Weir Group Plc · LSE:WEIR

Weir — The Weir Group — Investor Day (June 2012)

96 slides from Weir's investor day presentation, June 2012

1. Slide 1: Weir Minerals: positioned for long term sustainable growth

   Capital markets day June 2012 The Weir Group PLC Weir Minerals: positioned for long term sustainable growth Excellent Engineering Solutions

2. Slide 2: Introduction to Weir Minerals

   Capital markets day June 2012 Introduction to Weir Minerals Keith Cochrane, CEO Excellent Engineering Solutions

3. Slide 3: Agenda

   Capital markets day June 2012 Weir Minerals division 3 Agenda  Introduction to Weir Minerals Keith Cochrane, CEO  Weir Minerals: track record of value creation Scot Smith, Divisional MD  The Mill circuit: the vital component Ricardo Garib, MD, Latin America  Selling the full product portfolio Da

4. Slide 4: Forward-looking statements

   Capital markets day June 2012 Weir Minerals division 4 This presentation contains certain forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, all statements that express forecasts, expe

5. Slide 5: Minerals division: central to The Weir Group

   Capital markets day June 2012 Weir Minerals division 5 Minerals division: central to The Weir Group Group input by sector, £m 2,500 2,000 1,500  Strong, consistent, organic and acquisitive growth 1,000  Revenue: up 133% since 2007, increased every year 500  Margins: from 14.2% in 2006 to 17.6% in

6. Slide 6: Leveraging Minerals across the Weir Group

   Capital markets day June 2012 Weir Minerals division 6 Leveraging Minerals across the Weir Group  13% of divisional input from Oil & Gas and Power markets  Oil Sands: slurry pumps, spools, dewatering solutions  Power: ash handling systems, flue gas desulphurisation equipment  Mid and downstream

7. Slide 7: Weir Minerals: excellent track record of value creation

   Capital markets day June 2012 Weir Minerals division 7 Weir Minerals: excellent track record of value creation Scot Smith, Divisional Managing Director

8. Slide 8: Minerals division today

   Capital markets day June 2012 Weir Minerals division 8 Minerals division today  Best in class equipment and service provider for operation critical processes  Specialist equipment targeting high wear mining applications  Mill circuit - comminution - slurry transportation - mine dewatering - speci

9. Slide 9: Weir Minerals: many years in the making

   Capital markets day June 2012 Weir Minerals division 9 Weir Minerals: nearly 100 years in the making 2007 Weir acquires CORPORATE DEVELOPMENT Multiflo Australia 1920s 1994 1999 Linatex established Weir acquires Weir acquires 2008 in Malaysia by EnviroTech: Warman Warman Weir acquires CH Bernard Wilk

10. Slide 10: Minerals division financial performance

    Capital markets day June 2012 Weir Minerals division 10 Minerals division financial performance Input £m Revenue £m Operating profit £m 1,500 1,500 250 20% 1,250 1,250 200 18% 1,000 42% 1,000 42% 150 16% 750 38% 750 39% 52% 41% 48% 100 214 14% 500 500 49% 175 54% 141 58% 51% 58% 130 250 250 61% 50 1

11. Slide 11: Minerals division revenue drivers

    Capital markets day June 2012 Weir Minerals division 11 % annual growth in OE revenues Minerals division revenue drivers Weir OE revenue growth rate v global mining capex growth 50%  Mining exposure correlated to industry capex and production 40% 30% Weir 1 year behind 20% capex trend  OE revenues

12. Slide 12: Diverse global business

    Capital markets day June 2012 Weir Minerals division 12 Diverse global business Geographic mix1 100 80  Global presence covering all key mining geographies 57 62 66 70 68 60 40 20 43 38 34  Emerging market contribution increased from 37% to 48% 30 32 0 2007 2008 2009 2010 2011  Exposure to US & E

13. Slide 13: Minerals extraction and processing markets

    Capital markets day June 2012 Weir Minerals division 13 Minerals extraction and processing markets Total mining equipment market £46bn Ore extraction and materials handling (mine side) Ore concentration and processing plant MARKET SEGMENTATION £9bn £12bn £13bn £7bn £5bn Drills & Underground Crushing

14. Slide 14: Minerals processing: operation critical high wear applications

    Capital markets day June 2012 Weir Minerals division 14 Minerals processing: operation critical high wear applications Comminution Mill circuit Slurry transportation Mine dewatering

15. Slide 15: VT

    Capital markets day June 2012 Weir Minerals division 15 VT

16. Slide 16: Growing the opportunity

    Capital markets day June 2012 Weir Minerals division 16 Growing the opportunity Weir addressable market, £bn 6 £5.7bn 5 1.9  Weir’s addressable market increased >75% in 2 years to £5.7bn 4 £3.2bn 0.9  £1.4bn end-market growth (45%) 3 1.2 2  £1.1bn expansion of adjacent products & markets 1 0.7 2.

