Strategy and risk

THE ESSENCE OF THE NEW STRATEGIC FUTURE

Strategy and risk

FOCUS ON VALUE CREATION

VALUE DRIVERS CORPORATE
ACTION
  KEY CONSIDERATIONS FY2018   FY2019   FY2020   RISKS  
01
  STRATEGY
EXECUTION AND
EARNINGS
DELIVERY
STRATEGIC
FOCUS
 
  • Focus on the strategic framework within which the business platforms design their plans
  • Continue to expand internationally
  • Close-out the Middle East projects/office and the Dubai Airport claim
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Circle STRATEGIC RISK
  • Global economy remains depressed
  • Order book replenishment
  • Ongoing weakness in oil and gas markets leading to a lack of large project opportunities
  • Replacement work post the completion of the South African power programme
  • Undertaking value-creating acquisitions
  • Complete the Middle East projects and closure of this operation
 
 
     
MERGERS AND ACQUISITIONS
 
  • Identify and conclude value-accretive acquisitions in key growth markets, specifically the USA
  • Continue to position the business in developed markets and higher margin segments of the project life cycle
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    CORPORATE RISK
  • Recovery of uncertified revenues
OPERATIONAL RISK
  • Winning new work in the Oil & Gas platform and margin erosion in the platform’s existing projects
  • Resource constraints impacting rapid organic growth in the Underground Mining platform as the commodity cycle turns
02
  OPERATIONAL
PERFORMANCE
PERFORMANCE MANAGEMENT
 
  • Engineered Excellence is non-negotiable
  • Deliver/exceed ROICE targets and earnings guidance
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OPERATIONAL AND PROJECT RISK
  • Health, safety and environmental exposures
  • Industrial unrest in South Africa
  • Ineffective project delivery and project losses
  • Commercial close-out on the South African power programme
  • Unfavourable outcome in terms of the Grayston temporary works collapse
03
  OPTIMAL
CAPITAL
STRUCTURE
BALANCE SHEET MANAGEMENT
 
  • Target appropriate gearing level to support sustainable growth in the context of the commodity cycle and market volatility
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  • Group liquidity constraints
04
  RETURNS TO
SHAREHOLDERS
DIVIDEND
POLICY
 
  • Maintain dividend policy and reinvest excess cash in value-creating acquisitive growth
Tick   Tick   Tick Circle STRATEGIC RISK
  • Group liquidity constraints
05
  STRONG
SHAREHOLDER
REGISTER
SHAREHOLDER ENGAGEMENT
 
  • Secure support from key shareholders on strategy and value proposition
Tick   Tick   Tick Circle STRATEGIC RISK
  • Global economy remains depressed
                CORPORATE RISK
  • Recovery of uncertified revenues