Aveng Limited · JSE:AEG
Aveng — Q1 2006 Earnings Presentation
10 slides from Aveng's earnings presentation, November 2005
Slide 1: Quarterly update November 2005
Quarterly update November 2005 Carl Grim, Chief Executive
Slide 2: Construction
Construction • Change in order book during quarter ended September 2005 – Grinaker-LTA order book increased by 10% to R7,6bn – McConnell Dowell recorded 27% increase to AU$460m • Government’s strong emphasis on infrastructure development supports demand for our products and services • McConnell Dowe
Slide 3: Steel & Allied
Steel & Allied • Steel prices relatively stable over the past four months • Strong volumes in automotive industry and building construction segments • Weaker volumes in manufacturing and mining construction • Excellent overall performance from Trident Steel and Grinaker- LTA Manufacturing for 1st qu
Slide 4: Cement
Cement • Cement market driven by consumer housing demand – Expected public sector infrastructure spend has secondary impact • First signs of slowdown in consumer spending – Passenger car sales slowed in October – Retail sales growth trending down – House price growth has halved over the course of th
Slide 5: ABSA house price index
ABSA house price index 40 Monthly year / year change % 35 30 25 20 15 10 2001 2002 2003 2004 2005 Source: ABSA
Slide 6: Retail sales growth
Retail sales growth 15% Monthly year / year change 10% 5% 0% 2003 2004 2005 Source: STATS SA
Slide 7: Marikana dispute
Marikana dispute • Independent auditors, KPMG completed audit of costs related to contract – Finalised and issued Assurance Report on 18 October 2005 – Contract expenditure vs actual weighting of cost elements – Revised claim of R169,3m (at end Sept.) plus interest compared to R130m (at end June) es
Slide 8: Convertible bond
Convertible bond • 87% of shareholders approved of the issuing of shares to settle convertible bond in 2012
Slide 9: Prospects
Prospects Aveng will deliver on its three corporate objectives in 2006 – A growth in headline earnings per share of CPIX + 10% – A return on average equity of CPIX + 10% – A net debt to equity ratio of 35%
Slide 10: Contextualising Grinaker-LTA Manufacturing
Contextualising Grinaker-LTA Manufacturing McConnell Dowell Grinaker-LTA Engineering & Corporation Construction Project (14%) (37%) Management (3%) 16% 2% 33% 23% Trident Steel 12% 14% (23%) Grinaker-LTA Grinaker-LTA Opencast Mining Manufacturing (11%) (12%) 2005 - R13 535 million 2004 - R11 740 mil