AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019 CONTENTS SUBJECT - - PowerPoint PPT Presentation

AUDITED RESULTS

FOR THE YEAR ENDED 30 JUNE 2019

2 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

CONTENTS

SUBJECT PRESENTER

• Welcome

Mike Wylie

• Overview and highlights

Louwtjie Nel

• Operational review

› Building and civil engineering Wolfgang Neff › Roads and earthworks Riaan De Necker › Australia Paul Foley › United Kingdom Paul Foley

• Financial review

Charles Henwood

• Order book and project pipeline

Louwtjie Nel

• Outlook

Louwtjie Nel

Louwtjie Nel

3 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

OVERVIEW AND HIGHLIGHTS

4 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

GROUP RESULTS FY19

• Revenue growth of 16% (2018: 10%) attributable to first time consolidation of UK operations
• Revenue from African and Australian operations broadly in line with 2018
• 46% decline in operating profit due to significant provision for anticipated losses on WRU
• Overall margin of 1.4% (2018: 3.0%)

28,823 30,650 31,907 35,028 40,614 768

2.7%

1 005

3.3%

986

3.1%

1,045

3.0%

561 1.4%

• 500

1 000 1 500 2 000 2 500

• 10 000

20 000 30 000 40 000 50 000 2015 2016 2017 2018 2019

Revenue Operating profit

REVENUE (Rm) OPERATING PROFIT (Rm) OVERVIEW AND HIGHLIGHTS

5 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

CONTRIBUTION BY GEOGRAPHY

• Revenue growth over the last 5 years attributable to Australia and in FY19 to United Kingdom
• No growth across combined African operations

28 823 30 650 31 907 35 028 40 614 9 796 9,739 11 454 10 650 10 856 3 676 2 798 1 853 2 437 2 361 15 351 18 113 18 600 21 941 21 713 5 684

• 10 000

20 000 30 000 40 000 50 000 2015 2016 2017 2018 2019

Total South Africa Rest of Africa Australia United Kingdom

REVENUE (Rm) FINANCIAL REVIEW

6 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

CONTRIBUTION BY GEOGRAPHY

REVENUE (Rm) % Growth 2019 2018 South Africa 2.1 10 10 85 856 10 650 Rest of Africa (4.0) 2 2 36 361 2 437 Australia (1.0) 21 21 71 713 21 941 United Kingdom 5 5 68 684

• TOTAL

15.9 40 40 61 614 35 028 OPERATING PROFIT (Rm) % Margin 2019 2018 South Africa 4.4 475 475 525 Rest of Africa 8.3 193 193 185 Australia (1.5) (335 335) 278 United Kingdom 4.0 228 228 57 TOTAL 1.4 561 561 1 045

27% 6% 53% 14%

30% 7% 63%

2019 2018

South Africa Australia Rest of Africa United Kingdom

REVENUE (%)

FINANCIAL REVIEW

7 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

THE YEAR IN PERSPECTIVE

SOUTH AFRICA

• The construction environment remained under severe pressure throughout the year with fewer
• pportunities across all major sectors
• Capacity of the industry as a whole has been severely reduced with the spate of corporate failures

and exits from the construction market

• Unrest and disruptions from communities, business forums and taxi associations have become

commonplace and increasingly threatening

• Local building markets continued to decline in Gauteng
• Civil markets yet to display any sign of meaningful recovery
• Minimal activity from SANRAL – no new projects secured in 2019
• Mining and energy infrastructure projects offered some opportunities
• Steel supply business profitable but market conditions remain difficult

OVERVIEW AND HIGHLIGHTS

8 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

THE YEAR IN PERSPECTIVE

REST OF AFRICA

• Building and mining activity in West Africa remained heavily subdued
• Increased activity in Botswana and Zambia
• Award of first gas-related infrastructure projects in the region a positive sign

AUSTRALIA

• Construction markets remain buoyant
• Revenue growth in Probuild purposefully constrained – focus on improved project execution
• AU$50 million provision for anticipated losses on Western Roads Upgrade project within

the infrastructure business

• Results in significant first-time loss from Australian operations

UNITED KINGDOM

• Turn-around strategy for the Byrne Group complete
• Acquisition of 60% of Russells Construction and 31.7% of Russell Homes on 18 July 2018
• Strong market conditions in Manchester supported a solid result from Russells Construction
• Russell Homes also had a positive year

