Murray & Roberts — FY2010 Earnings Presentation
47 slides from Murray & Roberts's earnings presentation, 2010
Slide 1: Report to Stakeholders - Financial Year to 30 June 2010
REPORT TO STAKEHOLDERS FINANCIAL YEAR TO 30 JUNE 2010
Slide 2: South Africa's Leading Construction & Engineering Group
SOUTH AFRICA’s LEADING CONSTRUCTION & ENGINEERING GROUP
Slide 3: Cementation Group
CEMENTATION GROUP San Jose Mine Rescue
Slide 4: Years of Major Projects: Pelindaba Nuclear Research Facility
Murray 108 YEARS OF MAJOR PROJECTS &Roberts Pelindaba Nuclear Research Facility Fifty years agoon 17 June 1960 Roberts Constucton signed a contractin the USA to design and build a uranium enrichment faciliy outside Pretona, which included South Africa’s firstnuclear reactor (6,67 MWe). In modem tenn
Slide 5: Murray
Murray &Roberts “Murray & Roberts signed the [Carlton] contract at R39 million (2010: R3,5 billion) butthe contract conditions made inadequate provision for escalation and eventually a substantial loss was incurred. However, much was leamed from the contract. In Mr Skeen’s words, “on such highly sop
Slide 6: Major Projects
, MAJOR PROJECTS &Roberts Dubai Intemational Airport Gautrain Rapid Rail Link Eskom Power Program — eo __ Read more on our major projects in the current Robust Magazine
Slide 7: Major Projects: Habtoor Murray & Roberts Takenaka JV
MAJOR PROJECTS Habtoor Murray & Roberts Takenaka Joint Venture (HMRT) Share of Joint Venture 40% Original Contract Value* AED 3600 million Orginal Contract Completion 2007 December Revised Contract Completion 2008 October Revised Contract Value* AED 5500 million Final Account Settiement in Amicable
Slide 8: Major Projects: Bombela Consortium
MAJOR PROJECTS Bombardier Murray & Roberts Bouygues &SPG Consortium (Bombela) Share of Joint Venture 45,0% Civil Contractor 27 5% Operator & Maintainer 25,0% Concessionaire Estimate Costto Complete* R 11 500 million Orginal Price @ February 2002 + R 2125million Variations, Escalation & Risk + R 1375
Slide 9: Major Projects: Medupi and Kusile
MAJOR PROJECTS Murray & Roberts Projects Genrec and Energy Fabrication (Consortium) Project Total Value* Projects* Genrec* Energy Fab* Medupi* R $450 million R5350 R2800 R1200 Kusile* R_ 8300 million R4550 R2700 R1050 TOTAL* R 17 750 million R9900 R5500 R2250 Energy Fabrication Manufacture of Ductin
Slide 10: Major Projects: Gautrain Rapid Rail Link
y MAJOR PROJECTS rts Gautrain Rapid Rail Link 2000 February Project announced 2001 June Bombela Consortium formed 2002 April Request for Qualification submitted 2002 May Bombela announced as 1 of 2 Bidders 2003 September Request for Proposal 1 submitted 2004 July 2010 FIFA World Cup South Africa ann
Slide 11: Committed to Zero Harm
Murray &Roberts © 10 fatalities in 10 weeks » 8 Cementation RSA » 2 Construction SADC © Asafety tipping point © Safety Stand Down © DuPont Sustainable Solutions Allinjuries and occupational illnesses can be prevented COMMITTED TO ZERO HARM STOP.THINK!
