Murray & Roberts — FY2005 Earnings Presentation
39 slides from Murray & Roberts's earnings presentation, Jun 30, 2005
Slide 1: Report to Stakeholders, Year Ended 30 June 2005
REPORT TO STAKEHOLDERS YEAR ENDED 30 JUNE 2005 Globalising Globalising Murray Murray & Roberts & Roberts
Slide 2: Murray & Roberts Rebuilt: The Global Construction Economy
MURRAY & ROBERTS REBUILT THE GLOBAL CONSTRUCTION ECONOMY Five years of Rebuilding Murray & Roberts has seen a fundamental reshaping of our Group Globalising Globalising Murray Murray & Roberts & Roberts
Slide 3: Directorate & Management
MURRAY & ROBERTS REBUILT DIRECTORATE & MANAGEMENT We start our new journey Globalising Murray & Roberts with a board and executive leadership where 75% of the members are new to Murray & Roberts and 75% of whom bring new and different experience to the construction and engineering industry Globalisi
Slide 4: Our Global Business Model, Year 2000
MURRAY & ROBERTS REBUILT OUR GLOBAL BUSINESS MODEL YEAR 2000 Globalising Globalising Murray Murray & Roberts & Roberts
Slide 5: Our Global Business Model, Year 2005
MURRAY & ROBERTS REBUILT OUR GLOBAL BUSINESS MODEL International Board International Advisory Board Mining & Minerals Holdings Board Oil & Gas YEAR 2005 Globalising Globalising Murray Murray & Roberts & Roberts
Slide 6: The Salient Points – 2000 vs 2005
MURRAY & ROBERTS REBUILT THE SALIENT POINTS – 2000 vs 2005 R1.74bn R8.5bn R10.7bn R8.7bn 326% 143% 23% R3.5bn R408m 2000 2005 2000 2005 2000 2005 Net Cash Order Book Revenues R150m R453m R543m 497% 285% 260% R39m R126m R91m 2000 2005 2000 2005 2000 2005 Operating Profit Taxation Headline Earnings Gl
Slide 7: The Share Price – 2000 vs 2005
MURRAY & ROBERTS REBUILT THE SHARE PRICE – 2000 vs 2005 1995 - 2000 2000 - 2005 2000 - 2005 The share is up 500% on the 300cps of 2000 and Sh Shareholder h ld Value V l has h improved i d by b R4.0 R4 0 billion billi Globalising Globalising Murray Murray & Roberts & Roberts
Slide 8: Areas of Concern
YEAR ENDED 30 JUNE 2005 AREAS OF CONCERN z A loss of R40 million (12 cps) on tthee KHALIFA SSPORTS O S HALL project in Qatar will require significant corporate resolve and may take more than the current reporting ti period i d to t achieve hi finality. z The liquidation of Consani Engineering in Jan
Slide 9: Areas of Concern: Fatalities
YEAR ENDED 30 JUNE 2005 AREAS OF CONCERN z A total of 12 fatalities were recorded in the year on work sites under our control. The Group has committed the necessary resources to ensure that operations will be safe and that all people entering and working in our many operations are appropriately prep
Slide 10: Project Order Book
AT 30 JUNE 2005 PROJECT ORDER BOOK The Project Order Book stood at R8,5 billion at 30 June 2005 Middle East 39% South Africa 48% Canada SADC 9% 4% Globalising Globalising Murray Murray & Roberts & Roberts
Slide 11: Growth in the Order Book
AT 30 JUNE 2005 PROJECT ORDER BOOK 70% Growth in the Order Book to 30 June 2005 Construction 53% Mining 40% Steel 2% Engineering 5% Globalising Globalising Murray Murray & Roberts & Roberts
Slide 12: South African Construction Economy
THE MARKET SOUTH AFRICAN CONSTRUCTION ECONOMY SOUTH AFRICA GFCF as a % of GDP 30.0% 28.0% GFCF % GDP 26.0% 24 0% 24.0% 22.0% 20.0% 18.0% 16 0% 16.0% 14.0% 12.0% 10.0% 1965 5 1968 8 1971 4 1974 1977 7 1980 0 1983 3 1986 6 1989 9 1992 2 1995 5 1998 8 1962 2 2001 1947 7 1950 0 1953 3 1956 6 1959 9 2004
Slide 13: Post 30 June 2005 Project Order Book
POST 30 JUNE 2005 PROJECT ORDER BOOK Preferred Bidder Status Gautrain Rapid Rail Link DFBOT 40% PBMR Nuclear Program EPCM 50% Globalising Globalising Murray Murray & Roberts & Roberts
Slide 14: Financials
YEAR ENDED 30 JUNE 2005 FINANCIALS (cents per share) 2005 2004 DIVIDEND 45 45 HEADLINE EARNINGS 140 155 ( (percentage) t ) OPERATING MARGIN % 5,1 5,0 RETURN ON SHAREHOLDER FUNDS % 16,1 19,0 (R millions) ATTRIBUTABLE EARNINGS 448 477 Globalising Globalising Murray Murray & Roberts & Roberts
