Wilson Bayly Holmes-ovcon Limited · JSE:WBO
Wilson Bayly Holmes-ovcon — FY2021 Earnings Presentation
47 slides from Wilson Bayly Holmes-ovcon's earnings presentation, Jun 30, 2021
Slide 1: Audited Results for the Year Ended 30 June 2021
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021
Slide 2: Contents
CONTENTS SUBJECT • Welcome • Overview and highlights • Operational review › Building and civil engineering › Roads and earthworks › Australia › United Kingdom • Financial review • Order book and project pipeline • Outlook WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021 2
Slide 3: Overview and Highlights
OVERVIEW AND HIGHLIGHTS WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021 3
Slide 4: Overview
OVERVIEW OVERVIEW AND HIGHLIGHTS GROUP • An improved performance was delivered in what remains a difficult environment in all regions • A reduced impact from Covid-19 in African markets resulted in more normalized activity levels and operating margins • Hard-line approach toward Covid-19 by the Aust
Slide 5: Group Results FY2021
GROUP RESULTS FY2021 OVERVIEW AND HIGHLIGHTS 50 000 2 500 REVENUE (Rm) OPERATING PROFIT (Rm) 43 080 2 000 40 614 40 000 38 331 35 028 1 500 31 907 1 000 30 000 986 1 045 3,1% 3,0% 500 561 518 1,4% (541) 1,3% - 20 000 -1,2% ( 500) 10 000 (1 000) 2017 2018 2019 2020 2021 Revenue Segment operating prof
Slide 6: Contribution by Geography
CONTRIBUTION BY GEOGRAPHY OVERVIEW AND HIGHLIGHTS REVENUE (Rm) % Growth 2021 2020 REVENUE (%) South Africa 14% 10 900 9 544 14% 29% Rest of Africa 26% 3 055 2 428 Australia -24% 18 868 24 656 2021 United Kingdom -15% 5 509 6 452 8% 49% TOTAL -11% 38 331 43 080 15% OPERATING PROFIT (Rm) % Margin 2021
Slide 7: Safety Performance
SAFETY PERFORMANCE OVERVIEW AND HIGHLIGHTS LTIFR (No. of lost time injuries per million man hours) 2.0 1.5 1.0 0.91 0.80 0.69 0.59 0.60 0.5 0.0 2017 2018 2019 2020 2021 • ISO 45001 certification maintained across all regions • There have been 632 Covid-19 employee-related • Strong safety record main
Slide 8: Transformation and Empowerment
TRANSFORMATION AND EMPOWERMENT OVERVIEW AND HIGHLIGHTS • Level 1 contributor since 2017 • WBHO regularly features in the most empowered companies on the JSE according to external surveys • WBHO SA spends 95% of its total measured procurement on B-BBEE compliant companies • R59 million invested in tr
Slide 9: Building and Civil Engineering
BUILDING AND CIVIL ENGINEERING 9 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021
Slide 10: The Year in Perspective
THE YEAR IN PERSPECTIVE BUILDING AND CIVIL ENGINEERING BUILDING • Improved performance across all regions in South Africa • Strong second half performance as first six months supported by deferred activity due to April / May lockdown restrictions in FY2020 • Tender markets remain highly competitive
Slide 11: The Year in Perspective
THE YEAR IN PERSPECTIVE BUILDING AND CIVIL ENGINEERING CIVIL ENGINEERING • The Civil Engineering division achieved a solid performance as weaker activity locally and in Zambia was offset by increased activity in Mozambique • Frustratingly, predicted strong growth was not realized as Mozambican proje
Slide 12: Building and Civil Engineering: FY2021 Result
BUILDING AND CIVIL ENGINEERING: FY2021 RESULT BUILDING AND CIVIL ENGINEERING 10 000 1 000 REVENUE (Rm) OPERATING PROFIT (Rm) 8 136 7 900 8 000 7 302 7 338 800 6 495 6 000 600 4 000 400 385 142 4.7% 332 304 320 2 000 4.5% 2.2% 200 4.1% 4.0% - - 2017 2018 2019 2020 2021 Revenue Operating profit • Tota
