2010 06 17 CapitalMarketsPreso

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 2010 Capital Markets Day 2
Agenda
 Introduction Keith Cochrane, Chief Executive 15:45-15:55
 Minerals Scot Smith, Divisional Managing Director 15:55-16:15
 Power & Industrial Phil Clifton, Divisional Managing Director 16:15-16:35
 Coffee Break 16:35 – 16:45
 Oil & Gas Steve Noon, Divisional Managing Director 16:45-17:05
 Trading update & acquisition Jon Stanton, Group Finance Director 17:05-17:15
strategy
 Wrap-up Keith Cochrane, Chief Executive 17:15-17:25
 Question & Answer session Group Executive 17:25-17:55
 Drinks 17:55 – 19:30

Introduction
CEO, Keith Cochrane
Weir Oil & Gas - Weir SPM, Texas, USA
Excellent
Engineering
Solutions
The Weir Group today 1,600

Sales and operating margins
14.7% 16%
13.7%
 High performing, focused group developed in past 5 years 1,400

1,200
11.5% 14%
12%
9.3%
8.4%
 Focused on three end-markets with positive fundamentals
1,000 10%
800 8%
1,354 1,390
600 6%
 Input from core sectors increased from 64% to 86% of input 400 789
941 1,061
4%
200 2%
 Sales up over 75% 0 0%
2005 2006 2007 2008 2009
 Margins increased by 600bps Sales £m (RHS) EBITA margin (LHS)
Earnings and dividend per share

70 64.1
59.3
60
 Shareholder returns improved materially 50
41.4
40
 Share price more than trebled 30 23.5
32.4
18.5 21.0
16.5
 Earnings per share increased over 170%
20 13.2 14.5
10
 Dividend per share up nearly 60% 0

2005 2006 2007 2008 2009
EPS (p) DPS (p)
Input by sector
 Strong, resilient platform established 100%
90%
80%
 Aftermarket contributed 58% of 2009 input 70%
60%
 Sales, EBITA, margins, EPS & DPS all increased in 2009 50%
40%
30%
 Highly cash generative; net debt reduced to £119m 20%
10%
0%
 Further strong growth forecast for 2010 2005 2006 2007 2008 2009
Minerals Oil & Gas Power Other
Focused, high performing group developed over past 5 years

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
 Extend emerging market presence

Oil & Gas
Power & Industrial
 Quality acquisitions skillfully integrated
Clear strategy to grow returns over the next five years

Minerals
Scot Smith
Weir Minerals, Sao Paulo, Brasil
Excellent
Engineering
Solutions
Minerals Division
2009 Input by sector %
Overview 3%
9%
9% Minerals
£m 2007 (1) 2008 (1) 2009 Oil & Gas
9% Power
Input OE 394 466 298 Industrial
70% Other
Input aftermarket 335 431 420
Input Total 729 897 718
Revenue 633 825 813 2009 Input by geography %
Emerging
EBITA 92 130 134 markets
22% 22%
Operating margins (2) 14.5% 15.8% 16.4% North America
Europe & FSU
Australia
 Minerals represents 59% of Weir group revenues 16%
12% Asia Pacific
Mid East & Africa
 71% of EBITA South America
11% 17%
 Specialises in global delivery & support of equipment for slurry

Input OE / Aftermarket %
handling and processing in mining & mineral applications 100
 Product applications extend to oil sands & FGD 80
54 52 42
60
(%)
40
 Key strategic highlights of past 3-years
20
46 48 58
 2007: £9m Multiflo acquisition & 2010 facility expansion 0
 2008: £113m CH Warman acquisition 2007 2008 2009
Aftermarket OE
 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
Minerals Division
End markets Addressable market by sector
 Total mining equipment spend to reach £39bn by 2013 32% Mining
 Weir Minerals chosen mining sectors account for £1.4bn Sand & Gravel
FGD/Power
53%
 Mill circuit is relatively small component of total cost of mine 3%

Oil Sands
Industrial
8%
4%
Source: CRU
 Current addressable market of £2.7bn (£1.4bn from mining) Addressable market by Geography
 Mill circuit is relatively small component of total cost of mine 12%

28%
 55% OEM, 45% Aftermarket (spares & service) N. America
19% S. America
Europe & ME
Australia
 Diverse market 15% Asia & Africa
26%
 Extensive geographic reach Source: CRU
 Emerging markets represent 21% of market Estimated market shares
 Broad commodity exposure

