Annual results presentation

1. Annual results presentation 2012 For the year ending 29 February 2012

3. INTRODUCTION • SALIENT FEATURES • SUSTAINABILITY ACHIEVEMENTS • FINANCIAL REVIEW • STRATEGY • Short-term challenges & progress • Medium to long-term strategy • OPERATIONAL REVIEW • Products, services & clients • Competitors & value proposition • Geographical footprint and key contracts • RISK MANAGEMENT • SEGMENTAL REVIEW • ORDERBOOK & OUTLOOK • CAPEX • CONCLUSION TABLE OF CONTENTS

4. INTRODUCTION “EVERYTHING I REALLY NEED TO KNOW I LEARNED IN KINDERGARTEN” Robert Fulghum

5. “Everything I really need to know I learned in Kindergarten” • This passage was written by Robert Fulghum in trying to establish a Credo by which to live and I believe it provides the means for humanity to solve the world’s problems and should form the basis of every Integrated Report. It is entitled: • ALL I REALLY NEED TO KNOW I LEARNED IN KINDERGARTEN • ”All I really need to know about how to live and what to do and how to be I learned in Kindergarten. Wisdom was not at the top of the graduate-school mountain, but there in the Sunday School sand-pile. These are the things I learned: • Share everything • Play fair • Don’t hit people • Put things back where you found them • Clean up your own mess

6. “Everything I really need to know I learned in Kindergarten” • Don’t take things that aren’t yours • Say you’re sorry when you hurt somebody • Wash your hands before you eat • Flush • Warm cookies and cold milk are good for you • Live a balanced life – learn some and think some and draw and paint and sing and dance and play and work every day some. • Take a nap every afternoon • When you go out into the world, watch out for traffic, hold hands and stick together • Be aware of wonder.

7. “Everything I really need to know I learned in Kindergarten” • “Remember that little seed in the Styrofoam cup – the roots go down and the plant goes up and nobody really knows how or why, but we are all like that. Goldfish and hamsters and white mice and even the little seed in the Styrofoam cup – they all die. So do we. And then remember the Dick-and-Jane books and the first word you learned – the biggest word of all – LOOK.” • “Everything you need to know is in there somewhere. The Golden Rule, love, basic sanitation, ecology, politics, equality and sane living. • Take any one of these items and extrapolate it into sophisticated adult terms and apply it to your family life or your work or your government or your world and it holds true and clear and firm. • Think what a better world it would be if we all – the whole world – had cookies and milk about three o’clock every afternoon and then lay down with our blankets for a nap. Or if all governments had as a basic policy to always put things back where they found them and to clean up their own mess. • And it is still true no matter how old you are – when you go out into the world, it is best to hold hands, stick together and LOOK.” • By Robert Fulghum

8. SALIENT FEATURES “Be aware of wonder.”

9. Salient Features – 29 February 2012 • Revenue up 30% to R1.8bn (2011:R1.4bn) • EBITDA up 170% to R132.6 m (2011:R49.1m) • Headline earnings up 163% to R24m (2011:R37.8m loss) • HEPS up 148% to 6.2cents (2011:12.9 cents loss) • PAT up 145% to R18.2m (2011:R40.8m loss) • EPS up 134% to 4.7cents (2011:13.9 cents loss) • Order book up 21% to R1.8b (2011:R1.45b) • Operating cash increased by R66.1m to R124.2m

10. Sustainability Achievements – “Put things back where you found them, clean up your own mess.” • We have had a successful return to profitability in H2 FY 2012 • Our rights offer has been completed • Acquisition-based debt has been settled • We now have a single amalgamated operating entity • Our order book has been strengthened • We have expanded into Ghana and Uganda • ISO 9001 accreditation has been obtained in all divisions • Our LTIFR of 0.75 is significantly better than the industry norm of 1.33 • EsorfrankiCivils’ capital acquisition programme has been successfully implemented • Historical loss-making contracts in all divisions have been concluded • Numerous insurance claims impacting cash flows on certain projects have been resolved • We have retained key staff

11. FINANCIAL REVIEW 29 February 2012“Don’t take things that don’t belong to you.”

12. Statement of Financial Position Salient Features as at 29 February 2012:

13. Total assets PPE Cash reserves Equity Statement of Financial PositionSalient Features (1 March 2011 – 29 February 2012)

14. Statement of Income Salient Features

15. STRATEGY“Live a balanced life – learn some and think some and draw and paint and sing and dance and play and work every day some.!”

