1 annexure – interim results summary. 2 income statement r 000 year-end june h1 2007 unaudited h2...

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Annexure – Interim Results SummaryAnnexure – Interim Results Summary

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Income StatementIncome Statement

R’ 000Year-end June

H1 2007Unaudited

H2 2006Unaudited

H1 2006Unaudited as restated

Revenue 4 004 824 2 955 400 2 909 321

Operating margin %Operating profitOther income / (costs) – net

3,4% 137 548

4 000

5,3%155 30319 978

2,9%85 496

*(89 475)

Profit / (loss) before finance costs and taxationFinance costs

141 548 (12 676)

175 281 (15 979)

(3 979) (14 350)

Profit / (loss) before taxationEffective tax rate

128 872 28%

159 302 32%

(18 329) n/a

Profit / (loss) from continuing operationsLoss from discontinued operations

92 915(1 129)

108 759(20 418)

(30 540)(656)

Profit / (loss) for the period 91 786 88 341 (31 196)

* In terms of revised accounting standards, the R91m discount arising on the issue of shares to external BEE shareholders must be expensed as at the date of transaction. This has resulted in the restatement of prior year results as the BEE transaction was concluded on 29 September 2005.

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Integrates the skills available in the various G5 business units with its own development and operating expertise

Characterized by lengthy lead and deal conclusion times

Property Development

Services (PDS)InfrastructuralInfrastructuralDevelopmentsDevelopments

Infrastructure Development Services (IDS)

Results by Division: Infrastructural DevelopmentsInfrastructural DevelopmentsResults by Division: Infrastructural DevelopmentsInfrastructural Developments

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Infrastructural DevelopmentsInfrastructural Developments

Business established in 2004

Objective: the creation of quality property investment assets

Utilization of the Group Five brand

Spread of commercial, industrial, retail and residential property developments

Flexible strategy to reduce exposure to residential at the topof the market and switch emphasis to the commercial and industrial markets

Property Development Services (PDS)

(PDS)InfrastructuralInfrastructuralDevelopmentsDevelopments (IDS)

5


H1 2006H1 2007

Revenue by property type


7%50%40%

3%

IndustrialCommercialResidentialInvestments

1%65%34%

0%

IndustrialCommercialResidentialInvestments


H1 2007 H1 2006

6

0

Operating Profit 17%

10

20

30

7

18

6

Infrastructural Developments Infrastructural Developments

Revenue 184%

81

46

130

0

50

100

150

H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

Increased level of commercial revenue vs residential, investment and industrial revenue in

prior period


R million R million

• Slight decrease expected due to the no. of projects to be concluded in H2 2007

• Full year profitability expected to match prior year


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Activities:

─ The development of large-scale infrastructure contracts, usually with a construction value > ZAR1bn; often characterized by PPP (public private partnership) concessions

─ Toll road operations and maintenance contractsHigher returns sought through risk-managed participation throughoutthe project lifecycle of Development, Financing and refinancing, Construction, Operations and maintenance, Rehabilitationand Handover or sale

Concession investments and toll road interests consist of:

─ Two long-term (25 & 30 yr) toll road service concessionsvalued at ZAR60mn

─ Seven short-term, annuity income-type highway operationsand maintenance contracts



8

15

Infrastructural Developments Infrastructural Developments


Revenue Operating Profit

9594 98

0

50

100

150

Revenue in line with budget – relates to operationand maintenance equipment supply on toll roads

0.42

55

10

0H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

R million R million

• Operating profit margin on toll roads improved to 5,3% from 4,6% in the comparative prior period

• Decrease due to the continued policy of writing off development cost on targeted large Infrastructure projects

• Significant effort spent in the period on King Shaka Airport


9

Everite Building Products (Everite)

Group Five Pipe

ManufacturingManufacturing

Results by Division - ManufacturingManufacturingResults by Division - ManufacturingManufacturing

10

Manufacture of non-asbestos fibre-cement building materials tothe commercial, industrial, retail and residential markets

Differentiated as a commodity fibre-cement sheet manufacturer through product quality and ability to serve a fragmented SA market

Also manufactures a range of value-added products

Residential demand, in particular government-subsidized affordablelow cost housing, is significant and the group is investing ZAR50 million to increase capacity by 25% over the next year

Also looking at steel frame housing (new in Africa)


Everite Building Products


Group Five PipeManufacturingManufacturing

11

0



Revenue Operating Profit 6%-1%

50

100

150

200

250

300 100

50234 217 232

0

312830

75

25

•Up from R29,5m to R31,3m•Margin up from 12,6% to 13,5% (factory improvements vs minimal price increases)•Everite continues to operate at full capacity•Project to increase capacity by 25% (commissioned by 30 June 2007)

H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

R million R million



12

Manufacturer of large diameter steel spiralled pipes

A 50:50 joint venture with Marine & Civil (private company)

Business easy and cheap to start and stop as needed – plant re-opened 18 months ago

