AVENG LIMITED - Summarised audited consolidated an25 Sep 2018
AEG AEGCB 201809250080A
Summarised audited consolidated annual financial statements for the year ended 30 June 2018

AVENG GROUP
Share codes
(Incorporated in the Republic of South Africa)
(Registration number 1944/018119/06)
Share code: AEG
Share ISIN: ZAE 000194940
JSE 2019 convertible bond code: AEGCB
JSE 2019 convertible bond ISIN: ZAE 000194940
("Aveng", "the Company" or "the Group")

Summarised audited consolidated annual financial statements 
for the year ended 30 June 2018

Salient features - financial performance
for the year ended 30 June 2018

- Revenue
  R30,6 billion
  Increase mainly due to increased activity in McConnell Dowell and signs of improvement in commodities 
  benefiting Moolmans

- Net operating loss
  R401 million
  Decrease from R5,4 billion loss at June 2017

- Headline loss
  R1 679 million
  Decrease from R6,4 billion at June 2017

- Operating free cash flow
  R34 million outflow
  Improvement from R308 million outflow at June 2017

- Impairment of non-core assets
  R2,3 billion
  Strategic review resulted in a change in the measurement criteria and adjustment to non-core asset values 

- Loss per share
  653,9 cents
  Decrease from 1 245,1 cents at June 2017

- Headline loss per share
  311,6 cents
  Decrease from 1 197,0 cents at June 2017

- Two-year order book
  R17,9 billion
  Deterioration from R25,1 billion at December 2017
  

Summarised statement of financial position
as at 30 June 2018

                                                                                           2018          2017    
                                                                             Notes           Rm            Rm    
ASSETS
Non-current assets
Goodwill arising on consolidation                                                           100           342    
Intangible assets                                                                            47           271    
Property, plant and equipment                                                             3 010         4 611    
Equity-accounted investments                                                                 73           334    
Infrastructure investments                                                                  142           265    
Deferred taxation                                                                8          747         1 290    
Amounts due from contract customers                                              9          661           756    
                                                                                          4 780         7 869    
Current assets                                                                                                   
Inventories                                                                                 255         2 085    
Derivative instruments                                                                        3             2    
Amounts due from contract customers                                              9        2 649         3 712    
Trade and other receivables                                                                 180         1 840    
Taxation receivable                                                                          39            61    
Cash and bank balances                                                                    2 391         1 996    
                                                                                          5 517         9 696    
Assets Held for Sale                                                            10        4 773           122    
TOTAL ASSETS                                                                             15 070        17 687    
EQUITY AND LIABILITIES                                                                                           
Equity                                                                                                           
Share capital and share premium                                                           2 009         2 009    
Other reserves                                                                            1 118         1 060    
Retained earnings                                                                          (542)        2 981    
Equity attributable to equity-holders of parent                                           2 585         6 050    
Non-controlling interest                                                                      9             8    
TOTAL EQUITY                                                                              2 594         6 058    
Liabilities                                                                                                      
Non-current liabilities                                                                                          
Deferred taxation                                                                8           49           319    
Borrowings and other liabilities                                                11        2 688         1 945    
Payables other than contract-related                                                        125           133    
Employee-related payables                                                                   248           312    
                                                                                          3 110         2 709    
Current liabilities                                                                                              
Amounts due to contract customers                                                9        1 140         1 351    
Borrowings and other liabilities                                                11          599         1 121    
Payables other than contract-related                                                         21            21    
Employee-related payables                                                                   253           501    
Derivative instruments                                                                        -            17    
Trade and other payables                                                                  2 958         5 909    
Bank overdrafts                                                                             315             -    
                                                                                          5 286         8 920    
Liabilities Held for Sale                                                       10        4 080             -    
TOTAL LIABILITIES                                                                        12 476        11 629    
TOTAL EQUITY AND LIABILITIES                                                             15 070        17 687    
                                                                                      

Summarised statement of comprehensive earnings
for the year ended 30 June 2018

                                                                                           2018          2017     
                                                                             Notes           Rm            Rm    
Revenue                                                                                  30 580        23 456    
Cost of sales                                                                           (28 782)      (26 591)   
Gross earnings / (loss)                                                                   1 798        (3 135)   
Other earnings                                                                              106           206    
Operating expenses                                                                       (2 292)       (2 305)   
(Loss) / earnings from equity-accounted investments                                         (13)            4    
Operating loss                                                                             (401)       (5 230)   
South African government settlement                                                           -          (165)   
Net operating loss                                                                         (401)       (5 395)   
Impairment loss on goodwill, intangible assets                                                      
and property, plant and equipment                                                6       (1 298)         (278)   
Impairment loss on equity-accounted investments                                            (195)            -    
Fair value adjustment on properties and disposal                                                    
groups classified as Held for Sale                                              10         (807)            -    
Profit on sale of property, plant and equipment                                              47             4    
Loss before financing transactions                                                       (2 654)       (5 669)   
Interest received on bank balances                                                          246           198    
Interest on convertible bonds                                                   11         (251)         (237)   
Other finance expenses                                                                     (434)         (405)   
Loss before taxation                                                                     (3 093)       (6 113)   
Taxation                                                                        12         (426)         (626)   
Loss for the period                                                                      (3 519)       (6 739)   
Loss from continuing operations                                                          (1 050)       (6 238)   
Loss from discontinued operations                                                4       (2 469)         (501)   

                                                                                           2018          2017     
                                                                             Notes           Rm            Rm    
Other comprehensive earnings                                                                                     
Other comprehensive earnings to be reclassified to
earnings or loss in subsequent periods (net of taxation):
Exchange differences on translating foreign operations                                       48          (773)   
Other comprehensive earnings / (loss) for the period,
net of taxation                                                                              48          (773)   
Total comprehensive loss for the period                                                  (3 471)       (7 512)   
Total comprehensive loss from continuing operations                                      (1 002)       (7 011)   
Total comprehensive loss from discontinued operations                            4       (2 469)         (501)   
Total comprehensive loss for the period attributable to:                                                         
Equity-holders of the parent                                                             (3 473)       (7 481)   
Non-controlling interest                                                                      2           (31)   
                                                                                         (3 471)       (7 512)   
Loss for the period attributable to:                                                                             
Equity-holders of the parent                                                             (3 523)       (6 708)   
Non-controlling interest                                                                      4           (31)   
                                                                                         (3 519)       (6 739)   
Other comprehensive earnings / (loss) for the
period, net of taxation
Equity-holders of the parent                                                                 50          (773)   
Non-controlling interest                                                                     (2)            -    
                                                                                             48          (773)   
Results per share (cents)                                                                                        
From continuing and discontinued operations                                                                      
Loss - basic                                                                             (653,9)     (1 245,1)   
Loss - diluted                                                                           (642,9)     (1 233,1)   
From continuing operations                                                                                       
Loss - basic                                                                             (195,6)     (1 152,1)   
Loss - diluted                                                                           (192,4)     (1 141,0)   
From discontinued operations                                                                                     
Loss - basic                                                                             (458,3)        (93,0)   
Loss - diluted                                                                           (450,6)        (92,1)   
Number of shares (millions)                                                                                      
In issue                                                                                  416,7         416,7    
Weighted average                                                                          538,8         538,8    
Diluted weighted average                                                                  548,0         544,0    

EBITDA for the Group, being net operating earnings before interest, tax, depreciation and amortisation is 
R293 million (June 2017: R(4 740) million).


Summarised statement of changes in equity
for the year ended 30 June 2018
                                                                                             Equity-             
                                                                                             settled       Con-  
                                                                                   Foreign    share-   vertible  
                                                                 Total share      currency     based       bond    
                                              Share      Share   capital and   translation   payment     equity     
                                            capital    premium       premium       reserve   reserve    reserve
                                                 Rm         Rm            Rm            Rm        Rm         Rm       
Balance at 1 July 2016                           20      1 989         2 009         1 534        19        268   
Loss for the period                               -          -             -             -         -          -   
Other comprehensive loss                                                                                         
for the period (net of taxation)                  -          -             -          (773)        -          -   
Total comprehensive loss the period               -          -             -          (773)        -          -   
Equity-settled share-based payment charge         -          -             -             -        12          -   
Decrease in equity investment                     -          -             -             -         -          -   
Dividends paid                                    -          -             -             -         -          -   
Total contributions and distributions                                                                            
recognised                                        -          -             -             -        12          -   
Balance at 1 July 2017                           20      1 989         2 009           761        31        268   
Loss for the period                               -          -             -             -         -          -   
Other comprehensive earnings                                                                                     
for the period (net of taxation)                  -          -             -            50         -          -   
Total comprehensive loss for the period           -          -             -            50         -          -   
Equity-settled share-based payment charge         -          -             -             -         8          -   
Dividends paid                                    -          -             -             -         -          -   
Total contribution and distributions                                                                             
recognised                                        -          -             -             -         8          -   
Balance at 30 June 2018                          20      1 989         2 009           811        39        268   


Summarised statement of changes in equity
for the year ended 30 June 2018 (continued)
                                                                                  Total                 
                                                                               attribu-                
                                                                                  table                
                                                         Total               to equity-          Non-               
                                                         other   Retained    holders of   controlling     Total            
                                                      reserves   earnings    the parent      interest    equity          
                                                            Rm         Rm            Rm            Rm        Rm        
Balance at 1 July 2016                                   1 821      9 689        13 519            37    13 556    
Loss for the period                                          -     (6 708)       (6 708)          (31)   (6 739)   
Other comprehensive loss                                                                               
for the period (net of taxation)                          (773)         -          (773)            -      (773)   
Total comprehensive loss the period                       (773)    (6 708)       (7 481)          (31)   (7 512)   
Equity-settled share-based payment charge                   12          -            12             -        12    
Decrease in equity investment                                -          -             -             5         5    
Dividends paid                                               -          -             -            (3)       (3)   
Total contributions and distributions                                                                  
recognised                                                  12          -            12             2        14    
Balance at 1 July 2017                                   1 060      2 981         6 050             8     6 058    
Loss for the period                                          -     (3 523)       (3 523)            4    (3 519)   
Other comprehensive earnings                                                                           
for the period (net of taxation)                            50          -            50            (2)       48    
Total comprehensive loss for the period                     50     (3 523)       (3 473)            2    (3 471)   
Equity-settled share-based payment charge                    8          -             8             -         8    
Dividends paid                                               -          -             -            (1)       (1)   
Total contribution and distributions                                                                   
recognised                                                   8          -             8            (1)        7    
Balance at 30 June 2018                                  1 118       (542)        2 585             9     2 594    


Summarised statement of cash flows
for the year ended 30 June 2018
                                                                                           2018          2017     
                                                                             Notes           Rm            Rm    
Operating activities                                                                                             
Cash utilised from operations                                                            (2 648)       (5 681)   
Non-cash and other movements                                                    13        2 177         4 490    
Cash utilised from operations after non-cash movements                                     (471)       (1 191)   
Depreciation                                                                                666           627    
Amortisation                                                                                 28            28    
Cash generated / (utilised) by operations                                                   223          (536)   
Changes in working capital:                                                                                      
Decrease in inventories                                                                   1 847           163    
Decrease in amounts due from contract customers                                           1 158            27    
Decrease in trade and other receivables                                                   1 660           198    
(Decrease) / increase in amounts due to contract customers                                 (211)           29    
(Decrease) / increase in trade and other payables                                        (2 959)           28    
(Decrease) / increase in derivative instruments                                             (18)            8    
(Decrease) / increase in payables other than contract-related                               (21)          144    
Decrease in employee-related payables                                                      (340)          (79)   
Increase in net assets and liabilities classified as Held for Sale                         (526)         (106)   
Total changes in working capital                                                            590           412    
Cash generated / (utilised) by operating activities                                         813          (124)   
Finance expenses paid                                                                      (532)         (531)   
Finance earnings received                                                                   244           215    
Taxation paid                                                                               (95)         (182)   
Cash inflow / (outflow) from operating activities                                           430          (622)   
Investing activities                                                                                             
Acquisition of property, plant and equipment - expansion                                   (138)         (135)   
Acquisition of property, plant and equipment - replacement                                 (625)         (793)   
Proceeds on disposal of property, plant and equipment                                       291           315    
Proceeds on disposal of other assets                                                          -           104    
Proceeds on disposal of ACP assets                                                            -           821    
Net proceeds on disposal of Steeledale assets                                                 -            50    
Acquisition of intangible assets - replacement                                              (23)          (27)   
Capital expenditure net of proceeds on disposal                                            (495)          335    
Net loans repaid by / (advanced to) equity-accounted investments 
net of dividends received                                                                    18           (27)   
Increase in equity-accounted investments                                                      -           (11)   
Net loans repaid by infrastructure investment companies                                       6             9    
Dividend received                                                                             7             8    
Cash (outflow) / inflow from investing activities                                          (464)          314    
Operating free cash outflow                                                                 (34)         (308)   
                                                                                                                 
Loans advanced by non-controlling interest                                                    -             5    
Dividends paid                                                                               (1)           (3)   
Net proceeds / (repayment of) from borrowings                                               134           (25)   
Cash inflow / (outflow) from financing activities                                           133           (23)   
Net increase / (decrease) in cash and bank balances                                                  
before foreign exchange movements                                                            99          (331)   
Foreign exchange movements on cash and bank balances                                        (19)         (123)   
Cash and bank balances at the beginning of the period                                     1 996         2 450    
Total cash and bank balances at the end of the period                                     2 076         1 996    
Borrowings excluding bank overdrafts                                                      3 287         3 066    
Net debt position                                                                        (1 211)       (1 070)   


Summarised accounting policies
for the year ended 30 June 2018

1.  CORPORATE INFORMATION
    The summarised audited consolidated financial statements ("results´┐Ż) of Aveng Limited (the "Company") 
    and its subsidiaries (the "Group") for the period ended 30 June 2018 were authorised for issue in accordance 
    with a resolution of the directors on 25 September 2018.
    
