CIMIC Group Limited Annual Report 2024 | Directors’ Report
1
Directors’ Report
The Directors present their report for the 2024 Financial Year (FY24) in respect of the Company and certain entities it controlled
(‘the Group’ or “CIMIC’). This Directors’ report has been prepared in accordance with the requirements of the Corporations Act and
is dated 13 February 2025.
DIRECTORS
The directors of the Company at any time during or since the end of the financial year were:
DIRECTORS
Juan Santamaria
Executive Chairman since November 2020.
Russell Chenu
Independent Non-executive Director since June 2014.
José-Luis del Valle Pérez
Non-executive Director since March 2014.
Pedro López Jiménez
Non-executive Director since March 2014.
David P Robinson
Non-executive Director since December 1990.
Peter W Sassenfeld
Non-executive Director since November 2011.
Kathryn Spargo
Independent Non-executive Director since September 2017.
Robert L Seidler AM
Non-executive Director appointed 23 October 2023.
Pedro Vincente Maese
Chief Executive Officer, Director since July 2024.
COMPANY SECRETARY
Kate Glennon was appointed secretary of the Company on 22 June 2022.
FORMER OFFICEHOLDERS
During FY24, the following people ceased to be officeholders of the Company:
Name
Position
Period
Priti Pasupuleti
Company Secretary
1 January to 17 May 2024
FORMER PARTNERS OF THE AUDIT FIRM
No person who was an officer of the Company during the 2024 financial year was a director or partner of the Company’s external
auditor at a time the Company’s external auditor conducted the audit.
PRINCIPAL ACTIVITIES
The Group is an engineering-led construction, mining, services and public private partnerships leader working across the lifecycle of
assets, infrastructure and resources projects.
REVIEW OF OPERATIONS
The Company reported a profit for the year after tax of $786.1 million (2023: $438.7 million). Further information on the Group’s
operations is included in the 2024 Annual Review and Sustainability Report available at www.cimic.com.au.
CHANGES IN STATE OF AFFAIRS
There was no significant change in the state of affairs of the Company during the financial year.
SUBSEQUENT EVENTS
Refer to Note 38: Events subsequent to reporting date.
FUTURE DEVELOPMENTS
The Group will continue to concentrate on the significant opportunities in the engineering-led construction, mining, services and
public private partnerships sectors in Australia, and international markets including Asia and North and South America.
DIVIDENDS
A final dividend of 17.0 cents per share in respect of the year ended 31 December 2023 was declared and paid during the year
ended 31 December 2024.
CIMIC Group Limited Annual Report 2024 | Directors’ Report
2
Directors’ Report continued
ENVIRONMENTAL REGULATION
Under section 299(1)(f) of the Corporations Act, an entity is required to provide a summary of its environmental performance in
terms of compliance with Australian environmental regulations.
Within Australia, the Company is required to report under the NGER Scheme. In addition, the Operating Companies are subject to
project specific regulations across the various jurisdictions in which they operate. Failure to comply with these corporate and
project specific requirements may result in penalties such as remediation of damage, court injunctions, and criminal and civil
penalties.
To assist the Board in discharging its responsibilities the Company has adopted a governance framework which provides for:
the delegation of accountability for achieving compliance with regulatory requirements (and other requirements) to the most
appropriate person or group within the organisation; and
an assurance and reporting process for the evaluation and oversight of compliance with these requirements to the Board.
In FY24:
the Company submitted its NGER Scheme report with EY, our NGER Scheme external auditor, providing limited assurance; and
across the 133.0 million hours worked on projects there were no material breaches of legislation or conditions of approval
(i.e., those resulting in prosecution, significant financial penalties or contractual action against the Company, executive officers
or individuals). However, there were 23 breaches (FY23: 12 breaches) which involved notifications to or written warnings from
environmental regulators with no material fines, the details of which are set out in the 2024 Annual Review and Sustainability
Report available at: www.cimic.com.au.
For further information regarding the Company’s environmental governance, management approach and performance (which
extends beyond compliance), please refer to the Sustainability Report.
REMUNERATION OF KEY MANAGEMENT PERSONNEL
Information about the remuneration of key management personnel is included in Note 35(a): Key management personnel (KMP)
and Directors.
INDEMNITY FOR COMPANY OFFICERS AND AUDITORS
CONSTITUTION
The Constitution includes indemnities in favour of people who are, or have been, an ‘Officer’ of the Company. ‘Officer’ is defined in
the Constitution as any director, alternate director or secretary of the Company or its related bodies corporate.
The Constitution states that, to the full extent permitted by law, the Company indemnifies each Officer, against all losses, liabilities,
costs, charges and expenses incurred while acting in that capacity.
DIRECTORS’ DEED OF INDEMNITY
The Company has entered into deeds of indemnity, insurance and access with its current and former Directors. Under each
director’s deed, the Company indemnifies the Director to the extent permitted by law against any liability (including liability for
legal defence costs) incurred by the Director as an Officer or former Officer of the Company or any Operating Company, or while
acting at the request of the Company or any Operating Company as an Officer of a non-controlled entity.
DEEDS OF INDEMNITY FOR CERTAIN OFFICERS AND EMPLOYEES
The Company has entered into deeds of indemnity with particular Officers, employees or former Officers and employees of the
Company and Operating Companies. These deeds of indemnity give indemnities in favour of those Officers, employees or former
Officers and employees in respect of liabilities incurred by them while acting in their applicable capacities in the Company or any
Operating Company, or while acting at the request of the Company or any Operating Company as an Officer or employee of a non-
controlled entity.
The Officers and employees who have the benefit of a deed of indemnity are, or were at the time:
a Director, Company Secretary, General Counsel or an executive (in a role that has been approved by the CEO, CFO or
Company Secretary) of the Company, an Operating Company or a subsidiary of an Operating Company; or
a Director, Company Secretary or an executive (in a role that has been approved by the CEO, CFO or Company Secretary) of a
non-controlled entity at the request of the Company or an Operating Company.
CIMIC Group Limited Annual Report 2024 | Directors’ Report
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Directors’ Report continued
INDEMNITY FOR COMPANY OFFICERS AND AUDITORS CONTINUED
INSURANCE FOR GROUP OFFICERS
During and since the end of FY24, the Company has paid or agreed to pay premiums in respect of contracts insuring individuals who
are or have been an Officer against certain liabilities (including legal costs) incurred in that capacity.
Under the directors’ deeds and the deeds of indemnity described above, the Company has undertaken to the relevant Officer,
employee or former Officer or employee that it will insure the Officer or employee against certain liabilities incurred in their
applicable capacity in the Company or any Subsidiary or as an Officer or employee of a non-controlled entity where the position is,
or was, held at the request of the Company or any Subsidiary.
The insurance contracts entered into by the Company prohibit disclosure of the specific nature of the liabilities covered by the
insurance contracts and the amount of the premiums.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is included on page 4.
ROUNDING OF AMOUNTS
The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191, the Directors have chosen to round amounts in this Directors’ Report and the accompanying financial report to the
nearest hundred thousand dollars, unless otherwise indicated.
This Directors’ report is signed in accordance with a resolution of the directors made pursuant to s.298(2) of the Corporations Act
2001.
On behalf of the Directors
Pedro Vicente Maese
Chief Executive Officer and Director
Sydney, 13 February 2025.
Liability limited by a scheme approved under Professional Standards Legislation.
4
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Deloitte Touche Tohmatsu
A.B.N. 74 490 121 060
Quay Quarter Tower
50 Bridge Street
Sydney NSW 2000
PO Box N250 Grosvenor Place
Sydney NSW 1220 Australia
Tel: +61 (0) 2 9322 7000
www.deloitte.com.au
13 February 2025
Dear Directors
Auditor’s Independence Declaration to CIMIC Group Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the Directors of CIMIC Group Limited.
As lead audit partner for the audit of the financial report of CIMIC Group Limited for the year ended 31 December
2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
•
any applicable code of professional conduct in relation to the audit.
Yours faithfully
DELOITTE TOUCHE TOHMATSU
Jason Thorne
Partner
Chartered Accountants
The Directors
CIMIC Group Limited
25/177 Pacific Highway
NORTH SYDNEY NSW 2060
CIMIC Group Limited Annual Report 2024 | Financial Report
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Financial Report
TABLE OF CONTENTS
Page
Consolidated Statement of Profit or Loss
6
Consolidated Statement of Other Comprehensive Income
7
Consolidated Statement of Financial Position
8
Consolidated Statement of Changes in Equity
9
Consolidated Statement of Cash Flows
10
Notes to the Consolidated Financial Statements
11
1. Summary of accounting policies
11
2. Revenue
24
3. Expenses
24
4. Net finance income / (costs)
25
5. Auditors’ remuneration
25
6. Income tax expense
26
7. Cash and cash equivalents
27
8. Trade and other receivables
27
9. Current tax assets
28
10. Inventories
29
11. Investments accounted for using the equity method
29
12. Other investments
30
13. Deferred taxes
31
14. Property, plant and equipment
32
15. Intangibles
33
16. Trade and other payables
35
17. Current tax liabilities
35
18. Provisions
35
19. Interest bearing liabilities
36
20. Lease liabilities
36
21. Share capital
37
22. Reserves
38
23. Retained earnings
39
24. Dividends
40
25. Associates
40
26. Joint venture entities
42
27. Joint operations
44
28. Notes to the Statement of Cash Flows
47
29. Acquisitions and disposals
49
30. Commitments
52
31. Contingent liabilities
53
32. Capital risk management
54
33. Financial instruments
55
34. Employee benefits
75
35. Related party disclosures
76
36. CIMIC Group Limited and controlled entities
79
37. New accounting standards
91
38. Events subsequent to reporting date
91
Consolidated Entity Disclosure Statement
92
Directors’ Declaration
100
Independent Auditor’s Report to the Members of CIMIC Group Limited
101
CIMIC Group Limited Annual Report 2024 | Financial Report
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Consolidated Statement of Profit or Loss
for the 12 months to 31 December 2024
Note
12 months to
December 2024^
$m
12 months to
December 2023
$m
Revenue
2
16,757.6
13,279.3
Expenses
3
(16,596.2)
(12,753.0)
Finance income
4
82.1
78.2
Finance costs
4
(475.0)
(263.5)
Share of profits of associates and joint ventures
25, 26
39.5
153.3
Other gains
29
972.2
-
Profit before tax
780.2
494.3
Income tax benefit / (expense)
6
5.9
(55.6)
Profit for the year
786.1
438.7
(Profit) / loss for the year attributable to non-controlling interests
(113.6)
(3.5)
Profit for the year attributable to shareholders of the parent entity
672.5
435.2
Dividends per share - Final
24
-
17.0¢
Dividends per share - Interim
24
-
39.0¢
^Includes consolidation of Thiess Group Holdings Pty Ltd results for eight months following acquisition on 23 April 2024.
The consolidated statement of profit or loss is to be read in conjunction with the notes to the consolidated financial report.
CIMIC Group Limited Annual Report 2024 | Financial Report
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Consolidated Statement of Other Comprehensive Income
for the 12 months to 31 December 2024
Note
12 months to
December 2024
$m
12 months to
December 2023
$m
Profit for the year attributable to shareholders of the parent entity
672.5
435.2
Other comprehensive income attributable to shareholders of the parent entity:
Items that may be reclassified to profit or loss:
-
Foreign exchange translation differences
22
34.4
3.4
-
Effective portion of changes in fair value of cash flow hedges (net of tax)
22
8.9
(36.2)
Items that will not be reclassified to profit or loss:
-
Fair value gain on investments designated as fair value through other comprehensive
income (net of tax)
22
11.2
7.4
Other comprehensive income / (loss) for the year
54.5
(25.4)
Total comprehensive income for the year attributable to shareholders
of the parent entity
727.0
409.8
Total comprehensive income for the year attributable to shareholders
of the parent entity:
Total comprehensive income for the year
841.7
413.3
Total comprehensive income for the year attributable to non-controlling interests
(114.7)
(3.5)
Total comprehensive income for the year attributable to shareholders
of the parent entity
727.0
409.8
The consolidated statement of other comprehensive income is to be read in conjunction with the notes to the consolidated financial
report.
CIMIC Group Limited Annual Report 2024 | Financial Report
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Consolidated Statement of Financial Position
as at 31 December 2024
Note
31 December
2024
$m
31 December
2023
$m
Assets
Cash and cash equivalents
7
2,660.7
2,498.9
Trade and other receivables
8
4,428.4
3,135.8
Current tax assets
9
204.2
156.6
Inventories: consumables and development properties
10
613.4
259.0
Total current assets
7,906.7
6,050.3
Trade and other receivables
8
590.8
339.1
Inventories: development properties
10
67.2
67.3
Investments accounted for using the equity method
11
595.7
1,893.4
Other investments
12
152.3
320.1
Deferred tax assets
13
487.0
297.1
Property, plant and equipment
14
2,506.5
535.4
Intangibles
15
4,794.6
971.3
Total non-current assets
9,194.1
4,423.7
Total assets
17,100.8
10,474.0
Liabilities
Trade and other payables
16
6,516.9
5,007.4
Current tax liabilities
17
19.1
24.4
Provisions
18
511.2
294.1
Financial liability
28
1,073.0
-
Interest bearing liabilities
19
51.6
-
Lease liabilities
20
397.1
82.6
Total current liabilities
8,568.9
5,408.5
Trade and other payables
16
532.4
179.0
Provisions
18
54.3
19.7
Interest bearing liabilities
19
5,823.1
3,045.0
Lease liabilities
20
539.6
154.8
Deferred tax liabilities
13
198.8
-
Total non-current liabilities
7,148.2
3,398.5
Total liabilities
15,717.1
8,807.0
Net assets
1,383.7
1,667.0
Equity
Share capital
21
1,458.7
1,458.7
Reserves
22
(1,526.3)
(469.5)
Retained earnings
23
1,299.0
683.2
Total equity attributable to equity holders of the parent
1,231.4
1,672.4
Non-controlling interests
152.3
(5.4)
Total equity
1,383.7
1,667.0
The consolidated statement of financial position is to be read in conjunction with the notes to the consolidated financial report.
CIMIC Group Limited Annual Report 2024 | Financial Report
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Consolidated Statement of Changes in Equity
for the 12 months to 31 December 2024
Note
Share
capital
Reserves
Retained
earnings
Attributable
to equity
holders
Non-
controlling
interests
Total
equity
$m
$m
$m
$m
$m
$m
Total equity at 1 January 2023
1,458.7
(448.9)
433.1
1,442.9
(6.5)
1,436.4
Profit for the year
-
-
435.2
435.2
3.5
438.7
Other comprehensive loss
-
(25.4)
-
(25.4)
-
(25.4)
Transactions with shareholders in their
capacity as shareholders:
-
Dividends
24
-
-
(180.5)
(180.5)
(2.4)
(182.9)
Total transactions with shareholders
-
-
(180.5)
(180.5)
(2.4)
(182.9)
Other equity movements:
-
Transfer of reserve on disposal of
investment
-
4.6
(4.6)
-
-
-
-
Other
-
0.2
-
0.2
-
0.2
Total other equity movements
-
4.8
(4.6)
0.2
-
0.2
Total equity at 31 December 2023
1,458.7
(469.5)
683.2
1,672.4
(5.4)
1,667.0
Share
capital
Reserves
Retained
earnings
Attributable
to equity
holders
Non-
controlling
interests
Total
equity
$m
$m
$m
$m
$m
$m
Total equity at 1 January 2024
1,458.7
(469.5)
683.2
1,672.4
(5.4)
1,667.0
Profit for the year
-
-
672.5
672.5
113.6
786.1
Thiess Put Option
33 (a)
-
(1,073.0)
-
(1,073.0)
-
(1,073.0)
Other comprehensive income
-
53.4
-
53.4
1.1
54.5
Transactions with shareholders in their
capacity as shareholders:
-
Dividends
24
-
-
(52.9)
(52.9)
(17.0)
(69.9)
-
Acquisitions
-
-
-
-
60.0
60.0
-
Derecognition of reserves
22
-
(41.6)
-
(41.6)
-
(41.6)
Total transactions with shareholders
-
(41.6)
(52.9)
(94.5)
43.0
(51.5)
Other equity movements:
-
Transfer of reserve on disposal of
investment
22
-
3.8
(3.8)
-
-
-
-
Other
22
-
0.6
-
0.6
-
0.6
Total other equity movements
-
4.4
(3.8)
0.6
-
0.6
Total equity at 31 December 2024
1,458.7
(1,526.3)
1,299.0
1,231.4
152.3
1,383.7
The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated financial report.
CIMIC Group Limited Annual Report 2024 | Financial Report
10
Consolidated Statement of Cash Flows
for the 12 months to 31 December 2024
Note
12 months to
December 2024
$m
12 months to
December 2023
$m
Cash flows from operating activities
Cash receipts in the course of operations (including GST)
18,224.7
13,908.7
Cash payments in the course of operations (including GST)
(16,549.9)
(13,634.8)
Operating cash flow
1,674.8
273.9
Interest received
82.7
80.3
Finance costs paid
(403.0)
(214.2)
Income taxes paid
(205.4)
(17.9)
Net cash inflow / (outflow) from operating activities
28 (a)
1,149.1
122.1
Cash flows from investing activities
Payments for intangibles
(19.3)
(9.9)
Payments for property, plant and equipment
(548.6)
(206.1)
Payments for development expenditure
(134.7)
(47.0)
Proceeds from sale of property, plant and equipment
55.6
18.0
Proceeds from sale of investments
0.4
682.3
Cash acquired from acquisition of investments
112.8
1.3
Cash disposed from sale of investments
-
(1.3)
Dividends from investments
-
33.6
Loans to associates and joint ventures
(5.1)
(8.0)
Payments for investments
(554.5)
(86.4)
Net cash inflow / (outflow) from investing activities
(1,093.4)
376.5
Cash flows from financing activities
Repayment of financial liability
-
(34.0)
Proceeds from borrowings
3,866.1
2,617.1
Repayment of borrowings
(3,437.6)
(2,872.6)
Repayment of leases
(258.8)
(98.0)
Dividends to shareholders of the Company
24
(52.9)
(180.5)
Advances to non-controlling interests
(52.4)
-
Net cash (outflow) / inflow from financing activities
64.4
(568.0)
Net (decrease) / increase in cash held
120.1
(69.4)
Cash and cash equivalents at the beginning of the period
2,498.9
2,569.0
Effects of exchange rate fluctuations on cash held
41.7
(0.7)
Cash and cash equivalents at reporting date
7
2,660.7
2,498.9
The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated financial report.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
11
1. SUMMARY OF ACCOUNTING POLICIES
Statement of compliance
CIMIC Group Limited (the Company) is a company domiciled in Australia. The consolidated financial statements of the Company
comprise the Company and its controlled entities (the Consolidated Entity or Group) and the Consolidated Entity’s interest in
associates and joint arrangements.
The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting
Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and in accordance with the Corporations Act
2001. The financial report of the Consolidated Entity also complies with IFRS Accounting Standards as adopted by the International
Accounting Standards Board (IASB).
The standards, amendments to standards and interpretations available for early adoption at reporting date that have not been
applied in preparing this financial report are detailed in Note 37: New accounting standards.
The consolidated financial report was authorised for issue by the Directors on 13February 2025.
Basis of preparation
Presentation
The financial report is presented in Australian dollars, which is the Company’s functional currency. All amounts disclosed in the
financial report relate to the Group unless otherwise stated. The financial report has been prepared on the historical cost basis,
except for financial instruments and investment properties that have been measured at fair value. These financial statements have
been prepared on a going concern basis, after taking into consideration all drawn and undrawn facilities.
The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financial / Directors’ Reports) Instrument
2016/191 and in accordance with that ASIC Instrument, amounts in the financial report have been rounded off to the nearest
hundred thousand dollars, unless otherwise stated.
Market conditions
The industries in which the Group operates have seen inflation moderating in recent months. The Group continues to manage this
risk through contractual mechanisms and leveraging its existing supply chain, upfront procurement contracts and financial hedging
strategies.
The Group’s key demand drivers include related infrastructure demand from expanding population, commodity prices, transition to
renewable energy related infrastructure and technology. Despite softening macro-economic factors, Government spending,
population growth and commodity production volumes remain at strong levels.
Notwithstanding possible future uncertainties, the outlook across the Group’s core markets remain positive with strong levels of
work in hand. The Group continues to monitor macro‐economic and other risk factors. It considers the possible impacts that these
uncertainties may have on liquidity assessments, asset valuation and contract cost forecasts.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
12
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
Accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and are believed to be reasonable under the
circumstances. Revisions to estimates are recognised in the period in which the estimate is revised and in any future period
affected.
CIMIC integrates environmental, social and governance (ESG) factors, and specifically the risks and opportunities of climate change,
into its business operations. ESG is integrated into the group governance, strategy, risk management, and the setting of - and
measuring against - metrics and targets. The possible impacts of ESG factors have been considered in the financial report. CIMIC is
committed to operating sustainably and detailed reporting on its ESG performance and progress is set out in the Group’s 2024
Annual Review and Sustainability Report available at: www.cimic.com.au.
Judgements made in the application of AASBs that could have a significant effect on the financial report and estimates with a risk of
adjustment in the next year are as follows:
Construction and services projects:
- Determination of stage of completion;
- Estimation of total contract costs;
- Determination of onerous contracts;
- Estimation of total contract revenue, including recognising revenue on contract variations and claims only to the extent it is
highly probable that a significant reversal in the amount recognised will not occur in the future;
- Estimation of project completion date; and
- Assumed levels of project execution productivity.
Determination of control or joint control:
We continually reassess facts and circumstances based on currently available information to consider, under Australian Accounting
Standards, if changes are required to previous conclusions regarding control or joint control determinations.
Investment in Thiess:
Accounting for acquisitions in stages: Acquisition of additional 10% of Thiess Group Holdings Pty Ltd and its controlled entities
On 23 April 2024, CIMIC Group Limited acquired an additional 10% of Thiess comprising a portion of the ordinary shares,
Preference A shares and Preference C shares in Thiess Group Holdings Pty Ltd (Thiess) held by funds advised by Elliott Advisors (UK)
Ltd (Elliott). The acquisition, for a cash purchase price of $320.0 million, increases CIMIC’s ownership of Thiess to 60%.
CIMIC and Elliott continue to have equal Thiess board representation while revisions to the shareholders agreement mean that
CIMIC strengthens its governance over the day-to-day operations of the company. Consequently, CIMIC has the ability to direct
Thiess’ relevant activities and results in Thiess becoming a controlled entity of CIMIC under Australian Accounting Standards, with
Elliott’s retained interest recognised within non-controlling interests in the statement of financial position.
The terms of the 23 April 2024 transaction mean that the existing Elliott put option (‘Put Option’), over the ordinary shares and
Class A Preference shares, is now exercisable from 22 April 2025 to 31 December 2026. The existing Elliott Hybrid Put Option
(‘Hybrid Option’) over the Class C Preference Shares are puttable the earlier of six months after exercise of the Put Option or six
months after the end of the Put Option period.
Accordingly, amounts of $920.0 million and $153.0 million, totalling $1,073.0 million, without adjustment for the probability of the
assets being put to CIMIC, have been recognised in the statement of financial position reflecting the present value of the gross
redemption amount of the ordinary and Class A Preference Shares and the face value of the Preference C Shares. CIMIC holds a call
option to acquire the Class C preference shares from Elliott, for a period of 42 months, starting at the end of the Put Option period
or the date when Elliott ceases to own any Class A preference shares or ordinary shares.
These options were previously recognised as derivative financial instruments in accordance with AASB 9: Financial Instruments at
fair value. As a consequence of the 23 April 2024 transaction and the required consolidation of Thiess, the Put Option and Hybrid
Option are required to be recognised as an option over non-controlling interest and the present value of the gross redemption
value is recognised as a financial liability alongside a reduction in the parent’s equity within reserves.
Refer to Note 29: Acquisitions and Disposals and Note 33: Financial Instruments, for further information.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
13
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
Accounting estimates and judgements continued
Estimation of allowance for expected credit losses:
The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised
cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For
trade receivables, contract debtors and lease receivables, the Group applies the simplified approach permitted by AASB 9: Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Refer to Note 8:
Trade and other receivables and Note 35: Related party disclosures.
Leasing:
- Determination of the existence of leases;
- Estimation of residual value guarantees and buy out options of lease liabilities; and
- Estimation of lease extension options, refer to Note 20: Lease liabilities.
Asset disposals:
- Other assets: determination as to whether the significant risks and rewards of ownership have transferred, refer to Note 1:
Summary of accounting policies.
Estimation of the economic life of property, plant and equipment and intangibles, refer to Note 14: Property, plant and
equipment and Note 15: Intangibles.
Asset impairment testing, including assumptions in value in use calculations, refer to Note 15: Intangibles.
Assessment of measurement and classification of financial instruments including fair values and trade finance arrangements,
refer to Note 33: Financial instruments.
Determination of the fair value of assets and liabilities arising from business combinations.
Uncertain tax positions:
- The Company has utilised the most likely outcome method in determining the relevant tax liabilities associated with uncertain
tax positions, as this best predicts the resolution of the uncertainty.
New and amended standards adopted by the Company
New and amended standards adopted by the Company
In the current year, the Group has applied a number of new and revised accounting standards and amendments that are
mandatorily effective for an accounting period that begins on or after 1 January 2024, as follows:
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current, AASB
2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current – Deferral of
Effective Date
AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants
AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback
AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements
While the standards listed above introduce new disclosure requirements, they do not materially affect the Group’s accounting
policies or any of the amounts recognised in the financial statements.
Basis of consolidation
Subsidiaries
The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity.
Results of controlled entities are included in the consolidated statement of profit or loss from the date control is obtained or
excluded from the date the entity is no longer controlled. Intragroup balances and transactions, and any unrealised gains or losses
arising from intragroup transactions, are eliminated in preparing the consolidated financial statements.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
14
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
Basis of consolidation continued
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and
non-controlling interests to reflect their relative interests in the controlled entity.
Any difference between the amount of the adjustment to non-controlling interests and the fair value of the consideration paid or
received is recognised in the equity reserve. When the Group ceases to have control, any retained interest in the entity is re-
measured to its fair value with the change in carrying amount recognised in profit or loss.
Controlled entities
Investments in controlled entities are carried in the Company’s financial statements at cost less impairment.
