Wilson Bayly Holmes-ovcon Limited · JSE:WBO
Wilson Bayly Holmes-ovcon — H1 2021 Earnings Presentation
45 slides from Wilson Bayly Holmes-ovcon's earnings presentation, February 2021
Slide 1: Unaudited Results for the Six Months Ended 31 December 2020
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Slide 2: Contents
CONTENTS SUBJECT PRESENTER • Welcome Wolfgang Neff • Overview and highlights Wolfgang Neff • Operational review Wolfgang Neff › Building and civil engineering › Roads and earthworks › Australia › United Kingdom • Financial review Charles Henwood • Order book and project pipeline Wolfgang Neff • Outl
Slide 3: Overview and Highlights
OVERVIEW AND HIGHLIGHTS WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020 3
Slide 4: Group Results H1:2021
GROUP RESULTS H1:2021 OVERVIEW AND HIGHLIGHTS OVERVIEW 25 000 1 400 • Group revenue declined by 11% over the 22 894 comparative period and was in line with H2:2020 20 114 20 500 20 187 20 361 • African and United Kingdom (UK) operations 1 000 20 000 588 performed well supporting a return to overall
Slide 5: Contribution by Geography
CONTRIBUTION BY GEOGRAPHY OVERVIEW AND HIGHLIGHTS REVENUE (Rm) % growth Dec 2020 Dec 2019 GEOGRAPHIC OVERVIEW South Africa (11.7) 5 376 6 088 • All South African (SA) businesses performed well over the period Rest of Africa 24.1 1 541 1 242 • Operating margins improved and are broadly back in line A
Slide 6: Safety Performance
SAFETY PERFORMANCE OVERVIEW AND HIGHLIGHTS LTIFR (No. of lost time injuries per million man hours) SAFETY • The overall safety statistics continue to improve and reflect the Board and management commitment to creating a 1.5 zero harm environment • The African operations achieved a record-low LTIFR o
Slide 7: Building and Civil Engineering
BUILDING AND CIVIL ENGINEERING WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020 7
Slide 8: Building and Civil Engineering H1:2021 Performance
BUILDING AND CIVIL ENGINEERING BUILDING AND CIVIL ENGINEERING H1:2021 PERFORMANCE 5 000 400 • Revenue recovered to within 4% of the comparative period supported by deferred activity from the two- 3 925 4 032 month lock down in SA in H2:2020 4 000 3 853 300 • Operating margin of 3.6% (H1:2020: 3.8%).
Slide 9: Geographic Footprint
GEOGRAPHIC FOOTPRINT BUILDING AND CIVIL ENGINEERING REVENUE (Rm) 5 000 3 877 4 000 3 542 3 000 2 000 1 000 311 156 - GHANA H1 2021 H1 2020 UGANDA South Africa Rest of Africa IVORY COAST RWANDA OPERATING PROFIT (Rm) 150 122 116 ZAMBIA 100 MOZAMBIQUE ZIMBABWE 50 MAURITIUS 27 17 BOTSWANA NAMIBIA LESOTH
Slide 10: Order Book
ORDER BOOK BUILDING AND CIVIL ENGINEERING At December At June % growth / ORDER BOOK 2020 2020 (decline) • The order book recovered by 21% over the six- month period assisted by: South Africa 6 579 5 155 28 › The award of previously delayed projects Rest of Africa 500 703 (29) › A large-scale industr
Slide 11: Roads and Earthworks
ROADS AND EARTHWORKS WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020 11
Slide 12: Roads and Earthworks H1:2021 Performance
ROADS AND EARTHWORKS ROADS AND EARTHWORKS H1:2021 PERFORMANCE 3 500 400 • Revenue improved by 32% over H2:2020 but 2 971 remained below the comparative period 3 000 2 685 2 610 2 645 • Growth in operating profit of 13% at a margin of 300 2 500 5.8% reflects good execution of projects OPERATING PROFI
