2010 06 17 Capital Markets Pre So Weir Group

The Weir Group PLC
2010 Capital Markets Day
Driving Growth the Weir Way

2010 Capital Markets Day London, 17 June 2010
Excellent Engineering Solutions
The Weir Group PLC
Agenda
Introduction Minerals Keith Cochrane, Chief Executive Scot Smith, Divisional Managing Director Phil Clifton, Divisional Managing Director 15:45-15:55 15:55-16:15 16:15-16:35
16:35 16:45
Power & Industrial

Coffee Break
Oil & Gas Trading update & acquisition strategy Wrap-up Question & Answer session
Drinks
Steve Noon, Divisional Managing Director Jon Stanton, Group Finance Director Keith Cochrane, Chief Executive Group Executive
16:45-17:05 17:05-17:15 17:15-17:25 17:25-17:55

17:55 19:30
The Weir Group PLC
Introduction
CEO, Keith Cochrane
Weir Oil & Gas - Weir SPM, Texas, USA Excellent Engineering Solutions
The Weir Group PLC
The Weir Group today

High performing, focused group developed in past 5 years
Focused on three end-markets with positive fundamentals Input from core sectors increased from 64% to 86% of input
1,600 1,400 1,200 1,000 800 600 400 200 0
Sales and operating margins

13.7% 11.5% 8.4% 9.3% 1,390 14.7% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2005 2006 2007 2008 2009 Sales m (RHS) EBITA margin (LHS) 1,354 789 941 1,061
Sales up over 75%

Margins increased by 600bps
Earnings and dividend per share

70
Shareholder returns improved materially

Share price more than trebled
Earnings per share increased over 170% Dividend per share up nearly 60%
60 50 40 30 20 10 0 2005 2006 23.5 13.2 14.5 16.5 32.4 41.4
59.3
64.1
18.5
21.0
2007 2008 EPS (p) DPS (p)
2009
Strong, resilient platform established

Aftermarket contributed 58% of 2009 input Sales, EBITA, margins, EPS & DPS all increased in 2009 Highly cash generative; net debt reduced to 119m
Input by sector
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 Minerals Oil & Gas 2008 2009 Power Other
Further strong growth forecast for 2010
Focused, high performing group developed over past 5 years
The Weir Group PLC
Driving growth the Weir way the opportunities

Customer driven product & service innovation
Investment in engineering skills & product development Broaden and deepen product portfolio
Collaborative mindset
Build customer partnerships Leverage skills, knowledge & best practice across the group
Expand global capability

Globalise existing products & services
Minerals
Oil & Gas Power & Industrial
Extend emerging market presence
Quality acquisitions skillfully integrated Clear strategy to grow returns over the next five years
The Weir Group PLC
Minerals
Scot Smith
Weir Minerals, Sao Paulo, Brasil Excellent Engineering Solutions
The Weir Group PLC
Minerals Division
Overview
m Input OE Input aftermarket Input Total Revenue EBITA Operating margins (2) 2007 (1) 394 335 729 633 92 2008 (1) 466 431 897 825 130 2009 298 420 718 813 134
2009 Input by sector %

9% 9% 9% 3%
70%
Minerals Oil & Gas Power Industrial Other
2009 Input by geography %

Emerging markets
22% 22%
14.5%
15.8%
16.4%
Minerals represents 59% of Weir group revenues

71% of EBITA
16%
12%
North America Europe & FSU Australia Asia Pacific Mid East & Africa South America
11%
17%
Specialises in global delivery & support of equipment for slurry handling and processing in mining & mineral applications
Product applications extend to oil sands & FGD
Input OE / Aftermarket % 100

80 60
54
52
42
Key strategic highlights of past 3-years

2007: 9m Multiflo acquisition & 2010 facility expansion 2008: 113m CH Warman acquisition Organic investment of more than 90m in past 3-years, including new state of the art facilities in Brazil and Australia.
(1) 2007 & 2008 restated at 2009 average exchange rates (2) Adjusted to exclude intangibles amortisation
(%)
40 20 0 2007 2008 Aftermarket 2009 OE
46
48
58
The Weir Group PLC
Minerals Division
End markets
Total mining equipment spend to reach 39bn by 2013
Weir Minerals chosen mining sectors account for 1.4bn Mill circuit is relatively small component of total cost of mine
Addressable market by sector
32%
53% 3% 8% 4%
Mining Sand & Gravel FGD/Power Oil Sands Industrial

Source: CRU
Current addressable market of 2.7bn (1.4bn from mining)

Mill circuit is relatively small component of total cost of mine 55% OEM, 45% Aftermarket (spares & service)
Addressable market by Geography

12% 28% 19%
Diverse market
Extensive geographic reach
Emerging markets represent 21% of market
26%
15%
N. America S. America Europe & ME Australia Asia & Africa

Source: CRU
Estimated market shares
Broad commodity exposure
Market leading position

Market leader across Weir sectors
Weir FL Smidth Metso ITT Others

Source: Weir estimates
Fragmented market; opportunities to expand share
Diverse global market with strong aftermarket content
The Weir Group PLC
Minerals Division
End market fundamentals

Aftermarket growth driven by production levels
Strong growth predicted as markets continue to recover Up to two months visibility of revenues
Total global ore production 2009-2013 (million tonnes of ore)