Slide 12: Committed to Zero Harm
COMMITTED TO ZERO HARM 2010 LTIFR 220 287 FIFR 0,05 0,05 Hours Worked = 181 million 196 million F¥20090 FY¥2010, ve
Slide 13: Global Diversity
GLOBAL DIVERSITY a Roberts Revenue Southem Africa 67% 33% Intemational 100% (Sy Construction 0% 95% | Engineering [ 5% 29% [yy Construction Products | 1% 67% Cementation Group [| 33% 0% Middle East PI} 100% 0% Clough PI 100%
Slide 14: Revenue Trend
R14,7bp - ~~ O1sthalf @ 2nd half REVENUE TREND Half Year Analysis 2010
Slide 15: Salient Points
SALIENT POINTS Murray & Roberts Order book R42 billion +5% Revenues R32 billion 2% Operating profit R1,8 billion 36% Diluted HEPS 340 cents 50% -
Slide 16: Salient Points
SALIENT POINTS Murray &Roberts Target Operating margin 5,6% Operating margin (excluding Gautrain charge) T,5% 5,0-7,5% Retum on average equity 18,6% >20,0% Operating cash flow R691 million Total dividend 105 cents per share Cover 2,8-3,2x
Slide 17: Opportunity Pipeline
OPPORTUNITY PIPELINE R71,2bn (R9,6bn) R97 Abn [ - i Opening Cancelled Lost/(Deciined Convertedto Changein NewProspects Closing Balance 1 July Order Book Scope/Forex Balance 30 2009 Adjustment June 2010 oe __ aan
Slide 18: Order Book Development
a ORDER BOOK DEVELOPMENT R42b R40bn R24bn n R2bn FS {R24bn) Order Book Change New Orders Order Book 30 Jun 09 Hala in Scope 30 Jun 10 oe __
Slide 19: Order Book
y ORDER BOOK rts R42 billion Cluster distribution Geographic distribution 8% Clough 6% Australasia 16% 18% o 2009 @ 2010
Slide 20: Order Book: Time Distribution
ORDER BOOK R42 billion Time distribution Z 2011 R13bn 2012
Slide 21: Balance Sheet
BALANCE SHEET y rts a Total assets 21 952 23 493 Cash 3811 4663 Current 11976 12572 Fixed 6165 6258 Total equity and liabilities 21 952 23 493 Shareholders equity 7177 6634 Interestbearing liabilities — short term 1845 2694 — long term 1529 784 Non-interestbearing liabilities 11401 13381 eo _
Slide 22: Income Statement
a INCOME STATEMENT rts Revenue 31 962 32 684 EBITDA 2449 3512 Operating profit (EBIT) 1775 2766 Exceptional items 101 8 Netinterest {193) {20) Taxation {470) (612) Income from associates 14 2 Discontinued operations & minority interests {129) {126) Attributable eamings 1098 2018 Operating margin exc
Slide 23: Segmental Analysis
SEGMENTAL ANALYSIS Murray &Roberts Revenues Operating Profit Re abn [I Constrction* | E e522 R1,9bn [| Engineering [ ] R112m R7AbnE) Construction Products | (SSS R611m R5,4bn | Cementation Group SS R447m R2,9bn [I Middle East HH R300m Clough Hy em * Excluding Gautrain charge @, g
Slide 24: Green Point Stadium Cape Town
Green Point Stadium Cape Town oe
Slide 25: Construction SADC
y CONSTRUCTION SADC rts Margin 8,6% Revenue (Rbn) Operating profit(Rm) 582* 515 2008 2009 2010 2008 2009 2010 SALIENT POINTS © Order Book R6,5bn (June 2009: R6,6bn) @ Capex R252m (2009: R229m) © Successful completion of Green Point Stadium © Strong performance from Concor al * Excluding Gautrain cha
Slide 26: Medupi Power Station
Medupi Power Station = = _— 7
Slide 27: Engineering SADC
y ENGINEERING SADC rts Margin 5,9% Revenue (Rbn) Operating profit(Rm) 447 112 42 2008 2009 2010 2008 2009 2010 SALIENT POINTS © Order Book R16,5bn (June 2009: R18,5bn) © Capex R210m (2009: R298m) © Medupi and Kusile © Reversal in Wade Walker oe __
Slide 28: Much Asphalt Environmental Capex + Laos ’ er
2 Much Asphalt Environmental Capex 7 + Laos ’ er . B ¢'
Slide 29: Construction Products SADC
CONSTRUCTION PRODUCTS SADC Margin 8,7% Revenue (Rbn) Operating profit(Rm) 762 675 6,2 611 2008 2009 2010 2008 2009 2010 SALIENT POINTS © Order Book R95m (June 2009: R146m) © Capex R218m (2009: R459m) © Strong performance from Much Asphalt © Steel at break even oe __
