Murray & Roberts — H1 2007 Earnings Presentation
60 slides from Murray & Roberts's earnings presentation, 2007
Slide 1: Interim Report to Stakeholders for the Six Months Ended December 2006
INTERIM REPORT TO STAKEHOLDERS FOR THE SIX MONTHS ENDED DECEMBER 2006
Slide 2: Group Chief Executive quote on performance platform
om. “We have built a formidable performance platform to engage the future potential of all our markets” Group Chief Executive Brian Bruce
Slide 3: Prospects Statement 2006
y PROSPECTS STATEMENT 2006 rts ANNUAL REPORT 2006 The directors remain of the view that the next few years will be positive for the Group and that including the consolidation of its acquisitions, revenues could be at substantially higher levels by 2010 at the target operating margin of between 5,0%
Slide 4: Salient Features
SALIENT FEATURES HALF YEAR TO DECEMBER 2006 * INTERIM DIVIDEND TO 45 cents per share OPERATING PROFIT TO R560 million GLOBALISING MURRAY & ROBERTS
Slide 5: Salient Features
SALIENT FEATURES HALF YEAR TO DECEMBER 2006 * ORDERBOOKTO R15,4 billion ——_——— GLOBALISING MURRAY & ROBERTS
Slide 6: Performance Report
PERFORMANCE REPORT HALF YEAR TO DECEMBER 2006 Dee 2005 86% Dec 2005 Dec 2006 Ongoing Revenue Operating Profit R 208m Headline Earnings (excl. BBBEE expense) Dec 2006 Dec 2005 Dec 2006 GLOBALISING MURRAY & ROBERTS
Slide 7: Performance Report
PERFORMANCE REPORT HALF YEAR TO DECEMBER 2006 eR 849m 80% mee R 10,0bn Dec 2006 f Net Cash Order Book GLOBALISING MURRAY & ROBERTS
Slide 8: South African Construction Industry
30.0% 4 28.0% 4 26.0% 4 94.0% 4 22.0% 4 20.0% 4 18.0% + 16.0% + 14.0% + 12.0% 7 _ 10.0% 47 y rts SOUTH AFRICAN CONSTRUCTION INDUSTRY SOUTH AFRICA GFCF as a % of GDP GLOBALISING MURRAY & ROBERTS
Slide 9: Share Performance
SHARE PERFORMANCE Price Murray & Roberts Holdings Limited Volume ah lt | : } | | | | | | fl ha \ A Is i aN i \ A ,~ Aug-t 30-Dec-0686 The Share Price has improved by R34,00 since 31 December 2005 Market Capitalisation has risen above R17 billion GLOBALISING MURRAY & ROBERTS
Slide 10: A Strong Balance Sheet
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 A STRONG BALANCE SHEET (R millions) Dec 2006 Dec 2005 a 575 6 815 1113 5 702 —_——<——s—_ 6 815 2 793 859 3 163 GLOBALISING MURRAY & ROBERTS
Slide 11: Revenues Up and Growing
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 REVENUES UP AND GROWING = Construction & Materials & Fabrication & Revenue Engineering Services Manufacture GLOBALISING MURRAY & ROBERTS
Slide 12: Operating Profit Up - Margin 6,5%
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 OPERATING PROFIT UP — MARGIN 6,5% R 28m (R 73m) a Aexxye — Construction & Materials & Fabrication & Corporate Operating Profit Engineering Services Manufacture (EBIT) GLOBALISING MURRAY & ROBERTS
Slide 13: Strong Cash Flow
REPORT BACK HALF YEAR TO 31 DECEMBER 2006 STRONG CASH FLOW n aay ( m) Opening Financing Investing Dividends Interest, Tax Working Operating Closing Cash Activities Activities Paid & Forex Capital Cash Cash GLOBALISING MURRAY & ROBERTS
Slide 14: Construction SADC
