2010 06 17 Capital Markets Pre So Weir Group

The Weir Group PLC 2010 Capital Markets Day

Driving Growth the Weir Way2010 Capital Markets DayLondon, 17 June 2010

ExcellentEngineeringSolutions

2The Weir Group PLC 2010 Capital Markets Day

Agenda

� Introduction

� Minerals

� Power & Industrial

� Coffee Break

� Oil & Gas

� Trading update & acquisition strategy

� Wrap-up

� Question & Answer session

� Drinks

Keith Cochrane, Chief Executive 15:45-15:55

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

Phil Clifton, Divisional Managing Director 16:15-16:35

16:35 – 16:45

Steve Noon, Divisional Managing Director 16:45-17:05

Jon Stanton, Group Finance Director 17:05-17:15

Keith Cochrane, Chief Executive 17:15-17:25

Group Executive 17:25-17:55

17:55 – 19:30


CEO, Keith Cochrane


Introduction

Weir Oil & Gas - Weir SPM, Texas, USA


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� Sales up over 75%� Margins increased by 600bps

� Shareholder returns improved materially� Share price more than trebled� Earnings per share increased over 170%� Dividend per share up nearly 60%

� 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� Further strong growth forecast for 2010

Sales and operating margins

Focused, high performing group developed over past 5 years

Earnings and dividend per share

23.532.4

41.4

59.364.1

13.2 14.5 16.5 18.5 21.0

0

10

20

30

40

50

60

70

2005 2006 2007 2008 2009EPS (p) DPS (p)

Input by sector

0%10%20%30%40%50%60%70%80%90%

100%

2005 2006 2007 2008 2009Minerals Oil & Gas Power Other

789 941 1,0611,354 1,390

8.4%9.3%

11.5%

13.7%14.7%

0200400600800

1,0001,2001,4001,600

2005 2006 2007 2008 20090%2%4%6%8%10%12%14%16%

Sales £m (RHS) EBITA margin (LHS)


� 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� Extend emerging market presence

� Quality acquisitions skillfully integrated

Driving growth the Weir way – the opportunities

Clear strategy to grow returns over the next five years

MineralsOil & GasPower & Industrial


Scot Smith


Minerals

Weir Minerals, Sao Paulo, Brasil


Minerals Division

Overview

� Minerals represents 59% of Weir group revenues� 71% of EBITA

� Specialises in global delivery & support of equipment for slurry handling and processing in mining & mineral applications

� Product applications extend to oil sands & FGD

� 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.

2009 Input by sector %

2009 Input by geography %

70%

9%

9%

9% 3%

MineralsOil & GasPower IndustrialOther

Emerging markets

(1) 2007 & 2008 restated at 2009 average exchange rates(2) Adjusted to exclude intangibles amortisation

22%

12%

17%11%

16%

22% North AmericaEurope & FSUAustraliaAsia PacificMid East & AfricaSouth America

Input OE / Aftermarket %

(%)

0

20

40

60

80

100

2007 2008 2009Aftermarket OE

54 52 42

46 48 58

2008 (1) 2009£m 2007 (1)

Input OE 394 466 298

Input aftermarket 335 431 420

Input Total 729 897 718

Revenue 633 825 813

EBITA 92 130 134

Operating margins (2) 14.5% 15.8% 16.4%


� 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

� 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)

� Diverse market� Extensive geographic reach

� Emerging markets represent 21% of market

� Broad commodity exposure

� Market leading position� Market leader across Weir sectors� Fragmented market; opportunities to expand share

Addressable market by sector

Minerals Division

End markets

Diverse global market with strong aftermarket content

53%

4%8%

3%

32% MiningSand & GravelFGD/PowerOil SandsIndustrial

28%

15%

26%

19%

12%

N. AmericaS. AmericaEurope & MEAustraliaAsia & Africa

Addressable market by Geography

WeirFL SmidthMetsoITTOthers

Estimated market shares

Source: CRU

Source: Weir estimates

Source: CRU


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

� OE sales linked to capital expenditure levels� CAPEX recovery expected in 2011-2012� Visibility between 6 months to a year

� Medium term growth prospects underpinned by:� Growth in oil sands market

� Strong positioning of Weir & current project commitments� Industrialisation of emerging markets

� 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

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

Weir historic correlation –OE sales (actual) vs Minerals capex

Strong long-term fundamentals underpin medium term prospects

Total CAPEX – 2009-2013 ($m)

