Book
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 37
Slide 38: Order book by platform
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 Mining Mining Products Products
Slide 39: Commodity Breakdown %
COMMODITY BREAKDOWN % Total Platform Total Platform The Americas Australasia Africa June 2012 December 2012 11% 13% 15% 28% 19% 36% 31% 28% 22% Copper Gold 7% 5% 76% 13% Copper-Gold 16% 13% 7% Diamonds Silver 17% 22% 8% 19% Platinum 11% Coal 9% 7% 8% 13% Nickel 4% 3% 4% 8% 1% 3% Potash 4% 2% 8% 5% 4
Slide 40: Group Positioned for Growth
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Order Book Outlook Financials Growth RECOVERY & GROWTH 40
Slide 41: Order book split SADC and international
Order book % split Order book Rbn SADC Int. Dec 2012 Jun 2012 Construction Africa 80 20 8.6 9.0 and Middle East Construction Global 50 50 9.1 8.8 Underground Mining Construction Australasia Oil & 0 100 22.0 19.4 Gas and Minerals Engineering 100 0 7.7 6.8 Africa Construction 100 0 0.9 1.3 Products Af
Slide 42: Order book time distribution
Order book % split Order book Order book Rbn Rbn FY Time Distribution SADC Int. Dec 2012 Jun 2012 2013 3.2 Construction Africa 80 20 8.6 9.0 2014 4.6 and Middle East >2014 0.8 2013 2.9 Construction Global 50 50 9.1 8.8 2014 3.4 Underground Mining >2014 2.8 Construction 2013 6.1 Australasia Oil & 0 1
Slide 43: Order book, EBIT contribution and margin targets
Order book % split Order book Relative % Market % EBIT Rbn EBIT Target prospects margin SADC Int. Dec 2012 Jun 2012 Contribution range Construction Africa 80 20 8.6 9.0 ±10 3.0 - 5.0 and Middle East Construction Global 50 50 9.1 8.8 ±30 5.0 - 7.0 Underground Mining Construction Australasia Oil & 0 1
Slide 44: Outlook
Safety Competition Major Claims Salient Features Performance Commission Processes Group Positioned for Outlook Order Book Financials Growth RECOVERY & GROWTH 44
Slide 45: Outlook and strategic priorities
Increase profitability and further strengthening of balance sheet • Operational efficiency • Risk management • Project management systems • Pursuit of major project claims Align Group’s operating platforms with identified growth opportunities • Engineering and Construction • Opportunities - Sele
Slide 46: Global office locations
North Bay Salt Lake City Dubai Ghana 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 Products Africa
Slide 47: Forward-looking statements
This presentation includes certain various “forward-looking statements” within the meaning of Section 27A of the US Securities Act 10 1933 and Section 21 E of the Securities Exchange Act of 1934 that reflect the current views or expectations of the Board with respect to future events and financial a
Slide 48: Report to Stakeholders: Positioned for Growth
REPORT TO STAKEHOLDERS SIX MONTHS TO 31 DECEMBER 2012 POSITIONED FOR GROWTH
Murray & Roberts Holdings — H1 2013 Earnings Presentation on 6ix