Investments in associates
Associates are those entities in which the Group has significant influence, but not control or joint control, over the entity.
Significant influence is presumed to exist when the Group owns between 20% and 50% of the voting power of another entity.
Investments in associates are accounted for using the equity method and recognised initially at cost. The cost of the investments
includes transaction costs and goodwill on acquisition.
The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of equity
accounted investments, after adjustments for impairment and after aligning the accounting policies with those of the Group, from
the date that significant influence commences until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an equity accounted investment, the carrying value of the investment,
including any long-term interests that form part thereof, is reduced to zero, and the recognition of further loss is discontinued
except to the extent that the Company has an obligation or has made payments on behalf of the investee.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in these
entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Joint arrangements
Under AASB 11: Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint ventures
depending on the contractual rights and obligations each investor has, rather than the legal structure of the joint arrangement. The
Company has assessed the nature of its joint arrangements and determined to have both joint operations and joint ventures.
Joint operations
The Group recognises its direct right, and its share of, jointly held assets, liabilities, revenues and expenses of joint operations.
These have been incorporated in the financial statements under the appropriate headings. Details of joint operations are set out in
Note 27: Joint operations.
Joint ventures
Interests in joint ventures are accounted for using the equity method. Under this method, the interests are initially recognised in
the consolidated statement of financial position at cost, including transaction costs and goodwill on acquisition, and adjusted
thereafter to recognise the Group’s share of the post-acquisition profits or losses and movements in other comprehensive income
in profit or loss and other comprehensive income respectively.
Where a joint venture held by the Group has outstanding cumulative preference shares, which are held by parties other than the
Group and are classified as equity by the joint venture, the Group computes its share of profit or loss from the joint venture after
adjusting for the dividends on the cumulative preference shares, whether or not the dividends have been declared. When the
Group’s share of losses in a joint venture equals or exceeds its interests in the joint venture (which includes any long-term interests
that, in substance, form part of the Group’s net investment in the joint ventures), the Group does not recognise further losses,
unless it has incurred obligations or made payments on behalf of the joint ventures.
Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in
the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Accounting policies of the joint ventures have been adjusted where necessary, to ensure consistency with the policies
adopted by the Group.
Other investments
Other investments are accounted for as fair value through profit and loss or other comprehensive income financial assets on a case
by case basis.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
15
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
a)
Revenue recognition
Engineering and Construction revenue
The Group derives revenue from the long-term construction of major infrastructure projects, including roads, railways, tunnels,
airports, buildings, social infrastructure, water, renewable energy, energy transmission and storage, and resources facilities across
Australia and Asia. Contracts entered into may be for the construction of one or several separate inter-linked pieces of large
infrastructure. The construction of each individual piece of infrastructure is generally taken to be one performance obligation.
Where contracts are entered for the building of several projects the total transaction price is allocated across each project based
on stand-alone selling prices. The contracts with clients are under various risk appropriate commercial models, including lump sum,
cost plus, alliance and incentivised target costs. The transaction price is normally fixed at the start of the project. It is normal
practice for contracts to include bonus and penalty elements based on timely construction or other performance criteria known as
variable consideration, discussed below.
The performance obligation is fulfilled over time and as such revenue is recognised over time. As work is performed on the assets
being constructed, they are controlled by the customer and have no alternative use to the CIMIC Group, with the Group having a
right to payment for performance to date.
Generally, contracts identify various inter-linked activities required in the construction process. Revenue is recognised on the
measured output, or input if deemed more appropriate to do so, of each process based on appraisals that are agreed with the
customer on a regular basis.
Revenue earned is typically invoiced monthly or in some cases on achievement of milestones or to match major capital outlay.
Invoices are paid on normal commercial terms, which may include the customer withholding a retention amount until finalisation
of the construction. Certain construction projects entered into receive payment prior to work being performed in which case
revenue is deferred on the balance sheet.
Integrated Solutions (Services) revenue
The Group performs maintenance, mineral processing and other services for a variety of different industries. Contracts entered
into can cover servicing of related assets which may involve various different processes. These processes and activities tend to be
highly inter-related and the Group provides a significant service of integration for these assets under contract. Where this is the
case, these are taken to be one performance obligation. The total transaction price is allocated across each service or performance
obligation and, where linked, the construction of the relevant asset. The transaction price is allocated to each performance
obligation based on contracted prices. The total transaction price may include variable consideration.
Performance obligations are fulfilled over time as the Group enhances assets which the customer controls, for which the Group
does not have an alternative use and for which the Group has right to payment for performance to date. Revenue is recognised in
the accounting period in which the services are rendered based on the amount of the expected transaction price allocated to each
performance obligation. Customers are in general invoiced on a monthly basis for an amount that is calculated on either a schedule
of rates or a cost plus basis that are aligned with the stand alone selling prices for each performance obligation. Payment is
received following invoice on normal commercial terms.
Natural Resources revenue
Natural resources revenue is a new line of business, arising from the consolidation of Thiess.
The Group performs mining services incorporating mining and mineral processing from various mine sites, rehabilitation, asset
management and maintenance, equipment hire and plant sales within Australia, Asia and the Americas. Contracts often include
multiple obligations for the services required to enable mine site development, extraction, processing and remediation. These
services can include operation and maintenance of processing facilities, topsoil stripping, drill and blast, excavation, processing,
rehabilitation and mine closure. The transaction price is allocated to each performance obligation based on the stand-alone selling
price. The total transaction price may include a variable pricing element which is accounted for in accordance with the Group’s
policy on variable consideration. Performance obligations (outputs) are fulfilled over time with revenue recognised in the
accounting period in which the mining or mineral processes services are rendered based on the amount of the expected
transaction price allocated to each performance obligation as the customer continues to control the asset as it is enhanced.
Customers are typically invoiced on a monthly basis for an amount that is calculated on a schedule of rates that is aligned with the
stand-alone selling prices for each performance obligation. Payment is received following invoice on normal commercial terms.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
16
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
a) Revenue recognition continued
Variable consideration
It is common for contracts to include performance bonuses or penalties assessed against the timeliness or cost effectiveness of
work completed or other performance related KPIs. Where consideration in respect of a contract is variable, the expected value of
revenue is only recognised when the uncertainty associated with the variable consideration is subsequently resolved, known as
“constraint” requirements. The Group assesses the constraint requirements on a periodic basis when estimating the variable
consideration to be included in the transaction price. The estimate is based on all available information including historic
performance. Where modifications in design or contract requirements are entered into, the transaction price is updated to reflect
these. Where the price of the modification has not been confirmed, an estimate is made of the amount of revenue to recognise
whilst also considering the constraint requirement.
Contract assets and liabilities
AASB 15: Revenue from Contract with Customers uses the terms ‘contract asset’ and ‘contract liability’ to describe what is
commonly known as ‘accrued revenue’ and ‘deferred revenue’. Contract receivables represent receivables in respect of which the
Group’s right to consideration is unconditional subject only to the passage of time. Contract receivables are non-derivative financial
assets accounted for in accordance with the Group’s accounting policy for non-derivative financial assets set out in Note 1(d): Non-
derivative financial instruments. Contract assets represent the Group’s right to consideration for services provided to customers for
which the Group’s right remains conditional on something other than the passage of time. Contract liabilities arise where payment
is received prior to work being performed. Contract assets and contract liabilities are recognised and measured in accordance with
this accounting policy.
Contract fulfilment costs
Costs incurred prior to the commencement of a contract may arise due to mobilisation/site setup costs, feasibility studies,
environmental impact studies and preliminary design activities as these are costs incurred to fulfil a contract. Where these costs
are expected to be recovered, they are capitalised and amortised over the course of the contract consistent with the transfer of
service to the customer. Where the costs, or a portion of these costs, are reimbursed by the customer, the amount received is
recognised as deferred revenue and allocated to the performance obligations within the contract and recognised as revenue over
the course of the contract.
Financing components
The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the
customer and the payment received from the customer represents a financing component. As a consequence, the Group does not
adjust any of the transaction prices for the time value of money.
Warranties and defect periods
Generally construction and services contracts include defect and warranty periods following completion of the project. These
obligations are not deemed to be separate performance obligations and therefore the associated costs are estimated and included
in the total costs of the contracts. Where required, amounts are recognised in accordance with AASB 137: Provisions, contingent
liabilities and contingent assets.
Loss making contracts
Loss making contracts are recognised in accordance with AASB 137: Provisions, contingent liabilities and contingent assets as
onerous contracts.
b)
Finance costs
Finance costs are recognised as expenses in the period in which they are incurred, except where they are included in the costs of
qualifying assets. The capitalisation rate used to determine the amount of finance costs to be capitalised to qualifying assets is the
weighted average interest rate applicable to the entity’s borrowings during the period.
Finance costs include interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums
relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings, lease liability
charges and certain exchange differences arising from foreign currency borrowings.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
17
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
c)
Income tax
Deferred tax assets are recognised for deductible temporary differences only if it is probable that future taxable amounts will be
available to utilise those temporary differences. The Group forms part of a tax consolidated group of which HOCHTIEF Australia
Holdings Limited, the ultimate Australian parent, is the head entity. The head entity recognises all of the current tax assets and
liabilities and deferred tax assets in respect of Australian tax losses of the tax consolidated group (after elimination of intra group
transactions). Deferred tax assets and liabilities in respect of temporary differences are recognised in the subsidiaries’ financial
statements.
The Tax Consolidated Group has entered into a tax funding agreement that requires wholly owned subsidiaries to make
contributions to the head entity for current tax assets and liabilities occurring after the implementation of tax consolidation. Under
the tax funding agreement, the contributions are calculated using the “group allocation” approach so that the contributions are
equivalent to the current tax balances generated by transactions entered into by wholly owned subsidiaries. The contributions are
payable as set out in the agreement and reflect the timing of the head entity’s obligations to make payments for tax liabilities to
the relevant tax authorities. The assets and liabilities arising under the tax funding agreement are recognised as intercompany
assets and liabilities with a consequential adjustment to current tax assets.
d)
Non-derivative financial instruments
Non-derivative financial assets
(i)
Classification
The Group classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value (either through other comprehensive income, or profit or loss); and
those to be measured at amortised cost.
The classification depends on the Group’s business model for managing financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For
investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity
instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of
initial recognition to account for the equity investment at fair value through other comprehensive income. The Group reclassifies
debt investments when and only when its business model for managing those assets changes.
(ii)
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit or loss are expensed in profit or loss. Measurement of cash and cash equivalents
and trade and other receivables remains at amortised cost consistent with the comparative period.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, cash at bank and call deposits. For the purposes of the statement of cash flows,
net cash includes cash on hand, at bank and short term deposits at call, net of bank overdrafts where there is an ability to offset
and an intention to settle.
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow
characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments as
follows:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or
impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.
Fair value through other comprehensive income (FVOCI): Assets that are held for collecting contractual cash flows on specific
dates and through sales. A gain or loss on a debt investment that is subsequently measured at FVOCI is recognised in other
comprehensive income. None are currently held by the Group or at any point during the year.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
18
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
d)
Non-derivative financial instruments continued
Fair value through profit or loss (FVPL): Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair
value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or
loss and is not part of a hedging relationship is recognised in profit or loss and the net gain or loss is presented in the
statement of profit or loss within other gains/(losses) in the period in which it arises. None are currently held by the Group or
at any point during the year.
Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair
value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value
gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be
recognised in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of
financial assets at fair value through profit or loss are recognised in other expenses in the statement of profit or loss as applicable.
(iii)
Impairment
The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised
cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables, contract debtors and lease receivables, the Group applies the simplified approach permitted by AASB 9:
Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. The
methodology and basis for credit risk evaluation and impairment is detailed in Note 33(b): Financial instruments – Financial risk
management.
Non-derivative financial liabilities
Interest bearing liabilities
All loans and borrowings are initially recognised at fair value, being the amount received less attributable transaction costs. After
initial recognition, interest bearing liabilities are stated at amortised cost with any difference between cost and redemption value
being recognised in the statement of profit or loss over the period of the borrowings on an effective interest basis.
Trade and other payables
Liabilities are recognised for amounts to be paid for goods or services received. Trade payables are settled on terms aligned with
the normal commercial terms in the Group’s countries of operation.
e)
Derivative financial instruments
Derivative financial instruments are stated at fair value, with changes in fair value recognised in the profit or loss. Where derivative
financial instruments qualify for hedge accounting, recognition of changes in fair value depends on the nature of the item being
hedged. Hedge accounting is discontinued when the hedging relationship is revoked, the hedging instrument expires, is sold,
terminated, exercised, or no longer qualifies for hedge accounting.
The Group documents at the inception of the hedging transaction the economic relationship between hedging instruments and
hedged items including whether the instrument is expected to offset changes in cash flows of hedged items. The Group documents
its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in
the cash flow hedge reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value
basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss,
within other expenses.
When option contracts are used to hedge forecast transactions, the Group designates only the intrinsic value of the option contract
as the hedging instrument. Gains or losses relating to the effective portion of the change in intrinsic value of the option contracts
are recognised in the cash flow hedge reserve in equity. The changes in the time value of the option contracts that relate to the
hedged item (‘aligned time value’) are recognised within other comprehensive income in the costs of hedging reserve within equity.
When forward contracts are used to hedge forecast transactions, the Group generally designates only the change in fair value of
the forward contract related to the spot component as the hedging instrument. Gains or losses relating to the effective portion of
the change in the spot component of the forward contracts are recognised in the cash flow hedge reserve in equity.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
19
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
e)
Derivative financial instruments continued
The change in the forward element of the contract that relates to the hedged item is recognised within other comprehensive
income in the costs of hedging reserve within equity. In some cases, the entity may designate the full change in fair value of the
forward contract (including forward points) as the hedging instrument. In such cases, the gains or losses relating to the effective
portion of the change in fair value of the entire forward contract are recognised in the cash flow hedge reserve within equity.
When cross-currency contracts are used to hedge cross-currency risk for both principal and interest for the life of the exposure, the
Group typically uses cross currency interest rate swaps to convert long term foreign currency borrowings into AUD to meet the
principal and interest obligations under the swaps. The change in the currency basis spread element of the contract that relates to
the hedged item is recognised within other comprehensive income in the costs of hedging reserve within equity.
When cross-currency contracts are used to hedge forecast transactions, the Group typically will designate the change in fair value
of the cross-currency contract related to the spot component as the hedging instrument. Gains or losses relating to the effective
portion of the change in the spot component of the cross-currency contracts are recognised in the cash flow hedge reserve in
equity. The change in the currency basis spread element of the contract that relates to the hedged item is recognised within other
comprehensive income in the costs of hedging reserve within equity.
Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss, as follows:
the gain or loss relating to the effective portion of forward and option contracts are ultimately recognised in profit or loss as
the hedged item affects profit or loss within expenses.
the gain or loss relating to the effective portion of the interest rate swaps hedging variable rate borrowings is recognised in
profit or loss within ‘finance cost’ as the hedged item affects profit or loss within expenses.
When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting,
any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast
transaction occurs, resulting in the recognition of a non-financial asset such as inventory. When the forecast transaction is no
longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately
reclassified to profit or loss. Hedge ineffectiveness is recognised in profit or loss within other expenses.
Put and call options to acquire assets
Put and call options are accounted for as derivatives in accordance with AASB 9: Financial Instruments, except put options over
non-controlling interest, and are therefore held at fair value through profit and loss in the financial statements each period.
f)
Inventories
Inventories are carried at the lower of cost and net realisable value and comprise of the following.
Property developments
Cost includes the costs of acquisition, development and holding costs such as rates, taxes and finance costs. Holding costs on
property developments not under active development are expensed as incurred.
Raw materials and consumables
Cost is based on the weighted average principle and includes expenditure incurred in acquiring the inventories and bringing them
to their existing condition and location.
g)
Assets held for sale and liabilities associated with assets held for sale
Assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction, rather than through continuing use, and a sale is considered highly probable. They are measured at the lower of their
carrying amount and fair value less costs to sell.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to
sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative
impairment loss previously recognised.
Assets classified as held for sale are presented separately from the other assets in the statement of financial position. Assets are
not depreciated or amortised while they are classified as held for sale.
Interest and other expenses attributable to the liabilities associated with assets held for sale continue to be recognised.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
20
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
h)
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any impairment in value. The balance includes
right of use assets as discussed in i) Leases below.
Depreciation and amortisation
Depreciation and amortisation is calculated so as to write-off the net book values of property, plant and equipment over their
estimated effective useful lives as follows:
Leasehold land, buildings and improvements: straight line method, over the terms of the leases - up to 40 years;
Plant and equipment, for major plant and equipment, including component parts: cumulative number of hours worked - up to 10
years;
Right-of-use land and buildings: straight line method, over the terms of the leases - up to 40 years; and
Right-of-use plant and equipment: cumulative number of hours worked - up to 10 years.
Subsequent costs
Subsequent expenditure is included in the carrying amount of property, plant and equipment only when it is probable that the
associated future economic benefits will flow to the Group. All other costs are recognised in the statement of profit or loss.
i)
Leases
The Group as Lessee
The Group assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In such
instances, the Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements, except
for short term leases, cancellable leases that if cancelled by the lessee the losses associated with the cancellation are borne by the
lessor and low value leased assets. For these leases, the Group recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which
economic benefits from the leased assets are consumed.
The Group has a significant lease portfolio, comprising predominately property, plant, mining equipment and fleet vehicle rentals.
The Group’s operational involvement includes construction and services for which leased equipment is an important component of
the business.
Measurement and presentation of lease liability
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental
borrowing rate.
The following items are also included in the measurement of the lease liability:
fixed lease payments offset by any lease incentives;
variable lease payments, for lease liabilities, which are tied to a floating index;
the amounts expected to be payable to the lessor under residual value guarantees;
the exercise price of purchase options (if it is reasonably certain that the option will be exercised); and
payments of penalties for terminating leases, if the lease term reflects the lease terminating early.
The lease liability is separately disclosed on the statement of financial position. The liabilities which will be repaid within twelve
months are recognised as current and the liabilities which will be repaid in excess of twelve months are recognised as non-current.
The lease liability is subsequently measured by reducing the balance to reflect the principal lease repayments made and increasing
the carrying amount by the interest on the lease liability.
The Group is required to remeasure the lease liability and make an adjustment to the right-of-use asset in the following instances:
the term of the lease has been modified or there has been a change in the Group’s assessment of the purchase option being
exercised, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount
rate;
a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability
is remeasured by discounting the revised lease payments using a revised discount rate; and
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
21
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
i)
Leases continued
the lease payments are adjusted due to changes in the index or a change in expected payment under a guaranteed residual
value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate.
However, if a change in lease payments is due to a change in a floating interest rate, a revised discount rate is used.
Measurement and presentation of right-of-use asset
The right-of-use assets recognised by the Group comprise the initial measurement of the related lease liability, any lease payments
made at or before the commencement of the contract, less any lease incentives received and any direct costs. Costs incurred by the
Group to dismantle the asset, restore the site or restore the asset are included in the cost of the right-of-use asset.
It is subsequently measured under the cost model with any accumulated depreciation and impairment losses applied against the
right-of-use asset. If the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the right-of-use asset
is depreciated from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates
the asset over the shorter period of either the useful life of the asset or the lease term. The depreciation starts at the
commencement date of the lease and the carrying value of the asset is adjusted to reflect the accumulated depreciation balance.
Any remeasurement of the lease liability is also applied against the right-of-use asset value.
The right-of-use assets are presented within Property, Plant and Equipment in the statement of financial position.
The Group as Lessor
The Group enters into lease agreements as a lessor with respect to some property subleases as well as renting equipment to its
partners, suppliers and contractors.
The leases entered into by the Group are recognised as either finance or operating leases. If the terms of the lease agreement
transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. If this is not
the case, then the lease is recognised as an operating lease. The income received from operating leases is recognised on a straight-
line basis over the lease term. Initial direct costs incurred in negotiating and arranging operating leases are included in the carrying
amount of the leased asset. Amounts due from lessees under finance leases are recognised as receivables.
j)
Business combinations
The acquisition method of accounting is used to account for all business combinations. The consideration for the acquisition of a
controlled entity comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the
Group. The consideration transferred also includes the fair value of any pre-existing equity interest in the controlled entity.
Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities assumed in a business combination
are measured at their fair values at the acquisition date. On an acquisition by acquisition basis, the Group recognises any non-
controlling interest in the acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree’s net
identifiable assets. The excess of the consideration transferred over the fair value of the Group's share of the net identifiable
assets acquired is recorded as goodwill.
Where the consideration is less than the fair value of the net identifiable assets of the controlled entity acquired, the difference is
recognised directly in the statement of profit or loss as a gain on acquisition of a controlled entity.
k)
Intangible assets
Goodwill
Goodwill arising from business combinations is included in intangible assets. Goodwill on acquisition of associates is included in
equity accounted investments. Goodwill is not amortised but it is tested for impairment annually or more frequently if there is an
indication that it might be impaired. Goodwill is allocated to cash-generating units for the purpose of impairment testing.
Brand Names
Brand names acquired as part of a business combination are recognised separately from goodwill. Brand names are carried at their
fair value at the date of acquisition less accumulated amortisation and any impairment losses. Where brand names’ useful lives are
assessed as indefinite, the brand names are not amortised but are tested for impairment annually, or more frequently whenever
there is an indication that it might be impaired. Where brand names’ useful lives are assessed as finite, the brand names are
amortised over their estimated useful lives.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
22
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
k) Intangible assets continued
Customer contracts
Customer contracts acquired as part of a business combination are recognised separately from goodwill. Customer contracts are
carried at their fair value at the date of acquisition less accumulated amortisation and any impairment losses. Where customer
contracts’ useful lives are assessed as indefinite, the customer contract is not amortised but is tested for impairment annually, or
more frequently whenever there is an indication that it might be impaired. Where customer contracts’ useful lives are assessed as
finite, the customer contracts are amortised over their estimated useful lives.
IT systems
Costs incurred in developing systems and in acquiring software and licenses that are controlled by the Group that will provide
future economic benefits are capitalised to other intangible assets. Costs capitalised include external direct costs of materials and
services and directly attributable internal labour.
IT systems are amortised over their estimated useful lives of up to 10 years. IT systems are carried at cost less accumulated
amortisation and any impairment losses.
Costs related to access, configuration and customisation of unrestricted use Software as a Service arrangements are recognised as
an operating expense.
l)
Impairment
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, the asset’s recoverable amount is estimated. The recoverable amount of goodwill and
indefinite life intangible assets are reviewed at each reporting date irrespective of an indication of impairment.
An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. An asset’s recoverable
amount is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. The recoverable amount for an asset that does not generate largely independent cash flows is
determined for the cash-generating unit to which the asset belongs.
Impairment losses are recognised in the statement of profit or loss unless the asset has been previously revalued, in which case the
impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised in the statement
of profit or loss. Reversals of impairment losses, other than in respect of goodwill and FVOCI instruments, are recognised in the
statement of profit or loss.
m) Employee benefits
Liabilities in respect of employee benefits, which are not due to be settled within twelve months are discounted at period end using
rates that most closely match the terms of maturity of the related liabilities. Corporate bond rates are utilised where a deep market
exists. Rates from national government securities are utilised where a deep market for corporate bonds does not exist.
Wages, salaries, annual and long service leave
The provision for employee entitlements to wages, salaries and annual and long service leave represents the amount which the
Group has a present obligation to pay resulting from employees’ services provided up to the reporting date. Provisions have been
calculated based on expected wage and salary rates and include related on-costs. In determining the liability for these employee
entitlements, consideration is given to estimated future increases in wage rates, and the Group’s experience with staff departures.
Share-based payment transactions
The Group’s ultimate controlling parent entity, Actividades de Construcción y Servicios, SA (ACS), established a Long-Term Incentive
Plan for the period 2023 to 2028 (the Plan). ACS granted stock options to CIMIC Executive Board members and certain executives in
the CIMIC Group in 2023. The Plan will be settled by ACS using its own equity, and with no obligation by CIMIC to fund the scheme.
As such the Plan is considered to be equity settled in accordance with AASB 2: Share-based Payment. CIMIC recognises employee
expense and a corresponding deemed capital contribution from ACS.
Superannuation
Defined contribution superannuation plans exist to provide benefits for eligible employees or their dependants. Contributions by
the Group are expensed to the statement of profit or loss as incurred.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
23
1. SUMMARY OF ACCOUNTING POLICIES CONTINUED
m) Employee benefits continued
Retention arrangements
Retention arrangements are in place certain key employees which are payable upon completion of the retention period.
The provisions are accrued on a pro-rata basis during the retention period and have been calculated based on salary rates, including
related on-costs.
Annual bonus and deferred incentive arrangements
Annual bonuses and deferred incentives are provided at reporting date and include related on-costs. The Group recognises a
provision where there is a contractual or constructive obligation.
n)
Share capital
Ordinary share capital
Issued and paid up capital is recognised at its par value, being the consideration received by the Company.
Dividends
Provision is not made for dividends unless the dividend has been declared by the Directors, but not distributed, at or before the end
of the period.
o)
Foreign currency translation
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars. The functional currency of the Company is Australian
dollars.
Transactions
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions are recognised in the
statement of profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value are translated using the exchange rates at the date the fair value was determined.
Translation of controlled foreign entities
Assets and liabilities of controlled foreign entities are translated into the presentation currency at the rates of exchange at
reporting date and the statement of profit or loss is translated at the rates approximating foreign exchange rates ruling at the dates
of the transactions. The resulting exchange differences are taken directly to the foreign currency translation reserve. Exchange
gains and losses on transactions which form part of the net investments in foreign controlled entities together with any related
income tax effect are recognised in the foreign currency translation reserve on consolidation. On disposal of a foreign entity, the
deferred cumulative amount recognised in equity relating to that particular foreign entity is recognised in the statement of profit or
loss as part of the gain or loss on sale.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
24
2. REVENUE
12 months to
December 2024
$m
12 months to
December 2023
$m
Engineering and Construction revenue
7,745.9
8,990.5
Integrated Solutions revenue
4,594.8
4,174.7
Natural Resources revenue
4,344.7
-
Corporate and investments
72.2
114.1
Total revenue1
16,757.6
13,279.3
Revenue lines of business have been aligned to the Group’s strategic review and now comprise “Engineering and Construction”
(previously known as “Construction”), “Integrated Solutions” (previously “Services”) and “Natural Resources”, resulting from the
Group’s control of Thiess during the period. The Corporate and Investments line of business comprises the Group’s corporate
activity, EIC, Pacific Partnerships and the Group’s interest in joint ventures and associates.
