Protech Khuthele Holdings Limited –International Group of Companies
2 Group OverviewProtech Khuthele is a broad based civil engineering group with a specific Emphasis on fast-track contracting.The group offers bulk earthworks, civil works and services, mining-related infrastructure development andopencast mining, ground improvement solutions, as well as readymix concrete and Pumping services.Backed by world leading technologies, has a highly specialized team of industry professionals,Protech Khuthele is structured to deliver rapid, quality civil engineering solutions that guaranteeaccelerated contract timeframes and significant savings to clients.Protech Khuthele was established in 1989 and has built a strong reputation based on an un-paralleled ability to deliver fast-track contracting solutions. The Group guarantees to commenceWork within 24-48 hours after being awarded a contract and to complete ahead of schedule.The group’s client service model includes engaging at a very early stage of the design and costingphases, which results in cost benefits for clients.
3AUDITED CONSOLIDATED RESULTS FORIntroduction 28 FEBRUARY 2009THE YEAR ENDED
4 Group focus sectors Public infrastructure Ports, airports, roads and dams Private property Commercial, retail & industrial Mining Infrastructure development & opencast mining Agriculture CommercialIntroduction
6AUDITED CONSOLIDATED RESULTS FORGroup delivery model 2009THE YEAR ENDED 28 FEBRUARY
7 Group delivery modelReputation as fastest in sector Guaranteed to be on site in 24-48 hrs anywhere in RSA 100% track record for finishing on or ahead of schedule Proactively manage adversities Effective delivery Strategically positioned borrow & spoil facilities Proven quality assurance: Compete on reputation 20 years’ experience Expertise across civil engineering Quality fleet = no downtime Focused on solutions: Early engagement leads to unique solutions Cost and time savings for clients Not claims orientated The group’s service delivery model has been developed and tailored over 21 years. Introduction
8 Largest customers Blue chip client base: bad debts < 1% of revenue Royal Bafokeng AdministrationGroup Outlook
9Business organisation and services Mining Plant and INFRASTRUCTURE DEVELOPMENT & REHABILITATION ReadymixCivils Logistics Site clearance SUPPLY OF READYMIXBULK EXCAVATIONS & Service and access roads CONCRETEEARTHWORKS Haul road construction & rehabilitation Concrete pumping services Site clearance Soil suppression, weatherproofing with environmental Specialised concrete services Demolitions carbon emission reduction Bulk earthworks, terraces and Ground Storm water & retention dams platforms Basement excavations Improvement Installation of bulk services Mine rehabilitation Canal/river deviation Solutions Dragline path preparation Concrete bridges Impact Compaction Pollution Control dams & attenuation ponds Crushing and screening & Soil Suppression Tailings dams & maintenance Landfill rehabilitation Processing and compaction of platforms & terraces OPENCAST MININGROADS & CIVILS Bulk sampling New roads & road Drilling & blasting rehabilitation South African Top soil stripping Bulk infrastructure services Road Testing Box cut & excavations Dams and attenuation ponds Airports, airfields & rail Services Mining of reef & dump Harbor and reclamation works Geotechnical Crushing & screening Laboratories Materials handling Bridges & concrete structures & Surveying Coal discard compaction Compaction of rock fill & landfill sites PROTECH KHUTHELE (PTY) LTD Value Engineered Solutions
10 Business offering Protech Khuthele (Pty) Ltd Bulk Excavations, civils, infrastructure development and opencast mining Established in 1989, Protech Khuthele (Pty) Ltd is wholly-owned by Protech Khuthele Holdings. As the contracting division, Protech Khuthele forms the core of the group and enjoys the guaranteed support and services of the internal group of companies, including Pela Plant (plant and equipment), SARTS (geotechnical laboratory services and surveying) and Ground Improvement Solutions (soil compaction). Protech Khuthele has repeatedly demonstrated its ability to develop innovative solutions to unique challenges in partner - ship with its clients. The company has built a strong reputation for fast track ability and achieving contract completion ahead of schedule – a cornerstone of its service delivery model and success. Specialist capabilities include: Bulk earthworks and basement excavations Mine infrastructure development Roads, bridges and related services Opencast mining Ports Materials handling and mine rehabilitation Airport runways and airfields Tailings and pollution control dams Dams and coastal reclamations Township infrastructure development and bulk services Haul road construction and rehabilitationIntroduction
