INTERIM RESULTS FOR THE PERIOD ENDING 31 AUGUST

INTERIM RESULTS FOR THE PERIOD ENDING 31 AUGUST 2014

OVERVIEW Highlights Diepsloot partnership Kusile claim finalisation Improved performance Lowlights Loss-making contracts N 4, Kriel, Hwelereng Profitability Trading environment Financial position Gearing Order book NTAV 2

AGENDA • Salient features • Financial overview • Operational overview • Strategy • Prospects and order book • Conclusion 3

SALIENT FEATURES 4

SALIENT FEATURES Revenue Order book Gearing R 0, 8 billion R 2, 4 billion 25, 2% ↓ 22, 2% ↓ 9, 5% ↓ 4, 9% R 1, 0 billion R 2, 6 billion 26, 5% Net cash Health & Safety HEPS* R 50, 7 million LTIFR 0, 39 (6, 59) cents ↑ 142, 6% ↓ 33, 9% ↑ 45, 5% R 20, 9 million LTIFR 0, 59 (4, 53) cents • Revenue impacted by tender/contract cancellations • Slow start at Diepsloot and Western/Northern Aqueduct • Key achievements in Safety accreditation and management * HEPS H 1 2014 restated to include continuing operations 5

SALIENT FEATURES – 2014 LEGACY Kusile • Completed 2/4 work packages – minor claims • Settled claim on underground terraces package with R 20 m reversal • Guarantee of R 100 m cancelled • Received balance of claim in cash • Re-negotiated way forward N 4 • Contract complete – additional R 50 million loss in H 1 2014 Kriel/RAL – Hwelereng • Contracts complete Competition Commission P 25 and P 26 combined Work on Hand in excess of R 900 million 6

FINANCIAL OVERVIEW 7

FINANCIAL RESULTS IN CONTEXT Highlights • Improved performance maintained in Pipelines vs H 2 2014 • Cash generated by operations – R 38, 7 million • Gearing down to 25% • Order book stable at R 2, 4 billion Operating profit of R 40 m excluding N 4 and Kusile 8

STATEMENT OF COMPREHENSIVE INCOME (31 AUG 2014) 2014 R’ 000 2013 R’ 000 789 831 1 014 591 (22, 2) (7 018) 28 008 (125, 1) Depreciation & amortisation (23 920) (36 862) Operating profit (30 938) (8 854) Continuing operations Revenue EBITDA % Change 35, 1 (249, 4) • Revenue down due to consolidation, contract cancellations and delays – mainly civils • EBITDA down on reduced revenue and impact of N 4 (R 50 million) and Kusile (R 20 million) • Depreciation reduced due to reduced capex and realignment of fleet • Operating profit of R 40 million on normalised trading • Retrenchment of 52 employees with a cost of R 1, 5 million 9

STATEMENT OF COMPREHENSIVE INCOME (31 AUG 2014) 2014 R’ 000 2013 R’ 000 789 831 1 014 591 (20, 2) (7 018) 28 008 (125, 1) Depreciation & amortisation (23 920) (36 862) Operating profit (30 938) (8 854) (1 600) (12 607) 87, 3 (32 538) (21 461) 51, 6 Continuing operations Revenue EBITDA Net finance expense Loss before tax Taxation 8 546 Loss from continuing operations (23 992) Headline (loss)/profit attributable to ordinary shareholders (25 139) Diluted weighted average shares in issue 381 747 Diluted HEPS (cents) (6, 59) 6 618 (14 843) 35 % Change 35, 1 (249, 4) 55, 5 (61, 6) - 375 606 0, 01 - • Net finance – HYB repaid and forex effect • HEPS loss of 6, 59 cents vs HEPS loss of 11, 3 cents for FY 2013 10

STATEMENT OF FINANCIAL POSITION (31 AUGUST 2014) Aug 2014 R’ 000 Feb 2014 R’ 000 289 719 320 135 185 062 64 923 Deferred tax 11 393 11 457 Long-term receivables 36 630 32 083 52 days 624 736 in trade receivable 659 928 Property, plant and equipment Intangibles and goodwill Financial asset at fair value Impairment test at Feb 2015 Trade debtors and contracts in progress • Trade debtors and contracts in progress • Trade debtors • Contract in progress • Other receivables 256 183 317 463 333 435 331 488 17 952 10 977 624 736 659 928 Disposed of R 20. 9 million PPE in H 1 2015 11

