Murray & Roberts — H1 2006 Earnings Presentation
45 slides from Murray & Roberts's earnings presentation, 2006
Slide 1: Interim Report to Stakeholders
INTERIM REPORT to STAKEHOLDERS FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 Globalising Murray & Roberts
Slide 2: Chairman Statement
ANNUAL REPORT 2006 CHAIRMAN STATEMENT “The directors are of the view that the next few years will be p positive for the Groupp and that there will be real growth in headline earnings in the year to 30 June 2006.” INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 3: Chief Executive Report
ANNUAL REPORT 2006 CHIEF EXECUTIVE REPORT “We ffeell positive “W iti about b t our future f t prospects t based b d on the th current economic prognosis for our selected markets. --- we expect the years ahead to bring real growth in headline earnings off the sound and strategic platform established
Slide 4: Operations Performance Highlights
OPERATIONS PERFORMANCE HIGHLIGHTS 9 Interim Dividend up 33% to 20 cents per share 9 Operating Profit up 50% 9 p Operatingg Cash Flow up p R 107 million 9 Strong Order Book up 13% to R 9,6 billion 9 Headline earnings maintained (excluding BBBEE transaction) 9 Empowerment Transaction Concluded INTERIM
Slide 5: Strategic Performance Highlights
STRATEGIC PERFORMANCE HIGHLIGHTS Over the past six months Murray & Roberts has secured a leading partnership position in a number of major public sector programs with a Total Investment Value > R 100 billion 9 VRESAP Pipeline for TCTA 9 Pebble Bed Demonstration Plant for PBMR 9 Coalink Locomotive Pr
Slide 6: Share Price Performance
SHARE PRICE PERFORMANCE The share is currently up 75% on the 1375cps of December 2004 and Shareholder Value has improved p by y R 3,4 , billion INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 7: Financial Performance: IFRS
FINANCIAL PERFORMANCE INTERNATIONAL FINANCIAL REPORTING STANDARD “The Group adopted IFRS with effect from 1 July 2005. There has been a restatement of Headline Earnings for the year ended 30 June 2005 increasing performance in th t year tto 145 cents that t per share” h ” INTERIM REPORT Globalising
Slide 8: Performance Report
PERFORMANCE REPORT Half Year to 31 December 2005 R 5,5bn R 208m R 209m NO 9% % CHANGE R 5,1bn Dec Dec Dec Dec 2005 2004 00 2005 2004 R 301m Ongoing Revenues 50% Headline Earnings excl. BBBEE expense R 201m Dec Dec 2005 2004 Operating Profit INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MON
Slide 9: Performance Report
PERFORMANCE REPORT Half Year to 31 December 2005 R 850m 26% 62% 278% 16% R 225m* Dec Dec Dec Dec 2005 2004 R9 9,6bn 6bn 2005 2004 Net Cash* Effective Taxation Rate 13% R 8,5bn Dec Jun 2005 2005 Order Book *excluding proceeds of disposal of Unitrans INTERIM REPORT Globalising Murray & Roberts FOR THE
Slide 10: Performance Report
PERFORMANCE REPORT Half Year to 31 December 2005 Dec 2005 Dec 2004 DIVIDEND (cents per share) 20 15 OPERATING PROFIT (R millions) 301 201 OPERATING MARGIN (Percentage) 5,3 3,8 HEADLINE EARNINGS* EARNINGS (cents per share) 65 65 * excluding BBBEE expense INTERIM REPORT Globalising Murray & Roberts FO
Slide 11: Balance Sheet
PERFORMANCE REPORT Half Year to 31 December 2005 BALANCE SHEET (R millions) Dec 2005 Dec 2004 TOTAL ASSETS 6 590 6 604 Cash 1 113 576 Fixed & Current 5 477 6 028 TOTAL EQUITY & LIABILITIES 6 590 6 604 Permanent capitalp 2 793 2 841 Non-current liabilities 859 741 Current liabilities 2 938 3 022 INTE
Slide 12: Order Book Construction & Engineering
PERFORMANCE REPORT Half Year to 31 December 2005 ORDER BOOK CONSTRUCTION & ENGINEERING z R 9,6 billion at 31 December 2005 Middle E Middl Eastt 29% December 2005 SADC Rest of World 64% 7% Middle East 39% June 2005 SADC Rest of World 9% 52% INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONT
Slide 13: Order Book Construction & Engineering
PERFORMANCE REPORT Half Year to 31 December 2005 ORDER BOOK CONSTRUCTION & ENGINEERING z 13% Growth since 30 June 2005 Construction 57% Mining 35% December 2005 Other Engineering 1% 7% Construction 53% Mining June 2005 40% Other 2% Engineering 5% INTERIM REPORT Globalising Murray & Roberts FOR THE S
Slide 14: Construction SADC
PERFORMANCE REPORT Half Year to 31 December 2005 CONSTRUCTION SADC R1 1,2bn 2b R 64m R 956m (R 55m) Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit *excluding Concessions INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 15: Construction Middle East