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 CONSTRUCTION SADC R 2,311bn R 105m R 956m (R 25m) —7 —_—- Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 4,5% (Dec 2005: -2,6%) GLOBALISING MURRAY & ROBERTS
Slide 15: Construction Middle East
REPORT BACK HALF YEAR TO 31 DECEMBER 2006 CONSTRUCTION MIDDLE EAST R 1,118bn R 58m R58im | i J Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 5,2% (Dec 2005: 4,5%) GLOBALISING MURRAY & ROBERTS
Slide 16: Engineering Contracting
REPORT BACK HALF YEAR TO 31 DECEMBER 2006 ENGINEERING CONTRACTING R 20m R 12m Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 4,9% (Dec 2005: 7,2%) GLOBALISING MURRAY & ROBERTS
Slide 17: Mining Contracting SADC
REPORT BACK HALF YEAR TO 31 DECEMBER 2006 MINING CONTRACTING SADC ‘| R39m Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 6,0% (Dec 2005: 4,1%) GLOBALISING MURRAY & ROBERTS
Slide 18: Mining Contracting International
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 MINING CONTRACTING INTERNATIONAL R 572m R 46m R 370m | Y ] Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 8,0% (Dec 2005: 7,0%) GLOBALISING MURRAY & ROBERTS
Slide 19: Construction Materials - Steel
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 CONSTRUCTION MATERIALS - STEEL R 60m R 1,108bn ‘| R914m Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 5,4% (Dec 2005: 5,6%) GLOBALISING MURRAY & ROBERTS
Slide 20: Construction Materials - Fabrication
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 CONSTRUCTION MATERIALS - FABRICATION R 475m R 376m ‘| | j Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 4,6% (Dec 2005: 8,2%) GLOBALISING MURRAY & ROBERTS
Slide 21: Construction Materials - Infrastructure
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 CONSTRUCTION MATERIALS - INFRASTRUCTURE R 124m ‘| a ‘| 1 Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 20,6% (Dec 2005: 20,0%) GLOBALISING MURRAY & ROBERTS
Slide 22: Construction Materials - Housing
REPORT BACK HALF YEAR TO 31 DECEMBER 2006 CONSTRUCTION MATERIALS - HOUSING R 423m R 65m R 29m R 145m Dec 2006 Dec 2005 Dec 2006 Dec 2005 Revenue Operating Profit Margin : 15,4% (Dec 2005: 20,0%) GLOBALISING MURRAY & ROBERTS
Slide 23: Construction Services
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 CONSTRUCTION SERVICES R48m R 131m R 109m ‘| R18m Dec 2006 . Dec 2005 | Dec 2006 | Dec 2005 Revenue Operating Profit Margin : 36,6% (Dec 2005: 17,4%) GLOBALISING MURRAY & ROBERTS
Slide 24: Industrial Manufacturing
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 INDUSTRIAL MANUFACTURING — R39m | ‘| ‘| ‘| Dec 2006 . Dec 2005 | Dec 2006 | Dec 2005 Revenue Operating Profit Margin : 5,3% (Dec 2005: 9,3%) GLOBALISING MURRAY & ROBERTS
Slide 25: Clough Limited
REPORT BACK HALF YEAR TO 31 DECEMBER 2006 CLOUGH LIMITED Dec Dec (AUD millions) 2006 2005 304 (14,6) 16,7) GLOBALISING MURRAY & ROBERTS
Slide 26: Corporate Activity
y REPORT BACK rts HALF YEAR TO 31 DECEMBER 2006 CORPORATE ACTIVITY ACQUISITIONS » Recapitalisation of Clough — A$23,3m : Shareholding increased 0,7% } Current shareholding » Clough Shares purchased - A$5,1m : Shareholding increased 3,0% 49% » Wade Walker South Africa — 80% Shareholding DISPOSALS » B
Slide 27: Gautrain and 2010 World Cup