STATEMENT OF FINANCIAL POSITION (31 AUGUST 2014) Aug 2014 R’ 000 Feb 2014 R’ 000 Property, plant and equipment 289 719 320 135 Intangibles and goodwill 185 062 Financial asset at fair value 64 923 Deferred tax 11 393 11 457 Long-term receivables 36 630 32 083 Trade debtors and contracts in progress 624 736 659 928 Inventories and land for development 228 536 221 345 - 13 455 50 681 40 423 1 491 680 1 548 811 Taxation Cash and cash equivalents Total assets Cash increased by R 29, 8 million 2014 current ratio 1, 53 NTAV/share 162, 8 cents 12

STATEMENT OF FINANCIAL POSITION (31 AUGUST 2014) Aug 2014 R’ 000 Feb 2014 R’ 000 Share capital and reserves 742 475 777 219 Secured borrowings 228 588 237 393 Deferred tax liability 13 863 21 335 - 19 583 22 279 23 424 7 337 19 131 461 321 437 013 15 817 13 713 1 491 680 1 548 811 25, 2% 26, 5% • Long-term 123 372 163 043 • Short-term 105 216 74 350 228 588 237 393 Bank overdraft Preference shares Taxation Trade and other payables Provisions Total equity and liabilities Debt/equity 63 days in trade payables Secured borrowings 13

CASH FLOW 54 413 2 415 4 547 50 681 1 600 20 089 20 840 12 000 2 799 16 948 Cash EBITDA balance at cash items 1 March 2014 9 950 Disposal of fixed assets Acquisition Secured Income tax Working of fixed borrowings refunded capital assets repaid movement Treasury Other shares investments acquired Net interest paid Cash balance at 31 August 2014 14

OPERATIONAL OVERVIEW 15

PIPELINES 2014 R’ 000 2013 R’ 000 318 426 324 590 11 034 31 121 263 611 218 467 1 451 1 266 Revenue growth (1, 9%) 118% Operating margins 3, 47% 9, 6% 604 646 407 693 213 000 485 000 1 295 000 1 540 000 -% -% 100% Revenue PBIT Segment assets Number of employees Order book Pending awards Prospects Non-government Government Improved by 9, 4% compared to H 2 2014 Margins Still between 8% to 10% 16

PIPELINES CONTINUED • Focus on contract start-up at Western and Northern Aqueduct • Delayed awards impacting 2014/15 • On-going commercial settlements • Competition from new entrants (perceived low barrier of entry) • Sanitation project for e. Thekwini still progressing well • Pipejacking awarded substantial work with full order book • Pipejacking - area for growth • Current contracts focussed in KZN Western Aqueduct – Pioneer Road • Cross-border focus - Zambia and Zimbabwe impacting on time and cost • Plant expansion of R 11, 6 million on back of awarded work 17

PIPELINES PROJECTS Xonxa Dam pipeline • Eastern Cape • Installation of 23 km of 600 mm diameter steel pipeline near Queenstown • Contract value › R 70 million • Contract duration › 12 months • Status › Nearing completion 18

PIPELINES PROJECTS Water & Sanitation KZN • e. Thekwini Munincipality • Provision of water and sanitation to informal settlements in e. Thekwini • Contract value › R 200 million • Contract duration › 23 months • Status › Nearing completion 19

PIPELINES PROJECTS Northern Aqueduct – Phase 1 and Augmentation • e. Thekwini Munincipality • Installation of 14 km of 800 mm – 1, 400 mm pipe, from Phoenix to Umhlanga Rocks and Ottawa • Contract value › R 233 million • Contract duration › 18 months • Status › In progress 20

PIPELINES PROJECTS Western Aqueduct – Phases 2&4 • e. Thekwini Munincipality • Installation of 25 km of 1, 000 mm – 1, 400 mm steel pipeline from Pinetown to Ntuzuma • Contract value › R 451 million • Contract duration › 24 months • Status › In progress 21