Weir
FL Smidth
 Market leading position Metso

ITT
Others
 Market leader across Weir sectors
Source: Weir
 Fragmented market; opportunities to expand share estimates
Diverse global market with strong aftermarket content

Minerals Division
End market fundamentals Total global ore production – 2009-2013

(million tonnes of ore)
6,200
 Aftermarket growth driven by production levels 6,000
5,800
 Strong growth predicted as markets continue to recover 5,600
5,400
 Up to two months visibility of revenues 5,200
5,000
4,800
 OE sales linked to capital expenditure levels 4,600
2008 2009 2010 2011 2012 2013

 CAPEX recovery expected in 2011-2012 Source: CRU
 Visibility between 6 months to a year Total CAPEX – 2009-2013 ($m)

60000
50000
 Medium term growth prospects underpinned by: 40000
30000
 Growth in oil sands market 20000
 Strong positioning of Weir & current project commitments 10000
 Industrialisation of emerging markets 2008 2009 2010 2011 2012 2013

Source: CRU
Weir historic correlation –

 Long lead time from greenfield development to aftermarket OE sales (actual) vs Minerals capex
40%
 Years 1 to 6 - Project scoping up to contractor selection 30%
Warman
acquisition
Weir grows faster Market
 Year 6 to 7 – Engineering contractor selected and major equipment selected 20%
than market downturn
 Year 7 to 8 – Pumps selected 10%
 Year 8 to 9 – Plant construction / pumps installed 0%

2005 2006 2007 2008 2009
-10%
 Year 9 to 10 – Plant commissioned. Spares cycle commences 3m-12m later YOY % Change in Global Mine CapEx YOY % Weir Sales
Source: Weir/CRU
Strong long-term fundamentals underpin medium term prospects

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
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
Minerals Division
Product overview – Cyclones

 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 A CAVEX® hydrocyclone cluster
conventional feed head liners
Minerals Division
Product overview – Mill liners

 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
A VULCO® mill liner with lifter bars &
 Linatex acquisition enhances Weir market position pulp discharge screen
Minerals Division
Product overview – HPGR

 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
Minerals Division
Market position & sales structure Sales by product
1000
 Broad commodity exposure 800
 Copper, alumina, iron & gold account for less than half end-market (£m)
600
exposure 400
 Weir holds a leading market share 200

0
 Relatively fragmented market; Weir holds leading market positions 2007 2008 2009
 No1 supplier of slurry pumps Pumps Other Service
 Leveraging position to cross-sell full portfolio of products 2009 Sales by commodity

 3-year CAGR of 15% achieved to 2009 Copper
 Integrated sales structure Alumina
 Selling full portfolio of products Iron

 Service strategy to capture aftermarket sales
Gold
 Diverse customer base
Other - i.e. coal,
 20% of revenues from top-10 customers nickel, oil sands, etc.
 Majority of sales through direct channels

Market
Major customers Product
position
Slurry Pumps No 1
Cyclones No 2
Slurry Valves No 3
Mill Liners No 2
Minerals Division
Strategy & development initiatives

Divisional strategy Strategic initiatives
 Continual investment in product  Roll out pump enhancements – WRT, WBH

development and wear technology
 Improved product wear life – new metal and
 Cross-sell full portfolio across existing rubber formulas and impeller designs
sales channels
 Mill Circuit University; cross-sell training

 Ancillary products; broaden product range
across the mill circuit
 Drive complementary product & service
sales
 Comminution strategy – focus on high
aftermarket / customer critical products
 KHD agreement as key part of divisional
comminution strategy
 Geographic expansion into regions with
lesser presence
 Oil sands / FGD opportunities
 Enhanced, proactive service strategy to
capture full aftermarket  Facility investment; China, Australia, S. Am.
Clear strategy to leverage existing market position

Power & Industrial

Phil Clifton
Weir Power & Industrial - Weir Valves & Controls, Suzhou, China
Excellent
Engineering
Solutions
Power & Industrial Division

Overview 4%
11%
11%
Other
£m 2007 (1) 2008 (1) 2009 18% Oil & Gas
Power
Input OE 108 132 108 Industrial
Water
Input aftermarket 117 157 158 56%

