Wilson Bayly Holmes-ovcon Limited · JSE:WBO
Wilson Bayly Holmes-ovcon — FY2024 Earnings Presentation
69 slides from Wilson Bayly Holmes-ovcon's earnings presentation, June 2024
Slide 1: Audited Results for the Year Ended June 2024
AUDITED RESULTS FOR THE YEAR ENDED JUNE 2024
Slide 2: Contents
DISCLAIMER: THIS PRESENTATION IS BEING RECORDED. YOUR CONTINUED ATTENDANCE AT THE PRESENTATION CONFIRMS YOUR CONSENT CONTENTS 1 OPERATIONAL REVIEW 2 FINANCIAL REVIEW 3 ORDER BOOK, PIPELINE AND OUTLOOK
Slide 3: Operational Review
OPERATIONAL REVIEW 1 ESG PERFORMANCE 2 BUILDING AND CIVIL ENGINEERING 3 ROADS AND EARTHWORKS 4 UNITED KINGDOM
Slide 4: ESG Performance
ESG PERFORMANCE FY2024 PERFORMANCE LOST TIME INJURY FREQUENCY RATIO (LTIFR) • All time safety record exceeded with an LTIFR of 0.24 (FY2023: 0.27) across the Group 1.0 • Commitment to Zero Harm driven from executive level • Zero fatalities across the Group (FY2023: 1) 0.8 • The last recorded fatalit
Slide 5: Building and Civil Engineering
BUILDING AND CIVIL ENGINEERING 1 FY2024 PERFORMANCE 2 GEOGRAPHIC ANALYSIS 3 ORDER BOOK
Slide 6: Building and Civil Engineering FY2024 Performance
BUILDING AND CIVIL ENGINEERING FY2024 PERFORMANCE • Revenue growth of 10% and an improved operating margin of 4.7% (FY2023: 4.6%) 15,000 800 • Growth supported by elevated activity levels within traditional civil engineering markets and renewable energy sector 12,068 10,981 BUILDING 12,000 568 600 •
Slide 7: Building and Civil Engineering Geographic Performance
BUILDING AND CIVIL ENGINEERING GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 16,000 11,820 10,744 12,000 REVENUE (Rm) 8,000 4,000 248 237 0 2024 2023 SOUTH AFRICA REST OF AFRICA 800 552 OPERATING PROFIT (Rm) 509 600 400 200 16 0 ( 5) 2024 2023 -200 SOUTH AFRICA REST OF AFRICA 7
Slide 8: Building and Civil Engineering Order Book
BUILDING AND CIVIL ENGINEERING ORDER BOOK DOWN 10% 30 June 30 June % • Difficult to replace large-scale projects in Gauteng but opportunities do exist 2024 2023 change • Opportunities in the coastal region have grown and order books in the South Africa 11 086 12 509 (11) Western Cape and KZN are str
Slide 9: JB5 Teraco
JB5 TERACO 9
Slide 10: Steyn City Phase 4-6
STEYN CITY PHASE 4 - 6 10
Slide 11: Investec V&A Waterfront
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Slide 12: Riverlands Cape Town
RIVERLANDS CAPE TOWN 12
Slide 13: The Rubik
THE RUBIK 13
Slide 14: On Park
ON PARK 14
Slide 15: Oceans Umhlanga Residential
OCEANS UMHLANGA RESIDENTIAL 15
Slide 16: Hill on Empire
HILL ON EMPIRE 16
Slide 17: Devin Properties
DEVIN PROPERTIES 17
Slide 18: Shoprite DC Wells Estate
SHOPRITE DC WELLS ESTATE 18
Slide 19: Polihali Village
POLIHALI VILLAGE 19
Slide 20: TRP Merensky Concentrator
TRP MERENSKY CONCENTRATOR 20
Slide 21: Middleburg Precast Factory
MIDDLEBURG PRECAST FACTORY 21
Slide 22: Durban Tug Jetty
DURBAN TUG JETTY 22
Slide 23: Merak Solar
MERAK SOLAR 23
Slide 24: Coleskop Windfarm
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Slide 25: Roads and Earthworks
ROADS AND EARTHWORKS 1 FY2024 PERFORMANCE 2 GEOGRAPHIC ANALYSIS 3 ORDER BOOK
Slide 26: Roads and Earthworks FY2024 Performance
ROADS AND EARTHWORKS FY2024 PERFORMANCE • Revenue growth of 30% at an operating margin of 7% (FY2023: 6.6%) 10,000 800 8,935 SOUTH AFRICA • Revenue growth of 46% in South Africa 626 8,000 • Strong growth across all major sectors 6,857 600 - 61% growth from mining and energy infrastructure projects -
Slide 27: Roads and Earthworks Geographic Performance
ROADS AND EARTHWORKS GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 8,000 6,004 6,000 4,100 REVENUE (Rm) 2,931 4,000 2,757 2,000 0 2024 2023 SOUTH AFRICA REST OF AFRICA 600 OPERATING PROFIT (Rm) 400 342 284 227 223 200 0 2024 2023 SOUTH AFRICA REST OF AFRICA 27
Slide 28: Roads and Earthworks Order Book
ROADS AND EARTHWORKS ORDER BOOK DOWN 2% 30 June 30 June % • 82% of FY2024 revenue is secured for FY2025 2024 2023 Change • Roadwork comprises 60% of the order book of which R3.3 billion to be South Africa 12 373 12 228 1 executed in FY2025 Rest of Africa 2 183 2 561 (15) ORDER BOOK BY SECTOR Total 1