11 Business offering Specialist compaction and certification technologies Ground improvement solutions Ground Improvement Solutions (GIS) specialises in offering the civil, building and mining industries specialised ground improvement solutions through the application of common and unique ground improvement tools. The company’s technical knowledge allows involvement at the critical conceptual and design stages of projects, assuring customers of superior ground improvement with added value solutions that deliver competent bearing strata with low life cycle costs. Ground Improvement Solutions’ service offering to the market includes: Ground improvement contracting ‒ Through alternative recommended design parameters and the provision of process certification and geotechnical testing. This includes new methodologies developed by using impact compaction coupled with other complementary technologies. ‒ Through sub-contracting using pre-specified impact compaction in accordance with specifications established by consulting engineers. Full scope of civil works Supply of impact compaction plant hire The technology of impact compaction, a unique technology offering alternative methodologies with time, cost and quality benefits is supported by a unique certification tool, called the Continuous Impact Response (CIR) measurement system, ultimately offering the industry a method of accurately controlling and certifying the impact compaction process. With emphasis on growth opportunities and through research and development, alliances, partnerships and acquisitions, GIS is continuously driven to grow the range of innovative ground improvement products and services, maintaining a high quality service to the industry both locally and globally.Introduction
12Business offeringGround improvement solutions (cont.) Specialist applications of the technologies include: Deep in situ ground improvement Thick-lift compaction Pavement rehabilitation alternatives Treatment of dry materials Compaction of rockfill Treatment of marine sands Treatment of dolomitic material Treatment of material with a high collapse potential Treatment of unsurfaced roads Treatment of airport runways and terminals Coal discard compaction Permeability reduction Compaction of landfills For more information log on to www.gimpsol.com
13 Business offering Pela Plant(Pty) Ltd Plant hire and logistical services Pela Plant (Pela) supplies premium plant and equipment, as well as logistical services, such as transport and diesel supply, to Protech Khuthele, Protech Readymix and Ground Improvement Solutions. Pela Plant plays a key role in guaranteeing the contracting division’s timeous delivery on contracts. Pela’s unique plant policy of replacing plant and equipment after two years or 4 000 hours, and trucks after 150 000 kilometres or three years, guarantees 100% availability with maximum utilisation and minimal downtime. Although this business mainly services the Protech Khuthele group, Pela Plant also offers plant hire and logistical services to third parties. The business has: Only premium brands (Bell, Hitachi and Mercedes Benz) Plant that includes excavators, front-end loaders, lowbed trucks, dozers, tipper trucks, crane trucks, graders, A fleet in excess of 300 units, with each item of plant rollers, crushers and screeners, water trucks, dump fully backed by extended manufacturer warranties trucks and concrete mixer trucksIntroduction
14 Business offering Protech Readymix (Pty) Ltd Supplier of readymix concrete Acquired by Protech Khuthele in 2008, Protech Readymix manufactures and delivers readymix concrete and concrete pumping services. The company operates six readymix batch plants, situated strategically throughout Gauteng. Each plant is supported by computer controlled batching operations, assuring customers of precisely metered and quality controlled concrete to meet their specific requirements. We operate a state of the art fleet in excess of 60 owned mixer trucks which is supported by a substantial sub-contracted fleet. As an extension to our concrete supply, Protech Readymix is able to deliver special pump mixes to great heights and restricted areas by means of its boom pumps capable of pumping up to 90 m³ per hour. The Company with its shortest lead time in the industry is capable of producing an extensive range of concrete solutions from residential to commercial and industrial applications such as but not limited to: Air-entrained concrete No-fines concrete Cellular lightweight concrete Screed mixes Concrete mixes for pumping Self compacting concrete Fibre-reinforced concrete Soilcrete High and low density concrete Waterproof concrete Routine testing is carried out to comply with SANS standardsIntroduction
