Murray & Roberts — Macquarie Construction CEO's Conference 2015
17 slides from Murray & Roberts's conference presentation, Oct 28, 2015
Slide 1: Macquarie Construction CEO's Conference
MACQUARIE CONSTRUCTION CEO'S CONFERENCE 28 OCTOBER 2015 ENGINEERED EXCELLENCE
Slide 2: Grayston, Sandton Pedestrian Bridge Temporary Support Structure Collapse
GRAYSTON, SANDTON • Pedestrian Bridge Temporary Support Structure Collapse: 14 October 2015 – mid-afternoon 2 Deceased and 19 injured (3 injured remain in hospital, none critical) Temporary support structure for proposed pedestrian bridge Client – Johannesburg Development Agency Contract value – R13
Slide 3: The Group's 2020 Vision: Diverse International Engineering & Construction Group
THE GROUP’S 2020 VISION IS THAT OF A DIVERSE INTERNATIONAL ENGINEERING & CONSTRUCTION GROUP FOCUSED ON THE NATURAL RESOURCE MARKET SEGMENTS A Group of world class companies and brands aligned to the same purpose and vision, and guided by the same set of values with a common owner, Murray & Roberts H
Slide 4: A Leading Diversified International Project Engineering, Procurement and Construction Group by 2020
A LEADING DIVERSIFIED INTERNATIONAL PROJECT ENGINEERING, PROCUREMENT AND CONSTRUCTION GROUP BY 2020 Strategic objectives Strategic priority • Resolve Gautrain and Dubai claims and Gautrain water ingress Grow profitability and cash flows • Enhanced EBT, free cash flow and ROICE performance Focus on i
Slide 5: Improved Returns Through Business Model Diversification
IMPROVED RETURNS THROUGH BUSINESS MODEL DIVERSIFICATION INCREASE CONTRIBUTION OUTSIDE CLASSIC CONSTRUCTION Typical return and margin range per value chain segment 50 % Classic Development Engineering Operations Services construction 40 % 30 % 15-45% 20 % 0-40% 0-30% 0-30% 10-20% 10 % 0-15% 5-15% 0-5
Slide 6: Changing Business Model Through Bolt-on Acquisitions
CHANGING BUSINESS MODEL THROUGH BOLT-ON ACQUISITIONS • Value: R57m • Location: Hanover and Houston, United States • Description: CH·IV International has been providing LNG engineering and consulting services to a wide base of clients encompassing the entire LNG value chain since 1991. From gas treat
Slide 7: Infrastructure & Building and Power & Water
INFRASTRUCTURE & BUILDING AND POWER & WATER • International diversification approach: Geographic positioning – permanent presence (offices) in regions with major opportunity in selected market segments Dubai Major clients – follow major clients on project- Accra by-project basis into other regions •
Slide 8: Underground Mining
UNDERGROUND MINING • International diversification approach: Geographic positioning – permanent presence (offices) in regions with North Bay major opportunity in Quebec selected market Salt Lake segments City Hong Kong Major clients – follow major clients on project- by-project basis into other regi
Slide 9: Oil & Gas
OIL & GAS • International diversification approach: Geographic positioning – permanent presence (offices) in regions with Calgary Glasgow major opportunity in selected market segments Houston Major clients – follow major clients on project- by-project basis into other regions PNG • Globally employin
Slide 10: Earnings Underpinned by International Platforms
EARNINGS UNDERPINNED BY INTERNATIONAL PLATFORMS AS AT 30 JUNE 2015 • Internationally-focused Revenue EBIT (Before Corporate Cost) platforms (Oil & Gas and Underground Mining) contribute 63% of revenue and 94% of 16% EBIT (Before Corporate 23% costs). (10%) 38% International – 63% International – 94%
Slide 11: Order Book and Pipeline as at 30 September 2015
AS AT 30 SEPTEMBER 2015 Pipeline R’bn Order Book Near orders Category 1 Category 2 Category 3 Infrastructure & Building 7,0 1,9 11,8 49,6 41,1 Power & Water 6,7 0,3 5,9 36,4 48,8 Underground mining 17,1 4,8 21,4 3,9 27,0 Oil & Gas 6,0 2,2 31,5 37,3 256,0 Total (30 September 2015) 36,8 9,2 70,6 127,2
Slide 12: Platform Growth Catalyst Economy
Platform Growth Catalyst Economy Oil & Gas Stronger oil price Global Underground Mining Growth in the commodity Global cycle Infrastructure & Building Government infrastructure South Africa spend Power & Water Power and water sector South Africa spend The world economy is experiencing a sustained pe
Slide 13: Internationally Focused Platforms
INTERNATIONALLY FOCUSED PLATFORMS Oil & Gas • Market uncertain due the low oil price – investment decisions are being delayed / deferred and margin under pressure. • Short to medium term growth potential in Australasian LNG commissioning, operations & maintenance market – Clough has largest share of
Slide 14: Sub-Saharan Focused Platforms
SUB-SAHARAN FOCUSED PLATFORMS Power & Water • Medupi & Kusile to provide baseload work for about next 4 years, although declining every year. • Opportunity in maintenance and refurbishment of older Eskom thermal power stations but slow engagement and difficult to realise. • Power sector to see incre
Slide 15: Strategy in Place to Achieve 2020 Vision
Strategy in place to achieve 2020 Vision: By 2020 we aim to be a leading diversified project engineering, procurement and construction group in selected natural resources sectors and supporting infrastructure Need improved trading conditions across all platforms to realise benefit from New Strategic
Slide 16: 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 17: Macquarie Construction CEO's Conference
MACQUARIE CONSTRUCTION CEO‘S CONFERENCE 28 OCTOBER 2015 This presentation is available on www.murrob.com ENGINEERED EXCELLENCE
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