6,200 6,000 5,800 5,600 5,400 5,200 5,000
OE sales linked to capital expenditure levels

CAPEX recovery expected in 2011-2012 Visibility between 6 months to a year
4,800 4,600
2008
2009
2010
2011 2012
2013
Source: CRU
Total CAPEX 2009-2013 ($m)

60000 50000
Medium term growth prospects underpinned by:

Growth in oil sands market
Strong positioning of Weir & current project commitments
40000 30000 20000 10000 0
Industrialisation of emerging markets
2008
2009
2010
2011 2012
2013
Source: CRU
Long lead time from greenfield development to aftermarket

Years 1 to 6 - Project scoping up to contractor selection Year 6 to 7 Engineering contractor selected and major equipment selected Year 7 to 8 Pumps selected Year 8 to 9 Plant construction / pumps installed Year 9 to 10 Plant commissioned. Spares cycle commences 3m-12m later
Weir historic correlation OE sales (actual) vs Minerals capex

40% 30% 20% 10% 0% -10% 2005 2006 2007 2008 2009 Weir grows faster than market Warman acquisition Market downturn
YOY % Change in Global Mine CapEx
YOY % Weir Sales
Source: Weir/CRU
Strong long-term fundamentals underpin medium term prospects
The Weir Group PLC
10
Minerals Division
Mill circuit
Processing gold, copper, bauxite, and other precious minerals from mined ore Product portfolio is a critical part of the mining process
The Weir Group PLC
11
Minerals Division
Product overview Slurry pumps

Uses and markets:
Mining - mill circuit, tailings, pipeline transport Flue gas desulphurisation (FGD) Dredging, oil sands and sand/gravel
Brand portfolio with market leading wear life

WARMAN centrifugal slurry pumps WARMAN AH and MC pump lines GEHO PD (Piston diaphragm) slurry pumps GEHO TZPM and DHC pumps HAZLETON specialty slurry pumps
Innovative new WARMAN WBH centrifugal slurry pump range has numerous approved and pending global patents
WARMAN WRT improves performance & wear life Improved impeller designs and metallurgy
Aftermarket cycle dependent on severity of application

Impeller and casing liners
A WARMAN centrifugal slurry pump
The Weir Group PLC
12
Minerals Division
Product overview Cyclones

Uses and markets:
Mining & minerals classification and tailings FGD / Power Coal classification Oil sands Waste water and flotation
CAVEX design significantly reduces turbulence, enhances efficiency and increases wear life
Continual development to maintain competitive advantage
Unique design & materials
ReCyclone Ceramic lined coal classifying Specialised cyclones for coal
Turbulence causes uneven wear

Cavex reduces turbulence, delivering up to 3x the life of conventional feed head liners
A CAVEX hydrocyclone cluster
The Weir Group PLC
13
Minerals Division
Product overview Mill liners

Uses and markets:
Mining; mill circuit, tailings, pipeline spools. FGD Rubber mill liners protects the mill shell & creates a grinding action within the mill through the use of lifter bars
Weir has extensive mill liner experience & expertise

Rubber research & formula improvements Enhanced composite materials & techniques
Recent developments, range extensions & new designs

Composite metal caps in lifter bars; provide benefits of rubber with the strength of metal Doubles or triples the service life of many rubber liners Pulp lifters, trommel screens, rubber grates, high & low pressure spools
Improvements in wear technology making rubber an attractive alternative to metal Linatex acquisition enhances Weir market position
A VULCO mill liner with lifter bars & pulp discharge screen
The Weir Group PLC
14
Minerals Division
Product overview HPGR

Uses and markets:
Mining - mill circuit, minerals crushing Mineral particles broken by compression in packed particle bed; not by direct nipping of the particles between two rolls
KHD has developed & patented Stud-Plus studded roll surface

Provide longer wear life due to more wear resistant surface Low energy consumption & low operating costs High ratio of comminution & throughput, selective liberation High availability (>95%), easy maintenance and control
Weir mill circuit expertise & service will introduce KHD HPGR to wider range of operations
Weir will benefit from aftermarket revenue stream
The Weir Group PLC
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Minerals Division
Market position & sales structure

Broad commodity exposure
Copper, alumina, iron & gold account for less than half end-market exposure
Sales by product
1000 800
(m)
600 400 200 0 2007

Pumps
Weir holds a leading market share

Relatively fragmented market; Weir holds leading market positions
2008
Other Service
2009
No1 supplier of slurry pumps

Leveraging position to cross-sell full portfolio of products
3-year CAGR of 15% achieved to 2009
2009 Sales by commodity

Copper Alumina Iron Gold Other - i.e. coal, nickel, oil sands, etc.
Integrated sales structure

Selling full portfolio of products Service strategy to capture aftermarket sales
Diverse customer base

20% of revenues from top-10 customers Majority of sales through direct channels
Major customers Product
Market position
Slurry Pumps Cyclones Slurry Valves Mill Liners
No 1 No 2 No 3 No 2
The Weir Group PLC
16
Minerals Division
Strategy & development initiatives

