Annual Integrated Report

2019

Gathering
Momentum

Menu

Underground Mining + Oil & Gas + Power & Water

Strategy for focused
value creation

Value
drivers
Corporate
action
Key considerations FY20 FY21 FY22 Risk drivers Link to material issues
STRATEGY
EXECUTION
AND DELIVERY
Strategic
focus
  • Delivery of clear medium-term business plans across platforms.
  • Continue to expand internationally.
  • Leverage market position to deliver organic growth in each platform.
  • Closure of the Middle East operation and the Dubai airport claim.
   
  • Identify and conclude value-accretive acquisitions in growth markets across platforms to support growth.
 
  • Position platforms in developed markets and higher margin segments of the project life cycle.
STRATEGIC RISKS
  • Vulnerability to macroeconomic factors.
  • Group liquidity.
  • Capitalising on the recovery of oil and gas markets.
PROJECT RISK
  • Uncertified revenues.
Business model resilience
  • Leverage market position to drive short-term growth.
  • Diversify earnings potential through organic and acquisitive means.
  • Manage capital and liquidity effectively.
Employer of choice
  • Ensure leadership quality and succession depth through proactive development.
  • Attract and retain high-performing talent.
Corporate reputation
  • Respond effectively to local requirements.
Mergers and acquisitions
OPERATIONAL PERFORMANCE Performance management
  • Keep platforms accountable to the standards, systems, practices and reporting of Engineered Excellence.
  • Deliver/exceed ROICE targets and earnings guidance.
  • Target overhead costs of about 5% of revenue, through the cycle.
STRATEGIC RISKS
  • Vulnerability to macroeconomic factors.
  • Group liquidity.
  • Capitalising on the recovery of oil and gas markets.
OPERATIONAL RISKS
  • Health, safety and environmental exposures.
  • Community and industrial unrest.
PROJECT RISKS
  • Project losses.
  • Uncertified revenues.
Contractor of choice
  • Deepen Engineered Excellence philosophy.
  • Accelerate the application of relevant technology.
Employer of choice
  • Maintain best people practices.
Corporate reputation
  • Maintain reputation as an ethical and responsible multinational organisation.
  • Respond effectively to local requirements.
OPTIMAL
CAPITAL
STRUCTURE
Balance
sheet
management
  • Target appropriate gearing level to support sustainable growth in context of commodity cycle and market volatility.
STRATEGIC RISK
  • Group liquidity.
PROJECT RISK
  • Uncertified revenues.
Business model resilience
  • Manage capital and liquidity effectively.
CASH
RETURNS TO
SHAREHOLDERS
Dividend
policy
  • Stable annual dividend, may be supplemented from time to time with a special dividend.
STRATEGIC RISK
  • Group liquidity.
Business model resilience
  • Manage capital and liquidity effectively.
STRONG
SHAREHOLDER
REGISTER
Shareholder
engagement
  • Secure support from shareholders on strategy and value proposition.
STRATEGIC RISKS
  • Vulnerability to macroeconomic factors.
  • Group liquidity.
Business model resilience
  • Leverage market position to drive short-term growth.
  • Diversify earnings potential through organic and acquisitive means.
  • Manage capital and liquidity effectively.

Group chief executive’s and financial director’s report

 

Risk management report

 

Managing our material issues