analysts presentation 2008 welcome to. presenters: mike wylie - chairman savannah maziya - main...
TRANSCRIPT
PRESENTERS:
• Mike Wylie - Chairman
• Savannah Maziya - Main Board non-executive
• Kobie Botha - EXCO, MD Roads & Earthworks
• Louwtjie Nel - CEO
• Paul Foley - EXCO, MD Civil & Building
AGENDA:
1. BEE - Mike Wylie
2. Company structure - Mike Wylie
3. Current contracts - Paul Foley & Kobie Botha
4. Prospects - Louwtjie Nel
5. Industrial - Mike Wylie
6. Financial highlights - Savannah Maziya
AVERAGE AVERAGEYEARS OF AVERAGE YEARS
SENIOR MANAGEMENT NO. SERVICE AGE EXPERIENCEEXCO 11 23 52 27REGIONAL MANAGING DIRECTORS 9 15 41 22DIRECTORS 31 19 50 26ALTERNATE DIRECTORS 36 13 43 19
TOTAL AVERAGE 19 48 24Total 87
WBHO CONSTRUCTION (PTY) LIMITED
CRITICAL SKILLS BUILD UP: JUNE 2004 - JUNE 2008
CRITICAL SKILLS 06/2004 06/2005 06/2006 06/2007 06/2008 % '04 vs '08
SHUTTER HANDS 605 720 812 947 1464 142%
SUPERVISORY 569 617 632 771 895 57%
OPERATIONAL 207 229 235 248 387 87%
TRAINEES (Eng / Tech, QS) 24 32 49 95 111 363%
TOTAL CRITICAL SKILLS: 1405 1598 1728 2061 2857 103%
T/O PER CRITICAL SKILL *: R 1,463 R 1,648 R 2,205 R 2,525 R 2,389 63%
TOTAL EMPLOYEES: 4943 6502 6177 8309 11779 138%
* 000's
.
.
.
.
.
YOUNG TALENT
Au
s, Cap
ital Africa,
etc
Au
s, Cap
ital Africa,
etc
Retire at 60 Coaching from 60
CAPITAL AFRICA STEEL
WBHO50%
BRAIT40%
CARACAL10%
CAPITAL AFRICA STEEL
RMS100%
DIWIDAG50%
STAR STEEL95%
SYMO100%
3Q CONCRETE
60%
PROSPECTS
Roads & Civils
• SANRAL and Provincial Roads - R50 B
• DWAF – new and refurbished dams - R 1 B
• Transnet and Portnet - R40 B
• Gas and petroleum pipelines - R 9 B
• ACSA airports - R 8 B
• Mining and infrastructure RSA, Ghana,DRC,
Zambia - R 1 B
PROSPECTS
Civils
• Medupi and Kusile power stations - R 7 B
• Nuclear 1 - R 10 B
• SASOL expansion projects - R 5 B
• Mining contracts - R 2 B
• Coega – Petrosa and biofuels - R 1 B
PROSPECTS
Building
• PPP’s – Healthcare and prisons - R10 B
• ACSA – Midfields - R20 B
• Retail – Upgrades and regional malls - R 7 B
• Corporate office blocks - R 1 B
• Hotels - R 1 B
• Convention centres - R 2 B
• Government – National archives - R 2 B
• UAE, Mauritius, Zambia
PROSPECTS
Probuild
• Retail - R 4 B
• Commercial - R 7 B
• Residential - R 3 B
• Airports - R 3 B
• Education - R 3 B
Revenue
0
2,000
4,000
6,000
8,000
10,000
12,000
2002 2003 2004 2005 2006 2007 2008
R m
0
We have grown our revenue by 33% from R8.1b by R2.7 b to R10.8 b last year we grew by R2.3 b some 40%
Operating profit
0
100
200
300
400
500
600
700
800
900
1000
2002 2003 2004 2005 2006 2007 2008
R m
Our operating margin achieved 8.4% on R10.8 b last year it was 5.1% on R8.1 b
Headline Earnings
0
200
400
600
800
1000
1200
1400
2002 2003 2004 2005 2006 2007 2008
R 000's
Our compound growth in headline earnings has been 36% per annum since listing
HIGHLIGHTS
• WBHO’s earnings per share have improved by 160%
• In January 2008 we restructured CAS and reduced our investment to 50%, giving rise to R93 m profit and CAS then became an associate
• Headline earnings per share are up 147% after adding back impairment of goodwill and deducting the profit on the sale of CAS and profit on the sale of assets
• Balance sheet and cash balances remain strong
SEGMENTAL INFORMATION Reviewed AuditedJune 2008 June 2007
R'000 R'000
Segment revenue - Building and civil engineering 7,807,924 5,716,322 - Roads and earthworks 2,719,297 1,877,000 - Industrial 183,689 289,648 - Property and concessions 72,741 244,823
10,783,651 8,127,793
Segment result (operating profit before non-trading items) Margin Margin
- Building and civil engineering 6% 484,380 4% 222,453 - Roads and earthworks 14% 374,394 4% 76,128 - Industrial 21% 39,058 22% 65,083 - Property and concessions 10% 6,996 21% 52,213
8% 904,828 5% 415,877
SECONDARY SEGMENTS
Segment revenue - Local 6,911,796 5,515,206 - International 3,871,855 2,612,587
10,783,651 8,127,793
Segment result (operating profit before non-trading items) Margin Margin
- Local 7% 521,894 6% 303,519 - International 10% 382,934 4% 112,358
8% 904,828 5% 415,877