Divisional strategy Strategic initiatives
Continual investment in product development and wear technology Cross-sell full portfolio across existing sales channels Ancillary products; broaden product range across the mill circuit Comminution strategy focus on high aftermarket / customer critical products Geographic expansion into regions with lesser presence Enhanced, proactive service strategy to capture full aftermarket
Roll out pump enhancements WRT, WBH Improved product wear life new metal and rubber formulas and impeller designs Mill Circuit University; cross-sell training Drive complementary product & service sales KHD agreement as key part of divisional comminution strategy
Oil sands / FGD opportunities

Facility investment; China, Australia, S. Am.
Clear strategy to leverage existing market position
The Weir Group PLC
17
Power & Industrial

Phil Clifton
Weir Power & Industrial - Weir Valves & Controls, Suzhou, China Excellent Engineering Solutions
The Weir Group PLC
18
Power & Industrial Division
Overview

11% 4% 11%
18%
Other Oil & Gas Power Industrial Water

56%

Emerging markets
8% 18% 41%
7.1%
8.3%
9.5%
What we do:
Design and production of severe service and critical safety valves Specialist pumps for municipal and industrial applications Engineered service solutions
33%
Strong organic growth in power, offset by weaker industrial markets

Power contribution increased from 40% to 56% of input
Margin improvement aided by lean manufacturing and low cost sourcing New nuclear valves facility opened in Ipswich, Massachusetts, USA Significant nuclear orders received, particularly for new plants in China Power station overhaul contract awarded by Libya Iron & Steel Co.
(1) 2007 and 2008 restated at 2009 average exchange rates (2) Adjusted to exclude intangibles amortisation

80
(%) 60
48
46
40
40 20 0 2007 2008 Aftermarket 2009 OE
52
54
60
The Weir Group PLC
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Valves - End markets

Global valve market c.22bn
2.3bn addressable power market, we serve niche sectors only
Valves also used in industrial, petrochemical and oil & gas apps
Power market by sector - 2.3bn

5% 25%
Installed Base New Build Life Extension
70%
Sources: Platts, Mott MacDonald, Weir internal data supported by customer input
Geographic focus of market

Strong product and service markets in North America, France & UK New build power growth in China
Served market by region - 2.3bn

19% 35% 4% 14% 28%
North America Europe China India Rest of World
Sources: Platts, Mott MacDonald, Weir internal data supported by customer input
Strong share of niche sector

Focus on severe service and safety valves High barriers to entry
Stringent accreditation process Customers require track record & reference sites
Nuclear new build market c.0.5bn p.a.
Current c.8% share of specialist nuclear new build valves
Weir Flowserve Tyco Velan Others

Source: Weir internal data supported by customer input
Valve products focused on niche markets
The Weir Group PLC
20
Valves - End market fundamentals

Ageing power plants driving investment in life extension and new build
Balanced presence in new build & after markets reduces market risk
OE market drivers are application dependent
Technology on one end of the scale and price on the other
Global power generation growth by region (Trillion KWh)

30 25 20 15 10 5 0 2005 2010 2015 2020
Central & South America Middle East & Africa Asia North America Europe
Source: US Energy Information Administration
Life extension programmes & improving reliability driving the aftermarket
Global power plants by age (Coal, Oil, Nuclear)

12%
<20 21-30 31-40 >41
Global nuclear renaissance driven by supply gaps within context of CO2 reductions
Orders for nuclear power plants in China and US being placed now
Europe, India and Russia important markets in the medium-term UK and Canada key service markets
800 600
49%
19%
20%
Source: Platts
Expected new nuclear plants (Weir m opportunity)
Delivery of valves between 2-5 years from project announcement, depending on the generating technology
Weir has robust visibility of the nuclear valve market over next five years
400 200 0 2010 2012 2014 2016
SNPTC CNNC Areva Westinghouse Korea Toshiba US GE Hitachi Russia Other
Source: Customer inputs supported by Weir internal data
Strong long-term fundamentals
The Weir Group PLC
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Typical Pressurized Water Reactor (PWR)

OVERPRESSURE PROTECTION STEAM GENERATOR SAFETY VALVE MAIN STEAM ISOLATION VALVE
CHECK VALVE
GATE / GLOBE / CHECK / BUTTERFLY VALVES
GATE / GLOBE / CHECK / BUTTERFLY VALVES
CONTROL VALVE
MAIN FEEDWATER ISOLATION VALVE
SAFETY RELIEF VALVE
The Weir Group PLC
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Valves product overview Nuclear Tricentric

Purpose & how it works
Reactor cooling water and steam, containment isolation
Required to close extremely quickly and seal tightly for zero leakage
Markets
Strong order performance in 3rd generation nuclear new build Significant aftermarket, replacing non-Weir valves in legacy US nuclear market
Differentiating factors
First butterfly valve in world to complete QME-1(1) qualification Off-centre (offset) design allows exceptional shutoff performance Fully metallic design; suitable for high temperatures & resistant to radiation Low maintenance; triple offset design minimises rubbing and wear
/GW potential in nuclear/conventional

1M - 3.5M/GW, dependent on reactor design
Barriers to entry
QME-1 testing required to compete on 3rd generation nuclear reactor designs Difficult to displace once valve is trusted & incorporated into a reactor design
New developments
Continued QME-1 testing to meet requirements of other reactor types
(1) Qualification of Active Mechanical Equipment used in Nuclear Power Plants
The Weir Group PLC
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Valves product overview Safety valves