    Nature of business
    Aveng Limited is a limited liability company incorporated and domiciled in the Republic of South Africa whose 
    shares are publicly traded. The Group operates in the construction, engineering and mining environments and as 
    a result the revenue is not seasonal in nature, but is influenced by the nature and execution of the contracts 
    currently in progress.
    
2.  PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
    The accounting policies below are applied throughout the summarised audited consolidated financial statements.
    
    Basis of preparation
    The summarised audited consolidated financial statements have been prepared on a historical cost basis, except 
    for certain financial assets which are measured at fair value.
    
    These summarised audited consolidated financial statements are presented in South African Rand ("ZAR") and all 
    values are rounded to the nearest million ("Rm") except where otherwise indicated. The summarised audited 
    consolidated financial statements are prepared in accordance with IAS 34 Interim Financial Statements and 
    the Listings Requirements of the Johannesburg Stock Exchange Limited ("JSE"). The accounting policies adopted 
    are consistent with those of the previous year as well as the Group's interim results as at 31 December 2017, 
    except as disclosed in note 4: Standards and interpretations effective and not yet effective of the Group's 
    audited consolidated financial statements.
    
    The summarised audited consolidated financial results do not include all the information and disclosures 
    required in the consolidated financial statements, and should be read in conjunction with the Group's audited 
    consolidated financial statements as at 30 June 2018 that are available on the Company's website, http://www.aveng.co.za.
    
    The financial results have been prepared by Efstathios White CA(SA) under the supervision of the Group CFO, 
    Adrian Macartney CA(SA).
    
    The summarised audited consolidated financial statements have been audited by Ernst & Young Incorporated and 
    the unqualified audit opinion is available on request from the company secretary at the Company's 
    registered office.
    
    Assessment of significance or materiality of amounts disclosed in these summarised results
    The Group presents amounts in these summarised results in accordance with International Financial Reporting 
    Standards ("IFRS"). Only amounts that have a relevant and material impact on the summarised results have 
    been separately disclosed. The assessment of significant or material amounts is determined by taking into 
    account the qualitative and quantitative factors attached to each transaction or balance that is assessed.

3.  GOING CONCERN AND LIQUIDITY
    As detailed in note 2: Presentation of Consolidated Financial Statements and note 15: Events after the 
    reporting period and pending transactions to the financial statements, in determining the appropriate basis of 
    preparation of the financial statements, the Board is required to consider whether the Company can continue in 
    operational existence for the foreseeable future. 

    Management has prepared a budget and business plan for the 2019 financial year and the following two years, as 
    well as cash flow forecasts covering a minimum of twelve months from the date of these financial statements. 
    These forecasts have been prepared with the assistance of independent external advisors to ensure that they have 
    been accurately compiled using appropriate assumptions. The budgets, plans and forecasts have, together with the 
    assumptions used, been interrogated and approved by the Board. These forecasts and plans, being implemented by 
    management, indicate that the Group will have sufficient cash resources for the foreseeable future. In approving 
    the operational and liquidity forecasts, the Board has considered the following information up to the date of 
    approval of these financial statements: 
    - Strategy adopted by the Board and announced on 26 February 2018;
    - Successful R493 million rights issue concluded on 4 July 2018;
    - Early redemption of the R2 billion convertible bond, including the successful raising of a new R460 million 
      debt instrument to facilitate the settlement of R657 million of existing convertible bonds at a 30% discount 
      ahead of the early redemption. The remaining R1.4 billion bonds were settled through the specific issue of 
      ordinary shares at R0.10 per share on 25 September 2018;
    - Implementation of a revised Common Terms Agreement with the SA lending banks that includes renewed facilities, 
      additional funding of R400 million and extended funding terms to 2020;
    - Updated non-core asset disposal plan, including the announced property disposals of R254 million; 
    - Updated budget and business plans for the post year end period up to 31 December 2019 for the Group, 
      incorporating the benefits already realised from the Strategic Action Plan such as improved operating performance, 
      greater predictability of performance and working capital enhancements, as well as future benefits to liquidity 
      to be achieved once non-core businesses have been disposed; 
    - Sensitivity testing of key inputs included in the operating and liquidity budgets to ascertain the effect of 
      non-achievement of one or all of the key inputs (operational performance, non-core asset disposal timing), 
      including any effect on the ongoing compliance with covenant requirements in place with the SA lending banks, 
      Australian banks or other financing agreements; and
    - A short-term liquidity forecast management process that has been introduced and embedded in all the South 
      African operations with the help of external consultants.

    In the 2018 financial year, the Group reported a loss after tax of R3,5 billion due to R2,3 billion 
    impairments and losses incurred of R1,2 billion. As a result of these losses and continued difficult  
    trading conditions in the wider industry, the Group's available cash resources were negatively impacted. 
    The Group continues to focus on improving operational performance, reducing overhead and improving working 
    capital efficiencies. To this end, a number of Group initiatives have been concluded, implemented or are 
    in progress.

    The Group has cash (net of bank overdraft facilities) of R2,1 billion (2017: R2,0 billion) at year end, 
    R568 million (2017: R625 million) of which is held in joint arrangements. Advance payments that will be 
    used in the short-term amount to R85 million (2017: R146 million) while short-term debt repayments 
    (excluding finance lease liabilities) are R255 million (2017: R704 million). After working capital 
    requirements of R800 million (2017: R800 million) and unutilised facilities of R536 million 
    (2017: R1,4 billion), the short-term liquidity of the Group is considered to be satisfactory to 
    the Board with liquidity headroom of R904 million. This position is further enhanced after the 
    conclusion of the capital markets transactions detailed in note 15: Events after the reporting 
    period and pending transactions.

    A revised Common Terms agreement has been concluded with the South African lending banks. Through this 
    process the Group negotiated renewed facilities, obtained additional funding to improve the liquidity 
    position and extended the funding terms to 2020. The Board believes that the support from the South 
    African lending banks, together with the R493 million capital injection following the rights issue 
    and the early redemption of the convertible bonds that will substantially alleviate the interest 
    burden for the Group will provide adequate financial resources to enable the Group to meet its 
    obligations over the next twelve months and beyond.
    
    The directors have considered all of the above, including detailed consideration of all business plans 
    and forecasts, including all available information, and are therefore of the opinion that the going concern 
    assumption is appropriate in the preparation of the financial statements, and that sufficient liquidity will 
    be available to support the ongoing operations of the Group. 

4.  DISCONTINUED OPERATIONS
    Identification and classification of discontinued operations
    During the financial year, management embarked on an extensive strategic review to ensure the Group's sustainable 
    future. The review was completed in February 2018 following a thorough and robust interrogation of all parts 
    of the business. The review included the identification of businesses and assets that are core to the Group 
    and which support the overall long-term strategy, determining the most appropriate operating structure, 
    as well as recommending a sustainable future capital and funding model.

    A comprehensive plan was developed and is being implemented by management to execute on the critical findings 
    of the strategic review. Some of the findings included the reshaping of the Group's operating structure to 
    a smaller and more focused group. The newly envisaged Group structure comprises McConnell Dowell and 
    Aveng Mining forming the core businesses, with Aveng Grinaker-LTA, Aveng Manufacturing and Aveng Trident 
    Steel being deemed the non-core operating groups. As at 30 June 2018, management was committed to exit and 
    dispose of the identified non-core operating groups.

    Aveng Grinaker-LTA, forming part of the Construction and Engineering: South Africa and rest of Africa 
    reportable segment (refer to note 5: Segmental report) and Aveng Manufacturing and Aveng Trident Steel, 
    both forming part of the Manufacturing and Processing reportable segment (refer to note 5: Segmental report), 
    have met the requirements in terms of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and 
    have been presented as discontinued operations in the Group's statement of comprehensive earnings.

    The Group's intention to dispose of the non-core operating groups triggered an impairment assessment on the 
    underlying assets allocated to the identified cash-generating units of the operating groups - refer to 
    note 6: Impairments.

    The underlying assets and liabilities of the non-core operating groups were classified as Held for Sale per 
    the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations in separately 
    identifiable disposal groups - refer to note 10: Assets and liabilities classified as Held for Sale.

    Identification and classification of discontinued operations
    The loss from discontinued operations is analysed as follows:
                                                                                       2018           2017    
                                                                                         Rm             Rm    
    Revenue                                                                          13 975         13 812    
    Cost of sales                                                                   (13 659)       (13 287)    
    Gross earnings                                                                      316            525    
    Other earnings                                                                      113            168    
    Operating expenses                                                                 (966)        (1 084)   
    Earnings / (loss) from equity-accounted investments                                   3             (4)    
    Operating loss                                                                     (534)          (395)    
    Impairment loss on goodwill, intangible assets and 
    property, plant and equipment                                                    (1 132)          (240)    
    Impairment loss on equity-accounted investments                                      (7)             -    
    Fair value adjustments on properties and disposal groups 
    classified as Held for Sale                                                        (734)             -    
    Profit on sale of property, plant and equipment                                      12              3    
    Loss before financing transactions                                               (2 395)          (632)    
    Net finance expenses                                                                (89)           (32)    
    Loss before taxation                                                             (2 484)          (664)    
    Taxation                                                                             15            163    
    Loss for the period                                                              (2 469)          (501)    
    Attributable to:                                                                                           
    Equity-holders of the parent                                                     (2 469)          (501)    
    Other comprehensive earnings for the period, net of taxation                          -              -    
    Total comprehensive loss for the period                                          (2 469)          (501)   
    Items by nature                                                                                            
    Capital expenditure                                                                 138            222    
    Depreciation                                                                       (132)          (171)    
    Amortisation                                                                         (8)           (13)    
    Loss before interest, taxation, depreciation and amortisation (EBITDA)             (394)          (211)    
    Results per share (cents)                                                                                  
    Loss - basic                                                                     (458,3)         (93,0)    
    Loss - diluted                                                                   (450,6)         (92,1)    
    Net cash flows in relation to discontinued operations:                                                   
    Cash outflow from operating activities                                               (4)          (886)    
    Cash (outflow) / inflow from investing activities                                   (93)           670    
    Cash inflow from financing activities                                                17              5    

Notes to the summarised consolidated financial statements
for the year ended 30 June 2018

5.  SEGMENTAL REPORT
    The reportable segments of the Group are components:
    - that engage in business activities from which they earn revenues and incur expenses; and
    - have operating results that are regularly reviewed by the Group's chief operating decision makers to make 
      decisions about resources to be allocated to the segments and in the assessment of their performance as 
      required per IFRS 8: Operating Segments.

    Prior to the outcome of the strategic review and management's plan to reshape and refocus the operating 
    structure of the Group, the following five reportable segments were presented which were largely organised 
    and managed separately according to the nature of products and services provided:
    - Construction and Engineering: Australasia and Asia;
    - Mining;
    - Other and Eliminations;
    - Construction and Engineering: South Africa and rest of Africa; and
    - Manufacturing and Processing.

    In line with the findings of the strategic review and as discussed in note 4: Discontinued operations, 
    the Construction and Engineering: South Africa and rest of Africa and Manufacturing and Processing 
    reportable segments are presented and disclosed as discontinued operations. The Construction and Engineering: 
    Australasia and Asia, Mining and Other and Eliminations reporting segments are presented as continuing operations.

    The reportable segments are presented per their classification as continuing and discontinued operations in 
    the disclosure of the segmental statement of comprehensive earnings and segmental statement of financial position.
    Details on the reportable segments are as follows:

5.1   Continuing operations
5.1.1 Construction and Engineering: Australasia and Asia
      This segment comprises McConnell Dowell and is divided into the following business units: Australia, 
      New Zealand and Pacific, Built Environs, Southeast Asia and Middle East.

      This segment specialises in the construction and maintenance of tunnels and pipelines, railway 
      infrastructure maintenance and construction, marine and mechanical engineering, industrial building 
      projects, Oil & Gas construction and mining and mineral construction.

5.1.2 Mining
      This segment comprises Aveng Mining and operates in the open cut and underground mining sectors. Revenues 
      from this segment are derived from mining-related activities.

5.1.3 Other and Eliminations
      This segment comprises corporate services, Africa construction, corporate held investments, including 
      properties and consolidation eliminations.

      Included in the segment are several properties that are classified as Held for Sale - refer to note 10: 
      Assets and liabilities classified as Held for Sale. As these properties are separately identifiable 
      assets, the segment remains a continuing operation.

5.2   Discontinued operations
5.2.1 Construction and Engineering: South Africa and rest of Africa
      This segment includes: Aveng Grinaker-LTA and Aveng Capital Partners ("ACP"). Aveng Grinaker-LTA is 
      divided into the following business units: Aveng Grinaker-LTA Building and Coastal, Aveng Grinaker-LTA 
      Civil Engineering (including Rand Roads and GEL), Aveng Grinaker-LTA Mechanical & Electrical and Aveng Water.

      Revenues from this segment include the supply of expertise in a number of market sectors: power, mining, 
      infrastructure, commercial, retail, industrial, Oil & Gas, real estate and renewable concessions and investments.

5.2.2 Manufacturing and processing
      This segment comprises Aveng Manufacturing and Aveng Steel.

      The revenues from this segment comprise the supply of products, services and solutions to the mining, 
      construction, Oil & Gas, water, power and rail sectors across the Group's value chain locally and internationally.

      Aveng Manufacturing business units include Aveng Automation and Control Solutions ("ACS"), Aveng Dynamic 
      Fluid Control ("DFC"), Aveng Duraset, Aveng Infraset and Aveng Rail.

      Aveng Trident Steel is the only business unit in Aveng Steel.

