Murray & Roberts — H1 2011 Earnings Presentation
35 slides from Murray & Roberts's earnings presentation, 2011
Slide 1: For the six months ended 31 December 2010
FOR THE SIX MONTHS ENDED 31 DECEMBER 2010
Slide 2: Uncertified Revenue, Gautrain, Competition, Succession
Uncertified Revenue Gautrain Competition Succession Performance Review Order Book The Way Forward
Slide 3: Gautrain goes cash negative
July 2009 Gautrain goes cash negative R1 40bn R1,40bn R1,25bn R1,25bn R1,10bn Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011
Slide 4: Bombela Concession Co and Bombela Civils JV
Bombela Concession Co 19,5 year concession R190m for 33% equity Patronage ahead of model Bombela Civils JV 99% complete p 45% share in JV R2bn committed funding 9 Arbitrations in progress
Slide 5: Medupi and Kusile projects
Medupi Civil Works Medupi Boiler House Medupi Chimneys & Silos Kusile Boiler House Kusile Chimneys Current estimate of final value Delayed site access Change in scope Increased complexity
Slide 6: Transparency International, Partnership Against Corruption
Transparency International Partnership Against Corruption History in the Industry 2000 2006 Construction Products Construction SADC World Cup projects
Slide 7: History: Rebuilding, Globalising, Global Financial Crisis
2000 Rebuilding Murray & Roberts 2006 Globalising Murray & Roberts 2009 - 2011 Global Financial Crisis Project Orion Cleaning the Slate Change of Leadership
Slide 8: Performance Review
Performance Review
Slide 9: Group structure by cluster
Southern Africa 60% 40% International 100% Construction SADC 66% Engineering 34% 98% Construction Products 2% 63% Cementation Group 37% Middle East 100% Clough 100% 100% Corporate & Investments
Slide 10: Order book movement
R15bn R50bn R42bn (R13bn) R6bn Order book Revenue Change New Order book 30 Jun 2010 delivered in scope orders 31 Dec 2010
Slide 11: Half-year revenue 2009-2011
R16,3bn R15,6bn R15,4bn R15,8bn R15,1bn 2009 2010 2011 1st half 2nd half
Slide 12: Revenues, operating profit and HEPS
Revenues R15,8 billion +2,5% Operating profit R715 million -25% Diluted HEPS (177) cents -189% 189% Dil d HEPS (C Diluted (Continuing i i & excl. l exceptionals) i l ) 133 cents -37%
Slide 13: Order book, operating margin, cash flow
Order book R50 billion +19% Target Operating margin 4,5% 5,0-7,5% Operating cash flow (R1,1 billion) I Interim i dividend di id d passed d
Slide 14: Order book reconciliation to June 2010
R71,2bn (R9,6bn) R97,4bn R68,3bn (R80,0bn) (R17,5bn) R6,8bn 18% Opening Cancelled Lost/Declined Converted to Change in New Prospects Closing Balance 1 July Order Book Scope/Forex Balance 30 2009 Adjustment June 2010
Slide 15: Order book reconciliation to December 2010
R68,2bn (R1,5bn) (R30,0bn) R4,4bn R59,4bn R24,5bn (R6,1bn) 220 17% 239 projects projects Opening Opening 1 Jul Cancelled Cancelled Lost/ Lost/declined Converted Converted to to order Change Change in in New New prospects Closing Closing 31 Dec 2010 book scope/forex 2010 1 Jul 2010 declined order boo
Slide 16: Cluster and geographic distribution
Cluster distribution Geographic distribution R7,4bn R27,5bn Construction SADC R7,6bn SADC R33,8bn R16,7bn Engineering R17,3bn R4,4bn Middle East R3 3bn R3,3bn R4,4bn Middle East R3,3bn R2,9bn Americas R7,0bn R2,5bn Cementation Group R12,9bn , R7,4bn R6,7bn R6 7b Australasia Clough R10,2bn R8,7bn Jun
Slide 17: Time distribution
Time distribution 2011 6 months R13bn 2012 R18bn 2013 R14bn >2013 R5bn
Slide 18: Income statement summary
Rm Dec 2010 Dec 2009 Revenue 15 759 15 381 EBITDA 1 029 1 274 Operating profit (EBIT) 715 959 Exceptional items (795) - Net interest (116) (77) Taxation (101) (186) Income from associates 36 3 Discontinued operations & minority interests (375) (123) Attributable earnings (636) 576
Slide 19: Revenues and operating profit by cluster
Revenues Operating Profit R3,2bn Construction SADC R98m R1,8bn Engineering R38m R2,7bn Construction Products R122m R3,5bn Cementation Group R290m R1,3bn Middle East R69m R3,0bn Clough R128m