Emerging
markets
EBITA 15 20 23 8%
North America
Operating margins (2) 7.1% 8.3% 9.5% 18%
Europe & FSU
41%
Australia
 What we do: Asia Pacific

Mid East & Africa
 Design and production of severe service and critical safety valves 33%
South America
 Specialist pumps for municipal and industrial applications

 Engineered service solutions Input OE / Aftermarket %
100
 Strong organic growth in power, offset by weaker industrial markets 80 48 46 40
 Power contribution increased from 40% to 56% of input (%) 60
 Margin improvement aided by lean manufacturing and low cost sourcing 40

52 54 60
20
 New nuclear valves facility opened in Ipswich, Massachusetts, USA 0
 Significant nuclear orders received, particularly for new plants in China 2007 2008 2009
Aftermarket OE
 Power station overhaul contract awarded by Libya Iron & Steel Co.
(1) 2007 and 2008 restated at 2009 average exchange rates

Valves - End markets Power market by sector - £2.3bn
5%
 Global valve market c.£22bn 25%
Installed Base
 £2.3bn addressable power market, we serve niche sectors only New Build
Life Extension
 Valves also used in industrial, petrochemical and oil & gas apps 70%
Sources: Platts, Mott MacDonald,
Weir internal data supported by
customer input
 Geographic focus of market Served market by region - £2.3bn
 Strong product and service markets in North America, France & 19%
North America
UK 4%
35%
Europe
China
 New build power growth in China 14% India
Rest of World
28% Sources: Platts, Mott MacDonald,

Weir internal data supported by
 Strong share of niche sector customer input
Nuclear new build market – c.£0.5bn p.a.

 Focus on severe service and safety valves
 High barriers to entry Weir
 Stringent accreditation process Flowserve
Tyco
 Customers require track record & reference sites Velan
Others
 Current c.8% share of specialist nuclear new build valves
Source: Weir internal data
supported by customer input
Valve products focused on niche markets

Valves - End market fundamentals Global power generation growth by

region (Trillion KWh)
30
25
 Ageing power plants driving investment in life extension and new build 20
Central &
South America
Middle East &
15 Africa
Asia
10
5 North America
 Balanced presence in new build & after markets reduces market risk 0 Europe
2005 2010 2015 2020
 OE market drivers are application dependent Source: US Energy Information Administration
 Technology on one end of the scale and price on the other Global power plants by age (Coal, Oil,
Nuclear)
 Life extension programmes & improving reliability driving the aftermarket
12%
<20
19%
 Global nuclear renaissance driven by supply gaps within context of 49% 21-30
31-40
>41
CO2 reductions 20%
Source: Platts
 Orders for nuclear power plants in China and US being placed now
 Europe, India and Russia important markets in the medium-term Expected new nuclear plants
(Weir £m opportunity)
 UK and Canada key service markets 800
600 SNPTC
CNNC
400 Areva
 Delivery of valves between 2-5 years from project announcement, 200
Westinghouse
Korea
depending on the generating technology 0

Toshiba US
GE Hitachi
Russia
 Weir has robust visibility of the nuclear valve market over next five years 2010 2012 2014 2016
Other
Source: Customer inputs supported by Weir internal data
Strong long-term fundamentals

Typical Pressurized Water Reactor (PWR)

OVERPRESSURE STEAM GENERATOR
PROTECTION SAFETY VALVE
MAIN STEAM GATE / GLOBE /

ISOLATION CHECK VALVE
CHECK / BUTTERFLY
VALVE VALVES
GATE / GLOBE /
CHECK / BUTTERFLY
VALVES
MAIN FEEDWATER
CONTROL VALVE ISOLATION VALVE SAFETY RELIEF VALVE
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
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
Market position & sales structure Power & Industrial; Third Party Output
(£m)
 Large power market, small relative niche positions 300

250
 Growing market position in nuclear, hydro and renewables 200

150
100
 Developing emerging markets position, particularly in China & 50
India 0
2007 2008 2009
Original Equipment Spares Services
 Technical sales process, driven by application engineering

 Via utilities for life extension & service offering
 Nuclear approvals through reactor designers
 EPC contractors
Major customers Market Market
Product
position
Nuclear Tricentric Nuclear No. 1
new
build
Sebim China No. 1

