24 th August 2011 Group strategy Short term Competition Authority - PowerPoint PPT Presentation

Board presentation 24 th August 2011

Group strategy Short term Competition Authority - current and ongoing • • Rights offer - done BEE scorecard improvement to Level 4 - done • • Consolidate and integrate operating divisions into one single entity - done Expand market share into SSA growth countries - ongoing •  Civils - Mozambique  Geotechnical – Ghana, Kenya Restore profitability with existing contract portfolio and divisions • • Cash conservancy Medium to long term • Further geographical expansion Expanding the product range organically and acquisitively to focus specifically on • growth sectors • BEE scorecard

New group structure effective 1 March 2011 Divisionalisation Esorfranki Limited • Holding company Esorfranki Construction (Pty) Ltd • Operations company • Civils • Geotechnical • Pipelines • Shared Services • All off -shore companies and divisions Esorfranki Properties

Geotechnical merge • Durban  The old Esor Africa and Franki Africa will operate as Esorfranki Geotechnical Division from single premises situated in Phoenix Industrial park from 1 st September 2011. Johannesburg •  The old Franki Africa has taken all Esor Africa’s operations besides pipejacking to their Wynberg facilities and operates as Esorfranki Geotechnical  Esorfranki Pipejacking is operating under Esorfranki Civils from our Activia Park facilities

Esorfranki Group - Network Are currently working in Ghana for an Australian Mining Group

Operational review

Outstanding order book and secured revenue Business Unit Order Book Secured Secured Secured As at 30 June Revenue FY Revenue Revenue 2011 2012 FY 2013 FY 2014 (millions) (millions) (millions) (millions) Geotechnical 227 461 - - Civils 1 063 712 414 204 Pipelines 622 282 116 277 Total 1 912 1 455 530 481

Esorfranki Civils

New 65-tonne excavator

Start of box-cut on N4

Civils products and services • Road building • Bridge construction • Township infrastructure • Mining infrastructure • Water reticulation • Water towers & reservoirs • Sewer reticulation • Bulk earthworks • Building

Geographical footprint - some key contracts

Civils outlook 2012 and beyond • K71/R55 current road contract R213m • RAL current road contract R80m  Budget of R500m for new road contracts • Kusile current civils and earthworks contract R326m  Potential add-ons to current contract R300m  Admin block R200m  Commercial fill R150m  Crushing contract R400m • Lawley current infrastructure contract to existing low-cost housing R30m  Potential for adjacent developments • Bakwena N4 Mooinooi current road contract R330m  N4 Proefplaas CSIR to Zambezi Drive lowest tenderer awaiting award R240m • Mine work Atcom (Xstrata) and Anglo R200m  Big dig cannels R120m targeted for next year  Slimes dam R300m N1/N2 Winelands PPP we have a potential stake in one consortium and should get • geotechnical work irrespective of which consortium wins the bid

Civils outlook 2012 and beyond continued Housing •  Mozambique middle class housing and infrastructure 1 st phase R700m 1-2 year  Johannesburg low-cost housing R1.5b 3-4 years  Eastern Cape low-cost housing R550m 1-2 years Building •  The Rose in Rosebank current R30m  Roedean Hostel current R17m  Munitoria pending R100m Pipejacking •  Current contracts this year R100m (short term contracts)

Esorfranki Pipelines

Pipelines products and services • Gas & Petrochemical steel pipelines • Water & Wastewater pipelines & pump stations • Sewer pipelines & pump stations • Pipeline refurbishments • Cement mortar lining • Valve chambers • Associated concrete structures • Associated infrastructure

Geographical footprint - some key contracts

BG3 Pipeline contract

BG3 Pipeline contract

BG3 Pipeline contract

Pipelines outlook 2012 and beyond • Current contracts  BG3 contract near Vaal Dam R160m still to do.  Miscellaneous contracts R35m still to do  Western Aqueduct R420m awaiting review application on 16 th September 2011 but currently working on site  Mooihoek 3 contract R60m • Potential awards  Giyani R200m (under appeal by Esorfranki) probably R120m still to do.  Metalong Lesotho  Phase 1 placed 3rd R375m  Phase 2 placed 3rd R291m  Phase 3 placed 3 rd R130m  Piet se Kop R24m  Nacala Pipeline Mozambique US$27m  Bluff Military Base R23m  Thulele/Woodmead R25m

