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Strategy

Strategy

Vision

During the strategic realignment of Aveng, a renewed vision statement was developed to guide the Group in achieving its purpose as a sustainable leader in the delivery of infrastructure as well as related products and mining services. The Aveng Group aims to own and operate a portfolio of infrastructure, mining and manufacturing-related businesses, each of which will achieve top quartile performance compared to its peers when measured against return on invested capital, earnings growth, and positive cash flow generation through the business cycle.

Aveng will apply a set of financial benchmarks to ensure that the Group and each operating group meets the required performance objectives through the cycle, achieving competitive financial returns for shareholders. These performance targets for the medium to long term have been agreed by the Board as follows:

  Headline earnings growth Real 8%
  Return on invested capital (ROIC) Minimum of 15%
  Operating free cash flow before expansion capital expenditure Positive throughout cycle

Management’s philosophy on value is centred around operating free cash flow generation and return on invested capital generated by the Group, as well as the ability to continuously grow and evolve the Group to meet market needs, as manifest in real headline earnings growth.

While this philosophy seems to be centred on financial returns, there is clear cognisance of the need for a robust integrated long-term strategy that focuses on sustainability and effective utilisation of capital through an optimised business model to ultimately achieve the value generation capability of Aveng.