1Included in revenue is a $(800.0) million revenue adjustment, of which $(133.0) million is a revenue constraint applied to variable
consideration to be agreed and $(667.0) million is a reversal of previously recognised revenue.
3. EXPENSES
Note
12 months to
December 2024
$m
12 months to
December 2023
$m
Materials
(3,186.4)
(2,931.2)
Subcontractors
(4,891.0)
(4,664.2)
Plant costs
(1,425.6)
(657.8)
Personnel costs
(5,370.5)
(3,774.2)
Depreciation and impairment of property, plant and equipment
14
(758.4)
(284.8)
Amortisation of intangibles
15
(33.4)
(15.4)
Net gain on sale of assets
20.6
8.7
Foreign exchange (loss) / gain
(18.2)
(3.1)
Lease expense
(201.7)
(118.4)
Design, engineering and technical consulting fees
(86.2)
(60.9)
Restructuring2
(50.0)
-
Other expenses3
(595.4)
(251.7)
Total expenses
(16,596.2)
(12,753.0)
2During the year, the Group announced an optimisation and efficiency review to its operational model; implementation of the
program commenced in the current financial year, with activity ongoing.
3Included in other expenses is an $(80.0) million cost provision recognised in the period, of which $(73.0) million has been utilised
in the period.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
25
4. NET FINANCE INCOME / (COSTS)
12 months to
December 2024
$m
12 months to
December 2023
$m
Finance income
Interest and other
82.1
78.2
Total finance income
82.1
78.2
Finance costs
Debt interest expense
(367.0)
(183.1)
Finance charge for lease liabilities
(39.6)
(11.9)
Facility fees, bonding and other finance costs
(50.8)
(49.2)
Impact of discounting
(17.6)
(19.3)
Total finance costs
(475.0)
(263.5)
Net finance costs
(392.9)
(185.3)
5. AUDITORS’ REMUNERATION
12 months to
December 2024
$’000
12 months to
December 2023
$’000
Deloitte Touche Tohmatsu and related network firms
Audit or review of financial reports
4,547
3,155
Other services
521
119
Total services
5,068
3,274
Other auditors and their related network firms
Audit or review of financial reports
265
26
Total services
265
26
The Group may use its auditor, Deloitte Touche Tohmatsu for non-statutory audit related services to utilise their expertise and
experience with the Group. These assignments are assessed and approved in accordance with the Group’s External Auditor
Independence Charter.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
26
6. INCOME TAX EXPENSE
12 months to
December 2024
$m
12 months to
December 2023
$m
Income tax expense recognised in the statement of profit or loss
Current tax expense
(22.1)
(103.8)
Deferred tax expense
20.9
67.4
(Under) / over provision in prior periods
7.1
(19.2)
Total income tax benefit/(expense) in statement of profit or loss
5.9
(55.6)
Deferred tax recognised directly in equity
Revaluation of cash flow and net investment hedges
0.2
2.8
Revaluation of investments
(4.4)
3.5
Total deferred tax benefit / (expense) recognised in equity
(4.2)
6.3
Reconciliation of prima facie tax to income tax expense
Profit before tax
780.2
494.3
Prima facie income tax expense at 30% (31 December 2023: 30%)
(234.1)
(148.3)
The following items have affected income tax expense for the year:
Equity accounted and joint venture income tax differential
11.8
46.8
Overseas income tax differential and foreign exchange
(9.2)
9.3
Financial investments differential
6.6
17.2
Capital benefits recognised
-
8.9
Other gains
291.6
-
Other1
(67.9)
29.7
Current period income tax expense
(1.2)
(36.4)
(Under) / over provision in prior periods
7.1
(19.2)
Income tax benefit / (expense)
5.9
(55.6)
1Includes income tax expense from tax losses not recognised of $39.5 million (31 December 2023: $68.8 million) and no tax
consolidation adjustment benefit (31 December 2023: $99.6 million), and other adjustments of $28.4 million expense (31
December 2023: $1.1 million expense).
In December 2021, the OECD released a draft legislative framework for a global minimum tax that is expected to be used by
individual jurisdictions. The framework aims to reduce profit shifting from one jurisdiction to another, in order to reduce global tax
obligations in corporate structures. In March 2022, the OECD released detailed technical guidance on Pillar Two of the rules and in
February 2023 further administrative guidance.
Numerous governments have announced they would adopt a version of the OECD Pillar Two rules, with legislation enacted or in
draft introducing new rules around a 15% global minimum tax, a 15% domestic minimum tax and an underpaid profits tax rule. To
date, legislation to effect these Pillar Two changes has been passed in the following jurisdictions where the Group has entities in
Australia, Canada, Germany, Indonesia, Malaysia, New Zealand, Singapore, South Africa, and Thailand.
As of the date of approval of the financial statements, the Group has undertaken an analysis to apply the rules as set out by the
OECD, including utilising any applicable safe harbour exemptions. The result of this analysis is that the Group believes it will not be
required to pay any top-up tax within the jurisdictions it operates, or where its ultimate parent company is located.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
27
7. CASH AND CASH EQUIVALENTS
December 2024
$m
December 2023
$m
Funds on deposit
246.5
649.8
Cash at bank and on hand
2,414.2
1,849.1
Cash and cash equivalents
2,660.7
2,498.9
As at 31 December 2024: $466.7 million (31 December 2023: $570.2 million) of cash at bank is restricted. It includes cash subject to
certain operational restrictions of $1.1 million (31 December 2023: $281.9 million) as well as cash in relation to the sale of
receivables of $465.6 million (31 December 2023: $288.3 million). The receivables only include certified amounts with the factoring
done on a non-recourse basis.
8. TRADE AND OTHER RECEIVABLES
Note
December 2024
$m
December 2023
$m
Contract receivables
653.8
380.1
Contract assets
2,534.1
1,970.6
Retentions and capitalised costs to fulfil contracts
197.5
128.4
Total contract debtors
3,385.4
2,479.1
Trade debtors
380.2
210.1
Other amounts receivable
695.8
349.9
Prepayments
167.3
216.2
Derivative financial assets
33 (c)
64.4
28.5
Amounts receivable from related parties
35 (b)
326.1
191.1
Total trade and other receivables
5,019.2
3,474.9
Current
4,428.4
3,135.8
Non-current
590.8
339.1
Total trade and other receivables
5,019.2
3,474.9
December 2024
$m
December 2023
$m
Additional information on contract debtors
Total contract debtors - trade and other receivables
3,385.4
2,479.1
Total contract liabilities - trade and other payables
(1,589.7)
(1,673.0)
Net contract debtors
1,795.7
806.1
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
28
8. TRADE AND OTHER RECEIVABLES CONTINUED
Significant changes in contract assets and liabilities
Contract assets are balances due from customers under long term contracts as work is performed and therefore a contract asset is
recognised over the period in which the performance obligation is fulfilled. This represents the entity’s right to consideration for
the services transferred to date. Amounts are generally reclassified to contract receivables when these have been certified or
invoiced to a customer.
Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period was
$1,537.5 million (31 December 2023: $1,858.7 million). Revenue recognised in the reporting period from performance obligations
satisfied or partially satisfied in previous periods was $38.5 million (31 December 2023: $44.3 million). Partially satisfied
performance obligations continue to incur revenue and costs in the period.
Remaining performance obligations (Work in hand)
Contracts with remaining performance obligations as at 31 December 2024 are set out below.
December 2024
$m
December 2023
$m
Work in hand1
40,157
31,723
1Includes $2,379 million (31 December 2023: $8,591 million) of CIMIC’s share of work in hand from joint ventures and associates
which are equity accounted investments. December 2024 includes 100% of the work in hand related to Thiess following
acquisition.
Contracts in the different sectors have different lengths. The average duration of contracts is given below, however some contracts
will vary from these typical lengths. Revenue is typically earned over these varying timeframes, however more of the revenue
noted above is expected to be earned in the earlier years.
Engineering and Construction
1-4 years
Integrated Solutions
4-10 years
Natural Resources 3-6 years
9. CURRENT TAX ASSETS
The current tax asset of $204.2 million (31 December 2023: $156.6 million) represents the amount of income taxes recoverable
from the payment of tax in excess of the amounts due to the relevant tax authority.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
29
10. INVENTORIES
December 2024
$m
December 2023
$m
Property developments
Cost of acquisition
5.7
6.4
Development expenses capitalised
70.8
73.9
Rates, taxes, finance and other costs capitalised1
21.6
19.0
Total property developments
98.1
99.3
Other inventories
Raw materials and consumables at cost
582.5
227.0
Total raw materials and consumables
582.5
227.0
Total inventories
680.6
326.3
Current
613.4
259.0
Non-current
67.2
67.3
Total inventories
680.6
326.3
1Finance costs capitalised to property developments during the period were $0.9 million (31 December 2023: $1.0 million).
11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
Note
December 2024
$m
December 2023
$m
Associates
25
284.1
262.5
Joint venture entities1
26
311.6
1,630.9
Total investments accounted for using the equity method
595.7
1,893.4
1Prior year includes Thiess, which was accounted for as a 50% joint venture up to 23 April 2024, at which date the Group obtained
control of Thiess and resulted in Thiess being consolidated. Refer Note 29: Acquisition and disposals.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
30
12. OTHER INVESTMENTS
Note
December 2024
$m
December 2023
$m
Financial assets at fair value through profit or loss
Unlisted investments
65.6
291.0
Total other financial assets at fair value through profit or loss
33 (c)
65.6
291.0
Financial assets at fair value through other comprehensive income
Listed investments
63.4
5.9
Total other financial assets at fair value through other comprehensive income
33 (c)
63.4
5.9
Investment property at fair value through profit or loss
Investment property
23.3
23.2
Total investment property at fair value through profit or loss
23.3
23.2
Current
-
-
Non-current
152.3
320.1
Total other investments
152.3
320.1
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
31
13. DEFERRED TAXES
December 2024
$m
December 2023
$m
Recognised deferred tax assets / (liabilities)
Deferred tax assets are attributed to the following:
Contract debtors
186.5
102.1
Property developments
3.8
19.4
Other inventories
5.4
3.0
Property, plant and equipment
93.5
37.0
Employee benefits
149.3
88.9
Contract profit differential
(133.2)
(33.9)
Investment revaluations
(19.0)
(14.2)
Foreign exchange
7.5
7.2
Tax losses1
125.0
44.3
Intangibles
(205.2)
(19.4)
Other
74.6
62.7
Total deferred taxes
288.2
297.1
Comprising of:
Deferred tax assets
645.6
364.6
Deferred tax (liabilities)
(357.4)
(67.5)
Net deferred taxes2
288.2
297.1
Unrecognised deferred tax assets
Deferred tax assets which have not been recognised in respect of tax losses
246.0
265.1
131 December 2024 includes $125.0 million of carried forward tax losses (31 December 2023: $44.3 million) of which $114.6 million
are in respect of an overseas tax jurisdiction. $97.5 million (31 December 2023: $35.4 million) have no expiry date. Utilisation of
these losses through future taxable profits is supported by forecast performance, with reference to the current levels of work in
hand and pipeline. As head of the Australian Tax Consolidated Group, HOCHTIEF Australia Holdings Limited (CIMIC’s ultimate
Australian parent entity) holds on behalf of CIMIC deferred tax assets of $248.5 million (31 December 2023: $175.5 million). These
amounts are included within amounts receivable from parent in note 35 (b) and represent tax losses generated by CIMIC and
transferred to HOCHTIEF Australia Holdings Limited for utilisation against future taxable income.
2CIMIC has the right to offset deferred tax assets and deferred tax liabilities on a jurisdictional basis and is accordingly presented on
a net basis.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
32
14. PROPERTY, PLANT AND EQUIPMENT
Leasehold land,
buildings and
improvements
Plant and
equipment
Right-of-use
land and
buildings
Right-of-use
plant and
equipment
Total property,
plant and
equipment
$m
$m
$m
$m
$m
At 1 January 2023
Cost
74.0
1,090.4
523.5
75.4
1,763.3
Accumulated depreciation
(54.0)
(745.4)
(343.6)
(53.6)
(1,196.6)
Net book amount
20.0
345.0
179.9
21.8
566.7
Year ended 31 December 2023
Opening net book amount
20.0
345.0
179.9
21.8
566.7
Additions
1.9
249.1
59.9
14.1
325.0
Divestment of subsidiary and
disposals
(0.5)
(56.5)
(14.5)
-
(71.5)
Depreciation
(5.7)
(206.0)
(61.3)
(11.8)
(284.8)
Effects of foreign exchange
fluctuations
-
-
-
-
-
Closing net book amount
15.7
331.6
164.0
24.1
535.4
Year ended 31 December 2023
Cost
72.4
1,022.5
502.5
66.2
1,663.6
Accumulated depreciation and
impairment
(56.7)
(690.9)
(338.5)
(42.1)
(1,128.2)
Net book amount
15.7
331.6
164.0
24.1
535.4
Year ended 31 December 2024
Opening net book amount
15.7
331.6
164.0
24.1
535.4
Additions
145.0
539.7
50.2
237.2
972.1
Acquisitions
16.3
1,149.1
54.1
549.7
1,769.2
Disposals
(0.3)
(29.6)
(4.4)
(0.3)
(34.6)
Depreciation
(7.6)
(531.5)
(70.3)
(149.0)
(758.4)
Effects of foreign exchange
fluctuations
-
21.5
0.8
0.5
22.8
Closing net book amount
169.1
1,480.8
194.4
662.2
2,506.5
Year ended 31 December 2024
Cost
232.9
2,023.0
573.6
815.9
3,645.4
Accumulated depreciation and
impairment
(63.8)
(542.2)
(379.2)
(153.7)
(1,138.9)
Net book amount
169.1
1,480.8
194.4
662.2
2,506.5
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
33
15. INTANGIBLES
Goodwill
Other intangibles1
Total intangibles
$m
$m
$m
At 1 January 2023
Cost or fair value
877.4
395.6
1,273.0
Accumulated amortisation and impairment
(13.6)
(318.0)
(331.6)
Net book amount
863.8
77.6
941.4
Year ended 31 December 2023
Opening net book amount
863.8
77.6
941.4
Additions / acquisitions
28.8
18.5
47.3
Disposals
-
(0.7)
(0.7)
Amortisation
-
(15.4)
(15.4)
Effects of foreign exchange fluctuations
(1.3)
-
(1.3)
Closing net book amount
891.3
80.0
971.3
Year ended 31 December 2023
Cost or fair value
904.9
219.2
1,124.1
Accumulated amortisation and impairment
(13.6)
(139.2)
(152.8)
Net book amount
891.3
80.0
971.3
Year ended 31 December 2024
Opening net book amount
891.3
80.0
971.3
Additions / acquisitions
3,221.4
626.8
3,848.2
Disposals
-
(7.9)
(7.9)
Amortisation
-
(33.4)
(33.4)
Effects of foreign exchange fluctuations
14.8
1.6
16.4
Closing net book amount
4,127.5
667.1
4,794.6
Year ended 31 December 2024
Cost or fair value
4,141.1
833.1
4,974.2
Accumulated amortisation and impairment
(13.6)
(166.0)
(179.6)
Net book amount
4,127.5
667.1
4,794.6
1Other intangibles include:
IT software systems of $30.0 million with a useful life of up to 10 years (31 December 2023: $30.3 million up to 10 years);
Customer contracts and other intangibles with useful lives of up to 15 years $342.8 million (31 December 2023: $28.3 million);
and brands and other intangibles with indefinite useful lives $294.3 million (31 December 2023: $21.4 million).
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
34
15. INTANGIBLES CONTINUED
December 2024
$m
December 2023
$m
Impairment tests for cash generating units containing goodwill
Goodwill is attributable to cash generating units as follows:
Engineering and Construction
437.9
420.1
Integrated Solutions
516.6
471.2
Natural Resources
3,173.0
-
Balance at reporting date
4,127.5
891.3
The recoverable amount of all cash-generating units (CGU’s) is based on value in use calculations, using five year cash flow
projections based on forecast operating results. The recoverable amount of each cash-generating unit exceeds its carrying amount.
The key assumptions used in the value in use calculations and the approach to determining the recoverable amount of all cash-
generating units in the current and previous period are:
Market / cash-generating unit growth:
Economic forecasts, taking into account the Group’s participation in each market
Inflation / CPI rates and foreign currency
rates:
Economic forecasts
Discount rate:
Risk in the industries and countries in which each unit operates
Growth rate:
Relevant to the market conditions and business plan
December 2024
Cash-generating units
Post tax
discount rate
Growth rate
Engineering and Construction
12%
3%
Integrated Solutions
8%
3%
Natural Resources
11%
3%
December 2023
Cash-generating units
Post tax
discount rate
Growth rate
Engineering and Construction
12%
3%
Integrated Solutions
8%
3%
Sensitivity to changes in assumptions
The recoverable amount of intangible assets exceeds their carrying values at 31 December 2024. Based on information available
and market conditions at 31 December 2024, a reasonably foreseeable change in the assumptions made in these assessments
would not result in an impairment. Macro-economic factors, such as interest rate movements, inflation and tight labour markets
were considered when determining the reasonableness of forecast assumptions. For the Engineering and Construction, Integrated
Solutions and Natural Resources CGU’s, the Group considers that for the carrying value to equal, or exceed, the recoverable
amount, there would have to be unreasonable changes to key assumptions. The Group considers the chances of these changes
occurring to be unlikely. For businesses recently acquired, the Group also considers recent performance against investment cases.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
35
16. TRADE AND OTHER PAYABLES
Note
December 2024
$m
December 2023
$m
Trade creditors and accruals
6,102.7
4,424.8
Other creditors
793.7
449.5
Amounts payable to related parties
35 (b)
151.6
297.8
Trade and other payables
33 (a,b)
7,048.0
5,172.1
Derivative financial liabilities
33 (a,b)
1.3
14.3
Total trade and other payables
7,049.3
5,186.4
Current
6,516.9
5,007.4
Non-current
532.4
179.0
Total trade and other payables
7,049.3
5,186.4
17. CURRENT TAX LIABILITIES
The current tax liability of $19.1 million (31 December 2023: $24.4 million) represents the amounts payable in respect of current
and prior periods.
18. PROVISIONS
December 2024
$m
December 2023
$m
Employee benefits
540.5
313.8
Other provisions
25.0
-
Total provisions
565.5
313.8
Current
511.2
294.1
Non Current
54.3
19.7
Total provisions
565.5
313.8
Liabilities expected to be settled within 12 months are measured at their nominal value using the remuneration rate expected to
apply at the time of settlement. Liabilities which are not expected to be settled within 12 months are measured as the present
value of the estimated future cash outflows to be made by the Group. Other provisions is related to restructuring.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
36
19. INTEREST BEARING LIABILITIES
Note
December 2024
$m
December 2023
$m
Current interest bearing loans
51.6
-
Non-current interest bearing loans
5,823.1
3,045.0
Total interest bearing liabilities
33
5,874.7
3,045.0
20. LEASE LIABILITIES
Note
December 2024
$m
December 2023
$m
Current lease liabilities
397.1
82.6
Non-current lease liabilities
539.6
154.8
Total lease liabilities
33
936.7
237.4
Extension options
Certain leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract
period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility.
The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement
whether it is reasonably certain to exercise the extension options, and where it is reasonably certain, the extension period has been
included in the lease liability. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant
event or significant change in circumstances within its control.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
37
21. SHARE CAPITAL
Company
December 2024
No. of shares
December 2023
No. of shares
Issued and fully paid share capital
Balance at beginning of reporting period
311,296,286
311,296,286
Balance at reporting date
311,296,286
311,296,286
Company
12 months to
December 2024
$m
12 months to
December 2023
$m
Share capital
Balance at beginning of reporting period
1,458.7
1,458.7
Balance at reporting date
1,458.7
1,458.7
Holders of ordinary shares are entitled to receive dividends, as declared from time to time, and are entitled to one vote per share
at shareholders’ meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and are fully
entitled to any proceeds of liquidation.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
38
22. RESERVES
12 months to
December 2024
$m
12 months to
December 2023
$m
Foreign currency translation reserve
Balance at beginning of reporting period
248.4
245.0
Included in statement of other comprehensive income
33.3
3.4
Derecognition of reserves
(39.9)
-
Balance at reporting date
241.8
248.4
Hedging reserve
Balance at beginning of reporting period
89.5
125.7
Included in statement of other comprehensive income
8.9
(36.2)
Derecognition of reserves
(1.7)
-
Balance at reporting date
96.7
89.5
Equity reserve
Balance at beginning of reporting period
(704.3)
(704.3)
Thiess put option
(1,073.0)
-
Balance at reporting date
(1,777.3)
(704.3)
Fair value through other comprehensive income reserve
Balance at beginning of reporting period
(2.0)
(14.0)
Included in statement of other comprehensive income
11.2
7.4
Transfer to retained earnings on disposal
3.8
4.6
Balance at reporting date
13.0
(2.0)
Share buy-back reserve
Balance at beginning of reporting period
(130.1)
(130.1)
Premium paid over issue value on share buy-back
-
-
Balance at reporting date
(130.1)
(130.1)
Share based payments reserve
Balance at beginning of reporting period
28.8
28.8
Included in statement of profit or loss
-
-
Balance at reporting date
28.8
28.8
Other
Balance at beginning of reporting period
0.2
-
Included in statement of profit or loss
-
0.2
Recognition of reserves
0.6
-
Balance at reporting date
0.8
0.2
Total reserves at reporting date
(1,526.3)
(469.5)
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
39
22. RESERVES CONTINUED
Nature and purpose of reserves
Foreign currency translation reserve
The foreign currency translation reserve comprises foreign exchange differences arising from the translation of the financial
statements of operations where their functional currency is different to the presentation currency of the Group, as well as from
the translation of liabilities that hedge the Group’s net investment in foreign operations.
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging
instruments relating to future transactions. It also captures the reduction in the parent’s equity as a result of put options over non-
controlling interests.
Equity reserve
The equity reserve accounts for the differences between changes in the carrying amount of non-controlling interests, and the
amounts paid or received for equity transactions with non-controlling interests.
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve comprises the fair value gains or losses on investments designated as
fair value through other comprehensive income.
Share buy-back reserve
The share buy-back reserve represents the excess above issue value of CIMIC shares that were purchased and subsequently
cancelled. The cancellation of the shares creates a non-distributable reserve.
Share based payments reserve
The share based payments reserve is used to recognise the fair value of share based payments issued to employees over the
vesting period, and to recognise the value attributable to the share based payments during the reporting period.
Other reserve
The other reserve is used to recognise the capital contribution from ACS in respect of the long-term incentive plan outlined in Note
34: Employee Benefits.
23. RETAINED EARNINGS
Note
12 months to
December 2024
$m
12 months to
December 2023
$m
Closing balance of previous reporting period
683.2
433.1
Profit included in statement of profit or loss
672.5
435.2
Transfer from reserves
(3.8)
(4.6)
Dividends paid
24
(52.9)
(180.5)
Balance at reporting date
1,299.0
683.2
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
40
24. DIVIDENDS
Cents per
share
$m
Dividends recognised in the reporting period to 31 December 2024
Interim 2024 dividend
-
-
31 December 2023 final dividend
17.0
52.9
Total dividends recognised in reporting period to 31 December 2024
52.9
Dividends recognised in the reporting period to 31 December 2023
Interim 2023 dividend
39.0
121.4
31 December 2022 final dividend
19.0
59.1
Total dividends recognised in reporting period to 31 December 2023
180.5
25. ASSOCIATES
The Group has the following investments in associates:
Ownership interest
Name of entity
Principal activity
Country
December 2024
%
December 2023
%
Canberra Metro 2A Holdings Trust
Investment
Australia
38
38
Canberra Metro 2A Holdings Pty Ltd
Investment
Australia
38
38
Canberra Metro 2A Pty Ltd
Investment
Australia
38
38
Canberra Metro 2A Trust
Investment
Australia
38
38
Canberra Metro Holdings Pty Ltd1
Engineering & Construction
Australia
38
38
Canberra Metro Holdings Trust1
Investment
Australia
30
30
Canberra Metro Pty Ltd1
Engineering & Construction
Australia
38
38
Canberra Metro Trust1
Investment
Australia
38
38
Cortex Interactive Pty Ltd2
Natural Resources
Australia
25
-
Metro Trains Australia Pty Ltd1
Integrated Solutions
Australia
20
20
Metro Trains Melbourne Pty Ltd1
Integrated Solutions
Australia
20
20
Metro Trains Sydney Pty Ltd1
Integrated Solutions
Australia
20
20
On Talent Pty Ltd3
Corporate
Australia
-
30
Spark North East Link Holding Pty Limited1
Investment
Australia
20
20
Spark North East Link Pty Limited1
Investment
Australia
20
20
Torrens Connect Pty Ltd
Integrated Solutions
Australia
23
23
All associates have a statutory reporting date of 31 December with the following exceptions:
1Entities have a 30 June statutory reporting date.
2Entities added following the Group’s acquisition of an additional 10% share interest in Thiess Group Holdings Pty Ltd which
resulted in CIMIC gaining a controlling interest in Thiess. Refer to Note 29 – Acquisitions and disposals.
3Entity deregistered during the year ended 31 December 2024.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
41
25. ASSOCIATES CONTINUED
The Group’s share of associates’ results, assets and liabilities are as follows:
12 months to
December 2024
$m
12 months to
December 2023
$m
Revenue
1,060.8
1,024.8
Expenses
(1,031.9)
(976.1)
Profit before tax
28.9
48.7
Income tax expense
(5.8)
(6.4)
Profit for the period
23.1
42.3
December 2024
$m
December 2023
$m
Current assets
336.1
341.3
Non-current assets
1,098.0
922.2
Total assets
1,434.1
1,263.5
Current liabilities
240.7
244.6
Non-current liabilities
909.3
756.4
Total liabilities
1,150.0
1,001.0
Equity accounted associates at reporting date
284.1
262.5
There were no impairments of equity accounted associates during the reporting period (31 December 2023: $nil).