Slide 15: Balance Sheet Up 19%
YEAR END 30 JUNE 2005 BALANCE SHEET UP 19% (R millions) 2005 2004 TOTAL ASSETS 7 200 6 132 Cash 1 933 1 104 Fixed & Current 5 267 5 028 TOTAL EQUITY & LIABILITIES 7 200 6 132 Permanent capital 3 059 2 657 Non-current liabilities 820 632 Current liabilities 3 321 2 843 A Strong Balance Sheet Globalis
Slide 16: Revenue Up 27%
YEAR ENDED 30 JUNE 2005 REVENUE UP 27% Change in revenue R870m R205m R10,7bn R3,4bn -R416m +R107m R6,2bn +R495m +R2bn +R2,2bn Construction & Materials & Fabrication & Discontinued Revenue Engineering Services Manufacture Operations Globalising Globalising Murray Murray & Roberts & Roberts
Slide 17: Operating Profit Up 29%
YEAR ENDED 30 JUNE 2005 OPERATING PROFIT UP 29% Change in Operating R98m -R115m o t Profit R337m -R3m R543m +R23m -R15m +R2m R226m +R63m +R49m +R122m Construction & Materials & Fabrication & Corporate Discontinued Operating Engineering Services Manufacture Operations Profit (EBIT) Globalising Global
Slide 18: Construction SADC
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Construction SADC* R2,21bn R90m R58m R2,13bn 2005 2004 2005 2004 Revenue Operating Profit Margin : 4,1% (2004: 2,8%) *excluding Concessions Globalising Globalising Murray Murray & Roberts & Roberts
Slide 19: Construction Middle East
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Construction Middle East* R914m -R38m R38 R10 -R10m R889m 2005 2004 2005 2004 Revenue Operating Profit *including Egypt Globalising Globalising Murray Murray & Roberts & Roberts
Slide 20: Mining Contracting SADC
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Mining Contracting SADC R69 R69m R1,85bn R400m (RUC only) R4m (RUC only) 2005 2004 2005 2004 Revenue Operating Profit Margin : 3,7% (2004: 1,0%) Globalising Globalising Murray Murray & Roberts & Roberts
Slide 21: Mining Contracting International
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Mining Contracting International R655m R42m R80m (RUC Aus) R9m (RUC Aus) 2005 2004 2005 2004 Revenue Operating Profit Margin : 6,4% (2004: 11.3%) Globalising Globalising Murray Murray & Roberts & Roberts
Slide 22: Engineering Contracting SADC
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Engineering Contracting SADC R651m R81m R603m R26m 2005 2004 2005 2004 Revenue Operating Profit Margin : 4,3% (2004: 12,4%) Globalising Globalising Murray Murray & Roberts & Roberts
Slide 23: Construction Materials & Services - Fabrication
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Construction Materials & Services - Fabrication R626m R61m R428m R29m R29 2005 2004 2005 2004 Revenue Operating Profit Margin : 9,7% (2004: 6,8%) Globalising Globalising Murray Murray & Roberts & Roberts
Slide 24: Construction Materials & Services - Steel
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Construction Materials & Services - Steel R1,64bn R95 R95m R1 53b R1,53bn R84m 2005 2004 2005 2004 Revenue Operating Profit Margin : 5,8% (2004: 5,5%) Globalising Globalising Murray Murray & Roberts & Roberts
Slide 25: Construction Materials & Services - Infrastructure
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Construction Materials & Services - Infrastructure R833m R144 R144m R737m R134m 2005 2004 2005 2004 Revenue Operating Profit Margin : 17,3% (2004: 18,2%) Globalising Globalising Murray Murray & Roberts & Roberts
Slide 26: Industrial & Manufacturing
REPORT BACK YEAR END 30 JUNE 2005 OPERATIONS Industrial & Manufacturing R1,26bn R92m R1,02bn R70m 2005 2004 2005 2004 Revenue Operating Profit Margin : 9,0% (2004: 5,6%) Globalising Globalising Murray Murray & Roberts & Roberts
Slide 27: A Fair Swap for Unitrans