15 Business offering South African Road Testing Services (Pty) Ltd Geotechnical laboratory and survey services South African Road Testing Services (SARTS) was established in 1995 to overcome delays from previously out sourced laboratory services. The company delivers exceptional services to contractors and consulting engineers in the areas of survey and soil investigation and analysis, quality control and testing for associated earthworks, roadworks and impact compaction contracts. This business has an established strategy of highly efficient service delivery to allow Protech Khuthele to accelerate contract completion. The group delivers on this strategy through a talented and experienced team with world-class equipment, services and standards. SARTS laboratory is SANAS accredited and confirms the prestigious recognition of the company’s ability. Specialist capabilities include: Soil testing services and quality control testing Site surveying that includes setting out, levelling, digital On-site mobile laboratories to support and expedite the terrain modelling and quantity surveying services of the parent laboratory, all fully equipped and Borrow pit investigations that include geotechnical and capable to perform specialised tests surveyed quantities State of the Art surveying equipment including GPS State-of-the-art laboratories that perform tests such as survey systems and GPS machine control systems compaction tests, nuclear density tests and sand replacement density tests and quality control testingIntroduction
16Protech Khuthele is structured to deliver qualitycivil engineering solutions
17Case studies Goedgevonden Protech Khuthele has been involved in seven core contracts at Goedgevonden, an opencast coal mine situated near Ogies in Mpumalanga, operated by Xstrata Coal SA. Protech Khuthele’s combined contracts value is in excess of R210 million. The contracts started in August 2007 and were completed by November 2009, these included access roads, new provincial roads, the upgrade of existing haul roads and the development of bridges, a retaining dam, a run of mine (ROM) platform and overland pipelines as well as topsoil & overburden stripping. The Goedgevonden contracts illustrate the success of the group’s effective partnership model and its ability to deliver services according to evolving client specifications and contract timeframes. Protech Khuthele’s involvement with Goedgevonden began as a R28 million road diversion contract, where six kilometres of new provincial road were constructed to free up coal resources for the mine occupied by the existing provincial road. The contract value then increased to R79 million as the contract was expanded with additional works and design changes due to the highly saturated ground conditions. The group’s fast-track ability and flexibility to adapt to changes was central to its ability to meet the changing scope of the contract and to accelerate timeframes according to the client’s request. Handover dates of the new road were re-negotiated and a phased handover with accelerated dates was implemented. Protech Khuthele’s success in handing over both phases ahead of the client’s accelerated schedule meant that Xstrata enjoyed early access to parts of the plant that fell on critical delivery paths. This included the construction of a railway line and the freeing up of reserves, thereby minimising production impact. The mine road upgrades were done without affecting the smooth running of the mine’s operations and within very strict safety guidelines. Earthworks for a storm water retaining dam of 20 million litres were done during the above-average summer rainfall conditions, and this, together with the installation of an overland pipeline, further added to the value of work awarded. The ROM platform was done in partnership with the client, resulting in a unique construction solution and further time saving for the client. Throughout these construction activities, the topsoil stripping above the coal reserves continued. Protech Khuthele stripped on average 250 000 tons of topsoil per month, placing this on stockpile for re-use during the rehabilitation of the mine. Protech Khuthele’s world- leading impact compaction technology added further cost and time savings for the client.