5.  Segmental report continued
    Statement of financial position
                                                                  CONTINUING OPERATIONS     
                                           Construction and                                                             
                                         Engineering: Australasia                                        Other and           
                                               and Asia                       Mining                    Eliminations          
                                          2018     2017        %      2018     2017        %      2018      2017         %   
    Assets                                                                                                                   
    Goodwill arising on                                                                                                      
    consolidation                          100      100        -         -        -        -         -       232    (100,0)  
    Intangible assets                        -        -        -        24       28    (14,3)       23       148     (84,5)  
    Property, plant and equipment          409      602    (32,1)    2 598    2 539      2,3         3       306     (99,0)  
    Equity-accounted investments            31       52    (40,4)        1        4    (75,0)       16       319     (95,0)  
    Infrastructure investments               -        -        -         -        -        -       142       142         -   
    Deferred taxation                      644      551     16,9        14       47    (70,2)        8       530     (98,5)  
    Derivative instruments                   -        -        -         3        2     50,0         -         -         -   
    Amounts due from contract                                                                                                
    customers                            2 838    3 029     (6,3)      518      764    (32,2)      (46)     (287)     84,0   
    Inventories                             20        9   >100,0       235      211     11,4         -         -         -   
    Trade and other receivables             58       86    (32,6)       66       93    (29,0)       56       136     (58,8)  
    Taxation receivable                     20       10    100,0         7       25    (72,0)        2        15     (86,7)  
    Cash and bank balances               1 443    1 237     16,7       286      410    (30,2)     (336)     (393)     14,5   
    Assets Held for Sale                    99        -    100,0         -        -        -       224       118      89,8   
    Total assets                         5 662    5 676     (0,2)    3 752    4 123     (9,0)       92     1 266     (92,7)  
    Liabilities                                                                                                              
    Deferred taxation                       90        -    100,0       264      184     43,5      (382)      133   >(100,0)  
    Borrowings and other                                                                                                     
    liabilities                            204      921    (77,9)      200      317    (36,9)    2 883     1 824      58,1   
    Payables other than                                                                                                      
    contract-related                         -        -        -         -        -        -       146       154      (5,2)  
    Employee-related payables              320      298      7,4       116      187    (38,0)       65        80     (18,8)  
    Derivative instruments                   -        -        -         -        -        -         -         -         -   
    Trade and other payables             1 999    2 304    (13,2)      638      677     (5,8)      296       205      44,4   
    Amounts due to contract                                                                                                  
    customers                            1 098      854     28,6        42       85    (50,6)        -        17    (100,0)  
    Bank overdrafts                          -        -        -         -        -        -       315         -     100,0   
    Liabilities Held for Sale                -        -        -         -        -        -         -         -         -   
    Total liabilities                    3 711    4 377    (15,2)    1 260    1 450    (13,1)    3 323     2 413      37,7   

    Statement of financial position (continued)
                                              CONTINUING OPERATIONS                        DISCONTINUED OPERATIONS
                                                               Construction and      
                                                            Engineering: South Africa        Manufacturing
                                            Total               and rest of Africa           and Processing               Total              
                                     2018    2017        %     2018    2017        %    2018     2017        %    2018     2017        %    
    Assets                                                                                                                                  
    Goodwill arising on                                                                                          
    consolidation                     100     332    (69,9)       -       -        -       -       10   (100,0)      -       10   (100,0)   
    Intangible assets                  47     176    (73,3)       -       -        -       -       95   (100,0)      -       95   (100,0)   
    Property, plant and equipment   3 010   3 447    (12,7)       -     398   (100,0)      -      766   (100,0)      -    1 164   (100,0)   
    Equity-accounted investments       48     375    (87,2)      25     (40)  >100,0       -       (1)   100,0      25      (41)  >100,0    
    Infrastructure investments        142     142        -        -     123   (100,0)      -        -        -       -      123   (100,0)   
    Deferred taxation                 666   1 128    (41,0)      78     143    (45,5)      3       19    (84,2)     81      162    (50,0)   
    Derivative instruments              3       2     50,0        -       -        -       -        -        -       -        -        -    
    Amounts due from contract                                                                                    
    customers                       3 310   3 506     (5,6)       -     876   (100,0)      -       86   (100,0)      -      962   (100,0)   
    Inventories                       255     220     15,9        -      40   (100,0)      -    1 825   (100,0)      -    1 865   (100,0)   
    Trade and other receivables       180     315    (42,9)       -     112   (100,0)      -    1 413   (100,0)      -    1 525   (100,0)   
    Taxation receivable                29      50    (42,0)       1      12    (91,7)      9       (1)  >100,0      10       11     (9,1)   
    Cash and bank balances          1 393   1 254     11,1      474     237    100,0     524      505      3,8     998      742     34,5    
    Assets Held for Sale              323     118   >100,0    1 201       4   >100,0   3 249        -    100,0   4 450        4   >100,0    
    Total assets                    9 506  11 065    (14,1)   1 779   1 905     (6,6)  3 785    4 717    (19,8)  5 564    6 622    (16,0)   
    Liabilities                                                                                                                             
    Deferred taxation                 (28)    317  >(100,0)      13       -    100,0      64        2   >100,0      77        2   >100,0    
    Borrowings and other                                                                                         
    liabilities                     3 287   3 062      7,3        -       -        -       -        4   (100,0)      -        4   (100,0)   
    Payables other than                                                                                          
    contract-related                  146     154     (5,2)       -       -        -       -        -        -       -        -        -    
    Employee-related payables         501     565    (11,3)       -     173   (100,0)      -       75   (100,0)      -      248   (100,0)   
    Derivative instruments              -       -        -        -       -        -       -       17   (100,0)      -       17   (100,0)   
    Trade and other payables        2 933   3 186     (7,9)      25     966    (97,4)      -    1 757   (100,0)     25    2 723    (99,1)   
    Amounts due to contract                                                                                      
    customers                       1 140     956     19,2        -     394   (100,0)      -        1   (100,0)      -      395   (100,0)   
    Bank overdrafts                   315       -    100,0        -       -        -       -        -        -       -        -        -    
    Liabilities Held for Sale           -       -        -    1 605       -    100,0   2 475        -    100,0   4 080        -    100,0    
    Total liabilities               8 294   8 240      0,7    1 643   1 533      7,2   2 539    1 856     36,8   4 182    3 389     23,4  


    Statement of comprehensive earnings
                                                             CONTINUING OPERATIONS    
                                           Construction and                                                             
                                         Engineering: Australasia                                        Other and          
                                               and Asia                       Mining                    Eliminations        
                                          2018     2017        %      2018     2017        %      2018      2017         %  
    Revenue                             11 716    6 183     89,5     4 713    4 184     12,6       176      (723)   >100,0   
    Cost of sales                      (10 788)  (9 767)   (10,5)   (4 452)  (3 774)   (18,0)      117       237     (50,6)  
    Gross earnings / (loss)                928   (3 584)  >100,0       261      410    (36,3)      293      (486)   >100,0   
    Other earnings / (loss)                  7        9    (22,2)      (23)       6  >(100,0)        9        23     (61,6)  
    Operating expenses                    (827)    (810)    (2,1)     (227)    (197)   (15,1)     (272)     (214)    (27,1)  
    (Loss)/earnings from                                                                                                    
    equity-accounted investments            (5)      15  >(100,0)        -        -        -       (11)       (7)    (57,1)  
    Operating (loss) / profit              103   (4 370)  >100,0        11      219    (94,9)       19      (684)   >100,0    
    South African                                                                                                           
    government settlement                    -        -        -         -        -        -         -      (165)    100,0   
    Net operating (loss) / earnings        103   (4 370)  >100,0        11      219    (94,9)       19      (849)   >100,0   
    Impairment loss on                                                                                                      
    goodwill, intangible assets                                                                                             
    and property, plant                                                                                                     
    and equipment                            -        -        -       (55)       1  >(100,0)     (111)      (39)  >(100,0)  
    Impairment loss on                                                                                                      
    equity-accounted investments             -        -        -         -        -        -      (188)        -    (100,0)  
    Fair value adjustments                                                                                                  
    on properties and disposal                                                                                              
    groups classified as                                                                                                    
    Held for Sale                            -        -        -         -        -        -       (73)        -    (100,0)  
    Profit on sale of                                                                                                       
    property, plant and                                                                                                     
    equipment                               32        -    100,0         -        -        -         3         1    >100,0   
    (Loss) / profit before                                                                                                  
    financing transactions                 135   (4 370)  >100,0       (44)     220  >(100,0)     (350)     (887)     60,5   
    Net finance expenses                  (220)    (179)   (22,9)      (63)     (20) >(100,0)      (67)     (213)     68,5   
    (Loss) / earnings                                                                                                       
    before taxation                        (85)  (4 549)    98,1      (107)     200  >(100,0)     (417)   (1 100)     62,1   
    Taxation                               (36)    (209)    82,8      (116)     (90)   (28,9)     (289)     (490)     41,0   
    Loss for the period                   (121)  (4 758)    97,5      (223)     110  >(100,0)     (706)   (1 590)     55,6   
    Capital expenditure                    136      168    (19,0)      507      557     (9,0)        5         8     (37,5)  
    Depreciation                          (132)    (175)    24,6      (394)    (269)   (46,5)       (8)      (11)     27,3   
    Amortisation                             -        -        -        (4)      (1) >(100,0)      (16)      (15)     (6,7)  
    (Loss) / earnings before                                                                                                
    interest, taxation, depreciation                                                                                        
    and amortisation (EBITDA)              235   (4 195)   100,0       409      489    (16,4)       43      (823)   >100,0   

    Statement of comprehensive earnings (continued)
                                          CONTINUING OPERATIONS                           DISCONTINUED OPERATIONS                 
                                                                   Construction and
                                                                Engineering: South Africa         Manufacturing
                                                Total               and rest of Africa            and Processing                 Total
                                       2018      2017        %     2018    2017        %     2018     2017        %      2018     2017        %
    Revenue                          16 605     9 644     72,2    6 622   5 876     12,7    7 353    7 936     (7,3)   13 975   13 812      1,2    
    Cost of sales                   (15 123)  (13 304)   (13,7)  (6 660) (5 843)   (14,0)  (6 999)  (7 444)     6,0   (13 659) (13 287)    (2,8)   
    Gross earnings / (loss)           1 482    (3 660)  >100,0      (38)     33  >(100,0)     354      492    (28,0)      316      525    (39,8)   
    Other earnings / (loss)              (7)       38  >(100,0)      21      60    (65,0)      92      108    (14,8)      113      168    (32,7)   
    Operating expenses               (1 326)   (1 221)    (8,6)    (353)   (481)    26,5     (613)    (603)    (1,7)     (966)  (1 084)    10,9    
    (Loss)/earnings from                                                                                                                
    equity-accounted investments        (16)        8  >(100,0)       3      (4)  >100,0        -        -        -         3       (4)  >100,0    
    Operating (loss) / profit           133    (4 835)  >100,0     (367)   (392)     6,3     (167)      (3) >(100,0)     (534)    (395)   (35,3)    
    South African                                                                                                                       
    government settlement                 -      (165)   100,0        -       -        -        -        -        -         -        -        -    
    Net operating (loss) / earnings     133    (5 000)  >100,0     (367)   (392)     6,3     (167)      (3) >(100,0)     (534)    (395)   (35,3)   
    Impairment loss on                                                                                                                  
    goodwill, intangible assets                                                                                                         
    and property, plant                                                                                                                 
    and equipment                      (166)      (38) >(100,0)     (82)     33  >(100,0)  (1 050)    (273) >(100,0)   (1 132)    (240) >(100,0)   
    Impairment loss on                                                                                                                  
    equity-accounted investments       (188)        -   (100,0)      (7)      -   (100,0)       -        -        -        (7)       -   (100,0)   
    Fair value adjustments                                                                                                              
    on properties and disposal                                                                                                          
    groups classified as                                                                                                                
    Held for Sale                       (73)        -   (100,0)       -       -        -     (734)       -   (100,0)     (734)       -   (100,0)   
    Profit on sale of                                                                                                                   
    property, plant and                                                                                                                 
    equipment                            35         1   >100,0       11       -    100,0        1        3    (66,7)       12        3   >100,0    
    (Loss) / profit before                                                                                                              
    financing transactions             (259)   (5 037)    94,9     (445)   (359)   (24,0)  (1 950)    (273) >(100,0)   (2 395)    (632) >(100,0)   
    Net finance expenses               (350)     (412)    15,0      (12)     14  >(100,0)     (77)     (46)   (67,4)      (89)     (32) >(100,0)   
    (Loss) / earnings                                                                                                                   
    before taxation                    (609)   (5 449)    88,8     (457)   (345)   (32,5)  (2 027)    (319) >(100,0)   (2 484)    (664) >(100,0)   
    Taxation                           (441)     (789)    44,1      (37)     93  >(100,0)      52       70    (25,7)       15      163    (90,8)   
    Loss for the period              (1 050)   (6 238)    83,2     (494)   (252)   (96,0)  (1 975)    (249) >(100,0)   (2 469)    (501) >(100,0)   
    Capital expenditure                 648       733    (11,6)      49      80    (38,8)      89      142    (37,3)      138      222    (37,8)   
    Depreciation                       (534)     (455)   (17,4)     (62)    (69)    10,1      (70)    (102)    31,4      (132)    (171)    22,8    
    Amortisation                        (20)      (16)   (25,0)       -       -        -       (8)     (13)    38,5        (8)     (13)    38,5    
    (Loss) / earnings before                                                                                                            
    interest, taxation, depreciation                                                                                                    
    and amortisation (EBITDA)           687    (4 529)  >100,0     (305)   (323)     5,6      (89)     112  >(100,0)     (394)    (211)   (86,7)   


    The Group operates in six principal geographical areas:
                                                                                                     2018         2017    
                                                                           2018         2017      Capital      Capital    
                                                2018          2017      Segment      Segment       expen-       expen-    
                                             Revenue       Revenue       assets       assets       diture       diture     
                                                  Rm            Rm           Rm           Rm           Rm           Rm    
    South Africa                              16 754        15 281        9 349       11 172          554          684    
    Rest of Africa including Mauritius         1 910         1 717        1 071        1 157           95          102    
    Australia                                  6 817         1 193        2 148        2 751           59           94    
    New Zealand                                1 734         2 580          469          798           25           25    
    Southeast Asia                             2 602         2 427        1 833        1 631           52           49    
    Middle East and other regions                763           258          200          178            1            1    
                                              30 580        23 456       15 070       17 687          786          955    

6.  IMPAIRMENTS
    The Group performed its annual impairment test at 30 June 2018. The test involves the assessment of internal and 
    external qualitative factors for each cash-generating unit ("CGU") that may constitute an indicator of 
    impairment. The test may extend to individual assets in instances of underutilisation, obsolescence, 
    physical damage or material decline in the economic performance of the asset.