17. Slide 17: Weir Minerals: a differentiated business model

    Capital markets day June 2012 Weir Minerals division 17 Weir Minerals : a differentiated business model TECHNOLOGY Materials expertise Investment in people Academic partnerships SERVICE PRESENCE CUSTOMER RELATIONSHIPS Local support NPS programme Instant response Ongoing contact: drives intimacy Expe

18. Slide 18: Differentiation drives superior results

    Capital markets day June 2012 Weir Minerals division 18 Differentiation drives superior results 2012 Weir addressable market share, % Weir ITT/Xylem  Market leading position in addressable markets: c.25% share Metso  No1 in slurry pumps, oil sands offering KSB FLS  No2 in cyclones, mine dewaterin

19. Slide 19: Positioned for sustainable, profitable growth

    Capital markets day June 2012 Weir Minerals division 19 Positioned for sustainable, profitable growth Equipment market trends Strategic initiatives Declining ore grades  Investing in advanced materials to reduce wear and increase efficiency Water scarcity and environmental  Improving water recover

20. Slide 20: Mill circuit products: the vital component

    Capital markets day June 2012 Mill circuit products: the vital component Ricardo Garib, Regional Managing Director, Latin America Codelco-Chuquicamata mine, Chile Excellent Engineering Solutions

21. Slide 21: Latin America: home to the world's largest mining projects

    Capital markets day June 2012 Weir Minerals division 21 Latin America: home to the world’s largest mining projects  Largest and lowest cost copper producer  > half global annual investment and production  3rd largest iron producer in the world World copper mining projects Annual Projects 2011 Inv

22. Slide 22: Minerals processing: from ore to concentrate

    Capital markets day June 2012 Weir Minerals division 22 Minerals processing: from ore to concentrate Comminution Mill circuit Slurry transportation Flotation, concentration & tailings Typical copper mine:  20,000 - 200,000 tonnes of ore processed per day  Assuming 1% metal content this is the equi

23. Slide 23: World leading Warman slurry pumps

    Capital markets day June 2012 Weir Minerals division 23 World leading Warman® slurry pumps  Highly abrasive mill circuit application: moves ore through the processing circuit  Superior performance through patented materials and engineered hydraulics  Throughput increased, energy consumption, main

24. Slide 24: Leading Cavex hydro-cyclones

    Capital markets day June 2012 Weir Minerals division 24 Leading Cavex® hydro-cyclones  Separates ore from rock through centrifugal force  Improved performance via patented technology: enhances flow control, reduces turbulence  Throughput increased, lower maintenance costs

25. Slide 25: Vulco custom designed mill lining systems

    Capital markets day June 2012 Weir Minerals division 25 Vulco® custom designed mill lining systems  Aftermarket mill liners protect mill casing and maximise rock grinding  Utilises patented elastomer technology to improve wear life  Throughput increased, lost production time minimised

26. Slide 26: KHD high pressure grinding rolls (HPGR)

    Capital markets day June 2012 Weir Minerals division 26 KHD high pressure grinding rolls (HPGR) Choke Feed Edge-Effects Wear Surface with Hardmetal Studs Pre-crushing zone Compression Zone Peak Pressure Flake Product  Redefining the largest minerals processing operation in partnership with KHD  Mo

27. Slide 27: Complementary mill circuit components

    Capital markets day June 2012 Weir Minerals division 27 Complementary mill circuit components  Valves, spools, hoses, screens, targeted at abrasive mill circuit applications  Utilises our expertise in materials technology and fluid dynamics  Enhanced wear life over traditional market products