Slide 20: Construction SADC
Revenue (Rbn) Operating profit (Rm) 359 3,7 3,1 28 2,8 223 98 Dec 09 Jun 10 Dec 10 Jun 11 Dec 09 Jun 10 Dec 10 Jun 11 SALIENT POINTS ¦ Order Book R7,1bn (Jun 2010: R6,5bn) ¦ Capex C R57 (2009 R57m (2009: R169 R169m)) ¦ Bottom of market cycle * excluding Gautrain
Slide 21: Engineering
Revenue (Rbn) Operating profit (Rm) 184 1,5 116 14 1,4 1,3 69 Dec 09 Jun 10 Dec 10 Jun 11 Dec 09 Jun 10 Dec 10 Jun 11 SALIENT POINTS ¦ Order Book R3,3bn (Jun 2010: R4,4bn) ¦ Competitive C titi market k t ¦ Dubai Airport arbitration
Slide 22: Construction Products
Revenue (Rbn) Operating profit (Rm) 62 1,8 50 38 1,1 0,8 Dec 09 Jun 10 Dec 10 Jun 11 Dec 09 Jun 10 Dec 10 Jun 11 SALIENT POINTS ¦ Order Book R17,3bn (Jun 2010: R16,7bn) ¦ Capex C R115 (2009 R115m (2009: R110 R110m)) ¦ Profit break-even on Power
Slide 23: Middle East
Revenue (Rbn) Operating profit (Rm) 349 3,9 3,1 268 27 2,7 122 Dec 09 Jun 10 Dec 10 Jun 11 Dec 09 Jun 10 Dec 10 Jun 11 SALIENT POINTS ¦ Capex R40m (2009: R116m) ¦ Including I l di UCW ¦ Bottom of market cycle
Slide 24: Cementation Group
Revenue (Rbn) Operating profit (Rm) 290 230 3,5 217 2,9 2,5 Dec 09 Jun 10 Dec 10 Jun 11 Dec 09 Jun 10 Dec 10 Jun 11 SALIENT POINTS ¦ Order Book R12,9bn (Jun 2010: R7,0bn) ¦ Capex C R152 (2009 R152m (2009: R72 R72m)) ¦ Robust commodity prices
Slide 25: Clough
Revenue (Rbn) Operating profit (Rm) 259 3,0 2,6 2,4 155 128 Dec 09 Jun 10 Dec 10 Jun 11 Dec 09 Jun 10 Dec 10 Jun 11 SALIENT POINTS ¦ Order Book R8,7bn (Jun 2010: R6,7bn) ¦ Capex C R41 (2009 R41m (2009: R26 R26m)) ¦ Soft marine construction market
Slide 26: Balance sheet
Rm Dec 2010 June 2010 Total assets 21 283 21 952 Cash 3 232 3 811 Current 11 880 11 976 Fixed 6 171 6 165 Total equity and liabilities 21 283 21 952 Shareholders equity 6 215 7 177 Interest bearing liabilities – short term 2 193 1 845 – long term 2 050 1 529 Non-interest bearing liabilities 10 825 1
Slide 27: Cash flow movement
R538m (R644m) R2,6bn (R154m) (R425m) (R206m) (R11m) R1,7bn Jun 2010 Operating Financing Working Interest, tax Dividends Investing Dec 2010 cash flow activities capital and forex paid activities
Slide 28: Cash and short term borrowings
R3,8bn South Africa R3,2bn R1,2bn South Africa R1,2bn R2,2bn R1,9bn International South Africa R2,6bn R1,9bn South Africa International R1,6bn R2,0bn International International R0,3bn R0,3bn Jun J 2010 Dec D 2010 Cash Short term borrowings
Slide 29: Capex and working capital
R2,0bn R0,9bn R1,0bn R0,6bn R1,1bn R0,4bn Jun J 2010 Dec D 2010 Capex Working capital
Slide 30: Safety: LTIFR, FIFR, hours worked
6 H1 2011 H1 2010 LTIFR 1,44 2,74 FIFR 0 11 0,11 0 05 0,05 Hours Worked 95 million 87 million 5 FY2006 FY2007 FY2008 FY2009 FY2010 Dec 2010 4 3 2 1 Fatalities 4 1 2 3 4 3 3 1 2 3 8 3 0 4 5 0 2 2 1 4 7 3 0
Slide 31: DuPont Sustainable Solutions and STOP.THINK
¦ DuPont Sustainable Solutions • Partnering Murray & Roberts in our journey to ZERO HARM ¦ STOP.THINK STOP THINK ! • Bill of Rights • Empowering our people to own the acts and consequence of safety All injuries and occupational illnesses can be prevented
Slide 32: Letsema broad-based empowerment trusts
Letsema Bokamoso R30m in dividends to 14,125 employees since inception G General l Staff St ff Trust T t R175 in R175m i wealth lth tto 14 14,125 125 employees l on scheme h maturity t it Letsema Khanyisa Black R51,3m in dividends for bursaries & houses for employees & Employee Benefit Trust their c
Slide 33: The Way Forward
Settle the Organisation Leadership Succession Settlement of Disputes Disposal p of Assets Competition Commission SA Infrastructure Spend Global Natural Resources Rest of Africa
Slide 34: Presentation available at murrob.com
This presentation is available on http://www.murrob.com
Slide 35: Forward-looking statements
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-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words su
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