CIVILS 2014 R’ 000 2013 R’ 000 Revenue 463 426 681 864 PBIT (39 868) (31 575) Segment assets 674 837 987 196 1 586 2 486 (32, 0%) 14% (8, 6%) (4, 6%) Number of employees Revenue growth Operating margins Order book Margin excl N 4 and Kusile 6. 5% 1 021 825 704 014 187 000 837 000 1 296 500 1 500 000 Non-government 20, 2% 28, 2% Government 79, 8% 71, 8% Pending awards Prospects Reduced Workforce by 900 PBIT of R 30 million excluding impact of N 4 losses and Kusile claim settlement 22

CIVILS CONTINUED • Loss-making contract - N 4 • Contracts at Kusile › Underground facilities 57% complete with agreed way forward › General services piping 67% complete (no claims) › Crushing completed and paid › Bulk earthworks - completed with some claims being finalised • Focusing on subsidised housing projects as IA • Contract completion and commercial compensation including Kriel contracts • Plant optimisation under focus • Diepsloot infrastructure work delayed to mid 2015 • Generally tough contracting conditions with fierce competition at tight margins • Still awaiting public sector expenditure to come to market • Cancelled contracts • Consolidating operations 23

CIVILS – N 4 CONTINUED • Contract award 4 May 2011 • Estimated completion 4 November 2013 • Value at award R 370 million vs actual R 340 million • Duration originally 30 months vs actual 42 months • Actual completion 4 November 2014 What happened • Tendered at time of economic crisis at break even • Anticipated/historical productivity never achieved resulting in R 76 million loss on allowable › Steel and fuel strikes in 2012/13 › Marikana unrest › Platinum and construction strike 2014 • Consequential effects: › Plant utilisation achieved 55% and R 71 million loss • Bridge design and demolishing 24

CIVILS – N 4 CONTINUED What now H 1 2015 • Agreed programme with client - completion August 2014 › Impacted by delays on Petroport bridge and ride ability rejections › Productivity • Consequential impact on P&G costs • Inability to reduce resources to activity levels • Impact of escalation Current • Variation and disruption claim submitted • Maintenance period • Relationship and reputation Lessons learnt • Formal retrospect scheduled • 17 Major concrete structures • Lump sum arrangements 25

CIVILS PROJECTS Kusile general piping and terraces contracts – Packages 25 and 26 • Eskom • Underground service ducts to completed terraces and general service pipelines • Contract value › In excess of R 1 billion • Contract duration › 42 months • Status › In progress 26

CIVILS PROJECTS Diepsloot integrated housing Phase 1 – Pedestrian bridges • GDo. HS • Provision of pedestrian bridges over William Nicol drive • Contract value › R 50 million • Contract duration › 18 months • Status › Nearing completion 27

CIVILS PROJECTS Low cost housing, 1000 units each in rural KZN • KZNDo. HS • Provision of 40 m² low cost RDP houses • Contract value › R 60 – R 130 million • Contract duration › 18 months • Status › Implementing 28

CIVILS RECOVERY STRATEGY - UPDATE Plan Resolution of claims Reduce the workforce to align with the business model. Centralise the approval for engaging any new labour Plant – utilisation and VAF repayment a risk due to lack of profitability and cash flow strain Optimise on current work and gradually add on new work within the profit margins set and approved for the Civils business model Achieved Date Progress Oct 2014 Kusile Consolidated Claim finalised Ongoing Kriel Main Civils & Boxhole – submitted and in dispute process Ongoing Retrenched 52 employees to Aug 2014. Sec 189 process started in plant Feb 2015 Being restructured by Dec 2014 and implemented by Feb 2015 FY 2015/6 Disposing of unproductive plant Focus on current work and target selected disciplines within the Group 29

CIVILS RECOVERY STRATEGY - UPDATE CONTINUED Plan Achieved Date Progress July ’ 14 Implemented at Kusile and rolled-out to all sites by Q 1 2016 Guarantees – late cancellation costing money and limiting available facilities July ’ 14 Done Physical controls on site Aug ’ 14 Done Consolidation of suppliers and using buying power Oct ’ 14 Implemented in Civils. Initiatives at Group level N 4, Kriel Civils and Boxhole, Hwelereng Completed 4 November 2014 Completed 17 June 2014 Completed October 2014 Labour – time keeping a major risk until implementation of a biometric system Successful completion and cost minimisation on loss making jobs 30

