Slide 1: Results Presentation for the year ended 30 June 2023
Providing a better life 22 August 2023 Results Presentation for the year ended 30 June 2023 The Queen Elizabeth Hospital Stage 3 Redevelopment Adelaide, Australia
Slide 2: FY23 Salient features
FY23 Salient features A year of transition as we build for the future Revenue Operating loss (continuing operations) (continuing operations) R28,86bn R1,06bn 2022 | R22,53bn 2022 | R360m earnings Cash on hand Operating earnings* (continuing operations, excl BLNG) R2,38bn R183m 2022 | R2,61bn 2022 |
Slide 3: FY23 Salient features | 2018 strategy delivered
FY23 Salient features | 2018 strategy delivered • Balance sheet further de-risked • Non-core asset disposals completed • Disposal proceeds of R2,4 billion • Extinguished legacy debt of R3,3 billion • Reduced guarantee exposure of R3,8 billion to R82 million • Settled Trident Steel R450 million Trade
Slide 4: FY23 Salient features | Financial
FY23 Salient features | Financial • The business has been simplified and focused • Settled South African CTA, exiting three banks • New facility with SA transactional banker • Raised finance facilities for Moolmans new heavy mining equipment • Term debt facility for McConnell Dowell • Bonding capaci
Slide 5: FY23 Salient features | McConnell Dowell
FY23 Salient features | McConnell Dowell • McConnell Dowell comprises of four business units • Revenue of AUD 2,2 billion (+25%) driven by growth in the Australian business unit • Australia and New Zealand & Pacific Islands business units recorded a combined operating earnings of R939 million (AUD77
Slide 6: FY23 Salient features | Moolmans
FY23 Salient features | Moolmans • New work won of R9,4 billion, including a new five-year contract at Tshipi é Ntle • Work in hand up at R8,0 billion (2022: R3,1 billion) • Committed investment of R900 million in new heavy mining equipment, R613 million spent in FY23 • The Tshipi project returned t
Slide 7: Environmental, Social and Governance
Environmental, Social and Governance We align our values and sustainability goals with our purpose of providing a better life to improve ESG outcomes for our stakeholders Mandatory Environmental E Plans to improve diesel CO₂ Roadmap to carbon Divert waste from Resource saving awareness training cons
Slide 8: Our People
Our People Total of 3 861 people across our operating regions Learning and development 65 emerging leaders 38 individuals 156 apprentices of We trained and licensed completed Operational participated in Senior trained in Moolmans 12 females from Leadership Program in Leadership Program - which 97% r
Slide 9: Finance
Finance Providing a better life Barber Grove to Seaview wastewater treatment plant pipe duplication Wellington, New Zealand
Slide 10: Comprehensive earnings
Comprehensive earnings FY23 without 2 Re-presented¹ impact of BLNG FY 2023 FY 2022 Change Rm Rm Rm Rm Commentary Revenue 28 865 22 527 6 338 28 865 Gross earnings 443 1 778 (1 335) 1 686 BLNG project losses of R1,2 billion Gross margin 1,5% 7,9% (6,4%) 5,8% Operating (loss)/earnings (1 060) 360 (1
Slide 11: Segmental results
Segmental results FY 2023 FY 2022 Change FY 2023 FY 2022 Change McConnell Dowell Rm Rm Rm Moolmans Rm Rm Rm a Revenue¹ 25 950 19 034 6 916 Revenue 2 897 3 349 (452) b Gross margin² 1,5% 7,2% (5,7) Gross margin 3,5% 12,2% (8,7%) Operating (loss) / earnings (815) 385 (1 200) Operating (loss) / earning
Slide 12: Financial position
Financial position Movements in property, plant Movements in PPE&and equipment ROU and leases 1 778 3 085 126 3 457 • Additions – investment in new heavy mining equipment in Moolmans (796) (168) (49) (519) • Transfer out – relates to disposal of Trident Steel Opening Opening Additions Additions Depr
Slide 13: Financial position
Financial position Movements in working capital 1 676 73 (1 387) (689) (97) (466) (890) Opening Opening balance Inventory Inventory Trade Trade and reveivables and other other Contract Contract assets Trade Trade and and otherother payables Contract Contract liabilities Closing Closing balance balan
Slide 14: Movement in net cash