Slide 13: Geographic Footprint
GEOGRAPHIC FOOTPRINT BUILDING AND CIVIL ENGINEERING REVENUE (Rm) 8 000 7 368 6 029 6 000 4 000 2 000 532 466 - GHANA 2021 2020 South Africa Rest of Africa IVORY COAST UGANDA OPERATING PROFIT (Rm) RWANDA 400 300 281 ACTIVE REGIONS ZAMBIA TARGETED REGIONS MOZAMBIQUE 200 ZIMBABWE 100 100 38 42 BOTSWANA
Slide 14: Order Book
ORDER BOOK BUILDING AND CIVIL ENGINEERING ORDER BOOK UP 46% At June At June 2021 2020 % growth • R5,7 billion secured in second half of FY2021 • Building order books replenished South Africa 8 359 5 155 62 › Strong baseload of secured work across all Rest of Africa 198 703 (76) South African regions
Slide 15: Roads and Earthworks
ROADS AND EARTHWORKS 15 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021
Slide 16: The Year in Perspective
THE YEAR IN PERSPECTIVE ROADS AND EARTHWORKS SOUTH AFRICA • Activity levels comparable with FY2020 • Roadwork, mining and energy infrastructure sectors most significant contributors › Active road projects in all major provinces – R1 billion in new work secured during the period › Increased commodity
Slide 17: Roads and Earthworks: FY2021 Result
ROADS AND EARTHWORKS: FY2021 RESULT ROADS AND EARTHWORKS 8 000 1 000 REVENUE (Rm) OPERATING PROFIT (Rm) 800 6 000 5 282 5 295 4 980 5 258 4 590 600 4 000 400 300 371 343 2 000 7.4% 7.0% 6.5% 300 200 237 5.7% 4.8% - - 2017 2018 2019 2020 2021 Revenue Operating profit • Increase in revenue of 6% (2020
Slide 18: Geographic Footprint
GEOGRAPHIC FOOTPRINT ROADS AND EARTHWORKS REVENUE (Rm) 4 000 3 053 2 838 3 000 2 420 1 927 2 000 1 000 BURKINA ERITREA - SIERRA LEONE FASO 2021 2020 GHANA ETHIOPIA South Africa Rest of Africa LIBERIA IVORY COAST UGANDA KENYA OPERATING PROFIT (Rm) RWANDA TANZANIA 200 163 MALAWI 137 ACTIVE REGIONS 130
Slide 19: Order Book
ORDER BOOK ROADS AND EARTHWORKS ORDER BOOK UP 5% At June At June • New roadwork projects and increased mining 2021 2020 % growth activity support local order book South Africa 3 493 3 331 5 › Pipeline from these sectors is healthy • Order book in the rest of Africa impacted by Rest of Africa 819 1 1
Slide 20: Australia
AUSTRALIA WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021 20
Slide 21: The Year in Perspective
THE YEAR IN PERSPECTIVE AUSTRALIA • Australian performance hindered by further losses on WRU and 443 Queen Street • Revised business strategy firmly in place within both the building and infrastructure businesses • Difficulty in procuring new work due to impact of Covid-19 on business confidence – i
Slide 22: Australia: FY2021 Result
AUSTRALIA: FY2021 RESULT AUSTRALIA 24 657 25 000 1 500 REVENUE (Rm) OPERATING PROFIT (Rm) 21 941 21 713 18 600 18 868 1 000 20 000 500 15 000 313 278 - 1.7% 1.3% 10 000 (335) ( 500) (412) -1,5% (1 199) -2.2% 5 000 -4.9% (1 000) - (1 500) 2017 2018 2019 2020 2021 Revenue Operating profit • 30% decrea
Slide 23: Geographic Footprint
GEOGRAPHIC FOOTPRINT AUSTRALIA REVENUE (Rm) 20 000 17 660 15 703 15 000 10 000 6 997 5 000 3 164 - 2021 2020 QUEENSLAND Building Infrastructure OPERATING PROFIT (Rm) NEW WESTERN AUSTRALIA SOUTH - WALES (3) (133) VICTORIA (400) (409) (800) (1 200) (1 066) 2021 2020 Building Infrastructure WBHO AUDITE
Slide 24: Order Book
ORDER BOOK AUSTRALIA ORDER BOOK DOWN 37% • Impact of bidding strategy and COVID-19 on future At June At June available work reflected in lower building order book 2021 2020 % decline • Activity will remain concentrated in key VIC and NSW Building 10 686 17 320 (38) markets Infrastructure 1 632 2 253