28. Slide 28: Sustaining the aftermarket: targeting abrasive applications

    Capital markets day June 2012 Weir Minerals division 28 Sustaining the aftermarket: targeting abrasive applications Annual spares Mill circuit process Weir equipment Wear rate to OE revenue ratio Comminution High Pressure Grinding Rolls Medium 40% Screens Medium 40% Mill circuit Slurry pumps High 10

29. Slide 29: Growing our installed base

    Capital markets day June 2012 Weir Minerals division 29 Growing our installed base  New greenfield projects:  Multi-year projects (5 year+ programmes)  Principal decision makers: EPCMs (Bechtel, Fluor, SNC, Jacobs)  Initial capital cost weighted to infrastructure and mine site development  Brow

30. Slide 30: Greenfield project to aftermarket lifecycle

    Capital markets day June 2012 Weir Minerals division 30 Greenfield project to aftermarket lifecycle  Weir equipment bought late in capex cycle  Bulk of project spend committed: low risk of cancellation  Number of projects at initial construction stage: significant pipeline of future OE awards  A

31. Slide 31: Greenfield project: Pascua Lama gold mine

    Capital markets day June 2012 Weir Minerals division 31 Greenfield project: Pascua Lama gold mine  Commissioning date: 2013/14, >25 year life  Mill capacity: 45,000 tonnes of ore per day  Gold production: 800,000 ounces per annum  Weir equipment: <1% annual operating costs  Visible future reven

32. Slide 32: Brownfield project: Collahuasi copper mine

    Capital markets day June 2012 Weir Minerals division 32 Brownfield project: Collahuasi copper mine  Copper production: 50mt per annum, value £2bn  Mill capacity: 5 circuits processing 150,000 tonnes/day  Cost of 1 days downtime for 1 circuit: £2m revenue1  Objective: reduce downtime and enhance

33. Slide 33: Driving sustainable growth: securing the installed base

    Capital markets day June 2012 Weir Minerals division 33 Driving sustainable growth: securing the installed base Large MC pumps world wide installed base: Operational costs comparison under same conditions: actual orders / potential opportunity, units independent test, annual costs, US$m 700 2.5 600

34. Slide 34: Well positioned for future growth

    Capital markets day June 2012 Weir Minerals division 34 Well positioned for future growth  Mill circuit is a critical component of the process  Applications are highly abrasive and demanding on equipment  Requires highly engineered products with superior wear life  Aftermarket necessitates stron

35. Slide 35: Selling the full product portfolio

    Capital markets day June 2012 Selling the full product portfolio Dave Athey, Regional Managing Director, Africa Weir Minerals sample product range Excellent Engineering Solutions

36. Slide 36: Platform for growth across Africa

    Capital markets day June 2012 Weir Minerals division 36 Platform for growth across Africa Service footprint  2008: Weir acquired a platform for growth  Slurry pump company with extensive pan-African footprint  CH Warman’s footprint provided basis to launch Weir portfolio across Africa Trial progr

37. Slide 37: Rapid growth of complementary product sales

    Capital markets day June 2012 Weir Minerals division 37 Rapid growth of complementary product sales Africa input 2008 Africa input 2011 Slurry Other Cyclones Other 6% Valves 32% Dewatering Mill linings Service Hoses and spools Slurry pumps Rubber linings 68% Slurry pumps Screens 94% Rental Specialit

38. Slide 38: Extensive service footprint: assurance of being there

    Capital markets day June 2012 Weir Minerals division 38 Extensive service footprint: assurance of being there South Africa Service centres: 10 Commodity exposure: (chromium, coal, diamonds, iron, gold, phosphates, platinum, heavy minerals) Rest of Africa Botswana (copper, diamonds, gold, nickel) Gha

39. Slide 39: Service centres: assurance of expertise and support

    Capital markets day June 2012 Weir Minerals division 39 Service centres: assurance of expertise and support Assurance and expertise Standardised and transferable  24 / 7 support close to the customer  Expertise, when and where needed  Full spectrum of service:  Commissioning  Repairs and replac

40. Slide 40: Trials strategy: assurance of product quality

    Capital markets day June 2012 Weir Minerals division 40 Trials strategy: assurance of product quality  Underpins robust total cost of ownership model  Proving the product in the field critical  Limits risk in traditional, risk averse industry  Risk shared: payment on result  Leverages strong cu

