REPORT TO STAKEHOLDERS

Transcription

1 REPORT TO STAKEHOLDERS FOR THE YEAR ENDED 30 JUNE 2011 RECOVERY & GROWTH

2 MEDUPI POWER STATION 2

3 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 3

4 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 4

5 Effective and smooth leadership transition Material loss reported Improvement in liquidity Progress on resolution of major claims Strong order book Safety No dividend 5

6 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 6

7 Earnings (Rm) FY2011 FY2010 Rm EPS Rm EPS Comment Attributable earnings (1 735) (585) EBIT from continuing operations (678) excl. Steel, Clough Marine & Properties, Johnson Arabia, BRC Arabia and SA Properties EBIT from continuing operations excluding unusual trading items Co ss o, good pa e excl. Gautrain, GPMOF, Legacy contracts Middle East, Competition Commission, goodwill impairment Cash position* (Rm) Jun 2011 Dec 2010 Jun 2010 Net cash / (debt) 759 (1 011) 437 * From continuing operations 7

8 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 8

9 Safety Liquidity Major Uncertified Competition projects revenues Commission Together Towards Zero Harm 12 fatalities (2010: 9) LTIFR 1.6 (2010: 2.2) DuPont intervention Outstanding safety performances: 10m LTI free man hours Zayed University 6m LTI free man hours ABSA Towers 4m LTI free man hours Medupi Civils 9

10 Safety Liquidity Major Uncertified Competition projects revenues Commission Impact on Timeframe Claims Disposals earnings Apr Jun 2011 Mechanicals Power Programme Medupi Civils advance payment PRASA Houghton N3 Toll Concession Johnson Arabia Jul Jun 2012 Medupi Civils acceleration claims BRC Arabia Properties Steel Group C After Jun 2012 Gautrain GPMOF Dubai International Airport 10

11 Safety Liquidity Major Uncertified Competition projects revenues Commission Gautrain Medupi Medupi / Kusile / Kusile Medupi Dubai Medupi Civils GPMOF Barrow International Island Mechanicals mechanicals Civils Airport Opened Hatfield to Rosebank Stations (2 Aug 2011) Estimated completion Jan 2012 Statement of Case (29 Jul 2011) Additional losses accounted for FY2011 Water ingress Rosebank to Park Stations Delay penalties Cost to complete Impairment of uncertified revenue 11

12 Safety Liquidity Major Uncertified Competition projects revenues Commission Gautrain Medupi Medupi / Kusile / Kusile Medupi Mechanicals mechanicals Civils Medupi Civils GPMOF Amicable resolution of claim New commercial arrangement Profit potential Medupi 29% complete Kusile 9% complete Dubai Barrow International Island Airport 12

13 Safety Liquidity Major Uncertified Competition projects revenues Commission Gautrain Medupi Medupi / Kusile / Kusile Medupi Mechanicals mechanicals Civils Medupi Civils GPMOF Dubai Barrow International Island Airport Improved relationship with Eskom Advance payment reinstated t Significant increase in scope Second access commercial arrangement Project 55% complete Medupi and Kusile chimneys 13

14 Safety Liquidity Major Uncertified Competition projects revenues Commission Gautrain Medupi Medupi / Kusile / Kusile Medupi Mechanicals mechanicals Civils Medupi Civils GPMOF Loss making contract Dubai Barrow International Island Airport Estimated t completion January 2012 Loss to completion accounted for FY2011 Challenges Late site access (6 months) Logistics and quarantine Scope growth Weather conditions Arbitration 14

15 Safety Liquidity Major Uncertified Competition projects revenues Commission Gautrain Medupi Medupi / Kusile / Kusile Medupi Mechanicals mechanicals Civils Medupi Civils GPMOF Dubai Barrow International Island Airport Project handover October 2008 Re-measurable contract t Final certificate still to be agreed Arbitration Estimated resolution FY

16 Safety Liquidity Major Uncertified Competition projects revenues Commission Claims Jun 2011 Jun 2010 Total (Rm) 1 968* Gautrain C Medupi Civils Dubai Airport GPMOF C * Net of R334m payment on account GPMOF 16