18Case studies Waterkloof Airforce Base The Waterkloof Airforce Base reconstruction is a R730 million public works contract. Protech Khuthele is part of the Runway Contractors Joint Venture. The group is involved in the construction of the 3,4 kilometre runway, as well as taxiways, up to sub-base level (i.e. all earthworks related construction activities). The contract commenced in July 2008 and is scheduled to conclude at the end of 2010. Protech Khuthele’s expertise in materials management has been an integral part of the contract. It is utilising both crushing and screening to recycle as much existing material as possible and to modify this material for optimal re-use, a Protech Khuthele speciality. The group’s top quality fleet enabled the use of crushing and screening operations to aid in this materials modification process. The group was instrumental in construction methodology changes that resulted in further significant time saving. In addition, the use of Protech Khuthele’s world-leading impact compaction technology again proved to be central to its ability to further accelerate timeframes. The group also developed an innovative and alternative method of constructing the upper layer works, leading to even more time savings on the contract in accordance with the client’s request for accelerated delivery. Based on the group’s innovation, the contract was accelerated by two months for an earlier completion date of the main runway.
19Case studies Gautrain Protech Khuthele is responsible for the earthworks for the Bombela Consortium Gautrain Rapid Railway Link between Modderfontein Road and the OR Tambo International Airport. The contract value is around R90 million. This contract is an example of the group’s ability to work under very challenging conditions, with much poorer soil quality than anticipated and a higher than expected rainfall, leading to an increase in the value and scope of work by 30% following the start of the contract. Protech Khuthele is never the less still within the client’s required timeframe due to its proven ability of fast-tracking contracts. The contract, scheduled to be concluded in mid 2009, involves 5,5 kilometres of earthworks for the rail formation. The contract is also a good example of the group’s ability to perform a wide range of services within the civil engineering industry. Key components of the contract involve 275 000 m³ of cut and fill with a zero tolerance for settlement of material, 65 000 linear metres of ducting for services, 5 200 m of sub-soil drainage, 6 750 m² of reinforced earth walling and 90 000 m³ of backfilling to viaducts, as well as 22 000 m³ of layer works and over 10 kilometres of concrete lined channels and open drains. Significant sub-surface drainage and earthworks were required, with the terrain offering challenges such as rock blasting in restricted areas, sub-surface water, saturated soil conditions and material generally unsuitable for re-use. Hauling material from as far as 23 kilometres in busy traffic and the construction of a rail formation over busy roads also made the earthworks more challenging. The Protech Khuthele impact compaction technology was again critical to achieving time savings on bulk fills. Gautrain is an example of the group’s ability to work under very challenging conditions, with much poorer soil quality than anticipated and a higher than expected rainfall.
20Sustainability overview At Protech Khuthele operating responsibly is a business imperative the group does not compromise on. Key focus areas in terms of sustainability are highlighted below.Employee Engagement The group retains and attracts skills due to its policy of regarding people as its primary asset and by treating its employees accordingly. The group has appointed 2 Indian males and 1 Indian female to senior management positions. 37 African male employees moved from junior management to mid management. 170 African males moved from unskilled to semi-skilled positions 364 new Learnerships were offered during the year. A total of 99% were African learnerships with 57% being African women The group’s culture is built on continuous development and training of employees. Training is conducted in the group’s mobile training unit, which allows on-site training and minimal interruption to operations The group awarded 13 bursaries (both internally and externally) to African people, with 39% awarded to African femalesProtech Khuthele’s staff turnover is less than 1% due to a strong corporate culture and a performance-driven approach.