Slide 13: Geographic Footprint
GEOGRAPHIC FOOTPRINT ROADS AND EARTHWORKS REVENUE (Rm) 2 500 2 000 1 885 1 471 1 500 1 174 1 086 1 000 500 BURKINA - FASO SIERRA LEONE H1 2021 H1 2020 GHANA South Africa Rest of Africa LIBERIA IVORY COAST KENYA OPERATING PROFIT (Rm) 200 ZAMIBIA 93 MOZAMBIQUE 100 72 60 64 MADAGASCAR BOTSWANA NAMIBIA
Slide 14: Order Book
ORDER BOOK ROADS AND EARTHWORKS At December At June % growth / ORDER BOOK 2020 2020 (decline) • Order book levels sustained as work executed is South Africa 3 048 3 331 (9) successfully replaced • Heavier weighting of the order book toward the Rest of Africa 1 608 1 192 35 rest of Africa due to incr
Slide 15: Australia
AUSTRALIA WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020 15
Slide 16: Australia H1:2021 Performance
AUSTRALIA AUSTRALIA H1:2021 PERFORMANCE 14 000 1 200 • Decreased revenue of 27% in AU$ due to: 12 584 12 073 › COVID related lockdown restrictions 12 000 11 006 800 › Stricter procurement requirements for projects 10 707 10 315 › Fewer available projects due to general business 10 000 uncertainty OP
Slide 17: Geographic Footprint
GEOGRAPHIC FOOTPRINT AUSTRALIA REVENUE (Rm) 10 000 8 514 7 924 8 000 6 000 4 000 3 559 2 391 2 000 - H1 2021 H1 2020 QUEENSLAND Building Infrastructure OPERATING PROFIT (Rm) WESTERN NEW AUSTRALIA SOUTH 200 WALES 2 10 - VICTORIA (184) (200) (400) (325) (600) H1 2021 H1 2020 Building Infrastructure *H
Slide 18: Order Book
ORDER BOOK AUSTRALIA At December At June % growth / ORDER BOOK 2020 2020 (decline) • Building order book remains intact despite Building 18 672 17 320 8 impact of COVID-19, but substantially down from Dec 2019 Infrastructure 1 194 2 253 (47) • Activity concentrated in key states of Victoria TOTAL 19
Slide 19: United Kingdom
UNITED KINGDOM WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020 19
Slide 20: United Kingdom H1:2021 Performance
UNITED KINGDOM UNITED KINGDOM H1:2021 PERFORMANCE 4 000 300 • The combined UK operations delivered another 3,491 steadfast performance 3,129 3,129 • A 32% decline in revenue within the Byrne Group 2,961 3 000 › Attributable to Ellmers Construction where new 2,555 200 work procurement over the period
Slide 21: Geographic Footprint
GEOGRAPHIC FOOTPRINT UNITED KINGDOM REVENUE (Rm) 2 500 2 128 2 000 1 664 1 465 1 500 1363 1 000 500 - H1 2021 H1 2020 Byrne Group Russell-WBHO MANCHESTER OPERATING PROFIT (Rm) 150 LIVERPOOL 101 MILTON 100 93 KEYNES 61 56 50 LONDON - H1 2021 H1 2020 Byrne Group Russell-WBHO *Holding company costs are
Slide 22: Order Book
ORDER BOOK UNITED KINGDOM At December At June ORDER BOOK 2020 2020 % decline • The 23% decline in secured work reflects Byrne Group 2 185 2 987 (27) subdued private sector spending due to: Russell-WBHO 1 992 2 420 (18) › Impact of COVID on the UK economy › Uncertainty over the economic impact of TOT
Slide 23: Financial Review
FINANCIAL REVIEW WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020 23
Slide 24: Key Financial Indicators
KEY FINANCIAL INDICATORS FINANCIAL REVIEW TARGET / Dec Dec June GROWTH 2020 2019 2020 Revenue growth % >10 (11.1) 13.8 6.1 Operating profit margin % 3 – 4.5 0.6 1.2 (1.2) Cash and cash equivalents Rm -1% 5 034 5 108 7 599 Earnings/(loss) per share cents -92% 32 412 (937) Headline earnings/(loss) per