Slide 25: United Kingdom
UNITED KINGDOM WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021 25
Slide 26: The Year in Perspective
THE YEAR IN PERSPECTIVE UNITED KINGDOM BYRNE GROUP • The Group produced a solid performance in a challenging environment › Increased activity within Byrne Bros following award of key new project in H1:2021 › Minimal new work opportunities within the private sector impacted activity within Ellmers Co
Slide 27: United Kingdom: FY2021 Result
UNITED KINGDOM: FY2021 RESULT UNITED KINGDOM 8 000 800 REVENUE (Rm) OPERATING PROFIT (Rm) 6 452 6 000 5 684 5 509 600 4 000 400 302 2 000 4.7% 262 200 228 4.8% 4.0% - - 2019 2020 2021 Revenue Operating profit • Combined £ revenue declined by 19% (2020: 6% growth) • Decrease in £ operating profit of
Slide 28: Geographic Footprint
GEOGRAPHIC FOOTPRINT UNITED KINGDOM REVENUE (Rm) 4 000 3 672 3 500 2 958 3 000 2 780 2 550 2 500 2 000 1 500 1 000 500 - 2021 2020 Byrne Group Russell-WBHO OPERATING PROFIT (Rm) MANCHESTER 250 LIVERPOOL 210 RUSSELL-WBHO 200 160 150 BYRNE GROUP 110 100 100 LONDON 50 CHATHAM - 2021 -8 2020 -8 ( 50) By
Slide 29: Order Book
ORDER BOOK UNITED KINGDOM ORDER BOOK DOWN 50% At June At June • Decline in order book reflects low levels of new 2021 2020 % growth work procurement in FY2021 due to Covid-19 Byrne Group 1 659 2 987 (45) • Resurgence in private sector construction opportunities in London over the final quarter of Ru
Slide 30: Financial Review
FINANCIAL REVIEW WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021 30
Slide 31: Key Financial Indicators
KEY FINANCIAL INDICATORS FINANCIAL REVIEW TARGET / GROWTH 2021 2020 Revenue growth % >10 (11.0%) 6.1% Segment operating margin % 3 – 4.5 1.4% -1.3% Segment operating margin excluding Australian % 3 – 4.5% 4.8% 3.6% results Return on capital employed % >20 11.8% -4.4% Cash and cash equivalents Rm -25
Slide 32: Key Financial Numbers
KEY FINANCIAL NUMBERS FINANCIAL REVIEW (Rm) % change 2021 2020 Revenue (10.9) 38 331 43 080 Operating profit before non-trading items 195.7 517 (541) Share-based payments expense (40) (44) Impairment of goodwill (21) – Deemed loss on disposal of equity-accounted investee (8) – Share of profits and l
Slide 33: Non Current Assets
NON CURRENT ASSETS FINANCIAL REVIEW PROPERTY, PLANT AND EQUIPMENT (Rm) 2021 2020 Property, plant and equipment 1 764 2 054 Right-of-use assets (IFRS 16) 320 407 TOTAL 2 084 2 461 Depreciation 305 326 APPROVED ACTUAL ACTUAL CAPITAL EXPENDITURE 2022 2021 2020 Replacement 240 73 180 Expansion 46 44 73
Slide 34: Financial Position
FINANCIAL POSITION FINANCIAL REVIEW EQUITY-ACCOUNTED INVESTMENTS CARRYING SHARE OF COUNTRY OF EFFECTIVE AMOUNT OF PROFITS/(LOSSES) ENTITY INDUSTRY OPERATION % INVESTMENT 2021 2020 CONCESSION INVESTMENTS: Gigajoule International Gas supply Mozambique 26.6% 202.1 31.6 23.2 Gigajoule Power Power Mozamb
Slide 35: Financial Position
FINANCIAL POSITION FINANCIAL REVIEW EQUITY-ACCOUNTED INVESTMENTS CARRYING SHARE OF COUNTRY OF EFFECTIVE AMOUNT OF PROFITS/(LOSSES) ENTITY INDUSTRY OPERATION % INVESTMENT 2021 2020 PROPERTY DEVELOPMENTS: Catchu Trading* Property development South Africa 50% 54.9 – 22.6 Caulfield Property development
Slide 36: Financial Position: Tax
