Murray & Roberts — Investor Presentation (November 2008)
32 slides from Murray & Roberts's investor presentation, November 2008
Slide 1: Develop and Deliver! The Way we See the Problem is Often the Problem
Develop and Deliver ! The Way we See the Problem is Often the Problem Commentary on the Business Update published 2008/11/25
Slide 2: No Basis for Surprise
“The global financial crisis has continued to worsen and the construction sector has been severely downgraded by the investment market on fears of recession and depleted future work opportunity opportunity.” JSE: MUR No Basis for Surprise
Slide 3: International Investors Are Not Leaving
INTERNATIONAL INVESTORS ARE NOT LEAVING MUR Share Register - 331,9 million shares in issue Date Price Shares Traded % International 30/06 8700 390 0 million 390,0 118% 44% +32% 30/09 9600 103,6 million 31% 43% + 10% 31/10 6600 77,0 million 23% 44% (June 2007) - 30% 26/11 4600 61 5 million 61,5 illi
Slide 4: Was already 60% down from peak in 1929
“The Dow Jones Industrial Index fell 15,7% in the two weeks ended November 21, 1931, a further 20% in the remaining five weeks of the year and bottomed out a further 47% down on July 8, 8 1931. 1931 ” JSE: MUR Was already 60% down from peak in 1929
Slide 5: 2009 Prospects
“The directors have reviewed the Group’s consolidated results for the first quarter to 30 September 2008 and first budget assessment for the year … and maintain the market guidance for the financial year to 30 June 2009. 2009 ” 2009 Prospects • Revenues up 30% to 40% – Construction & Engineering ± 4
Slide 6: Solving Problems needs New Levels of Thinking
“Shareholders are cautioned to be prudent with this guidance as the potential impact of current market volatility may manifest itself on construction sector and Group performance in the future future.” Solving Problems needs New Levels of Thinking
Slide 7: While South African and Regional leaders pander to Mugabe
“The human tragedy that is Zimbabwe plays out unseen and unheard across our border as its population of 10 million Human Beings and Africans is systematically degraded to a state of depressed survivalism survivalism.” While South African and Regional leaders pander to Mugabe i Sandton in S d I recen
Slide 8: Focus on the Construction Economy
“The directors have approved a comprehensive organisational change ….. that will sharpen operational and business development focus across all domestic and international operations. operations ” Focus on the Construction Economy Serving the Development Needs of E Emerging i SSocieties i ti and dNNat
Slide 9: Unitary Murray & Roberts
UNITARY MURRAY & ROBERTS We are Engineers and We are Contractors
Slide 10: Global Benchmark
GLOBAL BENCHMARK We strive for World Class Fulfillment in everything y g we do
Slide 11: Global Identity
GLOBAL IDENTITY We are Murray & Roberts and We are South African
Slide 12: Global Signature
GLOBAL SIGNATURE Our core competence is Industrial Design and Engineering
Slide 13: Global Promise
GLOBAL PROMISE Our non-negotiable commitment to sustainable earnings growth and value creation
Slide 14: Pre-emptive and Immediate Action Response
“Cash flow constraint in a few clients has resulted in the suspension of or delay to some projects in each of the Group’s markets, which are fully accounted in the Group’s Group s current performance review. review ” Pre-emptive and Immediate Action Response • Eliminate surplus Cost and Waste • Reor
Slide 15: National Public Works Program
NATIONAL PUBLIC WORKS PROGRAM Builds Economic Infrastructure Accelerated and Shared Growth Initiative for South Africa Employment Intensive Skills Development Industry Localisation POWER & ENERGY TRANSPORT & LOGISTICS WATER & SANITATION HEALTH, EDUCATION & RECREATION An Economic Imperative in Diffic
Slide 16: National Public Works Program
The recent Mid-Term Budget Framework presented by the Minister of Finance included the following important statements for Murray & Roberts and the Construction Economy Economy. • “Stronger cooperation between government and the private sector and raising our level of investment in economic infrastru
Slide 17: The Challenge of Major Projects
“The current executive management team has committed to implement these changes and to continue leading the Group through the current market turmoil turmoil.” The Challenge of Major Projects Capacity to Deliver off a Formidable Performance Platform
Slide 18: Middle East Services Construction
Middle East Dubai Abu Dhabi Bahrain Construction Services Botswana Johnson Arabia Sama Namibia Concessions Cape Property C Concor Fabrication Engineering & Manufacture Engineering Solutions Genrec MEI Hall Longmore Marine UCW Corporate Wade Walker Materials Mining Rocla Africa Much Canada Ocon Austr
Slide 19: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Services Botswana Johnson Arabia Sama Namibia Concessions Cape Property Concor Fabrication & Manufacture Genrec Projects Hall Longmore UCW Corporate M t i l Materials E i Engineering i Rocla Engineering Solutions Much MEI Ocon Marine Technicrete Wade
Slide 20: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Services Botswana Johnson Arabia Sama Namibia Concessions Cape Property Concor Fabrication Projects & Manufacture Gautrain Genrec Green Point Hall Longmore Medupi UCW Sean Flanagan Kusile Corporate M t i l Materials E i Engineering i Rocla Engineering
Slide 21: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Services Botswana Johnson Arabia Sama Namibia Concessions Cape Property Concor Fabrication Keith Smith Projects & Manufacture Gautrain Genrec Green Point Hall Longmore Medupi UCW Sean Flanagan Kusile Corporate M t i l Materials Malose Chaba Engineerin
Slide 22: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Services Botswana Johnson Arabia Sama Namibia Concessions Cape Property Concor Nigel Harvey Fabrication Keith Smith Projects & Manufacture Gautrain Genrec Green Point Hall Longmore Medupi UCW Sean Flanagan Kusile Corporate M t i l Materials Malose Cha
Slide 23: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Services Botswana Johnson Arabia Sama Namibia Concessions Cape Property Concor Nigel Harvey Fabrication Keith Smith Projects & Manufacture Gautrain Genrec Green Point Hall Longmore Medupi UCW Sean Flanagan Kusile Corporate M t i l Materials Malose Cha
Slide 24: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Botswana Sama Services Namibia Cape Concor Nigel Harvey Fabrication Keith Smith Projects & Manufacture Greenpoint Genrec Gautrain Hall Longmore Medupi UCW Sean Flanagan Kusile Corporate Concessions Property M t i l Materials Malose Chaba Engineering R
Slide 25: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Botswana Manufacture Sama Namibia UCW Cape Concor Nigel Harvey Keith Smith Projects Fabrication Greenpoint Genrec Gautrain Energy Fabrication Medupi Hall Longmore Andrew Langham Sean Flanagan Kusile Corporate Concessions Property M t i l Materials And
Slide 26: Corporate
Middle East Dubai Abu Dhabi Bahrain Construction Botswana Manufacture Sama Namibia UCW Cape Concor Nigel Harvey Keith Smith Projects Fabrication Greenpoint Genrec Gautrain Energy Fabrication Medupi Hall Longmore Andrew Langham Sean Flanagan Kusile Corporate Concessions Property M t i l Materials And
Slide 27: Slide 27
Slide 28: Project order book provides a solid performance foundation
The Group’s substantial project order book provides a solid performance foundation for the period up to 2012 and beyond. R 61 billion at 30 September 2008
Slide 29: Public works and strategic opportunities in the project pipeline
“There are a number of …… public works and other strategic opportunities in the Group’s domestic and international project pipeline that are likely to proceed and will provide stability through the difficult times ahead. ahead ” Average R 42 billion 2008 to 2011 ?
Slide 30: Revenue R'bn: worst case scenario
“There are a number of …… public works and other strategic opportunities in the Group’s domestic and international project pipeline that are likely to proceed and will provide stability through the difficult times ahead. ahead ” 70 worst case scenario 60 + R 65 billion to be secured over 3,5 yrs 50
Slide 31: Revenue R'bn: possible scenario
“There are a number of …… public works and other strategic opportunities in the Group’s domestic and international project pipeline that are likely to proceed and will provide stability through the difficult times ahead. ahead ” 70 60 Possible scenario + R 95 billion to be secured over 3,5 yrs e R'b
Slide 32: Good Luck
Good Luck www.murrob.com &
Murray & Roberts Holdings — Investor Presentation (November 2008) on 6ix