Wilson Bayly Holmes-ovcon Limited · JSE:WBO
Wilson Bayly Holmes-ovcon — H1 FY2023 Earnings Presentation
40 slides from Wilson Bayly Holmes-ovcon's earnings presentation, February 2023
Slide 1: Unaudited Interim Results for the Six Months Ended 31 December 2022
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Slide 2: Contents
CONTENTS 1 OPERATIONAL REVIEW 2 FINANCIAL REVIEW DISCLAIMER: THIS PRESENTATION IS BEING RECORDED. 3 ORDER BOOK, PIPELINE AND YOUR CONTINUED ATTENDANCE AT THE PRESENTATION CONFIRMS YOUR CONSENT OUTLOOK 2
Slide 3: Operational Review
OPERATIONAL REVIEW 1 ESG PERFORMANCE 2 BUILDING AND CIVIL ENGINEERING 3 ROADS AND EARTHWORKS 4 UNITED KINGDOM 3
Slide 4: ESG Performance
ESG PERFORMANCE H1:FY2023 PERFORMANCE LOST TIME INJURY FREQUENCY RATIO (LTIFR) • Safety, environmental and quality ISO certifications 1.2 maintained across all regions • Strong safety record sustained with an LTIFR of 0.36 (FY2022: 0.30) 0.9 • One fatality in South Africa (FY2022: 1) 0.69 • No repor
Slide 5: Building and Civil Engineering
BUILDING AND 1 H1:FY2023 PERFORMANCE 2 GEOGRAPHIC ANALYSIS CIVIL ENGINEERING 3 ORDER BOOK 5
Slide 6: Building and Civil Engineering H1:FY2023 Performance
BUILDING AND CIVIL ENGINEERING H1:FY2023 PERFORMANCE • Record performance for both revenue and profit 400 • Overall revenue increased by 31% following strong new 4 915 work procurement in H2:FY2022 5 000 • Operating profit up 51% at a margin of 5% 4 047 3 853 3 753 3 745 BUILDING 300 4 000 • Revenue
Slide 7: Building and Civil Engineering Geographic Performance
BUILDING AND CIVIL ENGINEERING GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 9 000 4 773 REVENUE (Rm) 6 000 3 577 3 000 168 142 0 H1 2023 H1 2022 SOUTH AFRICA REST OF AFRICA 400 OPERATING PROFIT (Rm) 300 246 200 148 100 16 2 0 H1 2023 H1 2022 SOUTH AFRICA REST OF AFRICA 7
Slide 8: Building and Civil Engineering Order Book
BUILDING AND CIVIL ENGINEERING ORDER BOOK UP 2% 31 December 30 June % • Order book sustained at elevated levels following substantial growth 2022 2022 change in H2:FY2022 South Africa 11 306 11 018 3 • Several projects in excess of R1 billion provide healthy baseload of work Rest of Africa 437 522 (
Slide 9: Roads and Earthworks
ROADS AND 1 H1:FY2023 PERFORMANCE 2 GEOGRAPHIC ANALYSIS EARTHWORKS 3 ORDER BOOK 9
Slide 10: Roads and Earthworks H1:FY2023 Performance
ROADS AND EARTHWORKS H1:FY2023 PERFORMANCE SOUTH AFRICA 400 • Revenue increased by 0.3% while operating profit increased by 5% 3 000 2 661 2 645 2 613 • Strong uptick in roadwork activity with six sizeable awards 2 571 300 during H1:FY2023 and two multi-billion Sanral projects 2 142 awarded after th
Slide 11: Roads and Earthworks Geographic Performance
ROADS AND EARTHWORKS GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 4 000 3 000 REVENUE (Rm) 1 760 1 755 2 000 901 816 1 000 0 H1 2023 H1 2022 SOUTH AFRICA REST OF AFRICA 200 OPERATING PROFIT (Rm) 150 97 88 100 84 79 50 0 H1 2023 H1 2022 SOUTH AFRICA REST OF AFRICA 11
Slide 12: Roads and Earthworks Order Book
ROADS AND EARTHWORKS ORDER BOOK UP 51% 31 December 30 June % • Order book levels at highest levels in 12 years 2022 2022 change - South African contribution up 32% with positive outlook South Africa 6 311 4 768 32 - Significant new awards in Liberia, Ghana and Mozambique more than Rest of Africa 3 3
Slide 13: United Kingdom
UNITED KINGDOM 1 H1:FY2023 PERFORMANCE 2 GEOGRAPHIC ANALYSIS 3 ORDER BOOK 13
Slide 14: United Kingdom Performance
UNITED KINGDOM FY2022 PERFORMANCE BYRNE GROUP 4 000 300 • Revenue increased by 41% • Lower activity within Byrne Bros. offset 3 129 by growth within Ellmers Construction and addition of 3 000 O’Keefe projects 2 380 200 2 232 2 222 • Tough trading conditions persist amid turbulent global 1 988 market
Slide 15: United Kingdom Geographic Performance
