Murray & Roberts Holdings Ltd

Murray & Roberts — Investor Presentation (June 2015)

29 slides from Murray & Roberts's investor presentation, Jun 29, 2015

  1. Slide 1: Underground Mining Platform Investor Presentation

    UNDERGROUND MINING PLATFORM Investor Presentation Orrie Fenn 29 June 2015 ENGINEERED EXCELLENCE

  2. Slide 2: Structure & Service Offering, Safety, Organisational Context

    • Structure & Service Offering • Safety • Organisational Context - Client Base, Contracting Arrangements, Commodity Split, Project Highlights • Market Context 222 • Prospects • High Level Strategy - Growth & Operational Excellence Oyu Tolgoi Oyu Tolgoi Freeport © Murray & Roberts 2015 | 2 ENGINEERED

  3. Slide 3: Structure and service offering of the platform entities

    M&R RUC Cementation (CSA) Cementation Cementation Canada MRC RUCC CCI* Specialist Engineering (concept to final design) - Platform complement 140 (107 in 2014) Service Mine Development: Shaft sinking, raise boring, underground development & equipping Offering Contract Mining • Africa’s leading under

  4. Slide 4: Current/recent projects, tendering projects and offices

    Sudbury Rouyn-Noranda North Bay Salt Lake City Hong Kong Accra Kitwe Kalgoorlie Santiago Johannesburg Perth Current/recent projects Tendering projects Offices © Murray & Roberts 2015 | 4 ENGINEERED EXCELLENCE

  5. Slide 5: Platform's shaft sinking credentials

    • 22 shaft projects underway globally including: - Zambia: Mufulira, Synclinorium. RSA: Venetia (2), Impumelelo (2), Cullinan (2), Gloria. Australasia: Lady Loretta (2), Freeport. USA: Resolution, Pumkin Hollow. Canada: Hoyle Pond, Young Davidson, Goderich (2) • Shaft engineering, feasibility, & des

  6. Slide 6: ENGINEERED EXCELLENCE

    © Murray & Roberts 2015 | 6 ENGINEERED EXCELLENCE

  7. Slide 7: ENGINEERED EXCELLENCE

    © Murray & Roberts 2015 | 7 ENGINEERED EXCELLENCE

  8. Slide 8: Structure & Service Offering, Safety, Organisational Context

    • Structure & Service Offering • Safety • Organisational Context - Client Base, Contracting Arrangements, Commodity Split, Project Highlights • Market Context 222 • Prospects • High Level Strategy - Growth & Operational Excellence © Murray & Roberts 2015 | 8 ENGINEERED EXCELLENCE

  9. Slide 9: Platform's mantra: We Build Mines - Safely

    • Platform’s mantra: “We Build Mines - Safely” • Fully support M&R’s Group’s HSE Framework & Stop.Think. Act 24/7 - Increasing focus on Lead Indicators • Platform TRCR & TIFR below targets (LTIFR = 1.7 in February the lowest ever) - RUCC & CC 23 & 13 months LTI-free respectively: Thompson Shop (Mani

  10. Slide 10: Organisational Context

    • Structure & Service Offering • Safety • Organisational Context - Client Base, Contracting Arrangements, Commodity Split, Project Split & Highlights • Market Context 222 • Prospects • High Level Strategy - Growth & Operational Excellence © Murray & Roberts 2015 | 10 ENGINEERED EXCELLENCE 2

  11. Slide 11: Relationships with top tier clients

    RELATIONSHIPS WITH TOP TIER CLIENTS Kennecott (USA) – 4* Freeport Grasberg Diavik (Canada) - 6 (Indonesia) - 5 STRATEGY TO DEVELOP LIFE-OF-MINE Resolution (USA) - 9 Oyu Tolgoi (Mongolia) - 4 Totten (Canada) - 9 Wessels (RSA) - 5 Lubambe (Zambia) - 5 Kutala (RSA) - 4 Resolution (USA) - 9 South Deep (

  12. Slide 12: Contractor risk and contract type

    CONTRACTOR RISK CLIENT RISK Cost Reimbursable Lump Sum Cost Plus % + Fee Target Cost Rates Turnkey CONTRACT TYPE RUCC Cementation USA Cementation Canada M&R Cementation Bubble size represents relative Order Book © Murray & Roberts 2015 | 12 ENGINEERED EXCELLENCE

  13. Slide 13: Commodity split by entity

    100% Other Silver 80% Salt Platinum 60% Nickel/Copper Manganese 40% Gold Diamonds Copper/Gold 20% Copper Coal 0% RUCC Americas Africa Total © Murray & Roberts 2015 | 13 ENGINEERED EXCELLENCE

  14. Slide 14: Saracen Minerals acknowledgement of RUCC

    222 * Kalgoorlie Miner – May 2015 March 2015 ASX Announcement: Saracen Mineral’s acknowledged & thanked RUCC specifically “for their excellent performance since the Karari project commenced in November 2014” © Murray & Roberts 2015 | 14 ENGINEERED EXCELLENCE

