AVENG LIMITED - Announcement of new contracts by Australian subsidiary Mcconnell Dowell

Date

AEG 201901210023A<br/>
Announcement of new contracts by Australian subsidiary Mcconnell Dowell<br/>
<br/>
AVENG LIMITED<br/>
(Incorporated in the Republic of South Africa)<br/>
(Registration number: 1944/018119/06)<br/>
Share code: AEG<br/>
Share ISIN: ZAE000194940<br/>
("Aveng", "the Company")<br/>
<br/>
ANNOUNCEMENT OF NEW CONTRACTS BY AUSTRALIAN SUBSIDIARY MCCONNELL DOWELL<br/>
<br/>
Salient features:<br/>
• Awards received in FY 2019 Q2 total over R4.0 billion. Total awards for FY 2019 to date<br/>
total over R8.5 billion<br/>
• Contract awards in FY 2019 supports McConnell Dowell's baseline revenue for FY 2020<br/>
and beyond<br/>
• McConnell Dowell continues to advance its Strategic Plan of steady growth as a reliable<br/>
high performing valued business partner<br/>
<br/>
UPDATE ON ORDER BOOK & RECENT MAJOR CONTRACT AWARDS<br/>
<br/>
Aveng is pleased to provide an update on recent contract awards secured by the Group's Australian<br/>
subsidiary, McConnell Dowell, a core business within the Aveng Group. A key priority in its Strategic Plan<br/>
is to deliver long term sustainable growth.<br/>
<br/>
McConnell Dowell is a respected specialist infrastructure contractor providing engineering and<br/>
construction solutions to the infrastructure, building and resource sectors across Australia, New Zealand<br/>
and the Pacific and Southeast Asia. Its latest contract awards reaffirms the disciplined growth agenda and<br/>
reflects the growing momentum and demand for its specialist capabilities against a backdrop of strong<br/>
opportunities and competition across its operating regions. The business is well positioned to take<br/>
advantage of the significant market opportunities in which it operates.<br/>
<br/>
Key contracts awarded during FY 2019 Q2 include:<br/>
<br/>
Tuas Water Reclamation Project (Singapore): The Tuas Water Reclamation Plant is a highly strategic<br/>
and important infrastructure project that will deliver substantial environmental and social benefits to<br/>
Singapore and its people. This award comes after McConnell Dowell's successful completion late last<br/>
year of the complex Tuas Road bridge project for a related Singapore Government entity in the Tuas<br/>
vicinity. McConnell Dowell will provide site-wide facilities and support services for the Tuas Facility<br/>
including construction of the outfall, sewer connections in the vicinity, as well as the provision and<br/>
maintenance of services such as security, utilities, telecommunications, traffic management. When<br/>
completed, the Tuas Facility will be the largest water reclamation plant in Singapore to use membrane<br/>
bioreactor technology.<br/>
<br/>
Wingfold Tower (Australia): Following a change of ownership of this development site, McConnell<br/>
Dowell's subsidiary Built Environs will continue work on the 25 level luxury apartment complex in<br/>
Adelaide's CBD under a new construction contract. Construction will resume in early 2019 and is<br/>
scheduled for completion in 2020.<br/>
<br/>
Pukekohe Wastewater Treatment Plant (New Zealand): McConnell Dowell's joint venture with HEB<br/>
Construction Ltd will cement its reputation as the leading provider of wastewater development projects in<br/>
New Zealand with this significant treatment plant upgrade required to service the growing South Auckland<br/>
region. The new facility will double the plant's capacity and works will begin immediately. The award of<br/>
this project builds upon the successful completion of the award-winning BNR project in 2018.<br/>
<br/>
Wynyard Edge Alliance (New Zealand): McConnell Dowell's reputation for marine works has been<br/>
further enhanced by being selected to execute the Wynyard Edge Alliance in Auckland. Working<br/>
alongside Downer, BECA, Tonkin + Taylor, Auckland Council and MBIE, the Alliance will design and<br/>
th<br/>
construct the infrastructure to support the 36 America's Cup in New Zealand to be held in 2021.<br/>
<br/>
Stanley Street Stormwater Upgrade (New Zealand): McConnell Dowell will deliver stormwater upgrade<br/>
and outlet works for the Ports of Auckland.<br/>
<br/>
These recent contract awards cement McConnell Dowell's position in key strategic markets, including<br/>
commercial real estate, water and waste water and marine sectors. Moreover, the awards underpin<br/>
McConnell Dowell's Strategic Plan of steady growth, reliable performance and in being a valued business<br/>
partner through a disciplined and highly-focused project pursuit pipeline. The awards confirm McConnell<br/>
Dowell's progress under its business strategy to build a platform for long term, sustained growth and<br/>
profitability.<br/>
<br/>
The awards in the first half of FY2019 total over R8.5 billion, taking McConnell Dowell's Order Book to<br/>
R11.4 billion as at 31 December 2018 (up 50% from R7.6 billion as at 30 June 2018). With a healthy level<br/>
of work in Early Client Involvement (ECI) status, McConnell Dowell is well-positioned to continue to<br/>
secure additional work in the near term.<br/>
<br/>
This supports McConnell Dowell's baseline revenue for FY 2020 and beyond, providing a strong base for<br/>
continued growth across its core markets and operating regions. In addition, the market sectors that<br/>
McConnell Dowell services are expected to see ongoing positive conditions, offering growth opportunities<br/>
with the continued roll out of medium and large-sized projects.<br/>
<br/>
<br/>
The information contained in this announcement has not been reviewed and reported on by the<br/>
Company's external auditors<br/>
<br/>
Jet Park<br/>
21 January 2019<br/>
<br/>
JSE Sponsor<br/>
UBS South Africa Proprietary Limited<br/>
<br/>
<br/>
<br/>
<br/>
Michael Canterbury<br/>
Group Executive: Strategy & Investor Relations<br/>
Tel: 011 779 2979<br/>
Email: michael.canterbury@avenggroup.com<br/>
<br/>
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