Murray & Roberts — Investor Presentation (2006)
25 slides from Murray & Roberts's investor presentation, 2006
Slide 1: A Story So Far
A STORY Y SO FAR Brian Bruce Non-Negotiable Commitment to Sustainable Globalising Globalising Murray Earnings Murray Growth&and & Roberts Roberts Value Creation
Slide 2: Globalising Murray & Roberts
Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 3: South Africa and Murray & Roberts
SOUTH AFRICA AND MURRAY & ROBERTS Colonisation “Darkest Africa” “Winds of Change” Uhuru & Apartheid Berlin Wall Tiananmen Square February 2000 Globalisation Democracy z South Africa - a Global Nation in Africa z Murray & Roberts - a Global Company in South Africa Non-Negotiable Commitment to Sustain
Slide 4: Leaders Who Built Murray & Roberts
LEADERS WHO BUILT MURRAY & ROBERTS 1902 TO 1980 Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 5: Strategies That Almost Destroyed It
STRATEGIES THAT ALMOST DESTROYED IT 1980 TO 2000 14,000 100 12,000 600 10,000 90 8,000 400 80 6,000 4,000 200 70 2,000 60 0 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Turnover Attributable 50 40 8000 30 7000 6000 5000 20 4000 3000 10 2000 1000 0 0 1986 1987 1988 198
Slide 6: Globalising Murray & Roberts
Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 7: Rebuilding Murray & Roberts
REBUILDING MURRAY & ROBERTS 2000 TO 2006 2200 2000 1800 1600 1400 + 650% 1200 1000 = 45% pa 800 600 400 200 0 2000 2001 2002 2003 2004 2005 June June June June June June Share Price Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 8: Quantum Physics and Chaos
QUANTUM PHYSICS AND CHAOS THE LORENZ ATTRACTOR Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 9: Strange Attractor in Quantum Physics
STRANGE ATTRACTOR IN QUANTUM PHYSICS RISK ENVIRONMENT We explored and defined the “Strange Attractor” for Murray & Roberts. This concept from Chaos Theory defines the nature of a repetitive pattern of systems behaviour. A genetic behavioural fingerprint fingerprint. If an identified behaviour is rep
Slide 10: Murray & Roberts Attractor
MURRAY & ROBERTS ATTRACTOR Succession Market Value Alloy Wheels Headleases Standard Dorts Elgin C lt Carlton Net Asset Value Vulnerability Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 11: Acomodador or Giving-Up Point
ACOMODADOR OR GIVING-UP GIVING UP POINT An event in our experience that is primarily responsible for us failing to progress, e.g. ¾ a trauma; ¾ a particularly bitter defeat; ¾ a performance disappointment; ¾ even a victory we did not quite understand. These can make cowards of us and prevent us from
Slide 12: Changing Leadership Genetics
CHANGING LEADERSHIP GENETICS Succession Alloy Wheels Headleases Market Value ? Standard GLOBALISATION Dorts GAUTRAIN Elgin Net Asset Value CLOUGH C lt Carlton Vulnerability Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 13: Best in Class Benchmarking
BEST IN CLASS BENCHMARKING BEST-IN-CLASS A Central Theme across all sectors within Engineering & Construction. • Globalisation remains an illusive ideal; • Many M major j players l are experiencing i i iincreased d risk/reward i k/ d challenges; h ll and • A rapidly changing investment and risk envi
Slide 14: Global Consolidation Model
GLOBAL CONSOLIDATION MODEL Stage 1 Stage 2 St Stage 3 St Stage 4 CR3 1 Opening Scale Focus Alliances HHI 2 100% 0,7 90% Source: VBG Database, A.T. Kearney Analysis Defense Electr . Cigarette Autom . Controls 80% Distillers Maximum Shipbuilding Shoe Mfrs. 70% Mil. & Comm. Aircraft Mfrs. 60% Aero. Eng
Slide 15: Strategic Conversion
STRATEGIC CONVERSION Clough Unitrans sold for R935m Non-core buy Strategic Retailing Natural Resources Cementation Cementation and Clough operate within the strategic focus of the Group and are expected to deliver attributable earnings from the 2007 financial year in line with what h t could ld have
Slide 16: Global Business Model: Mining & Minerals
GLOBAL BUSINESS MODEL Mining & Minerals Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 17: Global Mining & Minerals
GLOBAL MINING & MINERALS THE CEMENTATION CO AFRICA LIMITED z Acquired 1 July 2004 z De-listed from the JSE Limited z Merged with Murray & Roberts RUC z Empowered 1 January 2005 with 20% sold to AKA Capital CEMENTATION CANADA INC z Murray & Roberts International z Deepest mine outside RSA Murray & Ro
Slide 18: Global Business Model: Oil & Gas
GLOBAL BUSINESS MODEL Oil & Gas Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 19: Global Oil & Gas
GLOBAL OIL & GAS CLOUGH LIMITED z Based in Perth West Australia z Similar development history to M Murray &RRoberts b t z Petrosea in Jakarta Indonesia z Australia, Indonesia, Thailand, India, Pakistan Saudi Arabia and Caribbean Pakistan, z 29,3% stake & share partnership Nov 2004 z Pre-acquisition
Slide 20: Nature of Local Construction Economy
NATURE OF LOCAL CONSTRUCTION ECONOMY SOUTH AFRICAN GFCF as a % of GDP 30.0% 28.0% GFCF % GDP 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14 0% 14.0% 12.0% 10.0% 1977 1986 1989 1992 1998 1974 1983 1995 1971 1980 2001 1965 1968 1962 2004 1947 1950 1956 1959 2007 2010 1953 2013 2 2 2 2 2 Non-Negotiable Commitm
Slide 21: Global Business Model: Engineering & Construction
GLOBAL BUSINESS MODEL Engineering & Construction Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Slide 22: Local Engineering & Construction
LOCAL ENGINEERING & CONSTRUCTION OCON BRICK z 80% acquired 1 August 2005 z 350 million bricks per annum z Building Materials Strategy CONCOR LIMITED z Scheme of Arrangement sanction Feb 2006 z Subject to Competition approval z Extends domestic market reach z M i t i identity Maintain id tit andd emp
Slide 23: Future Projects – South Africa
FUTURE PROJECTS – SOUTH AFRICA Project Description : Mixed use development of 145 000m2, comprising of apartments/parkade, retail, cinemas, hotel & offices. BEDFORD Location : Bedfordview Total Value : US$ 100 m SQUARE Completion p : Julyy 2007 (Consumer) Murray & Roberts : 100% Project Description
Slide 24: Broad-Based Empowerment
BROAD--BASED EMPOWERMENT BROAD BEE PARTNERSHIP STRATEGY AKA Capital has 20% Employee & Community shareholding in Murray & Roberts ownership in 10% Murray y & Roberts Holdings Ltd ordinary y share capital p of Cementation Murray & Roberts J&J Group has a 30% Various public & private participa
Slide 25: Thank You
THANK YOU Non-Negotiable Commitment to Sustainable Globalising Murray Earnings Growth&and Roberts Value Creation
Murray & Roberts Holdings — Investor Presentation (2006) on 6ix