Slide 1: Summarised audited consolidated annual financial statements for the year ended 30 June 2019
Summarised audited consolidated annual financial statements for the year ended 30 June 2019 Providing a better life
Slide 2: 2019 Full-Year Results Presentation
Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 2019 FULL-YEAR RESULTS PRESENTATION 29 August 2019 Marina Bay Sands - Singapore Notes:
Slide 3: Agenda
Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 AGENDA 01 OVERVIEW & STRATEGIC REVIEW Eric Diack Executive Chairman 02 FINANCIAL ANALYSIS Adrian Macartney Group Finance Director 03 OPERATIONAL REVIEW Sean Flanagan Group Chief Executive Officer 04 OUT
Slide 4: Strategic Journey
2 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 STRATEGIC JOURNEY CONSISTENT SUSTAINABLE THE PERFECT STORM STABILITY PERFORMANCE PROFITABILITY • Complexity of multiple business units 01 Capital restructure • Optimised capital structure • Core opera
Slide 5: Responsible Disposal Process
3 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 RESPONSIBLE DISPOSAL PROCESS Good progress Creates Largely sold as 100% empowered VRP despite challenging liquidity going concerns buyers and a obligation M&A environment for Aveng and jobs management
Slide 6: Execution of Strategic Plan | Status
4 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 EXECUTION OF STRATEGIC PLAN | Status Rights offer • R493m of new capital raised in rights offer Capital markets 01 transaction • Early redemption of R2bn convertible bond Early bond • R1,4bn new share
Slide 7: Execution of Strategic Plan | Disposal update
5 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 EXECUTION OF STRATEGIC PLAN | Disposal update NON-CORE DISPOSAL PROCEEDS IN LINE WITH EXPECTATIONS Deals completed Deals announced Deals in negotiation Achievements Achievements Achievements • Despite
Slide 8: Financial Analysis
6 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 Kolomela – South Africa FINANCIAL ANALYSIS Notes:
Slide 9: Salient Features
7 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 SALIENT FEATURES Revenue Net operating loss Good strategic R25,7 billion R1,1 billion progress • Non-core operations contributed significantly to loss • McConnell Dowell profitable • Moolmans underper
Slide 10: Salient Features
8 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 SALIENT FEATURES Majority of Diversified core Continued non-core asset order book – support from sales achieved 68% stakeholders at acceptable International; value 32% South Africa AUDITED GROUP RESUL
Slide 11: Financial Performance
9 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 FINANCIAL PERFORMANCE FY 2019 FY 2018 Results Rm Rm Revenue 25 676 30 580 Gross margin % 4,1 5,9 Operating expenses (2,247) (2 292) Net operating (loss) (1,119) (401) Net interest (406) (439) Impairme
Slide 12: Segmental Results
10 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 SEGMENTAL RESULTS REVENUE NET OPERATING (LOSS) / EARNINGS OPERATING FREE CASH FLOW FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Rm Rm Rm Rm Rm Rm McConnell Dowell 9 527 11 716 110 103 (362) 202 Mo
Slide 13: Financial Position
11 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 FINANCIAL POSITION Jun’19 Jun’18 Jun’19 Jun’18 Rm Rm Rm Rm Assets 12 282 15 070 Liabilities & equity 12 282 15 070 Liabilities Goodwill and intangible assets 139 147 Borrowings and liabilities 2 145
Slide 14: Working Capital
12 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 WORKING CAPITAL Core Assets Non-core Assets Jun’19 Jun’18 Jun’19 Jun’18 Rm Rm Rm Rm Inventory 214 255 1 658 1 790 Trade and other receivables 194 180 1 277 1 400 Amounts due from contract customers 2
Slide 15: Uncertified Revenue and Claims
13 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 UNCERTIFIED REVENUE AND CLAIMS Jun’19 * Jun’18 FY2019 Rm * Rm Rm C&E C&E Manufacturing Other & SA and Australia Mining & Processing eliminations TOTAL Uncertified claims and variations** 1 316 1 646
Slide 16: Movement in Net Debt
14 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MOVEMENT IN NET DEBT 1 263 510 493 29 (90) (260) (320) (332) (540) (622) (1 211) Net debt Cash from Working Net finance Taxation Net capital Proceeds on Rights issue Bond Other & Net debt 30 Jun ‘18
Slide 17: Liquidity
15 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 LIQUIDITY Jun’19 Jun’18 Rm Rm Net Cash 1 605 2 076 South African operations 581 633 McConnell Dowell 1 024 1 443 Borrowings 2 145 3 287 Convertible bond - 1 929 South African operations 1 967 1 154 M
Slide 18: Operational Review
16 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 OPERATIONAL REVIEW WPA – Melbourne, Australia Notes:
Slide 19: Safety, Health & Environment
17 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 SAFETY, HEALTH & ENVIRONMENT • Two fatalities 3 year TRIFR trend (per 200 000 hours) • Mr Daniel Mathule fatally injured at N1 Ventersburg road project • Mr Ousseni Sore fatally injured at Tarpako si
