Murray & Roberts Holdings Ltd

Murray & Roberts — FY2014 Earnings Presentation

55 slides from Murray & Roberts's earnings presentation, 2014

  1. Slide 1: Report to Stakeholders for the year ended June 2014

    REPORT TO STAKEHOLDERS FOR THE YEAR ENDED 30 JUNE 2014 ENGINEERED EXCELLENCE

  2. Slide 2: Engineered Excellence

    © Murray & Roberts 2014 | 2 ENGINEERED EXCELLENCE

  3. Slide 3: FY2014 compared to FY2013

    FY2014 COMPARED TO FY2013 ATTRIBUTABLE HEPS REVENUE^ DIVIDEND EARNINGS (Diluted Continuing) R36 billion R1,3 billion 205 cents 50 cents R34,2 billion R1 billion 123 cents Nil MAJOR NET CASH* ORDER BOOK** CLAIMS TRANSACTIONS R1,8 billion R40,9 billion Acquisition of GPMOF Clough minority settlement s

  4. Slide 4: Attributable earnings and diluted continuing HEPS

    ATTRIBUTABLE EARNINGS AND DILUTED CONTINUING HEPS Rm Cents • Returned to profitability 1,500 400 after big losses incurred in FY11 & FY12 300 • Smaller future 1,000 422 contribution from 588 516 200 discontinued operations 500 as sales transactions 839 100 closed out 510 488 205 154 137 • Good growt

  5. Slide 5: Together to Zero Harm

    TOGETHER TO ZERO HARM Fatalities LTIFR* • Regrettably, four 18 4.65 5.00 fatalities recorded in FY2014 16 4.50 • LTIFR of 0.80 4.00 • Zero Harm Through 14 Effective Leadership 3.05 3.50 12 • Visible Felt Leadership 2.86 3.00 • Philisa Health and 10 2.44 Wellness Programme 2.50 8 2.07 2.00 6 1.28 1.5

  6. Slide 6: Engineered Excellence

    © Murray & Roberts 2014 | 6 ENGINEERED EXCELLENCE

  7. Slide 7: FY2012 – The Recovery Year

    FY2012 – THE RECOVERY YEAR Key Focus Areas Murray & Roberts Family Portrait A Group of world class companies and brands aligned to the same purpose and 1 Re-organise & Re-energise vision, and guided by the same set of values with a common owner,  Strengthen operational leadership & Murray & Roberts

  8. Slide 8: FY13 & FY14 – The Two Growth Years

    FY13 & FY14 – THE TWO GROWTH YEARS 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 long term growth objective Deliver operational, risk and co

  9. Slide 9: Significant Corporate Activity

    SIGNIFICANT CORPORATE ACTIVITY Recovery Year (FY12) Two Growth Years (FY13 & FY14) Disposal of Clough Clough’s 36% becomes a Debt package investment in wholly-owned R4.0bn Forge subsidiary R1.8bn R4.4bn Up to Mar Oct Mar 2012 2013 2014 Nov Mar Dec 2011 2013 2013 Proceeds from Disposal of Rights Issu

  10. Slide 10: Investment Margins and Aspirations

    INVESTMENT MARGINS AND ASPIRATIONS Criteria Method Aspiration Result Margin EBIT 5% - 7.5% 4% Revenue Gross Gearing Total Interest Bearing Debt 20% - 25% 42%* (Net gearing is nil) Ordinary Shareholders Equity Return on Equity Net Profit Attributable to Ordinary Shareholders 17.5% through 19% (ROE) A

  11. Slide 11: Engineered Excellence

    © Murray & Roberts 2014 | 11 ENGINEERED EXCELLENCE

  12. Slide 12: From Recovery & Growth to Engineered Excellence

    FROM RECOVERY & GROWTH TO ENGINEERED EXCELLENCE Recovery & Growth Engineered Excellence • Regain market leadership position • Maximise shareholder value • Re-organise & Re-energise Group • Focus on natural resources sectors • Improve liquidity and resume • Diversify business model dividend payment •

  13. Slide 13: Objectives & Goals

    OBJECTIVES & GOALS Objectives Goals Maximise shareholder value ► • Resolve Gautrain & Dubai claims and Gautrain water ingress • Enhanced EBT, free cash flow and ROICE performance • Growth of dividends Focus on natural resources ► • Grow oil & gas, mining and energy & industrial market presences • Ev

  14. Slide 14: Family Portrait

    FAMILY PORTRAIT 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 Operating Platforms Oil & Gas Underground Mining Energy &

  15. Slide 15: Engineered Excellence

    © Murray & Roberts 2014 | 15 ENGINEERED EXCELLENCE

  16. Slide 16: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) Net interest expense (58) (117) 59 Taxation (499) (529) 30 Income from equity accounted investments 1 165 (164) Discontinued operations 423 302 121 Non-controlling in