    As detailed in note 4: Discontinued operations, the Board made the decision that the operating groups of the 
    following reportable segments no longer form part of the overall long-term strategy of the Group:
    - Construction and Engineering: South Africa and rest of Africa; and
    - Manufacturing and Processing.

    The intention of the Board to discontinue the operations of these reportable segments and the subsequent 
    classification of the underlying assets and liabilities as Held for Sale are indicators of impairment - 
    refer to note 10: Assets and liabilities classified as Held for Sale.

    The following business units were deemed to be individual CGUs on which individual impairment assessments 
    were performed:
    Construction and Engineering: South Africa and rest of Africa
    - Aveng Water;                                         
    - Aveng Grinaker-LTA Building;                         
    - Aveng Grinaker-LTA Coastal;                          
    - Aveng Grinaker-LTA Civil Engineering;                
    - Aveng Grinaker-LTA GEL;                              
    - Aveng Grinaker-LTA Mechanical and Electrical; and
    - Aveng Grinaker-LTA Rand Roads.                     
                                                         
    Manufacturing and Processing                         
    - Aveng Trident Steel;                                 
    - Aveng Automation and Control Solutions ("ACS");      
    - Aveng Dynamic Fluid Control ("DFC");                 
    - Aveng Rail;                                          
    - Aveng Duraset; and                                   
    - Aveng Infraset.                                      

    Goodwill arising on consolidation
    A compulsory impairment assessment of goodwill allocated to the Aveng DFC and McConnell Dowell CGUs were 
    performed in the current year. The McConnell Dowell CGU falls under the Construction and Engineering: 
    Australasia and Asia reportable segment.

    Other individual assets in scope of IAS 36
    The outcome of the strategic review included the intention to dispose of certain non-core properties. 
    The intention to dispose of these properties, triggered an impairment assessment prior to classification 
    as Held for Sale. These affected properties are accounted for in the Other and Eliminations reportable segment.

    Centralised software systems managed at Corporate level are deemed corporate assets as defined by IAS 36 
    Impairment of assets. The components of the centralised systems attributable to the operating groups of 
    the above mentioned discontinued reportable segments were subject to an impairment assessment. The 
    centralised software systems are accounted for in the Other and Eliminations reportable segment.

    An impairment assessment was performed on plant and equipment accounted for in Aveng Moolmans. Aveng Moolmans 
    falls under the Mining reportable segment. The impairment assessment was triggered by the underutilisation 
    of these assets.

    Impairment charges were recognised on the Group's investments in Oakleaf Investment Holdings 86 Proprietary 
    Limited, Steeledale Proprietary Limited and Specialised Road Technologies Proprietary Limited. The total 
    impairment charge for the year in relation to equity-accounted investments amounted to R195 million.

    Determination of the recoverable amount
    CGUs of the Group and goodwill arising on consolidation
    Management determined the recoverable amounts of all CGUs within the Construction and Engineering: 
    South Africa and rest of Africa and Manufacturing and Processing segments to be the fair value less 
    cost of disposal.

    The CGU fair values were all categorised as level 3 per the IFRS 13 Fair Value Measurement hierarchy based 
    on the inputs used in the valuation techniques.

    The valuation techniques used to determine the fair values of the CGUs were:
    - The Enterprise Value EBITDA multiple method ("EV / EBITDA Multiple") (Market approach per IFRS 13 Fair 
      Value Measurement); and
    - The Discounted cash flow method ("DCF") (Income approach per IFRS 13 Fair Value Measurement).

    The fair value valuations were determined based on management's past experience, best estimates and the 
    assistance of an independent consultant. The cash flows incorporated in the valuation models were based 
    on the approved budgets for the 2019 financial year, as well as the forecasts until 2021, utilising the 
    following assumptions:

    - EV / EBITDA Multiple valuation method
      Risk adjusted peer average EBITDA multiples - The Group calculated the average peer EBITDA multiples of 
      local and international competitors adjusted for risks a market participant would incorporate in the 
      valuation. The range of the multiples applied in the CGU impairment assessments was between 1,2x 
      and 4,8x.

    - DCF valuation method
      Discount rate - The discount rate used in the DCF valuations is the weighted average cost of capital 
      ("WACC"). The WACC is based on a market-related peer average rate adjusted for entity-specific risks 
      a market participant would incorporate. The discount rate range of the CGU impairment assessments 
      was between 17,0% and 21,2%.
    
      Terminal value exit EBITDA multiple - The terminal value is calculated by multiplying the terminal 
      EBITDA (EBITDA as forecast for 2021) with the average peer EBITDA multiple of local and international 
      competitors adjusted for risks a market participant would incorporate. The range of the multiples 
      applied in the CGU impairment assessments was between 2,0x and 3,6x.
    
      Period of projection - The period of projection is impacted by the ability of management to forecast 
      cash flows in the future. Forecasting has been performed for a period of three years with a terminal 
      value exit EBITDA multiple applied to determine the terminal value.
    
      The cost of disposal, being the incremental costs directly attributable to the disposal of the CGU, 
      comprise primarily financial consulting costs, legal and audit fees. Management used their best estimate 
      in determining the cost of disposal for each CGU based on the complexity of the potential deal, the 
      deal valuation and the costs associated with similar transactions in the past.

    Sensitivity analysis
    The impact on the impairment losses recognised based on sensitivities applied to the assumptions of the 
    valuation methods are as follows:
                                                                                     Impact on current
    Assumption                                     Sensitivity applied               impairment charge    
    EV/EBITDA Multiple valuation method                                                                       
    Risk adjusted peer average EBITDA multiples    Increase multiple by 0,5x         R31 million decrease       
    Risk adjusted peer average EBITDA multiples    Decrease multiple by 0,5x         R33 million increase       

    DCF valuation method                                                                                      
    Discount rate                                  Increase by 100 basis points      R5 million increase        
    Discount rate                                  Decrease by 100 basis points      R3 million decrease        
    Terminal value exit EBITDA multiple            Increase multiple by 0,5x         R17 million decrease       
    Terminal value exit EBITDA multiple            Decrease multiple by 0,5x         R17 million increase       


    Other individual assets in scope of IAS 36
    The recoverable amounts of the properties assessed for impairment before classification as Held for Sale 
    were determined as the fair value less cost of disposal. The fair values of the properties were based 
    on the valuation reports compiled by an independent consultant and were based on the future rental cash 
    inflows valuation method. The valuation method incorporates the actual location, type and quality of the 
    properties supported by the terms of any existing lease, other contracts or current market rents for 
    similar properties. The fair values of the properties are all level 3 per the IFRS 13 Fair Value 
    Measurement hierarchy.

    The recoverable amounts of all other individual assets subject to impairment assessments have been 
    determined as zero.

6.1  Impairment of property, plant and equipment and intangible assets
     The total impairment losses for the year per CGU and individual assets are summarised as follows:
                                                                 Property, plant       Intangible     
                                                                   and equipment           assets    
                                                                              Rm               Rm    
     CGUs of the Group                                                                             
     Aveng Grinaker-LTA Civil Engineering                                     35                -    
     Aveng Grinaker-LTA GEL                                                    4                -    
     Aveng Grinaker-LTA Rand Roads                                            43                -    
     Aveng Trident Steel                                                     152                -    
     Aveng DFC                                                                44               56    
     Aveng Rail                                                               99                5    
     Aveng Duraset                                                            49               23    
     Aveng Infraset                                                          364               16    
     Other individual assets in scope of IAS 36                                                    
     Properties prior to classification as Held for Sale                      43                -    
     Corporate assets - Centralised software systems                           -               68    
     Aveng Moolmans - plant and equipment                                     55                -    
                                                                             888              168    

6.2  Impairment of goodwill arising on consolidation                                  
     The impairment assessment of the Aveng DFC CGU lead to the recognition of the following 
     impairment loss:                                  
                                                                                 Goodwill arising     
                                                                                 on consolidation    
                                                                                               Rm    
     CGUs of the Group                                                                             
     Aveng DFC                                                                                242    

     CGUs not impaired and not sensitive to impairment
     Goodwill arising on consolidation allocated to the McConnell Dowell CGU was subject to the mandatory 
     annual impairment assessment as required by IAS 36. The recoverable amount of the CGU, being the 
     value-in-use based on a discount rate of 12%, materially exceeded the carrying amount of the CGU and 
     hence no goodwill impairment loss was recognised in the current year. No goodwill impairment loss was 
     recognised in the prior year.

6.3  Impairments recognised during the year
                                                                            2018             2017    
                                                                              Rm               Rm    
     Goodwill arising on consolidation                                      (242)               -    
     Intangible assets                                                      (168)             (53)   
     Property, plant and equipment                                          (888)            (225)   
                                                                          (1 298)            (278)   

7.  HEADLINE LOSS
                                                                2018                      2017
                                                      Gross of        Net of      Gross of        Net of    
                                                      taxation      taxation      taxation      taxation    
                                                            Rm            Rm            Rm            Rm    
    Determination of headline loss                                                                          
    Loss for the period attributable to              
    equity holders of parent                                          (3 523)                     (6 708)   
    Impairment of goodwill                                 242           242                           -    
    Impairment of property, plant and equipment            888           661           225           221    
    Impairment of intangible assets                        168           168            53            53    
    Fair value adjustment on properties and disposal  
    groups classified as Held for Sale                     807           807             -             -    
    Gain on Steeledale transaction                           -             -            (2)           (2)   
    Profit on sale of property, plant and equipment        (47)          (34)          (14)          (13)   
    Headline loss*                                                    (1 679)                     (6 449)   
    * Headline loss is calculated in accordance with Circular 4 / 2018.

                                                                            2018             2017    
                                                                              Rm               Rm    
8.  DEFERRED TAXATION                                                                                
    Reconciliation of deferred taxation asset                                                        
    At the beginning of the year                                           1 290            1 858    
    Recognised in earnings or loss - current year                           (373)            (433)   
    Recognised in earnings or loss - adjustment for prior year                 9              (38)   
    Effect of change in foreign tax rate                                      (2)               -    
    Foreign currency translation movement                                      3              (85)   
    Reallocation from deferred taxation liability*                          (180)             (10)   
    Disposal of subsidiary                                                     -               (2)   
                                                                             747            1 290    
    Reconciliation of deferred taxation liability                                                    
    At the beginning of the year                                            (319)            (266)   
    Recognised in earnings or loss - current year                             89              (77)   
    Recognised in earnings or loss - adjustment for prior year                 -               13    
    Reallocation to deferred taxation asset*                                 180               10    
    Foreign currency translation movement                                      1                1    
                                                                             (49)            (319)   
    Deferred taxation asset balance at the year end comprises                                        
    Accelerated capital allowances                                          (205)            (229)   
    Provisions                                                               136              256    
    Contracts                                                                136               51    
    Other                                                                   (227)              44    
    Assessed losses carried forward                                          907            1 168    
                                                                             747            1 290    
    Deferred taxation liability balance at the year end comprises                                    
    Accelerated capital allowances                                           (10)            (418)   
    Provisions                                                                 -               17    
    Contracts                                                                  -               (4)   
    Other                                                                     (8)             (85)   
    Convertible bond                                                         (32)             (62)   
    Assessed losses carried forward                                            1              233    
                                                                             (49)            (319)   
    * The reclassifications of deferred tax liabilities to deferred tax assets are as a results of the changes
      in deferred tax positions of the underlying assets and liabilities.                              

    The Group's results include a number of legal statutory entities within a number of taxation jurisdictions.

    As at June 2018 the Group had unused taxation losses of R12 830 million (2017: R13 201 million) available 
    for offset against future profits. A deferred taxation asset has been recognised in respect of R3 107 million 
    (2017: R4 949 million) of such losses. No deferred taxation asset has been recognised in respect of the 
    remaining R9 724 million (2017: R8 252 million) due to the uncertainty of future taxable profits in the 
    related legal entities.

    Unused tax losses
    The Group performed a five-year forecast for the financial years 2019 to 2023, which is the key evidence 
    that supports the recognition of deferred taxation assets. The forecast specifically focused on Aveng 
    Africa Proprietary Limited and Aveng Australia Holdings.

    In addition, in terms of the strategic review the Group is making good progress in positioning Aveng for 
    future profitability, including considerable restructuring and right sizing of the business in line with 
    current market conditions. Attention has been given to the commercial and risk management processes and 
    pre-tender assessments. This will enhance margins in the foreseeable future.