17 Safety Liquidity Major Uncertified Competition projects revenues Commission Fast track process (15 April 2011) Identified potential transgressions Possible penalty accounted for FY2011 Cooperation with Competition Commission Statement Sae e of Business Principles cpes Consequence matrix 17

18 Africa and Middle East Global Underground Mining Companies Geography Segments Value chain MUR Africa Metals & Minerals Project Dev. & Design MUR Marine Middle East Industrial Planning and Eng. MUR Middle East Infrastructure works Concessions Building Operations Tolcon Maintenance MUR Cementation Cementation Canada RUC Cementation Cementation Sud Am. Africa Australia Americas Metals & Minerals Planning and Eng. works Operations Australasia Oil & Gas and Minerals Clough Forge Australasia South East Asia Africa Industrial (Oil & Gas) Metals & Minerals Planning and Eng. works Maintenance Engineering Africa MUR Projects Wade Walker Concor Engineering Genrec Africa Metals & Minerals Industrial Project Dev. & Design Planning and Eng. works Maintenance Products Africa Hall Longmore Building Products Much Asphalt Rocla UCW Africa Metals & Minerals Industrial Infrastructure Building Products 18

19 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 19

20 STATEMENT OF FINANCIAL PERFORMANCE Rm Jun 2011 Jun 2010 Revenue EBITDA (93) Operating (loss) / profit (EBIT) (678) Net interest expense (194) (122) Taxation (196) (414) Income from equity accounted investments Discontinued operations (666) 215 Non-controlling interests t (87) (131) Attributable earnings (1 735)

21 NORMALISED EBIT Rm Jun 2011 Jun 2010 EBIT from continuing operations (678) Gautrain / Competition Commission penalties Marine Middle East contract receivable impairment Asset impairment 79 - EBIT normalised Significant charges Jan 2011 Jun 2011 Continuing Discontinued Gautrain / Competition Commission penalties Marine Middle East trading decline 70 - Asset impairment Other Total

22 STATEMENT OF FINANCIAL POSITION Rm Jun 2011 Jun 2010 Total assets Cash and cash equivalents Current Non-current Assets classified as held for sale Total equity and liabilities Shareholders equity Interest t bearing liabilities- short term long term Non-interest bearing liabilities Held for sale liabilities

23 CASH FLOW (GROUP) Rm (597) (274) (62) June 2010 Operating cash flow Working capital Interest, tax and forex Dividends paid Investing activities Discontinued operations (Borrowings) June

24 Africa Global and Middle East Underground Mining Australasia Oil & Gas and dminerals Engineering Africa Products Africa Rm Africa¹ Marine Middle East Total Revenue Operating (loss) / profit (653) 133 (582) 77 (164) 300 (1 399) 510 On-going g construction activities PPP Investments and Services² Gautrain / competition penalties Contract receivables impairment (582) (345) (1 150) (619) (1 150) (619) (164) (89) (164) (89) 1. Includes Civils, Buildings, Roads, Opencast, PPP; 2. Concessions and Tolcon 24

25 Africa and Middle East Global Underground g Mining Australasia Oil & Gas and dminerals Engineering Africa Products Africa Rm Africa Australasia The Americas Total Revenue Operating profit

26 Africa and Middle East Global Underground Mining Australasia Oil & Gas and dmi Minerals Engineering Africa Products Africa Rm Clough Forge¹ Revenue Operating profit Reflected at 100%. Forge is equity accounted as a 33% associate within the consolidated results The 2010 results are for a full year, for comparative purposes even though the entity was only acquired in April

27 Africa and Middle East Global Underground Mining Australasia Oil & Gas and dminerals Engineering Africa Products Africa Rm Power Program¹ Engineering² Total Revenue Operating (loss) / profit (34) 38 (17) 30 (51) Murray & Roberts Projects power program contracts and Genrec 2. Includes Wade Walker, Concor Engineering, Murray & Roberts Projects non-power program projects 27