Source: CRU

Source: CRU

Source: Weir/CRU

2008 2009 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013

-10%

0%

10%

20%

30%

40%

2005 2006 2007 2008 2009

YOY % Change in Global Mine CapEx YOY % Weir Sales

Warman acquisition

Weir grows faster than market

Market downturn

4,600

4,800

5,000

5,200

5,400

5,600

5,800

6,000

6,200

0

10000

20000

30000

40000

50000

60000


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


� 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

Minerals Division

Product overview – Slurry pumps

A WARMAN® centrifugal slurry pump


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


� 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

Minerals Division

Product overview – Mill liners

A VULCO® mill liner with lifter bars &pulp discharge screen


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


� Broad commodity exposure� Copper, alumina, iron & gold account for less than half end-market

exposure� Weir holds a leading market share

� Relatively fragmented market; Weir holds leading market positions� No1 supplier of slurry pumps

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

� 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

Slurry Pumps No 1Cyclones No 2Slurry Valves No 3Mill Liners No 2

Minerals Division

Market position & sales structure

0200400600800

1000

2007 2008 2009Pumps Other Service

Sales by product

(£m)

Market positionMajor customers Product

2009 Sales by commodity

Copper

Alumina

Iron

Gold

Other - i.e. coal,nickel, oil sands, etc.


� 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

Minerals Division

Strategy & development initiatives

Clear strategy to leverage existing market position

Divisional strategy Strategic initiatives

� 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.


Phil Clifton


Power & Industrial

Weir Power & Industrial - Weir Valves & Controls, Suzhou, China


Power & Industrial Division

Overview

� What we do:� Design and production of severe service and critical safety valves� Specialist pumps for municipal and industrial applications� Engineered service solutions

� 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.

2008 (1) 2009£m

(1) 2007 and 2008 restated at 2009 average exchange rates(2) Adjusted to exclude intangibles amortisation

Input OE 108 132 108



Revenue 217 240 242

EBITA 15 20 23


2007 (1)


4%

56%

18%

11%11%

OtherOil & GasPowerIndustrialWater

Emerging markets

41%

33%

18%

8%

North AmericaEurope & FSUAustraliaAsia PacificMid East & AfricaSouth America



(%)

0

20

40

60

80

100


48 46 40

52 54 60


� 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

� Geographic focus of market� Strong product and service markets in North America, France &

UK� New build power growth in China

� 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

� Current c.8% share of specialist nuclear new build valves

Power market by sector - £2.3bn


Valves - End markets

Valve products focused on niche markets

5%

25%

70%

Installed BaseNew BuildLife Extension

14%

28%

35%4%

19%North AmericaEuropeChinaIndiaRest of World

Served market by region - £2.3bn

WeirFlowserveTycoVelanOthers

Nuclear new build market – c.£0.5bn p.a.

Sources: Platts, Mott MacDonald, Weir internal data supported by customer input

Sources: Platts, Mott MacDonald, Weir internal data supported by customer input

Source: Weir internal data supported by customer input


49%

12%

19%

20%

<2021-3031-40>41


Valves - End market fundamentals Global power generation growth by region (Trillion KWh)

Expected new nuclear plants (Weir £m opportunity)

Strong long-term fundamentals

Global power plants by age (Coal, Oil, Nuclear)

� 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

� Life extension programmes & improving reliability driving the aftermarket

� 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

� 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

Source: US Energy Information Administration

Source: Customer inputs supported by Weir internal data

Source: Platts

05

1015202530

2005 2010 2015 2020

Central &South AmericaMiddle East &AfricaAsia

North America

Europe

0

200

400

600

800

2010 2012 2014 2016

SNPTCCNNCArevaWestinghouseKoreaToshiba USGE HitachiRussiaOther


GATE / GLOBE / CHECK / BUTTERFLY

VALVES

OVERPRESSUREPROTECTION

CHECK VALVE

MAIN FEEDWATER ISOLATION VALVECONTROL VALVE SAFETY RELIEF VALVE

MAIN STEAM ISOLATION

VALVE

GATE / GLOBE / CHECK / BUTTERFLY

VALVES

STEAM GENERATOR SAFETY VALVE


Typical Pressurized Water Reactor (PWR)



