Slide 1: Full Year Results Presentation 2021
2021 FULL YEAR RESULTS PRESENTATION 31 August 2021
Slide 2: Agenda
To be updated PERFORMANCE OVERVIEW AGENDA Sean Flanagan Group Chief Executive Officer FINANCIAL PERFORMANCE Adrian Macartney Group Finance Director OPERATIONAL PERFORMANCE Sean Flanagan Group Chief Executive Officer FOCUS AND RECAP Sean Flanagan Group Chief Executive Officer 2
Slide 3: Performance Overview
Fast Facts Wynyard Edge Alliance New Zealand Customer: Wynyard Edge Alliance Extension to existing Wharf Construction of 3 breakwaters to allow for launching of yachts Over 60,000 cubic meters of material dredged The 36th America’s Cup was held here in 2021 PERFORMANCE OVERVIEW 28 2021 FULL YEAR RES
Slide 4: Overview | Safety
OVERVIEW | SAFETY • One confirmed fatality and ongoing operations continuing to GROUP 12 MONTH ROLLING LTIFR reach a presumed second fatality at Gamsberg 0,30 Group LTIFR1 of 0,14 against a target of 0,18 0,21 0,19 0,19 McConnell Dowell 0,06 0,14 Moolmans 0,14 Manufacturing 0,57 Steel 0,25 2017 2018
Slide 5: Overview | COVID-19
OVERVIEW | COVID-19 Operational • Continually varying lockdown regulations in different geographies AVENG GROUP | COVID-19 TRACKING 26 August 2021 • Southeast Asia and New Zealand are currently the most affected • Travel restrictions impact senior management interaction Total number of Total number
Slide 6: Overview | Salient Features
OVERVIEW | SALIENT FEATURES FY 2021 FY 2020 % VARIANCE COMMENTARY • Increase in revenue driven by growth Revenue R25,7bn R20,9bn +23% in Australia • Good operational performance in Operating earnings/(loss) R536m (R532m) >100% McConnell Dowell, Moolmans and Trident Steel Headline • First full year h
Slide 7: Overview | Delivering on 2021 Focus Areas
OVERVIEW | DELIVERING ON 2021 FOCUS AREAS Raised R492m in capital from the rights offer 01 Implementation of the restructure and recapitalisation plan Reduced debt by R1,1 billion McConnell Dowell operating earnings of AUD28 million (June 2020: AUD6 million*) Continued improvement of operational per
Slide 8: Financial Performance
Fast Facts Puhunui Rail Interchange Station New Zealand Customer: Auckland Transport McConnell Dowell and Built Environs Joint Venture Demolition of existing Puhinui Station footbridge Construction of high-quality fit out at-grade bus area Rail Safety innovation – New Zealand first FINANCIAL PERFORM
Slide 9: Balance Sheet De-risking | Restructure and Recapitalisation
BALANCE SHEET DE-RISKING | RESTRUCTURE AND RECAPITALISATION What we achieved • Reduction in debt by R1,1 billion • Improvement in stated capital by R873 million • Gain from early debt settlement of R486 million • Additional liquidity of R260 million Stated Retained Capital Earnings Borrowings Rm Rm
Slide 10: Balance Sheet De-risking | Guarantees
BALANCE SHEET DE-RISKING | GUARANTEES Guarantee reduction – SA Operations South African total debt and guarantee exposure • Bank guarantees reduced from R1,7 billion to R383 million, • The SA debt and guarantee exposure has reduced from R6 billion in 2017 to R1,4 billion in 2021 • Insurance guarante
Slide 11: Liquidity
LIQUIDITY FY 2021 FY 2020 CHANGE IN GROUP NET CASH POSITION Rm Rm Cash and cash equivalents Borrowings (including overdrafts) Net Cash Net Cash (including overdrafts) 2 519 1 331 3 200 South African operations 666 (342) 2 800 McConnell Dowell 1 853 1 673 2 400 2 000 1 600 Borrowings (879) (1 883) 1
Slide 12: Comprehensive Earnings
COMPREHENSIVE EARNINGS FY 2021 FY 2020 Results Rm Rm COMMENTARY Revenue 25 709 20 878 • Driven by 64% (in Rand terms) growth in McConnell Dowell Gross margin 1 965 971 Gross margin % 7,6 4,7 • Improved project execution Net operating earnings / (loss) 536 (532) • Cost containment despite increased r
Slide 13: Segmental Results