Slide 20: Fast Facts
18 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 SPJ Onshore - Malaysia FAST FACTS • Customer: Petronas • EPCC • Joint Venture with SYS • 1300m trestle • Onshore Civil Works with a container stacking yard, truck and trailer parks • 30 month constru
Slide 21: Market Conditions
19 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MARKET CONDITIONS 01 02 03 04 New Zealand Australia South East Asia Built Environs and Pacific Islands • Strength across key MCD • Construction market • Rapid population Australia & New focus sectors
Slide 22: McConnell Dowell | Specialist capabilities
20 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MCCONNELL DOWELL │ Specialist capabilities South East Asia Rail Civils Marine Pacific Islands Pipelines Tunnel & Underground Mechanical Australia New Zealand Building AUDITED GROUP RESULTS FOR THE YE
Slide 23: McConnell Dowell | Strategy
21 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MCCONNELL DOWELL | Strategy RESET DELIVER GROW EXTENDED GROWTH • Fundamentally • Stabilise • Strong performance across • Recognised and respected leader in all restructured operations current footpri
Slide 24: McConnell Dowell | Overview
22 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MCCONNELL DOWELL │ Overview • Profitable with improved margin • Revenue levels impacted by lower order book • New Zealand and Pacific Islands returned to profitability • Underperformance in Southeast
Slide 25: McConnell Dowell | Outlook
23 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MCCONNELL DOWELL │ Outlook • All core market sectors offer growth opportunities • 77% of FY20 order book secured • Acceleration in tender activity • Improved risk and opportunity management • Pursuin
Slide 26: McConnell Dowell | Order book
24 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MCCONNELL DOWELL │ Order book FY2019 REVENUE BY GEOGRAPHY TWO-YEAR ORDER BOOK FY2019 FY2018 % AUDm AUDm change Australia 2% Australia 387 310 25 22% Southeast Asia 54% New Zealand 323 150 115 New Zea
Slide 27: Fast Facts
25 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 FAST FACTS • Customer: Gamsberg Zinc Mine – Northern Cape • 51m BCMs of waste and ore mined at North Pit (44-month contract) • Scope of work increased to include crusher fee and ore handling • 9.1m B
Slide 28: Market Conditions | Commodities
26 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MARKET CONDITIONS │ Commodities 01 02 03 04 Metal Price increases Metal prices expected African ore production Emerging market exporters from 2019 to continue recovery increasing since 2014 showing p
Slide 29: Moolmans | Capabilities
27 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 Moolmans │ Capabilities FOOTPRINT CAPABILITY MARKET SECTORS Excavators / Face Shovels Mass range : 170 – 700 tonnes Dump Trucks Mali Mass range : 100 – 200 tonnes Open Cut Mining Burkina Faso Guinea
Slide 30: Moolmans | Strategy
28 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MOOLMANS │ Strategy RESET DELIVER GROW EXTENDED GROWTH • Return to profitability • Achieve consistent • Deliver strong • Sustainable international • Improve business financial and performance across
Slide 31: Moolmans | Overview
29 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 MOOLMANS │ Overview • Unacceptable financial performance • Karowe and Khutala close-out costs • Gamsberg underperformance • Group-led intervention plan • Gamsberg contract renegotiated • Jerome Goven
Slide 32: Outlook and Prospects
30 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 OUTLOOK AND PROSPECTS TWO-YEAR ORDER BOOK • Return to profitability • Increased contract scopes and rates Platinum 6% Gold 4% Zinc 21% • 50% order book growth from Dec 18 Manganese 23% • 82% of FY20
Slide 33: Fast Facts
31 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 West Franklin- Adelaide, Australia FAST FACTS • Customer: Greaton • Two tower development – south tower 17 storeys, north tower 19 storeys • 276 Apartments • Retail tenancies and leisure facilities d
Slide 34: Outlook
32 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 OUTLOOK Tuas Bridges - Singapore Notes:
Slide 35: Two-Year Order Book | Core
33 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 TWO-YEAR ORDER BOOK │ Core TWO-YEAR ORDER BOOK BY GEOGRAPHY TWO-YEAR ORDER BOOK FY 2019 FY 2018 Australasia Southeast Rm Rm 49% Asia 17% McConnell Dowell 11 686 7 704 Moolmans 5 980 5 273 South TOTAL
Slide 36: Long-Term Strategy Goals
34 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 LONG-TERM STRATEGY GOALS • Sustainable capital structure with lower debt 01 CAPITAL RESTRUCTURE • Disposal proceeds • Cash generative core businesses 02 ASSET DISPOSAL NON-CORE • All disposals comple
Slide 37: Thank You
35 Aveng Summarised audited consolidated annual financial statements for the year ended 30 June 2019 THANK YOU Marina Bay Sands - Singapore Notes:
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Slide 39: www.aveng.co.za
IN AVENG WWW.aveng.Cco.Za