Murray & Roberts — dbAccess South Africa Conference 2014
26 slides from Murray & Roberts's conference presentation, Jun 19, 2014
Slide 1: dbAccess South Africa Conference
dbACESSS SOUTH AFRICA CONFERENCE 18 & 19 JUNE 2014 ENGINEERED EXCELLENCE
Slide 2: Safety, Recovery & Growth, Financial Performance, Outlook
Recovery & Financial Safety Outlook Growth Performance Major Claims Engineered A New Strategic Platform Update Update Excellence Future ENGINEERED EXCELLENCE 2
Slide 3: Together to Zero Harm
TOGETHER TO ZERO HARM Fatalities LTIFR1 Regrettably, two 18 5.00 fatalities recorded in 4.65 H1 FY2014 16 4.50 LTIFR of 0.82 14 4.00 Visible Felt Leadership 3.05 Launch of Group-wide 3.50 12 Philisa Health and 2.86 3.00 2.44 Wellness Programme 10 2.50 8 2.07 2.00 6 1.28 1.50 1.14 4 0.85 0.82 1.00 2
Slide 4: The Recovery Year – FY2012
THE RECOVERY YEAR – FY2012 During the Recovery Year Murray & Roberts has defined its position in the market with a ‘Family Portrait’ Key Focus Areas 1 Re-organise & Re-energise Strengthen operational leadership & Murray & Roberts Family Portrait operational focus A Group of world class companies and
Slide 5: The Two Growth Years - FY2013/14
THE TWO GROWTH YEARS - FY2013/14 Solid Achievements But Value Not Yet Reflected In Share Price Enhance shareholder value – rerating and growth beyond Resume dividend payments Selective market segment re-positioning in support of long term growth objective Increase offshore revenue base in support of
Slide 6: Significant Corporate Activity
SIGNIFICANT CORPORATE ACTIVITY The Recovery Year The Two Growth Years Disposal of Clough Clough’s 36% becomes a Debt package investment in wholly-owned Forge subsidiary R4bn R1.8bn R4.4bn Up to Mar Oct Mar 2012 2013 2014 Nov Mar Dec 2011 2013 2013 Proceeds from Disposal of Rights Issue disposal of c
Slide 7: Family Portrait at the End of the Recovery & Growth Phase
FAMILY PORTRAIT AT THE END OF THE RECOVERY & GROWTH PHASE A Group of world class companies and brands aligned to the same purpose and vision, and guided by the same set of values with a common owner, Murray & Roberts Holdings Ltd Stop.Think.Act.24/7: Safety first in everything we do Regional Operati
Slide 8: H1 FY2014
H1 FY2014 Revenue EBIT (Before Corporate and Clough Transaction Costs) 16% 20% 6% 50% 12% 12% 66% 18% Construction Australasia Oil & Gas and Minerals Construction Global Underground Mining Engineering Africa Construction Africa and Middle East ENGINEERED EXCELLENCE 8
Slide 9: Two Different Halves
TWO DIFFERENT HALVES Financial Year 2013 Financial Year 2014 Attributable income • Inclusive of six month’s Attributable income • No contribution from Forge associate Forge income • 62% of Clough investment (R67m) Half 1 • 62% of Clough investment Continuing HEPS • Inclusive of six month’s Continuin
Slide 10: Profitable Growth Maintained
PROFITABLE GROWTH MAINTAINED Rm Attributable earnings by Half Year Cents Forge Income 1 000 175 300 175 160 181 FY2013 – H1 six 64 200 500 111 392 463 months; H2 three 545 83 100 465 350 261 months and profit on 0 (23) 72 20 179 (314) (228) 0 sale (600) (100) (500) (322) (895) (53) Clough Income (16
Slide 11: Robust Order Book: H1 FY2014
ROBUST ORDER BOOK : H1 FY2014 Order book % split Order book(1) Order book Rbn Rbn FY Time Distribution SADC Int. Dec 2013 Jun 2013 2014 3.1 Construction Africa 80 20 8.6 8.7 2015 4.5 and Middle East Regional >2015 1.0 2014 2.0 Engineering 100 0 6.2 6.5 2015 2.1 Africa >2015 2.1 2014 2.6 Construction
Slide 12: Order Book and Market Prospects
Order book % split Order book(1) Medium-to long Market % EBIT Rbn term relative % prospects margin SADC Int. Dec 2013 Jun 2013 EBIT contribution aspiration Construction Africa 80 20 8.6 8.7 ±5 < 5.0 and Middle East Regional Engineering 100 0 6.2 6.5 ±15 5.0 - 7.5 Africa Construction Global 50 100 50
Slide 13: Platform Outlook
• Improved profit in H1 - market highly competitive with low margins • Middle East secured first project award in more than two years Construction Africa • Continue to derive value and build delivery reputation from operational excellence • Engage identified upstream and downstream elements of value
Slide 14: Recovery & Growth
102 Rivonia Road, Johannesburg Recovery & Growth
Slide 15: Recovery & Growth
Portside, Cape Town Recovery & Growth
Slide 16: Recovery & Growth
Baywest Mall, Port Elizabeth Recovery & Growth
Slide 17: Recovery & Growth
NAAN3 Ammonium Nitrate plant, Western Australia Recovery & Growth
Slide 18: Recovery & Growth
Venetia Diamond Mine, Limpopo Province Recovery & Growth
Slide 19: Recovery & Growth
Venetia Diamond Mine, Limpopo Province Recovery & Growth
Slide 20: Recovery & Growth
Venetia Diamond Mine, Limpopo Province Recovery & Growth
Slide 21: Recovery & Growth
Picadilly Mine, Sussex, New Brunswick Recovery & Growth
Slide 22: Recovery & Growth
Hoyle Pond, Timmins, Ontario Recovery & Growth
Slide 23: Complex and Protracted Process
COMPLEX AND PROTRACTED PROCESS GPMOF Gautrain Rapid Rail Link Dubai International Airport Financial settlement Delay & Disruption Respondent to claim reached with Boskalis • Commercial Closeout – determined. Arbitration Australia 2016 continuing Negotiated settlement Water Ingress Considering an on
Slide 24: Recovery & Growth to Engineered Excellence
Recovery & Engineered Growth Excellence • Regain SA market leadership • Maximize shareholder value • Re-organise & Re-energise • Focus on natural resources • Improve liquidity & resume dividends • Diversify business model • Realign Murray & Roberts • Enhance market valuation & positioning • Develop
Slide 25: Project Value Chain
PROJECT ENGINEERING, PROCUREMENT AND CONSTRUCTION OPERATING PLATFORMS Underground Power & Civil MARKET SEGMENT Water Oil & Gas Mining Industrial Infrastructure Selected Selected Selected Selected Selected GEOGRAPHY International International International African African Markets Markets Markets Mar
Slide 26: dbAccess South Africa Conference
dbACESSS SOUTH AFRICA CONFERENCE 18 & 19 JUNE 2014 ENGINEERED EXCELLENCE
Murray & Roberts Holdings — dbAccess South Africa Conference 2014 on 6ix