0 1 0 2 0 3 0 4 Overview Financial Segmental Group of H1 - PDF document

UNAUDITED INTERIM GROUP RESULTS for the six months ended 31 December 2012 2 2 Agenda 0 1 0 2 0 3 0 4 Overview Financial Segmental Group of H1 review review prospects F2013 1

3 Overview 0 1 of H1 F2013 New office development – Waterfall, Gauteng overview 4 Financial summary H1 F2013 H1 H1 H2 vs. F2013 F2012 F2012 H1 F2012 Unaudited Unaudited Unaudited Revenue – Rm +16% 5 109 4 407 4 376 From continuing operations Operating profit – Rm * +23% 270 219 112 HEPS – Rand ^ +63% 1.52 0.93 0.23 Fully diluted HEPS – Rand^ +62% 1.51 0.93 0.22 Fully diluted HEPS from continuing +40% 1.82 1.30 0.47 operations – Rand ** EPS – Rand (loss) +57% 1.40 0.89 (3.77) Fully diluted EPS – Rand (loss) +56% 1.39 0.89 (3.77) Dividends per share – cents +45% 32 22 14 Maintained policy of 4.0x covered on adjusted EPS Headline earnings : include expected operating losses Earnings: includes all operating losses and all from discontinued Construction Materials & Middle East impairments * Including fair value adjustments, excl. amounts from associates ** Before adjusting for Middle East losses ^ H1 F2012 restated to reflect operating losses from construction materials in headline earnings, comparable with F2012 treatment 2

overview 5 Interim results in context F2012 corrective action set base for improved performance from H1 F2013 SA construction market conditions remain tough with thin margins Excl. costs for new BBBEE transaction concluded in H2 F2013 Results Incl. some close out costs of Construction Materials & Middle East All 5 sale agreements negotiated ‒ 2 concluded in H2 F12, proceeds collected H1 F13 ‒ 1 concluded & proceeds collected in H1 F13 Discontinued Construction ‒ 2 remaining deals have CP’s in progress, to be concluded 2013 Materials ‒ R11,5m further cost to sell remaining businesses in H1 F13 H1 Trading losses of R29,9m (R35m guided with F2012 results) H2 Trading impact unlikely to be material Operations closed; overhead costs as expected Contracts close-out programme progressed largely in line with plan ‒ Results R13 million weaker than expected Middle East ‒ 3 large contracts reached final settlement; cash benefit received Debtors continue to honour payment plans H2 overhead cost not expected to be material overview 6 Interim results in context (contd) Market related pressure in Buildings Margins Underlying margins in all other businesses in line with November 2012 guidance Healthy Cash position improved to R2,6 bn Balance No net debt Sheet Contracting (Construction and E+C) order book up 19% from June 2012 Order Book Operations & Maintenance order book maintained 3

overview 7 Competition Commission update Recent speculative media reports have raised the profile of the Commissioner’s investigation into the construction industry. These have confused the markets’ understanding of the Commission's mandated process. Group Five’s industry leading actions over five years demonstrate its commitment to ethical business: 2008 • Competition Commission (Comp.Com) announces its intention to investigate the construction industry (as oppose to earlier investigations into associated supplier industries) • Group Five conducted in-house Competition Law awareness programmes which revealed behaviours of a few were concerning • Group was at risk for historic industry practises 2009 • An invasive & exhaustive internal investigation, under oath was undertaken • Staff came forward to make full disclosures to protect the Group’s position • Group Five was then the first major construction company to approach the Comp.Com and applied for leniency overview 8 Competition Commission update (contd) 2010 - 2012 • Extensive co-operation was provided by the group in support of our disclosures • Group Five was the 1st applicant in all matters we reported, resulting in conditional leniency being granted, pending conclusion of the full industry investigation • Comp.Com launched its “fast track” process in 2011, as a result of the Group’s earlier co-operation, which triggered wider industry participation 2013 • No provision raised due to co operation & position as leniency applicant • No guarantee of zero fines until Comp.Com complete their process Due to the provisions of Comp.Com’s leniency policy no further disclosure can be made until the investigation is closed. Management regrets the past behaviours in this industry. • We trust that our early actions from 2008 have contributed to a changed industry 4