GAUTRAIN AND 2010 WORLD CUP GLOBALISING MURRAY & ROBERTS
Slide 28: Gautrain and 2010 World Cup
y GAUTRAIN AND 2010 WORLD CUP rts » Government Positional Power vs Contractors Capacity » Black Economic Empowerment » Risk of design » Identifying opportunities to pursue » Appointing executive capacity » Partnering strategy » Negotiating the commercial deal » Opportunity to “re-tool” the organisat
Slide 29: GAUTRAIN RAPID RAIL LINK
GAUTRAIN RAPID RAIL LINK GLOBALISING MURRAY & ROBERTS
Slide 30: Development Goals
&. GAUTRAIN RAPID RAIL LINK DEVELOPMENT GOALS GLOBALISING MURRAY & ROBERTS
Slide 31: Contract Details
y GAUTRAIN RAPID RAIL LINK rts CONTRACT DETAILS » Public Private Partnership (PPP) Concession Contract » Client —- Gauteng Provincial Government Department of Public Transport, Roads and works » Concessionaire — Bombela Concession Company (Pty) Ltd » Funding: National & Provincial Government R22 bil
Slide 32: Implementation Schedule
GAUTRAIN RAPID RAIL LINK IMPLEMENTATION SCHEDULE Construction commenced 28 September 2006 OcD 1 ORT — Sandton — Midrand . section in operation OCD 2 Whole system in full operation GLOBALISING MURRAY & ROBERTS
Slide 33: Gautrain route map
GAUTRAIN RAPID RAIL LINK Pretoria Station @ PD Hotfeld Centurion @ rt ' Midrand @ . Marlboro sSonton) Rosebank = Johannesburg Pork Station GLOBALISING MURRAY & ROBERTS
Slide 34: GAUTRAIN RAPID RAIL LINK
GAUTRAIN RAPID RAIL LINK GLOBALISING MURRAY & ROBERTS
Slide 35: Maximum speed - 170kph
vr , GAUTRAIN RAPID RAIL LINK Maximum speed 160 — 170kph Frequency 10 — 30mins Minimum operating hours 05h30 — 20h30 Safety & security paramount Indicative single journey fare (current pricing) Sandton to Rosebank (6km) — R10 Sandton to Park Station (12km) — R13 Sandton to Pretoria (45km) — R20 Sand
Slide 36: Railway Alignment
y GAUTRAIN RAPID RAIL LINK rts RAILWAY ALIGNMENT PR be maee 77 km track-work by systems GLOBALISING MURRAY & ROBERTS
Slide 37: Earthworks
Murray GAUTRAIN RAPID RAIL LINK & Roberts EARTHWORKS Approx 50 km, 7.1 million m3 of cut to fill / spoil GLOBALISING MURRAY & ROBERTS
Slide 38: Tunnels
Murray GAUTRAIN RAPID RAIL LINK & Roberts TUNNELS GLOBALISING MURRAY & ROBERTS
Slide 39: Cut & Cover Structures
Murray GAUTRAIN RAPID RAIL LINK & Roberts CUT & COVER STRUCTURES Approx 1.0 km GLOBALISING MURRAY & ROBERTS
Slide 40: Viaducts & Bridges
&. GAUTRAIN RAPID RAIL LINK VIADUCTS & BRIDGES Approx 10.5 km viaducts, 55 over / underpasses GLOBALISING MURRAY & ROBERTS
Slide 41: Stations
GAUTRAIN RAPID RAIL LINK STATIONS 10 stations — underground, surface or elevated 10 000 car parking bays — Dt ih 4 : daa’ + GLOBALISING MURRAY & ROBERTS
Slide 42: Depot & Operational Control Centre
Murray GAUTRAIN RAPID RAIL LINK & Roberts DEPOT & OPERATIONAL CONTROL CENTRE GLOBALISING MURRAY & ROBERTS
Slide 43: Electrical & Mechanical Systems
GAUTRAIN RAPID RAIL LINK ELECTRICAL & MECHANICAL SYSTEMS GLOBALISING MURRAY & ROBERTS
Slide 44: Construction Progress
Murray GAUTRAIN RAPID RAIL LINK & Roberts CONSTRUCTION PROGRESS GLOBALISING MURRAY & ROBERTS
Slide 45: Construction Progress - Rosebank
Murray GAUTRAIN RAPID RAIL LINK & Roberts CONSTRUCTION PROGRESS ROSEBANK GLOBALISING MURRAY & ROBERTS