                                                                            2018             2017     
                                                                              Rm               Rm    
9.  AMOUNTS DUE FROM / (TO) CONTRACT CUSTOMERS                                                       
    Uncertified claims and variations (underclaims)*1                      1 646            1 760    
    Contract contingencies                                                  (490)            (701)   
    Progress billings received (including overclaims)2                    (1 404)          (1 205)   
    Uncertified claims and variations less progress billings received       (248)            (146)   
    Contract receivables3                                                  2 602            3 262    
    Provision for contract receivables                                        (2)              (2)   
    Retention receivables4                                                   208              149    
                                                                           2 560            3 263    
    Amounts received in advance5                                             (85)            (146)   
                                                                           2 475            3 117    
    Classified as Held for Sale - transferred out (net)                     (305)               -    
    Net amounts due from contract customers                                2 170            3 117    
    Disclosed on the statement of financial position as follows:                                     
    Uncertified claims and variations*                                     1 646            1 760    
    Contract contingencies                                                  (490)            (701)   
    Contract and retention receivables                                     2 810            3 411    
    Provision for contract receivables                                        (2)              (2)   
    Classified as Held for Sale - transferred out                           (654)               -    
    Amounts due from contract customers                                    3 310            4 468    
    Progress billings received                                            (1 404)          (1 205)   
    Amounts received in advance                                              (85)            (146)   
    Classified as Held for Sale - transferred out                            349                -    
    Amounts due to contract customers                                     (1 140)          (1 351)   
    Net amounts due from contract customers                                2 170            3 117    
    * Provisions have been netted off against uncertified claims and variations.

    Included in amounts due from contract customers are non-current amounts of R661 million 
    (2017: R756 million).

    Amounts due from contract customers include R942 million (2017: R908 million) which is subject to 
    protracted legal proceedings.                              
    1 Includes revenue not yet certified - recognised based on percentage of completion / measurement and 
      agreed variations, less provisions and deferred contract costs.
    2 Progress billings are amounts billed for work performed above revenue recognised.
    3 Amounts invoiced still due from customers.
    4 Retentions are amounts invoiced but not paid until the conditions specified in the contract are  
      fulfilled or until defects have been rectified. These conditions are anticipated to be fulfilled  
      within the following 12 months.
    5 Advances are amounts received from the customer before the related work is performed.

10. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
    As disclosed in note 4: Discontinued operations, the outcome of the strategic review lead to the Board's 
    decision to exclude the following reportable segments from the Group's long-term strategy:
    - Construction and Engineering: South Africa and rest of Africa; and
    - Manufacturing and Processing.

    These non-core reporting segments are presented as separately identifiable disposal groups and are 
    disclosed as discontinued operations in the Group's Statement of comprehensive earnings (refer to 
    note 4: Discontinued operations and note 5: Segmental Report). As the disposals are expected to occur 
    within the next 12 months, the assets and liabilities were classified as Held for Sale. The proceeds from 
    the disposals are expected to equal the net carrying amounts.

    The assets and liabilities of the disposal groups were allocated to their cash-generating units ("CGUs") 
    and subject to an impairment assessment prior to classification as Held for Sale. The recoverable amounts 
    of all the CGUs were assessed as the fair values less cost of disposal (refer to note 6: Impairments). 
    The carrying amounts of some of the assets in relation to the Manufacturing and Processing disposal group, 
    exceeded their fair values less cost of disposal after being classified as Held for Sale. An adjustment was 
    recognised to present these assets at their fair values less cost of disposal.

    Individual properties accounted for under the Other and Eliminations reportable segment were classified 
    as Held for Sale during the current year. The carrying amounts of some of these properties exceeded their 
    fair values less cost of disposal prior to being classified as Held for Sale leading to the recognition of 
    impairment losses, refer to note 6: Impairments for further details regarding disclosures in terms of 
    IFRS 13 Fair Value Measurement.

    A single vessel, being a self-elevating barge used on projects in Singapore and accounted for in the 
    Construction and Engineering: Australasia and Asia reportable segment, was deemed to be surplus to the 
    operational requirements of the entity and subsequently advertised and classified as Held for Sale. Offers 
    are being sought from interested parties via specialist brokers of marine vessels. The disposal of the 
    asset is expected within the next 12 months. The recoverable amount of the asset has been assessed and 
    exceeds its carrying amount.

    The process relating to the disposal of the Vanderbijlpark property has extended beyond 12 months from 
    classification as Held for Sale. A reassessment of the asset's fair value less cost of disposal was 
    performed at year end. An external valuation was performed on the property and a fair value adjustment 
    of R73 million was recognised in order to present and disclose the asset at its fair value less cost of 
    disposal. The extension of the property's classification as Held for Sale beyond 12 months is supported 
    by its disposal to an external party after year end. The valuation of the property was performed by an 
    independent consultant and based on the future rental cash inflows valuation method. The valuation method 
    incorporates the actual location, type and quality of the property supported by the terms of any existing 
    lease, other contracts or current market rents for similar properties. The fair value of the property was 
    assessed as level 3 per the IFRS 13 Fair Value Measurement hierarchy.

10. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE continued
                                                                            2018             2017    
                                                                              Rm               Rm    
    Assets Held for Sale                                                   4 773              122    
    Liabilities Held for Sale                                             (4 080)               -    
                                                                             693              122    
    Movement during the year                                                                         
    Opening balance                                                          122            1 237    
    Transferred from / (to):                                                                         
    Non-current assets                                                       874              (39)   
    Current assets                                                         3 850              (75)   
    Non-current liabilities                                                  (65)               -    
    Current liabilities                                                   (3 281)             181    
    Disposals of:                                                                                    
    Assets-held-for sale                                                       -           (1 248)   
    Liabilities Held for Sale                                                  -               66    
    Adjustment to fair value less cost of disposal*                         (807)               -    
    Net assets Held for Sale                                                 693              122    
    *No impact on other comprehensive income in the current year.                                

    As at 30 June 2018, the disposal groups and individual assets classified as Held for Sale were stated 
    at fair value less costs to sell and comprised of the following:
                                                                          2018
                                                                                                           Construction                
                           Construction                                                                             and                
                                    and                                                                    Engineering:                
                           Engineering:                                                                     Australasia                
                           South Africa   Manufacturing                                                             and               
                           and the rest             and                                                          Asia -                
                            of Africa -    Processing -                                                          Marine                
                               Disposal        Disposal     Properties -   Properties -   Properties -           vessel                
                                  group           group   Vanderbijlpark       Jet Park          Other    Held for Sale      Total    
                                     Rm              Rm               Rm             Rm             Rm               Rm         Rm    
    ASSETS                                                                                                                          
    Non-current assets                                                                                                              
    Intangible assets                 -              51                -              -              -                -         51    
    Property, plant        
    and equipment                   282             110               43            128             53               99        715    
    Equity-accounted       
    investments*                     32               -                -              -              -                -         32    
    Infrastructure         
    investments                     125               -                -              -              -                -        125    
                                    439             161               43            128             53               99        923    
    Current assets                                                                                                                  
    Inventories                      44           1 746                -              -              -                -      1 790    
    Derivative instruments            -               6                -              -              -                -          6    
    Amounts due from       
    contract customers              618              36                -              -              -                -        654    
    Trade and other        
    receivables                     100           1 300                -              -              -                -      1 400    
                                    762           3 088                -              -              -                -      3 850    
    TOTAL ASSETS                  1 201           3 249               43            128             53               99      4 773    

                                                                          2018
                                                                                                           Construction                
                           Construction                                                                             and                
                                    and                                                                    Engineering:                
                           Engineering:                                                                     Australasia                
                           South Africa   Manufacturing                                                             and               
                           and the rest             and                                                          Asia -                
                            of Africa -    Processing -                                                          Marine                
                               Disposal        Disposal     Properties -   Properties -   Properties -           vessel                
                                  group           group   Vanderbijlpark       Jet Park          Other    Held for Sale      Total    
                                     Rm              Rm               Rm             Rm             Rm               Rm         Rm     
    LIABILITIES
    Non-current liabilities
    Borrowings and                
    other liabilities                 -              12                -              -              -                -         12    
    Employee-related payables        46               7                -              -              -                -         53    
                                     46              19                -              -              -                -         65    
    Current liabilities                                                                                                             
    Amounts due to                                                                                         
    contract customers              347               2                -              -              -                -        349    
    Borrowings and other                                                                                   
    liabilities                       -              10                -              -              -                -         10    
    Employee-related payables       100              59                -              -              -                -        159    
    Trade and other payables      1 112           1 651                -              -              -                -      2 763    
                                  1 559           1 722                -              -              -                -      3 281    
    Provision for                                                                                          
    unallocated fair value                                                                                 
    adjustments                       -             734                -              -              -                -        734    
    TOTAL LIABILITIES             1 605           2 475                -              -              -                -      4 080    
    Net assets Held for Sale       (404)            774               43            128             53               99        693    
    * The investment in Oakleaf Investment Holdings 86 Proprietary Limited classified as Held for Sale is disclosed 
      and presented under the Construction and Engineering: South Africa and the rest of Africa reporting segment 
      disposal group as it forms part of the Aveng Capital Partners investment portfolio.

                                                                            2018             2017    
                                                                              Rm               Rm    
11. BORROWINGS AND OTHER LIABILITIES                                                                 
    Borrowings held at amortised cost comprise                                                       
    Total borrowings as at year end                                        3 309            3 066    
    Classified as Held for Sale - transferred out                            (22)               -    
                                                                           3 287            3 066    
    Interest bearing borrowings comprise:                                                            
    Payment profile                                                                                  
    - within one year                                                        599            1 121    
    - between two to five years                                            2 688            1 945    
                                                                           3 287            3 066    
    Interest rate structure                                                                          
    Fixed and variable (interest rates)                                                              
    Fixed - long-term                                                      1 946            1 901    
    Fixed - short-term                                                       305              348    
    Variable - long-term                                                     742               48    
    Variable - short-term                                                    294              769    
                                                                           3 287            3 066    

    Description                  Terms                          Rate of interest      2018       2017     
                                                                                        Rm         Rm    
    Convertible bond             Interest coupon is payable      Coupon of 7,25%     1 929      1 823
    of R2 billion                bi-annually until              
                                 July 2019                      
                                                                
    Revolving credit facility    Repayable June 2020            JIBAR plus 3,00%       700          -    
                                                                        to 5,75%                          
                                                                
    Short-term facility          Settled September 2017           Bank bill swap         -        101    
    of AUD10 million****                                         rate plus 0,70%                          
                                                                
    Short-term facility          Settled September 2017      Bank bill swap rate         -        603    
    of AUD60 million***                                               plus 2,20%                          
                                                                
    Super senior liquidity       Repayable February 2019     South African Prime       255          -    
    facility                                                       plus 2,50% to                           
                                                                           5,50%                          
                                                                
    Short-term facility of       Repayable July 2018         Fixed interest rate        62          -    
    AUD6 million                                                        of 4,63%                          
                                                                
    Term loan facility           Monthly instalments         Fixed interest rate        48         66    
    denominated in ZAR           ending April 2021                     of 10,58%      

    Finance lease facility       Monthly instalments         Fixed interest rate       118        145   
    of AUD 12 million*           ending November 2020                    of 4,5%     

    Finance sale and lease       Settled December 2017         Fixed interest of         -         24
    back amounting to                                             5,15% to 6,08%
    AUD2 million*

11.1 Borrowings held at amortised cost continued
     Description                 Terms                          Rate of interest      2018       2017     
                                                                                        Rm         Rm    
     Hire purchase               Monthly instalments              Fixed interest        24         42 
     agreements amounting        ending November 2023             of 1,35% to 7%
     to AUD2 million*               

     Hire purchase               Settled August 2017         Fixed interest rate         -          5
     agreement amounting                                                of 6,81%        
     to AUD0,5 million*             

     Hire purchase               Settled September 2017      Fixed interest rate         -         44
     agreement denominated                                     of 4,58% to 4,65%
     in USD*                         

     Hire purchase               Settled December 2017             South African         -         16 
     agreement denominated                                      prime less 2,00%
     in ZAR*                         

     Hire purchase               Settled November 2017             South African         -         21 
     agreement denominated                                      prime plus 2,00% 
     in ZAR*                        

     Hire purchase               Monthly instalments               South African        29         51
     agreement denominated       ending November 2019           prime less 1,70%    
     in ZAR*                                                                        
                                                                                    
     Hire purchase               Settled in May 2018         Fixed interest rate         -         24
     agreement denominated                                              of 9,70%    
     in ZAR*                                                                        
                                                                                    
     Finance lease               Monthly instalments               South African         2          4 
     facility denominated        ending December 2018                      prime    
     in ZAR*                                                                        
                                                                                    
     Hire purchase               Monthly instalments         Fixed interest rate        63         74 
     facility denominated        ending August 2021                     of 6,68%    
     in USD*                                                                        
                                                                                    
     Finance lease               Monthly instalments               South African        19         20
     facilities denominated      ending August 2022                        prime    
     in ZAR*                                                                        
                                                                                    
     Hire purchase               Monthly instalments               South African        18          -
     agreement denominated       ending August 2020             prime plus 0,50%             
     in ZAR*                                                                        
                                                                                    
     Hire purchase               Monthly instalments         Fixed interest rate         5          -
     agreement denominated       ending September 2018                 of 12,50%    
     in ZAR*                                                                        
                                                                                    
     Hire purchase               Monthly instalments         South African prime        32          - 
     agreement denominated       ending August 2020                   plus 3,00%
     in ZAR*                                            

     Interest-bearing borrowings                                                     3 304      3 063    
     Interest outstanding on interest-bearing borrowings**                               5          3    
     Classified as Held for Sale - transferred out                                     (22)         -    
     Total interest-bearing borrowings                                               3 287      3 066    

     *    These borrowings and other liabilities are finance leases.
     **   Interest outstanding in the current year relates to finance leases.
     ***  Backed by a bank guarantee.
     **** Secured by cash collateral in South Africa.

     Subsequent to year end, the Group entered into two lending facility agreements (refer to note 15: 
     Events after reporting period and pending transactions) comprising:
     - A revolving credit facility of R253 million repayable on 30 September 2020 with an implied 
       interest rate of 13,99%; and
     - A term loan facility of R207 million repayable on 30 June 2020 at an interest rate of JIBAR plus 5,02%.

