ANNEXURE 3 – GROUP SEGMENTAL REPORT

The operating segments reflect the management structure of the Group and the manner in which performance is evaluated and resources allocated as managed by the Group’s chief decision maker, as required per revised IFRS 8: Operating Segments.

The Group’s operating segments are categorised as follows:

Construction Africa and Middle East

The Construction Africa and Middle East operating segment comprises of the following elements:

	SADC Construction engages the large to medium sector building, civil engineering, industrial and roads & earthworks construction markets of South Africa, Botswana and Namibia and pursues selected project opportunities elsewhere in SADC
	Middle East market is coordinated out of Dubai in the United Arab Emirates and projects are engaged through separate companies established in each jurisdiction and in joint venture with appropriate local partners. The primary market focus is major commercial facilities and selected infrastructure projects
	Marine engages the Africa, Middle East and Australasia markets to design and construct the marine infrastructure
	PPP Investments & Services includes the Tolcon Group of companies who operate various tollroad and rail concessions throughout South Africa and investment in selected concession companies

Engineering Africa engages large scale engineer, procure, construct and manage (“EPCM”) and engineer, procure and construct (“EPC”) projects in the industrial, mining and power markets.

Construction Products Africa manufacture and supply value-added construction products to the infrastructure and building markets of South Africa and the rest of Africa. Principal raw material inputs are steel, cement, aggregate, bitumen and clay.

Construction Global Underground Mining comprises of five constituents based in Johannesburg South Africa, North Bay in Ontario Canada, Salt Lake City USA, Kalgoorlie Western Australia and Santiago Chile which are coordinated out of London. The segment provides specialist engineering, construction and operational services in the underground mining environment worldwide.

Construction Australasia Oil & Gas and Minerals is based in Perth, Western Australia and delivers a variety of engineering, procurement and construction services.

Inter-segment transfers

Segment revenue, segment expenses and segment results include transfers between operating segments and between geographical segments. Such transfers are accounted for at arms-length prices. These transfers are eliminated on consolidation.

Segmental revenue and expenses

All segment revenue and expenses are directly attributable to the segments.

Segmental assets

All operating assets used by a segment, principally property, plant and equipment, investments, inventories, contracts-in-progress and receivables, net of allowances. Cash and taxation balances are excluded. Segment assets are allocated to the geographic segments based on where the assets are located.

Segmental liabilities

All operating liabilities of a segment, principally accounts payable, subcontractor liabilities and external interest bearing borrowings. Bank overdrafts and taxation balances are excluded.

ALL MONETARY AMOUNTS ARE EXPRESSED IN MILLIONS OF RANDS	Construction Africa and Middle East	Engineering Africa	Construction Products Africa	Construction Global Underground Mining	Construction Australasia Oil & Gas and Minerals	Corporate and Properties	Group
2012
Revenue*	8 108	5 213	3 738	9 859	8 484	4	35 406
Inter-segmental revenue	57	36	28	27	10	–	158
Gross revenue	8 165	5 249	3 766	9 886	8 494	4	35 564
Results
(Loss)/profit before interest and taxation	(1 317)	200	197	605	286	(132)	(161)
Net interest (expense)/income	(69)	(71)	(122)	(1)	28	(13)	(248)
(Loss)/profit before taxation	(1 386)	129	75	604	314	(145)	(409)
Taxation (expense)/credit	(79)	(61)	(15)	(177)	(53)	140	(245)
(Loss)/profit after taxation	(1 465)	68	60	427	261	(5)	(654)
Income from equity accounted investments	9	–	–	–	134	–	143
(Loss)/profit from discontinued operations	(1)	–	(78)	–	(60)	58	(81)
Non-controlling interests	(9)	(4)	(1)	1	(131)	–	(144)
(Loss)/profit attributable to owners of
Murray & Roberts Holdings Limited	(1 466)	64	(19)	428	204	53	(736)
2011
Revenue*	9 108	4 094	4 157	7 789	5 387	–	30 535
Inter-segmental revenue	3	189	58	22	12	–	284
Gross revenue	9 111	4 283	4 215	7 811	5 399	–	30 819
Results
(Loss)/profit before interest and taxation	(1 399)	(51)	192	602	269	(291)	(678)
Net interest (expense)/income	(44)	(19)	(189)	14	29	15	(194)
(Loss)/profit before taxation	(1 443)	(70)	3	616	298	(276)	(872)
Taxation (expense)/credit	(106)	98	(1)	(189)	(17)	19	(196)
(Loss)/profit after taxation	(1 549)	28	2	427	281	(257)	(1 068)
(Loss)/income from equity accounted investments	(2)	–	(12)	–	91	9	86
(Loss)/profit from discontinued operations	(132)	–	(517)	–	(45)	28	(666)
Non-controlling interests	(6)	(4)	6	3	(86)	–	(87)
(Loss)/profit attributable to owners of
Murray & Roberts Holdings Limited	(1 689)	24	(521)	430	241	(220)	(1 735)

* Segmental revenue reported above represents revenue generated from external customers.