Slide 46: Construction Progress
Murray GAUTRAIN RAPID RAIL LINK & Roberts CONSTRUCTION PROGRESS ‘GLOBALISING MURRAY & ROBERTS
Slide 47: Construction Progress - Mushroom Park
Murray GAUTRAIN RAPID RAIL LINK & Roberts CONSTRUCTION PROGRESS MUSHROOM PARK GLOBALISING MURRAY & ROBERTS
Slide 48: Construction Progress - Marlboro Portal
Murray GAUTRAIN RAPID RAIL LINK & Roberts CONSTRUCTION PROGRESS MARLBORO PORTAL GLOBALISING MURRAY & ROBERTS
Slide 49: Construction Progress - Midrand Depot
Murray GAUTRAIN RAPID RAIL LINK & Roberts CONSTRUCTION PROGRESS MIDRAND DEPOT GLOBALISING MURRAY & ROBERTS
Slide 50: Construction Progress - OR Tambo Station
GAUTRAIN RAPID RAIL LINK CONSTRUCTION PROGRESS OR TAMBO STATION GLOBALISING MURRAY & ROBERTS
Slide 51: 2010 World Cup
2010 WORLD CUP GLOBALISING MURRAY & ROBERTS
Slide 52: Greenpoint Stadium, Cape Town
y GREENPOINT STADIUM rts CAPE TOWN is » rT —- 2 4S » Murray & Roberts preferred bidder » Joint venture with WBHO » 68000 seater » Construction completion in 34 months » Value + R2 billion i GLOBALISING MURRAY & ROBERTS
Slide 53: Peter Mokaba Stadium, Polokwane
PETER MOKABA STADIUM POLOKWANE » Concor preferred bidder » Joint venture with Hochtief Construction AG (Germany) and Motheo East (Pty) Ltd (BEE construction company) » 45000 seater » Construction completion in 25 months » Value +R1 billion GLOBALISING MURRAY & ROBERTS
Slide 54: Health Safety and Environment
y HEALTH SAFETY AND ENVIRONMENT rts FATALITIES (all in South Africa) 8no (Dec 2005 : 5 no) » Construction - Above ground 1no (Dec 2005 : 3 no) » Construction — Below ground 3no (Dec 2005 : 2 no) » Materials & Services (Fixed Facility Sites) 4no (Dec 2005: Nil) Murray & Roberts Group - Historical Fat
Slide 55: Health Safety and Environment
HEALTH SAFETY AND ENVIRONMENT LOST TIME INJURY FREQUENCY RATE » LTIFR: 2,94 in 80,95 million hours worked (Dec 2005 : 5,67) Historical Group Statistics - Jul 04 - Dec 06 GLOBALISING MURRAY & ROBERTS
Slide 56: Project Order Book
PROJECT ORDER BOOK Project Order Book R15,4 billion at 31 December 2006 SADC 78,0% (2005:71,0%) Middle East 15,0% (2005: 23,0%) Rest of the VVYorld 7,0% {2005:6 0%} GLOBALISING MURRAY & ROBERTS
Slide 57: Project Order Book
PROJECT ORDER BOOK Growth in Order Book 54,0% to 31 December 2006 Construction 70,0% (2005:61 0%) Engineering 6 0% (2005:7 0%) Mining 220% (2005:31 0%) GLOBALISING MURRAY & ROBERTS
Slide 58: BBBEE Shareholding
ets BBBEE SHAREHOLDING > R1,2 BILLION VALUE CREATED . v a N wW o 3. rot =] < = = oO 2) = oO » o Qa S — @ = Kea 2) < oO oO a . Vv wz a © 3. = a | ° [m4 3 = ® = < @ < o < 2. ay S @ S a 2 Es a = ° a | . Vv wD N NO 2 ot pr < ® = @ ° = 0) ® —_ @ a s = = = ” - = N oO @ 8 =. < @ ” . Vv wz Bod N 2 rot =] °
Slide 59: Going Forward 2007 - Prospects
GOING FORWARD 2007 PROSPECTS The directors expect fully diluted headline earnings for the full year to 30 June 2007 to grow between 50% and 70% compared with comparable period to 30 June 2006, excluding the Group's BBBEE transaction expenses GLOBALISING MURRAY & ROBERTS
Slide 60: Thank You
THANK YOU This presentation is available on http:/Awww.murrob.com
Murray & Roberts Holdings — H1 2007 Earnings Presentation on 6ix