11.2 Borrowings held at amortised cost continued
                                                                                       2018       2017     
                                                                                         Rm         Rm    
     Finance lease liabilities are payable as follows*:                                                   
     Minimum lease payments due                                                                           
     - within one year                                                                  149        206    
     - in two to five years                                                             191        184    
     Less: future finance charges                                                       (25)       (38)   
     Present value of minimum lease payments                                            315        352    
     * Includes finance lease liabilities of R22 million classified as Held for Sale.

     The Construction and Engineering: Australasia and Asia operating segment enters into asset-based 
     finance arrangements to fund the acquisition of various items of plant and machinery.

     The total asset-based finance facilities amounted to AUD21 million (2017: AUD6 million). The amount 
     outstanding on these facilities as at year end was AUD14 million (2017: AUD3 million) and is equivalent 
     to R142 million (2017: R31 million). These asset-based arrangements were secured by plant and equipment 
     with a net carrying amount of R75 million (2017: R52 million).

     The Mining operating segment entered into various asset-based finance lease agreements to purchase 
     operating equipment denominated both in USD and ZAR. These arrangements are secured by the assets for 
     which the funding was provided and are repayable in monthly and quarterly instalments with the final 
     repayment to be made in August 2022. The total amount outstanding on these facilities amounted to 
     R133 million (2017: R317 million).Equipment with a net carrying amount of R231 million 
     (2017: R494 million) has been pledged as security for the facility.

     The Mining and Manufacturing and Processing operating segments entered into various vehicle lease 
     arrangements. Equipment with the net carrying amount of R20 million (2017: R3 million) has been pledged 
     as security.

11.3 Convertible bonds                                                                                    
                                                                               Convertible                
                                                                Convertible           bond                
                                                                       bond         equity                
                                                                  liability        reserve       Total     
                                                                         Rm             Rm          Rm    
     2018                                                                                                 
     Opening balance                                                  1 823            268       2 091    
     Coupon bi-annual payment                                          (145)             -        (145)   
     Interest determined with the effective interest rate*              251              -         251    
     Accrual of coupon interest for convertible bond                    145              -         145    
     Unwinding of liability owing to:                                                                     
     - Transaction costs capitalised                                      9              -           9    
     - Effect of fair value adjustment of derivative liability            8              -           8    
     - Effect of fair value of conversion option                         89              -          89    
                                                                      1 929            268       2 197    
     2017                                                                                                 
     Opening balance                                                  1 731            268       1 999    
     Coupon bi-annual payment                                          (145)             -        (145)   
     Interest determined with the effective interest rate*              237              -         237    
     Accrual of coupon interest for convertible bond                    145              -         145    
     - Transaction costs capitalised                                      8              -           8    
     - Effect of fair value adjustment of derivative liability            6              -           6    
     - Effect of fair value of conversion option                         78              -          78    
                                                                      1 823            268       2 091    
     * Interest on convertible bond.                                                                       

     During July 2014, the Company issued convertible bonds denominated in South African Rand with a nominal 
     value of R2 billion and a coupon of 7,25%. Interest is payable bi-annually for a period of five years 
     with the bond repayment date being five years from issue date at par plus interest. The effective 
     interest rate associated with the convertible bond liability is 13,6%.

     Refer to note 15: Events after the reporting period and pending transactions for detail regarding the 
     early redemption of the convertible bonds.

                                                                                      2018         2017     
                                                                                        Rm           Rm    
12. TAXATION                                                                                               
    Major components of the taxation expense                                                               
    Current                                                                                                
    Local income taxation - current period                                               1           42    
    Local income taxation - recognised in current                          
    taxation for prior periods                                                          (1)          21    
    Foreign income taxation or withholding                                 
    taxation - current period                                                          141           30    
    Foreign income taxation or withholding taxation -                      
    recognised in the current taxation for prior periods                                 9           (2)   
                                                                                       150           91    
    Deferred                                                                                               
    Deferred taxation - current period                                                 283          510    
    Deferred taxation - arising from prior period adjustments                           (9)          25    
    Deferred taxation - foreign tax rate change                                          2            -    
                                                                                       276          535    
                                                                                       426          626    
                                                                                                           
                                                                                      2018         2017     
                                                                                         %            %    
    Reconciliation of the taxation expense                                                                 
    Effective taxation rate on earnings                                              (13,8)       (10,2)    
    Exempt income and capital profits                                                 (0,8)         0,1    
    Deferred taxation asset not recognised                                            25,1         37,6    
    Disallowable charges*                                                             17,8          1,7    
    Prior year adjustment                                                              0,0          0,3    
    Foreign tax rate differential and other                                           (0,3)        (1,6)    
    Withholding taxation                                                               0,0          0,1    
                                                                                      28,0         28,0    
    * This relates mainly to the impact of the impairments of goodwill which is treated as a non-deductible 
      expense.

    South African income taxation is calculated at 28% (2017: 28%) of the taxable income for the year. 
    Taxation in other jurisdictions is calculated at the prevailing rates.
                                                                                                           
                                                                                      2018         2017     
                                                                                        Rm           Rm    
13. NON-CASH AND OTHER MOVEMENTS                                                                           
    Earnings from disposal of property, plant, equipment and vehicles                 (129)        (147)   
    Gain on Steeledale transaction                                                       -           (2)   
    Impairment loss on goodwill, intangible assets and property,               
    plant and equipment                                                              1 298          278    
    Impairment loss on equity-accounted investments                                    195            -    
    Fair value adjustment on properties and disposal groups                    
    classified as Held for Sale                                                        807            -    
    Unrealised foreign exchange losses on borrowings and other liabilities               3            -    
    Other fair value adjustments                                                         -          (56)   
    Movements in foreign currency translation                                          (11)        (562)   
    Movement in equity-settled share-based payment reserve                               8           12    
    Other non-cash items                                                                 6            -    
    Claims write-down                                                                    -        4 967    
                                                                                     2 177        4 490    

14. CONTINGENT LIABILITIES
    Contingent liabilities at the reporting date, not otherwise 
    provided for in the consolidated financial statements, arise 
    from performance bonds and guarantees issued in:
    South Africa and rest of Africa                                                                        
    Guarantees and bonds (ZARm)                                                      2 155        3 014    
    Parent company guarantees (ZARm)                                                   509          507    
                                                                                     2 664        3 521    
    Australasia and Asia                                                                                   
    Guarantees and bonds (AUDm)                                                        287          326    
    Parent company guarantees (AUDm)                                                   337          588    
                                                                                       624          914    

    Claims and legal disputes in the ordinary course of business
    The Group is, from time to time, involved in various claims and legal proceedings arising in the 
    ordinary course of business. The Board does not believe that adverse decisions in any pending proceedings 
    or claims against the Group will have a material adverse effect on the financial position or future 
    operations of the Group. Provision is made for all liabilities which are expected to materialise and 
    contingent liabilities are disclosed when the outflows are probable.

    Contingent assets
    In the prior period, a counterclaim against the Group was awarded to Kenmare Resources to the value 
    of R150 million for Professional Indemnity insurance. The Group has lodged a claim against the insurer 
    to recover this amount.

15. EVENTS AFTER THE REPORTING PERIOD AND PENDING TRANSACTIONS
    The directors are not aware of any other significant matter or circumstance arising after the reporting 
    period up to the date of this report except as stated below:

15.1 Liquidity, solvency, ongoing funding, rights issue, early redemption of convertible bond, and the 
     going concern assertion
     As included in the director's report, and further detailed below, in determining the appropriate basis 
     of preparation of the financial statements, the directors are required to consider whether the Group 
     can continue in operational existence for the foreseeable future. The directors have considered the 
     agreements reached and transactions executed post the year end, the actions taken by the Group, the 
     financial plans and forecasts, including all available information, and are therefore of the opinion 
     that the going concern assumption is appropriate in the preparation of the financial statements. 
     In forming the conclusion, the directors have considered the following:
             
     Funding from South African funding banks
     The Group continuously engages with its major funding banks who currently provide various facilities 
     to the Group under existing agreements. Refer to note 11: Borrowings and other liabilities. After the 
     year end, the Group concluded a revised Common Terms Agreement with its South African lending banks. 
     Through this process the following were negotiated:
     - Renewed facilities including additional funding of R400 million and extended funding terms to 2020;
     - The profile for the repayment of capital in specific tranches takes into account the anticipated 
       timing of receipts from disposal of non-core assets per the strategic review; and
     - Ongoing compliance with financial covenants including an EBITDA covenant, and a liquidity 
       headroom covenant. 

15.2 Rights offer to qualifying shareholders 
     The Group undertook a renounceable rights offer to raise up to R500 million, qualifying shareholders. 
     The rights offer consisted of 5 000 000 000 rights offer shares in the ratio of 1 199.98772 rights 
     offer shares for every 100 Aveng ordinary shares held at the close of trade on 15 June 2018 and at a 
     price of R0,10 per rights offer share. The total number of rights offer shares subscribed for and 
     excess allocations applied for was 4 931 854 395 rights offer shares, representing 98,6% of the 
     rights offer. An aggregate amount of R493,2 million was raised.

     The rights offer shares subscribed for were issued on 2 July 2018, with excess allocation shares issued 
     on 4 July 2018.

15.3 Early bond redemption of convertible bond
     In terms of the strategic review, the debt levels within the Group were considered to be unsustainable, 
     in particular the convertible bonds which created significant constraints on the Group's liquidity 
     position. The Group redeemed the existing convertible bond on 25 September 2018 through the execution 
     of the following:
     - On 3 July 2018, the bondholders agreed to the capitalisation of interest on the bonds and voted to 
       accept the terms of the early bond redemption on 30 August 2018;
     - On 10 September 2018, the Group's shareholders passed the required resolutions giving effect to 
       the specific issue of shares at R0,10 per share, equivalent to the rights offer price, to settle 
       the convertible bonds;
     - On 17 September 2018, a specific buyback of R657 million of the existing convertible bonds at 70% 
       of the principal amount (a 30% discount) was completed;
     - The buyback was funded by a new debt instrument of R460 million, the terms of which will rank pari 
       passu with the bank debt (excluding Super Senior Facilities) under the revised Common Terms Agreement;
     - The remaining R1,4 billion bonds were settled through the specific issue of ordinary shares at 
       R0,10 per share on 25 September 2018;
     - The Group's gross debt:equity ratio improved to 40% following this transaction.

15.4 Continued disposal of non-core assets
     The strategic review identified the non-core business and assets to be sold to improve liquidity. 
     The Group announced on 2 August 2018 that it had entered into agreements to sell its Jet Park and 
     Vanderbijlpark properties for R254 million.

     Jet Park property
     The Group has entered into a binding term sheet on 2 August 2018 for the sale of its Jet Park 
     offices located in Boksburg to Equites Property Fund Limited for R211,2 million (net of commission). 
     The Group will enter into a triple net lease on the property for a maximum of 24 months, but with the 
     ability for the Group to terminate the lease with three months' notice and market related monthly rental 
     of R1,1 million, subject to an annual escalation of 8%. This sale is only subject to shareholder approval.

     Vanderbijlpark property
     The Group has accepted an offer of R42,6 million from Stodasat (Proprietary) Limited for the Vanderbijlpark 
     property following an auction process. The transfer is expected to be completed by 30 November 2018, 
     subject to the conveyancing process.

     The disposal process for the balance of the non-core businesses and assets remains an overriding priority 
     in the achievement of the strategic plan and significant interest from credible buyers has been received. 
     For most of businesses identified for sale, progress has been made ranging from expressions of interest, 
     through to non-binding offers.


COMMENTARY

RESULTS FOR THE YEAR ENDED 30 JUNE 2018 AND STRATEGIC REVIEW UPDATE 

SALIENT FEATURES
- Sustainable capital structure achieved                
  - R493 million rights issue completed            
  - Early redemption of R2 billion convertible bond    
  - Bank debt renegotiated and termed out to 2020    
  - Gross debt / equity improved to 40%            
  - Overall net cash position achieved             
- Liquidity improved and stabilised                     
- Non-core asset sales of R254 million announced        
- McConnell Dowell performance on track

IDENTIFYING AND ADDRESSING THE CHALLENGES 
Over the past few years, Aveng has been faced with significant challenges, all of which have had a negative 
impact on the Group's financial performance including:
- Simultaneous reduced demand in most of its sectors, particularly reduced investment in infrastructure 
  development, mining and rail in South Africa;
- Operational underperformance;
- Associated poor cash-flow generation, which left the Group with liquidity challenges and an unsustainable 
  debt burden; and
- Impairments and write-downs of previously uncertified revenue.

In September 2017, the Group was facing a perfect storm including funding constraints, ongoing losses and
a significant impairment of over valued uncertified revenue claims due to a difficult environment for 
settlements. After a change in leadership the Group announced that it was embarking on an extensive strategic 
review to ensure a sustainable future for Aveng. This review was completed and announced in February 2018 
following a thorough and robust interrogation of all parts of the business.
 
The outcome of the review was the adoption by the Board of a new and focused strategy to be an international
infrastructure and resources group operating in selected fast-growing markets, capitalising on its considerable 
knowledge and experience. This resulted in identifying the businesses and assets that support its overall 
long-term strategy and therefore will be core to the Group. The Board focused on ensuring acceptable returns 
for the providers of capital and a sustainable future for employees, customers, suppliers and other stakeholders. 
It approved the most appropriate operating structure and recommended a sustainable future capital and funding model. 

DEVELOPING A PLAN OF ACTION
The aim of the strategic action plan, which was developed from the strategic review, is to create a robust and
sustainable Group. Since February 2018, the implementation of the strategic action plan has focused on:
- Ensuring a long-term sustainable capital structure for the Group;
- Creating liquidity through the sale of non-core businesses and assets; and
- Unlocking value from Aveng's core businesses. 