41. Slide 41: Continuous customer driven development

    Capital markets day June 2012 Weir Minerals division 41 Continuous customer driven development Customer feedback Deployment Close proximity to customer Engineering Design Centre Redesign or new development Feedback loop drives growing customer satisfaction

42. Slide 42: Customer intimacy: assurance we understand the need

    Capital markets day June 2012 Weir Minerals division 42 Customer intimacy: assurance we understand the need  Customer need:  Increased dewatering requirements during seasonal rainfall: limited capital budget  Weir solution:  Rental model allows access to technologies through operational expendit

43. Slide 43: Differentiation by reputation and support

    Capital markets day June 2012 Weir Minerals division 43 Differentiation by reputation and support The service is Robust, heavy duty Every thing is spot absolutely amazing. and reliable on if we have any Always friendly and products. Excellent problems we just helpful. services, ring and you fix the

44. Slide 44: Expanding into adjacent markets: mine dewatering

    Capital markets day June 2012 Expanding into adjacent markets: mine dewatering Geoff Moore, Divisional Sales & Marketing Director Weir Multiflo, dewatering operation, Russia Excellent Engineering Solutions

45. Slide 45: Mine dewatering: rapid growth in new market

    Capital markets day June 2012 Weir Minerals division 45 Mine dewatering: rapid growth in new market  Mine dewatering: aligned to core competencies and global footprint  Critical to our customers’ operations  Utilises Weir’s global routes to market  Leverages our extensive pump expertise Weir Mul

46. Slide 46: Creating a competitive advantage

    Capital markets day June 2012 Weir Minerals division 46 Creating a competitive advantage  Unique value proposition  The only total solution provider to the market  Serving open pits to the deepest underground mines  Specialist knowledge, service, product range and unrivalled footprint  Complete

47. Slide 47: Mine dewatering applications: the complete range

    Capital markets day June 2012 Weir Minerals division 47 Mine dewatering applications: the complete range MULTIFLO & WARMAN SINGLE STAGE PUMPS Up to 180 m lift BARGE & PONTOON MOUNTED PUMPS FLOWAY TURBINE PUMPS Up to 1,000m lift MULTIFLO ELECTRIC DRIVE PUMPS GEHO APEX HOSE DIAPHRAGM PUMPS Up to 3,000

48. Slide 48: Innovation drives sustainable growth

    Capital markets day June 2012 Weir Minerals division 48 Innovation drives sustainable growth  Continuous innovation  New equipment designs for specific applications  Improved core pump range  Expanded rental services Breaking new ground with the high wall dewatering pump  Future growth plans 

49. Slide 49: Capital markets day June 2012 Weir Minerals division

    Capital markets day June 2012 Weir Minerals division 49

50. Slide 50: Expanding into adjacent markets: oil sands

    Capital markets day June 2012 Expanding into adjacent markets: oil sands Warren Martin, Regional Managing Director, North America Suncor operation Oil Sands, Canada Excellent Engineering Solutions

51. Slide 51: Oil sands: rapid growth in new market

    Capital markets day June 2012 Weir Minerals division 51 Oil sands: rapid growth in new market Weir large pump installed base, units 50 40  Aligned to core competencies and global footprint 30  Mission critical processing equipment 20  Harsh operating environment 10  Some of the most challenging

52. Slide 52: Canadian oil sands overview

    Capital markets day June 2012 Weir Minerals division 52 Canadian oil sands overview The tailings are Hot water is added to the pumped to the Minerals shovels dig into oil sands and then fed via settling basin, sand and load it into hydrotransport to the where the water is Trucks take oil sands to ex

53. Slide 53: Weir Minerals products in the Oil Sands

    Capital markets day June 2012 Weir Minerals division 53 Weir Minerals products in the Oil Sands Warman 600 HTP heavy duty slurry pumps Linatex oil sands resistant Hose Warman 12 TAHF froth pump Multiflo barges operating at Suncor under winter conditions Extended product range successfully deployed i

54. Slide 54: Slurry pump spares: improvement programme

    Capital markets day June 2012 Weir Minerals division 54 Slurry pump spares: improvement programme The future: 3,000 hours, two new initiatives underway 4th upgrade: 1,500 hours, experimental hard metal 600 HTP Throatbush: 4th upgrade 3rd upgrade: 1,000 hours, tungsten coating 2nd upgrade: 670 hours,