28 Africa and Middle East Global Underground Mining Australasia Oil & Gas and dminerals Engineering Africa Products Africa Rm products¹ Industrial products² Total Revenue Operating profit On-going activities Asset impairment (79) (79) - 1. Hall Longmore, Much Asphalt, Ocon, Rocla and Technicrete 2. UCW 28

29 Africa and Middle East Global Underground Mining Australasia Oil & Gas and dminerals Discontinued operations Engineering Africa Products Africa Rm Crane Hire Services¹ Steel Reinforcing Products Clough Marine Services & Prop. Properties SA Revenue Operating (loss) / profit (58) 1 (619) 3 (73) Trading (58) 1 (325) 3 (41) Asset impairment - - (294) - (32) (59) Johnson Arabia 29

30 Africa Global and Middle East Underground g Mining Australasia Oil & Gas and dmi Minerals Engineering Africa Products Africa June 2011 June bn 4.1bn 91bn 9.1bn 1.7bn 5.8bn 11.2bn 5.4bn 38bn 3.8bn 7.8bn 5.4bn Africa and Middle East Global Underground Mining Australasia Oil & Gas and Mineral - Clough Engineering i Africa Products Africa 30

31 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 31

32 Purpose Delivery of infrastructure to enable economic and social development in a sustainable way Values Integrity Care Respect Accountability Commitment By 2020 we will be the leading diversified engineering and construction group Vision in the global underground mining market, and selected emerging market natural resources and infrastructure sectors 32

33 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 33

34 Projected revenue % split SADC Int. Order book Rbn Jun 2011 Jun 2010 Africa and Middle East Global Underground Mining Australasia Oil & Gas and Minerals Engineering Africa Products Africa

35 Projected revenue % split SADC Int. Order book Rbn Jun 2011 Jun 2010 Order book Rbn Time Distribution Africa and Middle East > Global Underground Mining > Australasia Oil & Gas and Minerals > Engineering Africa > Products Africa >

36 Projected revenue % split SADC Int. Order book Rbn Jun 2011 Jun 2010 Relative % EBIT Contribution Market prospects % EBIT margin range Africa and Middle East ±20 <5.0 Global Underground Mining ± Australasia Oil & Gas and Minerals ± Engineering Africa ± Products Africa ±20 >

37 Rbn bn (6bn) (66bn) bn (7bn) 9bn 86bn 0 Opening balance 01 July 2010 New prospects p Cancelled Lost / declined Converted to order book Change in Closing scope / forex balance adjustment 31 June , Global Underground Mining, Africa & Middle East, Engineering Africa 37

38 Salient points FY2011 Summarised financial results Hot topics Group financials Purpose, values and vision Outlook Priorities RECOVERY & GROWTH 38

39 Re-organise and re-energise energise Strengthen operational leadership and operational focus Improve liquidity and resume dividend payment Cash from operations Reduce overhead costs Claims on major projects Changes to business areas Sale of discontinued operations Realign Murray & Roberts Purpose Develop growth strategy Africa engagement strategy Vision Growth through acquisition Values Optimise Clough investment 39

40 London North Bay Salt Lake City Dubai Ghana Gaborone Windhoek Santiago Harare Johannesburg Cape town Brisbane Kalgoorlie Perth Corporate Office Australasia Oil & Gas and Minerals Global Underground Mining Engineering Africa Africa and Middle East Products Africa 40

41 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 Words such as believe, anticipate, expect, intend, seek, will, plan, could, may, endeavour and project and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, actual results may be very different from those anticipated. The factors that could cause our actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forwardlooking statements are discussed in each year s integrated annual report. Forward-looking statements apply only as of the date on which they are made, and we do not undertake other than in terms of the Listings Requirements of the JSE Limited, to update or revise any statement, whether as a result of new information, future events or otherwise. All profit forecasts published in this presentation are unaudited. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein. 41

42 REPORT TO STAKEHOLDERS FOR THE YEAR ENDED 30 JUNE 2011 This presentation is available on RECOVERY & GROWTH