  17. Slide 17: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 Revenue EBITDAincreased by 5%: 2 241 2 377 (136) 1. Increase mainly from Clough due to scope growth on existing contracts (+R2.7bn) EBIT 1 533 1 649 (116) 2. Increase in the Middle East due to new contract awards (

  18. Slide 18: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) EBIT 1 533 968 565 Profit on sale of Forge - 681 (681) The increase Net interest in EBIT from the prior year is mainly attributable to: expense (58) (117) 59 Positive

  19. Slide 19: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) Net interest expense (58) (117) 59 Decrease Taxationin net interest expense attributable to: (499) (529) 30 1. Increased interest income in HY1 on interest earned on

  20. Slide 20: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) Net interest expense (58) (117) 59 Taxation (499) (529) 30 •Effective Income tax fromrate of 34% equity (2013:investments accounted 35%): 1 165 (164) 1. Tax rate redu

  21. Slide 21: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) Net interest expense (58) (117) 59 Taxation (499) (529) 30 Income from equity accounted investments 1 165 (164) Decrease in equity Discontinued income attributable to

  22. Slide 22: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) Net interest expense (58) (117) 59 Taxation (499) (529) 30 Income from equity accounted investments 1 165 (164) Discontinued operations 423 302 121 Profit on disposal

  23. Slide 23: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) Net interest expense (58) (117) 59 Taxation (499) (529) 30 Income from equity accounted investments 1 165 (164) Discontinued operations 423 302 121 Non-controlling in

  24. Slide 24: Statement of Financial Performance

    STATEMENT OF FINANCIAL PERFORMANCE Rm 2014 2013¹ Variance Revenue 36 039 34 209 1 830 EBITDA 2 241 2 377 (136) EBIT 1 533 1 649 (116) Net interest expense (58) (117) 59 Taxation (499) (529) 30 Income from equity accounted investments 1 165 (164) Discontinued operations 423 302 121 Non-controlling in

  25. Slide 25: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION Rm 2014 2013 Variance Total assets 19 811 24 527 (4 716) Property, plant and equipment 3 248 3 055 193 Other non-current assets 4 075 4 107 (32) Current assets 7 781 9 307 (1 526) Cash and cash equivalents 4 301 6 284 (1 983) Assets classified as held-for-sale 406 1 7

  26. Slide 26: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION Rm 2014 2013 Variance Total assets 19 811 24 527 (4 716) Property, plant and equipment 3 248 3 055 193 Level of non-current Other property, plant and equipment maintained: assets 4 075 4 107 (32) 1. Current Capex assets of R961m is marginally lower than prior year (R1

  27. Slide 27: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION Rm 2014 2013 Variance Total assets 19 811 24 527 (4 716) Property, plant and equipment 3 248 3 055 193 Other non-current assets 4 075 4 107 (32) Decrease Current in non-current assets attributable to: assets 7 781 9 307 (1 526) 1.Cash Transfer of Tolcon and cash goodw

  28. Slide 28: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION Rm 2014 2013 Variance Total assets 19 811 24 527 (4 716) Property, plant and equipment 3 248 3 055 193 Other non-current assets 4 075 4 107 (32) Current assets 7 781 9 307 (1 526) Cash and cash equivalents 4 301 6 284 (1 983) Assets classified as held-for-sale 406 1 7

  29. Slide 29: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION Rm 2014 2013 Variance Total assets 19 811 24 527 (4 716) Property, plant and equipment 3 248 3 055 193 Other non-current assets 4 075 4 107 (32) Current assets 7 781 9 307 (1 526) Cash and cash equivalents 4 301 6 284 (1 983) Assets classified as held-for-sale 406 1 7

  30. Slide 30: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION Rm 2014 2013 Variance Total assets 19 811 24 527 (4 716) Property, plant and equipment 3 248 3 055 193 Other non-current assets 4 075 4 107 (32) Current assets 7 781 9 307 (1 526) Cash and cash equivalents 4 301 6 284 (1 983) Assets classified as held-for-sale 406 1 7

  31. Slide 31: Net Cash Reconciliation

    NET CASH RECONCILIATION Rm 10,000 447 109 (4,395) 9,000 253 1,092 8,000 2,418 7,000 6,000 5,000 4,321 (642) 4,000 (860) (961) 3,000 1 782 2,000 1,000 0 30 June 2013 EBITDA - Cash Disposal of Rhino Disposal of Hall Effeects of Other investing Acquisition of Working capital Interest, Tax & Capex Finis