LISCO - LIBYA nuclear
Hopkinsons MSIV Nuclear No. 2

(PWR
Design)
Atwood & Morrill Nuclear No. 1

MSIV (BWR
design)

 Increase range of approved nuclear  Investing in further nuclear valve approvals

products & services  Across products & reactor designs
 Investing in sales & application engineers to

 Expand valve products into other accelerate end-market expansion
markets e.g. Petrochem, Oil & Gas  Control & safety valve focus
 Opening Singapore hub to drive Asia-Pacific

 Expand emerging markets position sales
 Expand range and reach of hydro  Expanding production of safety & control
valves in India & China
services
 Replicating service model in new markets
 Extending services – new
technologies  MHI agreement on UK nuclear pump install.
Leveraging products across wider end markets & geography

Oil & Gas

Steve Noon
Excellent
Engineering
Solutions
Oil & Gas Division

Overview
£m 2007 (1) 2008 (1) 2009 Minerals
Oil & Gas
Power
Input OE 97 158 126
Industrial
Input aftermarket 106 174 179
97%
Emerging
EBITA 44 73 52 markets
1%
Operating margins (2) 19.3% 22.6% 17.4% 25% North America

Europe & FSU
47% Australia
 Market leading position in pressure pumping and flow control 5% Asia Pacific
Mid East & Africa
 Niche position in centrifugal pumps for refining and petrochemicals 22%

South America
 Respected services positions for repair and upgrades

Input OE / Aftermarket %
 Resilient business model 100
48 48 41
 Leading margin performance versus peers 80
(%) 60
40
 Key developments over the past 3-years: 20
52 52 59
 Acquisitions strengthening market position (Mesa, SOS, PCS) 0

2007 2008 2009
 30% capacity expansion at SPM Aftermarket OE
 New service centres in the US/Canada/Mexico and Brazil

(1) 2007 and 2008 restated at 2009 average exchange rates
Oil & Gas Division
Upstream end markets Equipment market by sector - £27bn
10%
Drilling &
 Niche player in large upstream market 42%
Completion
Oil Production &
 9.1% CAGR expected 2010 – 2013 (1) Transportation
48% Gas Production &
Transportation
Source: Douglas
Westwood
 Equipment and aftermarket size est £27bn
Served market - £1.1bn (4% of total)
 ~49% based in North America Emerging
markets
 ~80% onshore 10%
N. America
S. America
 Served market (primarily well services) – £1.1bn

26% Europe & FSU
50%
Middle East &

 ~50% based in North America; 36% emerging markets Africa
11% Asia
 ~68% capex; 32% aftermarket 3%
Source: Douglas
Westwood
Estimated market shares
 ~20% market share of served market

Weir
 Strong position in aftermarket & spares FMC Fluid Control
Gardner Denver
Anson (NOV)
Others
(1) – Source: Douglas Westwood
Source: Weir
estimates
Niche position – opportunities to expand into adjacent market streams

Oil & Gas Division NAM drilling trajectory
Upstream end market fundamentals Horiztonal + Directional

Percent of Total Rigs
North America International

 Growth drivers 100%
80%
 North America – Horizontal drilling (shale plays) 60%

40%
 Globally – Oil & gas prices and rig counts 20%
0%
2005 2007 2009 2011 2013 2015
 Key geographies Source: Spears & Associates
Global Frac fleet additions (000’HP)

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

Customer inventory
overhang
 Trend to more unconventional drilling a positive for Weir Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan-
00 01 02 03 04 05 06 07 08 09 10
 Longer term substantial global shale gas potential Sales 3-month avg Horizontal rig count
Strong long-term fundamentals, bias to unconventional developments

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
Cementing pumps and iron, safety

Decommissioning restraint systems, pressure control
(BOP) repairs & recertification,
Drilling & well inspect & refurbish drill pipe,
construction premium threading
Well service (acidizing, gravel

packing) pumps and iron, Intervention
safety restraint systems
Well Frac pumps and flow control iron,

Rotating equipment asset safety iron manifold trailers,
completion safety restraint systems, fluid end
management (UK, Caspian), rotating Production
equipment & valve repair and services repairs, spare parts
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
Weir SPM 3500HP frac pump drawing
 Some inter- changeability with competitor parts; opportunity to retrofit
 Lead time critical to customers
Oil & Gas Division
Upstream product overview – High pressure flow equipment