Pipelines outlook 2012 and beyond continued • Prequalifications  TCTA  Olifants River prequalification JV with Civcon pending R2b  Gweru and Kadoma Zimbabwe • Other prospects  Rand Water Augmentation Budget R4b  TCTA Mooi Umgeni water transfer scheme R800m  Sasol SNI 26” from Sasolburg to Secunda R400m  Sasol 12” Secunda R40m  Zimplats pipeline R60m  N10 pipeline Bloemendal R70m

Esorfranki Geotechnical

Geotechnical products and services • Piling • Lateral Support • Marine Structures Diaphragm Walls • • Ground Improvement • Dynamic Compaction • Ground Remediation • Soils Investigation Geotechnical Design •

Geographical footprint - some key contracts

Geotehnical outlook 2012 and beyond • Johannesburg current awarded R160m  Kusile current piling work R20m  Kusile ancillary piling work R140m  Village Walk, Sandton R40m  114 West Street, Sandton R15m  Stella Rise, Old Mutual, Sandton R30m  Other pending R25m  Other key R210m • Cape Town current awarded R84m  Portside R10m  V & A Clocktower R15m  Other pending R25m  Other key R160m Angola current award R36m •  Other pending R57m  Other key R250m

Geotehnical outlook 2012 and beyond continued • Durban current awarded R72m  Other pending R22m  Other key R293m Mozambique current awarded R50m •  Other pending R50m  Other key R165m • Tanzania current award R27m  Other pending R26m  Other key R118m Mauritius current award R58m •  Other pending R5m  Other key R215m

General 2012 and beyond Eskom •  Medupi Power Station still some housing likely to happen  Kusile Power Station housing and civils  Nuclear Power Station (has been in the press)  3rd Coal Fired Station (has been mooted)  Transmission lines Sanral and other Roads (15,000km non-toll) •  Coal haul-roads upgrades R20b  Nelspruit Bypass  Non-toll roads budget of R8.6b in 2011 expected R9.5b for 2012 from National Treasury GFIP Phase 2 (Sanral) •  PWV 9 JHB-Pta link west of Ben Schoeman  PWV 5 connects R21 at Olifantsfontein to N1 and on to Soweto  PWV 14 connects R21 from Easr Rand Mall to M2  K54 is the Pta eastern ring road from Rietvlei to Donkerhoek on N4

General 2012 forecast and beyond, continued Transnet (PRASA) • • Portnet (Dry docks and general harbour upgrades) Petronet (Refined product line from Maputo) • Coega •  Refinery  Smelter • Expansion in Resource Arena  Iron ore and manganese  Coal  Platinum Mozambique Gasline (Temani Gas Fields) • • African New Markets  Ghana  Mozambique  Kenya Gautrain Private Development Spinoff • • Private & Commercial Developments

CAPEX Segments Financial years (R ‘000’s) 2011 2010 2009 Geotechnical 11 792 42 727 163 831 Civils 17 964 49 711 14 435 6 104 3 096 8 824 Pipelines Corporate 14 512 500 1 265 Total 50 372 96 034 188 355 South Africa 47 509 58 097 139 766 Sub-Sahara 2 863 37 937 48 589

CAPEX requirements for 2012 • Geotechnical – nothing specific • Civils – site specific (hire where possible)  K71/R55 (24 months)  N4 (30 months)  Mocambique (5 years)  Kusile (30 months)  Maintenance capex • Pipelines  Western Aqueduct (48 months)  Maintenance capex

Contact details Bernie Krone, CEO +27 83 259 2584 +27 11 822 3906 +27 11 822 1158 bernie.krone@esorfranki.co.za Wayne van Houten, CFO +27 84 556 2486 +27 11 822 3906 +27 11 822 1158 wayne.vanhouten@esorfranki.co.za Esorfranki Limited 30 Activia road Activia Park Germiston 1401 PO Box 6478 Dunswart 1508 South Africa