  32. Slide 32: Net Cash Reconciliation

    NET CASH RECONCILIATION Rm 10,000 447 109 (4,395) 9,000 253 1,092 8,000 2,418 7,000 6,000 5,000 4,321 (642) 4,000 (860) (961) 3,000 1 782 2,000 1,000 0 30 June 2013 EBITDA - Cash Disposal of Rhino Disposal of Hall Effeects of Other investing Acquisition of Working capital Interest, Tax & Capex Finis

  33. Slide 33: Net Cash Reconciliation

    NET CASH RECONCILIATION Rm 10,000 447 109 (4,395) 9,000 253 1,092 8,000 2,418 7,000 6,000 5,000 4,321 (642) 4,000 (860) (961) 3,000 1 782 2,000 1,000 0 30 June 2013 EBITDA - Cash Disposal of Rhino Disposal of Hall Effeects of Other investing Acquisition of Working capital Interest, Tax & Capex Finis

  34. Slide 34: Net Cash Reconciliation

    NET CASH RECONCILIATION Rm 10,000 447 109 (4,395) 9,000 253 1,092 8,000 2,418 7,000 6,000 5,000 4,321 (642) 4,000 (860) (961) 3,000 1 782 2,000 1,000 0 30 June 2013 EBITDA - Cash Disposal of Rhino Disposal of Hall Effeects of Other investing Acquisition of Working capital Interest, Tax & Capex Finis

  35. Slide 35: Net Cash Reconciliation

    NET CASH RECONCILIATION Rm 10,000 447 109 (4,395) 9,000 253 1,092 8,000 2,418 7,000 6,000 5,000 4,321 (642) 4,000 (860) (961) 3,000 1 782 2,000 1,000 0 30 June 2013 EBITDA - Cash Disposal of Rhino Disposal of Hall Effeects of Other investing Acquisition of Working capital Interest, Tax & Capex Finis

  36. Slide 36: Net Cash Reconciliation

    NET CASH RECONCILIATION Rm 10,000 447 109 (4,395) 9,000 253 1,092 8,000 2,418 7,000 6,000 5,000 4,321 (642) 4,000 (860) (961) 3,000 1 782 2,000 1,000 0 30 June 2013 EBITDA - Cash Disposal of Rhino Disposal of Hall Effeects of Other investing Acquisition of Working capital Interest, Tax & Capex Finis

  37. Slide 37: Net Cash Reconciliation

    NET CASH RECONCILIATION Rm 10,000 447 109 (4,395) 9,000 253 1,092 8,000 2,418 7,000 6,000 5,000 4,321 (642) 4,000 (860) (961) 3,000 1 782 2,000 1,000 0 30 June 2013 EBITDA - Cash Disposal of Rhino Disposal of Hall Effeects of Other investing Acquisition of Working capital Interest, Tax & Capex Finis

  38. Slide 38: Engineered Excellence

    © Murray & Roberts 2014 | 38 ENGINEERED EXCELLENCE

  39. Slide 39: Growth Driven by Oil & Gas

    GROWTH DRIVEN BY OIL & GAS Underground Energy Infrastructure & Oil & Gas Total* Mining & Industrial Building 36.0bn 34.2bn 31.3bn 17.5bn 14.8bn 9.9bn 8.5bn 7.9bn 7.7bn 7.1bn 6.6bn 6.5bn 5.2bn 5.0bn 4.8bn 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 • Amounts have been r

  40. Slide 40: Oil & Gas

    OIL & GAS* Oil & Gas Underground Mining Energy & Industrial Infrastructure & Building Construction Commissioning Corporate Rm Engineering & Fabrication Global Marine & Brownfields & Other Total 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 Revenue 4 794 4 659 7 096 7 023 2 466 884 2 01

  41. Slide 41: Underground Mining

    UNDERGROUND MINING Oil & Gas Underground Mining Energy & Industrial Infrastructure & Building Rm Africa Australasia The Americas Total 2014 2013 2014 2013 2014 2013 2014 2013 Revenue 3 111 3 203 699 1 014 2 818 3 687 6 628 7 904 Operating profit / (loss) 57 (65) 49 85 152 298 258 318 Operating margi

  42. Slide 42: Energy & Industrial

    ENERGY & INDUSTRIAL Oil & Gas Underground Mining Energy & Industrial Infrastructure & Building Rm Power programme* Engineering** Total 2014 2013 2014 2013 2014 2013 Revenue 3 685 4 008 1 070 1 028 4 755 5 036 Operating profit / (loss) 238 227 (94) (90) 144 137 Operating margin (%) 6% 6% (9%) (9%) 3%

  43. Slide 43: Infrastructure & Building

    INFRASTRUCTURE & BUILDING Oil & Gas Underground Mining Energy & Industrial Infrastructure & Building Rm Construction Africa* Marine Middle East Total 2014 2013 2014 2013 2014 2013 2014 2013 Revenue 5 740 5 605 496 288 940 575 7 176 6 468 Operating (loss) / profit (189) (89) 302 51 83 (47) 196 (85) O