Purpose & how it works
Overpressure protection on steam, water and gas lines
Markets
Strong performance in Chinese nuclear new build; good technology acceptance in Russia Installed base in France; significant service & life extension opportunities
Differentiating factors
High performance and reliability Available in a compact design Low maintenance requirements Trusted on many nuclear reactors
Barriers to entry
Limited number of competitors for nuclear safety valves Higher margin for conventional safety valves using advanced materials
New developments
Recent order to supply valves to 4th generation reactor design in China Manufacture of conventional safety valves in India & China
The Weir Group PLC
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Large power market, small relative niche positions
Growing market position in nuclear, hydro and renewables
Developing emerging markets position, particularly in China & India
Power & Industrial; Third Party Output (m)

300 250 200 150 100 50 0 2007
Original Equipment
2008
Spares
2009
Services
Technical sales process, driven by application engineering

Via utilities for life extension & service offering Nuclear approvals through reactor designers EPC contractors
Major customers Product
Nuclear Tricentric
Market
Nuclear new build China nuclear Nuclear (PWR Design) Nuclear (BWR design)
Market position
No. 1
Sebim LISCO - LIBYA Hopkinsons MSIV
No. 1 No. 2
Atwood & Morrill MSIV
No. 1
The Weir Group PLC
25

Increase range of approved nuclear products & services Expand valve products into other markets e.g. Petrochem, Oil & Gas Expand emerging markets position Expand range and reach of hydro services Extending services new technologies
Investing in further nuclear valve approvals

Across products & reactor designs
Investing in sales & application engineers to accelerate end-market expansion

Control & safety valve focus
Opening Singapore hub to drive Asia-Pacific sales Expanding production of safety & control valves in India & China Replicating service model in new markets MHI agreement on UK nuclear pump install.
Leveraging products across wider end markets & geography
The Weir Group PLC
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Oil & Gas

Steve Noon
The Weir Group PLC
27
Oil & Gas Division
Overview
Minerals Oil & Gas Power Industrial
97%

Emerging markets
1% 25%
19.3%
22.6%
17.4%
Market leading position in pressure pumping and flow control Niche position in centrifugal pumps for refining and petrochemicals
47% 5%
22%
Respected services positions for repair and upgrades

Resilient business model
Leading margin performance versus peers

80
(%) 60
48
48
41
Key developments over the past 3-years:

Acquisitions strengthening market position (Mesa, SOS, PCS) 30% capacity expansion at SPM New service centres in the US/Canada/Mexico and Brazil
(1) 2007 and 2008 restated at 2009 average exchange rates (2) Adjusted to exclude intangibles amortisation
40 20 0 2007 2008 Aftermarket 2009 OE
52
52
59
The Weir Group PLC
28
Oil & Gas Division
Upstream end markets

Niche player in large upstream market
9.1% CAGR expected 2010 2013
(1)
Equipment market by sector - 27bn

10%
Drilling & Completion

42%
Oil Production & Transportation

48%
Gas Production & Transportation

Source: Douglas Westwood
Equipment and aftermarket size est 27bn

~49% based in North America ~80% onshore
Served market - 1.1bn (4% of total)

Emerging markets
10%
N. America S. America
Served market (primarily well services) 1.1bn

~50% based in North America; 36% emerging markets ~68% capex; 32% aftermarket
26%
50%
Europe & FSU Middle East & Africa Asia

11%
3%
Estimated market shares
~20% market share of served market

Strong position in aftermarket & spares
(1)
Weir FMC Fluid Control Gardner Denver Anson (NOV) Others

Source: Weir estimates
Niche position opportunities to expand into adjacent market streams
The Weir Group PLC
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Oil & Gas Division
NAM drilling trajectory

Horiztonal + Directional Percent of Total Rigs
North America 100% 80% 60% 40% 20% 0% International
Upstream end market fundamentals

Growth drivers
North America Horizontal drilling (shale plays) Globally Oil & gas prices and rig counts
Key geographies
North America Middle East Asia Pacific
2005
2007
2009
2011
2013
2015
Source: Spears & Associates
High exposure to North America (shale) for Weir

Strong correlation to rig count / horizontal drilling Capex driven by age of equipment, utilisation, and harsh shales Spares driven by harsh shale environment. Since 2007:
30% increase in average well depth of horizontal rigs Average number of frac jobs per well increased from 3 to 5
Global Frac fleet additions (000HP) 2000 1750 1500 1250 1000 750 500 250 0 2006 2007 2008 2009 2010F North America Ex-North America
Source: Spears & Associates
Weir Historic correlation

Source: Weir
Capacity additions by Weir
Customer inventory overhang

Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan00 01 02 03 04 05 06 07 08 09 10
Trend to more unconventional drilling a positive for Weir

Longer term substantial global shale gas potential
Sales 3-month avg
Horizontal rig count
Strong long-term fundamentals, bias to unconventional developments
The Weir Group PLC
30
Oil & Gas Division
Upstream oil & gas production

Where we participate:
Well service, well stimulation, well completion Repair & upgrades for rotating equipment, oilfield drilling equipment High pressure pumps & flow equipment Strong positions in Nth America, Europe, Middle East
Developing positions in Russia, South America, Australia and China

