Slide 1: Interim Results Presentation
Interim Results 20 February 2024 Presentation for the six months ended 31 December 2023
Slide 2: Agenda
OVERVIEW FINANCE 1 SEAN FLANAGAN 2 ADRIAN MACARTNEY AGENDA 3 KEY MESSAGES SCOTT CUMMINS 4 OUTLOOK SCOTT CUMMINS
Slide 3: Overview
Overview Liebherr 9400 face shovel Tshipi é Ntle, Northern Cape, South Africa
Slide 4: Overview | Salient features
Overview | Salient features Resilient return to profitability and positive cash generation in H1 2024 Revenue Operating earnings A$1.5 billion A$15.5 million (R18.6 billion) (R192 million) 31 December 2022 | A$1.1 billion (R12.8 billion)1 31 December 2022 | A$7.8 million (R91 million)1 Headline earn
Slide 5: Overview | Update on FY24 areas of focus
Overview | Update on FY24 areas of focus Progress on FY24 areas of focus Focus area Progress • McConnell Dowell profitable and cash generative Return Group to profitability and positive cash generation • Moolmans profitable and continues to invest in heavy mining equipment • Mitigated the impact of
Slide 6: Overview | McConnell Dowell
Overview | McConnell Dowell Strong focus on improving operational performance and returns • Revenue of A$1.4 billion (42% higher than H1 2023). • New Zealand & Pacific Islands and Built Environs operating at or above planned margins. • Hyper-escalation eroded margins on key projects in Australia. Th
Slide 7: Overview | Moolmans
Overview | Moolmans Fleet renewal strategy positions Moolmans for future profitability • Revenue of A$135.9 million (R1.7 billion) (11% higher than H1 2023). • Operating earnings of A$1.9 million (R25 million) • Continued investment in heavy mining equipment through the fleet renewal programme: • re
Slide 8: Finance
Finance New Bridgewater Bridge. Tasmania, Australia The largest transport infrastructure project in Tasmania’s history.
Slide 9: Finance | Change in Group Reporting Currency
Finance | Change in Group Reporting Currency Aveng has evolved into a business with two operating subsidiaries, McConnell Dowell and Moolmans, with 91% of its revenue sourced from outside South Africa. The predominant transactional currency of Aveng is the Australian Dollar. Australian Dollar financ
Slide 10: Finance | H1 2024 Salient features
Finance | H1 2024 Salient features H1 2024 H2 2023 H1 2023 Pro-forma information Strong revenue and operating earnings growth in a difficult A$m A$m A$m operating environment Group revenue1 1 521 1 309 1 097 • Revenue up A$424 million compared to H1 2023. Growth2 16.2% 19.3% 13.9% • Operating earnin
Slide 11: Finance | Comprehensive earnings
Finance | Comprehensive earnings H1 2024 H1 2023 Change Continuing operations A$m A$m A$m Commentary Revenue 1 520.8 1 096.8 424.0 Driven by higher revenue in McConnell Dowell and Moolmans. Gross earnings 83.9 71.9 12.0 Gross margin 5.5% 6.6% (1.1%) Operating earnings 15.5 7.8 7.7 McConnell Dowell
Slide 12: Finance | Segmental information
Finance | Segmental information H1 2024 H1 2023 McConnell McConnell A$m Dowell Moolmans Other Total Dowell Moolmans Other Total Change Note Revenue 1 384.1 135.9 0.8 1 520.8 973.6 122.1 1.1 1 096.8 424.0 1 Gross margin 5.7% 4.9% 5.5% 6.5% 7.9% 6.6% (1.1%) Operating earnings 24.2 1.9 (10.6) 15.5 15.0
Slide 13: Finance | Financial position
Finance | Financial position Statement of financial position as at 31 Dec 30 Jun A$m 2023 2023 Change Non-current assets 426.1 408.4 17.7 Current assets 714.3 680.3 34.0 Total assets 1 140.4 1 088.7 51.7 Foreign currency translation reserve (960.5) (961.2) 0.7 Retained earnings 661.4 660.6 0.8 Other
Slide 14: Finance | Financial position
Finance | Financial position Movements in PPE and ROU (A$m) Additions • Represents investment in new mining equipment at Moolmans and capitalisation of jack-up barge at McConnell Dowell. Depreciation • Effective annualised depreciation rate of 26% per annum. Opening Impairment Closing Impairment los
Slide 15: Finance | Financial position
Finance | Financial position Movements in working capital (A$m) Balance Inventory Trade & Contract Trade & other Contract Balance 30 June other assets payables liabilities 31 Dec 2023 receivables 2023 • Minimal net movement in inventory or trade & other receivables across the portfolio. • Contract a
Slide 16: Finance | Liquidity
Finance | Liquidity Movement in cash (A$m) Cash balance Cash from Working Net finance Taxation Net capex Net repayment Net payment Net new Foreign Other Cash balance 30 June operations capital change charges of external of capital ABFs exchange 31 December 2023 borrowings portion of impact 2023 leas
Slide 17: Outlook & Key Messages
IWWAVENE 4 Providing a better life
Slide 18: Outlook & Key Messages | Initial messages
Outlook & Key Messages | Initial messages We have come a long way: • Excellent progress in the execution of the Group's strategy. • Disposed of numerous non-core businesses. • Core businesses profitable. On a pathway to target margins. • Settled legacy debt. • Balance sheet de-risked. • Leaner and m
Slide 19: Outlook & Key Messages | Foundations
Outlook & Key Messages | Foundations • Three strong and well-respected operating brands in infrastructure, building, and mining - a value offering that sets us apart. • Differentiation – A valued partner on projects that deliver higher margins and better returns. Three strong operating brands in Ena
Slide 20: Outlook & Key Messages | Key focus areas
Outlook & Key Messages | Key focus areas • As an absolute priority, increase the margin % of the consolidated Aveng Group. • Operational performance – Steady, consistent, continuous improvement in profit, cash generation and safety. • Enhance the role and impact of the project support / governance t
Slide 21: Outlook & Key Messages | New structure
Outlook & Key Messages | New structure • The new Executive Team is in place and ready to go. Located in Australia close to the majority of our business activity. • A strong matrix structure efficiently consolidates and simplifies the South African and Australian corporate layers. A lean and agile st
Slide 22: Outlook & Key Messages | Outlook
Outlook & Key Messages | Outlook Positive outlook for H2 2024 and beyond Infrastructure: Building: Mining: • Signs of softening transport infrastructure • Markets in Australia and New Zealand • Challenging mining environment in South market in Australia balanced by reduced remain strong. Specificall
Slide 23: Thank you & Questions
MENG Providing a better life = a
Slide 24: Appendices
Appendices
Slide 25: Appendices | Comprehensive earnings
Appendices | Comprehensive earnings H1 2024 H1 2023 Change Continuing operations Rm Rm Rm Revenue 18 553 12 793 5 760 Gross earnings 1 025 839 186 Gross margin 5.5% 6.6% (1.1%) Operating earnings 192 91 101 Capital expenses (99) (1) (98) Net finance expense (83) (71) (12) Earnings before taxation 1
Slide 26: Appendices | Statement of financial position
Appendices | Statement of financial position 31 Dec 2023 30 Jun 2023 Change Statement of financial position as at Rm Rm Rm Non-current assets 5 321 5 125 196 Current assets 8 921 8 539 382 TOTAL ASSETS 14 242 13 664 578 Foreign currency translation reserve 1 598 1 605 (7) Accumulated losses (3 295)