In the opinion of the Directors, there are no individually material associates as at 31 December 2024.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
42
26. JOINT VENTURE ENTITIES
The Group has the following joint venture entities:
Ownership interest
Name of entity
Principal activity
Country
December 2024
%
December 2023
%
Adelaide Metro Operations Pty Ltd
Integrated Solutions
Australia
50
50
Auckland One Rail Limited
Integrated Solutions
New Zealand
50
50
Australian Terminal Operations Management Pty Ltd
Integration Solutions
Australia
50
50
Canberra Metro Operations Pty Ltd
Integrated Solutions
Australia
50
50
CIP Holdings General Partner Limited1
Investment
New Zealand
40
40
CIP Project General Partner Limited1
Investment
New Zealand
40
40
Cockatoo Mining Pty Ltd2
Natural Resources
Australia
50
-
Cornerstone Infrastructure Partners Holding LP1
Investment
New Zealand
40
40
Cornerstone Infrastructure Partners LP
Investment
New Zealand
40
40
Glenrowan Solar Farm Pty Ltd
Investment
Australia
51
51
Glenrowan Solar Farm Trust
Investment
Australia
51
51
Glenrowan Solar Finance Pty Ltd
Investment
Australia
51
51
Glenrowan Solar Holdings Pty Ltd
Investment
Australia
51
51
GSJV Guyana Inc1
Investment
Guyana
50
50
GSJV SCC (formerly GSJV Limited (Barbados))1
Investment
Barbados
50
50
IC Integrity Pty Ltd
Integrated Solutions
Australia
49
49
Kings Square No.4 Unit Trust1
Investment
Australia
50
50
Kings Square Pty Ltd1
Investment
Australia
50
50
Mechatronix Pty Ltd2
Natural Resources
Australia
50
-
Momentum Trains Holding Pty Ltd1
Investment
Australia
49
49
Momentum Trains Holding Trust1
Investment
Australia
49
49
Momentum Trains Pty Ltd1
Investment
Australia
49
49
Momentum Trains Trust1
Investment
Australia
49
49
Mpeet Pty Limited
Integrated Solutions
Australia
50
50
Mulba Mia Leighton Broad Joint Venture1,4
Engineering & Construction
Australia
-
50
Pulse Partners Agent Pty Ltd1,4
Investment
Australia
-
49
Pulse Partners Holding Pty Ltd1
Investment
Australia
49
49
Pulse Partners Holding Trust1
Investment
Australia
49
49
Pulse Partners Trust1
Investment
Australia
49
49
Pulse Partnerships Pty Ltd1
Investment
Australia
49
49
Spark NEL DC Workforce Pty Ltd
Engineering & Construction
Australia
33
33
Thiess Group Holdings Pty Ltd3
Investment
Australia
-
50
U-Go Mobility Pty Ltd
Integrated Solutions
Australia
50
50
Wallan Project Pty Ltd1 (act as trustee of Wallan Project Trust)
Investment
Australia
49
49
Wallan Project Trust1
Investment
Australia
49
49
All joint venture entities have a statutory reporting date of 31 December with the following exceptions as they are aligned
with the joint venture partners’ reporting date and / or the reporting date is prescribed by local statutory requirements:
1Entities have a 30 June statutory reporting date.
2Entities added following the Group’s acquisition of an additional 10% share interest in Thiess Group Holdings Pty Ltd which
resulted in CIMIC gaining a controlling interest in Thiess. Refer to Note 29 – Acquisitions and disposals.
3In the period, Thiess Group Holdings Pty Ltd ceased to be a joint venture on 23 April 2024 following the Group’s acquisition of an
additional 10% share interest which resulted in CIMIC gaining a controlling interest in Thiess. Refer to Note 29 – Acquisitions and
disposals.
4Entity deregistered during the year ended 31 December 2024.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
43
26. JOINT VENTURE ENTITIES CONTINUED
The Group’s share of joint venture entities’ results, assets and liabilities are as follows:
12 months to
December 20241
$m
12 months to
December 20232
$m
Summarised profit or loss
Revenue
1,464.6
3,490.0
Expenses
(1,344.9)
(3,195.8)
Finance income
7.6
8.3
Finance costs
(103.3)
(158.5)
Profit before tax
24.0
144.0
Income tax expense
(7.6)
(33.0)
Profit for the period
16.4
111.0
December 20241
$m
December 20232
$m
Summarised balance sheet
Current assets
582.7
1,151.1
Non-current assets
1,596.0
4,445.6
Total assets
2,178.7
5,596.7
Current liabilities
174.4
914.7
Non-current liabilities
1,692.7
3,051.1
Total liabilities
1,867.1
3,965.8
The Group’s share of joint venture entities’ net assets at reporting date
311.6
1,630.9
1 Following the additional 10% acquisition of Thiess, 2024 includes the results of Thiess as a joint venture only for the period
between 1 January 2024 to 22 April 2024.
2 2023 has been restated to consolidate both ‘Immaterial joint venture entities’ and ‘Material joint venture entities’ results, which
were separately disclosed in the 2023 Annual Report.
There were no impairments of investments in joint ventures during the reporting period (31 December 2023: $nil).
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
44
27. JOINT OPERATIONS
The Group has the following interest in joint operations:
Ownership interest
Name of arrangement
Principal activity
Country
December 2024
%
December 2023
%
Acciona Construction Australia Pty Ltd & CPB Contractors Pty Ltd
Engineering & Construction
Australia
50
50
Acciona Construction Australia Pty Ltd & CPB Contractors Pty
Limited & Ghella Pty Ltd
Engineering & Construction
Australia
40
40
Acciona Infrastructure & CPB Contractors Joint Venture (formerly
Leighton Abigroup Consortium (Epping to Thornleigh))
Engineering & Construction
Australia
50
50
Altrad Services Pty Ltd & UGL Operations and Maintenance Pty
Limited (formerly UGL Cape)
Integrated Solutions
Australia
50
50
AECOM Australia Pty Ltd & BG&E Pty Limited & Georgiou Group
Pty Ltd & GHD Pty Ltd & CPB Contractors Pty Limited4
Engineering & Construction
Australia
-
68
CH2-UGL JV4
Engineering & Construction
Australia
-
50
CPB & BMD JV
Engineering & Construction
Australia
50
50
CPB & JHG JV
Engineering & Construction
Australia
50
50
CPB & United Infrastructure JV
Engineering & Construction
Australia
75
75
CPB BAM Ghella UGL Joint Venture
Engineering & Construction
Australia
54
54
CPB Black & Veatch Joint Venture1
Engineering & Construction
Australia
50
50
CPB Contractors & Georgiou Group
Engineering & Construction
Australia
50
50
CPB Contractors & Georgiou Group (Elevate Joint Venture)
Engineering & Construction
Australia
80
-
CPB Contractors & Spotless Facilities Services
Engineering & Construction
Australia
50
50
CPB Contractors Pty Limited & DT Infrastructure Pty Ltd
Engineering & Construction
Australia
67
67
CPB Contractors Pty Limited & DT Infrastructure Pty Ltd (NEWest
Alliance)
Engineering & Construction
Australia
50
50
CPB Contractors Pty Limited & Ghella Pty Ltd Joint Venture
Engineering & Construction
Australia
75
75
CPB Contractors Pty Limited & McConnell Dowell Constructions
(Aust) Pty Ltd
Engineering & Construction
Australia
50
-
CPB Dragados Samsung Joint Venture
Engineering & Construction
Australia
40
40
CPB Ghella UGL JV
Engineering & Construction
Australia
78
78
CPB John Holland Dragados Joint Venture
Engineering & Construction
Australia
50
50
CPB Samsung John Holland Joint Venture
Engineering & Construction
Australia
33
33
CPB Seymour Whyte JV
Engineering & Construction
Australia
50
50
CPB Southbase JV
Engineering & Construction
New Zealand
60
60
Downer EDI Works Pty Ltd & CPB Contractors Pty Limited
(Parramatta Connect) (formerly CPB Downer EDI JV)
Engineering & Construction
Australia
50
67
Downer EDI Works Pty Ltd & CPB Contractors Pty Limited
(Regional Rail Package F) (formerly Leighton Contractors Downer
Joint Venture)1,4
Engineering & Construction
Australia
-
50
EV LNG Australia Pty Ltd & Thiess Pty Ltd (EVT JV)3
Engineering & Construction
Australia
50
-
First Balfour-Leighton Joint Venture
Engineering & Construction
Philippines
40
40
Gammon - Leighton Joint Venture
Engineering & Construction
Hong Kong
50
50
GE Betz Pty Limited & McConnell Dowell Constructors (Aust) Pty
Ltd & United Group Infrastructure Pty Ltd
Engineering & Construction
Australia
50
50
Global Mission Support Alliance Joint Venture
Engineering & Construction
United States
75
-
HYLC Joint Venture1
Engineering & Construction
Australia
50
50
IEC Boardwalk JV
Engineering & Construction
Hong Kong
34
34
JH & CPB & Ghella JV
Engineering & Construction
Australia
45
45
JH & CPB & Ghella JV (JCG JC)
Engineering & Construction
Australia
40
-
John Holland and UGL Infrastructure
Engineering & Construction
Australia
50
50
John Holland Pty Ltd, UGL Engineering Pty Ltd and GHD Pty Ltd
trading as Malabar Alliance
Engineering & Construction
Australia
50
50
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
45
27. JOINT OPERATIONS CONTINUED
Ownership interest
Name of arrangement
Principal activity
Country
December 2024
%
December 2023
%
JH & CPB & Ghella JV (JCG JC)
Engineering & Construction
Australia
40
-
John Holland and UGL Infrastructure
Engineering & Construction
Australia
50
50
John Holland Pty Ltd, UGL Engineering Pty Ltd and GHD Pty Ltd
trading as Malabar Alliance
Engineering & Construction
Australia
50
50
Leighton Abigroup Joint Venture1
Engineering & Construction
Australia
50
50
Leighton - Able Joint Venture
Engineering & Construction
Hong Kong
51
51
Leighton - China State - Van Oord Joint Venture4
Engineering & Construction
Hong Kong
-
45
Leighton - China State Joint Venture
Engineering & Construction
Hong Kong
51
51
Leighton China State Joint Venture (Wynn Resort)
Engineering & Construction
Macau
50
50
Leighton - Chubb E&M Joint Venture
Engineering & Construction
Hong Kong
50
50
Leighton - Chun Wo Joint Venture
Engineering & Construction
Hong Kong
84
84
Leighton - Chun Wo Joint Venture
Engineering & Construction
Hong Kong
60
60
Leighton - Chun Wo Joint Venture
Engineering & Construction
Hong Kong
70
70
Leighton-First Balfour Joint Venture
Engineering & Construction
Philippines
65
65
Leighton-First Balfour Joint Venture
Engineering & Construction
Philippines
50
50
Leighton - Gammon Joint Venture
Engineering & Construction
Hong Kong
50
50
Leighton - HEB Joint Venture
Engineering & Construction
New Zealand
80
80
Leighton-Infra 13 Joint Venture2
Engineering & Construction
India
50
50
Leighton-Ose Joint Venture2
Engineering & Construction
India
50
50
Leighton - Total Joint Operation
Engineering & Construction
Indonesia
67
67
Leighton Fulton Hogan Joint Venture (Sapphire to Woolgoolga)1,4
Engineering & Construction
Australia
-
50
Leighton Fulton Hogan Joint Venture (Sh16 Causeway Upgrade)
Engineering & Construction
New Zealand
50
50
Leighton John Holland Joint Venture
Engineering & Construction
Singapore
50
50
Leighton M&E – Southa Joint Venture
Engineering & Construction
Hong Kong
50
50
Leighton York Joint Venture
Engineering & Construction
Australia
75
75
LLECPB Crossing Removal JV
Engineering & Construction
Australia
50
50
LS&W JV HYD012
Engineering & Construction
India
51
-
Manidis Roberts Pty Limited & MWH Australia Pty Ltd & PB
Australia Pty Limited & United Group Infrastructure Pty Ltd
Integrated Solutions
Australia
60
60
Metropolitan Road Improvement Alliance
Engineering & Construction
Australia
71
71
Mitsubishi Electric Australia Pty Ltd & Hyundai Rotem Company &
UGL Rail Services Pty Limited
Integrated Solutions
Australia
17
17
Murray & Roberts Marine Malaysia - Leighton Contractors Malaysia
Joint Venture1
Engineering & Construction
Malaysia
50
50
NDH Joint Venture
Engineering & Construction
Hong Kong
55
-
NRT - Design & Delivery JV
Engineering & Construction
Australia
50
50
NRT – Infrastructure Joint Venture4
Engineering & Construction
Australia
-
50
NRT Systems JV
Integrated Solutions
Australia
40
40
N.V. Besix S.A. & Thiess Pty Ltd (Best JV)3
Natural Resources
Australia
50
-
OWP Joint Venture (Optus Wireless JV)
Integrated Solutions
Australia
50
50
Parsons Brinckerhoff Australia Pty Limited & RPS Manidis Roberts
Pty Ltd & Seymour Whyte Constructions Pty Ltd & UGL Engineering
Pty Limited
Engineering & Construction
Australia
33
33
PTA Radio4
Integrated Solutions
Australia
-
44
Rizzani CPB Joint Venture
Engineering & Construction
Australia
50
50
Spark NEL DC JV
Engineering & Construction
Australia
28
28
Thiess Balfour Beatty Joint Venture3
Engineering & Construction
Australia
67
-
Thiess Degremont JV3
Engineering & Construction
Australia
65
-
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
46
27. JOINT OPERATIONS CONTINUED
Ownership interest
Name of arrangement
Principal activity
Country
December 2024
%
December 2023
%
Thiess Degremont Nacap Joint Venture3
Engineering & Construction
Australia
33
-
Thiess John Holland Joint Venture (Airport Link)3
Engineering & Construction
Australia
50
-
Thiess John Holland Joint Venture (EastLink)3
Engineering & Construction
Australia
50
-
Thiess KMC JV
Natural Resources
Canada
52
-
UGL Engineering Pty Ltd and ADCO Constructions Pty Ltd JV
(Eastrail)
Engineering & Construction
Australia
48
-
UGL Kentz4
Integrated Solutions
Australia
-
50
Veolia Water - Leighton - John Holland Joint Venture
Engineering & Construction
Hong Kong
24
24
WSO M7 Stage 3 JV
Engineering & Construction
Australia
50
50
WSP Australia Pty Limited & UGL Engineering Pty Limited
Integrated Solutions
Australia
50
50
All joint operations have a reporting date of 31 December with the following exceptions:
1Arrangements have a 30 June reporting date. These entities have different statutory reporting dates to the Group as they are
aligned with the joint operations partners’ reporting date and / or the reporting date is prescribed by local statutory requirements.
2Arrangements have a 31 March reporting date. These entities have different statutory reporting dates to the Group as they are
aligned with the joint operations partners’ reporting date and / or the reporting date is prescribed by local statutory requirements.
3Entities added following the Group’s acquisition of an additional 10% share interest in Thiess Group Holdings Pty Ltd which
resulted in CIMIC gaining a controlling interest in Thiess. Refer to Note 29 – Acquisitions and disposals.
4Entity deregistered during the year ended 31 December 2024.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
47
28. NOTES TO THE STATEMENT OF CASH FLOWS
a) Reconciliation of profit for the year to net cash from operating activities
12 months to
December 2024
$m
12 months to
December 2023
$m
Profit before tax
780.2
494.3
Adjustments for:
-
Depreciation and amortisation
791.8
300.2
-
Other adjustments to net profit
244.1
(68.6)
-
Changes in working capital (net current assets)
(180.1)
(503.3)
-
Interest payable
(475.0)
(263.5)
-
Dividend receivable
88.5
97.7
-
Interest receivable
105.0
83.2
-
Income tax payable
(205.4)
(17.9)
Net cash from operating activities
1,149.1
122.1
Interest on finance leases of $39.6 million (December 2023: $11.9 million) is disclosed within repayment of leases in the
consolidated statement of cash flows. The 12 months to 31 December 2024 includes the post-acquisition impact of Thiess from
23 April 2024.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
48
28. NOTES TO THE STATEMENT OF CASH FLOWS CONTINUED
b) Reconciliation of liabilities arising from financing activities
Interest bearing loans and financial liabilities
December
2023
$m
Cash flows
.
$m
Amortisation
of borrowing
costs
$m
Foreign
exchange and
other
movements1
$m
December
2024
$m
Interest bearing loans
3,045.0
428.5
13.2
2,388.0
5,874.7
Financial liability
-
-
-
1,073.0
1,073.0
December
2022
$m
Cash flows
.
$m
Amortisation
of borrowing
costs
$m
Foreign
exchange and
other
movements1
$m
December
2023
$m
Interest bearing loans
3,345.3
(255.5)
6.6
(51.4)
3,045.0
Financial liability
33.7
(34.0)
-
0.3
-
1 Includes the impact of foreign exchange and other movements including acquisitions and disposals.
Lease liabilities
December
2023
$m
Cash flows
.
$m
Addition /
acquisitions
$m
Interest
charged
$m
Other
$m
December
2024
$m
Lease liabilities
237.4
(258.8)
920.0
39.6
(1.5)
936.7
December
2022
$m
Cash flows
.
$m
Addition /
acquisitions
$m
Interest
charged
$m
Other
$m
December
2023
$m
Lease liabilities
264.6
(98.0)
74.0
11.9
(15.1)
237.4
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
49
29. ACQUISITIONS AND DISPOSALS
Acquisitions
Thiess Group
On 23 April 2024, CIMIC Group Limited acquired an additional 10% of Thiess Group Holdings Pty Ltd (Thiess) comprising ordinary
shares, Preference A shares and Preference C shares previously held by Elliott. The cash purchase price was $320.0 million and
increased CIMIC’s ownership of Thiess to 60%. CIMIC and Elliott continue to have equal Thiess board representation while revisions
to the shareholders agreement strengthened CIMIC’s governance over the day-to-day operations of the company. CIMIC now has
the ability to direct Thiess’ relevant activities and, as such, Thiess is a controlled entity of CIMIC under Australian Accounting
Standards. Elliott’s retained interest is recognised within non-controlling interests in the statement of financial position. Thiess is a
diversified global leader in mining services, underpinned by long-term, low-risk contracts which strengthen CIMIC’s business profile,
as it grows its commodities portfolio to include metals and minerals critical to the world’s shift to zero emissions, reflecting the
strategic importance of the energy transition to CIMIC.
The acquisition has been accounted for as a step acquisition under Accounting Standard AASB 3: Business Combinations (“AASB 3”)
as follows: the purchase consideration was determined to be $2,852.7 million, of which none was deferred. It comprised cash
consideration paid, the contribution of CIMIC’s pre-existing interest, remeasured to fair value, and the total value of non-
controlling interest. The fair value of the identifiable net liabilities of Thiess acquired by the Group was $289.9 million.
The accounting for the acquisition and purchase price allocation was finalised before the issuance of these financial statements.
The values of the assets and liabilities acquired include valuations of property, plant and equipment and intangible assets by
external experts, as well as fair value adjustments on contract debtors, existing capitalised transaction costs, tax contingencies and
for certain contracts with unfavourable terms relative to market at acquisition date.
Details of the purchase consideration, the net assets acquired, and goodwill recognised from the acquisition are as follows:
$m
Cash purchase price (10%)
320.0
Fair value of pre-existing interest (50%)
2,489.6
Non-controlling interest (40%)
43.1
Total consideration for goodwill calculation (100%)
2,852.7
The fair value of CIMIC’s existing stake at the date that control was obtained, was determined with support from external experts.
The assets and liabilities recognised as a result of the acquisition are as follows:
$m
Property, plant and equipment
1,737.3
Intangibles
605.1
Cash and cash equivalents
103.4
Trade and other receivables
1,529.0
Other assets
331.7
Payables and other liabilities
(3,790.5)
Provisions
(189.8)
Lease liabilities
(599.2)
Less: Thiess non-controlling interest
(16.9)
Total fair value of net identifiable (liabilities) / assets acquired
(289.9)
Goodwill on acquisition
3,142.6
Total consideration
2,852.7
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
50
29. ACQUISITIONS AND DISPOSALS CONTINUED
Acquisitions continued
Thiess Group continued
The goodwill is attributable to the future profitability and expertise of the Thiess Group. The goodwill is not deductible for income
tax purposes. The fair value of the trade and other receivables is $1,529.0 million. The gross contractual amount of Trade and other
receivables is $1,580.9 million, with the best estimate at acquisition date of the contractual cash flows not expected to be collected
amounting to $51.9 million. Non-controlling interest has been measured at the proportionate share of acquired entity’s net
identifiable net assets / (liabilities) excluding goodwill for the ordinary shares and Preference A Shares, and at fair value for the
Preference C Shares as a result of their contractual terms.
A gain of $972.2 million is reported in other gains and arises on the remeasurement of the pre-acquisition carrying value of
$1,480.9 million of CIMIC’s pre-existing 50% interest in Thiess. The gain arises on the revaluation of CIMIC’s previously held equity
accounted investment to fair value, net of recycling of joint venture reserves from equity to profit and loss and transaction related
costs. The contribution to the Group from the acquisition date to the end of the period ended 31 December 2024 was $4,344.7
million revenue and $167.2 million profit after tax and non-controlling interest. Had the acquisition occurred on 1 January 2024, the
contribution to the Group for the period ended 31 December 2024 would have been $6,058.7 million revenue. Profit after tax and
non-controlling interest would have increased in accordance with the 10% increase in shareholding in Thiess Group Holdings Pty Ltd
by $13.5 million.
Prudentia Engineering
On 29 February 2024, CIMIC through its wholly owned subsidiary Sedgman Pty Limited, acquired 100% of Prudentia Process
Consulting Pty Ltd (“Prudentia”). Prudentia is a project management and engineering company operating in the resources sector
based in Brisbane, Queensland. The company delivers sustaining capital through specialising in greenfield and brownfield
engineering projects in mining and minerals processing. The purchase consideration was $34.0 million cash, of which $11.0 million
was deferred. Subsequent to the acquisition, the $11.0 million deferred amount is not yet due to be paid. The acquisition has been
accounted for under AASB 3: Business Combinations.
The contribution by Prudentia to the Group from either the acquisition date or 1 January 2024 to the end of the period ended 31
December 2024 was immaterial.
MinSol Engineering
On 2 April 2024, CIMIC through its wholly owned subsidiary Sedgman Pty Limited, acquired 100% of MinSol Engineering Pty Limited
(“MinSol”). This company is a Western Australian based critical minerals processing company specialising in engineering of hard
rock lithium concentration and refining processes. The purchase consideration was $13.0 million cash, of which $3.0 million was
deferred. Subsequent to the acquisition, the $3.0 million deferred amount is not yet due to be paid. The acquisition has been
accounted for under AASB 3: Business Combinations.
The contribution by MinSol to the Group from either the acquisition date or 1 January 2024 to the end of the period ended 31
December 2024 was immaterial.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
51
29. ACQUISITIONS AND DISPOSALS CONTINUED
Acquisitions continued
PYBAR
On 31 May 2024, CIMIC through its subsidiary Thiess Group Holdings Pty Ltd acquired 100% of PYBAR Holdings Pty Limited
(“PYBAR”). PYBAR is an underground metals mining services company operating in the hard rock mining industry based in Orange,
New South Wales with projects in Queensland, New South Wales and Tasmania. The purchase consideration was $54.4 million
cash, of which none was deferred. The acquisition has been accounted for under AASB 3: Business Combinations.
The contribution by PYBAR to the Group from either the acquisition date or 1 January 2024 to the end of the period ended 31
December 2024 was immaterial.
Maverick
On 2 December 2024, CIMIC through its wholly owned subsidiary Leighton Asia Limited Group acquired 100% of Maverick United
Consulting Engineers (“Maverick”). Maverick is a structural engineering design consultancy firm providing services primarily to the
data centre industry located in Kuala Lumpur, Malaysia. The purchase consideration was $3.1 million cash, of which was $1.0
million is deferred. The acquisition has been accounted for under AASB 3: Business Combinations. Subsequent to the acquisition,
the $1.0 million deferred amount is not yet due to be paid.
The contribution by Maverick to the Group from either the acquisition date or 1 January 2024 to the end of the period ended 31
December 2024 was immaterial.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
52
30. COMMITMENTS
Capital expenditure contracted for at reporting date but not recognised as liabilities is as follows:
December 2024
$m
December 2023
$m
Property, plant and equipment
Payable:
-
within one year
66.0
107.8
-
later than one year but not later than five years
-
-
-
later than five years
-
-
Total
66.0
107.8
Share of Joint Ventures’ commitments - property, plant and equipment
Payable:
-
within one year
0.3
14.4
-
later than one year but not later than five years
2.0
-
-
later than five years
-
-
Total
2.3
14.4
Share of Associates’ commitments - property, plant and equipment
Payable:
-
within one year
0.4
0.3
-
later than one year but not later than five years
-
-
-
later than five years
-
-
Total
0.4
0.3
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
53
31. CONTINGENT LIABILITIES
Bank guarantees, insurance bonds and letters of credit
Indemnities given by third parties on behalf of controlled entities and equity accounted investments are as follows:
December 2024
$m
December 2023
$m
Bank guarantees
4,158.7
3,858.4
Insurance, performance and payment bonds
1,915.7
1,769.2
Letters of credit
242.3
333.4
Other contingencies
i.
The Company gives, in the ordinary course of business, guarantees and indemnities in respect of the performance by
controlled entities, associates and related parties of their contractual and financial obligations. The value of these guarantees
and indemnities is indeterminable in amount.
ii.
There exists in some entities within the Group the normal design liability in relation to completed design and construction
projects.
iii. Certain entities within the Group have the normal contractor’s liability in relation to construction contracts. This liability may
include litigation by or against the Group and / or joint arrangements in which the Group has an interest. It is not possible to
estimate the financial effect of these claims should they be successful.
iv. Controlled entities have entered into joint arrangements under which the controlled entity may be jointly and severally liable
for the liabilities of the joint arrangement.
v.
Pursuant to the ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, the Company has entered into approved
deeds of cross-guarantee with participating Australian subsidiary companies.
vi. On 13 February 2012, CIMIC announced that it had reported to the Australian Federal Police (“AFP”) a possible breach by the
Leighton International business of its Code of Ethics that, if substantiated, may have contravened Australian laws. The matter,
has been, and in some cases continues to be, subject to the investigations below:
In March 2014, the Australian Securities and Investment Commission ("ASIC") commenced a formal investigation into
potential breaches of the Corporations Act relating to a number of matters being investigated by the AFP. In March 2017,
ASIC advised CIMIC that its investigation has concluded and it will take no further action.