UNITED KINGDOM GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 4 000 3 000 REVENUE (Rm) 1 888 2 000 1 340 882 1 000 344 0 H1 2023 H1 2022 BYRNE GROUP RUSSELL-WBHO 200 OPERATING PROFIT (Rm) 150 100 68 50 50 27 0 (18) -50 H1 2023 H1 2022 BYRNE GROUP RUSSELL-WBHO 15
Slide 16: United Kingdom Order Book
UNITED KINGDOM ORDER BOOK UP 19% 31 December 30 June % • Procurement activity on an upward trajectory 2022 2022 change • Growth centred within the Byrne Group with additional £20m award after Byrne Group 4 201 3 541 19 the reporting period Russell – WBHO 879 729 21 • Russell-WBHO is preferred bidder
Slide 17: Financial Review
FINANCIAL REVIEW 1 KEY FINANCIAL INDICATORS 2 FINANCIAL PERFORMANCE 3 FINANCIAL POSITION 17
Slide 18: Key Financial Indicators
KEY FINANCIAL INDICATORS Re-presented December 2022 December 2021 Target / growth Revenue from continuing operations growth/(decline) (%) 14.9 (10.5) >10 Segment operating margin from continuing operations (%) 4.7 4.9 4.0 - 6.5 revised Earnings per share from continuing operations (cents) 829 596 39
Slide 19: Key Financial Indicators: H1 Earnings Per Share
KEY FINANCIAL INDICATORS H1: EARNINGS PER SHARE 1 000 • Highest first half earnings achieved since 2010 900 841 • 2017 to 2021 affected by volatility in Australia 829 • Decision to exit Australia was difficult but ultimately correct 800 737 721 684 • Consistent performance in 2023 Australia quaranti
Slide 20: Financial Performance
FINANCIAL PERFORMANCE Re-presented Rm December 2022 December 2021 June 2022 Revenue 10 330 8 989 17 240 Operating profit before non-trading items 482 438 859 Share-based payments expense (20) (18) (45) Impairments of goodwill - - - Operating profit 462 420 814 Share of profits from interests in asso
Slide 21: Financial Performance: Continuing Operations
FINANCIAL PERFORMANCE CONTINUING OPERATIONS • FY2021 performance 12 000 1 000 - H1:FY2021 revenue from African operations bolstered by deferred activity from 10 330 10 046 900 H2: FY2020 due to Covid-19 9 418 10 000 8 989 800 - 15% decline in UK activity as procurement environment weakens due to Cov
Slide 22: Continuing Operations – Contribution by Geography
CONTINUING OPERATIONS – CONTRIBUTION BY GEOGRAPHY Re-presented Dec 2022 Dec 2021 December December REVENUE 2022 2021 % change 22% 25% South Africa 7 020 5 758 22 Rest of Africa 1 078 1 009 7 10% 11% United Kingdom 2 232 2 222 - 68% 64% Total 10 330 8 989 15 Re-presented Dec 2022 Dec 2021 SEGMENT OPE
Slide 23: Discontinued Operations: Current Position
DISCONTINUED OPERATIONS CURRENT POSITION • All obligations under CBA facility have been fulfilled - Called guarantees have been settled - Unreturned guarantees to the value of A$10 million have been cash collateralized • All conditions precedent to the Deed of Company Arrangement (DOCA) fulfilled on
Slide 24: Discontinued Operations: Cost to Exit Australia
DISCONTINUED OPERATIONS AUDm Rm Costs to settle guarantee obligations Called guarantees and costs to recover guarantees 96 1 053 WRU cost to final completion and defects 30 333 DOCA contribution 9 99 Provision raised at 30 June 2022 135 1 485 Additional WRU cost 2 23 Unpaid usage fees on CBA facilit
Slide 25: Discontinued Operations
DISCONTINUED OPERATIONS Re-presented Rm December 2022 December 2021 June 2022 Loss from discontinued operations Revenue - 6 973 7 827 Operating costs (65) (7 606) (8 418) Administrative costs and other income (35) (853) (979) Share of profits from interests in associates and joint ventures - 12 12 N
Slide 26: Financial Position: Property, Plant and Equipment
FINANCIAL POSITION December Property, plant and equipment (Rm) 2022 June 2022 Property, plant and equipment 1 854 1 563 • The Group employs a plant replacement policy aimed at ensuring an optimal size and age of its fleet Right of use assets (IFRS 16) 150 230 • Increased Capex in FY2023 to support g
Slide 27: Financial Position: Associates and Joint Ventures