21Sustainability overview (cont) BROAD-BASED BLACK ECONOMIC EMPOWERMENT The group has a strong focus on enterprise development. Protech Khuthele is actively involved with a number of emerging contractors. Where required, financial, commercial and tender support is provided Furthermore, payments to emerging contractors are prioritised to ensure they are paid in less than a week In line with the DTI Codes of Good Practice, Protech Khuthele spent 1% of net profit after tax during the 2009 financial year on socio economic development programmes Protech Khuthele is a Level 4 B-BBEE contributor rated by an accredited agency
22Sustainability overview (cont) SAFETY, HEALTH, ENVIRONMENT AND QUALITYSafety Protech Khuthele implemented a formal safety, health and environmental (SHE) policy in 2002. This policy is updated on an annual basis. A formal SHEC System was implemented in 2006. Up to 2010 this system was reviewed on an annual basis to ensure compliance. The system is based on ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:2007 Furthermore, as Protech Khuthele’s mining sector work increased strongly, the group is in the process of generating a separate SHEC system focused on specific mining requirements, this system has been implemented on various mining projects with great success. We have received various awards from different clients for exceptional safety performance as a company and some individuals also received awards for their performance. The group’s SHEQ system is mandatory on all sites and is used to enforce no harm to our employees, contractors, environment and communities affected by our operations. During the 2010 financial year, we pleasingly beat our goal by achieving a LTIFR of 0,41. To date we are still on 0 Fatalities and 0 Disabling InjuriesSince inception the group has had an exceptional safety record, we continue with our excellent track record.
23Sustainability overview (cont) PROTECH KHUTHELE AWARDS2008 Xstrata 2009 BHP Billiton 2010 DRA/BHP BillitonGoedgevonden Colliery Douglas Colliery Douglas Colliery0% LTI Noteworthy Award 500 000 LTI FreeProtech Award Protech Award Protech Award PROJECT AWARDS2009 Bateman/BHP Billiton 2009 Bombela 2009 BombelaDouglas Colliery Gautrain Gautrain250 000 LTF Free 1.5 MN LTI Free 2 MN LTI FreeProject Award Project Award Project Award2009 Department of Public Works 2010 Bateman/BHP BillitonWaterkloof Air Force Base Douglas Colliery1 MN LTI Free 1 MN LTI FreeProject Award Project Award
24Sustainability overview (cont) SAFETY, HEALTH, ENVIRONMENT AND QUALITY A formal Occupational Health and Safety policy is in place and reviewed regularly. Protech Khuthele currently conducts 90% of its own medical fitness examinations, through the group’s in house primary healthcare clinic allowing a very hands-on approach in terms of medical assistance and/or chronic medication.Health Health and wellbeing of employees is a key objective at Protech Khuthele backed by a formal occupational health programme managed by our occupational health practitioner. Medical tests are conducted to ensure a good level of health from potential employees. Medicals are also repeated annually on all employees to monitor and identify any health problems timorously and to assist employees where necessary. Primary healthcare is also available at Protech Khuthele’s Occupational Health Centre for minor treating, illnesses and chronic illnesses. Serious illnesses are referred to specialists for treatment. Protech Khuthele is also involved in the Rafilwe Community Centre which offers HIV counselling. HIV testing is also offered to all our employees in the strictest confidence so as to encourage early diagnosis and treatment.
25Sustainability overview (cont) SAFETY, HEALTH, ENVIRONMENT AND QUALITY The group’s environmental programme is based on the principles of ISO 14001:2004Environment – the group’s actions include Environmentally friendly materials are used to clean plant and equipment. Hazardous chemicals are used within strict regulations. The group’s plant policy of only using new equipment means that smaller quantities of lubricants need to be kept in stock, as maintenance work is carried out by the group’s service providers. New plant and equipment result in less noise and air pollution, as well as improved fuel and lubricant consumption – Tier 3 emission-certified engines result in lower emissions. Site camps are fenced to keep activities that could cause disturbance inside a specific area. Traffic management plans keep operators on designated haul roads to keep surrounding areas undisturbed. Hazardous waste on sites is collected and recycled by an accredited service provider. Chemical toilets are serviced, with chemicals removed by an accredited service provider. Normal domestic waste is discarded separately and removed from site by an accredited service provider.