55. Slide 55: Innovation drives sustainable growth

    Capital markets day June 2012 Weir Minerals division 55 Innovation drives sustainable growth  Tailings Reduction Programmes (TRO): customer driven solution  Environmental clean-up directive for Province of Alberta  Mega barge solution developed by Weir Canada  Brings together Hazleton and Multif

56. Slide 56: TRO mega-barges: full operational flow from day one

    Capital markets day June 2012 TRO mega-barges: full operational flow from day one Initial coffer dam flooding to inspect buoyancy Excellent Engineering Solutions

57. Slide 57: Oil sands: future growth opportunities

    Capital markets day June 2012 Weir Minerals division 57 Oil sands: future growth opportunities Installed large pump base and related parts revenue opportunity Parts revenue No. of pumps 80 350  Growth in oil sands projects drives 70 300 60  Rapid growth in installed base 50 250 200  Accelerated g

58. Slide 58: Growing through strategic acquisitions: Linatex

    Capital markets day June 2012 Growing through strategic acquisitions: Linatex Rob Brown, Regional Managing Director, Asia Pacific Linatex rubber Excellent Engineering Solutions

59. Slide 59: Why Linatex?

    Capital markets day June 2012 Weir Minerals division 59 Why Linatex?  Met strategic and financial criteria  End market alignment  Extends the portfolio  Opportunity to leverage the business  EPS accretive, ROCE > cost of capital within 3 years Equipment damage  Significant synergy opportunitie

60. Slide 60: Excellent fit with core mill circuit products and competencies

    Capital markets day June 2012 Weir Minerals division 60 Excellent fit with core mill circuit products and competencies Linatex: expanding the mill circuit portfolio

61. Slide 61: The Linatex difference

    Capital markets day June 2012 Weir Minerals division 61 The Linatex® difference  Proprietary vulcanised natural gum rubber  Only company to use liquid latex to produce rubber sheet  Inherent properties retained via the unique manufacturing process Liquid latex  Strength  Resilience  Wet abrasi

62. Slide 62: Integration success highlights

    Capital markets day June 2012 Weir Minerals division 62 Integration success highlights Rubber output, tonnes 4,518 3,822  Financial: 3,530  US$15m annualised synergies 77% 2,547  Exceeded cost of capital first year increase  Headcount reduced by 12% 2009 2010 2011 2012 FC  Operational and comme

63. Slide 63: Weir integration process

    Capital markets day June 2012 Weir Minerals division 63 The Weir Group PLC Excellent Engineering Weir integration process Solutions Announcement Integration teams Completion of Deal working together of Deal Strategy Planning & quick wins and target Theme: directing search Planning the first 100 days

64. Slide 64: Regional integration with divisional and group oversight

    Capital markets day June 2012 Weir Minerals division 64 Regional integration with divisional and group oversight FORUM MEMBERS RESPONSIBILITIES CEO Transaction completion CFO Director assignments Monthly Group Linatex project review Divisional MD Sign-off financial report and management roles integr

65. Slide 65: Core to our future growth strategy

    Capital markets day June 2012 Weir Minerals division 65 Core to our future growth strategy  Comminution: upgrading existing screen technology  Driving aftermarket growth with screen media technology  Investing in regional capability to match local market needs  Market development: oil sands and

66. Slide 66: Capital markets day June 2012 Weir Minerals division

    Capital markets day June 2012 Weir Minerals division 66

67. Slide 67: Competitive advantage through technology

    Capital markets day June 2012 Competitive advantage through technology Fred Bradner, Director of Technology, Weir Minerals Excellent Engineering Solutions

68. Slide 68: Weir Group core technical capabilities

    Capital markets day June 2012 Weir Minerals division 68 Weir Group core technical capabilities Engineering  Leading systems competencies in hydraulics and materials Hydraulic design  40 years of product development and IP Process Innovation technology Core competencies systems  The best engineers

69. Slide 69: Strong pipeline of new product development

    Capital markets day June 2012 Weir Minerals division 69 Strong pipeline of new product development Technology Readiness Level 10 Design Centres of Origin Production 9 15 Global implementation Product DCOs DECREASING TIME HORIZON New products 8 Pump 7 Pre- Technology Centre production Technology 6 ce