Slide 30: World Trade Centre Towers Bahrain
Fe bd kwh, World Trade Centre Towers Bahrain Ge am
Slide 31: Middle East
MIDDLE EAST Margin 10,4% Revenue (Rbn) Operating profit(Rm) 3,6 350 300 2008 2009 2010 2008 2009 2010 SALIENT POINTS © Order Book R4,4bn (June 2009: R4,2bn) © Forex translation impact © Sorbonne University in Abu Dhabi © Kingdom of Saudi Arabia oe __
Slide 32: Shaft Sinking Headgear
| ey ES pies | ! santa ‘ Shaft Sinking Headgear \ ff
Slide 33: Cementation Group
Revenue (Rbn) 2008 2009 2010 SALIENT POINTS © Order Book R7,0bn (June 2009: R5,9bn) © Capex R193m (2009: R283m) © Strong performance in South Africa © Safety in South Africa CEMENTATION GROUP Margin 8,4% Operating profit(Rm) 495 428 447 2008 2009 2010 oe __
Slide 34: Gorgon Project West Australia
Gorgon Project West Austra
Slide 35: Clough Limited
CLOUGH LIMITED Margin 6,8% Revenue (Rbn) Operating profit(Rm) 394 342 320 2008 2008 2010 2008 2009 2010 SALIENT POINTS © Order Book R6,7bn (June 2009: R2,5bn) © Capex R123m (2009: R589m) © Gorgon and PNG Projects © Forge acquisition oe __
Slide 36: Gautrain Station OR Tambo International
bral Gautrain Station OR Tambo Intemational
Slide 37: Cash and Borrowings
mz CASH AND BORROWINGS 2009 Dec 2009 2010 GCash @Shorttem bormowings
Slide 38: Capex & Working Capital
R1,3bn O Capex CAPEX & WORKING CAPITAL (R1),3bn) {R3,6bn) 2009 @ Working capital 2010 Cash Outflow
Slide 39: Consolidated Cash Flow
CONSOLIDATED CASH FLOW (R931m) —— [| (R707m) ms .. BE wen R2,9bn R669m R2.6bn June 2009 Operating Financing Working InterestTax Dividends Investing Disposalof June 2010 cash flow Activities Capital and forex paid Activities business oe __
Slide 40: F gt EE B
F gt EE B 8
Slide 41: Corporate Citizenship
Murray & Roberts Letsema Bokamoso General Staff Trust Letsema Khanyisa Black Employee Benefit Trust Letsema Vulindlela Black Executive Trust Letsema Sizwe Broad- Based Community Trust CORPORATE CITIZENSHIP Corporate Social Investment R29,5m in dividends to 14,125 employees R51 ,3m in dividends forbu
Slide 42: Market Outlook
ey MARKET OUTLOOK &Roberts The Construction Economy The Construction Economy conventionally lags atboth the frontand back end of general economic activity. However, many South African contractors including Murray & Roberts have been shielded in the short+emn by the intensity of activity required to
Slide 43: Prospects
y PROSPECTS rts The Group expects good growth in the year ahead, coming off the low base caused by the Gautrain charge to the Statement of Financial Performance. The level of this growth will depend on order book development, particularly in South Africa, settlement of major project final accounts,
Slide 44: ‘Whales pore
‘Whales pore http: muuuuinirent, TT ntact Us | Company Directory | Sitemap | Terms and Conditions Murray THE HALLMARK OF EXPERIENCE & SKILL ances &Roberts 108 YEARS: 1902 to 2010 HOME ABOUTUS CAPABILITIES SUSTAINABILITY INVESTORS NEWS PROJECTPORTFOLIO CAREERS CONTACTS MURRAY & ROBERTS AT Post a quer
Slide 45: Disclaimer
DISCLAIMER We may make statements that are not historical facts and relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable. These are forward-ooking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995
Slide 46: Thank you
Thank you
Slide 47: Report to Stakeholders - Financial Year to June 2010
REPORT TO STAKEHOLDERS FINANCIAL YEAR TO 30 JUNE 2010
Murray & Roberts Holdings — FY2010 Earnings Presentation on 6ix