Wilson Bayly Holmes-ovcon Limited · JSE:WBO
Wilson Bayly Holmes-ovcon — FY2023 Earnings Presentation
38 slides from Wilson Bayly Holmes-ovcon's earnings presentation, September 2023
Slide 1: Audited Results for the Year Ended June 2023
AUDITED RESULTS FOR THE YEAR ENDED JUNE 2023
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 FY2023 PERFORMANCE LOST TIME INJURY FREQUENCY RATIO (LTIFR) • ISO certifications maintained across all regions 1.0 • New all time safety record achieved with an LTIFR of 0.27 (FY2022: 0.30) 0.8 • One fatality in South Africa (FY2022: 1) 0.69 • No reportable environmental incidents du
Slide 5: Building and Civil Engineering
BUILDING AND 1 FY2023 PERFORMANCE 2 GEOGRAPHIC ANALYSIS CIVIL ENGINEERING 3 ORDER BOOK 5
Slide 6: Building and Civil Engineering FY2023 Performance
BUILDING AND CIVIL ENGINEERING FY2023 PERFORMANCE • Overall revenue increased by 46% 10 981 12 000 800 • Operating profit up 48% • Driven by strong growth in building and renewable energy sectors 9 000 600 7 900 7 498 7 338 BUILDING 504 6 495 • Revenue increased by 28% and margins maintained 6 000 3
Slide 7: Building and Civil Engineering Geographic Performance
BUILDING AND CIVIL ENGINEERING GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 10 744 12 000 7 181 REVENUE (Rm) 8 000 4 000 317 237 0 2023 2022 SOUTH AFRICA REST OF AFRICA 600 509 OPERATING PROFIT (Rm) 320 400 200 ( 5) 22 0 2023 2022 -200 SOUTH AFRICA REST OF AFRICA 7
Slide 8: Building and Civil Engineering Order Book
BUILDING AND CIVIL ENGINEERING ORDER BOOK UP 12% 30 June 30 June % • Growth supported by civil engineering - both renewable energy projects and 2023 2022 change traditional civil engineering markets South Africa 12 509 11 018 14 • Building order book levels sustained at elevated levels Rest of Afric
Slide 9: Roads and Earthworks
ROADS AND 1 FY2023 PERFORMANCE 2 GEOGRAPHIC ANALYSIS EARTHWORKS 3 ORDER BOOK 9
Slide 10: Roads and Earthworks FY2023 Performance
ROADS AND EARTHWORKS FY2023 PERFORMANCE SOUTH AFRICA 8 000 800 • Revenue and operating profit increased by 46% and 40% 6 857 respectively • Substantial uptick in roadwork activity 6 000 600 5 295 5 258 4 980 • Moderate growth from mining infrastructure projects 4 713 450 • Increased contribution fro
Slide 11: Roads and Earthworks Geographic Performance
ROADS AND EARTHWORKS GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 6 000 4 100 3 086 REVENUE (Rm) 4 000 2 757 1 626 2 000 0 2023 2022 SOUTH AFRICA REST OF AFRICA 600 OPERATING PROFIT (Rm) 400 227 223 168 154 200 0 2023 2022 SOUTH AFRICA REST OF AFRICA 11
Slide 12: Roads and Earthworks Order Book
ROADS AND EARTHWORKS ORDER BOOK UP 131% 30 June 30 June % • South African contribution up significantly following award of mega road 2023 2022 Change projects from Sanral. South Africa 12 228 4 768 181 • Growth from the rest of Africa supported by awards in Liberia and Rest of Africa 2 561 1 632 57
Slide 13: United Kingdom
UNITED KINGDOM 1 FY2023 PERFORMANCE 2 GEOGRAPHIC ANALYSIS 3 ORDER BOOK 13
Slide 14: United Kingdom FY2023 Performance
UNITED KINGDOM FY2023 PERFORMANCE BYRNE GROUP 8 000 800 • Revenue increased by 26% in Pound terms with operating profit in line with FY2022 6 452 • Good growth within Ellmers Construction and solid 5 684 5 509 6 000 600 contribution from O’Keefe Construction 4 988 • Lower activity within Byrne Bros.