Slide 25: Key Financial Numbers and Ratios
KEY FINANCIAL NUMBERS AND RATIOS FINANCIAL REVIEW Dec Dec June (Rm) 2020 2019 2020 Revenue 20 361 22 894 40 086 Operating profit before non-trading items 111 264 (524) Acquisition of controlling interest in iKusasa SA (29) - - Share-based payments expense (16) (21) (44) Share of profits and losses f
Slide 26: Financial Position: Equity Accounted Investments
FINANCIAL POSITION FINANCIAL REVIEW EQUITY ACCOUNTED INVESTMENTS CARRYING SHARE OF COUNTRY OF EFFECTIVE AMOUNT OF PROFITS/(LOSSES) ENTITY INDUSTRY OPERATION % INVESTMENT Dec 2020 Dec 2019 CONCESSION INVESTMENTS: Gigajoule International Gas supply Mozambique 26.6% 188.5 16.0 11.7 Gigajoule Power Powe
Slide 27: Financial Position: Equity Accounted Investments
FINANCIAL POSITION FINANCIAL REVIEW EQUITY ACCOUNTED INVESTMENTS CARRYING SHARE OF COUNTRY OF EFFECTIVE AMOUNT OF PROFITS/(LOSSES) ENTITY INDUSTRY OPERATION % INVESTMENT Dec 2020 Dec 2019 PROPERTY DEVELOPMENTS: Catchu Trading Property development South Africa 50% 47.3 - 7.3 Caulfield Property develo
Slide 28: Financial Position: Property, Plant and Equipment
FINANCIAL POSITION FINANCIAL REVIEW Dec June PROPERTY, PLANT AND EQUIPMENT (Rm) 2020 2020 Property, plant and equipment 1 884 2 054 Right-of-use asset (IFRS 16: Leases) 343 407 Depreciation 166 326 APPROVED Dec June CAPITAL EXPENDITURE FY2021 2020 2020 Replacement 248 23 180 Expansion 2 26 73 TOTAL
Slide 29: Financial Position: Tax
FINANCIAL POSITION FINANCIAL REVIEW Dec June TAX (Rm) 2020 2020 Net deferred tax asset 708 706 Net current tax asset 172 137 Deferred tax asset consists of: Current tax asset consists of: • Tax losses of R212m (June 2020: R215m). • Foreign tax credits of R40m (June 2020: R38m). • Timing differences
Slide 30: Financial Position: Long Term Liabilities
FINANCIAL POSITION FINANCIAL REVIEW Dec June LONG TERM LIABILITIES (Rm) 2020 2020 Property development finance 111 112 Asset finance 116 162 VRP liability 112 128 Lease liabilities (IFRS16) 370 431 Other 2 2 711 835 Less: Current portion (155) (177) TOTAL 556 658 • Property development funding raise
Slide 31: Financial Position: Current Liabilities
FINANCIAL POSITION FINANCIAL REVIEW Dec June CURRENT LIABILITIES (Rm) 2020 2020 Contract liabilities 3 104 2 998 Trade and other payables 6 448 8 913 Provisions 1 892 2 369 Current tax liabilities 39 63 TOTAL 11 483 14 342 • Decrease in trade and other payables illustrates timing of Australian subco
Slide 32: Financial Position: Cash and Cash Equivalents
FINANCIAL POSITION FINANCIAL REVIEW Dec Dec June CASH AND CASH EQUIVALENTS (Rm) 2020 2019 2020 South Africa 1 661 1 784 1 877 Africa 810 1 194 821 United Kingdom 1 424 1 093 1 320 Australia 1 139 1 037 3 581 TOTAL 5 034 5 108 7 599 • Further cash generation over the six months from the UK • Decrease
Slide 33: Cashflow Movement
CASHFLOW MOVEMENT FINANCIAL REVIEW 8 000 7 599 (227) 7 000 6 000 39 218 4 5 034 5 000 (2,028) (164) (98) (309) 4 000 3 000 Cash & cash Operating loss Working capital Net Taxation Net dividends Net Net Foreign Cash & cash equivalents adjusted for changes finance income paid received cash flow cash fl
Slide 34: Order Book and Project Pipeline
ORDER BOOK AND PROJECT PIPELINE WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020