On 22 May 2018, the UK Serious Fraud Office (“SFO”) announced it has charged individuals, none of whom are CIMIC
employees, and on 26 June 2018 announced it has charged a company, which is not a member of the CIMIC Group. On
19 July 2019 the SFO announced that one individual had pleaded guilty to charges. Following trials in 2020 and 2021 the
individuals were convicted on some charges. However, some of those convictions have been overturned on appeal.
None of the juries’ guilty findings relate to charges involving the CIMIC Group company contracts.
On 1 March 2019, CIMIC entered into an investigation agreement with the Department of Justice (“DOJ”). On 30 October
2019 the US DOJ announced that in March 2019 three individuals not employed by CIMIC pleaded guilty to a charge of
conspiracy to violate the Foreign Corrupt Practices Act.
On 18 November 2020 the AFP advised CIMIC that it had charged an ex-employee with alleged offences relating to
foreign bribery and related matters and on 23 February 2021 the AFP announced it had brought an additional charge in
relation to foreign bribery. On 11 January 2021 the AFP informed CIMIC that it had charged a second ex-employee with
related offences. The AFP has also indicated it may charge a further ex-employee and that its investigations continue.
CIMIC does not know when the charges will be heard or the outcome of any investigation.
No CIMIC Group company has been charged.
CIMIC continues to cooperate with all official investigations.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
54
31. CONTINGENT LIABILITIES CONTINUED
Other contingencies continued
vii. CIMIC's wholly owned subsidiary, CPB Contractors, and its joint venture partner Hansen Yuncken, in a 50/50 JV, were awarded
the design and construction of the new Royal Adelaide Hospital for the South Australian State Government. The project
experienced difficulties and delays arising from the complex interdependencies between the State’s works and the JV’s works
and a dispute between the parties arose. The arbitration to settle the dispute between the parties is ongoing. The evidence
phase of the hearing is complete and the parties closing submissions were heard in July and early August 2024. The arbitration
award is expected in 2025.
viii. CIMIC in conjunction with their joint venture partner (together the “M6 D&C JV”), contracted to deliver the M6 Stage 1
motorway tunnel project for Transport for New South Wales (TfNSW). During the course of 2024, whilst undertaking
tunnelling works, the project experienced differing ground conditions not anticipated at time of tender (geotechnical events).
As a consequence of these conditions, works in the affected areas have stopped until a suitable revised engineering
methodology has been developed. TfNSW has publicly announced the completion timeline for the project will be significantly
extended.
The M6 D&C JV has submitted the required initial claim notifications to TfNSW which set out our basis of contractual
entitlement to extensions of time and costs as a result of these geotechnical events. Without prejudice discussions are
underway between the parties to find an appropriate commercial resolution given the complex nature of the geotechnical
events. Accordingly, it is not yet practicable to establish an estimate of the potential net financial effect on contract related
balances as at 31 December 2024 or that may arise in a subsequent financial period, until the matter is resolved by the parties.
ix.
The Group operates across a large number of jurisdictions, and from time-to-time may be subject to a tax audit or inquiries
from local tax authorities. CIMIC maintains that the tax treatments adopted are appropriate. Where the amount of tax payable
or recoverable is uncertain, whether due to a local tax authority challenge or due to uncertainty regarding the appropriate
treatment, judgement is required to assess the probability that the adopted treatment will be accepted.
32. CAPITAL RISK MANAGEMENT
Capital planning forms part of the business and strategic plans of the Group. Decisions relating to obtaining and investing capital
are made following consideration of the Group’s key financial objectives including the maintenance of an investment grade credit
rating. Performance measures include return on revenue, return on equity, earnings growth, liquidity and borrowing capacity.
The Group has access to numerous sources of capital both domestically and internationally, including cash balances, equity, bank
debt, capital markets, insurance, lease facilities and trade finance facilities.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
55
33. FINANCIAL INSTRUMENTS
a)
Classification of financial assets and financial liabilities
December 2024
$m
December 2023
$m
Financial assets
Financial assets at amortised cost:
Cash and cash equivalents
2,660.7
2,498.9
Trade and other receivables1
2,055.9
1,131.2
Financial assets at fair value through profit or loss
65.6
291.0
Financial assets at fair value through other comprehensive income
63.4
5.9
Derivative financial instruments:
Used for hedging
56.9
23.1
Held for trading at fair value through profit or loss
7.5
5.4
Balance at reporting date
4,910.0
3,955.5
1Excludes prepayments of $167.3 million (31 December 2023: $216.2 million).
December 2024
$m
December 2023
$m
Financial liabilities
Financial liabilities at amortised cost:
Trade and other payables
7,048.0
5,172.1
Financial liability2
1,073.0
-
Interest bearing liabilities
5,874.7
3,045.0
Lease liabilities
936.7
237.4
Derivative financial instruments:
Used for hedging
1.3
12.7
Held for trading at fair value through profit or loss
-
1.6
Balance at reporting date
14,933.7
8,468.8
2Represents the payout under the Elliott put option to CIMIC. Refer to Put Option and Class C Shares Options below.
Put Option and Class C Share Options
CIMIC’s co-investor in Thiess, Elliott, holds a put option (‘Put Option’) that enables it to put back to CIMIC its full interest in
ordinary shares and Class A Preference Shares held in Thiess. On completion of CIMIC’s acquisition of 10% of Thiess on 23 April
2024, the terms of the Elliott put option, were changed. The Put Option is now exercisable from 22 April 2025 to 31 December
2026. In addition, the existing Elliot Hybrid Put Option (‘Hybrid Option’) over the Class C Preference Shares were unchanged with
these shares being puttable on the earlier of six months after exercise of the Put Option or six months after the end of the Put
Option period. As a consequence of the 23 April 2024 transaction and the required consolidation of Thiess, the Put Option and
Hybrid Option are required to be recognised as an option over non-controlling interest and the present value of the gross
redemption value is recognised as a financial liability alongside a reduction in the parent’s equity within reserves. The Put Option
and Hybrid Option gross financial liability values were $920.0 million and $153.0 million respectively, totalling $1,073.0 million. No
adjustment has been made for the probability of the assets being put to CIMIC. Prior to Thiess becoming a controlled entity on 23
April 2024, the options were previously recognised as derivative financial instruments in accordance with AASB 9 at fair value.
The Group’s exposure to various risks associated with the financial instruments is discussed in Note 33(b): Financial risk
management – Credit risk. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each
class of financial asset mentioned above. Where carrying amounts differ from fair value, these amounts are shown in Note 33(c):
Financial instruments – Fair value hierarchy. All other assets and liabilities in the Group’s consolidated statement of financial
position approximate fair values.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
56
33. FINANCIAL INSTRUMENTS CONTINUED
a)
Classification of financial assets and financial liabilities continued
The Group’s financial instruments resulted in the following income, expenses and gains and losses recognised in the consolidated
statement of profit or loss:
12 months to
December 2024
$m
12 months to
December 2023
$m
Income, expenses and gains and losses recognised in the statement of profit or loss:
Interest from assets held at amortised cost
82.1
78.2
Net fair value gain on equity investments mandatorily measured at FVPL1
(26.4)
29.4
Loss on de-recognition of financial assets
(14.5)
(11.7)
Net foreign exchange (losses) / gain recognised in profit for the period
(18.2)
(3.1)
Impairment gain on remeasurement of financial assets
12.0
-
1Includes Thiess Class C Preference shares for the period ended 31 December 2024 of $(15.6) million (31 December 2023: $18.0
million). Fair value movements in relation to Class C Preference shares are offset by dividends received of $22.9m (31 December
2023: $4.9 million). In 2022, CIMIC subscribed to Class C Preference shares in Thiess totalling $191.3 million. Prior to the
consolidation of Thiess, the Class C Preference shares were considered a long-term interest in Thiess and accounted for as an equity
instrument in accordance with AASB 9: Financial Instruments, until the transaction on 23 April 2024.
b)
Financial risk management
The activities of the Group result in exposure to credit, liquidity and market risk (equity price, foreign currency and interest rate).
To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign
exchange forward contracts, are used to hedge certain foreign currency risk exposures. These instruments reduce the uncertainty
of foreign currency transactions.
Financial risk management is controlled by a central treasury department based on financial policies approved by the Board. The
central treasury department identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units.
The written principles for overall risk management cover specific areas, such as foreign exchange risk, interest rate risk, credit risk,
use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
Hedge accounting is applied to remove the accounting mismatch between the hedging instrument and the hedged item. The
effective portion of the change in the fair value of the hedging instrument is deferred into the cash flow hedge reserve through OCI
and will be recognised in profit or loss when the hedged item affects profit or loss. This will effectively result in recognising non-
financial assets at the fixed foreign currency rate for the hedged purchases.
Derivatives used for hedging
The Group has the following derivative financial instruments used for hedging:
12 months to
December 2024
$m
12 months to
December 2023
$m
Current and non-current assets
Forward foreign exchange contracts – cash flow hedges
1.0
0.9
Cross currency interest rate swap - cash flow hedges
55.9
22.2
Current and non-current liabilities
Forward foreign exchange contracts – cash flow hedges
(1.3)
(12.7)
Cross currency interest rate swap - cash flow hedges
-
-
The Group’s accounting policy for its cash flow hedges is set out in Note 1(e): Derivative financial instruments. For hedged forecast
transactions that result in the recognition of a non-financial asset, the related hedging gains and losses are included in the initial
measurement of the cost of the asset.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
57
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
i)
Credit risk
Credit risk represents the risk that a counterparty will not complete its obligations under a financial instrument resulting in a
financial loss to the Group. The Group has a credit policy in place and exposure to credit risk is monitored on an ongoing basis. The
Group minimises concentrations of credit risk by undertaking transactions with a large number of customers in various countries.
Derivative and deposit counterparties are limited to investment grade financial institutions.
The ageing of the Group’s receivables at the reporting date was: $731.8 million not due (31 December 2023: $360.8 million);
$242.9 million past due (31 December 2023: $118.5 million). Past due is defined under AASB 9: Financial Instruments to mean any
amount outstanding for one or more days after the contractual due date. Past due receivables aged greater than 60 days: $143.2
million or 3.3 % (31 December 2023: $68.7 million or 2.3%).
Impairment of financial assets
In relation to the impairment of financial assets, AASB 9: Financial Instruments requires an expected credit loss model. The
expected credit loss model requires the Group to account for expected credit losses at each reporting date to reflect changes in
credit risk since initial recognition of the financial assets. In other words, it is no longer necessary for a credit event to have
occurred before credit losses are recognised.
In particular, AASB 9 requires the Group to measure the loss allowance for a financial instrument at an amount equal to the
lifetime expected credit losses (ECL) if the credit risk of that financial instrument has increased significantly since initial recognition,
or if the financial instrument is a purchased or originated credit-impaired financial asset. However, if the credit risk on a financial
instrument has not increased significantly since initial recognition (except for a purchased or originated credit-impaired financial
asset), the Group is required to measure the loss allowance for that financial instrument at an amount equal to 12-months ECL.
AASB 9 also requires a simplified approach for measuring the loss allowance at an amount equal to lifetime ECL for trade
receivables, contract assets and lease receivables in certain circumstances. The Group has applied this simplified approach,
applying the accounting policy set out in Note 1(d)(iii): Non-derivative financial instruments – impairment.
The Group recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at
amortised cost, lease receivables, amounts due from customers, as well as on loan commitments and financial guarantee contracts.
No impairment loss is recognised for investments in equity instruments. The amount of expected credit losses is updated at each
reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.
Low credit risk financial instruments
Some financial instruments are considered low credit risk due to contracts held with certain counterparties, including government
organisations with strong capacity to meet contractual cash flow obligations in the near term and not expected to be affected by
changes in economic and business conditions.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
58
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
i)
Credit risk continued
Measuring movements in credit risk
A summary of the categories used to measure credit risk are as follows:
Category
Company definition of category
Basis for recognition of expected credit loss
provision
Performing
Customers have a low risk of default, no past due
amounts.
12 month expected losses or
Lifetime expected losses (simplified
approach) where asset life is less than 12
months
Underperforming
Amount is initially past due (unless there is reasonable
and supportable information to prove otherwise) or
there has been a significant increase in credit risk since
initial recognition.
Lifetime expected losses – not credit
impaired
Non-performing
Amount is significantly past due (unless there is
reasonable and supportable information to prove
otherwise) and there is evidence indicating the asset is
credit impaired.
Lifetime expected losses – credit impaired
Write-off
There is evidence indicating that the debtor is in severe
financial difficulty and the Group has no realistic
prospect of recovery.
Asset is written off
The Company considers the probability of default upon initial recognition of the asset and whether there has been a significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in
credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at
the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is
reasonable and supportable, including historical experience and forward-looking information that is available without undue cost
or effort. Forward-looking information considered includes the future prospects of the industries in which the Group’s debtors
operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar
organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the
Group’s core operations. In particular, the following information is taken into account when assessing significant movements in
credit risk:
internal credit rating;
external credit rating (as far as available);
actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a
significant change to the borrower’s ability to meet its obligations;
actual or expected significant changes in the operating results of the borrower;
significant increases in credit risk on other financial instruments of the same borrower;
significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit
enhancements;
significant changes in the expected performance and behaviour of the borrower, including changes in the payment status of
borrowers in the Group and changes in the operating results of the borrower; and
macroeconomic information such as market interest rates and growth rates.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
59
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
i)
Credit risk continued
Definition of default
The Group considers the following as constituting an event of default for internal credit risk management purposes as historical
experience indicates that receivables that meet either of the following criteria are generally not recoverable:
if there is a material breach of financial covenants by the counterparty and this is not expected to be remedied in the
foreseeable future; or
information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors,
including the Group, in full (without taking into account any collaterals held by the Group). Irrespective of the above analysis,
the Group considers that default has occurred when a financial asset is significantly past due unless the Group has reasonable
and supportable information to demonstrate that a more lagging default criterion is more appropriate.
Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of
that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following
events:
significant financial difficulty of the issuer or the borrower;
a breach of contract, such as a default or past due event;
the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having
granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
the disappearance of an active market for that financial asset because of financial difficulties.
Write-off policy
The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the counterparty has been placed under liquidation or entered into bankruptcy
proceedings. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures,
taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.
Credit risk exposure
The information below details the credit quality of the Group’s financial assets and other items, as well as the Group’s maximum
exposure to credit risk by categories.
Contract debtors, trade and other receivables
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9: Financial Instruments,
which permits the use of the lifetime expected loss provision for all trade receivables. There were no significant concentrations of
credit risk in the current or prior year. The Group’s maximum exposure to credit risk for receivables at the reporting date was
$4,787.5 million (31 December 2023: $3,230.2 million). The split by geography was: Australia Pacific $2,647.5 million (31 December
2023: $1,775.3 million) and Asia, Americas & Other Overseas $2,140.0 million (31 December 2023: $1,454.9 million).
Contract debtors, trade and other receivables are rated performing, assessed under the lifetime ECL simplified method and have a
net carrying amount of $4,461.4 million (31 December 2023: $3,039.1 million). The loss allowance recognised is $51.7 million (31
December 2023: $nil). Related party receivables and loans to joint ventures and associates are rated performing, assessed under
the 12 month ECL and have a carrying amount of $326.1 million (31 December 2023: $191.1 million). The loss allowance recognised
is $nil (31 December 2023: $nil).
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
60
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
ii)
Liquidity risk
Liquidity risk is the risk of having insufficient funds to settle financial liabilities when they fall due. This includes having insufficient
levels of committed credit facilities. The Group’s objective is to maintain efficient use of cash and debt facilities in order to balance
the cost of borrowing and ensuring sufficient availability of credit facilities to meet forecast capital requirements. The Group
adopts a prudent approach to cash management which ensures sufficient levels of cash and committed credit facilities are
maintained to meet working capital requirements. Liquidity is reviewed continually by the Group’s treasury departments through
daily cash monitoring, review of available credit facilities and forecasting and matching of cash flows.
Contractual maturities are outlined below, however, we are not currently aware of any circumstances where the outflows could be
significantly different or occur earlier than indicated.
Contractual maturities of financial liabilities and cash flow hedge contracts as at 31 December 2024 are as follows:
31 December 2024
Carrying
amount
Contractual
cash flows
Less than
1 year
1-5 years
More than
5 years
$m
$m
$m
$m
$m
Non-derivative financial liabilities
Interest bearing loans
5,874.7
(6,738.9)
(205.3)
(5,176.9)
(1,356.7)
Lease liabilities
936.7
(1,022.4)
(438.4)
(565.5)
(18.5)
Total interest bearing liabilities
6,811.4
(7,761.3)
(643.7)
(5,742.4)
(1,375.2)
Trade and other payables
7,048.0
(7,048.0)
(6,515.6)
(532.4)
-
Additionally, the financial liability of $1,073.0 million represents the payout under the Elliott put option to CIMIC which is exercisable
from 22 April 2025 to 31 December 2026, as such it is uncertain if it will or not be exercised within the allowed period.
Derivative financial liabilities / (assets)
Forward exchange contracts used for foreign
currency hedging:
Net derivative financial liabilities / (assets)1
0.3
Inflow
133.1
105.1
28.0
-
Outflow
(132.8)
(105.2)
(27.6)
-
Cross currency interest rate swap:
Net derivative financial liabilities / (assets)
(55.9)
Inflow
1,119.7
15.6
1,104.1
-
Outflow
(1,139.0)
(34.6)
(1,104.4)
-
Total net derivative financial liabilities / (assets)
(55.6)
(19.0)
(19.1)
0.1
-
1Net derivative financial liabilities / (assets) relating to foreign currency hedging includes $1.0 million of derivatives in an asset
position and $1.3 million of derivatives in a liability position.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
61
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
ii)
Liquidity risk continued
Contractual maturities of financial liabilities and cash flow hedge contracts as at 31 December 2023:
31 December 2023
Carrying
amount
Contractual
cash flows
Less than
1 year
1-5 years
More than
5 years
$m
$m
$m
$m
$m
Non-derivative financial liabilities
Interest bearing loans
3,045.0
(3,202.9)
(60.4)
(2,119.3)
(1,023.2)
Lease liabilities
237.4
(256.9)
(91.5)
(156.9)
(8.5)
Total interest bearing liabilities
3,282.4
(3,459.8)
(151.9)
(2,276.2)
(1,031.7)
Trade and other payables
5,172.1
(5,172.1)
(4,997.6)
(174.5)
-
Derivative financial liabilities / (assets)
Forward exchange contracts used for foreign
currency hedging:
Net derivative financial liabilities / (assets)1
11.8
Inflow
203.9
150.7
53.2
-
Outflow
(215.7)
(158.0)
(57.7)
-
Cross currency interest rate swap:
Net derivative financial liabilities / (assets)
(22.2)
Inflow
1,098.7
15.1
60.4
1,023.2
Outflow
(1,173.6)
(34.6)
(138.4)
(1,000.6)
Total net derivative financial liabilities / (assets)
(10.4)
(86.7)
(26.8)
(82.5)
22.6
1Net derivative financial liabilities / (assets) relating to foreign currency hedging includes $0.9 million of derivatives in an asset
position and $12.7 million of derivatives in a liability position.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
62
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
ii)
Liquidity risk continued
Trade finance arrangements
The Group enters into factoring agreements with banks and financial institutions. These agreements only relate to certified
receivables, on a non-recourse basis, acknowledged by the client with payment only being subject to the passage of time. Under
the factoring agreements:
the certified receivables are de-recognised where the risks and rewards of the receivables have been transferred, as the cash
flow is only derived when there are goods or services provided or work performed by the Group for which it is entitled to be
paid;
the cash flow to the Group only arises when there is an amount certified by the client and contractually due to be paid to the
Group; there are no disputes on the amounts due and the customer has acknowledged this by way of certification; and
the receipt by the Group irrevocably removes the Group’s right to the certified receivable due from the customers.
The factoring of these receivables is therefore done on a non-recourse basis. The level of non-recourse factoring across the Group
was $743.4 million as at 31 December 2024 (31 December 2023: $481.9 million).
The Group does not consider there to be a concentration of credit risk from a financial institution.
iii)
Equity price risk
Equity price risk is the risk that the fair value of either a listed or unlisted equity investment, derivative equity instrument, or a
portfolio of such financial instruments decreases in the future. The Group invests in equity investments through its participation in
major PPP infrastructure projects. Investments may also be made as part of its strategic plans to form alliances or to invest in
specialised but complementary businesses to access specialised skills, markets, or additional capacity.
Fair values
For the fair values of listed and unlisted investments and derivative equity instruments, see section (c) of this note.
Sensitivity analysis of listed and unlisted investments
The price risk for the listed and unlisted securities is immaterial in terms of the possible impact on profit or loss or total equity.
iv)
Foreign currency risk
Foreign currency risk is the risk that the value of a financial commitment, a recognised asset or liability will fluctuate due to
changes in foreign currency rates. The Group’s foreign currency risk arises primarily from net investments in foreign operations.
The Group uses non-derivative financial instruments, such as borrowings in the foreign currencies, to hedge its investments in
foreign operations. Foreign currency gains and losses arising from translation of net investments in foreign operations are
recognised in the foreign currency translation reserve until realised.
Shareholders of the Group are exposed to foreign currency risk on project receipts and expenditure on plant and equipment
denominated in currencies other than their functional currency. Where this foreign currency risk is considered to be significant,
shareholders of the Group enter into forward exchange contracts to hedge their foreign currency risk. These hedges are classified
as cash flow hedges and measured at fair value.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
63
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
iv)
Foreign currency risk continued
Cash flow hedges
Forward exchange contracts
The Group’s forward exchange contracts protect against foreign exchange rate fluctuations on highly probable forecast
transactions. As at reporting date the fair value of these outstanding designated derivatives recognised in equity is $0.3 million (31
December 2023: $11.8 million). It is expected that the current hedged forecast transactions will occur during the periods outlined in
section (b(ii)) above and will affect the statement of profit or loss in the same periods. There are no gains or losses recognised in
the statement of profit or loss during the period due to hedge ineffectiveness.
Cross currency interest rate swap
On 20 May 2021 and 2 June 2021, CIMIC Finance Limited issued a total of EUR625.0 million of 8-Year Fixed-Rate corporate bonds in
the Euro Medium Term Note market.
The notes bear interest from 28 May 2021 at the rate of 1.5% per annum and mature on 28 May 2029. Interest on the notes is
paid annually on the 28th day of May in each year. Carrying amount at 31 December 2024: EUR625.0 million, equivalent to
$1,041.7 million (31 December 2023: EUR625.0 million, equivalent to $1,008.1 million). The average Australian dollar to Euro
exchange rate is 0.61. There are $5.1 million of capitalised borrowing and other costs recognised against the loan facility (31
December 2023: $6.2 million).
In order to hedge the exposure to movements in foreign exchange between the Australian Dollar and the Euro, the Group
entered into a Cross Currency Interest Rate Swap (“CCIRS”). The terms match the term and value of the underlying debt and
CIMIC has designated and documented this as a hedge relationship and swap the fixed rate Euro debt into fixed rate Australian
Dollar Debt with an interest rate of 3.5%.
The notional principal of the CCIRS receive leg is EUR625.0 million at a rate of 1.5% and of the pay leg is AUD $983.3 million at a
rate of 3.5%. The Group applies the maturity date approach to classify derivative financial instruments.
The hedging reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative
deferred gain or loss on the hedge is recognised in profit or loss consistent with the timing of recognition of the hedged item
through profit or loss.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
64
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
iv)
Foreign currency risk continued
Cross currency interest rate swap
12 months to
December 2024
$m
12 months to
December 2023
$m
Derivative financial assets / (liabilities)
Assets
55.9
22.2
Liabilities
-
-
Balance at reporting date
55.9
22.2
As at reporting date
Cumulative fair value adjustment on hedged item
(55.9)
(22.2)
Effective portion recognised in reserves
(55.8)
(22.0)
Changes during the reporting period
Change in fair value of the hedging instrument
33.7
43.3
Change in fair value of the hedged item
(33.8)
(43.1)
Cash flow hedge reserve (cumulative)
Cumulative fair value adjustment on hedged item
(55.9)
(22.2)
Gain / (loss) on hedge ineffectiveness recognised in profit and loss
(0.1)
(0.2)
Amount reclassified from cash flow hedge reserve to profit and loss
58.1
24.7
Effective portion recognised in cash flow hedge reserve from change in fair value of
hedging instrument after FX movement
2.1
2.3
Tax impact
(0.6)
(0.7)
Cash flow hedge reserve balance
1.5
1.6
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
65
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
iv)
Foreign currency risk continued
Forward exchange contracts
12 months to
December 2024
$m
12 months to
December 2023
$m
Derivative financial liabilities
Assets
1.0
0.9
Liabilities
(1.3)
(12.7)
Balance at reporting date
(0.3)
(11.8)
As at reporting date
Cumulative fair value adjustment on hedged item
-
-
Effective portion recognised in reserves
(0.3)
(11.8)
Changes during the reporting period
Change in fair value of the hedging instrument
11.5
(15.6)
Change in fair value of the hedged item
(11.5)
15.6
Effective portion recognised in cash flow hedge reserve from change in fair value of
hedging instrument after foreign exchange movement
(11.5)
15.6
Amount reclassified from cash flow hedge reserve to profit and loss
10.9
9.5
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
66
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
v)
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument or cash flow associated with the instrument will fluctuate due to
changes in the market interest rates. The Group uses derivative financial instruments to assist in managing its interest rate
exposure. Speculative trading is not undertaken. The Group’s interest rate risk arises from the interest receivable on ’Cash and
cash equivalents’, interest payable on ‘Interest bearing loans’ and interest payable on ‘Lease liabilities’.
