Summarised Audited Consolidated Annual Financial Statements for The
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Aveng Group summarised audited consolidated annual financial statements2017 Summarised audited consolidated annual financial statements for the year ended 30 June 2017 Aveng Group summarised audited consolidated annual financial statements2017 Salient features – financial performance for the period ended 30 June 2017 Revenue Claims, uncertified revenue and other write-downs – non-cash impact R23,4 billion R5,1 billion Decrease mainly due to QCLNG award and uncertified revenue write-down of R5,1 billion from R33,8 billion at Relating to QCLNG award and uncertified revenue and June 2016 other claims South African government settlement Operating costs R165 million R503 million (18%) R21,25 million payment per annum for 12 years Decrease from R2,8 billion at June 2016 Net operating loss Headline loss R5,4 billion R6,4 billion Decrease from R299 million at June 2016 Decrease from R146 million earnings at June 2016 Operating free cash flow Loss per share R308 million outflow 1 690,6 cents Improvement from R1 125 million outflow at June 2016 Decrease from 25,4 cents at June 2016 Headline loss per share Two-year order book 1 625,3 cents R29,9 billion Decrease from 75,2 cents at June 2016 Improvement from R27,7 billion at December 2016 Aveng Group summarised audited consolidated annual financial statements2017 Net operating (loss) / earnings – segmental analysis FY2017 FY2016 Change Rm Rm % South Africa and rest of Africa (392) (148) >(100) Aveng Grinaker-LTA (399) (342) (17) Aveng Capital Partners 7 194 (96) Australasia and Asia (4 370) 14 >(100) Total Construction and Engineering (4 762) (134) >(100) Mining 219 276 (21) Manufacturing and Processing (3) (70) 96 Aveng Steel (53) (166) (68) Aveng Manufacturing 50 96 (48) Other and Eliminations (849) 74 >(100) Net operating (loss) / earnings (5 395) 146 >(100) Loss attributable to equity-holders of the parent (6 708) (101) >(100) Headline loss (6 449) (299) >(100) Revenue per operating group (3%) (1%) 26% 17% 23% n McConnell Dowell n Aveng Grinaker-LTA 38% n Aveng Mining 9% 2017 n Aveng Manufacturing 2016 11% n Aveng Steel 25% n Other and Eliminations 15% 18% 22% Two-year order book per operating group 1% 17% 26% n McConnell Dowell n Aveng Grinaker-LTA n Aveng Mining 2017 n Aveng Manufacturing 2016 51% 23% 59% 23% 1 Aveng Group summarised audited consolidated annual financial statements2017 Summarised statement of financial position as at 30 June 2017 2017 2016 Notes Rm Rm ASSETS Non-current assets Goodwill arising on consolidation 342 342 Intangible assets 271 325 Property, plant and equipment 4 611 4 843 Equity-accounted investments 334 100 Infrastructure investments 265 177 Deferred taxation 9 1 290 1 858 Amounts due from contract customers 10 756 1 417 7 869 9 062 Current assets Inventories 2 085 2 211 Derivative instruments 2 20 Amounts due from contract customers 10 3 712 8 047 Trade and other receivables 1 840 2 058 Taxation receivable 61 – Cash and bank balances 1 996 2 450 9 696 14 786 Non-current assets held-for-sale 122 1 484 TOTAL ASSETS 17 687 25 332 EQUITY AND LIABILITIES Equity Share capital and share premium 2 009 2 009 Other reserves 1 060 1 821 Retained earnings 2 981 9 689 Equity attributable to equity-holders of parent 6 050 13 519 Non-controlling interest 8 37 Total equity 6 058 13 556 Liabilities Non-current liabilities Deferred taxation 9 319 266 Borrowings and other liabilities 11 1 945 1 770 Payables other than contract-related 12 133 – Employee-related payables 312 379 2 709 2 415 Current liabilities Amounts due to contract customers 10 1 351 1 322 Borrowings and other liabilities 11 1 121 1 214 Payables other than contract-related 12 21 – Employee-related payables 501 559 Derivative instruments 17 27 Trade and other payables 5 909 5 886 Taxation payable – 106 8 920 9 114 Non-current liabilities held-for-sale – 247 TOTAL LIABILITIES 11 629 11 776 TOTAL EQUITY AND LIABILITIES 17 687 25 332 2 Aveng Group summarised audited consolidated annual financial statements2017 Summarised statement of comprehensive earnings for the year ended 30 June 2017 2017 2016 Notes Rm Rm Revenue 23 456 33 755 Cost of sales (26 591) (31 260) Gross earnings (3 135) 2 495 Other earnings 206 591 Operating expenses (2 305) (2 808) Earnings / (loss) from equity-accounted investments 4 (132) Operating (loss) / earnings (5 230) 146 South African government settlement (165) – Net operating (loss) / earnings (5 395) 146 Impairment / loss on derecognition of property, plant and equipment and intangible assets 7 (278) (333) Profit on sale of property, plant and equipment 4 592 (Loss) / earnings before financing transactions (5 669) 405 Finance earnings 198 211 Interest on convertible bonds (237) (225) Other finance expenses (405) (327) (Loss) / earnings before taxation (6 113) 64 Taxation 13 (626) (129) Loss for the period (6 739) (65) Other comprehensive earnings Other comprehensive earnings to be reclassified to earnings or loss in subsequent periods (net of taxation): Exchange differences on translating foreign operations (773) 786 Other comprehensive (loss) / earnings for the period, net of taxation (773) 786 Total comprehensive (loss) / earnings for the period (7 512) 721 Total comprehensive (loss) / earnings for the period attributable to: Equity-holders of the parent (7 481) 676 Non-controlling interest (31) 45 (7 512) 721 (Loss) / earnings for the period attributable to: Equity-holders of the parent (6 708) (101) Non-controlling interest (31) 36 (6 739) (65) Other comprehensive earnings for the period, net of taxation Equity-holders of the parent (773) 777 Non-controlling interest – 9 (773) 786 Results per share (cents) Loss – basic (1 690,6) (25,4) Loss – diluted (1 668,2) (25,1) Number of shares (millions) In issue 416,7 416,7 Weighted average 396,8 397,4 Diluted weighted average 402,1 402,1 EBITDA for the Group, being net operating earnings before interest, tax, depreciation and amortisation is R (4 740) million (June 2016: R969 million). 3 Aveng Group summarised audited consolidated annual financial statements2017 Summarised statement of changes in equity for the year ended 30 June 2017 Equity- Total attri- Total Foreign settled Conver- butable share currency share- tible to equity- capital trans- based bond Total holders Non- Share Share and lation payment equity other Retained of the controlling Total capital premium premium reserve reserve reserve reserves earnings parent interest equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Balance at 1 July 2015 20 2 003 2 023 757 15 390 1 162 9 790 12 975 23 12 998 Loss for the period – – – – – – – (101) (101) 36 (65) Other comprehensive earnings for the period (net of taxation) – – – 777 – – 777 – 777 9 786 Total comprehensive earnings for the period – – – 777 – – 777 (101) 676 45 721 Purchase of treasury shares – (23) (23) – – – – – (23) – (23) Equity-settled share-based payment release – 9 9 – (9) – (9) – – – – Equity-settled share-based payment charge – – – – 13 – 13 – 13 – 13 Transfer of convertible bond option to convertible Recognition of deferred tax on convertible bond – – – – – (122) (122) – (122) – (122) Decrease in equity investment – – – – – – – – – (29) (29) Dividends paid – – – – – – – – – (2) (2) Total contributions and distributions recognised – (14) (14) – 4 (122) (118) – (132) (31) (163) Balance at 1 July 2016 20 1 989 2 009 1 534 19 268 1 821 9 689 13 519 37 13 556 Loss for the period – – – – – – – (6 708) (6 708) (31) (6 739) Other comprehensive loss for the period (net of taxation) – – – (773) – – (773) – (773) – (773) Total comprehensive loss for the period – – – (773) – – (773) (6 708) (7 481) (31) (7 512) Equity-settled share-based payment charge – – – – 12 – 12 – 12 – 12 Decrease in equity investment – – – – – – – – – 5 5 Dividends paid – – – – – – – – – (3) (3) Total contribution and distributions recognised – – – – 12 – 12 – 12 2 14 Balance at 30 June 2017 20 1 989 2 009 761 31 268 1 060 2 981 6 050 8 6 058 4 Aveng Group summarised audited consolidated annual financial statements2017 Equity- Total attri- Total Foreign settled Conver- butable share currency share- tible to equity- capital trans- based bond Total holders Non- Share Share and lation payment equity other Retained of the controlling Total capital premium premium reserve reserve reserve reserves earnings parent interest equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Balance at 1 July 2015 20 2 003 2 023 757 15 390 1 162 9 790 12 975 23 12 998 Loss for the period – – – – – – – (101) (101) 36 (65) Other comprehensive earnings for the period (net of taxation) – – – 777 – – 777 – 777 9 786 Total comprehensive earnings for the period – – – 777 – – 777 (101) 676 45 721 Purchase of treasury shares – (23) (23) – – – – – (23) – (23) Equity-settled share-based payment release – 9 9 – (9) – (9) – – – – Equity-settled share-based payment charge – – – – 13 – 13 – 13 – 13 Transfer of convertible bond option to convertible Recognition of deferred tax on convertible bond – – – – – (122) (122) – (122) – (122) Decrease in equity investment – – – – – – – – – (29) (29) Dividends paid – – – – – – – – – (2) (2) Total contributions and distributions recognised – (14) (14) – 4 (122) (118) – (132) (31) (163) Balance at 1 July 2016 20 1 989 2 009 1 534 19 268 1 821 9 689 13 519 37 13 556 Loss for the period – – – – – – – (6 708) (6 708) (31) (6 739) Other comprehensive loss for the period (net of taxation) – – – (773) – – (773) – (773) – (773) Total comprehensive loss for the period – – – (773) – – (773) (6 708) (7 481) (31) (7 512) Equity-settled share-based payment charge – – – – 12