PERFORMANCE REPORT Half Year to 31 December 2005 CONSTRUCTION MIDDLE EAST R 581m R 26m R 442m (R 49m) Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 4,5% *including Egypt INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 16: Mining Contracting SADC
PERFORMANCE REPORT Half Year to 31 December 2005 MINING CONTRACTING SADC R 47m R 941m R 33m R 926m Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 5,0% (2004: ( 3,6%)) INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 17: Mining Contracting International
PERFORMANCE REPORT Half Year to 31 December 2005 MINING CONTRACTING INTERNATIONAL R 370m R 26m R 19m R 363m Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 7,0% (2004: ( 5,2%)) INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 18: Engineering Contracting SADC
PERFORMANCE REPORT Half Year to 31 December 2005 ENGINEERING CONTRACTING SADC R 20 20m R 302m R 276m (R 2m) Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 7,2% INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 19: Industrial Manufacture
PERFORMANCE REPORT Half Year to 31 December 2005 INDUSTRIAL MANUFACTURE R 580m R 39m R 421m R 34m Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 9,3% (2004: ( 5,9%)) INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 20: Construction Materials – Steel Fabrication
PERFORMANCE REPORT Half Year to 31 December 2005 CONSTRUCTION MATERIALS – STEEL FABRICATION R 376m R 31m R 292m R 21m Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 8,2% (2004: ( 7,2%)) INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 21: Construction Materials – Steel Products
PERFORMANCE REPORT Half Year to 31 December 2005 CONSTRUCTION MATERIALS – STEEL PRODUCTS R 914m R 51m R 633m R 38m Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 5,6% (2004: ( 6,0%)) INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 22: Construction Materials – Infrastructure
PERFORMANCE REPORT Half Year to 31 December 2005 CONSTRUCTION MATERIALS – INFRASTRUCTURE R 485m R 97m R 389m R 73m Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 20,0% (2004: ( 18,8%)) INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31DECEMBER 2005
Slide 23: Building Materials
PERFORMANCE REPORT Half Year to 31 December 2005 BUILDING MATERIALS R 29m R 145m R 85m R 2m Dec 2005 Dec 2004 Dec 2005 Dec 2004 Revenue Operating Profit Margin g : 20,0% (2004: ( 2,4%)) INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 24: Clough Limited
PERFORMANCE REPORT Half Year to 31 December 2005 CLOUGH LIMITED z Shareholding increased to 46,1% in November 2005 for ± R 225 million z Rights to a further 3% on conversion of a loan facility of AUD 15 million z Half-year Half year loss of AUD 16 million due primarily to problem India contracts z C
Slide 25: Acquisitions and Disposals
PERFORMANCE REPORT Half Year to 31 December 2005 ACQUISITIONS z 80% of Ocon Brick effective 1 August 2005 for R 96 million z Increased shareholding in Clough to 46,1% 46 1% for ± R 225 million PENDING z 100% of Concor Limited pending competition approval. Cost of this transaction will be approximate
Slide 26: Empowerment
PERFORMANCE REPORT Half Year to 31 December 2005 EMPOWERMENT z BBBEE ttransaction ti concluded l d d 19 D December b 2005 z Four independent trusts owning 10% of Issued Shares z Almost 14000 employees receive grant of 300 shares z Once off charge of R 95 million to the income statement reducing head
Slide 27: Areas of Focus
PERFORMANCE REPORT Half Year to 31 December 2005 AREAS OF FOCUS z Problem contracts and leadership in SADC Construction z Historic problem contracts in Clough z Human Capital constraints in construction industry INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Slide 28: Areas of Focus: Fatalities
PERFORMANCE REPORT Half Year to 31 December 2005 AREAS OF FOCUS z Five fatalities were recorded in the half year to 31 December 2005 on work sites under our control. Fatalities Operation E l Employees S b Sub-contractors t t Construction SADC 1 2+1* Mining Contracting RSA 2+1* - Constr ction Middle
Slide 29: Economic Potential
ECONOMIC POTENTIAL South African Construction Economy SOUTH AFRICAN GFCF as a % of GDP 30.0% 28.0% GFCF % GDP 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14 0% 14.0% 12.0% 10.0% 1947 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2 2 2 2 2 Globa