Profile
At the reporting date the interest rate profile of the Group’s interest bearing financial instruments was:
December 2024
$m
December 2023
$m
Fixed rate instruments
Financial liabilities
(2,054.5)
(1,001.9)
Lease liabilities
-
-
Total fixed rate instruments
(2,054.5)
(1,001.9)
Variable rate instruments
Financial assets
2,660.7
2,498.9
Financial liabilities
(3,820.2)
(2,043.1)
Lease liabilities
(936.7)
(237.4)
Total variable rate instruments
(2,096.2)
218.4
The weighted average interest rates paid during the year were as follows:
12 months to
December 2024
%
12 months to
December 2023
%
Financial assets
3.5
3.4
Interest bearing financial instruments
6.5
4.9
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
67
33. FINANCIAL INSTRUMENTS CONTINUED
b)
Financial risk management continued
vi)
Sensitivity analysis
Foreign currency
The most significant foreign currencies the Group is exposed to is the United States dollar (US$) along with the Hong Kong dollar
(HKD), which is pegged to the US$. The applicable Australian dollar to US$ exchange rates during or at the end of the relevant
reporting period, were as follows - assets and liabilities: December 2024 0.63 (December 2023: 0.68), statement of profit or loss:
12 months to December 2024 0.66 (12 months to December 2023: 0.66).
At 31 December 2024, the share of the Group’s assets and liabilities denominated in US$ was: assets US$2,123.5 million (31
December 2023: US$1,673.4 million); liabilities US$1,762.4 million (31 December 2023: US$656.6 million). The majority of these
US$ balances are held in entities with a US$ functional currency.
A movement in the US$ against the Australian dollar at reporting date would have increased / (decreased) equity and profit or loss
by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The
analysis was performed on the same basis for the period ended 31 December 2023.
Equity
Statement of Profit or Loss
December 2024
$m
December 2023
$m
12 months to
December 2024
$m
12 months to
December 2023
$m
US$ depreciates by 5% against AU$ (AU$ appreciates)
(28.7)
(74.8)
(4.2)
(1.5)
US$ appreciates by 5% against AU$ (AU$ depreciates)
28.7
74.8
4.2
1.5
Interest rate
At the reporting date it is estimated that an increase of 100bps in floating interest rates would have decreased the Group’s profit
after tax and retained earnings by $11.1 million (31 December 2023: increased by $1.1 million). A 100bps decrease in interest rates
would have an equal and opposite effect.
With respect to the CCIRS, at the reporting date it is estimated than an increase of 100bps in floating interest rate would have
increased the Group's other comprehensive income after tax and reserves by $31.0 million (31 December 2023: increased by $37.9
million). There would be no impact to the Group's profit after tax. A 100bps decrease in the floating interest rate would have an
equal and opposite effect.
c) Net fair values of financial assets and liabilities
Fair value hierarchy
AASB 13: Fair Value Measurement requires disclosure of fair value measurements by level of the fair value hierarchy. The fair
values of financial assets and liabilities held at fair value have been determined based on either the listed price or the net present
value of cash flows using current market rates of interest.
The table below analyses other financial instruments carried at fair value, listed in order of valuation method. The different levels
have been identified as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
68
33. FINANCIAL INSTRUMENTS CONTINUED
c) Net fair values of financial assets and liabilities continued
Fair value hierarchy continued
31 December 2024
Level 1
$m
Level 2
$m
Level 3
$m
Total
$m
Assets
Financial assets at fair value through profit or loss
-
Unlisted
-
-
65.6
65.6
Financial assets at fair value through other comprehensive income
-
Listed
63.4
-
-
63.4
Derivatives
-
Forward foreign exchange contracts - cash flow hedges
-
1.0
-
1.0
-
Cross currency interest rate swap contracts - cash flow hedges
-
55.9
-
55.9
-
FX swaps – held for trading
-
7.5
-
7.5
Total assets
63.4
64.4
65.6
193.4
Liabilities
0BDerivatives
-
Forward foreign exchange contracts - cash flow hedges
-
(1.3)
-
(1.3)
-
Cross currency interest rate swap contracts - cash flow hedges
-
-
-
-
Total liabilities
-
(1.3)
-
(1.3)
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
69
33. FINANCIAL INSTRUMENTS CONTINUED
c) Net fair values of financial assets and liabilities continued
Fair value hierarchy continued
31 December 2023
Level 1
$m
Level 2
$m
Level 3
$m
Total
$m
Assets
Financial assets at fair value through profit or loss
-
Unlisted
-
-
291.0
291.0
Financial assets at fair value through other comprehensive income
-
Listed
5.9
-
-
5.9
Derivatives
-
Forward foreign exchange contracts - cash flow hedges
-
0.9
-
0.9
-
Cross currency interest rate swap contracts - cash flow hedges
-
22.2
-
22.2
-
FX swaps – held for trading
-
5.4
-
5.4
Total assets
5.9
28.5
291.0
325.4
Liabilities
Financial liabilities at fair value through profit of loss
-
Class C Shares Option
-
-
(1.6)
(1.6)
0BDerivatives
-
Forward foreign exchange contracts - cash flow hedges
-
(12.7)
-
(12.7)
-
Cross currency interest rate swap contracts - cash flow hedges
-
-
-
-
Total liabilities
-
(12.7)
(1.6)
(14.3)
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
70
33. FINANCIAL INSTRUMENTS CONTINUED
c) Net fair values of financial assets and liabilities continued
Fair value hierarchy continued
During the period there were no transfers between Level 1, Level 2 and Level 3 fair value hierarchies. Level 3 instruments comprise
unlisted equity and stapled securities and unlisted financial assets at fair value through profit and loss; the determination of the
fair value of these securities is discussed below. The tables below analyse the changes in Level 3 instruments as follows:
12 months to
December 2024
$m
12 months to
December 2023
$m
Financial assets at fair value through profit or loss
Balance at beginning of reporting period
291.0
215.8
Additions
-
2.1
Disposals
(198.9)
-
Transfers
-
43.6
(Losses) / gains recognised through profit or loss1
(26.4)
29.4
Foreign exchange recognised in other comprehensive income
(0.1)
0.1
Balance at reporting date
65.6
291.0
1(Losses)/gains recognised through profit or loss includes Thiess Class C preference shares for the year ended 31 December 2024 of
$(15.6) million (31 December 2023: $18.0 million).
Changing inputs to the Level 3 valuations to reasonably possible alternative assumptions would not change significantly amounts
recognised in profit or loss, total assets, total liabilities or total equity.
Methods and valuation techniques
The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous
reporting period.
Listed and unlisted investments
The fair values of listed investments are determined on an active market valuation basis using observable market data such as
current bid prices. The fair values of unlisted investments are determined by the use of internal valuation techniques using
discounted cash flows. Where practical the valuations incorporate observable market data. Assumptions are generally required
with regard to future expected revenues and discount rates.
Listed and unlisted debt
Fair value has been determined based on either the listed price or the net present value of cash flows using current market rates of
interest.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
71
33. FINANCIAL INSTRUMENTS CONTINUED
c) Net fair values of financial assets and liabilities continued
Methods and valuation techniques continued
The fair value of interest bearing liabilities is:
Euro Medium Term Notes - fair value EUR564.0 million, equivalent to $940.1 million; carrying value EUR625.0 million,
equivalent to $1,041.7 million (fair value 31 December 2023: EUR539.4 million, equivalent to $870.0 million; carrying value
EUR625.0 million, equivalent to $1,008.1 million).
10-Year-Fixed-Rate Guaranteed Notes - fair value US$672.1 million, equivalent to $1,066.9 million; carrying value US$650.0
million, equivalent to $1,031.7 million (31 December 2023: fair value US$nil million, equivalent to $nil million; carrying value
US$nil million, equivalent to $nil million).
The carrying amounts of other financial assets and liabilities in the Group’s statement of financial position approximate fair
values.
Cash flow hedges
The Group’s foreign currency forward contracts are not traded in active markets. The fair values of these contracts are estimated
using a valuation technique that maximises the use of observable market inputs, e.g. market exchange and interest rates are
included in Level 2 of the fair value hierarchy. Cross currency interest rate swaps are measured at the present value of future cash
flows estimated and discounted based on the applicable yield curves derived from quoted interest rates that reflect the credit risk
of various counterparties.
Put Option and Class C Shares Options
Elliott holds an option to sell all or part of its interest in Class A Preference shares or ordinary shares in Thiess to CIMIC. The terms
of the 23 April 2024 transaction mean that the Put Option is now exercisable by Elliott from April 2025 to December 2026. The put
option over the Class C Preference Shares has a six month notice period to exercise the Put Option. The exercise price will be the
lower of a cost price or a price referable to movements in the S&P / ASX 200 Total Return index plus the accrued value of any
shortfall in agreed minimum distributions.
As part of the Group’s investment in the Thiess Class C Preference shares, the parties entered into an option deed which includes
an option for Elliott to put their Class C Preference shares to CIMIC for a period of 42 months, starting six months after the end of
the Put Option period, or, six months after the date when Elliott cease to own Class A Preference shares or ordinary shares or
notices the exercise of options related to all remaining Class A preference shares or ordinary shares.
CIMIC holds a call option to acquire the Class C Preference shares from Elliott, for a period of 42 months, starting at the end of the
Put Option period or the date when Elliott ceases to own any Class A Preference shares or ordinary shares.
These options were previously recognised as derivative financial instruments in accordance with AASB 9: Financial Instruments at
fair value (31 December 2023: $nil for the Put Option and $1.6m for the Class C Shares). As a consequence of the 23 April 2024
transaction and the required consolidation of Thiess, the Put Option and Hybrid Option are required to be recognised as an option
over non-controlling interest and the present value of the gross redemption value is recognised as a financial liability alongside a
reduction in the parent’s equity within reserves.
Accordingly, amounts of $920.0 million (Preference A) and $153.0 million (Preference C), totalling $1,073.0 million, is recognised in
the statement of financial position reflecting the present value of the gross redemption value of the put option over the ordinary
and Class A Preference shares and the Preference C shares. Refer to Note 29: Acquisitions and Disposals.
Valuation process
The internal valuation process for unlisted investments, unlisted debt and cash flow hedges is managed by a team in the Group
finance department which performs the valuations required for financial reporting purposes. The valuation team reports to the
CIMIC CFO. Discussions on valuation processes and outcomes are held between the valuation team and CFO as required. The
methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous
reporting period.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
72
33. FINANCIAL INSTRUMENTS CONTINUED
c) Net fair values of financial assets and liabilities continued
Valuation inputs
The following table summarises the quantitative information about the significant unobservable inputs used in Level 3 fair value
measurements. There were no significant inter-relationships between unobservable inputs that materially affect fair values.
Financial asset /
liabilities
Significant
unobservable inputs
Range of inputs
Relationship of inputs to fair value
Unlisted
investments
Growth rates
2.5% - 3.0%
The impact on a change in the unobservable inputs would
not change significantly amounts recognised in profit or loss,
total assets or total liabilities or total equity.
Internal rate of return
9%
Discount rates
8% - 15%
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
73
33. FINANCIAL INSTRUMENTS CONTINUED
d)
Interest bearing loans
Syndicated loans
CIMIC Finance Limited and CIMIC Finance (USA) Pty Ltd, wholly owned subsidiaries of the Company, have five core syndicated
bank debt facilities. The maturity of the facilities are as follows:
$625.0 million maturing on 4 October 2026
$475.0 million maturing on 9 December 2027
$521.6 million maturing on 4 October 2028
$1,071.7 million maturing on 4 October 2028
$849.2 million maturing on 1 October 2029
Thiess Group Holdings Pty Ltd, a subsidiary of the Company, has the following core syndicated bank debt facilities. The maturity
of the facilities are as follows:
$1,566.0 million maturing on 6 January 2028
$266.0 million maturing on 6 January 2028 (USD Facility)
$700.0 million maturing on 6 January 2028
The total carrying amount at 31 December 2024 was $3,469.4 million (carrying amount at 31 December 2023: $1,833.9 million).
There are $29.5 million of capitalised borrowing costs recognised against the loan facilities (31 December 2023: $15.8 million). No
amounts drawn under the syndicated loans are classified as current.
At 31 December 2024, the Group had undrawn bank facilities of $2,703.1 million (31 December 2023: $1,396.6 million), and
undrawn bank guarantee facilities of $472.8 million (31 December 2023: $477.8 million).
Euro Medium Term Notes
On 20 May 2021 and 2 June 2021, CIMIC Finance Limited issued a total of EUR625.0 million of 8-Year Fixed-Rate corporate bonds
in the Euro Medium Term Note market.
The notes bear interest from 28 May 2021 at the rate of 1.50% per annum and mature on 28 May 2029. Interest on the notes is
paid annually on the 28th day of May in each year. Carrying amount at 31 December 2024: EUR625.0 million, equivalent to
$1,041.7 million (31 December 2023: EUR625.0 million, equivalent to $1,008.1 million). There are $5.1 million of capitalised
borrowing costs recognised against the notes (31 December 2023: $6.2 million).
Guaranteed Senior Notes
On 25 March 2024, CIMIC Finance (USA) Pty Ltd, a wholly owned subsidiary of the Company, issued a total of US$650.0 million of
10-Year Fixed-Rate Guaranteed Notes.
The notes bear interest from 25 March 2024 at the rate of 7.0% per annum and mature on 25 March 2034. Interest on the notes
will be paid semi-annually on the 25th day of March and September in each year, commencing on 25th September 2024. Carrying
amount at 31 December 2024: US$650.0 million (31 December 2023: US$nil) equivalent to $1,031.7 million (31 December 2023:
$nil). There are $13.8 million of capitalised borrowing costs recognised against the loan facility (31 December 2023: $nil million).
Bilateral loans
At 31 December 2024, bilateral and other loan facilities outstanding were $304.4 million (31 December 2023: $225.0 million).
Other loans
At 31 December 2024, other loan facilities outstanding were $75.9 million (31 December 2023: $nil).
Secured facilities
Of the Group’s total interest bearing liabilities $1,973.2 million as at 31 December 2024 (31 December 2023: $nil) is secured by a
fixed and floating charge over assets with a total carrying value as at 31 December 2024 of $3,562.2 million (31 December 2023:
$nil), both of which relate to Thiess Group Holdings Pty Ltd.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
74
33. FINANCIAL INSTRUMENTS CONTINUED
e)
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right
to offset the recognised amounts and there is an intention to settle on a net basis or realise the assets and settle the liability
simultaneously. The gross and net positions of financial assets and liabilities that have been offset in the balance sheet are
disclosed in the table below.
Effects of offsetting on the balance sheet
Related amounts not offset
Gross amounts of
bank accounts with a
debit balance
(financial asset)
Gross amounts of
bank accounts with
a credit balance
(financial liability)
Net cash amount
Amounts subject to
master netting
arrangements
Net amount
$m
$m
$m
$m
$m
December 2024
Cash1
573.0
(33.2)
539.8
-
-
December 2023
Cash1
646.4
(48.5)
597.9
-
-
1The Group has transactional banking facilities that notionally pool grouped bank accounts with credit and debit balances.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
75
34. EMPLOYEE BENEFITS
a)
Defined contribution superannuation funds
During the period, the Group recognised $331.7 million (31 December 2023: $214.4 million) of defined contribution expenses.
b)
Long-Term Incentive Plan
The Group’s ultimate controlling parent entity, Actividades de Construcción y Servicios, SA (ACS), established a Long-Term
Incentive Plan for the period 2023 to 2028 (the Plan). ACS granted stock options to CIMIC Executive Board members and certain
executives in the CIMIC Group in 2023. The Plan will be settled by ACS using its own equity, and with no obligation by CIMIC to
fund the scheme. As such the Plan is considered to be equity settled in accordance with AASB 2: Share-based Payment. CIMIC
recognises an employee expense and a corresponding deemed capital contribution from ACS.
The following terms and conditions apply:
(a) The maximum number of granted options is 1,155,000 (December 2023: 1,040,000).
(b) The beneficiaries are 37 executives (31 December 2023: 34) with options from 15,000 to 200,000, including the Executive
Chairman, Chief Executive Officer and Chief Financial Officer.
(c) The strike price will be EUR 31.55, equivalent to AUD $52.58 (31 December 2023: AUD $50.89) per share. The fair value of the
scheme is estimated at EUR 2.20 equivalent to AUD $3.60 per share.
(d) The options were granted to the executives on 1 July 2023 and, subject to achieving the Plan and Service conditions, will
expire on 30 June 2028.
(e) Vesting conditions require that, in addition to the service conditions required until the exercise date, the operational, financial
and sustainability-related performance of the ACS Group during the relevant period must be compliant with the ACS Group’s
objectives. The criteria chosen for meeting these objectives are:
•
With a weighting of 40%, the Total Shareholder Return (TSR) in the period (2023-2025) must be higher than the
median of main companies in the sector with comparable stock market capitalization and international status to
ACS. In this case, the executive receives 100% of the awards assigned in this section. If the TSR in this period is less
than the 25th percentile of the comparable sample, the executive receives no awards for this section. If the TSR is
between the 25th and 50th percentile of the sample, the executive will receive a proportional number of rewards to
result (0% for the 25th percentile and 100% for the 50th percentile).
•
With a weighting of 40%, the average return on equity (ROE) of the ACS Group in 2023-2025, measured as the
percentage net profit over equity for the previous year (Net Profit / Equity), must be more than 10%. In the case of a
lower result, the executive will be granted no awards.
•
With a weighting of 20%, the average percentile obtained in the Dow Jones Sustainability Index (DJSI) in 2023-2025
must be greater than 85%. In this case, the executive receives 100% of the awards assigned in this section. If the
average DJSI percentile in the measurement period is less than the 60th percentile, the executive receives no awards
in this section. If the result is between the 60th and 85th percentile, the executive will receive a proportional
number of rewards to result (0% for the 60th percentile and 100% for the 85th percentile).
The share-based remuneration is recognised as expenses in the consolidated income statement, with a balancing entry in other
reserves in equity. Total amounts recognised in the period to 31 December 2024 is AUD $0.6 million (31 December 2023: $0.2
million).
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
76
34. EMPLOYEE BENEFITS CONTINUED
b)
Long-Term Incentive Plan continued
Long-Term Incentive
Date of grant
1 July 2023
Date of expiry
30 June 2028
Grant date fair value
AUD $3.60
Original grant
1,040,000
Unexercised options
Unexercised options at 1 January 2024
1,040,000
-
Thiess acquisition1
130,000
-
Exercised
(70,000)
-
Lapsed/forfeited
(15,000)
Unexercised options at 31 December 2024
1,085,000
Exercisable options
-
At 31 December 2024
-
Non-exercisable options
-
At 31 December 2024
1,085,000
1Represents the original stock options granted to five Thiess executives, granted also on 1 July 2023 under the ACS Long-Term
Incentive Plan, which are now transferred and consolidated within the CIMIC Group as part of the acquisition of the additional 10%
of Thiess in 2024.
35. RELATED PARTY DISCLOSURES
a)
Key management personnel (KMP) and Directors
KMP compensation:
12 months to
December 2024
$’000
12 months to
December 2023
$’000
Short-term employee benefits
10,305
12,278
Post-employment benefits
189
157
Termination benefits2
2,366
128
Share-based payments
245
122
Total KMP compensation
13,105
12,685
2Included in the December 2024 Termination benefits is $0.9 million in relation to share based payments.
The terms and conditions of transactions with KMP and their related entities were no more favourable than those available, or
which might reasonably be expected to be available, on similar transactions to non-Director related entities on an arm’s length
basis.
Directors:
D Robinson is a partner of ESV Accounting and Business Advisors and Principal of Harveys Consulting, both of which received fees
from HOCHTIEF Australia Holdings Limited for services provided to that company, which is a related party.
R Seidler received fees from HOCHTIEF Australia Holdings Limited, for services provided to that company.
Loans to KMP
There were no loans to KMP in the current or prior reporting period.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
77
35. RELATED PARTY DISCLOSURES CONTINUED
b)
Transactions with other related parties
Unless otherwise disclosed, transactions with other related parties are made on normal commercial terms and conditions. The
aggregate of related party transactions was not material to the overall operations of the Group.
December 2024
$’000
December 2023
$’000
Aggregate amounts receivable from related parties at reporting date
Ultimate parent
73
-
Parent
229,620
156,100
Associates
12,429
21,490
Joint venture entities
10,505
10,825
Non-controlling interest
69,406
-
Other
4,028
2,720
Aggregate amounts payable to related parties at reporting date
Associates
(88,087)
(64,389)
Joint venture entities
(63,537)
(233,451)
1In 2023, CIMIC had identified certain unavoidable costs incurred due to HOCHTIEF Australia Holdings Limited’s acquisition of the
remaining minority interest in CIMIC or through CIMIC management aligning to HOCHTIEF Australia Holdings Limited’s strategic
direction. As such CIMIC and HOCHTIEF Australia Holdings Limited agreed a schedule of costs to be re-imbursed where it is
considered commercially reasonable, by both parties, to do so. HOCHTIEF Australia Holdings Limited agreed to reimburse CIMIC
$57.5 million of costs for the year ending 31 December 2023.
12 months to
December 2024
$’000
12 months to
December 2023
$’000
Revenue – income from related parties
Parent1
-
57,500
Associates
37,652
31,434
Joint venture entities
109,151
136,728
Revenue - interest received / receivable from related parties
Associates
1,500
1,200
Finance costs – interest paid / payable to related parties
Joint venture entities
(1,500)
-
Finance costs - impact of discounting - related parties
Associates
(5,199)
(4,011)
Joint venture entities
(3,044)
(8,815)
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
78
35. RELATED PARTY DISCLOSURES CONTINUED
b)
Transactions with other related parties continued
December 2024
Number of
employees
December 2023
Number of
employees
Number of employees
Number of employees at reporting date1
38,394
30,960
1December 2024 includes all of Thiess employees following additional 10% acquisition in the period. December 2023 includes a
proportional share of employees of Thiess.
c)
Company information
CIMIC Group Limited is a public company limited by shares and is domiciled in Australia. The Company was incorporated in
Victoria, Australia. The address of the registered office is 177 Pacific Highway, North Sydney, NSW, Australia, 2060. Number of
employees at reporting date: 7 (31 December 2023: 7).
The Group operates in the infrastructure, resources and property markets. Principal activities of the Group within these markets
are construction, mining and mineral processing, public private partnerships, engineering and other services (including
environmental, telecommunications and operations and maintenance).
d)
Ultimate parent entity
The ultimate Australian parent entity is HOCHTIEF Australia Holdings Limited and the ultimate parent entity is Actividades de
Construcción y Servicios, SA (ACS) incorporated in Spain.
CIMIC Directors, Mr D Robinson, Mr P Sassenfeld and Mr R Seidler were directors of HOCHTIEF Australia Holdings Limited during
the period.
CIMIC Directors Messrs del Valle Pérez, López Jiménez and Juan Santamaria were directors of ACS during the period.
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
79
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES
a)
Parent entity disclosures
As at, and throughout, the financial year ended 31 December 2024 the parent entity of the Group was CIMIC Group Limited. A
summarised statement of profit or loss and summarised statement of financial position at 31 December 2024 is set out below:
Company
12 months to
December 2024
$m
12 months to
December 2023
$m
Comprehensive income
(Loss) / profit for the period
(456.1)
1,361.3
Other comprehensive income
-
-
Total comprehensive (loss) / income for the period
(456.1)
1,361.3
December 2024
$m
December 2023
$m
Statement of Financial Position
Current assets
183.2
192.9
Non-current assets
6,462.3
6,122.1
Total assets
6,645.5
6,315.0
Current liabilities
41.8
35.8
Non-current liabilities
5,044.3
4,210.9
Total liabilities
5,086.1
4,246.7
Net assets
1,559.4
2,068.3
Equity
Share capital
1,458.7
1,458.7
Reserves
(91.5)
(91.5)
Retained earnings
192.2
701.2
Total equity
1,559.4
2,068.4
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
80
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities
Name of entity
Interest
held
Place of
incorporation
512 Wickham Street Pty Ltd
(B)
100%
NSW
512 Wickham Street Trust
(B)
100%
NSW
A.C.N. 126 130 738 PTY LTD
(B)
100%
VIC
A.C.N. 151 868 601 PTY. LTD.
(B)
100%
VIC
Alliance Contracting Pty Ltd
(C)
100%
WA
Alloy Fab Pty Ltd
(B)
100%
WA
Arus Tenang Sdn Bhd
100%
Malaysia
Ausindo Holdings Pte Ltd
(C)
100%
Singapore
BCJHG Nominees Pty Ltd
(B)
100%
VIC
BCJHG Trust
(B)
100%
VIC
Bintai – Leighton JV
100%
Singapore
Broad Construction Pty Ltd1
(B)
100%
QLD
Broad Construction Services (NSW / VIC) Pty Ltd
(B)
100%
WA
Broad Construction Services (WA) Pty Ltd
(B)
100%
WA
Broad Group Holdings Pty Ltd1
(B)
100%
WA
CG Investments 4 Pty Ltd
(A), (B)
100%
NSW
CGI3 Pty Limited
(B)
100%
VIC
CGI4 Holdings Pty Ltd
(A), (B)
100%
NSW
CIMIC Admin Services Pty Limited1
(B)
100%
NSW
CIMIC Energy Pty Ltd
(A), (B)
100%
NSW
CIMIC Finance (USA) Pty Ltd
(B)
100%
NSW
CIMIC Finance Limited1
(B)
100%
NSW
CIMIC Group Investments No. 2 Pty Limited
(B)
100%
VIC
CIMIC Group Investments Pty Limited
(B)
100%
VIC
CIMIC Group Limited4
(B)
100%
VIC
CIMIC Residential Investments Pty Ltd
(B)
100%
VIC
CMENA Pty Limited
(B)
100%
VIC
Cobbora Solar Farm Pty Ltd
(A),(B)
100%
NSW
Cobbora Solar Farm Trust
(A)
100%
NSW
Cobbora Solar Holdings Pty Ltd
(A)
100%
NSW
Cobbora Solar Mid Pty Ltd
(A)
100%
NSW
Cobbora Solar Mid Trust
(A)
100%
NSW
CPB Contractors (Australia) Pty Limited
(A), (B)
100%
NSW
CPB Contractors (PNG) Limited
100%
Papua New Guinea
CPB Contractors (Queensland) Pty Limited
(A), (B)
100%
QLD
CPB Contractors (Victoria) Pty Limited
(B)
100%
VIC
CPB Contractors Pty Limited1
(B)
100%
NSW
CPB Contractors Pty Limited & UGL Engineering Pty Limited
(A)
100%
VIC
CPB Contractors UGL Engineering Joint Venture
(B)
100%
VIC
CPB Projects Pty Ltd (formerly known as Newest Metro Pty Ltd)
(B)
100%
NSW
Curara Pty Ltd
(B)
100%
WA
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
81
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities continued
Name of entity
Interest
held
Place of
incorporation
D.M.B. Pty. Ltd.