ALL MONETARY AMOUNTS ARE EXPRESSED IN MILLIONS OF RANDS	Notes	Construction Africa and Middle East	Engineering Africa	Construction Products Africa	Construction Global Underground Mining	Construction Australasia Oil & Gas and Minerals	Corporate and Properties	Group
Operating segments
2012
Statement of financial position
Segmental assets	1	5 683	2 102	2 755	3 606	3 995	188	18 329
Segmental liabilities	2	5 086	1 792	1 169	2 312	2 906	1 650	14 915
Investments in associate companies*		30	–	–	–	855	–	885
Assets classified as held-for-sale*		32	–	656	–	185	32	905
Liabilities directly associated with a disposal group
held-for-sale*		–	–	211	–	38	–	249
Other information
Purchases of property, plant and equipment		174	67	79	548	72	19	959
Purchases of other intangible assets		1	–	–	4	10	2	17
Depreciation		141	140	82	250	31	21	665
Amortisation of other intangible assets		8	1	–	10	2	4	25
Impairment of property, plant and equipment		1	–	30	–	–	–	31
Reversal of impairment on property, plant and equipment		4	–	2	1	–	–	7
Impairment of receivables		19	2	36	1	4	–	62
People		7 723	8 283	5 191	18 613	4 785	115	44 710
2011
Statement of financial position
Segmental assets	1	5 201	1 241	3 166	2 708	3 354	236	15 906
Segmental liabilities	2	5 300	1 224	1 448	1 708	2 039	2 046	13 765
Investments in associate companies*		35	–	2	–	527	–	564
Assets classified as held-for-sale*		505	–	1 026	–	1 298	31	2 860
Liabilities directly associated with a disposal group held-
for-sale*		123	–	395	–	663	1	1 182
Other information
Purchases of property, plant and equipment		132	174	76	356	80	14	832
Purchases of other intangible assets		1	–	–	4	3	4	12
Depreciation		164	86	121	173	65	20	629
Amortisation of other intangible assets		3	1	1	9	8	4	26
Impairment of property, plant and equipment		–	–	270	7	–	23	300
Reversal of impairment on property, plant and equipment		–	–	–	22	–	–	22
Impairment of receivables		568	–	107	–	–	–	675
People		10 140	5 193	6 377	16 952	3 636	124	42 422

* Amounts included in segmental assets and liabilities.
** Corporate segmental assets include the inter-segment eliminations of group loans and receivables.

	ALL MONETARY AMOUNTS ARE EXPRESSED IN MILLIONS OF RANDS	2012	2011
	NOTES
1.	RECONCILIATION OF SEGMENTAL ASSETS
	Total assets	22 442	19 560
	Cash and cash equivalents	(3 388)	(3 101)
	Current taxation assets	(91)	(83)
	Deferred taxation assets	(634)	(470)
	Segmental assets	18 329	15 906
2.	RECONCILIATION OF SEGMENTAL LIABILITIES
	Total liabilities	15 340	14 239
	Bank overdrafts	(39)	(47)
	Current taxation liabilities	(175)	(116)
	Deferred taxation liabilities	(211)	(311)
	Segmental liabilities	14 915	13 765

Geographical information

The Group operates in four principal geographical areas – Southern Africa, with South Africa as the country of domicile, Middle East, Australasia & Southeast Asia and North America & other.

The Group’s revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below.

ALL MONETARY AMOUNTS ARE EXPRESSED IN MILLIONS OF RANDS	Revenue		Non-current assets*
ALL MONETARY AMOUNTS ARE EXPRESSED IN MILLIONS OF RANDS	2012	2011	2012	2011
Southern Africa	20 504	18 479	4 635	3 833
Middle East	1 356	2 494	1 182	12
Australasia & Southeast Asia	10 332	7 276	1 424	882
North America & other	3 214	2 286	519	366
	35 406	30 536	7 760	5 093

* Non-current assets exclude deferred tax assets.

Major customers

There were no customers in the year under review or in the prior year that individually made up greater than 10% of the Group’s revenue.