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


� 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


Valves product overview – Safety valves



Market position & sales structure

050

100150200250300

2007 2008 2009Original Equipment Spares Services

Power & Industrial; Third Party Output (£m)

Major customers

LISCO - LIBYA

Market positionProduct Market

Nuclear Tricentric Nuclear new build

No. 1

Sebim China nuclear

No. 1

Hopkinsons MSIV Nuclear (PWR Design)

No. 2

Atwood & Morrill MSIV

Nuclear (BWR design)

No. 1

� Large power market, small relative niche positions� Growing market position in nuclear, hydro and renewables� Developing emerging markets position, particularly in China &

India

� Technical sales process, driven by application engineering � Via utilities for life extension & service offering� Nuclear approvals through reactor designers � EPC contractors


� 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



Leveraging products across wider end markets & geography


� 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.


Steve Noon


Oil & Gas



Oil & Gas Division

Overview

� Market leading position in pressure pumping and flow control� Niche position in centrifugal pumps for refining and petrochemicals� Respected services positions for repair and upgrades� Resilient business model

� Leading margin performance versus peers

� 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

2008 (1) 2009£m

(1) 2007 and 2008 restated at 2009 average exchange rates(2) Adjusted to exclude intangibles amortisation

Input OE 97 158 126



Revenue 228 323 299

EBITA 44 73 52


2007 (1)



97%

MineralsOil & GasPowerIndustrial

Emerging markets

47%

22%

5%

25%

1%

North AmericaEurope & FSUAustraliaAsia PacificMid East & AfricaSouth America


(%)

0

20

40

60

80

100


48 48 41

52 52 59


� Niche player in large upstream market� 9.1% CAGR expected 2010 – 2013 (1)

� Equipment and aftermarket size est £27bn� ~49% based in North America� ~80% onshore

� Served market (primarily well services) – £1.1bn� ~50% based in North America; 36% emerging markets� ~68% capex; 32% aftermarket

� ~20% market share of served market� Strong position in aftermarket & spares

(1) – Source: Douglas Westwood

Equipment market by sector - £27bn

Oil & Gas Division

Upstream end markets

Niche position – opportunities to expand into adjacent market streams

10%

48%

42%

Drilling &CompletionOil Production &TransportationGas Production &Transportation

Served market - £1.1bn (4% of total)Emerging markets

50%

3%11%

26%

10%N. America

S. America

Europe & FSU

Middle East &AfricaAsia

WeirFMC Fluid ControlGardner DenverAnson (NOV)Others

Estimated market shares

Source: Douglas Westwood

Source: Douglas Westwood

Source: Weir estimates


Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Sales 3-month avg Horizontal rig count

� Growth drivers� North America – Horizontal drilling (shale plays)� Globally – Oil & gas prices and rig counts

� Key geographies� North America� Middle East� Asia Pacific

� 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

� Trend to more unconventional drilling a positive for Weir� Longer term substantial global shale gas potential

NAM drilling trajectory

Global Frac fleet additions (000’HP)

Oil & Gas Division

Upstream end market fundamentals

Strong long-term fundamentals, bias to unconventional developments

Weir Historic correlation

0250500750

10001250150017502000

2006 2007 2008 2009 2010FNorth America Ex-North America

Horiztonal + Directional Percent of Total Rigs

0%

20%

40%

60%

80%

100%

2005 2007 2009 2011 2013 2015

North America International

Source: Spears & Associates

Source: Spears & Associates

Capacity additions by Weir

Customer inventory overhang

Source: Weir


� 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

Oil & Gas Division

Upstream oil & gas production

Simplified upstream oil & gas well lifecycle diagram

Drilling & well construction

Well completion

Cementing pumps and iron, safety restraint systems, pressure control

(BOP) repairs & recertification, inspect & refurbish drill pipe,

premium threading

Frac pumps and flow control iron, safety iron manifold trailers,

safety restraint systems, fluid end repairs, spare partsProduction

Rotating equipment asset management (UK, Caspian), rotating

equipment & valve repair and services

InterventionWell service (acidizing, gravel

packing) pumps and iron, safety restraint systems

Decommissioning


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

� 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 2500 HP quintaplex frac pump

Weir SPM 3500HP frac pump drawing


Oil & Gas Division

Upstream product overview – High pressure flow equipment� 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

� 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

� 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

Weir SPM manifold trailer

Weir SPM field restraint system

Weir SPM flow control products


Oil & Gas Division

Market position & sales structure� 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

� Upstream driven business excluding Gabbioneta� Primarily onshore focus

� Sales channels� Upstream sales channel direct to oilfield service companies� Downstream sales channel primarily to EPC’s� Dedicated services businesses serve end users direct

Frac Pumps US Onshore No 1Flow Control Iron Global No 2API Refinery Pumps EMEA No 4

Sales by category

(£m)

Market position

Sales by end use - 2009

Major customers

Product Market

0

100

200

300

2007 2008 2009Upstream Downstream Services

50%

32%

2%

16%

UpstreamonshoreUpstreamOffshoreDownstream

Other


� Expand share with major service co’s

� Geographic expansion – follow customer abroad

� Engineering upgrade

� R&D / product development –� Increase durability & reliability

� Flexible manufacturing and service ops

� Low cost sourcing

� Complementary acquisitions

� Leveraging whole of Weir portfolio

Oil & Gas Division


Clear strategy to drive significant growth


� Targeted a/c mgt with major service co’s

� 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

� Weir Oil & Gas forum� Leverage Weir portfolio




Finance Director, Jon Stanton

Trading update and acquisition strategy


Trading Update

Expect H1 PBTA of £140m; £20m ahead of previous expectations

Outlook statement

“As a result of stronger thanexpected translation we nowexpect profit beforeintangibles amortisation andtax for the 26 weeks ending 2July 2010 to be around£140m, which is around £20mahead of our previousexpectations. In addition, as aresult of emerging positivetrends in original equipmentinput and continued strongaftermarket input trends wenow expect profit before taxand amortisation and tax forthe second half of the year tobe significantly ahead of theprior year period in constantcurrency terms.”

Minerals +27% (+16%)(2) +30% (+12%)(2)

Oil & Gas +25% +4%

Power & Industrial 0% -16%

Group +25% 16%

Minerals split(2)

Original Equipment +8% 0%Aftermarket +22% +24%

Change in order input (1)

5m 2010 v 5m 2009 Q1 2010 v Q1 2009

(1) 2009 restated at 2010 average exchange rates(2) Excluding C$58m Canadian contract


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%

� CH Warman delivered greater than 12% ROIC in 2009� 2009 EBITDA 6.2x acquisition price� Increased margins through WPS

� Successful history of sourcing bolt-on acquisitions� Multiflo, Mesa, SOS, PCS

� Established and successful integration capability� Recognised in Frost & Sullivan best practice guide book

Date acquired: July 2007Price paid: $658mCum. EBITDA: $167mCum Op. FCF: $174m2009 pre-tax ROIC: >7%

Strong acquisition and integration track record

SPM acquisition overview

CH Warman acquisition overview

Date acquired: March 2008Price paid: £113mCum. EBITDA: £30mCum Op. FCF: £30m2009 pre-tax ROIC: >12%

• Cumulative EBITDA since acquisition to 2009• Cumulative operating free cash flow includes

working capital movements and capital expenditure


Linatex

� Based in KL, Malaysia� Leading natural rubber brand� Provides wear-resistant products to mining

and sand & aggregates industries� International footprint� Established emerging markets base

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

US$m 2007

Business Overview Strategic rationale

� Broadens mill circuit offering� High wear applications; strong aftermarket� Leverages Minerals sales & service

channels� Significant potential in Canadian oil sands� Significant synergistic benefits

Synergies (US$m) 5-10

EV/EBITDA 10.2x 14.4x

EV/EBITDA (inc. mid-point synergies) 7.4x 9.3x


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


Geho pumps at Murrin Murrin nickel project in Western Australia

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

Clear discipline & focus in assessing future acquisitions


CEO, Keith Cochrane


Wrap up



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

� 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

� 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

Mining (1)

New nuclear (3)

Upstream O&G (2)

7%

31%

9%

Medium term market growth rates

Long-term driver of growth

(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

0%

2%

4%

6%

8%

10%

2011 2013 2015 2017 2019World Asia-PacificNorth America Western Europe

Industrial production growth forecast

Source: Global Insight


� Addressable mkt - £2.7bn (of which £1.4bn mining)

� Market leader

� Power gen. valves market - £2.3bn

� Growing share

� Upstream well services market - £1.1bn

� Market leader

Minerals

Power & Industrial

Oil & Gas

Market positioning

Strong niche positions; opportunity to expand into aligned markets

Weir mktTotal mkt

Weir mktTotal mkt

WeirOther x14

WeirOther x9

Mining equipment market £39bn

Valve market £22bn

Upstream equip. & service market

£27bn

Market share of niche

Niche as % of total market

c.28%

c.4%

c.7%

c.10%

Weir mktTotal mkt

WeirOther x25c.20% c.4%


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


Actual 2009PBTA

Organic growth Market sharegain

Marketextension

Acquisitions Target 2014PBTA

Target to double PBTA by 2014

End-market alignment gives Weir high medium-term growth prospects

Mkt growth + operational

leverage

Innovation & geographic expansion

Collaboration & range extension

Using balance sheet capacity

� Based on current end-market forecasts � Assumes constant currency� Size of initiatives are illustrative



Questions & Answers




Appendix

Weir Minerals, Sao Paulo, Brasil


Minerals Division

Business structure

� 19 business

� 18 production sites

� 55 service centres

� 180 distributors� Not on map

� c.5,200 employees

• Products manufactured: Full portfolio

• Markets: Oil Sands, mining, FGD

North America

• Products manufactured: full portfolio

• Markets: mining, oil, pulp & paper, general industry

Latin America

• Products manufactured: Full portfolio (save rubber)

• Markets: Mining, dewatering, pipeline transport, FGD, gen. ind.

Europe

• Products manufactured: full portfolio

• Markets: mining, general industry

Africa• 1003 employees• Products

manufactured: full portfolio

• Markets: mining, dewatering, general industry

Australia



Business structure

� 9 businesses

� 9 production sites

� 13 service centres

� 40 distributors� Not on map


• Equipment serviced: Flow control & rotating equipment

• Markets: Hydro power, intensive industry

Services N. America• Products: Triple

offset butterfly valves, check valves

• Markets: Nuclear & fossil power

Valves N. America• Equip. serviced:

flow control & rotating equipment

• Markets: Nuclear & fossil power, intensive industry

Services Europe• Products: gate,

control & butterfly valves, Nuclear & conventional safety valves

• Markets: Nuclear & fossil power, oil & gas

Valves Europe

• Products: industrial pumps

• Markets: Municipalities, water/waste water

Pumps N. America

• Products: gate and control valves

• Markets: Oil & gas

Valves Middle East & South Africa

• Products: gate, check & safety valves

• Markets: Fossil power, oil & gas

Valves China


Oil & Gas Division

Business structure • Fort Worth, Texas• Products: well

service pumps, flow control heads

• Markets: Drilling and well completion

SPM• Odessa, Texas• Products: Plungers,

frac heads, cement heads, proprietary pump products for BJS

• Markets: NA Drilling and well completion

Mesa• Milan, Italy• Products: API 610

centrifugal pumps (horizontal & vertical pumps)

• Markets: EMEA refining and petrochemical

Gabbioneta

• Edmonton, Canada• Services: centrifugal

pump repair, fluid end repair, field services, large mechanical equipment repairs, APS

• Markets: Well comp. pipeline, oil sands

N. Am Services• Dubai & Baku• Services: BOP repairs

& certification, rotating equipment repair, tubulars & premium threading, APS

• Markets: Drilling, production, power desal

Mid East Services• Abu Dhabi & Saudi

Arabia • Services: BOP repair

& certification, rotating equipment repair, premium threading, APS, O&M contracts

• Markets: Drilling, prod., power desal

Joint Ventures

� 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


Attendees – Group

ALAN MITCHELSONLegal & 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.

JON STANTONFinance 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.

KEITH COCHRANEChief 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.

JOHN HEASLEYGroup 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.

HELEN WALKERGroup 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.

ANDREW NEILSONHead 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.


Attendees – Minerals Division

PHILIP MORRISDivisional 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.

SCOT SMITHDivisional 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

RICARDO GARIBRegional 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 SPENCERRegional 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 ATHEYRegional 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.


Attendees – Power & Industrial Division

DOUGIE MACTAGGARTDivisional 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.

PHIL CLIFTONDivisional 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

ROGER GRIFFINRegional 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 DUBEPresident: 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


Attendees – Oil & Gas Division

BILL CURRIEDivisional 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.

STEVE NOONDivisional 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 TIPTONDivisional 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 NICOLSPM 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

Documents

sell full

weir group

estimated

exclude intangibles

conventional

full portfolio

full portfolio

rotating equipment