SEGMENTAL RESULTS REVENUE NET OPERATING EARNINGS/(LOSS) OPERATING FREE CASH FLOW FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 Rm Rm Rm Rm Rm Rm McConnell Dowell 16 911 10 297 312 (162)* 711 506 Moolmans 4 009 3 955 239 38 480 191 Other eliminations - (67) (122) (193) (161) (245) Total core 20 920
Slide 14: Segmental Results
SEGMENTAL RESULTS McCONNELL DOWELL MOOLMANS TRIDENT STEEL FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 Rm Rm Rm Rm m Rm Revenue 16 911 10 297 4 009 3 955 3 163 3 531 Cost of sales (15 726) (9 704) (3 602) (3 741) (2 858) (3 380) Gross margin % 7,0% 5,8% 10,2% 5,4% 9,6% 4,3% Net operating earnings
Slide 15: Financial Position
FINANCIAL POSITION June 2021 June 2020 June 2021 June 2020 Rm Rm Rm Rm Assets 12 445 11 636 Liabilities and equity 12 445 11 636 Property, plant and equipment 2 800 3 180 Liabilities Borrowings and liabilities 1 398 2 380 Investments 287 294 Working capital 5 098 4 054 Working capital 3 936 3 076 Li
Slide 16: Working Capital
WORKING CAPITAL *CORE ASSETS **NON-CORE ASSETS June 2021 June 2020 June 2021 June 2020 Rm Rm Rm Rm Inventory 211 187 726 839 Trade and other receivables 327 358 475 459 Amounts due from contract customers 3 398 2 531 5 8 Trade and other payables (3 441) (2 764) (833) (461) Amounts due to contract cu
Slide 17: Uncertified Revenue and Claims
UNCERTIFIED REVENUE AND CLAIMS June 2021 June 2020 Rm Rm Uncertified claims and variations 817 652 Contract contingencies (50) (290) Contract and retention receivables 2 632 2 170 Provision for contract receivables (1) (1) Amounts due from customers 3 398 2 531 Progress billings received (1 656) (1
Slide 18: Movement in Cash
MOVEMENT IN CASH 2 519 1 331 1 351 628 865 266 243 120 (37) (100) (326) (335) (599) (888) Cash balance Cash from Cash from Working Net Taxation Net capital New Proceeds Proceeds Payment of Repayment of Foreign Cash balance 30 Jun ‘20 operations operations capital finance paid expenditure lease dispo
Slide 19: Corporate Action | Share Consolidation
CORPORATE ACTION* | SHARE CONSOLIDATION Why is the corporate action necessary Timing • Reduce the number of shares in issue in order to reduce the administrative • A detailed announcement will be made in due course burden; with the salient dates and times • Recalibrate supply & demand, improve liqui
Slide 20: Operational Performance
Fast Facts Kidston Pumped Hydro Storage - Queensland A world-first, project to convert disused gold mine into a pumped storage hydroelectric power generation facility. The pumped storage hydro power station will use the pits of the old mine. A natural battery storage facility that has the potential
Slide 21: Financial Performance | Key Performance Indicators
FINANCIAL PERFORMANCE | KEY PERFORMANCE INDICATORS We delivered above budget for revenue, profit and cashflow • Revenue grew by over 50% in AUD on the back of a strong WIH in FY20 June 2021 June 2020 AUDm AUDm • Operating earnings of AUD28 million and EBITDA of AUD54 million due to good operational
Slide 22: Market Summary | Business Unit Overview
MARKET SUMMARY | BUSINESS UNIT OVERVIEW AUSTRALIA NEW ZEALAND & PACIFIC SOUTHEAST ASIA BUILT ENVIRONS Growth engine of the Group Uncertain timing COVID-19 challenges in a Significant opportunities competitive market Market conditions Market conditions Market conditions Market conditions • Australian
Slide 23: Market Summary | Technical Discipline Overview
MARKET SUMMARY | TECHNICAL DISCIPLINE OVERVIEW MARINE PIPELINES TUNNELING & UNDERGROUND DAMS & HYDRO • Significant pipeline of key • Limited opportunities outside • Significant major tunnelling • Most opportunities in Australia opportunities in Australia Australia for FY22 opportunities exist in Aus
Slide 24: Pipeline Update | Significant Opportunities Ahead