Weir SPM manifold trailer
 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
Oil & Gas Division
Market position & sales structure Sales by category
 Strong niche positions 300

(£m)
 Upstream; No 1 in pumps and fluid ends; No 2 in flow 200
 Downstream; No4 in API refinery pumps in EMEA 100
 Aftermarket focus reduces dependency on capex
0
 Upstream driven business excluding Gabbioneta 2007 2008 2009

Upstream Downstream Services
 Primarily onshore focus
Sales by end use - 2009
 Sales channels 2%
 Upstream sales channel direct to oilfield service companies Upstream
onshore
32%
 Downstream sales channel primarily to EPC’s Upstream
Offshore
50%
 Dedicated services businesses serve end users direct Downstream
Major customers Other

16%
Market
Product Market
position
Frac Pumps US Onshore No 1
Flow Control Iron Global No 2
API Refinery Pumps EMEA No 4
Oil & Gas Division

 Expand share with major service co’s  Targeted a/c mgt with major service co’s
 Geographic expansion – follow customer  Extend SPM overseas

abroad
 PCS acquisition, South America
 Shengli Highland MOU
 Engineering upgrade
 R&D / product development –  Doubling SPM engineering resources

 Increase durability & reliability
 Investing in SPM product development
 Flexible manufacturing and service ops
 Services
 Low cost sourcing  Leverage key accounts
 Middle East expansion
 Complementary acquisitions
 Weir Oil & Gas forum
 Leveraging whole of Weir portfolio  Leverage Weir portfolio
Clear strategy to drive significant growth

Trading update and acquisition strategy

Finance Director, Jon Stanton
Excellent
Engineering
Solutions
Trading Update
Outlook statement
Change in order input (1) “As a result of stronger than

expected translation we now
5m 2010 v 5m 2009 Q1 2010 v Q1 2009
expect profit before
intangibles amortisation and
Minerals +27% (+16%)(2) +30% (+12%)(2)
tax for the 26 weeks ending 2
Oil & Gas +25% +4% July 2010 to be around
£140m, which is around £20m
Power & Industrial 0% -16% ahead of our previous
expectations. In addition, as a
Group +25% 16% result of emerging positive
trends in original equipment
input and continued strong
Minerals split(2) aftermarket input trends we
Original Equipment +8% 0% now expect profit before tax
Aftermarket +22% +24% and amortisation and tax for
the second half of the year to
(1) 2009 restated at 2010 average exchange rates
(2) Excluding C$58m Canadian contract
be significantly ahead of the
prior year period in constant
currency terms.”
Expect H1 PBTA of £140m; £20m ahead of previous expectations

Acquisition track record

SPM acquisition overview
 Strong track record in creating value through acquisitions
Date acquired: July 2007
 SPM delivered greater than 7% ROIC in 2009 Price paid: $658m

Cum. EBITDA: $167m
 Bottom of cycle year for Oil & Gas sector Cum Op. FCF: $174m
 Increased capacity by 30% 2009 pre-tax ROIC: >7%
 CH Warman delivered greater than 12% ROIC in 2009

CH Warman acquisition overview
 2009 EBITDA 6.2x acquisition price
 Increased margins through WPS Date acquired: March 2008
Price paid: £113m
Cum. EBITDA: £30m
 Successful history of sourcing bolt-on acquisitions Cum Op. FCF: £30m
 Multiflo, Mesa, SOS, PCS 2009 pre-tax ROIC: >12%
 Established and successful integration capability • Cumulative EBITDA since acquisition to 2009
• Cumulative operating free cash flow includes
 Recognised in Frost & Sullivan best practice guide book working capital movements and capital expenditure
Strong acquisition and integration track record

Linatex
US$m 2007 2008 2009
Revenues 112.1 156.6 114.8

EBITDA 9.0 19.7 13.9
EBITDA margin 8.1% 12.6% 12.1%
Implied Enterprise value 200.0

Synergies (US$m) 5-10
EV/EBITDA 10.2x 14.4x
EV/EBITDA (inc. mid-point synergies) 7.4x 9.3x
Business Overview Strategic rationale
 Based in KL, Malaysia  Broadens mill circuit offering

 Leading natural rubber brand  High wear applications; strong aftermarket
 Provides wear-resistant products to mining  Leverages Minerals sales & service
and sand & aggregates industries channels
 International footprint  Significant potential in Canadian oil sands
 Established emerging markets base  Significant synergistic benefits
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