Simplified upstream oil & gas well lifecycle diagram
Decommissioning Drilling & well construction

Well service (acidizing, gravel packing) pumps and iron, Intervention safety restraint systems
Cementing pumps and iron, safety restraint systems, pressure control (BOP) repairs & recertification, inspect & refurbish drill pipe, premium threading
Rotating equipment asset management (UK, Caspian), rotating equipment & valve repair and services
Production
Frac pumps and flow control iron, Well safety iron manifold trailers, completion safety restraint systems, fluid end
repairs, spare parts
The Weir Group PLC
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Oil & Gas Division
Upstream product overview Frac pump

Uses & markets:
High pressure pump used in well stimulation (typically 2500 HP)
Used to pump fluids into well at high pressure to fracture shale and release natural gas and oil locked in shale formations
Used in unconventional drilling globally; most significantly in Nth America today, but international interest emerging Product comprised of a power end and a fluid end
Weir SPM 2500 HP quintaplex frac pump
SPM has largest installed base & production capacity globally

Value proposition surrounds performance, durability, deliverability & aftermarket service; whole of life cost more important than unit cost
Harsh shale environment creating need for higher performance

SPM investing in new pump & fluid end designs
Continuous revenue streams due to spares & wear rates of fluid end
Some inter- changeability with competitor parts; opportunity to retrofit Lead time critical to customers
Weir SPM 3500HP frac pump drawing
The Weir Group PLC
32
Oil & Gas Division
Upstream product overview High pressure flow equipment SPM manifold trailer Weir
Uses & markets
Used to take frac fluid from manifold trailer to well head Used in unconventional drilling globally High pressure drive safety performance standards 70% spares business; requires quick response times & proximity to customers
Weir SPM field restraint system
High pressure performance de-commoditises product

Regional service points creates barrier to entry for smaller players Weir niche position capable of expansion into adjacent segments
New products recently introduced focus on safety

Safety iron manifold trailers, flow line safety restraint system
Weir SPM flow control products
New shales driving replacement rates up; creating market opportunities

Creating a line of safety equipment to support safer working environment Looking at innovative technology to extend equipment life & durability
The Weir Group PLC
33
Oil & Gas Division

Strong niche positions
Upstream; No 1 in pumps and fluid ends; No 2 in flow Downstream; No4 in API refinery pumps in EMEA Aftermarket focus reduces dependency on capex
Sales by category
300
(m)
200 100 0 2007

Upstream
Upstream driven business excluding Gabbioneta

Primarily onshore focus
2008
Downstream
2009
Services
Sales by end use - 2009

2%
Sales channels
Upstream sales channel direct to oilfield service companies Downstream sales channel primarily to EPCs Dedicated services businesses serve end users direct
Major customers
16% 32%
50%
Upstream onshore Upstream Offshore Downstream Other
Product
Market
Market position
Frac Pumps US Onshore Flow Control Iron Global API Refinery Pumps EMEA
No 1 No 2 No 4
The Weir Group PLC
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Oil & Gas Division

Expand share with major service cos Geographic expansion follow customer abroad Engineering upgrade R&D / product development
Increase durability & reliability
Targeted a/c mgt with major service cos Extend SPM overseas
PCS acquisition, South America Shengli Highland MOU
Doubling SPM engineering resources Investing in SPM product development Services

Leverage key accounts Middle East expansion
Flexible manufacturing and service ops Low cost sourcing Complementary acquisitions Leveraging whole of Weir portfolio
Weir Oil & Gas forum

Leverage Weir portfolio
Clear strategy to drive significant growth
The Weir Group PLC
35
Trading update and acquisition strategy

Finance Director, Jon Stanton
The Weir Group PLC
36
Trading Update
Change in order input (1)
5m 2010 v 5m 2009 Q1 2010 v Q1 2009
Outlook statement As a result of stronger than expected translation we now expect profit before intangibles amortisation and tax for the 26 weeks ending 2 July 2010 to be around 140m, which is around 20m ahead of our previous expectations. In addition, as a result of emerging positive trends in original equipment input and continued strong aftermarket input trends we now expect profit before tax and amortisation and tax for the second half of the year to be significantly ahead of the prior year period in constant currency terms.
Minerals Oil & Gas Power & Industrial Group
+27% (+16%)(2) +25% 0% +25%
+30% (+12%)(2) +4% -16% 16%
Minerals split(2) Original Equipment Aftermarket

(1) 2009 restated at 2010 average exchange rates (2) Excluding C$58m Canadian contract
+8% +22%
0% +24%
Expect H1 PBTA of 140m; 20m ahead of previous expectations
The Weir Group PLC
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Acquisition track record

Strong track record in creating value through acquisitions SPM delivered greater than 7% ROIC in 2009
Bottom of cycle year for Oil & Gas sector Increased capacity by 30%
SPM acquisition overview Date acquired: Price paid: Cum. EBITDA: July 2007 $658m $167m
Cum Op. FCF: $174m 2009 pre-tax ROIC: >7%
CH Warman delivered greater than 12% ROIC in 2009

2009 EBITDA 6.2x acquisition price Increased margins through WPS
CH Warman acquisition overview Date acquired: Price paid: Cum. EBITDA: Cum Op. FCF: March 2008 113m 30m 30m
Successful history of sourcing bolt-on acquisitions