  15. Slide 15: Compass Minerals client testimonial

    “CC presented a very good proposal & organization to Compass Minerals, & bring the expertise, resources, & experience necessary to ensure success on such a challenging project. We look forward to actively collaborating with them to make this project a true example of a win-win initiative.” – Directo

  16. Slide 16: Client testimonial on contract mining adjudication

    222 *Mining Review Africa – May 2015 “Our contract mining adjudication process was based on certain criteria. MRC was not necessarily the cheapest contractor, but it had & still has vast experience in mechanised mining. This was critical to our decision making process.” – GM Willie Theron © Murray &

  17. Slide 17: Market Context

    • Structure & Service Offering • Safety • Organisational Context - Client Base, Contracting Arrangements, Commodity Split, Project Split & Highlights • Market Context • Prospects • High Level Strategy - Growth & Operational Excellence © Murray & Roberts 2015 | 17 ENGINEERED EXCELLENCE 2 27

  18. Slide 18: Market context: commodity cycle and demand

    • World economy picking up – will drive commodity demand - Driven by India & China • Mining is a cyclical business – deep troughs & high peaks? - Where are we in the cycle? • Commodity cycle upturn expected in the medium term on back of increased prices & supply/demand dynamics - Supply deficits in

  19. Slide 19: Prospects

    • Structure & Service Offering • Safety • Organisational Context - Client Base, Contracting Arrangements, Commodity Split, Project Split & Highlights • Market Context • Prospects • High Level Strategy - Growth & Operational Excellence © Murray & Roberts 2015 | 19 ENGINEERED EXCELLENCE 2

  20. Slide 20: Demand still underpinned by brownfield projects

    DEMAND STILL UNDERPINNED BY BROWNFIELD PROJECTS 100% 80% 60% 40% 20% 0% RUCC Americas Africa Total Green Fields Brown Fields Planning & Commissioning Development Construction Operations Engineering & Maintenance (2%) (56%) (1%) (41%) Kalagadi award has a significant impact on project split & value c

  21. Slide 21: Platform order book largely from infrastructure replacement work

    LARGELY FROM INFRASTRUCTURE REPLACEMENT WORK Platform Order Book (Rbn) Jun 2014 Dec 2014 Jun 2015 9.9 13.8 16.4 Entity Order Book (Rbn) MRC CCI RUCC 11.9 3.4 1.1 • Kalagadi, Goderich & Freeport Ground Support contracts awarded in FY15 Q4 • Platform expected to achieve better margins for FY15 H2 & go

  22. Slide 22: Order book opportunities by entity

    • Order book opportunities MRC - South Africa: Venetia, EPL2 - Africa: Mopani Copper (Zambia), Subika (Ghana), Khomaceau (Botswana), Komoto (DRC), Geita (Tanzania) • Signs of market improvement in Canada with first raise boring project in Quebec, & increase in engineering workload • Increasing Europ

  23. Slide 23: High Level Strategy

    • Structure & Service Offering • Safety • Organisational Context - Client Base, Contracting Arrangements, Commodity Split, Project Split & Highlights • Market Context 222 • Prospects • High Level Strategy - Growth & Operational Excellence © Murray & Roberts 2015 | 23 ENGINEERED EXCELLENCE 2

  24. Slide 24: Operational excellence remains a key focus area

    OPERATIONAL EXCELLENCE REMAINS A KEY FOCUS AREA • Refine & drive focussed African strategy OPERATIONAL EXCELLENCE AND MRC - Leverage Group’s African regional hub & spoke structure GREATER BUSINESS UNIT (Organic) • Enhance trackless mechanised mining skills • Increase North America market penetration

  25. Slide 25: CCI bolt-on acquisitions and CemAG services group

     CCI currently exploring several potential bolt-on project management or engineering- led acquisition opportunities in Canada & the USA  It has established a new services group, CemAG which leverages CCI’s brand & references the ‘Above Ground’ focus of the group  Operating out of CUSA’s Salt Lake

  26. Slide 26: Getting all platform halves firing on all cylinders

    A MIRROR IMAGE OF WHAT IT WAS IN 2011/2012 Mine Development Raise Boring • 77% revenue • 23% revenue • Increased scope at Freeport • Margin squeeze by competitors • Further awards at Karari • Only 18% raise borer fleet • Strong 2016 performance utilization projected • 2016 looks more promising RSA Z

  27. Slide 27: Team members delivering the platform's bottom line

    Some of the 7500 Team Members responsible for delivering the Underground Mining Platform’s bottom line © Murray & Roberts 2015 | 27 ENGINEERED EXCELLENCE

  28. Slide 28: 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

  29. Slide 29: Underground Mining Platform

    UNDERGROUND MINING PLATFORM Investor Presentation 29 June 2015 This presentation is available on http://www.murrob.com/fin_presentations.asp ENGINEERED EXCELLENCE

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