Ensuring a sustainable capital structure 
One of the key initiatives in the strategic action plan was to finalise a set of capital market transactions that
would ensure a long-term, sustainable capital structure for the Group. This included raising new capital and settling 
the existing convertible bonds before their July 2019 maturity date. A significant amount of work has been done since 
February 2018 to achieve this goal, strengthening Aveng's balance sheet and creating a platform for the Group to 
implement the strategic action plan.

The successful rights offer concluded on 4 July 2018 raised R493 million of new capital from shareholders and
indicated strong shareholder support for Aveng's strategy.

Aveng's R2 billion of convertible bonds were placing significant constraints on the Group's capital structure, making
it increasingly difficult to operate, which is why Aveng was intent on the early redemption from the July 2019 date. 

Aveng bondholders voted to accept the terms of the early bond redemption on 30 August 2018 and, on 10 September 2018,
shareholders passed the resolutions giving effect to the specific issue of shares at R0,10, equivalent to the rights
offer price, to settle the convertible bonds. This included the Company's largest single shareholder Aton, who engaged 
with the Company in a positive manner and expressed their support for Aveng's continued independent future.

In terms of the early bond redemption, Aveng capitalised R96 million of interest costs and bought back R657 million of
the existing convertible bonds at 70% of the principal amount (at a 30% discount). This was done to ensure that no
individual shareholder would own a shareholding in Aveng that was more than the prescribed limits. The specific bond 
buyback was funded by a new debt instrument of R460 million. The remaining R1,4 billion bonds were settled through 
the specific issue of Aveng shares on 25 September 2018. 

The early bond redemption has removed a net R1,5 billion of debt from the balance sheet and together with the related
interest burden, bringing Aveng's debt to a more sustainable level and significantly de-risking the business.

Aveng has concluded a revised Common Terms Agreement with its South African lending banks. Through this process, Aveng
negotiated renewed facilities, obtained additional funding of R400 million to improve the liquidity position and
extended the funding terms to 2020. These renegotiated terms have removed some of the immediate pressures on liquidity 
and provided certainty as to the availability of ongoing banking facilities. 

An improved liquidity forecasting and management process is now fully operational and firmly embedded across all of
Aveng's South African businesses. The process has resulted in better control of cash, bank facilities and working capital
as well as improved accuracy of cash flow forecasting. 

Progressive further improvement of the quality of the Group's balance sheet throughout the implementation of the
strategic action plan remains vitally important to providing all stakeholders with the assurance that they are dealing 
with a sustainable partner.

The Directors of Aveng believe that the Aveng Group remains a going concern based on post-year end developments,
including the conclusion of the revised Common Terms Agreement with its South African lending banks, the early 
redemption of the convertible bond, the successful rights issue as well as the status of disposals of non-core 
assets and other initiatives already embarked on by the Group.

Creating liquidity through the sale of non-core assets
In parallel with the capital markets transaction, the management team has focused on the disposal of identified
businesses and other assets as a key component of the strategic action plan. Aveng intends to dispose of the Grinaker-LTA 
and Trident Steel operating divisions, as well as the individual Manufacturing businesses together with certain property 
and investment assets. 

The strategic review revealed that, while these are inherently good businesses, it is highly likely that they would be
more successful in the hands of new owners. The intent is therefore, to sell these businesses as going concerns and
Aveng will remain fully engaged to support the businesses to drive improved performance until new owners are introduced.
This approach will ensure a sustainable future for employees, customers and suppliers of these businesses and it will
allow Aveng to realise acceptable value.

Management obtained independent valuations in support of the fair value assessments and remain confident that it will
be able to realise acceptable values for these assets. There has been significant interest from credible buyers for 
the majority of the businesses earmarked for sale, with some early progress on these disposals. Shareholders will 
be kept informed of developments.

In August 2018, Aveng announced that it had successfully sold its Vanderbijlpark and Jet Park properties for a 
total value of R254 million. The disposal of the Jet Park property remains subject to shareholder approval. 
The Jet Park circular will be posted by no later than 15 October 2018.

The achievement of this objective remains an overriding priority in the achievement of the strategic action plan. 
The planned completion of all disposals is by June 2019. 

Unlocking value from core businesses
McConnell Dowell and Moolmans were identified as the core businesses capable of achieving Aveng's long-term strategy.
Both of these businesses are well positioned to take advantage of strong long-term market opportunities.

McConnell Dowell
In June 2017 McConnell Dowell completed a restructure of its balance sheet following a review of all long-outstanding
uncertified revenue and claims. This allowed the business to embark on a more customer-centric settlement approach aimed
at disengaging from various litigation processes. This has yielded good results, with 20 of the 24 identified legacy
claims being settled largely in line with the expected values. The remaining claims are on track for resolution and remain
a source of future additional liquidity.

With a strengthened leadership team, McConnell Dowell is delivering improved project performance and greater
consistency of execution and is now well positioned to capitalise on growth opportunities. Notably, McConnell Dowell has 
been operating on a self-sustaining basis since the recapitalisation in September 2017, and this trend is expected to 
continue.

McConnell Dowell has successfully completed a number of large contracts during the period and received several
industry awards in the process. Its reputation for excellence and its specialist technical capabilities of marine, 
pipelines, tunnelling, rail, mechanical and fabrication, together with its long-established brand, make McConnell 
Dowell an attractive contracting partner. The markets serviced by McConnell Dowell offer significant opportunities 
but remain intensely competitive. In conjunction with the improved operating model, McConnell Dowell has undertaken 
an in-depth review of all markets in which it operates and has redefined its addressable market to target opportunities 
that are in line with its acknowledged areas of specialisation and in which the company has a demonstrable history 
of successful execution. 

Moolmans
Moolmans continues to enjoy a strong market position as the pre-eminent open-cut mining contractor. Its track record
of operational and financial performance, which has earned Moolmans the reputation among customers as a reliable partner,
and its resilience in a difficult commodity market, has made Moolmans more sustainable than its competitors. 

The South African mining sector has been under significant pressure. Moolmans has underperformed for the year
primarily due to poor contract performance in the second half of the year. A comprehensive and focused Group-led turnaround
intervention has been implemented and good progress is being made addressing the key issues. There is an immediate and
urgent focus on improving contract performance, renegotiating contractual terms and, where necessary, exiting contracts. 
The turnaround programme is expected to continue throughout the current financial year. 

With loss-making contracts eliminated, the difficulties experienced by the mining business in FY2018 are not expected
to recur and a gradual recovery is expected, with improvement in FY2019. 

Similar to McConnell Dowell, Moolmans will be enhancing its business development focus and processes.

MARKET REVIEW
The overall construction industry in Australia, New Zealand and Asia Pacific remains positive and active across all
operating regions. Strong opportunities in infrastructure development are primarily being driven by population growth and
urbanisation. In the context of increased activity in the construction industry, governments in these regions remain
focused on the development of transport infrastructure, energy and utilities facilities. 

The construction industry across Southeast Asia is expected to continue to experience strong growth, with rapid
urbanisation contributing to the development and expansion of inter-city rail projects, airport expansions and 
improvements to water and sewerage facilities. There is strong competition in all of these markets. 

The mining industry in South Africa is cautiously optimistic, with some mining companies looking to increase output
and make new investments in assets. The changing political environment in the country and the current rally in commodity
prices provide opportunities for Moolmans, both within South Africa and selected markets in the rest of Africa.

FINANCIAL PERFORMANCE
Aveng reported a headline loss of R1,7 billion (2017: R6,4 billion) and a net loss of R3,5 billion (2017: R6,7 billion). 
This loss includes an impairment charge of R2,3 billion relating to the non-core assets transferred to Held for 
Sale being measured at fair value.

Basic loss per share was 653,9 cents loss per share compared to a 1 245,1 cents loss per share (restated) in the 
comparative period and headline loss per share decreased to 311,6 cents (2017: 1 197,0 cents restated) loss 
per share.

Statement of comprehensive earnings
Revenue increased by 30% to R30,6 billion (2017: R23,5 billion). Excluding the impact of the write-downs on long
outstanding uncertified revenue of R5,1 billion in the prior year, revenue increased by 11% mainly due to improved
performance at McConnell Dowell throughout its markets. Despite the challenges it has faced, Moolmans saw a 13% increase 
in revenue. 

The gross margin for the Group deteriorated to 5,9% from an adjusted 7,2% in the comparative period due to lower
margins in Moolmans, Civil Engineering and Manufacturing.

Net operating earnings decreased from an adjusted loss of R113 million in 2017 to a loss of R401 million. 
There were a number of factors that influenced this:
- Moolmans reported an R11 million operating profit which was heavily impacted by underperformance on three key
  contracts;
- Declining revenue and operational underperformance in two business units within the Manufacturing operating group.
  This reflected overall weak operating conditions in infrastructure, rail, underground mining and water sectors 
  served by the majority of the manufacturing business units; and
- Aveng Grinaker-LTA results were impacted by a combination of ongoing underperformance on major road and building
  projects and further retrenchment costs, resulting in a loss of R367 million.

However, these were partially offset by:
- Improved results in McConnell Dowell with a return to profitability, reporting a net operating profit of 
  R103 million compared to an adjusted loss of R129 million in the comparative period. The return to profitability 
  was driven by improved project execution; and
- Aveng Trident Steel's return to profitability was on the back of growing demand in the automotive industry coupled
  with higher steel prices and the continued focus on reducing costs.

An impairment charge of R2,3 billion was mainly recognised against property, plant and equipment, goodwill and
intangible assets that were reclassified as Held for Sale, as well as fair value adjustments to non-core assets. Following 
the strategic review, the decision to dispose of non-core assets has resulted in the consideration of impairment and the
reclassification of these assets as Held for Sale at year end. This required the realisable value to be assessed under a
different valuation approach, being fair value less costs to sell. Management performed this assessment with the support
of an independent consultant. The Board interrogated and approved these valuations and the related impairments and fair
value adjustments. This change in measurement criteria has resulted in adjustments to non-core asset values and related
assets such as deferred taxation. An impairment charge of R1,3 billion (2017: R278 million) was mainly recognised against
goodwill, intangible assets, property, plant and equipment, and R195 million against equity accounted investments. 
In addition, fair value adjustments on assets transferred to Held for Sale amounted to R807 million.

Net finance charges of R439 million included a non-recurring interest benefit of R118 million received. Excluding
this, the cost would be higher than the previous corresponding period, due to higher utilisation and an increased cost 
of facilities.

Statement of financial position
The Group incurred capital expenditure of R786 million (2017: R955 million), applying R648 million 
(2017: R820 million) to replace and R138 million (2017: R135 million) to expand property, plant and equipment. 

The majority of this amount was spent as follows:
- R136 million at McConnell Dowell, relating to specific projects in Australia and Southeast Asia;
- R507 million at Moolmans relating to new equipment spend and component replacement; and
- R69 million at Aveng Manufacturing.

Assets Held for Sale increased to R4,8 billion (2017: R122 million) due to the reclassification of the non-core
assets. 

Liabilities Held for Sale increased to R4,1 billion (2017: R0 million) due to the reclassification of the
non-core assets.

Amounts due from contract customers (non-current and current) improved to R4,0 billion before Held for Sale 
(2017: R4,5 billion) due to receipt of QCLNG claim and improved collections in Aveng Grinaker-LTA and 
Moolmans. 

Deferred tax assets were impaired by of R509 million, following the change in measurement criteria and reclassification
of the non-core assets Held for Sale. The change necessitated an assessment of the expected future utilisation of the 
deferred tax assets. Although assessed losses do not expire, management's estimate reflects the expected utilisation 
of the deferred tax assets within the foreseeable future. 

Operating free cash flow for the period amounted to an outflow of R34 million and included: 
- Cash inflow of R202 million in McConnell Dowell which includes early receipts from certain contracts, the receipt 
  of the QCLNG award and improved operational performance on projects;
- Positive cash flow generated by Aveng Grinaker-LTA due to solid performances from Water, Building South and
  Mechanical & Electrical;
- Cash outflow of R79 million at Moolmans after capital expenditure;
- Cash outflow at Aveng Manufacturing of R107 million was driven by underperformance;
- Net capital expenditure of R495 million;
- Net finance charges paid of R288 million; and
- Taxation of R95 million.

Cash and bank balances (net of bank overdrafts) increased slightly to R2,1 billion (2017: R2 billion) resulting in a
net debt position of R1,2 billion (2017: R1 billion). 

OPERATING REVIEW
Safety
Regrettably, just before year end on 18 June 2018, Anele Nwelende, working on the R61 - All Saints Roads project, lost
his life in a fatal accident. The Aveng Board and management extend their sincere condolences and deepest sympathy to
Mr Nwelende's family and colleagues. 

Aveng remains concerned with the current levels of unsafe behaviour by public road users, especially given the Group's
various public road projects. Efforts to address such risks include increasing safety controls on road closures and
enhancing employee vigilance during work activities inside a road closure or in close proximity to public vehicles. 

Safety remains a core value for Aveng and is integral to the way in which its operating groups conduct their business.
Aveng prioritises the well-being of its people, clients and communities in which it operates. The Group remains fully
committed to delivering on its safety vision of "Home Without Harm, Everyone, Everyday". 

As part of Aveng's focus on continuous improvement in safety, health and environment ("SHE") performance and
reporting, a change was adopted in FY2018 in line with international best practice. The All Injury Frequency Rate ("AIFR") 
has been replaced with Total Recordable Injury Frequency Rate ("TRIFR"). This indicator includes fatalities, lost-time 
injuries, restricted workday cases and medical treatment cases but excludes first aid cases, and is calculated using 
200 000 man-hours as the baseline for its frequency rate. The TRIFR has shown a sturdy performance for FY2018 with an 
improvement at 0,91 exceeding the target of 0,98. 

