Slide 1: Interim Results Presentation
2022 INTERIM RESULTS PRESENTATION For the six months ended 31 December 2021
Slide 2: Agenda
AGENDA PERFORMANCE REVIEW FINANCIAL REVIEW FUTURE GROWTH STRATEGY FINAL COMMENTS
Slide 3: Performance Review
PERFORMANCE REVIEW The Queen Elizabeth Hospital – South Australia, Australia
Slide 4: Performance Review | Salient Features
PERFORMANCE REVIEW | SALIENT FEATURES Despite the ongoing impact from COVID-19, the Group continued to * Earnings from operations comprise: be profitable, cash generative with good growth opportunities HY 2022 HY 2021 Pro-forma Pro-forma Core revenue Operating earnings Rm Rm (McConnell Dowell and Mo
Slide 5: Earnings | IFRS 5 Impact of Trident Steel on Group Results
EARNINGS| IFRS 5 IMPACT OF TRIDENT STEEL ON GROUP RESULTS HY 2022 HY 2021 Change Rm Rm Rm Commentary Earnings for the period 53 438 (385) Trident Steel business was transferred out of Held for Sale IFRS 5 adjustments: at 31 December 2021 Fair value adjustment on disposal - (415) 415 No additional fa
Slide 6: Reconciliation | Earnings and Normalised Earnings
RECONCILIATION | EARNINGS AND NORMALISED EARNINGS H1 2022 H1 2021 FY 2021 Rm Rm Rm Earnings for the period 53 438 988 Exclude non-recurring items* Impairment loss on goodwill, intangible and PPE - 54 241 (Reversal of) / impairment loss on long-term receivables (13) 45 26 Loss/ (gain) on disposal of
Slide 7: Reconciliation | Headline Earnings and Normalised Headline Earnings
RECONCILIATION | HEADLINE EARNINGS AND NORMALISED HEADLINE EARNINGS H1 2022 H1 2021 Rm Rm Headline earnings 17 109 Exclude non-recurring items Accumulated depreciation and amortisation previously not expensed under IFRS 5 – released on reclassification to continuing operations* 155 - Normalised head
Slide 8: Performance Review | McConnell Dowell
PERFORMANCE REVIEW | MCCONNELL DOWELL HY 2022 HY 2021 Change AUDm AUDm AUDm McConnell Dowell delivering on growth as forecast • 18% revenue and profit growth in FY21 H1 over comparative period Revenue 842 712 130 • Strong liquidity position with AUD221 million in the bank and minimal debt Gross prof
Slide 9: Performance Review | McConnell Dowell Tender Pipeline
PERFORMANCE REVIEW | McCONNELL DOWELL TENDER PIPELINE Work Submitted Preferred status Current tenders Total in hand tenders AUD2,2 billion AUD2,1 billion AUD1,2 billion AUD3,2 billion AUD8,7 billion Work in hand up 15% AUD468 million projects Awaiting award In preparation A clear pathway to with ove
Slide 10: Performance Review | Moolmans
PERFORMANCE REVIEW | MOOLMANS HY 2022 HY 2021 Change Rm Rm Rm Moolmans investing in heavy mining equipment • Revenue 10% down following completion of the Nkomati project Revenue 1 919 2 131 (212) • Improved GP margins as a result of renegotiated underperforming Gross profit margin (%) 10,6 9,9 0,7 c
Slide 11: Performance Review | Moolmans Tender Pipeline
PERFORMANCE REVIEW | MOOLMANS TENDER PIPELINE Work Submitted Shortlisted Bidder Status 30 Month Tender Pipeline Total in hand tenders R4,5 billion R14,7 billion R 4,0 billion R70,0 billion R 93,2 billion Work in hand is actively Comprises a platinum Awaiting award 13 tender opportunities A clear pat
Slide 12: Performance Review | Trident Steel
