Annual Integrated Report

2019

Gathering
Momentum

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Underground Mining + Oil & Gas + Power & Water

Financial capacity
for delivery

THE GROUP’S ROBUST FINANCIAL POSITION PROVIDES ADEQUATE CAPACITY TO FUND OUR ORGANIC AND ACQUISITIVE GROWTH PLANS.

The Group is in a strong cash position and debt is within our target range. Cost management is a focus with all platforms targeting overhead costs of about 5% of revenue through the cycle. The resilience of our business model, clearly defined plans to capitalise on the strategic positions of our business platforms in their markets and a quality order book, positions the Group to deliver sustainable growth and improved earnings.

REVENUE

(CONTINUING)

R20,2

BILLION
FY2018: R21,8 billion
   

ATTRIBUTABLE EARNINGS

R337

BILLION
FY2018: R267 million
   

PLATFORM REVENUE AND EBIT1 CONTRIBUTION (%)

	PLATFORM REVENUE AND EBIT1 CONTRIBUTION (%)

 
             

ORDER BOOK

(CONTINUING)

R46,8

BILLION
30 June 2018: R30,1 billion
   

HEPS

(DILUTED CONTINUING)

101

CENTS
FY2018: 112 cents
     
             

DIVIDEND

55

CENTS
FY2018: 50 cents
   

NET CASH

R1,8

BILLION
30 June 2018: R2,0 billion
     



CREATION OF VALUE (R million)

 

RETURN ON AVERAGE TOTAL ASSETS (%)

 

Statement of value created

 

Investment margins and aspirations

Our aspirations for the medium to longer term remain unchanged, supported by the evolution of the Group’s strategy.

CRITERIA AND METHOD   ASPIRATION     RESULTS  
MARGIN
EBIT1
Revenue
 
5% – 7.5%
 
FY2019
4%
 
FY2018 4.0%
FY2017 2.3%
FY2016 4.9%
 
GEARING
Total interest bearing debt
Ordinary shareholders equity
 
20% – 25%
 
FY2019
29%
 
FY2018 7.3%
FY2017 8.9%
FY2016 14.4%
 
ROE2
Net profit attributable to ordinary shareholders
Average ordinary shareholders equity
 
17.5%
through cycle
 
FY2019
5%
 
FY2018 4.0%
FY2017 0.7%
FY2016 11.0%
 
ROICE3
(Taxed EBIT + Income from associates)
Total capital employed5
 
WACC4
(13%) plus
1% – 4%
 
FY2019
9%
 
FY2018 7.5%
FY2017 2.6%
FY2016 10.9%
 
FREE CASH FLOW
Operating cash flow Replacement CAPEX6
+ Proceeds on disposal of PPE & intangibles
Number of shares
 
Budget
 
FY2019
cash positive
 
FY2018 Cash positive
FY2017 Cash positive
FY2016 Cash positive
 
RONA7
Taxed EBIT + Income from associates
Total net assets (excl tax and cash)
 
18%
after
Taxed EBIT
 
FY2019
24%
 
FY2018 11.1%
FY2017 4.1%
FY2016 17.0%
 
TSR8
(Increase in share price year on year
+ Dividend per share)
Share price (PY)
 
Relative
to peers
 
FY2019
above average
FY2018 Above average
FY2018 Above average
FY2018 Above average
 

 

1. Earnings before interest and tax.
2. Return on equity.
3. Return on invested capital.
4. Weighted average cost of capital.
5. Total capital employed = total equity + interest bearing debt – net assets held-for-sale – cash + advance payments.
6. Capital expenditure.
7. Return on net assets.
8. Total shareholder return.
                 

Group chief executive’s and financial director’s report

 

Summarised financial report

 

Full annual financial statements