Multiflo, Mesa, SOS, PCS
2009 pre-tax ROIC: >12%
Established and successful integration capability

Recognised in Frost & Sullivan best practice guide book
Cumulative EBITDA since acquisition to 2009 Cumulative operating free cash flow includes working capital movements and capital expenditure
Strong acquisition and integration track record
The Weir Group PLC
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Linatex
US$m Revenues EBITDA EBITDA margin 2007 112.1 9.0 8.1% 2008 156.6 19.7 12.6% 2009 114.8 13.9 12.1%
Implied Enterprise value Synergies (US$m) EV/EBITDA EV/EBITDA (inc. mid-point synergies) 10.2x 7.4x
200.0 5-10 14.4x 9.3x
Business Overview
Strategic rationale
Based in KL, Malaysia Leading natural rubber brand Provides wear-resistant products to mining and sand & aggregates industries International footprint Established emerging markets base
Broadens mill circuit offering
High wear applications; strong aftermarket

Leverages Minerals sales & service channels Significant potential in Canadian oil sands
Significant synergistic benefits
The Weir Group PLC
39
Acquisition capacity & potential

Substantial debt capacity for future deals
Up to 2.5x EBITDA, including target Highly cash generative operations
Opportunity to materially enhance shareholder value

Operational; leveraging core Weir skill set
Acquisition integration Maximise operational efficiency (WPS, lean) Reduce working capital Leverage Weir global network Procurement economies of scale
Financial
Maintain efficient capital structure Delivering returns above cost of capital
Opportunity to leverage balance sheet capacity & Weir skill set
The Weir Group PLC
40
Acquisition focus & discipline

Future acquisitions clearly targeted
Sector & product alignment expanding share & portfolio Expanding footprint focus on high growth regions & sectors Aftermarket focus robust, through cycle businesses
Established parameters to enforce acquisition discipline

Exceed cost of capital within 3-years
Earnings accretive Consistent with strategic focus
Geho pumps at Murrin Murrin nickel project in Western Australia
Clear discipline & focus in assessing future acquisitions
The Weir Group PLC
41
Wrap up
CEO, Keith Cochrane
The Weir Group PLC
42
End market growth potential

Positive medium-term end-market forecasts (next 4-5 years)
Rebound from global downturn Rapid development of emerging markets Growing demand for energy & commodities
Medium term market growth rates
Mining (1) New nuclear (3) Upstream O&G

(2)
7% 31% 9%
(1) Nominal CAGR growth 09-13. Assumes 50/50 split capex & aftermarket. Source: CRU/Weir (2) Upstream CAGR 10-13. Source: Douglas Westwood (3) 10-14 increase in new build nuclear. Source: Weir
Strong fundamentals for long-term growth (5 years +)

Annual global industrial production growth projections;
CAGR of 5.2% to 2014
CAGR of 3.8% 2014 to 2019
Long-term driver of growth

Industrial production growth forecast 10%
8% 6% 4% 2% 0% 2011 2013 2015 2017 2019 World Asia-Pacific North America Western Europe
Source: Global Insight
Asia Pacific industrial production growth projections;

CAGR of 8.9% to 2014 CAGR of 6.3% 2014 to 2019
Strong end market growth in the medium and long-term
The Weir Group PLC
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Market positioning
Minerals
Addressable mkt - 2.7bn (of which 1.4bn mining) Market leader
Weir Other
Market share of niche
Niche as % of total market
c.28%
x14
Weir mkt Total mkt
c.7%
Mining equipment market 39bn
Power & Industrial

Power gen. valves market - 2.3bn Growing share
Weir Other
c.4%
x9
Weir mkt Total mkt
c.10%
Valve market 22bn
Oil & Gas

Upstream well services market - 1.1bn Market leader
Weir Other
c.20%
x25
Weir mkt Total mkt
c.4%
Upstream equip. & service market 27bn
Strong niche positions; opportunity to expand into aligned markets
The Weir Group PLC
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Delivering on the strategy

Product & service innovation
Rolling out new pump range featuring numerous patented design features Tricentric first valve globally to complete QME-1 testing Field trials underway of higher HP, more reliable new fracing pump design
Collaborative mindset
KHD; exclusive worldwide agent & recommended service provider MHI; agreement to partner on new UK nuclear programme Shengli Highland; MOU to develop Chinese manufacturing & market opportunities
Expand global capability

Opened service centres in Brazil (SPM) and Russia & Indonesia (Minerals) Transferred safety & control valve manufacture to India & China respectively PCS acquisition extending Australian oil & gas presence
Value enhancing acquisitions

Linatex; leverage potential across Weir Minerals sales & service channels
Strategy actively being executed
The Weir Group PLC
45
Target to double PBTA by 2014