Slide 29: Kareerand
KAREERAND 29
Slide 30: Elders Colliery
ELDERS COLLIERY 30
Slide 31: New Largo
NEW LARGO 31
Slide 32: N2 Belstone and Breidbach
N2 BELSTONE AND BREIDBACH 32
Slide 33: N2 Green River
N2 GREEN RIVER 33
Slide 34: N2 Mtentu
N2 MTENTU 34
Slide 35: N3 Key Ridge
N3 KEY RIDGE 35
Slide 36: N4 Montrose
N4 MONTROSE 36
Slide 37: Ngwadini Dam
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Slide 38: AML Tailing Storage Facility
AML TAILING STORAGE FACILITY 38
Slide 39: United Kingdom
UNITED KINGDOM 1 FY2024 PERFORMANCE 2 GEOGRAPHIC ANALYSIS 3 ORDER BOOK
Slide 40: United Kingdom FY2024 Performance
UNITED KINGDOM FY2024 PERFORMANCE • The cost of projects and project finance continued to hamper project feasibilities in FY2024 8,000 800 • Pricing developed under PCSA’s regularly exceeds project budgets and secured finance 6,452 BYRNE GROUP • Combined revenue for the group consistent with the pri
Slide 41: United Kingdom Geographic Performance
UNITED KINGDOM GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 6,000 4,081 4,021 4,000 REVENUE (Rm) 1,359 2,000 907 0 2024 2023 BYRNE GROUP RUSSELL WBHO 200 154 134 OPERATING PROFIT (Rm) 150 100 37 50 (11) (6) (8) 0 2024 2023 -50 BYRNE GROUP RUSSELL WBHO WBHO UK 41
Slide 42: United Kingdom Order Book
UNITED KINGDOM ORDER BOOK DOWN 8% 30 June 30 June % • General sense that the UK construction market is turning despite a 2024 2023 change decrease in the order book Byrne Group 3 751 3 998 (6) • Byrne Bros has a healthy order book in terms of both quantum and quality of projects Russell WBHO 676 817
Slide 43: North London Heat & Power
NORTH LONDON HEAT & POWER 43
Slide 44: Television Centre
TELEVISION CENTRE 44
Slide 45: Long Itchington
LONG ITCHINGTON 45
Slide 46: Super Computer
SUPER COMPUTER 46
Slide 47: The Mere Hotel
THE MERE HOTEL 47
Slide 48: Trafford 150 Warehouse
TRAFFORD 150 WAREHOUSE 48
Slide 49: Financial Review
FINANCIAL REVIEW 1 KEY FINANCIAL INDICATORS 2 REVENUE BY GEOGRAPHY 3 FINANCIAL PERFORMANCE 4 FINANCIAL POSITION
Slide 50: Key Financial Indicators
KEY FINANCIAL INDICATORS 2024 2023 Target / growth Revenue growth 16% 38% >10% Segment operating margin 5.1% 4.7% 4.0% - 5.5% Cash and cash equivalents (Rm) 3 660 3 685 -1% Earnings per share from continuing operations (cents) 1 854 1 679 10% Headline earnings per share from continuing operations (c
Slide 51: Consolidated Contribution by Geography – Continuing Operations
CONSOLIDATED CONTRIBUTION BY GEOGRAPHY – CONTINUING OPERATIONS 2024 2023 REVENUE 2024 2023 % change South Africa 18 926 15 700 21 20% 21% Rest of Africa 3 221 3 080 5 11% 13% United Kingdom 5 379 4 988 8 69% 66% Total 27 526 23 768 16 2024 2023 OPERATING PROFIT 2024 2023 % change 10% South Africa 93
Slide 52: Financial Performance
FINANCIAL PERFORMANCE Rm 2024 2023 Revenue 27 526 23 769 Operating profit before non-trading items 1 415 1 112 Share-based payments expense (82) (55) Impairment of goodwill (86) - Loss on disposal of associate - (20) Share of profits from interests in associates and joint ventures 96 131 Net finance
Slide 53: Financial Performance
FINANCIAL PERFORMANCE CONTINUING OPERATIONS • Revenue growth of 60% over two years 27,526 30,000 2,500 • Record revenue of R22 billion achieved by the African operations 23,769 • Record profitability of R1.3 billion achieved by the African operations 25,000 2,000 • Group operating profit after tax e
Slide 54: Financial Position – Property, Plant and Equipment
FINANCIAL POSITION Property, plant and equipment (Rm) 2024 2023 Property, plant and equipment 2 331 2 111 • Plant replacement policy aims for an optimal fleet size and age relative to the operations Right of use assets (IFRS 16) 156 159 • Expansionary capex at elevated levels to support Total 2 487
Slide 55: 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 2024 2023 Concession investments: Gigajoule Group Power and gas Mozambique 26.6 387 71 136 Tsala-Bese Uyavuma Serviced accommodation South Africa 32.5 102 4 -