FINANCIAL POSITION FINANCIAL REVIEW TAX (Rm) 2021 2020 Net deferred tax asset 768 706 Net current tax asset 86 137 Deferred tax asset consists of: Current tax asset consists of: • Tax losses of R340m (2020: R215m) • Foreign tax credits of R24m (2020: R38m) • Timing differences of R433m (2020: R491m)
Slide 37: Financial Position: Long Term Liabilities
FINANCIAL POSITION FINANCIAL REVIEW LONG TERM LIABILITIES (Rm) 2021 2020 Property development funding 112 112 Asset-based finance 99 162 Lease liabilities (IFRS 16) 345 431 VRP 117 128 Other 2 2 Less: Current portion (150) (177) TOTAL 525 658 • Property development funding raised in respect of stude
Slide 38: Financial Position: Cash and Cash Equivalents
FINANCIAL POSITION FINANCIAL REVIEW CASH AND CASH EQUIVALENTS (Rm) 2021 2020 South Africa 1 544 1 877 Africa 987 821 United Kingdom 1 354 1 320 Australia 1 796 3 581 TOTAL 5 681 7 599 • South African cash balances have held up well considering funding levels into the Australian operations • Decrease
Slide 39: Cash Flow Movement
CASH FLOW MOVEMENT FINANCIAL REVIEW 9 000 8 000 7 599 775 (1 934) (530) 7 000 198 (281) 218 (364) 6 000 5 681 5 000 4 000 3 000 2 000 1 000 - Cash & cash Foreign currency Operating profit Working capital Net Taxation Net Net Cash & cash equivalents translation effect adjusted for non- changes financ
Slide 40: Order Book and Project Pipeline
ORDER BOOK AND PROJECT PIPELINE WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021 40
Slide 41: Consolidated Order Book
CONSOLIDATED ORDER BOOK ORDER BOOK AT JUNE AT JUNE ORDER BOOK BY GEOGRPAHY (%) GEOGRAPHY (Rm) 2020 2021 2022 2023 10% South Africa 8 485 11 853 8 210 3 643 42% Rest of Africa 1 896 1 017 1 017 - 2021 44% Australia 19 573 12 318 10 735 1 583 United Kingdom 5 407 2 699 2 628 71 4% TOTAL 35 361 27 887
Slide 42: Project Pipeline
PROJECT PIPELINE PROJECT PIPELINE SOUTH AFRICA Rm SOUTH AFRICA Building 31 184 Building Public 7 726 55% 2021 38% Civil engineering Roads and earthworks Private 23 458 Civil engineering 6 479 7% Public 2 810 Private 3 669 SOUTH AFRICA Roads and earthworks 37 000 48% Public 2021 Private Public 29 750
Slide 43: Project Pipeline
PROJECT PIPELINE PROJECT PIPELINE AUSTRALIA Rm 16% Building 52 869 Infrastructure 10 350 2021 AUSTRALIA TOTAL 63 219 Building 84% Infrastructure UNITED KINGDOM Rm 20% Byrne Group 32 886 Russell-WBHO 8 182 2021 UNITED KINGDOM TOTAL 41 068 Byrne Group 80% Russell-WBHO WBHO AUDITED RESULTS FOR THE YEAR
Slide 44: Project Pipeline
PROJECT PIPELINE PROJECT PIPELINE SUMMARY Rm 21% 19% Building and civil engineering 45 678 SUMMARY Roads and earthworks 52 537 Building and civils 2021 Roads and earthworks Australia 63 219 Australia 27% United Kingdom 33% United Kingdom 41 068 TOTAL 202 502 • The project pipeline of the group inclu
Slide 45: Outlook
OUTLOOK OUTLOOK • High levels of uncertainty across global markets makes it difficult to predict what the ongoing impact of Covid-19 on the Group will be over the medium-term • Increased levels of vaccination are seeing the phasing out of lock down restrictions, lifting of travel bans and growing bu
Slide 46: Disclaimer
DISCLAIMER Certain statements contained within this presentation may be classified as forward-looking statements. Words, including but not limited to, “believe”, “anticipate”, “expect”, “seek”, “intend”, “estimate”, “project”, “plan”, or “predict” are used to identify such statements. Forward-lookin
Slide 47: Thank You
THANK YOU
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