Murray & Roberts — H1 FY2010 Earnings Presentation
43 slides from Murray & Roberts's earnings presentation, February 2010
Slide 1: Interim Report to Stakeholders for the six months ended 31 December 2009
INTERIM REPORT TO STAKEHOLDERS FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
Slide 2: Revenue and operating profit change
R33,8bn • Revenue ~300% R2,9bn • Operating profit ~600% R8,4bn R0,4bn Reframing for the Future
Slide 3: Order book and revenue change
R40,0bn • Order book ~1 200% • Revenue ~500% R26,3bn R4,0bn R3,0bn Reframing for the Future
Slide 4: Key challenges: strong Rand, Eskom delays, Gautrain disruption
¦ Strong Rand ¦ Eskom delays ¦ Gautrain disruption ¦ Steel volatility ¦ Working capital ¦ Private sector • Industrial & mining activity Reframing for the Future
Slide 5: Global economic crisis: revenue
GLOBAL ECONOMIC CRISIS Revenue R17,6bn R16,2bn R16,0bn -----— R12,2bn 2007 2008 2009 2010 “1tsthalf |@2nd half Reframing for the Future
Slide 6: Order book, revenue, operating profit and HEPS
Order book R44 billion +10% +10% Revenues R16 billion (9%) (9%) Operating profit R918 million (37%) (37%) Diluted HEPS 200 cents (34%) (34%) Reframing for the Future
Slide 7: Operating margin, return on equity, cash flow and dividend
Target Operating margin 5,7% 5,0-7,5% 5,0-7,5% Return on average equity 20,5% >20,0% >20,0% Operating cash flow (R0,3bn) Interim dividend 52 cents per share Cover Cover 2,8-3,2x 2,8-3,2x Reframing for the Future
Slide 8: Reframing for the Future: offshore and onshore
Offshore Offshore Onshore Onshore Reframing for the Future
Slide 9: Order book development
ORDER BOOK DEVELOPMENT R14,3bn R44bn R40bn (R12bn) _————— Order Book Revenue Change New Orders Order Book 30 Jun 09 Delivered in Scope 31 Dec 09 Reframing for the Future
Slide 10: Order book by cluster and geography
Cluster distribution Construction SADC || 19% Engineering SADC a 39% Middle East [ij 10% Cementation Group || 12% Clough || 20% ORDER BOOK R44 billion Geographic distribution Middle East | 10% North America : ™% Australasia | 21% Reframing for the Future
Slide 11: Order book time distribution
Time distribution ORDER BOOK R44 billion Reframing for the Future
Slide 12: Reframing for the Future
4,60 2,78 0,12 0,05 Reframing for the Future
Slide 13: Managing our impact on society and the environment
MANAGING OUR IMPACT ON SOCIETY AND THE ENVIRONMENT ¦ International best practice ¦ More mechanisation ¦ Fewer people ¦ Multi tasking ¦ Reduced risk ¦ Better ergonomics Reframing for the Future
Slide 14: Southern Africa and international split
Southern Africa 67% 33% International 100% Construction 0% 96% Engineering 4% 96% Construction Products 4% 68% Cementation Group 32% 0% Middle East 100% 0% Clough 100% Reframing for the Future
Slide 15: Balance sheet
Rm Dec 2009 Jun 2009 Total assets 21 607 23 493 Cash 4 254 4 663 Current 11 110 12 572 Fixed 6 243 6 258 Total equity and liabilities 21 607 23 493 Shareholders equity 6 794 6 634 Interest bearing liabilities – short term 2 758 2 694 – long term 1 411 784 Non-interest bearing liabilities 10 644 13 3
Slide 16: Income statement
Rm Dec 2009 Dec 2008 Revenue 16 024 17 556 EBITDA 1 255 1 816 Operating profit (EBIT) 918 1 452 Net interest (94) 2 Taxation (166) (336) Discontinued operations & minority interests (82) (216) Attributable earnings 576 902 EBIT 918 Deferred revenue 285 1 203 Operating margin 7,4% Reframing for the F
Slide 17: Revenues and operating profit by cluster
Revenues Operating Profit R4,6bn Construction R16m R1,4bn Engineering R52m R3,3bn Construction Products R267m R2,5bn Cementation Group R217m R1,6bn Middle East R206m R2,6bn Clough R207m Reframing for the Future
Slide 18: Green Point Stadium
Green Point Stadium Reframing for the Future
Slide 19: Construction: salient points