FINANCIAL POSITION Share of profits Interest in associates Country Effective Carrying December December and joint ventures (Rm) Industry of operation % amount 2022 2021 Concession investments: Gigajoule International Group Gas and power supply Mozambique 26.6 303.8 89.6 32.8 Dipalopalo Concessions S
Slide 28: Financial Position: Associates and Joint Ventures
FINANCIAL POSITION Share of profits Interests in associates Country Effective Carrying December December and joint ventures (Rm) Industry of operation % amount 2022 2021 Property developments: Catchu Trading Property development South Africa 50 42.7 - - The Rubik Property development South Africa 20
Slide 29: Financial Position: Tax
FINANCIAL POSITION December June Tax (Rm) 2022 2022 Net deferred tax asset 548 508 Deferred tax asset consists of: Net current tax asset 112 52 • Tax losses of R66m (June 2022: R43m) • Timing differences of R482m (June 2022: United December December June R465m) Tax expense (Rm) Africa Kingdom 2022 2
Slide 30: Financial Position: Long-term Liabilities
FINANCIAL POSITION Long-term liabilities (Rm) December 2022 June 2022 Property development funding 103 106 • Property development funding raised in respect of student accommodation building in Pretoria Asset-based finance 212 100 - Sale agreement subject to Competition SCMB loan 350 - Commission app
Slide 31: Financial Position: Cash and Cash Equivalents
FINANCIAL POSITION Cash and cash equivalents (Rm) December 2022 June 2022 South Africa 1 772 1 111 • Strong cash generation from South African operations supported further funding commitments Africa 795 1 004 into Australia United Kingdom 697 1 224 • Decrease in cash balances in the rest of Africa T
Slide 32: Financial Position: Cash Flow Movement
FINANCIAL POSITION 5 000 206 65 572 4 000 238 3 264 3 339 85 264 93 410 3 000 2 000 1 000 - Cash & cash Foreign currency Operating profit Working capital Net finance and Taxation Cash flows from Cash flows from Cash flows from Cash & cash equivalents translation effect adjusted for non- changes inve
Slide 33: Order Book, Pipeline and Outlook
ORDER BOOK, PIPELINE AND 1 CONSOLIDATED ORDER BOOK 2 PROJECT PIPELINE OUTLOOK 3 OUTLOOK 33
Slide 34: Consolidated Order Book
CONSOLIDATED ORDER BOOK GROUP ORDER BOOK UP 43% 31 Dec 30 June 31 Dec To June Beyond • Group order book at record levels 2021 2022 2022 2023 June 2023 • Growth across all divisions and key regions South Africa 8 963 15 786 17 616 7 081 10 535 • Additional R3.6 billion in WBHO’s share of new awards w
Slide 35: Project Pipeline: Building and Civil Engineering
PROJECT PIPELINE Building and civil engineering (Rm) South Africa Rest of Africa Total Commercial and mixed-use developments 10 973 1 657 12 630 12% Residential 7 749 - 7 749 Industrial buildings and warehousing 4 301 600 4 901 Data centres 3 100 1 020 4 120 88% Hotels, healthcare and education 8 24
Slide 36: Project Pipeline: Roads and Earthworks
PROJECT PIPELINE Roads and earthworks (Rm) South Africa Rest of Africa Total Roadwork 28 860 2 650 31 510 Mining infrastructure 7 275 5 735 13 010 25% Energy infrastructure 1 150 7 750 8 900 Water infrastructure 16 125 - 16 125 75% Other infrastructure 200 1 975 2 175 Total 53 610 18 110 71 720 SOUT
Slide 37: Project Pipeline: United Kingdom and Summary
PROJECT PIPELINE United Kingdom Rm Byrne Group 36 464 Russell-WBHO 9 578 Total 46 042 Summary Rm Building and civil engineering 52 313 Roads and earthworks 71 720 United Kingdom 46 042 Total 169 075 37
Slide 38: Outlook
OUTLOOK • Australian chapter of the Group’s history fully finalised with no further exposure • Earnings at best levels in 12 years • Order books for African operations at record levels within both divisions • Order book and foward-looking pipeline have set foundation for growth trajectory • Re-stren
Slide 39: 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”, “indicate” or “predict” are used to identify such statements. For
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