27 Relevant Experience 1 GAUTRAIN WATERKLOOF AIRFORCE BASEClient CMC/G4 Joint Venture Client Department of Public WorksValue R90 Million Value R140 Million Construction of 5.5km rail formation 1 400 000 m³ of earthworks for the 500 000 m³ of excavation and fill reconstruction of main runwayScope of works Scope of works 5 000 m² of reinforced earth walling 120 000 m³ of crushing of material Installation of services and sleeves 50 000 m² of raft foundations SALDANHA LAND RECLAMATION ACSA MULTI-STOREY PARKADEClient Transnet Client Airports Company of South AfricaValue R26 Million Value R18 Million 600 000 m³ of backfill reclamation forScope of works Scope of works 45 000 m³ of basement excavation additional stockyard areaIntroduction
28 Relevant Experience 2 GILLOOLY’S ACSA CENTRAL TERMINAL BUILDINGClient Bombela Civils Joint Venture Client Airports Company of South AfricaValue R69 Million Value R15 Million Construction of earthworks and layer works for Gauteng Freeway Improvement Project Between Modderfontein and Gillooly’sScope of works Scope of works 150 000 m³ of basement excavation interchange on N1 Between Gillooly’s and Rietfontein interchange on N12 OLIEVENHOUTBOSCH BAFOKENG SPORTS COMPLEXClient Absa Property Development Client Royal Bafokeng HoldingsValue R8 Million Value R25 Million Construction of 14 sports fields 180 hectare site clearanceScope of works Scope of works Earthworks for new hotel and parking 90 hectare tree removal Access road to sports complexIntroduction
29 Relevant Experience 3 ORLANDO SOCCER STADIUM CENTURION LIFESTYLE SHOPPING CENTREClient City of Johannesburg Client AblandValue R12 Million Value R60 Million Demolition of existing stadium Bulk earthworks for shopping centre 85 000 m³ excavation and fill for stadium platforms and parkingScope of works and parking Scope of works Internal parking and roads 2 500 m³ gabion retaining structure Additional platforms and parking for 25 000 m² impact rolling Phase 2 PUTCO DEPOT ROSEVILLE LENCHEN ROADClient Putco Client AblandValue R23 Million Value R19 Million Bulk earthworks for 110 000 m² platforms Construction of 2 km Lenchen link roadScope of works and parking Scope of works Upgrade of four intersections 70 000 m² of roads and parkingIntroduction
30 Relevant Experience 4 WESTERN LIMB TAILINGS RETREATMENT RE-ALIGHNMENT OF PROVINCIAL ROAD P535-1Client Amplats Client Xstrata Coal SAValue R18 Million Value R79 Million 800 000 m³ of bulk earthworks for Construction of 6 km provincial roadScope of works construction of platform, roads, parking Scope of works 100 000 m³ of bulk fills and tailings dams 57 000 m² of asphalt surfacing KENNEDY’S VALE SPITZKOP NEW MAIN ACCESS ROADClient East Plats Client Xstrata Coal SAValue R58 Million Value R22 Million Construction of platforms and parking for Construction of 2 km new access road new platinum plant Installation of culverts and drainageScope of works Scope of works 100 000 m³ of crushing and screening of Construction of a concrete road over road rock material bridgeIntroduction
31 Relevant Experience 5 DMO – DOUGLAS MIDDLEBURG OPTIMISATION ATTENUATION FACILITYClient BHP Billiton, Group Five, WBHO, Stefanutti Stocks Client Xstrata Coal SAValue R70 Million Value R11 Million Construction of terraces and platforms for new plant Construction of 20 million litre storm waterScope of works Scope of works Installation of bulk services retention dam 7 000 m² structural concrete pavement ROMPAD AND ACCESS ROADS LEEUPAN HAUL ROADClient Xstrata Coal SA Client ExxaroValue R60 Million Value R15 Million 350 000 m³ of engineered fill for ROM platform 1 500 000 m³ of processing and compactionScope of works Scope of works Construction of 3 km mine haul road for platforms Construction of permanent and temporary road for platformsIntroduction