REPORT BACK CORPORATE ACTIVITY A FAIR SWAP FOR UNITRANS : Clough Unitrans sold for R935m Non-core Strategic buy Retailing Resources Cementation Cementation and Clough operate within the strategic focus of the Groupp and are expected p to deliver attributable earnings g from the 2007 financial year i
Slide 28: Cementation
REPORT BACK CEMENTATION THE CEMENTATION CO AFRICA LIMITED z Acquired 1 Julyy 2004 z De-listed from the JSE Limited z Merged with Murray & Roberts RUC z Empowered 1 January 2005 with 26% sold to AKA Capital CEMENTATION CANADA INC z Murray & Roberts International z Deepest mine outside RSA Murray y &
Slide 29: Clough Limited
REPORT BACK CLOUGH LIMITED z Based in Perth West Australia z Similar development history to Murray & Roberts z Offshore and Onshore Oil & Gas z Australia, Indonesia, Thailand, India, Pakistan, Saudi Arabia and the Gulf z Transaction approved 10 November 2004 for 29,3% stake and right to control z P
Slide 30: Corporate Activity: Criterion, Booker Tate, Oconbrick
REPORT BACK CORPORATE ACTIVITY CRITERION : zSold to J&J Group on 1 September 2005 zEmpowerment transaction valued at R75 million zIncludes an element of vendor financing BOOKER TATE : z Sold on 1 September 2004 z Pension fund deficit OCONBRICK : z Market No 3 based in Meyerton z Effective 1 July 200
Slide 31: Broad Based Empowerment Philosophy
BROAD BASED EMPOWERMENT PHILOSOPHY Destination Implementation Strategies Ensure compliance Employees and Murray & Roberts Broad-based Broad-based BEE Act Holdings communities Codes of Good Practice on Broad-based BEE IIndustry d t specific ifi Charters Strategic BEE Murray & Roberts Limite
Slide 32: Current BEE Partnerships
EMPOWERMENT CURRENT BEE PARTNERSHIPS AKA Capital currently Indirect participation in h 26% shareholding has h h ldi in i Murray & Roberts ordinary di share h capital it l Murray & Roberts Holdings Ltd of Murray & Roberts Cementation Includes various public J&J Group has a 30% & private pensi
Slide 33: Proposed Broad-Based Structure
EMPOWERMENT PROPOSED BROAD-BASED STRUCTURE Broad–based Black Employee Community Trust Benefits Trust 100% 100% Public & Private Black Executives General Staff Subco 1 Subco 2 shareholders Trust Trust 90,0% 3,5% 2,0% 3,0% 1,5% Preference share funding of R99m 10,0% Loan of ~R148m (One group company)
Slide 34: Risk Management
BEYOND 2005 TO 2010 RISK MANAGEMENT GROUP RISK FRAMEWORK z Managing the Risk Appetite of the Organisation and Leadership OPPORTUNITY MANAGEMENT SYSTEM z Filtering Risk before it enters the Organisation INTERNATIONAL ADVISORY BOARD z Bringing Global Leadership to the Organisation HEALTH, SAFETY AND T
Slide 35: Health, Safety & Environment: The Aspiration
BEYOND 2005 TO 2010 HEALTH, SAFETY & ENVIRONMENT THE MURRAY & ROBERTS ASPIRATION z Zero harm consequence from our activities on z our company and clients, z all people, and z the environment z Fatalities and permanent disablement benchmarked at zero z LTIFR targeted below a benchmark of 3,0 z with a
Slide 36: Rebuilding Murray & Roberts!
YEAR AHEAD TO 30 JUNE 2006 REBUILDING MURRAY & ROBERTS ! Globalising Globalising Murray Murray & Roberts & Roberts
Slide 37: The Big Issues
BEYOND 2005 TO 2010 THE BIG ISSUES GROWTH EMPOWERMENT z CAGR > 15% pa z Broad-based Equity PERFORMANCE z Executive Leadership z Human Capital z Capacity Development z Systems Capacity SUCCESSION z Unitary Murray & Roberts z Group Leadership CLOUGH z International z Performance SUSTAINABILITY z Integ
Slide 38: Prospects
YEAR AHEAD TO 30 JUNE 2006 PROSPECTS The Directors are of the view that the next few years will be positive to the Group and that there will be real growth in headline earnings in the year to 30 June 2006 Globalising Globalising Murray Murray & Roberts & Roberts
Slide 39: Thank You
THANK YOU This presentation is available on http://www.murrob.com Globalising Globalising Murray Murray & Roberts & Roberts
Murray & Roberts Holdings — FY2005 Earnings Presentation on 6ix