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

Wrap up
CEO, Keith Cochrane
Excellent
Engineering
Solutions
End market growth potential

Medium term market
growth rates
 Positive medium-term end-market forecasts (next 4-5 years) Mining (1) 7%
 Rebound from global downturn New nuclear (3) 31%

 Rapid development of emerging markets (2)
Upstream O&G 9%
 Growing demand for energy & commodities
(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
Long-term driver of
growth
 Strong fundamentals for long-term growth (5 years +) Industrial production growth forecast
10%
 Annual global industrial production growth projections;
8%
 CAGR of 5.2% to 2014 6%
 CAGR of 3.8% 2014 to 2019 4%
 Asia Pacific industrial production growth projections; 2%

0%
 CAGR of 8.9% to 2014 2011 2013 2015 2017 2019
World Asia-Pacific
 CAGR of 6.3% 2014 to 2019 North America Western Europe
Source: Global Insight
Strong end market growth – in the medium and long-term

Market share Niche as % of

Market positioning of niche total market
Minerals
 Addressable mkt - £2.7bn
(of which £1.4bn mining) Mining equipment
Weir
Other c.28% x14 Weir mkt
Total mkt
c.7%
market £39bn
 Market leader
Power & Industrial
 Power gen. valves

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

 Upstream well services
market - £1.1bn Upstream equip. &
Weir Weir mkt
c.4% service market
 Market leader Other c.20% x25 Total mkt
£27bn
Strong niche positions; opportunity to expand into aligned markets

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

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 Organic growth Market share Market Acquisitions Target 2014
PBTA gain extension PBTA
End-market alignment gives Weir high medium-term growth prospects

Questions & Answers
Excellent
Engineering
Solutions
Appendix
Weir Minerals, Sao Paulo, Brasil
Excellent
Engineering
Solutions
Minerals Division
North America Europe
Business structure • Products
manufactured:
• Products
manufactured:
Full portfolio Full portfolio
• Markets: (save rubber)
 19 business Oil Sands, • Markets: Mining,
mining, FGD dewatering,
pipeline transport,
FGD, gen. ind.
 18 production sites
 55 service centres
 180 distributors Latin America Africa Australia

• Products • Products • 1003 employees
 Not on map manufactured: manufactured: • Products
full portfolio full portfolio manufactured:
• Markets: mining, • Markets: mining, full portfolio
oil, pulp & general industry • Markets: mining,
 c.5,200 employees paper, general
industry
dewatering,
general industry
Power & Industrial Division Services N. America Valves N. America Services Europe Valves Europe
Business structure • Equipment

serviced: Flow
• Products: Triple
offset butterfly
• Equip. serviced:
flow control &
• Products: gate,
control &
control & rotating valves, check rotating butterfly valves,
equipment valves equipment Nuclear &
 9 businesses • Markets: Hydro • Markets: • Markets: conventional
safety valves
power, intensive Nuclear & fossil Nuclear & fossil
industry power power, intensive • Markets:
industry Nuclear & fossil
power, oil & gas
 40 distributors Valves Middle East

Pumps N. America Valves China
 Not on map • Products:
& South Africa
• Products: gate,
industrial pumps • Products: gate check & safety
and control valves
• Markets: valves
Municipalities, • Markets: Fossil
water/waste • Markets: Oil & power, oil & gas
 c.1,900 employees water gas
Oil & Gas Division SPM Mesa Gabbioneta

• Fort Worth, Texas • Odessa, Texas • Milan, Italy
Business structure • Products: well
service pumps, flow
• Products: Plungers,
frac heads, cement
• Products: API 610
centrifugal pumps
control heads heads, proprietary (horizontal & vertical
 12 businesses • Markets: Drilling and pump products for
BJS
pumps)
well completion • Markets: EMEA
• Markets: NA Drilling refining and
and well completion petrochemical
 SPM, Mesa and Gabbioneta
 North America (Edmonton and
Deer Park) profiled opposite
 Middle East (Dubai and Baku)
profiled opposite
Mid East Services
 Joint Ventures (Abu Dhabi and UK Services N. Am Services
• Edmonton, Canada • Dubai & Baku
Joint Ventures
• Abu Dhabi & Saudi
• Aberdeen
Arabia
Saudi Arabia) profiled opposite • Services: rotating • Services: centrifugal • Services: BOP repairs
pump repair, fluid & certification, rotating • Services: BOP repair
equipment, North Sea
end repair, field equipment repair, & certification,
health care contracts
services, large tubulars & premium rotating equipment
with energy
mechanical threading, APS repair, premium
companies
equipment repairs, • Markets: Drilling, threading, APS, O&M
• Markets: Drilling,
 c.1,900 employees APS production, power contracts
production
• Markets: Well comp. desal • Markets: Drilling,
pipeline, oil sands prod., power desal
Attendees – Group
KEITH COCHRANE JON STANTON ALAN MITCHELSON