32 Relevant Experience 6 TOPSOIL STRIPPING INYANDA MINEClient Xstrata Coal SA Client ExxaroValue R25 Million Value R30 Million 200 000 m³ bulk earthworks for plant 1 200 000 m³ of topsoil strip,Scope of works Scope of works platforms and terraces prior to mining operation Construction of two attenuation ponds SMOKEY HILLS KUMBA ROAD DELMASClient Platinum Australia Client Kumba ResourcesValue R42 Million Value R35 Million Bulk earthworks for 200 000 m² of platforms and terraces Realignment of 11 km of provincial roadScope of works Upgrading 10 km of district road Scope of works 120 000 m³ of selected layers 70 000 m³ fill to construction of new 120 000 m² of asphalt surfacing access roadIntroduction
33 Relevant Experience 7 HEINEKEN BREWERY TRADE ROUTE MALLClient Heineken Client InvestecValue R16 Million Value R30 Million 72 hectare site clearance 375 000 m³ excavation and fill for building 110 000 m² parking and roadsScope of works Scope of works platforms 20 000 m² of external roads 155 000 m² dynamic compaction BANK CITY BLOCK G MAPONYA MALLClient FNB Client Zen PropValue R7 Million Value R15 Million Bulk earthworks for 70 000 m² platforms Bulk earthworks for 60 000 m² platform and roads and parkingScope of works Scope of works Installation of subsoil, sewer, water and Layer works construction for the parking storm water services areaIntroduction
34 Relevant Experience 8 KEMPTON RETAIL NAMPAKClient Redefine Client ConcorValue R10 Million Value R15 Million Bulk earthworks for 70 000 m² platforms Bulk earthworks for 60 000 m² platform and roads and parkingScope of works Scope of works Installation of subsoil, sewer, water and Layer works construction for the parking storm water services area MONTE CASINO NEW HOTEL AND OFFICE BLOCK PETER MOKABA STADIUM POLOKWANEClient Tsongo Sun/ Abland Client WBHOValue R19 Million Value R12 Million Basement excavation of 70 000 m³ Bulk earthworks for new soccer stadiumScope of works Relocation of existing services Scope of works Storm water control 2 000 m² gravity block retaining wallsIntroduction
35 Relevant Experience 9 MICHELANGELO HOTEL ABSA WESTClient Legacy Hotel Group Client ABSAValue R6.3 Million Value R8.5 Million 50 000 m³ excavation for a 4-level basementScope of works Scope of works 140 000 m³ basement excavation 40 000 m³ of granite hard rock excavated and removed THE SEERS SILVERSTAR CASINOClient Escor Client Akani EgoliValue R14 Million Value R8.5 Million Bulk earthworks for 170 000 m² platforms Demolition of existing 3-storey building 430 000 m³ excavation for platforms andScope of works 75 000 m³ basement excavation Scope of works lake 5 800 m³ of mass concrete backfill 21 000 m³ gabion retaining structure Sewer and storm water installationIntroduction
36 Relevant Experience 10 MARAGA SUGAR MILLS XAI-XAI INTERCHANGEClient Illovo Sugar South Africa Client SBB (N4 Toll road contractor and operator)Value R4 Million Value R97 Million Construction of the Traffic Interchange for Construction of an access road, internal the intersection of the N4 toll corridor and roads and paving the EN1 North to Xai-XaiScope of works Storm water reticulation Scope of works Bulk earth works Bulk Earthworks Storm water reticulation Layer works and paving Sewer reticulation, Layer works, Premix MOS NET MOZAL HARBOURClient Transnet Client MatolaValue R20 Million Value R45 Million Upgrading of import & export harbour – Upgrading of railway lines from Maputo Construction of roads & paving surroundings to Xai-Xai excavations for the Import Yard silosScope of works Bulk fills Scope of works Bulk earthworks, Rock fills Storm water culverts Storm water drainage Cabins Layer works & premixIntroduction