Based on current end-market forecasts Assumes constant currency Size of initiatives are illustrative
Using balance sheet capacity
Collaboration & range extension Innovation & geographic expansion
Mkt growth + operational leverage
Actual 2009 PBTA
Organic growth
Market share gain
Market extension
Acquisitions
Target 2014 PBTA
End-market alignment gives Weir high medium-term growth prospects
The Weir Group PLC
46
Questions & Answers
The Weir Group PLC
47
Appendix
Weir Minerals, Sao Paulo, Brasil Excellent Engineering Solutions
The Weir Group PLC
48
Minerals Division
North America Products manufactured: Full portfolio Markets: Oil Sands, mining, FGD
Europe Products manufactured: Full portfolio (save rubber) Markets: Mining, dewatering, pipeline transport, FGD, gen. ind.
Business structure
19 business
18 production sites
55 service centres
180 distributors
Not on map
Latin America
Africa
Australia 1003 employees Products manufactured: full portfolio Markets: mining, dewatering, general industry
Products manufactured: full portfolio

Markets: mining, oil, pulp & paper, general industry
Products manufactured: full portfolio

Markets: mining, general industry
c.5,200 employees
The Weir Group PLC
49
Services N. America Equipment serviced: Flow control & rotating equipment Markets: Hydro power, intensive industry
Valves N. America Products: Triple offset butterfly valves, check valves Markets: Nuclear & fossil power
Services Europe Equip. serviced: flow control & rotating equipment Markets: Nuclear & fossil power, intensive industry
Valves Europe
Products: gate, control & butterfly valves, Nuclear & conventional safety valves Markets: Nuclear & fossil power, oil & gas
Business structure
9 businesses
9 production sites
13 service centres
40 distributors
Not on map
Pumps N. America Products: industrial pumps Markets: Municipalities, water/waste water
Valves Middle East & South Africa Products: gate and control valves Markets: Oil & gas
Valves China Products: gate, check & safety valves Markets: Fossil power, oil & gas
c.1,900 employees
The Weir Group PLC
50
Oil & Gas Division
SPM
Fort Worth, Texas Products: well service pumps, flow control heads Markets: Drilling and well completion
Mesa
Odessa, Texas Products: Plungers, frac heads, cement heads, proprietary pump products for BJS Markets: NA Drilling and well completion
Gabbioneta
Milan, Italy Products: API 610 centrifugal pumps (horizontal & vertical pumps) Markets: EMEA refining and petrochemical
Business structure
12 businesses
3 production sites
SPM, Mesa and Gabbioneta
33 service centres
North America (Edmonton and Deer Park) profiled opposite Middle East (Dubai and Baku) profiled opposite Joint Ventures (Abu Dhabi and Saudi Arabia) profiled opposite
UK Services
Aberdeen Services: rotating equipment, North Sea health care contracts with energy companies Markets: Drilling, production
N. Am Services
Edmonton, Canada Services: centrifugal pump repair, fluid end repair, field services, large mechanical equipment repairs, APS Markets: Well comp. pipeline, oil sands
Mid East Services