Slide 15: United Kingdom Geographic Performance
UNITED KINGDOM GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 6 000 4 081 3 091 REVENUE (Rm) 4 000 1 119 2 000 907 0 2023 2022 BYRNE GROUP WBHO RUSSELLS 200 134 OPERATING PROFIT (Rm) 128 150 100 40 50 (10) (11) (6) 0 2023 2022 -50 BYRNE GROUP WBHO RUSSELLS WBHO UK 15
Slide 16: United Kingdom Order Book
UNITED KINGDOM ORDER BOOK UP 13% 30 June 30 June % • Growth remains centred within the Byrne Group 2023 2022 change • Russell-WBHO has taken site on four projects to the value of £159m not Byrne Group 3 998 3 541 13 included in the order book - under pre-construction service agreements Russell – WBH
Slide 17: Financial Review
FINANCIAL REVIEW 1 FINANCIAL PERFORMANCE 2 KEY FINANCIAL INDICATORS 3 FINANCIAL POSITION 4 EXIT FROM AUSTRALIA 17
Slide 18: Financial Performance
FINANCIAL PERFORMANCE Rm 2023 2022 Revenue 23 769 17 240 Operating profit before non-trading items 1 112 859 Share-based payments expense (55) (45) Loss on disposal of associate (20) - Share of profits from interests in associates and joint ventures 131 100 Net finance income 125 89 Profit before ta
Slide 19: Financial Performance: Continuing Operations
FINANCIAL PERFORMANCE CONTINUING OPERATIONS • FY2020 performance 23 769 25 000 2 500 - African operations lost two months of activity due to Covid-19 19 464 - Offset by 14% growth within UK operations 18 423 20 000 2 000 17 240 16 617 • FY2021 performance - Revenue from African operations bolstered
Slide 20: Consolidated Contribution by Geography
CONSOLIDATED CONTRIBUTION BY GEOGRAPHY – CONTINUING OPERATIONS 2023 2022 REVENUE 2023 2022 % change South Africa 15 700 11 055 42 21% 24% Rest of Africa 3 080 1 975 56 13% 12% United Kingdom 4 988 4 210 19 66% 64% Total 23 768 17 240 38 2023 2022 OPERATING PROFIT 2023 2022 % change South Africa 772
Slide 21: Key Financial Indicators
KEY FINANCIAL INDICATORS 2023 2022 Target / growth Revenue from continuing operations (decline)/growth (%) 38 (11) >10 Segment operating margin from continuing operations (%) 4.7 5.0 4.0 - 5.5 Cash and cash equivalents (Rm) 3 685 3 339 11% Earnings per share from continuing operations (cents) 1 679
Slide 22: Dividend Declaration
DIVIDEND DECLARATION • The exit from Australia in FY2022 resulted in the Group NAV reducing from R5.6 billion to R2.9 billion • The Group’s strategy to honour commitments arising from this exit was to utilise working capital and obtain a third-party loan and not to engage in a capital raise • The Gr
Slide 23: Financial Position
FINANCIAL POSITION Property, plant and equipment (Rm) 2023 2022 Property, plant and equipment 2 111 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) 159 230 relative to its operations Total 2 270 1 793 • Capex r
Slide 24: Financial Position: Associates and Joint Ventures
FINANCIAL POSITION Share of profits Interests in associates Country Effective Carrying and joint ventures (Rm) Industry of operation % amount 2023 2022 Concession investments: Gigajoule Group Gas supply & power Mozambique 26.6 386 136 82 Tsala-Bese Uyavuma Serviced accommodation South Africa 98 - -
Slide 25: Financial Position: Associates and Joint Ventures
FINANCIAL POSITION Share of profits Interests in associates Country Effective Carrying and joint ventures (Rm) Industry of operation % amount 2023 2022 Property developments: Catchu Trading Property development South Africa 50 40 (13) - The Rubik Property development South Africa 20 20 (1) - 60 (14)