Vaal River Project contract coming through next year with full affect

A very focused business, dependent on large-scale contracts


Group Five Pipe



13

0

10

20

30

40

50

0


Group Five Pipe

Revenue Operating Profit

•A very focused business, dependent on large-scale contracts

•Full effect of VRESAP contract coming through

530%251%

10

20

15

5

12

7

14

29

8

H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

R million R million



14

Quarry Cats

(acquisition effective February 2007)

Sky Sands

(anticipated effective date: June 2007

Building Building MaterialsMaterials

Results by Division – Building MaterialsResults by Division – Building Materials

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Building and Housing

ConstructionConstructionCivil Engineering(Including Roads

& Earthworks)

Engineering Projects

Results by Division - ConstructionConstructionResults by Division - ConstructionConstruction

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Total Construction Total Construction

H1 2006H1 2007

Revenue by business

53%36%11%

61%28%11%

Building and HousingCivil EngineeringEngineering Projects


H1 2007 H1 2006

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H1 2006H1 2007

Total ConstructionTotal Construction

Operating profit by business

50%32%18%

70%22%

8%



H1 2007 H1 2006

18

Total ConstructionTotal Construction

Revenue Operating Profit 102%

46

10293

0

25

50

75

100

125

1000

2000

3000

4000

0

2 527 2 549

3 516

39%

H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

R million R million

Performance ─ Total Construction

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Participates in various segments of the construction sector, including:

• Public and private sector mass housing contracts

• High-rise residential apartments

• Commercial offices

• Retail shopping centers

• Industrial premises

• Educational and healthcare facilities

• Hotel and leisure facilities

ConstructionConstruction



ConstructionConstruction Civil EngineeringEngineering Projects

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Revenue ─ Building and Housing

F2007* H1 2007 F2006 H1 2006

35%

62%

3%

Residential

Commercial /RetailIndustrial

26%

71%

3%

26%

71%

3%

27%

69%

4%

* As indicated by December 2006 secured order book (last published data)



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0

500

1000

1500

2000

2500


R million

Operating Profit

R million

45%

H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

Performance ─ Building and Housing

32

49

0

20

40

60

80

0

4%

8%

12%

16%Margin

47

Revenue 23%

1 5251 264

1 869

Influenced by substantial completionof East Africa contracts

Revenue increased by 23% to R1.9bn

2%3%4%



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Undertakes civil, roads and earthworks infrastructure contracts forpublic, mining and industrial contracts in Africa and the Middle East Projects include: ─ Mining, power station and industrial structures─ Airports and port and marine facilities─ Bridges and interchanges─ Dams, canals and pipelines─ Rail projects─ Fluid distribution and storage─ Metallurgical and flotation plants─ Milling plants, material handling, silos and storage─ Roads and highways─ Township infrastructure


Civil Engineering(including Roads and Earthworks and Dubai businesses)



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Revenue ─ Civil Engineering

F2007* H1 2007 F2006 H1 2006

40%

60%Public

Private 48%

52%

48%

52%

29%

71%




24

0

500

1000

1500

2000

0

10

20

30

40

50

60


R million

Operating Profit

R million

186%

H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

Performance ─ Civil Engineering

0

4%

8%

12%

16%Margin

Revenue 77%

• Increase due to improved market local and African environment • Dubai contribution was less than expected (contract changed by customer) – fully

secured for full year

718945

1 271

10

30

41

1%4%

2%



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Undertakes higher margin, multi-disciplinary plant construction, primarily for the private sector in the mining, power, oil and gas and heavy industrial arenas. Includes:

─ Structural, mechanical and piping supply and erection

─ High and low voltage electrical and control systems

─ Engineering, Procurement and Construction of turnkey plants through alliancing

─ Industrial and petrochemical plant maintenance, shutdowns and turnaroundsTrack record, market positioning and skills provide competitiveadvantage as a project delivery partner to foreign technology companies

― Preferred contractor for General Electric in power in AfricaStrong footprint of project delivery throughout sub-Saharan Africa – particularly in Central and West Africa


Engineering Projects



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Revenue ─ Engineering Projects

F2007* H1 2007 F2006 H1 2006

89%

11%Oil, Gas& Power

Mining & Industrial 87%

13%

68%

32%

70%

30%




27

0

10

20

0

200

400

600


R million

Operating Profit

R million

377%

H1 2006 H2 2006 H1 2007 H1 2006 H2 2006 H1 2007

Performance ─ Engineering Projects

0

4%

8%

12%

16%Margin

32%

Operating profits and margins improved as the business shrugged off the effectsof two poor performing contracts that were completed in F2006

Revenue

284340 376

15

5 4

17

11

3%

1%

5%



1 annexure – interim results summary. 2 income statement r 000 year-end june h1 2007 unaudited h2...

Documents

operating profit

unaudited h1

industrial revenue

na profit loss

continuing operations

discontinued operations

income costs

unaudited h2