Slide 1: Reviewed interim condensed consolidated financial statements for six months ended 31 December 2020
Providing a better life Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 SAFETY AND CARE ❘ HONESTY AND INTEGRITY ❘ CUSTOMER FOCUS ❘ WORKING TOGETHER ❘ PERFORMANCE EXCELLENCE
Slide 2: 2021 Financial Year Interim Results Presentation
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 1 2021 FINANCIAL YEAR INTERIM RESULTS PRESENTATION 23 February 2021 Lefa– Guinea Notes:
Slide 3: Agenda
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 2 AGENDA PERFORMANCE OVERVIEW Sean Flanagan Group Chief Executive Officer INSIGHTS INTO THE AUSTRALIAN BUSINESS UNIT Sean Flanagan Group Chief Executive Officer FINANCIAL PERFORMANCE Adrian Macartn
Slide 4: Overview | Salient Features
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 3 OVERVIEW | SALIENT FEATURES HY 2021 HY 2020 % VARIANCE Commentary Revenue R12.9bn R11.2bn +15% • Driven by improved McConnell Dowell performance Operating • McConnell Dowell, Moolmans, earnings R
Slide 5: Performance Overview | Managing COVID-19 Impact
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 4 PERFORMANCE OVERVIEW | MANAGING COVID-19 IMPACT McCONNELL DOWELL FOOTPRINT MOOLMANS FOOTPRINT “The Group’s diversity across geographies, customers, industry sectors and commodities provides risk
Slide 6: Performance Overview | Managing COVID-19 Impact
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 5 PERFORMANCE OVERVIEW | MANAGING COVID-19 IMPACT AVENG GROUP AUSTRALIA NEW ZEALAND AND PACIFIC ISLANDS COVID-19 TRACKING • Impact well managed • Government continuously monitors and rapidly respon
Slide 7: Performance Overview | Safety, Health & Environment
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 6 PERFORMANCE OVERVIEW | SAFETY, HEALTH & ENVIRONMENT GROUP 12 MONTH ROLLING LTIFR • Group LTIFR1 0,18 – target 0,18 ‒ McConnell Dowell 0,07 0.30 ‒ Moolmans 0,19 0.21 0.19 0.19 0.18 ‒ Non-core asse
Slide 8: Performance Overview | Core Performance
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 7 PERFORMANCE OVERVIEW | CORE PERFORMANCE CORE REVENUE (R’M) CORE OPERATING EARNINGS/(LOSS) – (R’M) CORE OFCF (R’M) McConnell Dowell Moolmans Other eliminations McConnell Dowell Moolmans Other elim
Slide 9: Performance Overview | Performance
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 8 PERFORMANCE OVERVIEW | PERFORMANCE GROUP OPERATING EXPENSES (R’M) GROUP HEADCOUNT HEADLINE EARNINGS/(LOSS) - (R'M) McConnell Dowell Moolmans Other eliminations Non-core 11 544 109 1 200 1 000 458
Slide 10: Insights | Australia the Growth Engine of McConnell Dowell
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 9 INSIGHTS | AUSTRALIA THE GROWTH ENGINE OF McCONNELL DOWELL AUSTRALIA (year to date) 67% OF McCONNELL DOWELL REVENUE 70% OF McCONNELL DOWELL MARGIN 61% OF McCONNELL DOWELL WIH SAFETY & CARE HONEST
Slide 11: Contents
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 10 Contents Australia – the growth engine of McConnell Dowel Western Program Alliance – a successfully realised strategy The Growth Story Project Timeline Technology & Innovation Incubation Capacit
Slide 12: Western Program Alliance | A Successfully Realised Strategy
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 11 WESTERN PROGRAM ALLIANCE | A SUCCESSFULLY REALISED STRATEGY The alliance model brings all project participants together in an integrated team Alliance leader SAFETY & CARE HONESTY & INTEGRITY CU
Slide 13: Western Program Alliance | Story of Successful Delivery
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 12 WESTERN PROGRAM ALLIANCE | STORY OF SUCCESSFUL DELIVERY SAFETY & CARE HONESTY & INTEGRITY CUSTOMER FOCUS WORKING TOGETHER PERFORMANCE EXCELLENCE 12 Notes:
Slide 14: Western Program Alliance | Story of Successful Delivery
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 13 WESTERN PROGRAM ALLIANCE | STORY OF SUCCESSFUL DELIVERY SAFETY & CARE HONESTY & INTEGRITY CUSTOMER FOCUS WORKING TOGETHER PERFORMANCE EXCELLENCE 13 Notes:
Slide 15: Western Program Alliance | Story of Successful Delivery
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 14 WESTERN PROGRAM ALLIANCE | STORY OF SUCCESSFUL DELIVERY 2021 REALITY SAFETY & CARE HONESTY & INTEGRITY CUSTOMER FOCUS WORKING TOGETHER PERFORMANCE EXCELLENCE 14 Notes:
Slide 16: Western Program Alliance | Program Timeline
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 15 WESTERN PROGRAM ALLIANCE | PROGRAM TIMELINE SAFETY & CARE HONESTY & INTEGRITY CUSTOMER FOCUS WORKING TOGETHER PERFORMANCE EXCELLENCE 15 Notes:
Slide 17: Western Program Alliance | Program Timeline
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 16 WESTERN PROGRAM ALLIANCE | PROGRAM TIMELINE SAFETY & CARE HONESTY & INTEGRITY CUSTOMER FOCUS WORKING TOGETHER PERFORMANCE EXCELLENCE 16 Notes:
Slide 18: Western Program Alliance | Program Timeline
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 17 WESTERN PROGRAM ALLIANCE | PROGRAM TIMELINE SAFETY & CARE HONESTY & INTEGRITY CUSTOMER FOCUS WORKING TOGETHER PERFORMANCE EXCELLENCE Notes:
Slide 19: The Alliance Contract Model
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 18 THE ALLIANCE CONTRACT MODEL MCD REVENUE BY CONTRACT TYPE (%) • Collaborative delivery model ‒ Client Alliance 24 42 Construction ‒ Design team 4 Services ‒ Contractor 30 Design and Construct • L
Slide 20: Financial Performance
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 19 FINANCIAL PERFORMANCE Mordialloc Bypass - Australia Notes:
Slide 21: Comprehensive Earnings
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 20 COMPREHENSIVE EARNINGS H1 2021 H1 2020 Results Rm Rm Commentary Revenue 12 896 11 185 Increase driven by a growing McConnell Dowell order books Gross margin % 6,5 6,9 Operating expenses (735) (8
Slide 22: Segmental Results
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 21 SEGMENTAL RESULTS REVENUE NET OPERATING EARNINGS/(LOSS) OPERATING FREE CASH FLOW H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Rm Rm Rm Rm Rm Rm McConnell Dowell 8 368 4 636 153 59 623 110 Moo
Slide 23: Core Revenue and Work in Hand
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 22 CORE REVENUE AND WORK IN HAND McCONNELL DOWELL REVENUE PER REGION MOOLMANS REVENUE (ZAR'000) AND EBIT MARGIN % 2 400 8.0% 8 4.0% Australia 2 200 16 0.0% Southeast Asia 9 -4.0% 2 000 67 New Zeala
Slide 24: Financial Position
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 23 FINANCIAL POSITION Dec’20 Jun’20 Dec’20 Jun’20 Rm Rm Rm Rm Assets 12 002 11 636 Liabilities & equity 12 002 11 636 Liabilities Goodwill and intangible assets 115 115 Borrowings and liabilities 2
Slide 25: Working Capital
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 24 WORKING CAPITAL *CORE ASSETS **NON-CORE ASSETS Dec’20 Jun’20 Dec’20 Jun’20 Rm Rm Rm Rm Inventory 212 187 661 839 Trade and other receivables 308 358 327 459 Amounts due from contract customers 2
Slide 26: Uncertified Revenue and Claims
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 25 UNCERTIFIED REVENUE AND CLAIMS Dec’20 Jun’20 Rm Rm Uncertified claims and variations 879 660 Contract contingencies (380) (290) Contract and retention receivables 2 292 2 169 Provision for contr
Slide 27: Movement in Net Cash
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 26 MOVEMENT IN NET CASH 958 928 579 49 ( 27) ( 17) ( 111) (120) ( 222) ( 307) (552) Net debt Cash from Cash from Working Net finance Taxation Net capital Proceeds Repayment of Foreign * Net Cash 30
Slide 28: Liquidity
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 27 LIQUIDITY Dec’20 Jun’20 SOUTH AFRICA BOND EXPOSURE Rm Rm 4 000 Net Cash (including overdrafts) 2 684 1 331 3 500 South African operations 561 (342) 3 000 McConnell Dowell 2 123 1 673 2 500 2 000
Slide 29: Balance Sheet Restructure & Recapitalisation
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 28 BALANCE SHEET RESTRUCTURE & RECAPITALISATION Last day to lodge Form of Instruction Payment to be made and Form with the Transfer Secretaries in respect of Instruction to be lodged with of Qualif
Slide 30: Balance Sheet Restructure & Recapitalisation: Financial Impact of Transaction
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 29 BALANCE SHEET RESTRUCTURE & RECAPITALISATION FINANCIAL IMPACT OF TRANSACTION SA LENDER DEBT – FLOW OF FUNDS (R’M) On implementation, expected to be completed on or about 396 465 19 March 2021, t
Slide 31: Focus and Outlook
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 30 FOCUS AND OUTLOOK Regency Road to Pym Project – Australia Notes:
Slide 32: Focus and Outlook | Work in Hand
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 31 FOCUS AND OUTLOOK | WORK IN HAND Dec’20 FY Jun’20 Rm Rm McConnell Dowell 23 005 21 794 Moolmans 4 694 4 996 TOTAL 27 699 26 790 WIH BY SECTOR WIH BY GEOGRAPHY Bui ldings, 3% Res t of Africa Tunn
Slide 33: Focus and Outlook | To June 2021
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 32 FOCUS AND OUTLOOK | TO JUNE 2021 • Completion of the Restructure and Recapitalisation Plan • COVID-19 still poses a threat to our business and people ‒ Continue to protect both the livelihood an
Slide 34: Focus and Outlook
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 33 FOCUS AND OUTLOOK The Group continues to build resilience and is buoyed by its key strategic levers of geographic and commodity diversification, improving operational performance and the firm co
Slide 35: Questions Thank You
Reviewed interim condensed consolidated financial statements for the six months ended 31 December 2020 34 QUESTIONS THANK YOU St Marys Bay – New Zealand Notes:
Slide 36: www.aveng.co.za
INAWWVENG www.aveng.Cco.Za