Slide 26: Financial Position: Tax
FINANCIAL POSITION Tax (Rm) 2023 2022 Net deferred tax asset 445 508 Deferred tax asset consists of: Net current tax asset 193 53 • Tax losses of R70m (2022: R43m) • Timing differences of R375m (2022: R464m) United Tax expense (Rm) Africa Kingdom 2023 2022 Current tax asset consists of: Profit befor
Slide 27: Financial Position: Long-term Liabilities
FINANCIAL POSITION Long-term liabilities (Rm) 2023 2022 Property development funding 101 106 • Property development funding in respect of co-ownership of student accommodation Working capital loan (Standard Bank) 170 - building Asset-based finance 277 104 - Expected sale suspended due to change in L
Slide 28: Financial Position: Cash and Cash Equivalents
FINANCIAL POSITION Cash and cash equivalents (Rm) 2023 2022 South Africa 2 030 1 111 • Strong cash generation form continuing operations supported settlement of obligations in Australia Africa 838 1 004 • Increase in South African cash balances reflects United Kingdom 817 1 224 strong cash generatio
Slide 29: Financial Position: Cash Flow
FINANCIAL POSITION 8 000 6 000 262 323 1 239 484 3 685 352 3 339 130 4 000 269 782 2 000 - 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 inves
Slide 30: Exit from Australia
EXIT FROM AUSTRALIA • All obligations under CBA facility have been fulfilled - Unreturned guarantees to the value of A$7 million held in cash in Australian trust account - Resolution of unreturned guarantees slower than anticipated but progress is satisfactory - Four projects still to be resolved -
Slide 31: Order Book, Pipeline and Outlook
ORDER BOOK, PIPELINE AND 1 CONSOLIDATED ORDER BOOK 2 PROJECT PIPELINE OUTLOOK 3 OUTLOOK 31
Slide 32: Consolidated Order Book
CONSOLIDATED ORDER BOOK GROUP ORDER BOOK UP 43% 30 June 30 June Beyond • Growth across all divisions and key regions 2022 2023 2024 2024 • Group is well-positioned over the short to medium-term South Africa 15 786 24 738 14 117 10 621 • Building market conditions remain competitive Rest of Africa 2
Slide 33: Project Pipeline: Building and Civil Engineering
PROJECT PIPELINE Building and civil engineering (Rm) South Africa Rest of Africa Total Commercial and mixed-use developments 7 050 4 897 12 151 10% Residential 9 742 - 9 742 Industrial buildings and warehousing 4 911 1 500 6 411 Data centres 3 600 603 4 203 90% Hotels, healthcare and education 5 230
Slide 34: Project Pipeline: Roads and Earthworks
PROJECT PIPELINE Roads and earthworks (Rm) South Africa Rest of Africa Total Roadwork 28 925 - 28 925 Mining infrastructure 11 500 10 400 21 900 20% Energy infrastructure 2 080 8 500 10 580 Water infrastructure 15 500 - 15 500 80% Total 58 005 18 900 76 905 Public 40 475 - 40 475 SOUTH AFRICA REST O
Slide 35: Project Pipeline: United Kingdom and Summary
PROJECT PIPELINE United Kingdom Rm Byrne Group 35 952 Russell-WBHO 9 840 Total 45 792 Summary Rm Building and civil engineering 89 066 Roads and earthworks 76 905 United Kingdom 45 792 Total 211 763 35
Slide 36: Outlook
OUTLOOK • Impact of Australian exit firmly behind the Group • Management able to fully focus on profitable businesses • Order books for African operations at record levels • Current order book levels will support the ongoing strengthening of the balance sheet • Diversification into new African terri
Slide 37: 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 38: www.wbho.co.za
WWW.WBHO.CO.ZA
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