Notes 1. Basis of preparation This interim report has been prepared and presented in accordance with IAS34: Interim Financial Reporting, the Companies Act 1973 (amended) and is in accordance with International Financial Reporting Standards (IFRS). The accounting policies used in the preparation of these results are consistent in all material respects with those used in the annual financial statements for the year ended 30 June 2006. 2. Earnings from discontinued operations There were no disposals of business in the current period. The comparative numbers include businesses that were closed or disposed of in the prior year, being its forklift truck distribution business Criterion Equipment. R millions

31.12.06

31.12.05

30.6.06

Earnings from the discontinued operation is analysed as follows: Profit on disposal / closure

–

18

16

Earnings after taxation for the period

–

(4)

(4)

–

14

12

Earnings after taxation for the period is analysed as follows: Revenue

–

46

46

EBITDA

–

2

2

Depreciation

–

(1)

(1)

EBIT

–

1

1

Net interest expense

–

(1)

(1)

Earnings before taxation

–

–

–

Taxation

–

(4)

(4)

Loss after taxation

–

(4)

(4)

3. Reclassification of comparatives The group reclassified an amount of R225 million from net amounts due from contract customers to accounts payables and other for the comparative period ended 31 December 2005. This relates to amounts payable to contract customers that were previously netted of against the amount receivable from contract customers. This was correctly reflected for the period ended 30 June 2006. The above reclassification had no impact on the net assets or total equity of the Group. Commentary The directors are pleased to announce a 125% increase in the interim ordinary dividend to 45 cents per share for the half-year ended 31 December 2006 (2005: 20 cents per share). This follows a 108% increase in fully diluted headline earnings per share to 135 cents for the period (2005: 65 cents excluding the BBBEE transaction expense). Improved contributions from all core business segments resulted in an 86% increase in operating profit (EBIT) to R560 million (2005: R301 million). Attention is drawn to the formal dividend announcement contained herein. Revenue for the period is up 55% to R8,58 billion (2005: R5,52 billion) which includes organic growth of R1,85 billion (33%) and a maiden contribution of R1,2 billion from Concor which was consolidated on acquisition from 1 July 2006. The interim operating margin of 6,5% (2005: 5,4%) reflects the early-stage turnaround in Construction SADC and solid performances from other core operations. In this respect, Construction & Engineering increased turnover by 70% to R5,3 billion (2005: R3,1 billion) and EBIT by 204% to R286 million (2005: R94 million). This includes a fair value adjustment on concession investments at a similar level to the prior half-year. Construction Materials & Services increased turnover by 38% to R2,7 billion (2005: R2,0 billion) and EBIT by 41% to R319 million (2005: R227 million). Corporate costs for the half-year are R73 million (2005: R58 million) with the increase largely attributed to investment initiatives in Health and Safety, Risk Management and Leadership Development. The weaker SA Rand has also impacted translation of the Group’s international corporate cost. The effective tax rate remained constant at 26%, but increased profitability has resulted in a 150% increase in the interim tax charge to R145 million (2005: R58 million). Operating cash inflow was R485 million (2005: R1 million) while working capital outflow improved to R100 million (2005: R217 million). Cash management remains a focus throughout the Group, although we continue to experience delayed progress payments in some markets and longer final account settlements, particularly in Middle East. Shareholder funds increased to R3,4 billion at 31 December 2006, representing a net asset value (NAV) of 1180 cps. The after tax return on average shareholder funds for the period increased above the Group target of 20,0% to 22,3% (2005: 11,7%).