PERFORMANCE REVIEW | TRIDENT STEEL HY 2022 HY 2021 Change Rm Rm Rm Despite a challenging business environment, Trident Steel continued to outperform budget Revenue 1 412 1 384 28 • Revenue increased despite civil unrest in KZN, steel industry strike and a global shortage of semi-conductors in the cu
Slide 13: Performance Review | Health and Safety
PERFORMANCE REVIEW | HEALTH AND SAFETY Group 12 month ROLLING LTIFR Managing Lost Time Injury Total Recordable COVID-19 Frequency Rate Injury Frequency (LTIFR) Rate (TRIFR) 0,30 0,21 0,19 0,19 0,11 Our people McConnell Dowell – 0,07 McConnell Dowell – 0,60 • Training and education (target 0,09) (tar
Slide 14: Financial Review
FINANCIAL REVIEW New Bridgewater Bridge – Tasmania, Australia
Slide 15: Comprehensive Earnings
COMPREHENSIVE EARNINGS HY 2022 HY 2021 Change Rm Rm Rm Commentary Revenue 12 958 12 896 62 Cost of Sales (11 979) (12 063) 84 Gross earnings 979 833 146 Margin increase to 7,6% from 6,5% Other earnings 38 183 (145) Operating expenses (800) (735) (65) Increased in line with the growth in the busines
Slide 16: Financial Position
FINANCIAL POSITION Dec 2021 Jun 2021 Change Rm Rm Rm Commentary Assets 12 459 12 445 14 Predominantly Trident Steel ROU PPE transferred from Assets Property, plant and equipment 3 324 2 800 524 Held for Sale Imvelo, Firefly and Oakleaf Investments transferred to Held for Investments 147 287 (140) Sa
Slide 17: Financial Position
FINANCIAL POSITION Dec 2021 Jun 2021 Change Rm Rm Rm Commentary Liabilities and equity 12 459 12 445 14 Liabilities Continued repayment of term debt and settlement of AUD External borrowings and liabilities 814 879 (65) R debt facilities Predominantly Trident Steel lease liabilities transferred from
Slide 18: Working Capital (Including Discontinued Operations)
WORKING CAPITAL (INCLUDING DISCONTINUED OPERATIONS) Dec 2021 Jun 2021 Change Rm Rm Rm Inventory 1 167 937 230 Trade and other receivables 591 802 (211) Amounts due from contract customers 3 043 3 403 (360) Trade and other payables (4 417) (4 274) (143) Amounts due to contract customers (1 365) (1 66
Slide 19: Uncertified Revenue and Claims
UNCERTIFIED REVENUE AND CLAIMS Dec 2021 Jun 2021 Change Rm Rm Rm Uncertified claims and variations 980 817 163 Contract contingencies (75) (50) (25) Contract and retention receivables 2 141 2 632 (491) Provision for contract receivables (3) (1) (2) Amounts due from customers 3 043 3 398 (355) Progre
Slide 20: Movement in Cash
MOVEMENT IN CASH Cash balance 30 Jun 2021 2 519 Cash from operations - core 520 Cash from operations - non core 16 Working capital change 269 Net finance charges (133) Taxation (10) Net capital expenditure (314) Proceeds on disposal of non-core assets 99 Dividends received 2 Movements in Held for Sa
Slide 21: Operating Free Cashflow and Liquidity
OPERATING FREE CASHFLOW AND LIQUIDITY HY 2022 HY 2021 Change Dec 2021 June 2021 Change Operating free cashflow Rm Rm Rm Liquidity Rm Rm Rm McConnell Dowell 667 623 44 Net Cash (including overdrafts) 3 044 2 519 525 Moolmans 104 422 (318) South African operations 473 666 (193) Other eliminations (46)
Slide 22: Future Growth Strategy
FUTURE GROWTH STRATEGY Old Mangere Bridge – Auckland, New Zealand
Slide 23: Future Growth Strategy
FUTURE GROWTH STRATEGY 2017 The perfect storm 2018 Restructuring Future • An international infrastructure, resources and contract mining group operating in 2019 Execution ESG selected markets of strategic framework plan • The core business to be represented by People and systems McConnell Dowell and
