half year results 2020 - global.weir
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Half Year Results2020
HALF YEAR RESULTS 2020
Cavex® Hydrocyclones in Mongolia
Half Year Results2020
JON STANTONChief Executive Officer
2
Isogate® valves in operation FInland
Half Year Results2020
3
TODAY’S AGENDAHALF YEAR RESULTS 2020
© The Weir Group PLC, 2020.
H1 2020 Summary – Jon Stanton, CEO
H1 2020 Financial Review – John Heasley, CFO
Business Review – Jon Stanton, CEO
Q&A
Half Year Results2020
4
COVID-19: KEEPING OUR PEOPLE, COMMUNITIES AND CUSTOMERS SAFEH1 2020 SUMMARY
• Safety is our number 1 priority• Adapted working practices quickly• Delivered 53% reduction in TIR1
• Supporting our communities• Prioritising small suppliers• Provided PPE and oxygen to local health authorities
• Continuing to fully serve our customers• Leveraging diversified regional operating model
Nurses on a surgical ward in York, UK, wearing visors manufactured at Weir Minerals Europe.
1. Total Incident Rate (TIR) represents the rate of any incident that causes an employee, visitor, contractor or anyone working on behalf of Weir to require off-site medical treatment per 200,000 hours worked.
Half Year Results2020
5
STRONG EXECUTION IN UNIQUELY CHALLENGING CIRCUMSTANCESH1 2020 SUMMARY
• Minerals resilience reflects its quality• OE and AM orders and revenues higher in Q2 vs Q1• Margins maintained, supported by early cost control
• ESCO margins +190bps• Infrastructure challenging; mining more resilient
• $30m integration synergies delivered ahead of plan
• O&G operating cash positive
• Decisive cost and cash preservation action
• Balance sheet and liquidity remain robust• Highly cash generative: £192m of cash from operations• Completed refinancing of main banking facilities
MINERALS AM ORDERS REMAINED ROBUST
PBTA H1 2019 – H1 2020
0
50
100
150
H1 2019 Minerals & ESCO O&G Other H1 2020
0
100
200
300
400
500
600
H1'18 H2'18 H1'19 H2'19 H1'20
All-time record
Half Year Results 2020
JOHN HEASLEYChief Financial Officer
6
ESCO engineer on site at the Mogalakwena mine, South Africa
Half Year Results 2020
7
MINING RESILIENCE OFFSET BY NORTH AMERICAN O&G DOWNTURNH1 2020 FINANCIAL REVIEW
1. Continuing operations at constant currency. 2. Continuing operations adjusted to exclude exceptional items and intangibles amortisation. 3. Operating cash flow (cash generated from operations) includes continuing and discontinued operations and is before exceptional cash flows. 4. Continuing operations. 5. Net debt : EBITDA is on a lender covenant basis.
• NO INTERIM DIVIDEND• EPS2 DOWN 25% • OPERATING CASH FLOW3 £192m
ORDERS1
£1.1bn-19%
REVENUE1
£1.1bn-17%
OPERATING PROFIT1,2
£133m-22%
PROFIT BEFORE TAX2
£108m-27%REPORTED PROFIT BEFORE TAX4
£63m-41%
ESCO
• NET DEBT: EBITDA5 2.6x
O&G
Minerals
Continuing operations excl. O&G
0.0
0.5
1.0
1.5
H1 2019 H1 20200.0
0.5
1.0
1.5
H1 2019 H1 2020
-10
40
90
140
190
H1 2019 H1 20200
50
100
150
200
H1 2019 H1 2020Continuing operations
Half Year Results 2020
• Modest Covid-19 impact on demand • At peak 10-15% decline in Q2 ore production• AM orders once again resilient -4%• OE orders -11%; customer caution and restricted