Slide 30: Prospects: Construction Middle East
PERFORMANCE PROSPECTS Construction Middle East BUSINESS BAY TOTAL 230 TOWERS JEBEL ALI AIRPORT DUBAI WORLD HOTEL, HOTEL TRADE CENTRE OFFICES, RESIDENTIAL TOTAL 200 TOWERS 40 TOWERS INTERIM REPORT Globalising Murray & Roberts FOR THE SIX MONTHS ENDED DECEMBER 2005
Slide 31: Global Business Platform: Engineering & Construction
GLOBAL BUSINESS PLATFORM Engineering & Construction Globalising Murray & Roberts
Slide 32: Local Engineering & Construction
LOCAL ENGINEERING & CONSTRUCTION OCON BRICK z 80% acquired 1 August 2005 z 350 million bricks per annum z Building Materials Strategy CONCOR LIMITED z Scheme of Arrangement sanction Feb 2006 z Subject to Competition approval z Extends domestic market reach z Maintain identity and empowered Concor Te
Slide 33: Global Business Platform: Mining & Minerals
GLOBAL BUSINESS PLATFORM Mining & Minerals Globalising Murray & Roberts
Slide 34: Global Mining & Minerals
GLOBAL MINING & MINERALS THE CEMENTATION CO AFRICA LIMITED z Acquired 1 July 2004 z De-listed from the JSE Limited z Merged with Murray & Roberts RUC z Empowered 1 January 2005 with 20% sold to AKA Capital CEMENTATION CANADA INC z Murray & Roberts International z Deepest mine outside RSA Murray & Ro
Slide 35: Global Business Platform: Oil & Gas
GLOBAL BUSINESS PLATFORM Oil & Gas Globalising Murray & Roberts
Slide 36: Global Oil & Gas
GLOBAL OIL & GAS CLOUGH LIMITED z Based in Perth West Australia z Similar development history to M Murray &RRoberts b t z Petrosea in Jakarta Indonesia z Australia, Indonesia, Thailand, India, Pakistan Saudi Arabia and Caribbean Pakistan, z 29,3% stake & share partnership Nov 2004 z Pre-acquisition
Slide 37: Order Book: Gautrain and PBMR
PERFORMANCE REPORT Half Year to 31 December 2005 ORDER BOOK Project Description : Ist Rapid Rail system initiative on the African Continent. Distance 80km as intermodal transport system incorporating Park & Ride and bus facilities. 4th largest construction project globally GAUTRAIN Location : Interc
Slide 38: Order Book: Coalink and VRESAP
PERFORMANCE REPORT Half Year to 31 December 2005 ORDER BOOK Project Description : Locomotives to be supplied against performance specification p to Spoornet p COALINK Location : Ermelo / Richards Bay network Total Value : R 3,5 bn over 5 years LOCOMOTIVE Completion : 2011 PROGRAM Partners Murray & R
Slide 39: Order Book: Bedford Square and Eskom
PERFORMANCE REPORT Half Year to 31 December 2005 ORDER BOOK Project Description : Mixed use development of 145 000m2, comprising of apartments/parkade retail apartments/parkade, retail, cinemas cinemas, hotel & offices. offices Location : Bedfordview BEDFORD Total Value : US$ 93 m Completion : July
Slide 40: Order Book: Durrat Bridges and Goldcrest Views
PERFORMANCE REPORT Half Year to 31 December 2005 ORDER BOOK Project Description : 13 Bridges totalling 3.5 km Location : Bahrain Total Value : US$ 54 m Completion date : January 2008 DURRAT Partner : NASS BRIDGES Murray & Roberts : 50% Project Description : 40 storey Residential Tower. Floor Area :
Slide 41: Order Book: Dubai Airport and Bur Juman
PERFORMANCE REPORT Half Year to 31 December 2005 ORDER BOOK Project Description : Fit-out of Concourse 2, Terminal 3 and Car Park. Building DUBAI Area : 1.8million m2 Location : Dubai INTER-- INTER Total Value : US$ 1 bn NATIONAL Completion date : June 2007 Partners : Al Habtoor and Takenaka AIRPORT
Slide 42: Risk Management
PERFORMANCE REPORT Half Year to 31 December 2005 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 B i i Global Gl b l Leadershi
Slide 43: STOP! THINK Safety Awareness Campaign
PERFORMANCE REPORT Half Year to 31 December 2005 STOP! THINK Safety Awareness Campaign z Zero harm consequence from our activities on z our company company, clients and business partners; z all people; and z the environment. z STOP! THINK Campaign roll-out commences March 2006 z New communication to
Slide 44: Prospects Statement
GLOBALISING MURRAY & ROBERTS PROSPECTS STATEMENT A new performance platform has been established over the past five years Rebuilding Murray & Roberts. Excluding the BBBEE charge of R 95 million to the income statement, headline earnings per share should show real growth for the full year to 30 June
Slide 45: Globalising Murray & Roberts
Globalising Murray & Roberts
Murray & Roberts Holdings — H1 2006 Earnings Presentation on 6ix