16. Short-Term Challenges & Progress • CHALLENGE • Severe slowdown in public sector infrastructure spend (large scale projects) • PROGRESS • Management intervention to improve profitability and synergy of divisions by focusing on cost structures, tender submissions and contract execution • Expansion into Ghana and Uganda (Esorfranki Geotechnical) • Private sector clients targeted and market share grown through efficient project execution, high safety standards and timeous delivery • Articles published in major industry journals to enhance brand awareness • CHALLENGE • B-BBEE focus • PROGRESS • Level 4 B-BBEE certification maintained

17. Short-Term Challenges & Progress • CHALLENGE • Price competitive environment and increasingly difficult contract terms and conditions • PROGRESS • Project execution capabilities improved • Contract portfolio reviewed and restored to profitability by improving cost reporting standards and standardising policies and procedures across all divisions • Civil plant capacity expansion (enhancing efficiency and resource optimisation) • Focus on brand awareness • Group operations integrated into a single entity to harness cost effectiveness and standardisation • Group driven by common values, business philosophies and practices • Resources rationalised to enhance shared values and cohesiveness

18. Short-Term Challenges & Progress • CHALLENGE • Organisational development • PROGRESS • Succession and development plans implemented • CHALLENGE • The Competition Commission investigation into alleged anti-competitive behaviour in the piling and drilling markets is currently inactive after having the matter referred to a tribunal following a failed settlement offer to the Commissioner. • PROGRESS • The board has raised an estimated provision in the financial statements for the likely penalty. • During the recent fast track settlement process offered to the construction industry EsorfrankiLimited filed one marker relating to a prescribed offence • Esorfranki was further mistakenly implicated in one other instance relating to Shearwater prior to acquisition • Any further developments will be communicated to all stakeholders as they occur.

19. Short-Term Challenges & Progress • CHALLENGE • Delayed payment cycles from government and main contractors • PROGRESS • Significant advance payments on foreign contracts secured • Strict working capital management and reporting enforced • Duplicate assets, including business properties realised • Short-term working capital facilities secured to accommodate growth and delayed payment cycles • Rights issue finalised and acquisition-based debt settled • Capital asset expansion programmes secured on the back of long-term contracts, boosting price competitiveness and efficiency and plant resource expansion

20. Medium to Long-Term Strategy • Harness synergy within the group • Expand product offering and grow market share • Geographical diversity in Civils and Pipelines • Environmental accreditation ISO 14001, safety accreditation ISO 18001 • Securing long-term contracts to create future visibility and to underpin sustainability • Focus on sustainable growth nodes within government infrastructure programmes • Supply chain management will take cognisance of environmental impact and carbon emissions will be measured and managed • Addressing Construction Charter requirements to improve BEE scoring by 31 December 2013 • Focus on concession and development projects • Focus on private sector clients to balance dependency on government contracts

21. OPERATIONAL REVIEW 29 February 2012“Wash your hands before you eat – flush!”

22. Products & Services Products & Services

23. Clients Clients

24. Competitors and Value Proposition Competitors

25. Value Proposition Value Proposition

26. Geographical footprint New awards in Kenya & Uganda Currently working in Ghana on 3 contracts.

27. Geotechnical - Key Contracts

28. Pipelines - Key Contracts

29. Civils - Key Contracts

30. RISK MANAGEMENT “When you go out into the world, watch out for traffic, hold hands and stick together!”

31. Matrix of Major Risks

32. Risk Management Management Contracts

33. SEGMENTAL REVIEW

34. Segmental Review - Geotechnical

35. Segmental Review - Pipelines

36. Segmental Review - Civils

37. ORDER BOOK AND OUTLOOK“Cookies and warm milk are good for you!”

38. Order book as at 29 February 2012

39. Geotechnical Outlook as at 29 Feb 2012 Johannesburg Cape Town (including Ghana) Angola Durban, Mozambique, Tanzania & East Coast Mauritius

40. Pipelines Outlook as at 29 Feb 2012 Current contracts Pending & potential awards Key contracts

41. Civils Outlook as at 29 Feb 2012 Current contracts rolled over from last year as at 29 Feb 2012 Roads Kusile Mine work at Xstrata & Anglo Coal Building General

42. Civils Outlook as at 29 Feb 2012 Pending awards and targeted key contracts Roads Kusile Mine work at Anglo Coal Building General

43. General Outlook 2013FY and beyond Gautrain Private Development Spinoff Resource Arena General

44. General Outlook 2013FY and beyond Energy sector Sanral & other roads Other parastatals

45. CAPEX“Share everything!”

46. Capex

47. CONCLUSIONHaving successfully turned the corner, we find ourselves leaner, meaner, happier, more focused and realistically bullish for the future of Esorfranki Limited and all its stakeholders!THANK YOU

48. Disclaimer • Forward-looking statements • This presentation contains forward-looking statements that, unless otherwise indicated, reflect the company’s expectations as at 29 February 2012. Actual results may differ materially from the company’s expectations if known and unknown risks or uncertainties affect its business or if estimates or assumptions prove inaccurate. The company cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. The company disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available as a result of future events or for any other reason.

49. Esorfranki Limited | 30 ActiviaRoad Activia Park Germiston 1401 PO Box 6478 Dunswart 1508 South Africa Bernie Krone| CEO Wayne van Houten| CFO + 27 83 259 2584 + 27 84 556 2486 +27 11 776 8700 +27 11 776 8700 +27 11 822 1158 +27 11 822 1158 Bernie.krone@esorfranki.co.za Wayne.vanhouten@esorfranki.co.za www.esorfranki.co.za