Chief Executive Finance Director Legal & Commercial Director
Appointed Chief Executive in November 2009, Joined the Board in April 2010 from Ernst & Joined the Group in 2000 and was appointed a
having been Finance Director since 2006. A Young London where he led the audit of director in 2001. A number of years were spent
qualified accountant, Keith joined Stagecoach several FTSE100 companies. Jon was with in the oil industry before joining Trafalgar
Group in 1993, becoming Chief Executive in Ernst & Young since 1988, becoming a partner House as a legal advisor. Joined Highland
2000. He joined Scottish Power plc in 2003 in 2001 after extensive international experience Distillers in 1988 as company secretary and
where he became director of group finance. including two-years in Detroit. latterly legal & personnel director.
HELEN WALKER JOHN HEASLEY ANDREW NEILSON

Group PR Manager Group Financial Controller Head of Special Projects
Joined Weir in 2001 from a similar role with Qualified accountant with transaction services Graduate engineer & qualified accountant with
Royal Doulton plc. Helen is responsible for experience with Coopers & Lybrand. Joined the background in strategy, mergers & acquisitions.
corporate & internal communications, investor Weir Group in 2008 from Scottish Power plc, Investment banker with HSBC before joining
relations and brand management. Previous where latterly he was Group Financial Scottish Power as Corporate Strategy Manager.
experience includes journalism and public Controller, having been Finance and Investment Prior to joining Weir in February 2010 he
relations both in-house & consultancy. Director for the renewable energy business. managed private equity investments for HBOS.
Attendees – Minerals Division
SCOT SMITH PHILIP MORRIS

Divisional Managing Director Divisional Finance Director
An MBA, Scot worked in the automotive Chartered Accountant who was appointed
industry for 18 years with companies including Minerals Finance Director in 2000. He joined the
General Motors and Britax, where he held a Weir Group in 1999 with the acquisition of the
number of positions including, Managing Warman International Group. Prior to this he has
Director of Britax Geco and Regional MD for held finance director roles within the Hawker
the Americas. Scot joined Weir in 2001 Siddeley and Vickers Groups.
RICARDO GARIB KEVIN SPENCER DAVE ATHEY

Regional Managing Director: Latin America Regional Managing Director: Europe Regional Managing Director: Africa
Graduate industrial engineer and MBA. Graduate mechanical engineer with seventeen Graduate Mining Engineer and MBA. He
Previously held senior positions in the years mining industry experience prior to moving worked in the South African mining industry for:
machining, building & printing industries. into the supply industry. He held several senior Gold Fields of SA, AECI (ICI), Ingersoll Rand
Responsible for Weir Minerals operations positions with Joy Global and for the last five and Murray & Roberts. Joined Weir in 2008
across Latin America. Joined Vulco in 1983, years Kevin has worked for Weir Minerals. and is currently responsible for Weir Minerals
with Weir buying the business in 1994. Africa.
Attendees – Power & Industrial Division
PHIL CLIFTON DOUGIE MACTAGGART

A graduate engineer and MBA, joined in 2004 Joined Weir in 2006. Prior to joining Weir, had
from AWG PLC where he was responsible for extensive experience in senior financial
government services & business development. positions in the aerospace and defense
Prior to AWG, he was managing director of sectors. In previous roles he has worked
Reyrolle Ltd., an international business in the overseas, particularly in merger and integration
industrial power group of Rolls-Royce PLC processes.
ROGER GRIFFIN BILL DUBE