mine site access
• Iron Bridge delivery on track
• Stable 17.3% operating margin2
• £10m cost savings largely offset under–recoveries from factory shutdowns
8
RESILIENCE AND STRONG EXECUTION PROTECT PROFITABILITYH1 2020 FINANCIAL REVIEW: MINERALS
1. On a constant currency basis. 2. Adjusted to exclude exceptional items and intangibles amortisation.
ORDER AND REVENUE TRENDS1
Orders1
£724m-6%
EBITA1,2 AND MARGINS1,2
0
200
400
600
800
H1'18 H2'18 H1'19 H2'19 H1'20
AM Orders OE Orders Revenue
-4%
-11%
17.6% 18.3% 17.3% 19.4% 17.3%
0%
5%
10%
15%
20%
0
25
50
75
100
125
150
H1'18 H2'18 H1'19 H2'09 H1'20EBITA Operating margin
Revenues1
£653m-4%
EBITA1,2
£113m-4%
Half Year Results 2020
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RESILIENCE AND SYNERGIES DRIVE INCREASED PROFIT AND MARGINH1 2020 FINANCIAL REVIEW: ESCO
1. On a constant currency basis. 2. Comparisons include 2018 on a pro forma basis. ESCO was acquired on 12 July 2018. 3. Adjusted to exclude exceptional items and intangibles amortisation.
ORDER AND REVENUE TRENDS1,2
Orders1
£247m-17%
EBITA1,2,3 AND MARGINS1,2,3
0
100
200
300
H1'18 pro forma H2'18 pro forma H1'19 H2'19 H1'20
Orders Revenue
11.1% 13.0%14.2%
14.9% 16.1%
0%
5%
10%
15%
20%
10
20
30
40
50
H1'18 pro forma H2'18 pro forma H1'19 H2'19 H1'20EBITA Operating margin
Revenues1
£257m-10%
EBITA1,3
£42m+2%
• Order reduction due to greater Covid-19 impact• Destocking in mining• Widespread construction shutdowns in NAM and Europe
• Revenue more robust reflecting underlying activity • Core mining GET revenues -6%
• Margin 16.1%; up 190bps• $30m cost synergies fully realised early• Additional cost savings of £3m; no significant incremental
Covid-19 costs c.100bps margin benefit in H1
Half Year Results 2020
10
OPERATING CASH POSITIVE IN THE MOST CHALLENGING OF MARKETSH1 2020 FINANCIAL REVIEW: OIL & GAS
1. On a constant currency basis. 2. Adjusted to exclude exceptional items and intangibles amortisation.
ORDER AND REVENUE TRENDS1
Orders1
£170m-50%
EBITA1,2 AND MARGINS1,2
0
100
200
300
400
500
H1'18 H2'18 H1'19 H2'19 H1'20
AM Orders OE Orders Revenue
-48%
-54%
15.8%
8.7%8.6%
2.6%
-2.3%
-5%
0%
5%
10%
15%
20%
-100
1020304050607080
H1'18 H2'18 H1'19 H2'19 H1'20EBITA Operating margin
Revenues1
£185m-48%
EBITA1,2
-£4m-114%
• As expected, downturn accelerated in Q2• NAM land rig count and frack spreads at record lows• International impacted by Covid-19 and oil price
• Significant cost action taken• NAM headcount down 39% in last 12 months• Furloughs 2 weeks out of 4
• Modest operating loss of £4m• £5m loss incurred in Q2; which included £2.5m one-
off indirect tax benefit• Continued to be operating cash positive
Half Year Results 2020
11
COST SAVINGS DELIVERING TO PLANH1 2020 FINANCIAL REVIEW: EXCEPTIONAL ITEMS & 2020 COST SAVINGS
Exceptional items recognised in arriving at operating profit from continuing operations £m H1 2020 H1 2019
ESCO acquisition and integration related costs (2) (3)
Covid-19 restructuring and other costs (7) -
Other restructuring and rationalisation charges (5) -
Black Economic Empowerment transaction (4) -
(18) (3)
Exceptional costs• Covid-19 costs principally related to Minerals
and ESCO severance• Other restructuring primarily right-sizing Oil &
Gas
Cost savings from 2020 actions
To be realisedthis year
£mHeadcount
reduction
Minerals 30 350
ESCO 9 130
Oil & Gas 36 350
Total 75 830
Cost savings• 1/3 of full year £75m total realised in H1• c.65% of cost savings expected to be temporary
Half Year Results 2020
12
STRONG OPERATING CASH FLOW SUPPORTED BY RECEIVABLES EFFICIENCYH1 2020 FINANCIAL REVIEW: WORKING CAPITAL AND OPERATING CASH FLOW
£mH1
2020H1
2019
Operating cash flow – pre working capital 194 235
Working capital cash flows – inventory (23) (51)
Working capital cash flows – receivables 126 (4)
Working capital cash flows – payables (105) (101)
Working capital cash flows – discontinued - (25)
Operating cash inflow 192 54
• Strong divisional operating cash flows
• H1 Working capital cash flow neutral• Usual payables unwind and lower purchase
volumes during H1• Receivables reduction reflects lower sales
volumes, modest increase in invoice discounting and underlying credit focus
• Small inventory increase driven by Minerals project activity including Iron Bridge
• WC:Sales 500bps lower than H1 2019• Mainly receivables efficiency (13 days)
31%
23% 26%