Slide 35: Consolidated Order Book
CONSOLIDATED ORDER BOOK ORDER BOOK AT AT JUNE DECEMBER TO JUNE BEYOND SEGMENT (Rm) 2020 2020 2021 JUNE 2021 ORDER BOOK BY SEGMENT (%) 12% 20% Building and civil engineering 5 858 7 079 3 653 3 426 - South Africa 5 155 6 579 3 458 3 120 - Rest of Africa 703 500 195 306 Dec 2020 13% Roads and earthwor
Slide 36: Project Pipeline: Building
PROJECT PIPELINE PROJECT PIPELINE South Rest of Africa Africa Total BUILDING Rm Rm Rm 11% Retail 2 670 664 3 334 Commercial 5 414 1 211 6 625 Dec South Africa Mixed-use developments 2 484 - 2 484 2020 Rest of Africa Hotel, healthcare and education 3 012 100 3 112 89% Residential 5 969 577 6 546 Indu
Slide 37: Project Pipeline: Civil Engineering
PROJECT PIPELINE PROJECT PIPELINE South Rest of Africa Africa Total CIVIL ENGINEERING Rm Rm Rm Energy infrastructure 1 470 3 355 4 825 26% Renewable energy (wind) 11 000 - 11 000 Dec South Africa Mining infrastructure 1 350 135 1 485 2020 Rest of Africa 74% Water infrastructure 250 2 800 3 050 Marin
Slide 38: Project Pipeline: Roads and Earthworks
PROJECT PIPELINE PROJECT PIPELINE South Rest of Africa Africa Total ROADS AND EARTHWORKS Rm Rm Rm 29% Roadwork 24 400 9 400 33 800 Mining infrastructure 9 300 8 368 17 668 Dec South Africa 2020 Rest of Africa Energy infrastructure 3 590 2 100 5 690 71% Renewable energy 5 000 - 5 000 Pipeline infrast
Slide 39: Project Pipeline: Australia and United Kingdom
PROJECT PIPELINE PROJECT PIPELINE AUSTRALIA Rm 15% Building 82 284 AUSTRALIA Building Infrastructure 11 736 Dec Infrastructure 2020 TOTAL 94 020 85% UNITED KINGDOM Rm Byrne Group 20% Building 13 230 UNITED KINGDOM Infrastructure 15 792 Byrne Group Dec Russell-WBHO Russell-WBHO 7 203 2020 80% TOTAL 3
Slide 40: Project Pipeline Summary
PROJECT PIPELINE PROJECT PIPELINE SUMMARY Rm 14% 20% Building and civil engineering 50 450 SUMMARY Building and civil engineering Roads and earthworks 68 658 2019 Roads and earthworks Australia 94 020 Australia 38% 28% United Kingdom United Kingdom 36 225 TOTAL 249 353 • The project pipeline consist
Slide 41: Outlook
OUTLOOK OUTLOOK SOUTH AFRICA • Impact of COVID-19 will likely dampen commercial property developments investment over the short- term, particularly within the hotel and office sectors – but pockets of activity remain • Private sector mining infrastructure activity is picking up as commodity prices i
Slide 42: Outlook: United Kingdom
OUTLOOK OUTLOOK UNITED KINGDOM • Public infrastructure spending offers increased opportunities for the Byrne Group within the civil engineering sector as commercial opportunities soften • Traditional construction markets within Ellmers Construction likely to remain under pressure • Russell-WBHO rema
Slide 43: Summary
SUMMARY OUTLOOK • Australian operations have been substantially de-risked • Balance sheet strength and cash reserves maintained despite impact of WRU project • Business is well positioned for public sector spending across all geographies • Construction-focused business model • Corporate culture of t
Slide 44: 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 45: Thank You
THANK YOU WBHO UNAUDITED RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2020 45
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