Movement in net cash 2 617 546 296 12 2 381 (207) (214) 1 229 (273) (213) (47) (1 365) Cash balance Cash 30 Jun'22 Cash from Cash from Working capital NetNet Working capital finance finance charges Taxation Taxation Net Net capital capital Proceeds Proceeds onon Net repayment Net repayment Payment o
Slide 15: Batangas LNG Project
Batangas LNG Project Providing a better life
Slide 16: Batangas LNG project
Batangas LNG project McConnell Dowell – Batangas LNG terminal • EPC project closed out with settlement resolving all commercial issues • Significant loss in FY23 of R1 243 million (AUD104 million) with overall project loss incurred of R1 353 million (AUD114 million) • Project executed during the hei
Slide 17: Improving operational standards and governance procedures
Improving operational standards and governance procedures As a consequence of the BLNG project we have improved operational standards and governance procedures, including: • The establishment of a project management office, led by experienced project management professionals, reporting directly to t
Slide 18: Outlook and areas of focus
3 Outlook and areas of focus Providing a better life
Slide 19: Outlook
Outlook • FY24 revenue of R32 billion secured • Group work in hand up at R52,2 billion • Addressable Infrastructure and construction tender pipeline of AUD16 billion filtered to meet core disciplines and capabilities • Visible open cast mining pipeline of R65 billion which will be heavily filtered t
Slide 20: Work in hand
Work in hand Strong work in hand and solid mix of contracts McConnell Dowell | Work in hand – R44,2 billion (AUD3,5 billion) Transport Construction only 5% Australia 4% Building 12% 5% 31% 7% 33% D&C BE Water & waste water 16% 45% 21% 67% New Zealand 1% Ports & coastal Service 35% 18% SEA Energy Rel
Slide 21: FY24 areas of focus
FY24 areas of focus Aveng is a simplified business with two operating subsidiaries and a stronger balance sheet • Return Group to profitability and positive cash generation • Deliver operational performance at current revenue levels • Improve quality and consistency of operational margins • Restore
Slide 22: Thank you
Providing a better life Thank you Questions
Slide 23: Appendices
Appendices Providing a better life
Slide 24: Comprehensive earnings - Finance charges
Comprehensive earnings - Finance charges Re-presented¹ FY 2023 FY 2022 Change Commentary Rm Rm Rm Finance income 77 8 69 Finance expense (200) (152) (48) South African legacy debt (44) (86) 42 Fully settled R478 million South African legacy debt in Q4 FY23 McConnell Dowell (32) - (32) Mainly relati
Slide 25: Comprehensive earnings - Discontinued operations and other comprehensive earnings
Comprehensive earnings - Discontinued operations and other comprehensive earnings Re-presented¹ FY 2023 FY 2022 Change Rm Rm Rm Commentary Discontinued operations Earnings from discontinued operations, net of taxation 120 111 9 Trident Steel operating earnings, partially offset by finance charges E
Slide 26: Contract assets and liabilities
Contract assets and liabilities FY 2023 FY 2022 Change Rm Rm Rm Uncertified revenue and variations 1 955 1 225 730 Contract contingencies (160) (81) (79) Contract and retention receivables 3 509 2 485 1 024 Provision for contract receivables (2) (3) 1 CONTRACT ASSETS 5 302 3 626 1 676 Progress billi
Slide 27: Operating free cashflow
Operating free cashflow FY 2023 FY 2022 Change Rm Rm Rm Commentary McConnell Dowell (573) 676 (1 249) Impacted by losses in Southeast Asia and a net increase in contract assets Moolmans (717) 91 (808) Capex of R1,1 billion on new equipment and component for existing equipment Aveng Construction: Sou
Slide 28: ESG in practice
ESG in practice Taking care of the mental health and Building a workforce All female Constructionarium International women in mining day wellbeing of our workforce to build a bridge • McConnell Dowell sponsored an all-female • Newly elected Moolmans Women in Mining • The Built Environs team at Manuk
Slide 29: ESG in practice
ESG in practice Mobile renewable Maximising the use of recycled Recycled plastic Working with our communities power generation water on construction sites atoms in concrete • Moolmans, invests in community projects • In partnership with Australian OEM, we have • McConnell Dowell’s team on the Ovingh