0
0.0
0.1
0.1
0.2
0.2
0.3
0.3
0
150
300
450
600
750
900
H1 2019 H2 2019 H1 2020
£m Working capital % sales
£m H1 2020 H1 2019
Minerals 153 81
ESCO 49 32
Oil & Gas 5 (16)
Central (15) (14)
Discontinued operations - (29)
Operating cash inflow 192 54
Half Year Results 2020
13
FREE CASH FLOW BENEFIT TO NET DEBT OFFSET BY FX TRANSLATIONH1 2020 FINANCIAL REVIEW: LEVERAGE AND NET DEBT
Cash flow statement (as reported) £m H1 2020 H1 2019Operating cash inflows 192 54Net interest (25) (24)Tax (26) (38)Net capex (39) (54)IFRS 16: Lease payments (21) (24)Settlement of derivative financial instruments (6) (44)Other cash flows (10) (13)Free cash flow – pre dividends 65 (143)Dividends paid - (79)Free cash flows 65 (222)
Movement in net debt £mNet debt at 31 December 2019 1,157Free cash inflow (65)Exceptional cash outflow 14FX and other 61Net debt at 30 June 2020 1,167IFRS 16: Leases 189Net debt at 30 June 2020 (excluding Leases) 978
• Covid-19 response included cash preservation across tax, capex and dividends; free cash flow of £65m
• Adverse translational FX of £66m mainly on US$ debt
• Net debt to EBITDA 2.6x on lender covenant basis
• US$950m RCF & £200m Term Loan refinancing completed; extended maturity and significant liquidity
638
638
638
638
162
162
-
767
767
767
767
767
767
-
200
200
200
200
-
-
-
300
300
-
-
-
-
-
- 250 500 750 1,000 1,250 1,500 1,750 2,000
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Dec-22
Jun-23
Committed Debt facilities (£m)
Private Placement Revolving Credit Facility Term Loan CCFF
Half Year Results 2020
14
2020 FINANCIAL GUIDANCE
• Based on June FX rates expect full year operating profit headwind of £7m (H1: £2m)• Capex c. £75m (H1: £39m) • Exceptional cash costs c. £26m (H1: £14m)• Interest c. £5m increase on prior year• Effective tax rate expected to be approximately 24-25%
KEY FINANCIAL TAKEAWAYS
1
Resilience of our core mining businesses
2
Early restructuring limited O&G losses
3
Strong cash generation across all divisions
Successful refinancing; substantial liquidity
4
Half Year Results2020
JON STANTONChief Executive Officer
15
An Enduron HPGR on site in Oklahoma, USA.
Half Year Results2020
16
BUSINESS REVIEW
Half Year Results2020
17
PEOPLEBUSINESS REVIEW
• 53% reduction in Total Incident Rate YoY• No recordable incidents in March; zero-harm is achievable
• Engagement critical to Covid-19 response• Engagement score up 0.2 to 8.1• Benefiting from our highly devolved operating model
• Improving organisational effectiveness• Comprehensive Inclusion and Diversity programme• First Group-wide HR system ready for H2 launch
KPI: Improved sustainable engagement score and organisational effectiveness
Half Year Results2020
18
CUSTOMERSBUSINESS REVIEW
• Global service network crucial
• Security of supply enabled by agile operating model
• £83m in orders from Minerals Integrated Solutions
• Impacted by reduced mine site access
• ESCO delivered 99 net machine conversions
• Leveraging advanced Nemisys® technology
• O&G share gains from new EXL pump platform
• Extended life for power ends and fluid ends
KPI: Increased market share
Half Year Results2020
19
TECHNOLOGYBUSINESS REVIEW
• First Iron bridge HPGRs shipped in H1
• Majority of balance to be delivered in H2
• First pilot Terraflowing® plant nearing completion
• Enabling safer tailings storage and repurposing
• Initial order for ESCO GET Toolhead®
• Significantly improves safety, taking people out of the pit
KPI: Increase revenues from new solutions
Half Year Results2020
20
PERFORMANCEBUSINESS REVIEW
• Optimising manufacturing footprint• Minerals consolidating smaller parts in larger facilities• ESCO investment delivering lead time reductions• Right-sizing O&G for current market conditions
• Roll out global ERP and CRM systems
• Smooth transition to ‘work from home’
• 5,000 people moved to remote working
KPI: Sustainably higher margins through the cycle
Half Year Results2020
• Mining is an essential industry• c. 1% of mines currently closed by Covid-19
• Commodity prices supporting production
• Infrastructure and industrial gradually recovering
• Robust oil sands production supporting AM
• Number of macro uncertainties remain• Full impact of Covid-19 incl. productivity and demand• Rising trade and political tensions
• Activity expected to remain robust• Miners’ production guidance only slightly below pre-