Slide 24: Future Growth Strategy | Levers for Growth
FUTURE GROWTH STRATEGY | LEVERS FOR GROWTH Moolmans plant Balance sheet McConnell Dowell’s optimisation and fleet People ESG optimisation specialist capabilities renewal program and systems framework • Conclude the sale of Trident • Leverage specialist capabilities • A dedicated task team • Invest i
Slide 25: Future Growth Strategy | Balance Sheet Optimisation
FUTURE GROWTH STRATEGY | BALANCE SHEET OPTIMISATION Reasons for International listing McConnell Dowell Moolmans Trident Steel Revenue EBIT 13% 12% 15% 22% 24% 17% 12% 36% 34% 27% 85% 70% 76% 64% 44% 49% FY 2021 FC 2022 FC 2022 FY 2021 FC 2022 FC 2022 (excl. Trident) (excl. Trident) Aveng is an inter
Slide 26: Future Growth Strategy | People and Systems
FUTURE GROWTH STRATEGY | PEOPLE AND SYSTEMS Digitalisation Define, Design, Simulate, • Digitalisation is about transitioning our business to make more extensive use of Visualise and Validate technologies and related processes and techniques that enable improved efficiencies, repeatability, transpare
Slide 27: Future Growth Strategy | Application of ESG
FUTURE GROWTH STRATEGY | APPLICATION OF ESG Aveng reviewed its position as a responsible corporate citizen in 2021 and re-emphasised its commitment to ethical and responsible business practices • We recognised the necessity of reviewing and formalising our ESG management process to - Integrate all
Slide 28: Future Growth Strategy | ESG Framework
FUTURE GROWTH STRATEGY | ESG FRAMEWORK Our Environmental, Social and Governance framework guides our organisational decision making and focus, aligned with our Purpose and Values Environment Social Governance Carbon & Our Environment Our Community & Our People Conduct & Compliance Safety & care Carb
Slide 29: Future Growth Strategy | ESG in Practice
FUTURE GROWTH STRATEGY | ESG IN PRACTICE Western Program Alliance Mordialloc Freeway (MRPV) Regency to Pym Puhinui Interchange Victoria, Australia Victoria, Australia Adelaide, South Australia Auckland, New Zealand • Successful collaboration with LXRP’s • 97% of construction waste diverted • First
Slide 30: Final Comments
FINAL COMMENTS Sishen – South Africa
Slide 31: Final Comments: Moving from Recovery to Growth
FINAL COMMENTS Moving from recovery to growth • Aveng Group - Profitable, cash-generative with good growth opportunities - Scheduled debt repayments to reduce group debt by circa R320 million in H2 - Focus on international listing to facilitate growth - Continued focus on cash-generation and reducti
Slide 32: Thank You Questions
Providing a better life THANK YOU QUESTIONS
Slide 33: Appendix - Reconciliation | Earnings and Headline Earnings
APPENDIX - RECONCILIATION | EARNINGS AND HEADLINE EARNINGS Reconciliation of issued shares ‘million Commentary Shares in issue on 31 December 2020 19 394 Increase in issued capital due to two corporate actions namely fully Shares in issue - 30 June 2021 64 742 underwritten rights offer and a follow-
Slide 34: Appendix | Segmental Results
APPENDIX | SEGMENTAL RESULTS REVENUE OPERATING EARNINGS/(LOSS) EBITDA HY 2022 HY 2021 Change HY 2022 HY 2021 Change HY 2022 HY 2021 Change Rm Rm Rm Rm Rm Rm Rm Rm Rm McConnell Dowell 9 272 8 368 904 144 153 (9) 277 268 9 Moolmans 1 919 2 131 (212) 99 132 (33) 354 447 (93) Other eliminations (3) 11 (