4,8 246 SALIENT POINTS ¦ Order Book R8,5bn (June 2009: R8,6bn) ¦ Capex R170m (2008: R194m) ¦ Gautrain revenue deferment Reframing for the Future
Slide 20: Medupi Power Station
Medupi Power Station Reframing for the Future
Slide 21: Engineering: salient points
1,5 107 SALIENT POINTS ¦ Order Book R16,8bn (June 2009: R18,5bn) ¦ Capex R119m (2008: R217m) ¦ Medupi revenue deferment Reframing for the Future
Slide 22: Hall Longmore
Hall Longmore Reframing for the Future
Slide 23: Construction Products: salient points
SALIENT POINTS ¦ Order Book R125m (June 2009: R146m) ¦ Capex R144m (2008: R278m) ¦ Steel market volatility Reframing for the Future
Slide 24: Arcapita Bank, Bahrain
Arcapita Bank, Bahrain Reframing for the Future
Slide 25: Middle East: salient points
SALIENT POINTS ¦ Order Book R4,4bn (June 2009: R4,2bn) ¦ Strong Rand ¦ Johnson Arabia under pressure Reframing for the Future
Slide 26: Underground at Kroondal
Underground at Kroondal Reframing for the Future
Slide 27: Cementation Group: salient points
SALIENT POINTS ¦ Order Book R5,4bn (June 2009: R5,9bn) ¦ Capex R72m (2008: R146m) ¦ Lower activity in Canada Reframing for the Future
Slide 28: Normand Clough
Normand Clough Reframing for the Future
Slide 29: Clough: salient points
SALIENT POINTS ¦ Order Book R8,7bn (June 2009: R2,5bn) ¦ Capex R26m (2008: R233m) ¦ Legacy projects resolved Reframing for the Future
Slide 30: Gautrain Sandton Cavern
Gautrain Sandton Cavern Reframing for the Future
Slide 31: Reframing for the Future
R4,3bn R2,7bn R2,8bn R1,2bn Reframing for the Future
Slide 32: Offshore and onshore split
Offshore R4,3bn Offshore R2,7bn Offshore R2,8bn Offshore Offshore Onshore Onshore R1,2bn Onshore Onshore Offshore Onshore Onshore Reframing for the Future
Slide 33: Reframing for the Future
R3,7bn R1,3bn R1,3bn Reframing for the Future
Slide 34: Consolidated cash flow
CONSOLIDATED CASH FLOW R374m_ (R740m) R851m — (R476m) (R478m) R6a5m Lo ( ) RE33M Ro abn June 2009 Operating Financing Working Interest,tax Dividends Investing Disposalof Dee 2009 cash activities capital and forex paid activities business R2,9bn Reframing for the Future
Slide 35: Corporate Social Investment
Corporate Social Investment Reframing for the Future
Slide 36: Corporate citizenship: BBBEE certificate
rray CORPORATE CITIZENSHIP & Roberts Broad Based Black Economic Empowerment = EMPOWERLOGIC Your Logiost Empowerment Solution Broad Based Black Economic Empowerment Verification Certificate ‘ecuee to Murray & Roberts Limited Level 4 Contributor Measured Entity Compsny Name Murray & Roberts Limted Reg
Slide 37: Empowerment trusts and CSI
Letsema Bokamoso R25,0m in dividends to 14,125 employees General Staff Trust Letsema Khanyisa Black R43,5m in dividends for bursaries & houses for Employee Benefit Trust employees & their children Letsema Vulindlela Black R6,0m in dividends to the benefit of black executives Executive Trust Letsema
Slide 38: Murray & Roberts offices and projects
Murray & Roberts Offices Clough & Cementation Offices Projects Reframing for the Future
Slide 39: Dubai Airport, Gautrain and Medupi contract matters
¦ Dubai International Airport • final account ¦ Gautrain Rapid Rail • delay & disruption ¦ Medupi Mechanicals • change in scope Reframing for the Future
Slide 40: Prospects statement
“Pending clarity on the resolution of these contract rights and payment thereof, the Group will continue with its cautious recognition of revenue on major projects in South Africa. As a consequence, diluted headline earnings per share for the financial year to 30 June 2010 should be between 30% and
Slide 41: Presentation available at murrob.com
This presentation is available on http://www.murrob.com Reframing for the Future
Slide 42: 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
Slide 43: Thank you
Thank you Reframing for the Future
Murray & Roberts Holdings — H1 FY2010 Earnings Presentation on 6ix