37 Relevant Experience 11 MOZAL KOMATIPOORT TO MAPUTO MAIN ROADClient Mozal Client SBB (N4 Toll Road contractor and operator)Value R20 Million Value xx Million R47 Construction of plant roads, including storm Reconstruction and upgrading of existing water drainage, ducts, kerbing and paving N4 highway Entrance road infrastructure Bulk earthworksScope of works Bulk earthworks Scope of works Storm water reticulation Storm water sewer Tollgates Concrete drains MATOLA ROADS MATOLA HARBOUR ACESS ROADClient Matola Municipality Client MozalValue R35 Million Value R55 Million Rehab of 17 streets in Matola Reconstruction of 2.8 km of access road to Bulk earthworks the Matola Harbour to accommodate heavy Storm water reticulation duty road traffic to and from Mozal projectScope of works Layer works Scope of works Reconstruct layer works, Storm water Premix drainage Sand seal Roads, asphalt paving and surfacingIntroduction
38 Relevant Experience 12 CHISSANO – CHIBUTO ROAD xxClient ANE – Mozambique Government Client xxValue R40 Million Value xx Temporary upgrading, construction and maintenance of existing gravel road between Chissano and Chibuto as a resultScope of works of the closure of the EN1 to Xai-Xai Scope of works xx following year 2000 floods Watering and maintenance Traffic Control xx xxClient xx Client xxValue xx Value xxScope of works xx Scope of works xxIntroduction
39AUDITED CONSOLIDATED RESULTS FORAppendix 1 Summary of competitive advantagesTHE YEAR ENDED 28 FEBRUARY 2009
40 Competitive advantagesAdvantage SubstantiationReputation as Fast Track specialists Protech’s core focus Only new plant with extended warrantees and service plans (replaced every 24/36 months)Plant Policy facilitates Fast Track ability Maintenance & warranty risk offset to suppliers Excellent service level agreements ensure 100% availability Ongoing procurement in anticipation of activityProactive procurement of strategic ―To secure good materialSpoil & Borrow sites ―For value-added disposal of material <1% staff turnoverSkills retention ―Unique culture & flat organisation structureLess affected by contract delays than On and offsite 1stgeneral contractors Quality & size of fleet Entrenchment with customersBarriers to entry Experience & specialist skills base CIDB9CE Rating Empowerment: 30,1% BEE OwnershipCorporate governance Exemplary Health & Safety Record Appendix 1
41AUDITED CONSOLIDATED RESULTS FORAppendix 2 Risk MatrixTHE YEAR ENDED 28 FEBRUARY 2009
42 Risk MatrixRisk factors Mitigating factors To mitigate the risk of plant not being utilised fully, the group follows a strategy of renting in a portionUnder-utilisation of of its fleet from selected external plant hire operators. The rented portion of the fleet serves as a bufferplant and plant in times of strong, as well as weak demand for plant. Rented plant can be hired or returned withinstanding idle 24 hours The group has secured financing facilities of R400,5 million from large financiers. A credit rating isAvailability of financing performed annually by an independent rating agency. In the most recent rating during August 2008, thefacilities group was rated BBB.Competition and The group provides a specialised fast-track contracting solution to its clients. This kind of work ispressure on rates generally less price sensitive than the traditional purely construction-related work.Depressed economy The group has the ability to shift focus between market sectors in three months. A suitable BBBEE rating is essential to secure large contracts. The group is constantly striving to improvePoor BBBEE rating its BBBEE status through focused programmes, particularly in the areas of preferential procurement, enterprise development, skills development and corporate social responsibility projects. As a specialist fast-track contractor, it is imperative that the suppliers to the group are very efficient.Non-delivery of The group therefore forms strategic alliances with suppliers and through continuous interaction withsuppliers them, the efficiency of the supply chain is maintained. The group follows a policy of training and development of employees on a continuous basis. The groupSkills shortage also runs several learnership programmes and has its own mobile training unit. The group has less than 1% staff turnover.Appendix 2