Covid levels
21
MINING MARKETS WELL POSITIONED TO NAVIGATE PANDEMICBUSINESS REVIEW
1. FactSet Data.
COMMODITIES PRICES ROBUST THROUGH H11 (INDEXED, DEC 2019=100)
ESCO WEIGHTED MACHINE UTILISATION SHOWS MODEST Q2 RECOVERY
60
70
80
90
100
110
120
130
12/31/19 01/31/20 02/29/20 03/31/20 04/30/20 05/31/20 06/30/20
Copper Gold Iron Ore
60%
65%
70%
75%
80%
85%
90%
95%
100%
2 3 / 0 3 / 2 0 2 0 / 0 4 / 2 0 1 8 / 0 5 / 2 0 1 5 / 0 6 / 2 0 1 3 / 0 7
Copper Gold Iron ore Total Mining
Half Year Results2020
0200400600800
1000120014001600
Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20
22
INTENTION TO MAXIMISE VALUE FROM O&G AT RIGHT TIMEBUSINESS REVIEW
1. EIA data Jul 2020. 2. Rystad Jun 2020.
Q2 WELL COMPLETIONS REACHED RECORD LOWS IN 20201
HHP FRAC DEMAND EXPECTED TO STABILISE IN H2 20202
• Global supply and demand gradually rebalancing
• Inventories expected to decline into 20211
• NAM continues to be very challenging
• US land rig count down 70% peak to trough
• c.60 frack fleets operational (c. 2.5m HHP)
• International more robust
• Mid East slowly recovering from significant Covid-19 disruption
• Division expected to remain cash positive in 2020
0%10%20%30%40%50%60%70%80%
0.0
5.0
10.0
15.0
20.0
4Q17 3Q18 2Q19 1Q20 4Q20
Frac demand
Utilisation
Projected
Half Year Results2020
23
LONG-TERM MINING FUNDAMENTALS REMAIN POSITIVEBUSINESS REVIEW
• Ore grade declines underpinning AM demand
• Investment needed to maintain volumes
• Age of mining equipment at all-time high
• Miners setting Net Zero sustainability targets
• Reducing energy, water and waste; Weir’s sweet spot
• Covid-19 likely to accelerate some key themes
• Digitisation and automation
Population and economic growth
Meaningnatural resources
remainessential
Increased urbanisation
& carbon transition
Innovative engineering
is the solution
Demands more
infrastructure & energy
Making sustainability &productivity
crucial
Half Year Results2020
24
SUSTAINABILITY FUNDAMENTAL TO OUR PURPOSE AND STRATEGYBUSINESS REVIEW
• Creating Sustainable Solutions• Technology transition critical to enabling net zero• R&D focus on reducing energy, water and waste
• Reducing our footprint• Completed smart metering pilots at main facilities• Increasing proportion of energy from renewables
• Nurturing our unique Culture• Making all employees co-owners• Employee Net Promotor Score +6 to 34
• Championing zero harm• 50% reduction in ESCO TIR reflects investment
and focus
Half Year Results2020
25
WEIR IS A PREMIUM MINING TECHNOLOGY BUSINESSBUSINESS REVIEW
1
A high qualitymining technology business
2
Demand underpinned by long term structural growth
3
Winning through ‘We are Weir’PeopleCustomers Technology Performance
Critical solutions for smarter, more efficient and sustainable mining
4
Delivering sector leading performance through the cycle
5
Delivering resilient high-margin recurring revenues
20%
80%
OriginalEquipment
Aftermarket
Focused on highly abrasive upstream markets
80%
8%
8% 4% Mining
Infrastructure
Industrial
Other
A portfolio of global leading brands
80% Mining
80% AM
Half Year Results2020
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Minerals ReviewAppendix 1
1 2019 restated at 2020 H1 average exchange rates, except for operating cash flow.2 Profit figures adjusted to exclude exceptional items and intangibles amortisation. Operating cash flow (cash generated from operations) excludes additional pension contributions, exceptional items and income tax paid.