overview 9 9 Group structure Investments and Engineering Manufacturing Construction Concessions + Construction* Eric Vemer John Wallace Andrew McJannet Willie Zeelie Building and Housing Infrastructure Power Concessions Fibre Cement Civil Engineering Oil & Gas Property Steel Developments Nuclear Projects ** Projects and E+C was previously consolidated as the Engineering segment within Construction * First time separate disclosure of the E+C cluster (sector specific EPC & services business) ** Projects is a structural, mechanical & electrical contracting business (strongly focused on Mining) 10 Free-flow interchange for SANRAL – KZN Financial 0 2 review 5

financial review 11 Income statement H1 H2 H1 F2013 F2012 F2012 Rm Unaudited Unaudited Unaudited Revenue from continuing operations 5 109 4 407 4 376 Operating profit & margin % 270 219 112 Incl. fair value adjustments; 5.3% 5.0% 2.6% Excl. amounts from associates, affected by losses from Middle East operations Profit before interest & taxation 275 219 114 Finance (cost)/income ‒ net (6) 2 (6) Profit before taxation 269 221 108 Effective tax rate % 31% 30% 38% Profit from continuing operations 185 156 67 Loss from discontinued operations Incl. operating losses from Construction Materials and (38) (41) (412) impairment from Construction Materials & India claim Net income/(loss) 147 115 (345) Headline earnings : include expected operating losses Earnings: includes all operating losses and all from discontinued Construction Materials & Middle East impairments financial review 12 Performance against guidance Core Margin Target Core Margin %** Achieved ** Investments & * 15 – 20% Above target 22.6% Concessions ~ Short-term at lower end of range * 5 – 7% short term Manufacturing On target 6.8% ~ Unchanged Construction Building and * 3 – 4% short term Below original target, 2.0% Housing ~ Lower than guidance in the short term but in line with guidance * 4 – 6% short term 3.3% Civil Engineering Below original target *** ~ Short-term at lower end of range 5.6% * 5 – 8% short term Projects On target 6.9% ~ Unchanged Engineering + * 3 – 5% short term On target 2.6% ~ Unchanged Construction * target as reported with F2012 results ** total margin H1 F2013 adjusted for non core txns of pension fund gains & ~ target as guided in November 2012 deficits, impairments etc but not adjusted for profit or loss on sale of assets *** adjusted for Middle East losses 6

financial review 13 Cash flow H1 H1 H2 F2013 F2012 F2012 Rm Unaudited Unaudited Unaudited Operating cash 349 236 189 Working capital changes 230 119 35 Finance (costs)/income – (net) (6) 2 (4) Trade and other payables 154 144 364 Trade and other receivables 77 (46) (208) Contracts in progress 18 22 (57) Inventories (19) (1) (64) Total change 230 119 35 Working capital ‒ Advance payment position held; excess billings improved Net finance costs – finance costs decrease however finance income also decreased as a result of ‒ Increase in foreign cash holdings at low to zero interest rates ‒ Lower interest rates, period on period, on local cash ‒ No fair value bond and swap credit in current period ‒ Reduced interest earned on cash held by joint venture partners in current period financial review 14 Cash flow H1 H1 H2 F2013 F2012 F2012 Rm Unaudited Unaudited Unaudited Operating cash 349 236 189 Working capital changes 230 119 35 Cash generated from operations 579 355 224 Finance (costs)/income – (net) (6) 2 (4) Cash effects of operating activities (disc. oper.) 1 (7) (11) Tax and dividends paid (77) (95) (53) Net cash generated by operating activities 497 255 156 Fixed assets – (net) (63) (110) (90) Investments and financing – (net) (79) (89) (148) Cash effects of investing & 10 (18) (8) financing activities (disc. oper.) Effect of exchange rates on cash 18 80 (4) Movement in cash 383 117 (94) Cash & cash equivalents on hand – end of period 2 642 2 352 2 259 Cash & cash equivalents on hand – end of period 2 640 2 335 2 268 continuing operations 7