Wilson Bayly Holmes-ovcon Limited · JSE:WBO
Wilson Bayly Holmes-ovcon — Macquarie CEO Conference 2016
12 slides from Wilson Bayly Holmes-ovcon's conference presentation, December 2016
Slide 1: WBHO December 2016 Macquarie Conference
WBHO DECEMBER 2016 MACQUARIE CONFERENCE December 2016
Slide 2: Material Issues
MATERIAL ISSUES Macquarie CEO Conference 2 MARKET DYNAMICS • Low-growth environment persists • Political instability locally • Heavier weighting toward lower margin projects still prevalent SKILL SHORTAGES AND CAPACITY CONSTRAINTS • Alignment of workforce with volume of work on hand • Minimal skills
Slide 3: Industry Matters
Macquarie CEO INDUSTRY MATTERS Conference 3 SETTLEMENT AGREEMENT • Voluntary agreement between 7 listed construction companies and South African Government • Aims to create meaningful transformation within the industry, increase investment, create jobs and promote entrepreneurial opportunities and i
Slide 4: Consolidated Order Book
CONSOLIDATED Macquarie CEO Conference 4 ORDER BOOK GEOGRAPHIC June Sept Balance to 2018 and (R’m) 2016 2016 June 2017 beyond South Africa 10 532 9 369 5 983 3 386 25% Rest of Africa 1 192 1 243 809 434 Sept 3% 2016 Australia 30 976 27 190 15 022 12 168 72% Total 42 700 37 802 21 814 15 988 South Afr
Slide 5: Order Book: Building and Civil Engineering
Macquarie CEO Conference 5 ORDER BOOK 1% Commercial 6% 3% BUILDING AND Retail % Sept June CIVIL ENGINEERING growth 2016 2016 16% (R’m) Sept 49% Entertainment 2016 South Africa (23) 6 152 7 977 25% Healthcare Africa (18) 579 706 and residential Total (22) 6 731 8 683 Energy infrastructrure New projec
Slide 6: Market Update
MARKET UPDATE Macquarie CEO Conference 6 SOUTH AFRICA BUILDING: • Healthy volumes of work on hand overall • Good order book replenishment • Retail continues to taper • Sufficient opportunities in the market - residential and commercial • Western Cape and Eastern Cape markets have softened CIVIL ENGI
Slide 7: Order Book: Roads and Earthworks
Macquarie CEO Conference 7 ORDER BOOK 1% Roadworks 11% ROADS AND % Sept June EARTHWORKS Mining growth 2016 2016 infrastructure (R’m) 18% Sept 50% South Africa 26 3 217 2 554 2016 Pipelines Africa 36 664 487 20% Total 28 3 881 3 041 Rural housing New projects since 1 July Value (R’m) Energy infrastru
Slide 8: Market Update
MARKET UPDATE Macquarie CEO Conference 8 SOUTH AFRICA ROADS AND EARTHWORKS: • 26% improvement in order book from June to Sept • Further R1,2 billion secured post Sept • A number of private sector projects awarded – potential for further work • Additional road work projects anticipated in Q3 and Q4 •
Slide 9: Order Book: Australia
Macquarie CEO Conference 9 ORDER BOOK AUSTRALIA % Sept June Residential 7% (R’m) growth 2016 2016 6% 9% Healthcare and Building (14) 25 164 29 302 leisure Sept Civil 51% 21 2 026 1 674 2016 Commercial engineering 27% Total (12) 27 190 30 976 Retail New projects since 1 July Value (R’m) Civil works a
Slide 10: Market Update: Australia
MARKET UPDATE Macquarie CEO Conference 10 AUSTRALIA • Exchange rate movement from June (11.04) to September (10.63) - impact on order book at Sept R1 billion BUILDING: • Building order book remains at high levels • Growth in other states reducing reliance on Victoria • Focus on project execution for
Slide 11: Consolidated Order Book by Segment
CONSOLIDATED Macquarie CEO 11 Conference ORDER BOOK Balance 2018 10% June Sept SEGMENT (R’m) to June and 2016 2016 2017 beyond Roads and 3 041 3 881 2 547 1 334 Sept 18% earthworks 2016 Building and civil 8 683 6 731 4 245 2 486 engineering Australia 30 976 27 190 15 022 12 168 72% Total 42 700 37 8
Slide 12: Disclaimer
DISCLAIMER 12 Certain statements contained within this presentation may be classified as forward-looking statements as defined by the United States Securities legislation. Words, including but not limited to, “believe”, “anticipate”, “expect”, “seek”, “intend”, “estimate”, “project”, “plan”, or “pre
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