Dubai & Baku Services: BOP repairs & certification, rotating equipment repair, tubulars & premium threading, APS Markets: Drilling, production, power desal
Joint Ventures
Abu Dhabi & Saudi Arabia Services: BOP repair & certification, rotating equipment repair, premium threading, APS, O&M contracts Markets: Drilling, prod., power desal
c.1,900 employees
The Weir Group PLC
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Attendees Group
KEITH COCHRANE Chief Executive Appointed Chief Executive in November 2009, having been Finance Director since 2006. A qualified accountant, Keith joined Stagecoach Group in 1993, becoming Chief Executive in 2000. He joined Scottish Power plc in 2003 where he became director of group finance.
JON STANTON Finance Director Joined the Board in April 2010 from Ernst & Young London where he led the audit of several FTSE100 companies. Jon was with Ernst & Young since 1988, becoming a partner in 2001 after extensive international experience including two-years in Detroit.
ALAN MITCHELSON Legal & Commercial Director Joined the Group in 2000 and was appointed a director in 2001. A number of years were spent in the oil industry before joining Trafalgar House as a legal advisor. Joined Highland Distillers in 1988 as company secretary and latterly legal & personnel director.
HELEN WALKER Group PR Manager Joined Weir in 2001 from a similar role with Royal Doulton plc. Helen is responsible for corporate & internal communications, investor relations and brand management. Previous experience includes journalism and public relations both in-house & consultancy.
JOHN HEASLEY Group Financial Controller Qualified accountant with transaction services experience with Coopers & Lybrand. Joined the Weir Group in 2008 from Scottish Power plc, where latterly he was Group Financial Controller, having been Finance and Investment Director for the renewable energy business.
ANDREW NEILSON Head of Special Projects Graduate engineer & qualified accountant with background in strategy, mergers & acquisitions. Investment banker with HSBC before joining Scottish Power as Corporate Strategy Manager. Prior to joining Weir in February 2010 he managed private equity investments for HBOS.
The Weir Group PLC
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Attendees Minerals Division
SCOT SMITH Divisional Managing Director An MBA, Scot worked in the automotive industry for 18 years with companies including General Motors and Britax, where he held a number of positions including, Managing Director of Britax Geco and Regional MD for the Americas. Scot joined Weir in 2001
PHILIP MORRIS Divisional Finance Director Chartered Accountant who was appointed Minerals Finance Director in 2000. He joined the Weir Group in 1999 with the acquisition of the Warman International Group. Prior to this he has held finance director roles within the Hawker Siddeley and Vickers Groups.
RICARDO GARIB Regional Managing Director: Latin America Graduate industrial engineer and MBA. Previously held senior positions in the machining, building & printing industries. Responsible for Weir Minerals operations across Latin America. Joined Vulco in 1983, with Weir buying the business in 1994.
KEVIN SPENCER Regional Managing Director: Europe Graduate mechanical engineer with seventeen years mining industry experience prior to moving into the supply industry. He held several senior positions with Joy Global and for the last five years Kevin has worked for Weir Minerals.
DAVE ATHEY Regional Managing Director: Africa Graduate Mining Engineer and MBA. He worked in the South African mining industry for: Gold Fields of SA, AECI (ICI), Ingersoll Rand and Murray & Roberts. Joined Weir in 2008 and is currently responsible for Weir Minerals Africa.
The Weir Group PLC
53
Attendees Power & Industrial Division
PHIL CLIFTON Divisional Managing Director A graduate engineer and MBA, joined in 2004 from AWG PLC where he was responsible for government services & business development. Prior to AWG, he was managing director of Reyrolle Ltd., an international business in the industrial power group of Rolls-Royce PLC
DOUGIE MACTAGGART Divisional Finance Director Joined Weir in 2006. Prior to joining Weir, had extensive experience in senior financial positions in the aerospace and defense sectors. In previous roles he has worked overseas, particularly in merger and integration processes.
ROGER GRIFFIN Regional Managing Dir. Emerging Markets Commercial & business development professional with 28 years experience in the power and oil & gas industries. Significant Global experience including several years in the Middle East. Prior to joining Weir 14 years ago, Roger worked with the Dresser organisation.
BILL DUBE President: North America Science graduate with 25 years of experience in the power, oil & gas, petrochemical, chemical and general Industry markets. Extensive international experience (15+ years) in Europe/Middle East/Africa and Asia. Joined Weir in 2003
The Weir Group PLC
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Attendees Oil & Gas Division
STEVE NOON Divisional Managing Director An MBA, CPA, Steve has worked with several multi-nationals including Schefenacker Vision Systems, James Hardie Industries, and The Toro Company. Before joining Weir in 2007, he held the position of president Schefenacker Vision Systems, North America.
BILL CURRIE Divisional Finance Director A Chartered Accountant who has spent entire career of over 30 years with the Weir Group. Previously ran the finance function for the Group's interests in water and defence, becoming Divisional Finance Director for Oil and Gas in April 2008.
BILL TIPTON Divisional VP - Business Development Graduate mechanical engineer with more than 25 years in the energy and oil & gas industries. He has held senior positions in sales, marketing and oil & gas industry business development prior to joining Weir Group in early 2006.
GAVIN NICOL SPM Managing Director A graduate of St. Andrews and Strathclyde Universities, Gavin joined Weir in 2005 and he was MD of the Weir Pumps business prior to its sale in 2007. Gavin has worked for a number of multinationals including Terex, PWC and Coats Viyella.

2010 06 17 Capital Markets Pre So Weir Group

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2010 06 17 Capital Markets Pre So Weir Group

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The Weir Group PLC

2010 Capital Markets Day

Driving Growth the Weir Way

Excellent Engineering Solutions

The Weir Group PLC

2010 Capital Markets Day

Power & Industrial

16:45-17:05 17:05-17:15 17:15-17:25 17:25-17:55

The Weir Group PLC

2010 Capital Markets Day

The Weir Group PLC

2010 Capital Markets Day

The Weir Group today

Sales and operating margins

Sales up over 75%

Earnings and dividend per share

Shareholder returns improved materially

60 50 40 30 20 10 0 2005 2006 23.5 13.2 14.5 16.5 32.4 41.4

2007 2008 EPS (p) DPS (p)

Strong, resilient platform established

Further strong growth forecast for 2010

Focused, high performing group developed over past 5 years

The Weir Group PLC

2010 Capital Markets Day

Driving growth the Weir way the opportunities

Expand global capability

Extend emerging market presence

The Weir Group PLC

2010 Capital Markets Day

Weir Minerals, Sao Paulo, Brasil Excellent Engineering Solutions

The Weir Group PLC

2010 Capital Markets Day

2009 Input by sector %

Minerals Oil & Gas Power Industrial Other

2009 Input by geography %

Minerals represents 59% of Weir group revenues

Input OE / Aftermarket % 100

Key strategic highlights of past 3-years

40 20 0 2007 2008 Aftermarket 2009 OE

The Weir Group PLC

2010 Capital Markets Day

Addressable market by sector

Mining Sand & Gravel FGD/Power Oil Sands Industrial

Current addressable market of 2.7bn (1.4bn from mining)

Addressable market by Geography

N. America S. America Europe & ME Australia Asia & Africa

Estimated market shares

Broad commodity exposure

Market leading position

Weir FL Smidth Metso ITT Others

Fragmented market; opportunities to expand share

Diverse global market with strong aftermarket content

The Weir Group PLC

2010 Capital Markets Day

End market fundamentals

Total global ore production 2009-2013 (million tonnes of ore)

OE sales linked to capital expenditure levels

Total CAPEX 2009-2013 ($m)

Medium term growth prospects underpinned by:

40000 30000 20000 10000 0

Industrialisation of emerging markets

Long lead time from greenfield development to aftermarket

Weir historic correlation OE sales (actual) vs Minerals capex