PIPELINE UPDATE | SIGNIFICANT OPPORTUNITIES AHEAD • Preferred status ‒ Recent projects converted into new work won: AUD1,9bn o Kidston Pumped Hydro Storage Work in hand o AIE Port Kembla – AUD900 million converted to new work won during the period ‒ Expect AUD700million of the AUD1,7 billion preferr
Slide 25: Active Project Portfolio and Composition
ACTIVE PROJECT PORTFOLIO & COMPOSITION Portfolio Commentary REVENUE BY BU TYPE DISCIPLINE • Australia continues to be our growth lever in the current market across our regions YTD REVENUE SEA Tunnel Rail 12% 11% Const. 5% • Diversity and technical capability continues to NZ Alliance only 14% 37% 32%
Slide 26: Awards and Recognition
AWARDS AND RECOGNITION We continue to win awards for engineering excellence and safety performance and individual staff members have also been recognised for their contribution to the industry. Recent notable awards include: • Oval Hotel Project - South Australia AIB Professional Excellence Award fo
Slide 27: Operational Performance
OPERATIONAL PERFORMANCE Kolomela – South Africa
Slide 28: Financial Performance | Key Performance Indicators
FINANCIAL PERFORMANCE| KEY PERFORMANCE INDICATORS Moolmans delivered above budget profit & cashflow • Net operating earnings of R239 million June 2021 June 2020 • EBITDA of R854 million ZAR m ZAR m • Revenue remained in line with prior year as the business focused on Revenue 4 009 3 955 quality of w
Slide 29: Financial Performance | Return to Profit
FINANCIAL PERFORMANCE | RETURN TO PROFIT • The turnaround strategy implemented subsequent to FY19 has Revenue and EBIT (ZARm) steadily gained traction 4 500 450 • FY2021 saw good performance from open pit operations at 4 000 350 Sishen, Klipspruit, Gamsberg, Lefa and Nkomati as well as 3 500 250 und
Slide 30: Market Summary | Opportunities for Growth
MARKET SUMMARY | OPPORTUNITIES FOR GROWTH • Moolmans is working from a foundation of a solid return to profitability • The positive commodity price outlook for the medium to longer term will benefit the mining industry in general • Global mining financing hit an eight-year high in 2020 * • Funds rai
Slide 31: A New Era of Metals | Decarbonisation
A NEW ERA OF METALS | DECARBONISATION • For the mining industry, the push towards decarbonization and the resulting rise of green energy and electric vehicles holds significant implications • Moolmans is following these developments closely, looking for mining opportunities in these commodities and
Slide 32: Operational Performance
T A aa | gy a a IAVENG a an pe — be Providing a better life AVENG DATRIDENT STEEL
Slide 33: Financial Performance | Key Performance Indicators
FINANCIAL PERFORMANCE| KEY PERFORMANCE INDICATORS Profitable and cash generative • Restructured from a steel merchant to mainly an automotive steel service centre June 2021 June 2020 ‒ Refocused revenue ZAR m ZAR m ‒ Significant once-off cashflow benefit • Higher sales volume due to significant incr
Slide 34: Focus and Recap
FOCUS AND RECAP City Rail Link – New Zealand
Slide 35: Focus and Recap | Year Ahead
FOCUS AND RECAP | YEAR AHEAD • Continuing to improve operational performance • Growing work in hand • Resourcing for growth • Completing the disposal of non-core assets • Reducing debt • Strengthening of the balance sheet • Managing liquidity • Share consolidation • Renewing the Group’s Environment,
Slide 36: Focus and Recap
FOCUS AND RECAP • Improved operational performance Revenue Growth Growth in Operating ‒ Moolmans profitable and cash generative Earnings ‒ McConnell Dowell delivered above budget revenue, profit and cashflow 23% R1bn ‒ Trident Steel delivered solid profits and cashflows • Strengthened and de-risked
Slide 37: Thank You | Questions
IN WVENG Providing a better life THANK YOU |