DEVELOPMENTS Revenue PBIT Segment assets 2014 R’ 000 2013 R’ 000 32 075 8 137 (688) (4 301) 244 321 105 669 3 3 Revenue growth 296% N/A Operating margins 2, 2% N/A Order book 724 632 1 082 894 Pending awards 200 000 240 000 4 000 2 750 000 Non-government 77% 100% Government 23% - Number of employees Prospects 31

DEVELOPMENTS CONTINUED Slow start to the year • Orchards R 25 million sales in H 1 2015 › Project potential to be realised exceeds R 200 million – In line with budget and predictions • Completing bridges at Diepsloot East, north of Johannesburg › Project potential to be realised exceeds R 2 billion, with commercial element – EIA being finalised • Uitvlugt is an integrated residential development in Three Rivers East with land transferred to Esor › Project potential excluding top structures to be realised exceeds R 600 million – Feasibility underway • Soshanguve is a residential development in Tshwane with Esor acquiring development rights › Project potential to be realised exceeds R 150 million • General › Potential in social and gap housing expected to increase over the next few years › Demand for affordable housing exceeds supply, but may be impacted by rising interest rates and unemployment 32

DEVELOPMENTS PROJECTS Diepsloot East • GDo. HS • Integrated housing development for 9, 500 units on 237 ha • Contract value › R 2 billion • Contract duration › 7 years • Status › Implementing 33

DEVELOPMENTS PROJECTS The Orchards in Rosslyn Gauteng • Esor owned integrated residential development • Project includes 1, 373 stands of which only 2 phases or 571 stands left for development • Contract value › In excess of R 240 million • Contract duration › 5 years • Status › In progress 34

STRATEGY 35

STRATEGY • Continue consolidating South African operations • Rationalise Civils operations • Restructure plant division • Streamline support functions • Approach geographical expansion with caution • Protect CASH • Keep It Simple • Build on strong brand • Commercial astuteness 36

PROSPECTS AND ORDER BOOK 37

ORDER BOOK Order book R’m Secured revenue FY 2015 + R’m 1 021 825 255 077 766 748 Developments 724 632 37 068 687 564 Pipelines 604 646 216 375 388 271 2 351 103 508 520 1 842 583 Non-government 14, 9% 15, 7% 13, 7% Government 85, 1% 84, 3% 86, 3% Civils 187 000 28 000 159 000 Developments 200 000 39 000 161 000 Pipelines 213 700 47 000 166 700 Total pending 600 700 114 000 486 700 2 year secured order book Civils Total secured Pending awards 38

CAPEX 39

CAPEX 2015 R’m 2014 R’m 2013 R’m - 26 313 132 406 Pipelines 21 228 9 596 17 083 Corporate 6 960 2 117 1 626 Total spend/approved 28 188 38 026 151 115 Depreciation 51 777 61 780 79 807 0, 54 0, 62 1, 89 Civils Depreciation cover 40

CONCLUSION 41

IN SUMMARY DONE • Completed loss-making legacy contracts • Finalised Kusile claim – money in bank • Streamlined Support Services • Concluded 50% sale of Diepsloot development to Calgro › Partnership with leaders in low cost housing developments CURRENT • Rebuilding Civils › Restructuring Plant – Cash saving of R 4 m per month › Rightsizing operations • Tender risk at group • Selective African growth • Opportunities in › Social housing › Pipejacking • Finalising systems integration 42

DISCLAIMER Forward-looking statements This presentation contains forward-looking statements that, unless otherwise indicated, reflect the company’s expectations as at 31 August 2014. 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 forwardlooking 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. 43

CONTACT US Esor Limited 30 Activia Road, Activia Park, Germiston 1401 PO Box 6478, Dunswart, 1508, South Africa Wessel van Zyl | CEO + 27 82 498 3518 +27 11 776 8700 +27 11 822 1158 Wessel. vanzyl@esor. co. za Bruce Atkinson | CFO + 27 83 288 9190 +27 11 776 8700 +27 11 822 1158 Brucea@esor. co. za 44

STRUCTURE Wessel van Zyl CEO Patrick Africa Bruce Atkinson Kevin Duncan Dave Gibbons Mark Rippon Warren van der Vyver Group SHEQ Manager CFO Developments Managing Director Pipelines Managing Director Civils Managing Director Group Commercial Director 45

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