£m H1 2020 H1 20191 Growth H2 20191
OE orders 188 211 -11% 317
AM orders 536 558 -4% 500
Total orders 724 769 -6% 817
OE revenue 172 173 -1% 214
AM revenue 481 507 -5% 526
Total revenue 653 680 -4% 740
Book-to-bill 1.11 1.13 1.10
EBITA as reported2 113 117 -4% 144
Operating margin2 % 17.3% 17.3% 0bps 19.4%
Operating cash flow2 153 81 89% 214
Half Year Results2020
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ESCO ReviewAppendix 2
£m H1 2020 H1 20191 Growth H2 20191
OE orders 13 11 21% 16
AM orders 234 286 -18% 250
Total orders 247 297 -17% 266
OE revenue 14 10 38% 15
AM revenue 243 277 -12% 276
Total revenue 257 287 -10% 291
Book-to-bill 0.96 1.03 0.91
EBITA as reported2 42 41 2% 43
Operating margin2 % 16.1% 14.2% +190bps 14.9%
Operating cash flow2 49 32 53% 72
1 2019 restated at 2020 H1 average exchange rates, except for operating cash flow.2 Profit figures adjusted to exclude exceptional items and intangibles amortisation. Operating cash flow (cash generated from operations) excludes additional pension contributions, exceptional items and income tax paid..
Half Year Results2020
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Oil & Gas ReviewAppendix 3
1 2019 restated at 2020 H1 average exchange rates, except for operating cash flow.2 Profit figures adjusted to exclude exceptional items and intangibles amortisation. Operating cash flow (cash generated from operations) excludes additional pension contributions, exceptional items and income tax paid..
£m H1 2020 H1 20191 Growth H2 20191
OE orders 46 100 -54% 71
AM orders 124 241 -48% 182
Total orders 170 341 -50% 253
OE revenue 58 104 -44% 79
AM revenue 127 247 -49% 188
Total revenue 185 351 -48% 267
Book-to-bill 0.92 0.97 0.95
EBITA as reported2 (4) 30 -114% 7
Operating margin2 % -2.3% 8.6% -1090bps 2.6%
Operating cash flow2 5 (16) -95% 59
Half Year Results2020
29
Quarterly Input TrendsAppendix 4
1 Continuing operations (excludes the Flow Control division which was disposed of on 28 June 2019).2 Like-for-like excludes the impact of acquisitions. ESCO was acquired on 12 July 2018 and is excluded from 2018 and 2019.
Reported growth1 Like-for-like growth1, 2
2019 Q3 2019 Q4 2020 Q1 2020 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2
Original Equipment 72% 20% -13% -9% 72% 20% -13% -9%
Aftermarket -5% 8% -1% -6% -5% 8% -1% -6%
Minerals 17% 12% -5% -7% 17% 12% -5% -7%
Original Equipment 83% 54% 25% 16% - - 25% 16%
Aftermarket 22% -18% -8% -28% - - -8% -28%
ESCO 25% -16% -7% -26% - - -7% -26%
Original Equipment -26% 7% -41% -71% -26% 7% -41% -71%
Aftermarket -34% -43% -31% -67% -34% -43% -31% -67%
Oil & Gas -32% -35% -34% -68% -32% -35% -34% -68%
Original Equipment 41% 18% -22% -25% 40% 17% -22% -25%
Aftermarket -7% -13% -10% -25% -15% -11% -10% -25%
Continuing Operations1 4% -6% -13% -25% - -3% -13% -25%
Book-to-bill 1.08 0.97 1.08 1.04 1.11 1.02 1.08 1.04
Half Year Results2020
30
Order Input by End Market and GeographyAppendix 5
Order input by end market Minerals ESCO Oil & Gas H1 2020 Total H1 2019 Total
Mining 552 138 - 690 738
Oil & Gas 52 22 167 241 427
Infrastructure 4 75 - 79 100
General Industrial 69 12 1 82 89
Other 47 - 2 49 53
Continuing operations 724 247 170 1,141 1,407
Order input by geography Minerals ESCO Oil & Gas H1 2020 Total H1 2019 Total
North America 170 128 110 408 616
Europe & FSU 85 31 7 123 131
Australasia 135 30 1 166 141
Middle East & Africa 88 19 33 140 163
South America 183 31 2 216 201
Asia Pacific 63 8 17 88 155
Continuing operations 724 247 170 1,141 1,407
Half Year Results2020
31
Working CapitalAPPENDIX 6
1Working capital metrics are presented for continuing operations.
