Cimic : 2015 NPAT up 20% on PCP to $530.4m, at top of Guidance Range 2015 NPAT up 20% on PCP to $530.4m, at top of Guidance Range(PDF File 152.4 KB)

Microsoft Word - Draft FY15 ASX announcement 9Feb16 - Clean

10 FEBRUARY 2016 2 0

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3 15 NPAT UP 20% ON PCP1 TO $520.4M, AT TOP OF GUIDANCE RANGE OPERATING CASH FLOW OF $1. 2BN, UP 6% 1 H B LANCE S $ .1BN2

W O EET STRENGTH ENHANCED, NET CASH F FIRM ORDER BOOK, ITH WIH3 OF $29BN

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CIMIC Group today announced positive results for the 12 months to 31 December 2015 with

NPAT at the top of the guidance range. Net cash was substantiall

higher at year end, further

strengt the res

ening the lts were:

alance she

t, and the Group had a firm level

f work in hand. Highlights of

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• NPAT of $520.4 million at the top end of the guidance range; up 20% on the prior

  comparable pe iod (pcp) for the Group's continui

  g operatio s.

• EBIT and NPAT margins of 6.3% and 3.9% respectively, representing 150 and 130 basis point increases on the pcp, on revenue of $13.28 billion4.

  
  

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• Operating cash flow of $1.

  p

  2 billion, up $510 million on FY14, reflects improved project

  performance a

  d working

  apital management.

• Net cash2 up nearly $500

  illion as at 31 December 2015 to over $1.1 billlion.

  
  

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• Positive trend in net contract debtors, down 23.7% to $1.5 billion.

• Ne 31

  work of $14.13 billion5 won during 2015; fir ecember 2015.

  level of w

  rk in hand of $29 billion as at

  0

• Guidance for 2 conditions.

16 NPAT in the range

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f $520 million to $580 million, subject to mar et

In January 2016, CIMIC commenced an on‐market share buy‐back of up to 10% of its fully paid ordinary shares over 12 months. The buy‐back will improve shareholder returns and enhance

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capital

fficiency.

The Board has determined a 1

0% franked final dividend of 50 cents per share ($168.5

illion in

total based on shares on issue as at 10 February 2016) to be paid on 8 April 2016. This

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1 Performance is for the comparable 12 month period to December 2014, which inc udes 50% of Ventia's profit after tax of

$76.6 million, and excludes the $472.5 million ($675.0 million before tax) contract debtors portfoli o provision in operations. Refer to the Operating and Financial Review within the Annual Report for a reconciliation.

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2 Net cash excluding operating leases of $583.4 million.

ontinuing

3 Work in hand (WIH) includes CIMIC's share of work in hand from Joint Ventures a d Associates. Work in hand i cludes work in h nd beyond five years of $1,6 3 million (Mining $921 million, Corporate $ 42 million) and 2014 has been restated to include work in hand beyond five ye rs of $817 million (Mining $110 million, Corporate $707 miillion).

4 Margin calculated on r venue excluding interest income ($89.9 million in FY15; $87.8 million in FY14).

5 New work includes ne

movements.

contracts and contract extensions and vari tions includin

the impact of foreign excha ge rate

represents a full year payout ratio of 62% of NPAT. Due to the share buy‐back the Board estimates the payout ratio will be approximately 60% of NPAT at the time the dividend is paid, consistent with our dividend policy.

CIMIC Executive Chairman and Chief Executive Officer Mr Marcelino Fernández Verdes said: "CIMIC Group performed strongly during 2015, either meeting or exceeding key financial targets.

"2015 NPAT is at the top end of our profit guidance range and we have improved margins by reducing overheads and effectively managing financial and other costs. With our enhanced tendering approach, we have won new work of more than $14 billion. Our activity‐focused operating model, and increased attention to cash and cost control, delivered a solid result and has put us in a strong net cash position.

"The strength of our balance sheet has enabled us to improve our capital allocation, including making offers to acquire shares in Devine and Sedgman, and to commence an on‐market share buy‐back for the benefit of our shareholders.

"We have made significant improvements to CIMIC's competitive position and entered 2016 with a stronger base, ready to keep pursuing our pipeline of work and continuing to win and deliver profitable projects."

Regarding the Gorgon LNG Jetty and Marine Structures Project, it is in CIMIC's best interests to move the negotiation process with Chevron to the next stage. This may see the parties enter into an arbitration procedure in accordance with the contract.

Looking forward, CIMIC's markets offer a range of new project opportunities. There is a strong pipeline of infrastructure and mining projects relevant to CIMIC of $60 billion (60% of which is in Australia and New Zealand) which is expected to be awarded in FY16; and more than $170 billion (70% of which is in Australia and New Zealand) in FY17 and FY18. Of these figures, mining accounts for $18 billion in FY16, and, currently, more than $20 billion in subsequent years.

Since year‐end, Pacific Partnerships and CPB Contractors, with their partners, were selected as the preferred proponents to deliver the first stage of Canberra's light rail project.

Mr Fernández Verdes said: "CIMIC's PPP expertise, financial strength, diverse capabilities and major project experience position us strongly for light rail and other projects in the PPP pipeline.

"We remain focused on further developing our core contracting business, and extending into new markets and exploring new value‐creating opportunities within our existing and complementary areas of expertise."

ENDS

Issued by CIMIC Group Limited ABN 57 004 482 982 www.cimic.com.au Further information

Ms Marta Olba, Group Manager Investor Relations T+61 2 9925 6134 Ms Fiona Tyndall, General Manager Communications T+61 2 9925 6188

CIMIC Group Limited (ASX: CIM) is one of the world's leading international contractors and the world's largest contract miner. CIMIC (previously Leighton Holdings) has operations that have been in existence since 1934, was listed on the Australian Securities Exchange in 1962 and has its head office in Sydney, Australia.

CIMIC provides construction, mining, engineering, concessions, and operation and maintenance services to the infrastructure, resources and property markets. It operates in more than 20 countries throughout the Asia Pacific, the Middle East, Sub‐Saharan Africa and South America and, as at 31 December 2015, employed approximately 43,400 people directly and through its proportional ownership of HLG and Ventia.