Slide 56: 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 2024 2023 Property developments: Trilogy Apartments Property development South Africa 50 10 - (13) The Rubik Property development South Africa 20 21 (1) (1) 3
Slide 57: Financial Position – Tax
FINANCIAL POSITION Tax (Rm) 2024 2023 Net deferred tax asset 518 445 Deferred tax asset consists of: Net current tax asset 27 193 • Tax losses of R33m (2023: R70m) United • Timing differences of R485m (2023: R375m) Tax expense (Rm) Africa Kingdom 2024 2023 Current tax asset consists of: Profit befor
Slide 58: Financial Position – Long-term Liabilities
FINANCIAL POSITION Long-term liabilities (Rm) 2024 2023 Property funding (ABSA) 101 101 • Property funding related to co-ownership of student accommodation Working capital loan (Standard Bank) 53 170 - Sale agreement remains suspended Asset-based finance 325 277 - Repayment of debt to be extended by
Slide 59: Financial Position – Cash and Cash Equivalents
FINANCIAL POSITION Cash and cash equivalents (Rm) 2024 2023 • Lower cash balances in South Africa and in the South Africa 1 892 2 030 rest of Africa reflect Africa 763 838 - increased capital expenditure United Kingdom 1 005 817 - working capital outflows Total 3 660 3 685 - dividend payments • UK c
Slide 60: Financial Position – Cash Generated from Operations
FINANCIAL POSITION Cash generated from operations (Rm) 2024 2023 Operating profit 1 247 1 058 • Increase in trade receivables reflects revenue Adjusted for non-cash items: growth of 16% Share-based payment expense 82 55 • Increase in contract assets due to:- - milestones on renewable energy projects
Slide 61: Financial Position – Cash Flow Movement
FINANCIAL POSITION 8 000 1 747 6 000 218 3 660 3 685 711 395 37 4 000 194 167 514 45 2 000 - Cash & cash Foreign currency Operating profit Working capital Net finance and Taxation Dividends paid Cash flows from Cash flows from Cash flows from Cash & cash equivalents translation effect adjusted for n
Slide 62: Order Book, Pipeline and Outlook
ORDER BOOK, PIPELINE AND OUTLOOK 1 CONSOLIDATED ORDER BOOK 2 PROJECT PIPELINE 3 OUTLOOK
Slide 63: Consolidated Order Book
CONSOLIDATED ORDER BOOK GROUP ORDER BOOK DOWN 6% 30 June 30 June Beyond 2023 2024 2025 2025 • Marginal decline across all geographic regions but remains at elevated levels South Africa 24 738 23 459 14 402 9 057 • Reflects a mismatch in the timing of awards and work Rest of Africa 2 998 2 713 2 346
Slide 64: Project Pipeline – Building and Civil Engineering
PROJECT PIPELINE Building and civil engineering (Rm) South Africa Rest of Africa 2024 2023 Commercial and mixed-use 11 492 1 592 13 084 12 151 14% developments Residential 11 217 550 11 767 9 742 Industrial buildings and warehousing 10 430 1 300 11 730 6 411 86% Data centres 6 300 1 170 7 470 4 203
Slide 65: Project Pipeline – Roads and Earthworks
PROJECT PIPELINE Roads and earthworks (Rm) South Africa Rest of Africa 2024 2023 Roadwork 52 095 5 825 57 920 28 925 Mining infrastructure 6 800 11 840 18 640 21 900 22% Energy infrastructure 6 185 9 475 15 660 10 580 Marine infrastructure - 2 500 2 500 - 78% Water infrastructure 42 000 370 42 370 1
Slide 66: Project Pipeline – United Kingdom and Summary
PROJECT PIPELINE 2024 2023 United Kingdom Rm Rm Byrne Group 33 247 35 952 Russell WBHO 11 064 9 840 Total 44 311 45 792 2024 2023 Summary Rm Rm Building and civil engineering 107 950 89 066 Roads and earthworks 107 080 76 905 United Kingdom 44 311 45 792 Total 259 341 211 763 66
Slide 67: Outlook
OUTLOOK • Government of National Unity in South Africa appears committed to service delivery and infrastructure development • Inflation has stabilised and world economies will soon commence interest rate cuts • Domestic and global economic growth rates are improving • Group order book remains at ele
Slide 68: 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 69: www.wbho.co.za
WWW.WBHO.CO.ZA
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