70. Slide 70: Materials technology focused on high wear applications

    Capital markets day June 2012 Weir Minerals division 70 Materials technology focused on high wear applications  Engineered materials that are a transferable differentiator across all our product categories  Laboratories that create some of the worlds most wear resistant alloys and elastomers Digit

71. Slide 71: Global engineering capability: design centres of origin

    Capital markets day June 2012 Weir Minerals division 71 Global engineering capability: design centres of origin (DCO)  15 designs centres of origin  R&D headcount doubled in 4 years Screen Media Barges & Mill Circuit Pontoons Metal unlined  90 technical staff Pumps Pumps  400+ engineers Vertical

72. Slide 72: Innovation: recent successes

    Capital markets day June 2012 Weir Minerals division 72 Innovation: recent successes  Materials  Wear resistant white iron alloys in oil sands applications  New alloys to revolutionise wear resistance standards  Tough white iron: employed in mill liners and extending reach into larger mill appli

73. Slide 73: Next generation slurry pumps: WBH redefining performance

    Capital markets day June 2012 Weir Minerals division 73 Next generation slurry pumps: WBH® redefining performance  Flagship pump range for heavy duty slurry pumping applications  Developed at the Pump Technology Centre, Sydney Australia  9 sizes and many configured variants  7 patents and 20 des

74. Slide 74: The Power of One Weir

    Capital markets day June 2012 Weir Minerals division 74 The Power of One Weir  Significant global network WEIR CORE CAPABILITIES MARKETS Hydraulics  Oil & Gas Forum CAD/Design Minerals Material science  Engineering Excellence Committee Virtual product development Oil and Gas  Engineering best pr

75. Slide 75: Return on investment: 135 patent families registered since 1990

    Capital markets day June 2012 Weir Minerals division 75 Return on investment: 135 patent families registered since 1990  Robust new product pipeline  Not just pumps: a broad product base  Short and long term technology development strategy  Continual increase in patented technology  Products th

76. Slide 76: Competitive advantage through operational excellence

    Capital markets day June 2012 Competitive advantage through operational excellence Kevin Spencer, Regional Managing Director, Europe Weir Minerals, Brasil, Sao Paulo Excellent Engineering Solutions

77. Slide 77: Don't stop the mill

    Capital markets day June 2012 Weir Minerals division 77 Don’t stop the mill A typical concentration plant processes between 20,000 and 200,000 tonnes of copper ore per day. At 1% metal content that’s between c.£1m and £10m of copper. Keeping the plant running is critical. Weir’s responsive manufactu

78. Slide 78: Customer driven manufacturing strategy

    Capital markets day June 2012 Weir Minerals division 78 Customer driven manufacturing strategy Local foundry, machine and rubber shops  In-house control of critical Todmorden components Madison  Protecting IP Salt Lake City Venlo Hazleton  Ensuring on-time delivery Fresno Gallatin Wuxi  Eliminat

79. Slide 79: Weir Production System

    Capital markets day June 2012 Weir Minerals division 79 Weir Production System Scope: work cell to divisional level Focus: eliminate waste, create value  Foundry and rubber facilities  Safety performance  Machining  Quality performance  Logistics  Cost performance  Suppliers  Delivery perfor

80. Slide 80: Weir Production System: what it delivers

    Capital markets day June 2012 Weir Minerals division 80 Weir Production System: what it delivers Delivering improvements Machine shop efficiency % 90  Example benefits: 80 70  Cutting tip supplier partnership: 20%-50% machining time reduction 60 50  70% reduction in cooling times for foundry cast

81. Slide 81: Investing to sustain competitive advantage

    Capital markets day June 2012 Weir Minerals division 81 Investing to sustain competitive advantage Sao Paulo case study  2009: US$17m foundry and new plant opened  Future investment to meet market demands  Average delivery shortened  Chilean foundry investment driven by mill circuit growth to 4

82. Slide 82: Weir Minerals: positioned for sustainable profitable growth

    Capital markets day June 2012 Weir Minerals: positioned for sustainable profitable growth Keith Cochrane, CEO Title Excellent Engineering Solutions

83. Slide 83: Structural demand drivers positive for the long term

    Capital markets day June 2012 Weir Minerals division 83 Structural demand drivers positive for the long term Global copper consumption vs population: Last 60 years Global development curve Consumption, 000 tonnes Population, millions % of population that is urban 20,000 8000 100 France, 65m 18,000 9