Regional Managing Dir. – Emerging Markets President: North America
Commercial & business development Science graduate with 25 years of experience
professional with 28 years experience in the in the power, oil & gas, petrochemical,
power and oil & gas industries. Significant chemical and general Industry markets.
Global experience including several years in the Extensive international experience (15+ years)
Middle East. Prior to joining Weir 14 years ago, in Europe/Middle East/Africa and Asia. Joined
Roger worked with the Dresser organisation. Weir in 2003
Attendees – Oil & Gas Division
STEVE NOON BILL CURRIE

An MBA, CPA, Steve has worked with several A Chartered Accountant who has spent entire
multi-nationals including Schefenacker Vision career of over 30 years with the Weir Group.
Systems, James Hardie Industries, and The Previously ran the finance function for the
Toro Company. Before joining Weir in 2007, he Group's interests in water and defence,
held the position of president Schefenacker becoming Divisional Finance Director for Oil
Vision Systems, North America. and Gas in April 2008.
BILL TIPTON GAVIN NICOL

Divisional VP - Business Development SPM Managing Director
Graduate mechanical engineer with more than A graduate of St. Andrews and Strathclyde
25 years in the energy and oil & gas industries. Universities, Gavin joined Weir in 2005 and he
He has held senior positions in sales, was MD of the Weir Pumps business prior to its
marketing and oil & gas industry business sale in 2007. Gavin has worked for a number of
development prior to joining Weir Group in multinationals including Terex, PWC and Coats
early 2006. Viyella.

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The Weir Group PLC 2010 Capital Markets Day

Driving Growth the Weir Way

 Minerals Scot Smith, Divisional Managing Director 15:55-16:15

 Power & Industrial Phil Clifton, Divisional Managing Director 16:15-16:35

 Coffee Break 16:35 – 16:45

 Oil & Gas Steve Noon, Divisional Managing Director 16:45-17:05

 Question & Answer session Group Executive 17:25-17:55

 Drinks 17:55 – 19:30

Weir Oil & Gas - Weir SPM, Texas, USA

The Weir Group today 1,600

 High performing, focused group developed in past 5 years 1,400

Earnings and dividend per share

 Dividend per share up nearly 60% 0

Focused, high performing group developed over past 5 years

Driving growth the Weir way – the opportunities

 Expand global capability

 Extend emerging market presence

 Quality acquisitions skillfully integrated

Clear strategy to grow returns over the next five years

Weir Minerals, Sao Paulo, Brasil

 Specialises in global delivery & support of equipment for slurry

End markets Addressable market by sector

 Total mining equipment spend to reach £39bn by 2013 32% Mining

 Mill circuit is relatively small component of total cost of mine 3%

 Mill circuit is relatively small component of total cost of mine 12%

 Emerging markets represent 21% of market Estimated market shares

 Broad commodity exposure

 Market leading position Metso

Diverse global market with strong aftermarket content

End market fundamentals Total global ore production – 2009-2013

 Aftermarket growth driven by production levels 6,000

 Strong growth predicted as markets continue to recover 5,600

 Up to two months visibility of revenues 5,200

 OE sales linked to capital expenditure levels 4,600

2008 2009 2010 2011 2012 2013

 Visibility between 6 months to a year Total CAPEX – 2009-2013 ($m)

 Medium term growth prospects underpinned by: 40000

 Growth in oil sands market 20000

 Strong positioning of Weir & current project commitments 10000

 Industrialisation of emerging markets 2008 2009 2010 2011 2012 2013

Weir historic correlation –

 Year 7 to 8 – Pumps selected 10%

 Year 8 to 9 – Plant construction / pumps installed 0%

Strong long-term fundamentals underpin medium term prospects

Product overview – Slurry pumps

 Brand portfolio with market leading wear life

 Innovative new WARMAN® WBH centrifugal slurry pump

 Aftermarket cycle dependent on severity of application

Product overview – Cyclones

 CAVEX® design significantly reduces turbulence,

 Turbulence causes uneven wear

Product overview – Mill liners

 Weir has extensive mill liner experience & expertise

Product overview – HPGR

 KHD® has developed & patented Stud-Plus®

 Weir mill circuit expertise & service will introduce

Market position & sales structure Sales by product

 Weir holds a leading market share 200

 No1 supplier of slurry pumps Pumps Other Service

 Leveraging position to cross-sell full portfolio of products 2009 Sales by commodity

 Integrated sales structure Alumina

 Selling full portfolio of products Iron

 Majority of sales through direct channels