2.4 2.7
2.3
0
0.5
1
1.5
2
2.5
3
0
150
300
450
600
750
900
H1 2019 H2 2019 H1 2020
£m Inventory
67.4 60.4
54.6
0
10
20
30
40
50
60
70
80
0
150
300
450
600
H1 2019 H2 2019 H1 2020
£m Trade receivables
31%
23% 26%
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0
150
300
450
600
750
900
H1 2019 H2 2019 H1 2020
£m Working capital
0
150
300
450
600
750
H1 2019 H2 2019 H1 2020
£m Trade payables
Half Year Results2020
32
Foreign Exchange by CurrencyAppendix 7
1. Adjusted to exclude exceptional items and intangibles amortisation.
H1 2019 Revenue £m H1 2019 Operating profit1 £m
Currency At 2019 rates FX At 2020 rates At 2019 rates FX At 2020 rates
US Dollar 740 18 758 111 3 114
Australian Dollar 143 (7) 136 12 (1) 11
Canadian Dollar 105 - 105 23 - 23
Euro 42 - 42 17 - 17
Chilean Peso 81 (12) 69 21 (3) 18
United Arab Emirates Dirham 30 1 31 1 - 1
South African Rand 53 (6) 47 2 - 2
Brazilian Real 22 (4) 18 2 - 2
Russian Rouble 21 (1) 20 5 (1) 4
Other 92 - 92 (22) - (22)
Continuing operations 1,329 (11) 1,318 172 (2) 170
Variance
Interest (25) (1) (26)
PBTA 147 (3) 144
Variance (2%)
Half Year Results2020
33
Foreign Exchange by DivisionAppendix 8
1. Adjusted to exclude exceptional items and intangibles amortisation.
H1 2019 Revenue £m H1 2019 Operating profit1 £m
Division At 2019 rates FX At 2020 rates At 2019 rates FX At 2020 rates
Minerals 706 (26) 680 121 (4) 117
Oil & Gas 343 8 351 29 1 30
ESCO 280 7 287 40 1 41
Central Costs - - - (18) - (18)
Continuing operations 1,329 (11) 1,318 172 (2) 170
Discontinued Operations 150 1 151 (3) - (3)
Half Year Results2020
34
Foreign Exchange Headwind Expected in 2020Appendix 9
1. Adjusted to exclude exceptional items and intangibles amortisation.
FY 2019 Revenue £m FY 2019 Operating profit1 £m
Currency At 2019 rates FX At 2020 rates At 2019 rates FX At 2020 rates
US Dollar 1,419 17 1,436 207 2 209
Australian Dollar 286 (11) 275 30 (1) 29
Canadian Dollar 234 (3) 231 54 (1) 53
Euro 87 - 87 34 - 34
Chilean Peso 167 (21) 146 43 (5) 38
United Arab Emirates Dirham 66 1 67 2 - 2
South African Rand 107 (12) 95 4 - 4
Brazilian Real 49 (9) 40 6 (1) 5
Russian Rouble 49 (2) 47 10 (1) 9
Other 198 (3) 195 (38) - (38)
Continuing operations 2,662 (43) 2,619 352 (7) 345
Variance
Interest (49) - (49)
PBTA 303 (7) 296
Variance (2%)
Half Year Results2020
35
Exchange RatesAppendix 10
Currency H1 2019Average FX rate
H1 2020Average FX rate
H1 2019Balance sheet date
H1 2020Balance sheet date
US Dollar 1.29 1.26 1.27 1.24
Australian Dollar 1.83 1.92 1.81 1.80
Canadian Dollar 1.72 1.72 1.66 1.69
Euro 1.14 1.15 1.12 1.10
Chilean Peso 872.86 1,023.61 861.30 1,017.24
United Arab Emirates Dirham 4.75 4.64 4.66 4.55
South African Rand 18.35 20.89 17.91 21.51
Brazilian Real 4.97 6.17 4.87 6.76
Russian Rouble 84.28 87.47 80.15 88.10
The principal exchange rates applied in the preparation of the financial statements were as follows: