Murray & Roberts — H1 2005 Earnings Presentation
43 slides from Murray & Roberts's earnings presentation, 2005
Slide 1: Interim Report: Globalising Murray & Roberts
INTERIM REPORT For the half-year to 31 December 2004 Globalising Murray & Roberts
Slide 2: Prospects Statement
PROSPECTS STATEMENT ANNUAL REPORT 2004 Earnings for the year to 30 June 2005 will not show a material change while the Group reorganises itself to meet the objectives of Globalising Murray & Roberts Globalising Murray & Roberts
Slide 3: Performance Report: Interim Report 2005
PERFORMANCE REPORT INTERIM REPORT 2005 The acquisition of Cementation…...and a strategic shareholding in Clough as well as the disposal of the Group’s Group s……shareholding shareholding in Unitrans have demanded significant executive time throughout the reporting period Globalising Murray & Roberts
Slide 4: Acquisition - Cementation
PERFORMANCE REPORT Six months to 31 December 2004 ACQUISITION - Cementation • Effective 1 July 2004 – Cementation C t ti AfAfrica i R 152 million illi att 1 1,6 6 NAV – Cementation Canada R 55 million at 1,0 NAV • South Africa Minorities – Ordinary shares 3,8% outstanding – Preference shares 36,6% o
Slide 5: Murray & Roberts Cementation
MURRAY & ROBERTS CEMENTATION Globalising Murray & Roberts
Slide 6: Acquisition - Cementation
PERFORMANCE REPORT Six months to 31 December 2004 ACQUISITION - Cementation • Integration & Consolidation Sean Flanagan – 13000 employees l + 100% – R 1,15 billion payroll + 40% • Global Raisebore Assets Retained in Group p • Mining Charter 25% empowerment • Cementation Canada via London Office Glob
Slide 7: Acquisition - Clough Limited
PERFORMANCE REPORT Six months to 31 December 2004 ACQUISITION - Clough Limited • Purchase of Shares – 21 million illi shares h N November b 2003 R 56 million illi – 120 million shares November 2004 R 380 million – 60 million shares purchased from Clough Family – 60 million illi shares h iissued dbby
Slide 8: Globalising Murray & Roberts
Globalising Murray & Roberts
Slide 9: Acquisition - Clough Limited
PERFORMANCE REPORT Six months to 31 December 2004 ACQUISITION - Clough Limited • Subscription and Shareholder Agreements – Appointment A i t t off Directors Di t Bruce and B d JJorek k – Shareholder Partnership Clough Family – Operating Joint Venture Roland Berndt • Due Diligence Findings – New Lead
Slide 10: Disposal - Unitrans Limited
PERFORMANCE REPORT Six months to 31 December 2004 DISPOSAL - Unitrans Limited • Shareholder Agreement June 2000 – Pre-emptive P ti rights i ht with ith Steinhoff St i h ff • Sale Agreement August 2004 – SRP Code Rule 19 challengeg – Transaction at 2732 cps cum dividend • Sale Effective 31 December 2
Slide 11: Disposal & Closure
PERFORMANCE REPORT Six months to 31 December 2004 DISPOSAL & CLOSURE • Booker Tate – Pension P i F Fund dddeficit fi it R 28 million illi • Pefco and Improvair – Net p profit on sale R 2 million • Consani Engineering – Decision to liquidate – Impairment I i t off R 127 million illi Globalising Murra
Slide 12: Director Appointments
PERFORMANCE REPORT Six months to 31 December 2004 DIRECTOR APPOINTMENTS • Independent Non Executive – Michael Mi h l MMcMahon M h &N Namane M Magau – Imogen Mkhize & Royden Vice • Executive Directors – Norbert Jorek & Sean Flanagan • Executive Committee – Craig C i L Lawrence, M Malose l Ch Chaba b
Slide 13: Major Projects
PERFORMANCE REPORT Six months to 31 December 2004 MAJOR PROJECTS • Current – N4 Toll Road South Africa Completion & Final Account – Dubai Airport UAE Setup, Systems & People • Pending – Gautrain South Africa Preferred Bidder April 2005 – PBMR South Africa Selected Partner March 2005 Globalising Murr
Slide 14: Interim Report 2005
PERFORMANCE REPORT INTERIM REPORT 2005 Order book and revenue have improved significantly on the previous year, but the legacy of poor project performance and ongoing strengthening of the SA Rand continue to impact the Group. Globalising Murray & Roberts
Slide 15: Order Book - 75% to 125% of Revenue
PERFORMANCE REPORT Six months to 31 December 2004 ORDER BOOK - 75% to 125% of Revenue • 30 June 2004 R 3,1 billion • 1 July 2004 R 5,0 billion incl Cementation • 30 September 2004 R 6,0 billion • 31 December 2004 R 8,5 billion incl Dubai Airport – 2006 financial year R 3,5 billion – 2007 financial y
Slide 16: Order Book - R 8,50 billion
PERFORMANCE REPORT Six months to 31 December 2004 ORDER BOOK - R 8,50 billion + 70% • Construction SADC R 1,75 billion + R 200 million • Construction ME R 3,15 billion + R 2,4 billion • Mining Contracting R 3,15 billion + R 750 million • Engineering R00,45 45 billion + R 150 million • Oil & Gas EPC*
Slide 17: Order Book - R 8,50 billion by region
PERFORMANCE REPORT Six months to 31 December 2004 ORDER BOOK - R 8,50 billion + 70% • Southern Africa R 4,50 billion + 25% • Middle East R 3,15 billion + 325% • Rest of World R 0,85 billion + 42% – Canada R 750 million – Southeast Asia R 100 million • Australasia & India* R4 4,50 50 billion + 200% *
Slide 18: Performance Report
PERFORMANCE REPORT Globalising Murray & Roberts
Slide 19: Revenue - R 5,40 billion
PERFORMANCE REPORT Six months to 31 December 2004 REVENUE - R 5,40 billion + 29% • Construction & Engineering – E&C CContracting t ti R11,95 95 billion billi + R 150 million illi – Mining Contracting R 1,30 billion + R 995 million • Materials & Services R 1,55 billion + R 120 million • Fabricate & M
Slide 20: Revenue - R 5,40 billion by region
PERFORMANCE REPORT Six months to 31 December 2004 REVENUE - R 5,40 billion + 29% • Southern Africa R 4,40 billion + 25% – S South th Af Africa i R4 4,00 00 billi billion – Rest of Africa R 400 million • Middle East R 0,55 billion + 33% • Rest of World R 0,45 billion + 275% – Canada R 300 million – S
Slide 21: Interim Report 2005
PERFORMANCE REPORT Six months to 31 December 2004 INTERIM REPORT 2005 • Operating Profit (EBIT) R 203 million + R 16 m – Interest R (9) million - R 24 m – Taxation (excl CGT) R (43) million - R 13 m – Associates/Minorities R 59 million + R 5m • Headline Earnings R 210 million - R 24 m 65 cps - 7 cps
Slide 22: Operating Profit
PERFORMANCE REPORT Six months to 31 December 2004 OPERATING PROFIT + 9% • Operating Profit (EBIT) R 203 million + R 16 m – Construction & Engineering R 68 million - R 10 m – Materials & Services R 147 million + R 12 m – Fabrication & Manufacture R 43 million + R 14 m – Corporate R (50) million - R 3
Slide 23: Financing - Working Capital
PERFORMANCE REPORT Six months to 31 December 2004 FINANCING + 160% • Working g Capital p Increase R 362 million + 190% – Contract Debtors – Problem Contracts – Stock purchases • Planned to be worked back to cash by 30 June 2005 Globalising Murray & Roberts
Slide 24: Financing - Net Investment Activity
PERFORMANCE REPORT Six months to 31 December 2004 FINANCING + 160% • Net Investment Activity y R 618 million + 660% – Businesses & Investments R 550 million – Fixed Assets (net) R 102 million – Dividends Received R (34) million • Post Balance Sheet Receipt R 900 million Unitrans Globalising Murray &
Slide 25: Taxation
PERFORMANCE REPORT Six months to 31 December 2004 TAXATION + 100% • Total R 60 million + R 30 million – Normal R 43 million + R 13 million – Deferred Asset – Capital Gains R 17 million + R 17 million • Deferred tax asset in second half-year 2004 Globalising Murray & Roberts
Slide 26: Shareholders Equity
PERFORMANCE REPORT Six months to 31 December 2004 SHAREHOLDERS EQUITY + 3% • 30 June 2004 R 2,61 , billion – Attributable Earnings R 244 million – Net Movements R (61) million – Dividends & Minorities R (113) million • 31 December 2004 R 2,68 billion Globalising Murray & Roberts
Slide 27: Year to June 2005: Annual Report 2004
PERFORMANCE REPORT Year to 30 June 2005 ANNUAL REPORT 2004 • Headline Earnings per Share – Pro forma Income Statement 143 cps • Unitrans for half year 10 cps • Taxation at 29% vs 6% (30) cps (20) cps – Benchmark Income Statement 123 cps Globalising Murray & Roberts
Slide 28: Construction Materials
CONSTRUCTION MATERIALS Globalising Murray & Roberts
Slide 29: Outlook: Interim Report 2005
PERFORMANCE OUTLOOK INTERIM REPORT 2005 Finalisation of Rebuilding Murray & Roberts remains an absolute p priority y for the Board and executive management g of the Group over the months ahead. Globalising Murray & Roberts
Slide 30: Outlook: Problem Contracts
PERFORMANCE OUTLOOK Six months to 30 June 2005 PROBLEM CONTRACTS • San Stefano Egypt gyp Completion p June 2005 • Danida Road Benin Completion June 2005 • Karonga Malawi Final Account • N3 Toll Road South Africa Dispute Conciliation • ADNOC HQ Abu Dhabi Completion May 2005 • Khalifa Stadium Qatar Co
Slide 31: San Stefano Complex
SAN STEFANO COMPLEX Globalising Murray & Roberts
Slide 32: Outlook: Problem Contracts
PERFORMANCE OUTLOOK Six months to 30 June 2005 PROBLEM CONTRACTS • San Stefano Egypt gyp Completion p June 2005 • Danida Road Benin Completion June 2005 • Karonga Malawi Final Account • N3 Toll Road South Africa Dispute Conciliation • ADNOC HQ Abu Dhabi Completion May 2005 • Khalifa Stadium Qatar Co
Slide 33: Khalifa Sports Hall
KHALIFA SPORTS HALL Globalising Murray & Roberts
Slide 34: Outlook: Operations
PERFORMANCE OUTLOOK Six months to 30 June 2005 OPERATIONS • Middle East – Finalise Fi li hi historic t i projects j t portfolio tf li – Dubai International Airport • South Africa – Redefine construction value proposition – Integration of Cementation – Unlock construction materials potential Globalis
Slide 35: Outlook: Health Safety and Environment
PERFORMANCE OUTLOOK Six months to 30 June 2005 HEALTH SAFETY AND ENVIRONMENT • Health Safety & Environment – Non N negotiable ti bl elimination li i ti off fatality f t lit countt – Focus on occupational and health hazards • Corporate p Citizenship p – Focus on maths, science and technology educatio
Slide 36: Outlook: Risk and Internal Controls
PERFORMANCE OUTLOOK Six months to 30 June 2005 RISK AND INTERNAL CONTROLS • Group Risk Framework – Approved A dbby B Boardd – Identifies major Group-level risks • Internal Controls System y – Implement procedures for compliance – Particular focus on major projects • Risk Management Capacity Globalis
Slide 37: Outlook: Commercial
PERFORMANCE OUTLOOK Six months to 30 June 2005 COMMERCIAL • Register of Projects – From F identification id tifi ti tto fifinalisation li ti – Criteria for “Go/no-go” decision at each hurdle point • Register g of External Services – Match requirement with competence – Ensure learning across all sect
Slide 38: Outlook: Governance & Compliance
PERFORMANCE OUTLOOK Six months to 30 June 2005 GOVERNANCE & COMPLIANCE • Murray & Roberts Holdings – Finalise Fi li di director t iinduction d ti programme – Procedure for external advice • Operating p g Companies p – Director training programme – Improve statutory structures • Guideline for Investo
Slide 39: Outlook: Market Engagement
PERFORMANCE OUTLOOK Six months to 30 June 2005 MARKET ENGAGEMENT • Focus on Design Build Opportunities – Leverage L core competence t in i IIndustrial d ti lE Engineering i i • Cooperation for Value – Redefine SADC value p proposition p through g empowerment p – International major projects through
Slide 40: Outlook: Empowerment
PERFORMANCE OUTLOOK Six months to 30 June 2005 EMPOWERMENT • Murray & Roberts Cementation – AKA Capital C it l – 25% Equity • Construction Materials – Empowerment Consortium – 25% Equity • Development Partnership in Construction Globalising Murray & Roberts
Slide 41: Outlook: Clough Oil & Gas
PERFORMANCE OUTLOOK Six months to 30 June 2005 CLOUGH OIL & GAS • Shareholder Partnership – Create C t shareholder h h ld value l with ith Clough Cl hFFamily il – Share acquisition though “creep” provision • Executive Partnership p – Support restructuring and new market development – Clough Murray &
Slide 42: Globalising Murray & Roberts
Globalising Murray & Roberts
Slide 43: Outlook: Prospects Statement
PERFORMANCE OUTLOOK Six months to 30 June 2005 PROSPECTS STATEMENT “Taking g into account the liquidation q of Consani,, the unexpected p reversal on the project in Qatar, the restructuring of aspects of the business in terms of the Group’s empowerment initiatives, the dilutive impact of the Unitran
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