100%
QLD
DAIS VIC Pty Ltd
(B)
100%
VIC
Devine Constructions Pty Ltd
100%
QLD
Devine Funds Pty Ltd
100%
VIC
Devine Funds Unit Trust
100%
QLD
Devine Homes Pty Ltd
100%
QLD
Devine Land Pty Ltd
100%
QLD
Devine Pty Limited
100%
QLD
Devine Management Services Pty Ltd
100%
QLD
Devine Springwood No. 2 Pty Ltd
100%
QLD
Ecco Engineering Company Limited
100%
Hong Kong
EIC Activities Pty Ltd
(B)
100%
VIC
EIC Activities Pty Ltd (NZ)
100%
New Zealand
Fleetco Canada Rentals Ltd
(C)
100%
Canada
Fleetco Chile SPA
(C)
100%
Chile
Fleetco Holdings Pty Limited
(C)
100%
VIC
Fleetco Management Pty Limited
(C)
100%
VIC
Fleetco Rentals 2017 Pty Limited
(C)
100%
VIC
Fleetco Rentals Blue Pty Ltd
(A), (C)
100%
QLD
Fleetco Rentals CT Pty. Limited
(C)
100%
VIC
Fleetco Rentals DLL Pty Ltd
(C)
100%
QLD
Fleetco Rentals Enzo Pty Ltd
(C)
100%
QLD
Fleetco Rentals JAML Pty Ltd
(C)
100%
QLD
Fleetco Rentals KA Pty Ltd
(C)
100%
QLD
Fleetco Rentals LA Pty Ltd
(C)
100%
QLD
Fleetco Rentals LANZ Pty Ltd
(C)
100%
QLD
Fleetco Rentals LUS INC
(C)
100%
United States
Fleetco Rentals MA Pty Ltd
(C)
100%
QLD
Fleetco Rentals MAGNI Pty Ltd
(C)
100%
QLD
Fleetco Rentals MEF Pty Ltd
(C)
100%
QLD
Fleetco Rentals NA Pty Ltd
(C)
100%
QLD
Fleetco Rentals Omega Pty Limited
(C)
100%
VIC
Fleetco Rentals Pty Limited
(C)
100%
VIC
Giddens Investment Limited
100%
Hong Kong
Hamilton Harbour Developments Pty Ltd
100%
QLD
Hamilton Harbour Unit Trust (Devine Hamilton Unit Trust)
100%
VIC
Hopeland Solar Farm Pty Ltd
(B)
100%
NSW
Hopeland Solar Farm Trust
(B)
100%
QLD
Hopeland Solar Holdings Pty Ltd
(B)
100%
NSW
Hunter Valley Earthmoving Co Pty Ltd
(C)
100%
NSW
HWE Mining Pty Limited
(C)
100%
VIC
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
82
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities continued
Name of entity
Interest
held
Place of
incorporation
ICC Infrastructure Pty Ltd
(B)
100%
WA
ICC Mining Pty Ltd
(B)
100%
WA
IDD Technology Pty Ltd
(B)
100%
NSW
Industrial Composites Engineering Pty Ltd
(B)
100%
WA
Innovative Asset Solutions Group Pty Ltd
(B)
100%
WA
Innovative Asset Solutions Pty Ltd
(B)
100%
WA
Innovative Asset Solutions Pty Ltd & UGL Operations and Maintenance (Services)
Pty Ltd
(B)
100%
WA
Interquip Construction Pty Ltd
(C)
60%
WA
Interquip Pty Ltd
(C)
60%
WA
Jet-Cut Pty Ltd
(B)
100%
WA
JH ServicesCo Pty Ltd
(B)
100%
VIC
JHAS Pty Ltd
(B)
100%
VIC
JHI Investment Pty Ltd
(B)
100%
VIC
Kings Square Developments Pty Ltd
(B)
100%
QLD
Kings Square Developments Unit Trust
(B)
100%
QLD
Leakes Rd DC Holdings Pty Ltd
(A)
100%
NSW
Leakes Rd DC Mid Pty Ltd
(A)
100%
NSW
Leakes Rd DC Mid Trust
(A)
100%
NSW
Leakes Rd DC Pty Ltd
(A), (B)
100%
NSW
Leakes Rd DC Trust
(A)
100%
NSW
Legacy JHI Pty Ltd
(B)
100%
VIC
Leighton (PNG) Limited
100%
Papua New Guinea
Leighton Asia (Hong Kong) Holdings (No. 2) Limited
100%
Hong Kong
Leighton Asia Limited
100%
Hong Kong
Leighton Asia Philippines Inc
100%
Philippines
Leighton Asia Southern Pte. Ltd.
100%
Singapore
Leighton Contractors (Asia) Limited
100%
Hong Kong
Leighton Contractors (Indo-China) Limited
100%
Hong Kong
Leighton Contractors (Laos) Sole Co., Limited
100%
Laos
Leighton Contractors (Malaysia) Sdn Bhd
100%
Malaysia
Leighton Contractors (Mechanical & Engineering) Pte. Ltd (formerly UGL
(Singapore) Pte Ltd)
100%
Singapore
Leighton Contractors (Philippines) Inc
40%
Philippines
Leighton Contractors Inc
100%
United States
Leighton Contractors Infrastructure Nominees Pty Ltd
(B)
100%
VIC
Leighton Contractors Infrastructure Pty Ltd
(B)
100%
VIC
Leighton Contractors Infrastructure Trust
(B)
100%
VIC
Leighton Contractors Lanka (Private) Limited
100%
Sri Lanka
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
83
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities continued
Name of entity
Interest
held
Place of
incorporation
Leighton Contractors Pty Ltd
(B)
100%
NSW
Leighton Engineering Sdn Bhd
100%
Malaysia
Leighton Foundation Engineering (Asia) Limited
100%
Hong Kong
Leighton Group Property Services Pty Ltd
(B)
100%
VIC
Leighton Harbour Trust
(B)
100%
QLD
Leighton Holdings Infrastructure Nominees Pty Ltd
(B)
100%
VIC
Leighton Holdings Infrastructure Pty Ltd
(B)
100%
VIC
Leighton Holdings Infrastructure Trust
(B)
100%
VIC
Leighton India Contractors Private Limited3
100%
India
Leighton India Holdings Pte Ltd
100%
Singapore
Leighton Infrastructure Investments Pty Limited
(B)
100%
NSW
Leighton Infrastructure Limited
100%
Hong Kong
Leighton International Mauritius Holdings Limited No. 4
100%
Mauritius
Leighton Investments Mauritius Limited No. 4
100%
Mauritius
Leighton Joint Venture
100%
Hong Kong
Leighton Offshore Eclipse Pte Ltd
100%
Singapore
Leighton Offshore Pte Ltd
100%
Singapore
Leighton Offshore Sdn Bhd
100%
Malaysia
Leighton Offshore Stealth Pte Ltd
100%
Singapore
Leighton Portfolio Services Pty Limited
(B)
100%
ACT
Leighton Projects Consulting (Shanghai) Limited
100%
China
Leighton Properties (Brisbane) Pty Limited
(B)
100%
QLD
Leighton Properties (VIC) Pty Ltd
(B)
100%
VIC
Leighton Properties (WA) Pty Limited
(B)
100%
NSW
Leighton Properties Pty Limited
(B)
100%
QLD
Leighton South East Asia Pty Limited
(A),(B)
100%
NSW
Leighton Superannuation Pty Ltd
(B)
100%
NSW
Leighton U.S.A. Inc.
100%
United States
Leighton Yongnam Joint Venture
100%
Singapore
LH Holdings Co Pty Ltd
(B)
100%
VIC
LH Holdings No. 2 Pty Ltd
(B)
100%
VIC
LH Holdings No. 3 Pte Ltd
100%
Singapore
LMENA Pty Limited
(B)
100%
VIC
LNWR Pty Limited
(B)
100%
VIC
LNWR Trust
(B)
100%
NSW
Logistic Engineering Services Pty Ltd
(B)
100%
VIC
MACA Civil Pty Ltd
(C)
100%
WA
MACA Crushing Pty Ltd
(C)
100%
WA
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
84
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities continued
Name of entity
Interest
held
Place of
incorporation
MACA Infrastructure Pty Ltd
(C)
100%
VIC
MACA Limited
(C)
100%
WA
MACA Mineracao e Construcao Civil Ltda
(C)
100%
Brazil
MACA Mining Pty Ltd
(C)
100%
WA
MACA Plant Leasing CA Pty Ltd
(C)
100%
WA
MACA Plant Leasing MA Pty Ltd
(C)
100%
WA
MACA Plant Pty Ltd
(C)
100%
WA
MACA Resources Pty Ltd
(C)
100%
WA
Majwe Mining Joint Venture (Pty) Limited
(C)
70%
Botswana
Marniyarra Mining & Civils Pty Ltd
(C)
50%
WA
Maverick United Sdn. Bhd.
(A)
100%
Malaysia
Mintrex Pty Ltd
(C)
60%
WA
MIQ Engineering Pty Ltd
(C)
60%
WA
Network Rezolution Finance Pty Ltd
(B)
100%
VIC
Nexus Point Solutions Pty Ltd
(B)
100%
NSW
Oil Sands Employment Ltd
(C)
100%
Canada
Opal Insurance (Singapore) Pte Ltd
100%
Singapore
OPMS Cambodia Co Ltd
(C)
100%
Cambodia
Optima Activities Pty Ltd
(B)
100%
NSW
Pacific Partnerships Digital Pty Ltd
(A)
100%
NSW
Pacific Partnerships Energy 2 Pty Ltd
(A)
100%
NSW
Pacific Partnerships Energy Pty Ltd
(B)
100%
VIC
Pacific Partnerships Holdings Pty Ltd
(B)
100%
VIC
Pacific Partnerships Investments 2 Pty Ltd
(B)
100%
VIC
Pacific Partnerships Investments 2 Trust
(B)
100%
VIC
Pacific Partnerships Investments Pty Ltd
(B)
100%
VIC
Pacific Partnerships Investments Trust
(B)
100%
VIC
Pacific Partnerships PH Finance Pty Ltd
(A)
100%
NSW
Pacific Partnerships Pty Ltd
(B)
100%
VIC
Pacific Partnerships Services NZ Limited
100%
New Zealand
Pekko Engineers Limited
100%
Hong Kong
Pioneer Homes Australia Pty Ltd
100%
QLD
Ports & Co Pty Ltd
(C)
100%
VIC
PT Leighton Contractors Indonesia
95%
Indonesia
PT Thiess Contractors Indonesia
(C)
100%
Indonesia
PT Thiess Engineering Indonesia
(C)
100%
Indonesia
Pybar Holdings Pty Limited
(C)
100%
NSW
Pybar Mining Services Pty Ltd
(C)
100%
NSW
Regional Trading Limited
100%
Hong Kong
Riverstone Rise Gladstone Pty Ltd
100%
QLD
Riverstone Rise Gladstone Unit Trust
100%
QLD
RTL Mining And Earthworks Pty Ltd2
(C)
88%
VIC
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
85
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities continued
Name of entity
Interest
held
Place of
incorporation
Sapphire Insurance Pte. Ltd.
(C)
100%
Singapore
Sedgman Asia Ltd
100%
Hong Kong
Sedgman Botswana (Pty) Ltd
100%
Botswana
Sedgman Canada Limited
100%
Canada
Sedgman Chile SPA
100%
Chile
Sedgman Construction Pty Ltd
(A)
100%
QLD
Sedgman Consulting Pty Ltd
(B)
100%
QLD
Sedgman CPB Joint Venture (SCJV)
(B)
100%
QLD
Sedgman Employment Services Pty Ltd
(B)
100%
QLD
Sedgman Engineering Technology (Beijing) Company Limited
100%
China
Sedgman GmbH
(A)
100%
Germany
Sedgman International Employment Services Pty Ltd
(B)
100%
QLD
Sedgman Labour Services Pty Limited
(A)
100%
QLD
Sedgman MinSol Pty Ltd
100%
QLD
Sedgman Mozambique Limitada2
100%
Mozambique
Sedgman Novopro Projects Inc.
100%
Canada
Sedgman Onyx Pty Limited
(B)
100%
WA
Sedgman Operations Employment Services Pty Ltd
(B)
100%
QLD
Sedgman Operations Pty Ltd
(B)
100%
QLD
Sedgman Projects Employment Services Pty Ltd
(B)
100%
QLD
Sedgman Prudentia Holdings Pty Ltd
100%
QLD
Sedgman Prudentia Pty Ltd
100%
QLD
Sedgman Pty Ltd
(B)
100%
QLD
Sedgman South Africa (Proprietary) Ltd
100%
South Africa
Sedgman USA Inc
100%
United States
Sustaining Works Pty Limited
(B)
100%
QLD
Talcliff Pty Ltd
100%
QLD
Tambala Pty Ltd2
100%
Mauritius
Telecommunication Infrastructure Pty Ltd
(B)
100%
VIC
Thai Leighton Limited
49%
Thailand
Thiess (Mauritius) Pty Ltd
(C)
100%
Mauritius
Thiess Africa Investments (Pty) Ltd
(C)
100%
South Africa
Thiess Botswana (Proprietary) Limited
(C)
100%
Botswana
Thiess Chile SPA
(C)
100%
Chile
Thiess Contractors (Malaysia) Sdn. Bhd.
(C)
100%
Malaysia
Thiess Contractors Canada Ltd
(C)
100%
Canada
Thiess Group Finance Pty Ltd
(C)
100%
NSW
Thiess Group Finance USA Pty Ltd
(C)
100%
QLD
Thiess Group Holdings Pty Ltd
(C)
60%
NSW
Thiess Group Investments Pty Ltd
(C)
100%
QLD
Thiess India Pvt Ltd3
(C)
100%
India
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
86
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities continued
Name of entity
Interest
held
Place of
incorporation
Thiess Infrastructure Pty Ltd
(B)
100%
VIC
Thiess Infrastructure Nominees Pty Ltd
(B)
100%
VIC
Thiess Infrastructure Trust
(B)
100%
NSW
Thiess Khishig Arvin JV LLC
80%
Mongolia
Thiess Midco Holdings Pty Ltd
(C)
100%
NSW
Thiess Minecs India Pvt Ltd3
(C)
90%
India
Thiess Mining Canada Ltd
(C)
100%
Canada
Thiess Mining Maintenance Pty Ltd
(C)
100%
QLD
Thiess Mining USA Inc.
(C)
100%
United States
Thiess Mongolia Holdings Pte Ltd
(C)
100%
Singapore
Thiess Mongolia LLC
(C)
100%
Mongolia
Thiess Mozambique, Limitada
(C)
100%
Mozambique
Thiess NZ Ltd
(C)
100%
New Zealand
Thiess Pty Ltd
(C)
100%
QLD
Thiess South Africa (Pty) Ltd
(C)
100%
South Africa
Thiess SQ Holdings Pty Ltd
(C)
100%
NSW
Think Consulting Group Pty Ltd
(B)
100%
VIC
Townsville City Project Pty Ltd
100%
NSW
Townsville City Project Trust
100%
QLD
UGL (Asia) Sdn Bhd
100%
Malaysia
UGL (NZ) Limited
100%
New Zealand
UGL Engineering Private Limited3
100%
India
UGL Engineering Pty Ltd
(B)
100%
NSW
UGL Integra Pty Ltd
(B)
100%
NSW
UGL Operations and Maintenance (Services) Pty Limited
(B)
100%
QLD
UGL Operations and Maintenance Pty Ltd
(B)
100%
VIC
UGL Pty Limited
(B)
100%
WA
UGL Rail (North Queensland) Pty Ltd
(B)
100%
QLD
UGL Rail Pty Ltd
(B)
100%
NSW
UGL Rail Services Pty Limited
(B)
100%
NSW
UGL Regional Linx Pty Ltd
(B)
100%
NSW
UGL Resources (Contracting) Pty Ltd
(B)
100%
VIC
UGL Resources (Malaysia) Sdn Bhd
100%
Malaysia
UGL Solutions Pty Limited
(B)
100%
WA
UGL Unipart Rail Services Pty Ltd
70%
VIC
UGL Utilities Pty Ltd
(B)
100%
NSW
United Group Infrastructure (NZ) Limited
100%
New Zealand
United KG (No. 1) Pty Ltd
(B)
100%
NSW
United KG (No. 2) Pty Ltd
(B)
100%
VIC
Wai Ming M&E Limited
100%
Hong Kong
Wealth Mining Pty Ltd
(C)
100%
NSW
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
87
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
b)
Controlled entities continued
Name of entity
Interest
held
Place of
incorporation
Western Port Highway Trust
(B)
100%
VIC
Wood Buffalo Employment Ltd
(C)
100%
Canada
1These companies have the benefit of ASIC Instrument 2016/785 as at 31 December 2024. Refer to Note 36(i): CIMIC Group Limited
and controlled entities – Deed of cross guarantee.
2Entity has a 30 June reporting date.
3Entity has a 31 March reporting date.
4This company is a party to the Deed of Cross Guarantee as Holding Entity.
(A) Incorporated / established in the 2024 reporting period.
(B) Entities included in the tax-consolidated Group.
(C) Entities added following the Group’s acquisition of an additional 10% share interest in Thiess Group Holdings Pty Ltd which
resulted in CIMIC gaining a controlling interest in Thiess. Refer to Note 29: Acquisitions and disposals. CIMIC Group Limited
owns 60% of Thiess Group Holdings Pty Ltd, which in turn controls the entities at their interest held as stated in the table
above.
Where the Group has an ownership interest of less than 50%, the entity is consolidated where the Group can demonstrate its
control of the entity, in that it is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
c)
Acquisition and disposal of controlled entities
Refer to Note 29: Acquisitions and Disposals for further details.
d)
Liquidation of controlled entities
The following controlled entities have been liquidated during the period to 31 December 2024 as they are no longer required by
the Group in the ordinary course of business:
Jarrah Wood Pty Ltd
Silverton Group Pty Ltd
Leighton Offshore Mynx Pte Ltd
e)
Parent entity commitments and contingent liabilities
Contingent liabilities under indemnities given on behalf of controlled entities in respect of the parent: bank guarantees: $3,948.0
million (31 December 2023: $3,554.5 million); insurance bonds: $1,814.9 million (31 December 2023: $1,747.6 million); letters of
credit: $227.3 million (31 December 2023: $333.4 million).
Capital expenditure contracted for at the reporting date but not recognised as liabilities of the parent was $nil (31 December 2023:
$nil).
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
88
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
f)
Material subsidiaries
Set out below are the Company’s principal subsidiaries at 31 December 2024. Unless otherwise stated, the subsidiaries as listed
below have share capital consisting solely of ordinary shares, which are held directly by the Company, and the proportion of
ownership interests held equals to the voting rights held by the Company.
Ownership interest held by
the Company
Ownership interest held by
non-controlling interests
Name of entity
Principal activity
Country of
incorporation
December
2024 %
December
2023 %
December
2024 %
December
2023 %
CPB Contractors Pty Limited1
Engineering and Construction Australia
100
100
-
-
Leighton Asia Limited
Engineering and Construction Hong Kong
100
100
-
-
LH Holdings No.2 Pty Ltd
Engineering and Construction Australia
100
100
-
-
UGL Pty Limited
Integrated Solutions
Australia
100
100
-
-
Thiess Group Holdings Pty Ltd2 Natural Resources
Australia
60
n/a
40
n/a
1CPB Contractors Pty Limited has the benefit of ASIC Instrument 2016/785 as at 31 December 2023. For further information, refer to
section (i).
2 On 23 April 2024, CIMIC Group Limited acquired an additional 10% of Thiess comprising ordinary shares, Preference A shares and
Preference C shares in Thiess Group Holdings Pty Ltd (Thiess). Prior to this transaction, Thiess was accounted for as a joint venture
entity. Following the Group’s acquisition of the additional 10% share interest, resulting in CIMIC gaining a controlling interest, Thiess
is considered a material subsidiary.
Non-controlling interests
Following the Thiess transaction on 23 April 2024, Elliott holds a 40% shareholding in Thiess Group Holdings Pty Ltd. There are no
other material non-controlling interests relating to the Company’s material subsidiaries disclosed above as at 31 December 2024.
There were no other material transactions with non-controlling interests during the period to 31 December 2024.
g)
Parent entity transactions with wholly-owned controlled entities
Transactions with wholly-owned controlled entities were as follows: aggregate amounts receivable: $844.7 million (31 December
2023: $791.8 million); aggregate amounts payable: $5,043.3 million (31 December 2023: $4,209.8 million); interest received /
receivable: $10.7 million (31 December 2023: $9.3 million); interest paid / payable: $273.6 million (31 December 2023: $221.6
million); dividends received: $1.7 million (31 December 2023: $1,536.0 million); fees paid: $120.0 million (31 December 2023:
$119.0 million); sale of assets $nil (31 December 2023: $nil).
h)
Unconsolidated structured entities
The Group, through Thiess Group Holdings Pty Ltd, is party to several lease agreements with unconsolidated structured entities
during the reporting period. These transactions were undertaken to develop operational and financing synergies across the Group.
The unconsolidated structured entities are financed by external parties and the Group does not hold any equity interests or assets
such as loans or receivables with these entities. The relevant activities of the structured entities are directed by contractual
agreements. The entities are controlled by external parties and therefore are not consolidated by the Group.
The Group is only exposed to the variability of returns in relation to return conditions at lease expiry, which are not known at this
time. These items are also included at Note 20: Lease Liabilities and Note 30: Commitments.
The table below provides a summary of the Group’s exposure to unconsolidated structured entities
December 2024
$m
December 2023
$m
Total lease liabilities due to unconsolidated structured entities
493.8
-
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
89
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
i)
Deed of Cross Guarantee
Pursuant to the ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 (ASIC Instrument), the Company and certain
wholly owned subsidiaries entered into the Deed of Cross Guarantee dated 19 December 2016 (CIMIC Deed) for the principal
purpose of enabling these entities to take advantage of relief from the requirements of the Corporations Act to prepare and lodge a
financial report, directors’ report and auditor’s report (Financial Reporting Relief) available under the ASIC Instrument for financial
years ending 31 December 2016 onwards. The effect of the CIMIC Deed is that the Company guarantees to each creditor payment
in full of any debt in the event of the winding up of any of the subsidiaries which are party to the CIMIC Deed under certain
provisions of the Corporations Act. If a winding up occurs under other provisions of the law, the Company will only be liable in the
event that after six months any creditor has not been paid in full. The subsidiaries have given similar guarantees in the event the
Company or any other subsidiary party to the CIMIC Deed is wound up.
As at 31 December 2024, the following entities are party to the CIMIC Deed and seek to rely on financial reporting relief in respect
of the financial year ended 31 December 2024:
CIMIC Group Limited (ACN 004 482 982) (as trustee)
CIMIC Finance Limited (ACN 002 323 373) (as alternative trustee)
CIMIC Admin Services Pty Limited (ACN 086 383 977)
CPB Contractors Pty Limited (ACN 000 893 667)
Broad Group Holdings Pty Ltd (ACN 052 046 518)
Broad Construction Pty Ltd (ACN 089 532 061)
A consolidated statement of profit or loss and statement of financial position, comprising the Company and entities which are a
party to the CIMIC Deed, after eliminating all transactions between parties to the CIMIC Deed, at 31 December 2024 is set out
below.
Deed of Cross Guarantee
12 months to
December 2024
$m
12 months to
December 2023
$m
Statement of Profit or Loss
(Loss) / profit before tax
(849.5)
586.1
Income tax benefit / (expense)
203.7
(18.1)
(Loss) / profit for the period
(645.8)
568.0
Retained earnings brought forward
418.7
31.2
Dividends paid
(52.9)
(180.5)
Retained earnings at reporting date
(280.0)
418.7
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
90
36. CIMIC GROUP LIMITED AND CONTROLLED ENTITIES CONTINUED
i)
Deed of Cross Guarantee continued
Deed of Cross Guarantee
December 2024
$m
December 2023
$m
Statement of Financial Position
Assets
Cash and cash equivalents
1,544.2
1,702.5
Trade and other receivables
2,807.8
2,507.1
Current tax asset
144.4
147.0
Inventories
19.7
42.3
8Total current assets
4,516.1
4,398.9
Trade and other receivables
3,310.5
3,139.4
Investments
2,637.7
2,287.7
Property, plant and equipment
229.4
265.0
Deferred tax asset
144.4
43.1
Intangibles
9.7
6.3
Total non-current assets
6,331.7
5,741.5
Total assets
10,847.8
10,140.4
Liabilities
Trade and other payables
6,245.7
5,790.3
Provisions
162.7
143.8
Lease liabilities
40.0
48.7
Total current liabilities
6,448.4
5,982.8
Trade and other payables
1,483.9
111.7
Provisions
12.1
13.5
Interest bearing liabilities
2,298.7
2,694.2
Lease liabilities
36.1
68.2
Total non-current liabilities
3,830.8
2,887.6
Total liabilities
10,279.2
8,870.4
Net assets
568.6
1,270.0
Equity
Share capital
1,458.7
1,458.7
Reserves
(610.1)
(607.4)
Retained earnings
(280.0)
418.7
Total equity
568.6
1,270.0
CIMIC Group Limited Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements
for the 12 months to 31 December 2024
91
37. NEW ACCOUNTING STANDARDS
Standards in issue but not yet effective
At the date of authorisation of the financial statements, the Group has not applied the following new and revised Australian
Accounting Standards, Interpretations and amendments that have been issued but are not yet effective:
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (as amended AASB 18 Presentation and Disclosure in Financial Statements AASB 18 Presentation and
Disclosure in Financial Statements AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability
AASB 2022-9 Amendments to Australian Accounting Standards – Insurance Contracts in the Public Sector
AASB 2023-5 Amendments to Australian Accounting Standards- Lack of Exchangeability
AASB 2024-2 Amendments to the Classification and Measurement of Financial Instruments
AASB 2024-3 Amendments to Australian Accounting Standards – Annual Improvements Volume 11
AASB 18 Presentation and Disclosure in Financial Statements
IFRS 19 Subsidiaries without Public Accountability: Disclosures
AASB 2024-4 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128
38. EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to reporting date:
The Directors approved the financial report on 13 February 2025.