Construction & Engineering: Australasia and Asia
This operating segment comprises four McConnell Dowell business units: Australia, New Zealand and Pacific, Southeast
Asia and Built Environs. 

Revenue increased by 29% to AUD1,2 billion (Adjusted 2017: AUD906 million), reflecting the increased activity
experienced in the growing markets in which McConnell Dowell operates. McConnell Dowell returned to profitability in the 
period as a result of improved project execution and associated margin generation. The new operating framework and 
streamlined management systems improved efficiency and led to more consistent performance on projects, which are now 
delivering the planned results. 

McConnell Dowell is strategically positioned in high-growth markets to leverage off its geographical and diversified
sectors to grow its order book. The planned new work is lower, following the change in approach to winning new work,
which is to target opportunities that are in line with acknowledged areas of specialisation and in which the company has
demonstrated successful execution. At the same time, all markets remain strongly competitive.

Australia 
Revenue increased by 79% to AUD587 million (2017: AUD328 million) due to strong project execution on the Amrun Export
Facility Jetty, Northern Gas Pipeline, Murray Basin Rail upgrade and Swanson Dock East Rehab Works. While the recently
awarded projects achieved planned performance, operating earnings were impacted by a small number of historic loss-making
contracts that are close to being resolved. 

Southeast Asia 
Revenue increased by 11% to AUD263 million (2017: AUD237 million) driven by strong progress on the Tuas Bridge
Project, Marina Bay Sands Project, Rapid Solid Product Jetty Project and Nakhon Ratchasima Pipeline Project. The operational
results were negatively impacted by underperformance on the two underpass projects in Singapore. The Tangguh LNG export
jetty is advancing but is experiencing schedule impacts associated with engineering and project mobilisation activities.

New Zealand and Pacific Islands
Revenue reduced by 35% to AUD174 million (2017: AUD270 million). The unit successfully completed key projects within
the region, including the Kawarua Falls Bridge, Russley Road Overpass on the South Island and the Mangere BNR on the
North Island. 

Despite a decline in earnings, operational performance was strengthened during the year as reflected in good progress
on the City Rail Link project in the Auckland CBD, Sumner Road replacement and the Christchurch Southern Motorway on the
South Island. 

Built Environs 
Revenue increased by 92% to AUD90 million (2017: AUD47 million) which was negatively impacted by the termination of
the U2 on Waymouth contract. Built Environs is restoring operational excellence and broadening its market presence and
activity in line with its growth plan.

Construction on the West Franklin Apartments is progressing to plan and the Urbanest student accommodation was
successfully completed in January 2018, making this the fastest construction of a 22-storey building in Adelaide.
 
Moolmans 
This operating segment comprises the merged businesses of Moolmans and Aveng Shafts & Underground.

The segment reported an increase in revenue to R4,7 billion (2017: R4,1 billion). Net operating earnings
decreased by 95% to R11 million (2017: R219 million). This has resulted in the renegotiation or exit of some 
problematic contracts which will remove significant risk from the business. The impact of these contracts was 
accounted for in the current year's results. 

The contract at Gamsberg (South Africa) has been extended by the award of the South Pit; at Tshipi (South Africa)
volumes have increased and the Lefa (Guinea) project has been converted into a bulk cubic metres (BCM) contract from 
an equipment rental contract.

Construction & Engineering: South Africa and rest of Africa
This operating segment comprises Aveng Grinaker-LTA and Aveng Capital Partners. 

Significant progress has been made to turn around Aveng Grinaker-LTA following the appointment of a new leadership
team in the second half of the financial year. The operating segment's revenue was R6,6 billion (2017: R6,1 billion). 
A combination of ongoing underperformance on major roads and buildings projects and further retrenchment costs resulted 
in a disappointing loss of R367 million (2017: R188 million adjusted loss). This was partly offset by positive results 
from Mechanical & Electrical, Building South and Water.

Civil Engineering 
Revenue increased by 14% to R1,6 billion (2017: R1,4 billion), mainly due to the Majuba Coal handling project.
However, conditions in the civil infrastructure market remained difficult. The business unit's exposure to roads projects 
that experienced weather or community-related disruptions and commercial challenges contributed to a loss of R318 million
(2017: R397 million loss). Three of the loss-making roads contracts in the Civil Engineering business have been completed
in line with the revised plans while the remaining two roads contracts are performing in line with expectations.

Mechanical & Electrical
Revenue decreased by 9% to R1,1 billion (2017: R1,2 billion) due to lower levels of work on major power projects.
However, the business unit performed to expectation, delivering an operating profit of R40 million as it successfully
completed several diverse projects and focused on major shutdown and maintenance contracts in the petrochemical market.

Buildings and Coastal 
The revenue of Building and Building South increased to R3,7 billion (2017: R3,1 billion) as work continued on a
number of major commercial, industrial and healthcare projects across South Africa. There was a strong focus on delivering
quality work in safe working environments, but financial performance was impacted by margin erosion on a small number of
high value building projects. This resulted in a net operating loss of R45 million (2017: R75 million). In Gauteng, the
Old Mutual Head Office in Sandton was completed, while the Leonardo Towers and 129 Rivonia developments are on track for
completion in 2019. The 400-bed Dr Pixley Ka Isaka Seme Memorial Hospital project in KwaZulu-Natal addressed challenges
in its operating environment by establishing community partnerships to address local participation.

Aveng Water 
Revenue decreased by 12% to R318 million (2017: R356 million) while operational contracts delivered a pleasing
operating profit of R52 million (2017: R32 million). The business unit closed out the construction phase of the 
eMalahleni project and is now progressing to the operations and optimisation phases of this water treatment plant. 
The Erongo desalination plant in Namibia was also successfully ramped-up.
 
Manufacturing and Processing
This operating segment comprises Aveng Manufacturing and Aveng Steel.

Revenue decreased by 7% to R7,4 billion (2017: R7,9 billion). A net operating loss of R167 million was reported 
(2017: R3 million loss). 

Aveng Manufacturing
This operating group consists of Aveng Automation & Control Solutions (ACS), Aveng Dynamic Fluid Control (DFC), Aveng
Duraset, Aveng Infraset and Aveng Rail.

While two of the Aveng Manufacturing business units have performed profitably, other business units exposed to the
mining and rail sectors continue to experience headwinds, resulting in an overall operating loss for the operating group.
Revenue decreased by 13% to R2,1 billion (2017: R2,4 billion). Net operating earnings decreased to a loss of R196 million
(2017: profit of R51 million) reflecting weak operating conditions in the infrastructure, rail, underground mining and
water sectors. New leadership has developed a focused strategy to address underperformance, including closing
non-performing sites, rationalising production facilities and reducing operational costs and capacity. The acceleration 
of disposals of the business units within this operating group remains a priority.

Aveng ACS: revenue increased by 9% to R444 million (2017: R408 million) due to improved conditions in the oil & gas
and chemical sectors. Operating earnings remained flat. 

Aveng DFC: revenue decreased by 6% to R452 million (2017: R481 million). This was largely due to the short-term impact
of changes in the supply chain and optimisation of production processes.

Aveng Duraset: revenue decreased by 6% to R427 million (2017: R454 million), largely impacted by rising steel prices
while over-capacity in a competitive mining products market had a materially negative impact on profit margins, resulting
in an operating loss.

Aveng Infraset: revenue decreased by 13% to R644 million (2017: R744 million) as a result of falling demand for both
railway sleepers and concrete paving products. Closure, disinvestment or restructuring of loss-making factories in Kuils
River, Pietermaritzburg and Wadeville resulted in short-term costs that increased the operating loss.

Aveng Rail: revenue decreased by 55% to R166 million (2017: R372 million) due to ongoing delays in railway construction
projects and significantly reduced spend in the mechanised track maintenance market.

Aveng Steel
This operating group consists of Aveng Trident Steel. 

Aveng Trident Steel
Revenue decreased by 5% to R5,2 billion (2017: R5,5 billion), largely on the back of lower volumes, but an improved 
margin and a closer control on costs and efficiencies ensured a return to profitability, achieving net operating 
earnings of R29 million (2017: R54 million loss). Growing demand in the automotive industry countered the impact 
of lower domestic steel consumption on the operating group's sales volumes. Higher average steel prices and the 
ongoing rightsizing of operations were the key drivers of increased profitability.

TWO-YEAR ORDER BOOK
The Group's two-year order book amounted to R17,9 billion at 30 June 2018, decreasing by 28% from the R25,1 billion
reported at 31 December 2017, as a result of a 37% decrease in AUD terms in McConnell Dowell's order book, translating
into a 34% decrease in Rand terms. 

The geographic split of the order book at 30 June 2018 was 43% Australasia and Asia (December 2017: 46%), 
51% South Africa (December 2017: 46%) and 6% other (December 2017: 8%).

At 30 June 2018, McConnell Dowell's two-year order book was AUD0,8 billion vs AUD1,2 billion in December 2017. The
existing order book is of higher quality due to the improved project execution demonstrated in the current results as well
as the elimination of zero contribution legacy contracts. As such there is a higher level of confidence that McConnell
Dowell will deliver the gross margins embedded within the current order book. 

Winning new work continues to be a key focus for McConnell Dowell. Encouragingly, a key aspect of this is the focus on
a number of Early Client Involvement (ECI) projects. In this type of process, clients engage with a preferred
contractor to fully develop the scope and costs associated with the project. Due to the collaborative nature of this 
process, there is a higher likelihood that these will result in contract awards. The approximate value of work being 
pursued by McConnell Dowell through ECI projects is AUD1,25 billion.

Moolmans' order book at 30 June 2018 was R5,3 billion versus R6,7 billion in December 2017, a decline of 21%. Similar
to McConnell Dowell, Moolmans will be enhancing its business development focus and processes. While the market remains
competitive, there are several opportunities being pursued by Moolmans. 

Aveng Grinaker-LTA's order book decreased by 24% since December 2017. Securing quality work at targeted margins
remains a priority for the operating group.

OUTLOOK AND PROSPECTS 
A great deal has been achieved to date to place the Group in a more stable position. The capital markets transactions
concluded in July and September 2018 provide a much-strengthened capital structure and a solid platform from which to
advance the strategic action plan to its successful conclusion.

In the short to medium term, the Board and Executive management of Aveng will remain focused on accelerating the Group
turnaround. This will include the management of the Group's liquidity and the disposal of the non-core assets by the
targeted deadline of June 2019. In the interim, Aveng will continue to support the individual management teams to ensure
that operational and financial performance is stabilised and optimised at each business unit in preparation for sale. 

Going forward as an international infrastructure and resources group, the optimisation of both McConnell Dowell and
Moolmans is critical to the success of the Aveng Group. Priorities for McConnell Dowell are to convert ECI opportunities
into order book and to win work in its target markets and specialist areas. At Moolmans, management will focus on
ensuring that the interventions deliver improved operational and financial performance while business development 
processes are enhanced. 

Strong employees are the bedrock of the organisation and, as with any change process, Aveng is cognisant of the impact
of the uncertainty that this process has had on employees over the previous year. The Group will continue to focus on
ways to rebuild morale and enhance the safety, health and wellness of all employees.

Disclaimer
The financial information on which any outlook statements are based has not been reviewed or reported on by the
external auditor. These forward-looking statements are based on management's current belief and expectations and are 
subject to uncertainty and changes in circumstances. The forward-looking statements involve risks that may affect the 
Group's operations, markets, products, services and prices.

By order of the Board

EK Diack                                     AH Macartney
Executive Chairman and Group CEO            Chief Financial Officer

Date of release: 25 September 2018


CORPORATE INFORMATION
Directors
EK Diack (Executive Chairman and Group CEO), K Mzondeki*# (Lead Independent Director), 
SJ Flanagan*#, MA Hermanus*#, PA Hourquebie*#, MJ Kilbride*#, AH Macartney (Group CFO), 
*Non-executive #Independent

Company Secretary
Edinah Mandizha

Business address and registered office
Aveng Park
1 Jurgens Street, Jet Park
Boksburg, 1459
South Africa
Telephone +27 (0) 11 779 2800

Company registration number
1944/018119/06

Share codes
(Incorporated in the Republic of South Africa)
(Registration number 1944/018119/06)
Share code: AEG
Share ISIN: ZAE 000194940
JSE 2019 convertible bond code: AEGCB
JSE 2019 convertible bond ISIN: ZAE 000194940
("Aveng", "the Company" or "the Group")

Website
http://www.aveng.co.za

Auditors
Ernst & Young Inc.
Registration number: 2005/002308/21
102 Rivonia Road
Sandton, Johannesburg, 2196
Private Bag X14
Northlands, 2146
South Africa
Telephone +27 (0) 11 772 3000
Telefax +27 (0) 11 772 4000

Principal bankers
Absa Bank Limited
Australia and New Zealand Banking Group Limited
FirstRand Bank Limited
HSBC Bank plc
Investec Bank Limited
Nedbank Limited
The Standard Bank of South Africa Limited
United Overseas Bank Limited

Corporate legal advisers
Baker & McKenzie

Sponsor
UBS South Africa Proprietary Limited
Registration number: 1995/011140/07
64 Wierda Road East
Wierda Valley, Sandton 2196
PO Box 652863
Benmore, 2010
South Africa
Telephone +27 (0) 11 322 7000
Facsimile +27 (0) 11 322 7380

Registrars
Computershare Investor Services Proprietary Limited
Registration number: 2004/003647/07
Rosebank Towers, 15 Biermann Avenue 
Rosebank 2196, South Africa
PO Box 61051
Marshalltown, 2107
South Africa
Telephone +27 (0) 11 370 5000
Telefax +27 (0) 11 688 5200

Date: 25/09/2018 05:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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