  44. Slide 44: Disposal of Non-Core Assets

    DISPOSAL OF NON-CORE ASSETS Disposal of non-core assets Steel Clough Marine Reinforcing Services & Construction Rm Tolcon* Products Properties Properties SA Products** Total 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 Revenue 414 366 113 621 12 56 2 4 1 484 3 957 2 025 5 004 Operatin

  45. Slide 45: Engineered Excellence

    © Murray & Roberts 2014 | 45 ENGINEERED EXCELLENCE

  46. Slide 46: Growth from Underground Mining Expected for FY15

    GROWTH FROM UNDERGROUND MINING EXPECTED FOR FY15 Underground Energy Infrastructure & Oil & Gas Total* Mining & Industrial Building 45.7bn 44.7bn 40.9bn** 20.6bn 20.4bn 16.7bn 9.9bn 9.9bn 9.5bn 8.7bn 8.6bn 6.5bn 8.1bn 6.2bn 6.2bn Jun Dec Jun Jun Dec Jun Jun Dec Jun Jun Dec Jun Jun Dec Jun 2013 2013 2

  47. Slide 47: Order Book, Near Orders and Pipeline

    Order Book - R40.9bn Near Orders - R17.3bn Pipeline – R64.9bn 25 25 25 20 20 20 15 15 15 10 10 10 5 5 5 1.3 14.2 - 1.8 17.1 24.5 9.5 13.8 16.7 9.9 6.2 8.1 0 0 0 Oil & Gas Underground Mining Energy & Industrial Infrastructure & Building © Murray & Roberts 2014 | 47 ENGINEERED EXCELLENCE

  48. Slide 48: About 80% of FY15 Revenue Secured

    ABOUT 80% OF FY15 REVENUE SECURED Order book Order book* Order book R billion % split Rbn FY Time Distribution SADC Int. Jun 2013 Jun 2014 2015 14.5 Oil & Gas 100 20.6 16.7 2016 1.9 >2017 0.3 2015 4.8 Underground 60 40 9.9 9.9 2016 4.9 Mining >2017 0.2 2015 3.2 Energy 100 100 6.5 6.2 2016 2.0 & Indu

  49. Slide 49: Growth from Underground Mining Expected for FY15

    GROWTH FROM UNDERGROUND MINING EXPECTED FOR FY15 Medium to long % EBIT Order book Order book* term relative % Market margin % split Rbn EBIT contribution prospects aspiration SADC Int. Jun 2013 Jun 2014 Oil & Gas 100 20.6 16.7 50% 5 - 7.5 Underground 60 40 9.9 v9.9 35% 5 - 7.5 Mining Energy 100 100

  50. Slide 50: Commodity Order Book Breakdown

    COMMODITY ORDER BOOK BREAKDOWN % The Americas Australasia Africa Total Platform Total Platform R3,2bn R0,5bn R6,2bn June 2014 June 2013 25% 37% 55% 41% Copper Gold 32% Copper-Gold 100% 9% Diamonds 6% Silver 10% 28% 49% Platinum 30% 6% Coal 6% Nickel 9% Potash 5% 14% 7% 5% 4% 2% Manganese 3% 2% 3% 2%

  51. Slide 51: Platforms Present Solid Foundation for Growth

    PLATFORMS PRESENT SOLID FOUNDATION FOR GROWTH • Strong operational and financial result expected to be maintained • Focus on growing market share in the engineering, commissioning and asset support sectors – small bolt-on acquisition of CH-IV in the United States and another acquisition planned Oil

  52. Slide 52: Engineered Excellence

    © Murray & Roberts 2014 | 52 ENGINEERED EXCELLENCE

  53. Slide 53: GPMOF, Gautrain and Dubai International Airport Claims

    GPMOF Gautrain Rapid Rail Link Dubai International Airport • Financial settlement • Delay & Disruption • Respondent to claim reached with Boskalis • Commercial Closeout determined. Arbitration Australia expected by Dec.16 continuing. • Negotiated settlement on • Water Ingress • New legal team - Fres

  54. Slide 54: Presence & Projects

    • Presence & projects on five continents • Five African offices • Globally employing Glasgow more than 21 000 North Bay people Salt Lake City Houston Dubai Accra PNG Kitwe Gaborone Maputo Kalgoorlie Brisbane Windhoek Johannesburg Santiago Cape Town Perth Corporate Office Oil & Gas Underground Mining

  55. Slide 55: Report to Stakeholders

    REPORT TO STAKEHOLDERS FOR THE YEAR ENDED 30 JUNE 2014 This presentation is available on www.murrob.com ENGINEERED EXCELLENCE

Murray & Roberts Holdings — FY2014 Earnings Presentation on 6ix