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
92
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
512 Wickham Street Pty Ltda
Body Corporate
Australia
100% Australia
-
512 Wickham Street Trust
Trust
Australia
100% Australia
-
A.C.N. 126 130 738 PTY LTD
Body Corporate
Australia
100% Australia
-
A.C.N. 151 868 601 PTY. LTD.
Body Corporate
Australia
100% Australia
-
Alliance Contracting Pty Ltd
Body Corporate
Australia
100% Australia
-
Alloy Fab Pty Ltd
Body Corporate
Australia
100% Australia
-
Arus Tenang Sdn Bhd
Body Corporate
Malaysia
100%
Foreign
Malaysia
Ausindo Holdings Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
BCJHG Nominees Pty Ltda
Body Corporate
Australia
100% Australia
-
BCJHG Trust
Trust
Australia
100% Australia
-
Bintai – Leighton JV
Partnership
Singapore
N/A
N/A2
N/A
Broad Construction Pty Ltd
Body Corporate
Australia
100% Australia
-
Broad Construction Services (NSW / VIC) Pty Ltd
Body Corporate
Australia
100% Australia
-
Broad Construction Services (WA) Pty Ltd
Body Corporate
Australia
100% Australia
-
Broad Group Holdings Pty Ltd
Body Corporate
Australia
100% Australia
-
CG Investments 4 Pty Ltd
Body Corporate
Australia
100% Australia
-
CGI3 Pty Limited
Body Corporate
Australia
100% Australia
-
CGI4 Holdings Pty Ltd
Body Corporate
Australia
100% Australia
-
CIMIC Admin Services Pty Limited
Body Corporate
Australia
100% Australia
-
CIMIC Energy Pty Limited
Body Corporate
Australia
100% Australia
-
CIMIC Finance (USA) Pty Ltd
Body Corporate
Australia
100% Australia
-
CIMIC Finance Limited
Body Corporate
Australia
100% Australia
-
CIMIC Group Investments No. 2 Pty Limited
Body Corporate
Australia
100% Australia
-
CIMIC Group Investments Pty Limited
Body Corporate
Australia
100% Australia
-
CIMIC Group Limited
Body Corporate
Australia
100% Australia
-
CIMIC Residential Investments Pty Ltd
Body Corporate
Australia
100% Australia
-
CMENA Pty Limited
Body Corporate
Australia
100% Australia
-
Cobbora Solar Farm Pty Ltda
Body Corporate
Australia
100% Australia
-
Cobbora Solar Farm Trust
Trust
Australia
100% Australia
-
Cobbora Solar Holdings Pty Ltd
Body Corporate
Australia
100% Australia
-
Cobbora Solar Mid Pty Ltda
Body Corporate
Australia
100% Australia
-
Cobbora Solar Mid Trust
Trust
Australia
100% Australia
-
CPB Contractors (Australia) Pty Limited
Body Corporate
Australia
100% Australia
-
CPB Contractors (PNG) Limited
Body Corporate
Papua New
Guinea
100%
Foreign
Papua New
Guinea
CPB Contractors (Queensland) Pty Limited
Body Corporate
Australia
100% Australia
-
CPB Contractors (Victoria) Pty Limited
Body Corporate
Australia
100% Australia
-
CPB Contractors Pty Limitedb
Body Corporate
Australia
100% Australia
-
CPB Contractors Pty Limited & UGL Engineering
Pty Limited
Partnership
Australia
N/A
N/A1
N/A
CPB Contractors UGL Engineering Joint Venture
Partnership
Australia
N/A
N/A1
N/A
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
93
CONSOLIDATED ENTITY DISCLOSURE STATEMENT CONTINUED
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
CPB Projects Pty Ltd (formerly known as Newest
Metro Pty Ltd)
Body Corporate
Australia
100% Australia
-
Curara Pty Ltd
Body Corporate
Australia
100% Australia
-
D.M.B. Pty. Ltd.
Body Corporate
Australia
100% Australia
-
DAIS VIC Pty Ltd
Body Corporate
Australia
100% Australia
-
Devine Constructions Pty Ltd
Body Corporate
Australia
100% Australia
-
Devine Funds Pty Ltda
Body Corporate
Australia
100% Australia
-
Devine Funds Unit Trust
Trust
Australia
100% Australia
-
Devine Homes Pty Ltd
Body Corporate
Australia
100% Australia
-
Devine Land Pty Ltd
Body Corporate
Australia
100% Australia
-
Devine Pty Limited
Body Corporate
Australia
100% Australia
-
Devine Management Services Pty Ltd
Body Corporate
Australia
100% Australia
-
Devine Springwood No. 2 Pty Ltd
Body Corporate
Australia
100% Australia
-
Ecco Engineering Company Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
EIC Activities Pty Ltd
Body Corporate
Australia
100% Australia
-
EIC Activities Pty Ltd (NZ)
Body Corporate
New Zealand
100%
Foreign New Zealand
Fleetco Canada Rentals Ltd
Body Corporate
Canada
100%
Foreign
Canada
Fleetco Chile SPA
Body Corporate
Chile
100%
Foreign
Chile
Fleetco Holdings Pty Limited
Body Corporate
Australia
100% Australia
-
Fleetco Management Pty Limited
Body Corporate
Australia
100% Australia
-
Fleetco Rentals 2017 Pty Limited
Body Corporate
Australia
100% Australia
-
Fleetco Rentals Blue Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals CT Pty. Limited
Body Corporate
Australia
100% Australia
-
Fleetco Rentals DLL Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals Enzo Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals JAML Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals KA Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals LA Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals LANZ Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals LUS INC
Body Corporate
United States
100%
Foreign United States
Fleetco Rentals MA Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals MAGNI Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals MEF Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals NA Pty Ltd
Body Corporate
Australia
100% Australia
-
Fleetco Rentals Omega Pty Limited
Body Corporate
Australia
100% Australia
-
Fleetco Rentals Pty Limited
Body Corporate
Australia
100% Australia
-
Giddens Investment Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Hamilton Harbour Developments Pty Ltd
Body Corporate
Australia
100% Australia
-
Hamilton Harbour Unit Trust (Devine Hamilton
Unit Trust)
Trust
Australia
100% Australia
-
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
94
CONSOLIDATED ENTITY DISCLOSURE STATEMENT CONTINUED
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
Hopeland Solar Farm Pty Ltda
Body Corporate
Australia
100% Australia
-
Hopeland Solar Farm Trust
Trust
Australia
100% Australia
-
Hopeland Solar Holdings Pty Ltd
Body Corporate
Australia
100% Australia
-
Hunter Valley Earthmoving Co Pty Ltd
Body Corporate
Australia
100% Australia
-
HWE Mining Pty Limited
Body Corporate
Australia
100% Australia
-
ICC Infrastructure Pty Ltd
Body Corporate
Australia
100% Australia
-
ICC Mining Pty Ltd
Body Corporate
Australia
100% Australia
-
IDD Technology Pty Ltd
Body Corporate
Australia
100% Australia
-
Industrial Composites Engineering Pty Ltd
Body Corporate
Australia
100% Australia
-
Innovative Asset Solutions Group Pty Ltd
Body Corporate
Australia
100% Australia
-
Innovative Asset Solutions Pty Ltdb
Body Corporate
Australia
100% Australia
-
Innovative Asset Solutions Pty Ltd & UGL
Operations and Maintenance (Services) Pty Ltd
Partnership
Australia
N/A
N/A1
N/A
Interquip Construction Pty Ltd
Body Corporate
Australia
60% Australia
-
Interquip Pty Ltd
Body Corporate
Australia
60% Australia
-
Jet-Cut Pty Ltd
Body Corporate
Australia
100% Australia
-
JH ServicesCo Pty Ltd
Body Corporate
Australia
100% Australia
-
JHAS Pty Ltd
Body Corporate
Australia
100% Australia
-
JHI Investment Pty Ltd
Body Corporate
Australia
100% Australia
-
Kings Square Developments Pty Ltda
Body Corporate
Australia
100% Australia
-
Kings Square Developments Unit Trust
Trust
Australia
100% Australia
-
Leakes Rd DC Holdings Pty Ltd
Body Corporate
Australia
100% Australia
-
Leakes Rd DC Mid Pty Ltda
Body Corporate
Australia
100% Australia
-
Leakes Rd DC Mid Trust
Trust
Australia
100% Australia
-
Leakes Rd DC Pty Ltda
Body Corporate
Australia
100% Australia
-
Leakes Rd DC Trust
Trust
Australia
100% Australia
-
Legacy JHI Pty Ltd
Body Corporate
Australia
100% Australia
-
Leighton (PNG) Limited
Body Corporate
Papua New
Guinea
100%
Foreign
Papua New
Guinea
Leighton Asia (Hong Kong) Holdings (No. 2)
Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Leighton Asia Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Leighton Asia Philippines Inc
Body Corporate
Philippines
100%
Foreign
Philippines
Leighton Asia Southern Pte. Ltd.
Body Corporate
Singapore
100%
Foreign
Singapore
Leighton Contractors (Asia) Limitedb
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Leighton Contractors (Indo-China) Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Leighton Contractors (Laos) Sole Co., Limited
Body Corporate
Laos
100%
Foreign
Laos
Leighton Contractors (Malaysia) Sdn Bhd
Body Corporate
Malaysia
100%
Foreign
Malaysia
Leighton Contractors (Mechanical & Engineering)
Pte. Ltd (formerly UGL (Singapore) Pte Ltd)
Body Corporate
Singapore
100%
Foreign
Singapore
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
95
CONSOLIDATED ENTITY DISCLOSURE STATEMENT CONTINUED
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
Leighton Contractors (Philippines) Inc
Body Corporate
Philippines
40%
Foreign
Philippines
Leighton Contractors Inc
Body Corporate
United States
100%
Foreign United States
Leighton Contractors Infrastructure Nominees
Pty Ltda
Body Corporate
Australia
100% Australia
-
Leighton Contractors Infrastructure Pty Ltd
Body Corporate
Australia
100% Australia
-
Leighton Contractors Infrastructure Trust
Trust
Australia
100% Australia
-
Leighton Contractors Lanka (Private) Limited
Body Corporate
Sri Lanka
100%
Foreign
Sri Lanka
Leighton Contractors Pty Ltd
Body Corporate
Australia
100% Australia
-
Leighton Engineering Sdn Bhd
Body Corporate
Malaysia
100%
Foreign
Malaysia
Leighton Foundation Engineering (Asia) Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Leighton Group Property Services Pty Ltd
Body Corporate
Australia
100% Australia
-
Leighton Harbour Trust
Trust
Australia
100% Australia
-
Leighton Holdings Infrastructure Nominees Pty
Ltda
Body Corporate
Australia
100% Australia
-
Leighton Holdings Infrastructure Pty Ltd
Body Corporate
Australia
100% Australia
-
Leighton Holdings Infrastructure Trust
Trust
Australia
100% Australia
-
Leighton India Contractors Private Limited3
Body Corporate
India
100%
Foreign
India
Leighton India Holdings Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
Leighton Infrastructure Investments Pty Limited
Body Corporate
Australia
100% Australia
-
Leighton Infrastructure Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Leighton International Mauritius Holdings
Limited No. 4
Body Corporate
Mauritius
100%
Foreign
Mauritius
Leighton Investments Mauritius Limited No. 4
Body Corporate
Mauritius
100%
Foreign
Mauritius
Leighton Joint Venture
Partnership
Hong Kong
N/A
Foreign
Hong Kong
Leighton Offshore Eclipse Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
Leighton Offshore Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
Leighton Offshore Sdn Bhd
Body Corporate
Malaysia
100%
Foreign
Malaysia
Leighton Offshore Stealth Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
Leighton Portfolio Services Pty Limiteda
Body Corporate
Australia
100% Australia
-
Leighton Projects Consulting (Shanghai) Limited
Body Corporate
China
100%
Foreign
China
Leighton Properties (Brisbane) Pty Limited
Body Corporate
Australia
100% Australia
-
Leighton Properties (VIC) Pty Ltd
Body Corporate
Australia
100% Australia
-
Leighton Properties (WA) Pty Limited
Body Corporate
Australia
100% Australia
-
Leighton Properties Pty Limited
Body Corporate
Australia
100% Australia
-
Leighton South East Asia Pty Limited
Body Corporate
Australia
100% Australia
-
Leighton Superannuation Pty Ltd
Body Corporate
Australia
100% Australia
-
Leighton U.S.A. Inc.
Body Corporate
United States
100%
Foreign United States
Leighton Yongnam Joint Venture
Partnership
Singapore
N/A
N/A2
N/A
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
96
CONSOLIDATED ENTITY DISCLOSURE STATEMENT CONTINUED
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
LH Holdings Co Pty Ltd
Body Corporate
Australia
100% Australia
-
LH Holdings No. 2 Pty Ltd
Body Corporate
Australia
100% Australia
-
LH Holdings No. 3 Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
LMENA Pty Limited
Body Corporate
Australia
100% Australia
-
LNWR Pty Limiteda
Body Corporate
Australia
100% Australia
-
LNWR Trust
Trust
Australia
100% Australia
-
Logistic Engineering Services Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Civil Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Crushing Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Infrastructure Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Limited
Body Corporate
Australia
100% Australia
-
MACA Mineracao e Construcao Civil Ltda
Body Corporate
Brazil
100% Foreign
Brazil
MACA Mining Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Plant Leasing CA Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Plant Leasing MA Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Plant Pty Ltd
Body Corporate
Australia
100% Australia
-
MACA Resources Pty Ltd
Body Corporate
Australia
100% Australia
-
Majwe Mining Joint Venture (Pty) Limited
Body Corporate
Botswana
70%
Foreign
Botswana
Marniyarra Mining & Civils Pty Ltd
Body Corporate
Australia
50% Australia
-
Maverick United Sdn. Bhd.
Body Corporate
Malaysia
100%
Foreign
Malaysia
Mintrex Pty Ltd
Body Corporate
Australia
60% Australia
-
MIQ Engineering Pty Ltd
Body Corporate
Australia
60% Australia
-
Network Rezolution Finance Pty Ltd
Body Corporate
Australia
100% Australia
-
Nexus Point Solutions Pty Ltd
Body Corporate
Australia
100% Australia
-
Oil Sands Employment Ltd
Body Corporate
Canada
100%
Foreign
Canada
Opal Insurance (Singapore) Pte Ltd
Body Corporate
Singapore
100% Australia
-
OPMS Cambodia Co Ltd
Body Corporate
Cambodia
100%
Foreign
Cambodia
Optima Activities Pty Ltd
Body Corporate
Australia
100% Australia
-
Pacific Partnerships Digital Pty Ltd
Body Corporate
Australia
100% Australia
-
Pacific Partnerships Energy 2 Pty Ltd
Body Corporate
Australia
100% Australia
-
Pacific Partnerships Energy Pty Ltd
Body Corporate
Australia
100% Australia
-
Pacific Partnerships Holdings Pty Ltd
Body Corporate
Australia
100% Australia
-
Pacific Partnerships Investments 2 Pty Ltda
Body Corporate
Australia
100% Australia
-
Pacific Partnerships Investments 2 Trust
Trust
Australia
100% Australia
-
Pacific Partnerships Investments Pty Ltda
Body Corporate
Australia
100% Australia
-
Pacific Partnerships Investments Trust
Trust
Australia
100% Australia
-
Pacific Partnerships PH Finance Pty Ltd
Body Corporate
Australia
100% Australia
-
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
97
CONSOLIDATED ENTITY DISCLOSURE STATEMENT CONTINUED
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
Pacific Partnerships Pty Ltd
Body Corporate
Australia
100%
Australia
-
Pacific Partnerships Services NZ Limited
Body Corporate
New Zealand
100%
Foreign New Zealand
Pekko Engineers Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Pioneer Homes Australia Pty Ltd
Body Corporate
Australia
100%
Australia
-
Ports & Co Pty Ltd
Body Corporate
Australia
100%
Australia
-
PT Leighton Contractors Indonesia
Body Corporate
Indonesia
95%
Foreign
Indonesia
PT Thiess Contractors Indonesia
Body Corporate
Indonesia
100%
Foreign
Indonesia
PT Thiess Engineering Indonesia
Body Corporate
Indonesia
100%
Foreign
Indonesia
Pybar Holdings Pty Limited
Body Corporate
Australia
100%
Australia
-
Pybar Mining Services Pty Ltd
Body Corporate
Australia
100%
Australia
-
Regional Trading Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Riverstone Rise Gladstone Pty Ltda
Body Corporate
Australia
100%
Australia
-
Riverstone Rise Gladstone Unit Trust
Trust
Australia
100%
Australia
-
RTL Mining And Earthworks Pty Ltd
Body Corporate
Australia
88%
Australia
-
Sapphire Insurance Pte. Ltd.
Body Corporate
Singapore
100%
Foreign
Singapore
Sedgman Asia Ltd
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Sedgman Botswana (Pty) Ltd
Body Corporate
Botswana
100%
Foreign
Botswana
Sedgman Canada Limited
Body Corporate
Canada
100%
Foreign
Canada
Sedgman Chile SPA
Body Corporate
Chile
100%
Foreign
Chile
Sedgman Construction Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Consulting Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman CPB Joint Venture (SCJV)
Partnership
Australia
N/A
N/A1
N/A
Sedgman Employment Services Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Engineering Technology (Beijing)
Company Limited
Body Corporate
China
100%
Foreign
China
Sedgman GmbH
Body Corporate
Germany
100%
Foreign
Germany
Sedgman International Employment Services Pty
Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Labour Services Pty Limited
Body Corporate
Australia
100%
Australia
-
Sedgman MinSol Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Mozambique Limitada
Body Corporate
Mozambique
100%
Foreign Mozambique
Sedgman Novopro Projects Inc.
Body Corporate
Canada
100%
Foreign
Canada
Sedgman Onyx Pty Limited
Body Corporate
Australia
100%
Australia
-
Sedgman Operations Employment Services Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Operations Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Projects Employment Services Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Prudentia Holdings Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Prudentia Pty Ltd
Body Corporate
Australia
100%
Australia
-
Sedgman Pty Ltdb
Body Corporate
Australia
100%
Australia
-
Sedgman South Africa (Proprietary) Ltd
Body Corporate
South Africa
100%
Foreign
South Africa
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
98
CONSOLIDATED ENTITY DISCLOSURE STATEMENT CONTINUED
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
Sedgman USA Inc
Body Corporate
United States
100%
Foreign United States
Sustaining Works Pty Limited
Body Corporate
Australia
100%
Australia
-
Talcliff Pty Ltd
Body Corporate
Australia
100%
Australia
-
Tambala Pty Ltd
Body Corporate
Mauritius
100%
Foreign
Mauritius
Telecommunication Infrastructure Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thai Leighton Limited
Body Corporate
Thailand
49%
Foreign
Thailand
Thiess (Mauritius) Pty Ltd
Body Corporate
Mauritius
100%
Foreign
Mauritius
Thiess Africa Investments (Pty) Ltd
Body Corporate
South Africa
100%
Foreign
South Africa
Thiess Botswana (Proprietary) Limited
Body Corporate
Botswana
100%
Foreign
Botswana
Thiess Chile SPA
Body Corporate
Chile
100%
Foreign
Chile
Thiess Contractors (Malaysia) Sdn. Bhd.
Body Corporate
Malaysia
100%
Foreign
Malaysia
Thiess Contractors Canada Ltd
Body Corporate
Canada
100%
Foreign
Canada
Thiess Group Finance Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thiess Group Finance USA Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thiess Group Holdings Pty Ltd
Body Corporate
Australia
60%
Australia
-
Thiess Group Investments Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thiess India Pvt Ltd
Body Corporate
India
100%
Foreign
India
Thiess Infrastructure Nominees Pty Ltda
Body Corporate
Australia
100%
Australia
-
Thiess Infrastructure Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thiess Infrastructure Trust
Trust
Australia
100%
Australia
-
Thiess Khishig Arvin JV LLC
Body Corporate
Mongolia
80%
Foreign
Mongolia
Thiess Midco Holdings Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thiess Minecs India Pvt Ltd
Body Corporate
India
90%
Foreign
India
Thiess Mining Canada Ltd
Body Corporate
Canada
100%
Foreign
Canada
Thiess Mining Maintenance Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thiess Mining USA Inc.
Body Corporate
United States
100%
Foreign United States
Thiess Mongolia Holdings Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
Thiess Mongolia LLC
Body Corporate
Mongolia
100%
Foreign
Mongolia
Thiess Mozambique, Limitada
Body Corporate
Mozambique
100%
Foreign Mozambique
Thiess NZ Ltd
Body Corporate
New Zealand
100%
Foreign New Zealand
Thiess Pty Ltd
Body Corporate
Australia
100%
Australia
-
Thiess South Africa (Pty) Ltd
Body Corporate
South Africa
100%
Foreign
South Africa
Thiess SQ Holdings Pty Ltd
Body Corporate
Australia
100%
Australia
-
Think Consulting Group Pty Ltd
Body Corporate
Australia
100%
Australia
-
Townsville City Project Pty Ltd
Body Corporate
Australia
100%
Australia
-
Townsville City Project Trust
Trust
Australia
100%
Australia
-
UGL (Asia) Sdn Bhd
Body Corporate
Malaysia
100%
Foreign
Malaysia
UGL (NZ) Limited
Body Corporate
New Zealand
100%
Foreign New Zealand
UGL Engineering Private Limited
Body Corporate
India
100%
Foreign
India
CIMIC Group Limited Annual Report 2024 | Financial Report
Consolidated Entity Disclosure Statement
as at 31 December 2024
99
CONSOLIDATED ENTITY DISCLOSURE STATEMENT CONTINUED
Body corporates
Tax residency
Name of entity
Entity Type
Place
incorporated or
formed
Interest
held
Australian
or foreign
Foreign
jurisdiction
UGL Engineering Pty Ltdb
Body Corporate
Australia
100% Australia
-
UGL Integra Pty Ltd
Body Corporate
Australia
100% Australia
-
UGL Operations and Maintenance (Services) Pty
Limitedb
Body Corporate
Australia
100% Australia
-
UGL Operations and Maintenance Pty Ltd
Body Corporate
Australia
100% Australia
-
UGL Pty Limited
Body Corporate
Australia
100% Australia
-
UGL Rail (North Queensland) Pty Ltd
Body Corporate
Australia
100% Australia
-
UGL Rail Pty Ltd
Body Corporate
Australia
100% Australia
-
UGL Rail Services Pty Limited
Body Corporate
Australia
100% Australia
-
UGL Regional Linx Pty Ltd
Body Corporate
Australia
100% Australia
-
UGL Resources (Contracting) Pty Ltd
Body Corporate
Australia
100% Australia
-
UGL Resources (Malaysia) Sdn Bhd
Body Corporate
Malaysia
100% Foreign
Malaysia
UGL Solutions Pty Limited
Body Corporate
Australia
100% Australia
-
UGL Unipart Rail Services Pty Ltd
Body Corporate
Australia
70% Australia
-
UGL Utilities Pty Ltd
Body Corporate
Australia
100% Australia
-
United Group Infrastructure (NZ) Limited
Body Corporate
New Zealand
100%
Foreign New Zealand
United KG (No. 1) Pty Ltd
Body Corporate
Australia
100% Australia
-
United KG (No. 2) Pty Ltd
Body Corporate
Australia
100% Australia
-
Wai Ming M&E Limited
Body Corporate
Hong Kong
100%
Foreign
Hong Kong
Wealth Mining Pty Ltd
Body Corporate
Australia
100% Australia
-
Western Port Highway Trust
Trust
Australia
100% Australia
-
Wood Buffalo Employment Ltd
Body Corporate
Canada
100%
Foreign
Canada
1The participants of this joint venture’s tax residence is Australia.
2The participants of this joint venture’s tax residence is Singapore.
aThis entity is trustee of a trust within the consolidated entity.
bThis entity is participant in a joint venture within the consolidated entity.
CIMIC Group Limited Annual Report 2024 | Financial Report
100
Statutory Statements
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of CIMIC Group Limited (the Company):
a)
The financial statements and notes, set out on pages 6-99, are in accordance with the Corporations Act 2001, including:
i)
giving a true and fair view of the Company’s and the Consolidated Entity’s financial position as at 31 December
2024 and of their performance for the financial year ended on that date; and
ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
2.
There are reasonable grounds to believe that the Company and the controlled entities identified in Note 36 to the financial
statements will be able to meet any obligations or liabilities to which they are or may become subject by virtue of the Deed of
Cross Guarantee between the Company and those controlled entities pursuant to ASIC Instrument 2016/785.
3.
In the opinion of the Directors, the attached Consolidated Entity Disclosure Statement is true and correct.
4.
The Directors draw attention to Note 1 to the financial statements, which includes a statement of compliance with
International Financial Reporting Standards.
Sydney, 13 February 2025.
Signed for and on behalf of the Board in accordance with a resolution of the Directors:
Pedro Vicente Maese
Chief Executive Officer and Director
David Robinson
Director
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation
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Deloitte Touche Tohmatsu
ABN 74 490 121 060
Quay Quarter Tower
50 Bridge Street
Sydney, NSW, 2000
Australia
Phone: +61 2 9322 7000
www.deloitte.com.au
Independent Auditor’s Report to the members of CIMIC Group Limited
Opinion
We have audited the financial report of CIMIC Group Limited (“CIMIC”, or the “Company”) and its subsidiaries
(the “Group”), which comprises the Consolidated Statement of Financial Position as at 31 December 2024, the
Consolidated Statement of Profit or Loss, the Consolidated Statement of Other Comprehensive Income, the
Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the year then
ended, and notes to the financial statements, including material accounting policy information, and other
explanatory information, the directors’ declaration and the Consolidated Entity Disclosure Statement.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Directors’ report for the year ended 31 December 2024, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
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In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible:
•
For the preparation of the financial report in accordance with the Corporations Act 2001, including giving
a true and fair view of the financial position and performance of the Group in accordance with Australian
Accounting Standards; and
•
For such internal control as the directors determine is necessary to enable the preparation of the
financial report in accordance with the Corporations Act 2001, including giving a true and fair view of the
financial position and performance of the Group, that is free from material misstatement, whether due
to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
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conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible for
the direction, supervision and performance of the Group’s audit. We remain solely responsible for our
audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
DELOITTE TOUCHE TOHMATSU
Jason Thorne
Partner
Chartered Accountants
Sydney, 13 February 2025