84. Slide 84: Substantial long term supply investment unavoidable

    Capital markets day June 2012 Weir Minerals division 84 Substantial long term supply investment unavoidable Head grades indexed to 2000 base Forecast copper demand versus supply 000t contained copper 120 28,000 110 26,000 24,000 Supply gap 100 22,000 90 20,000 18,000 80 16,000 70 14,000 60 12,000 10

85. Slide 85: Commodity prices remain above greenfield incentive price

    Capital markets day June 2012 Weir Minerals division 85 Commodity prices remain above greenfield incentive price Spot copper price, US$ per tonne Spot nickel price, US$ per tonne 10,000 50,000 Copper price Nickel price 8,000 40,000 Incentive Incentive price 6,000 30,000 price 4,000 20,000 2,000 10,0

86. Slide 86: Capital expenditure to remain high in the medium term

    Capital markets day June 2012 Weir Minerals division 86 Capital expenditure to remain high in the medium term Capital expenditure: key commodities, US$bn Capital expenditure: project type, US$bn 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 20

87. Slide 87: Production struggling to match demand in the medium term

    Capital markets day June 2012 Weir Minerals division 87 Production struggling to match demand in the medium term Demand for industrial metals 2000 – 2016 (indexed) Ore production by key commodity, million tonnes 260 8,000 240 7,000 220 6,000 200 5,000 180 4,000 160 3,000 140 2,000 120 1,000 100 0 20

88. Slide 88: OE input already secured to drive 2013-15 aftermarket growth

    Capital markets day June 2012 Weir Minerals division 88 OE input already secured to drive 2013-15 aftermarket growth Selected projects and expected commissioning date Weir OE input drives aftermarket revenue opportunity: illustrative, £m Comm. Project Name Country Commodity Date 700 Karara Australia

89. Slide 89: Weir Minerals: positioned for long term sustainable growth

    Capital markets day June 2012 Weir Minerals division 89 Weir Minerals: positioned for long term sustainable growth Revenue £m  Installed based growing 1,500 1,250 Aftermarket driving  Commissioned projects driving higher margin organic growth aftermarket revenues 1,000 42% 750 39%  Weir aligned t

90. Slide 90: Weir Group growth drivers

    Capital markets day June 2012 Weir Minerals division 90 Weir Group growth drivers  Oil & Gas, mining and power demand driven by structural growth (90% 2011 input) Aligned to structural  Energy demand, urbanisation, environment, resource scarcity growth end markets  High emerging market exposure (

91. Slide 91: Q&A

    Capital markets day June 2012 Weir Minerals division 91 Q&A

92. Slide 92: Appendix

    Capital markets day June 2012 Weir Minerals division 92 Appendix

93. Slide 93: Attendees: Weir Group PLC

    Capital markets day June 2012 Weir Minerals division 93 Attendees: Weir Group PLC KEITH COCHRANE JON STANTON DEAN JENKINS Chief Executive Finance Director Power & Industrial Divisional MD Appointed Chief Executive in November Joined the Board in April 2010 from Ernst A graduate aerospace engineer, D

94. Slide 94: Attendees: Weir Group PLC

    Capital markets day June 2012 Weir Minerals division 94 Attendees: Weir Group PLC VICKY FERRIER ANDREW NEILSON JONATHAN MILNE Group Head of IR & Head of Strategy Communications Communications Manager Joined Weir in 2011, from SABMiller’s IR Graduate engineer and qualified function in January 2011. P

95. Slide 95: Attendees: Weir Minerals division

    Capital markets day June 2012 Weir Minerals division 95 Attendees: Weir Minerals division SCOT SMITH RICARDO GARIB DAVE ATHEY Divisional Regional Managing Regional Managing Managing Director: Director: Africa Director Latin America An MBA, Scot joined Weir in 2001, Joined Weir in 1994 with the acqui

96. Slide 96: Attendees: Weir Minerals division

    Capital markets day June 2012 Weir Minerals division 96 Attendees: Weir Minerals division FRED BRADNER KEVIN SPENCER CEES ZAALBERG Director of Regional Managing Regional Managing Technology Director: Director: Weir Minerals Europe, Middle East, Global GEHO Pumps Russia Joined Weir Minerals in 2008.

The Weir Group — Investor Day (June 2012) on 6ix