OVERVIEW AND HIGHLIGHTS

9 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

0.75 0.94 0.80 0.91 0.69 0.0 0.5 1.0 1.5 2.0 2015 2016 2017 2018 2019

SAFETY PERFORMANCE

• Improved safety performance statistics achieved in 2019
• Strong improvement from local building divisions and Australian operations
• Three fatalities recorded in South Africa

LTIFR (No. of lost time injuries per million man hours)

OVERVIEW AND HIGHLIGHTS

10 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

TRANSFORMATION AND EMPOWERMENT

• WBHO proudly became a Level 1 contributor in 2018
• Recognised as second most empowered company on the JSE
• WBHO spends 80% of its total measured procurement on B-BBEE compliant companies

› Total B-BBEE spend of R7.5 billion › Black-owned spend of R3.7 billion › Black woman-owned spend of R1.2 billion › QSE spend of R1.9 billion › EME spend of 1.6 billion

• Total black training spend of R40 million
• R6.4 million spent on 18 companies on enterprise development programme
• R5.3 million spent on socio-economic development initiatives
• Support of three mid-tier black contractors through VRP programme

OVERVIEW AND HIGHLIGHTS

11 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

BUILDING AND CIVIL ENGINEERING

Wolfgang Neff

12 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

BUILDING AND CIVIL ENGINEERING FY19 RESULT

• Revenue stable in 2019 (2018: decline of 10%)
• 17% contribution to group revenue (2018: 21%)
• 2% decline in South Africa
• 20% increase from the rest of Africa

7,385 7,536 8,136 7,302 7,338 352

4.9%

300

4.8%

385

4.7%

332

4.5%

304 4.1%

• 200

400 600 800 1 000

• 2 000

4 000 6 000 8 000 10 000 2015 2016 2017 2018 2019

Revenue Operating profit

REVENUE (Rm) OPERATING PROFIT (Rm)

• Overall margin of 4.1% (2018: 4.5%)
• Margin pressure prevalent across all sectors
• Consistent execution of projects with no major under-performing

contracts is key to profitability in current environment

BUILDING AND CIVIL ENGINEERING

13 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019 13 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

GEOGRAPHIC FOOTPRINT

SOUTH AFRICA ZAMBIA GHANA

OPERATING PROFIT (Rm) REVENUE (Rm)

6 550 6 443 788 659

• 2 000

4 000 6 000 8 000 2019 2018

South Africa Rest of Africa

245 239 59 93

• 100

200 300 2019 2018 South Africa Rest of Africa

MOZAMBIQUE

BUILDING AND CIVIL ENGINEERING

14 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

THE YEAR IN PERSPECTIVE

BUILDING

• Division performed well to sustain activity levels
• Concentration of work in commercial office sector – but sector is in decline due to over-supply
• Increase in residential-only and mixed-use developments
• Retail sector remains subdued
• Revenue sustained in Gauteng despite fewer large-scale projects available
• Diminishing building opportunities in KZN – industrial sector targeted to support activity
• Majority of projects in the Western Cape negotiated
• Healthy growth achieved in the Eastern Cape following improved order intake

CIVIL ENGINEERING

• No improvement in local civil engineering markets
• Construction of the commercial crude oil terminal facility progressing well – contractual issues still

to be resolved

• Increased mining infrastructure activity following award of mid-sized project in Zambia

BUILDING AND CIVIL ENGINEERING

15 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ORDER BOOK

ORDER BOOK UP 8%

• Improved order intake locally over the second

six months

• Minimal building opportunities in West Africa

– focus on Southern Africa

• Completion of mining infrastructure project in

Zambia

• Over R2 billion secured after the reporting

period

• Healthy order books in all regions

ORDER BOOK BY SECTOR

• Reduction in proportion of commercial work

as activity in hotel and education sectors increases

• Significant increase in industrial warehousing

in KZN and Eastern Cape

• Increase in residential and healthcare projects
• Imminent award of 9 500 man camp in Palma

as gas-related infrastructure projects gain traction (not included in order book) At June 2019 At June 2018 % growth South Africa 6 6 34 348 5 374 18 Rest of Africa 98 98 611 (84) TOTAL 6 6 44 446 5 986 8

9% 16% 10% 22% 14% 18% 4% 7% 7% 25% 14% 17% 13% 5% 12% 7%

Retail Commercial

2019 2018

Residential Health, leisure and education Energy infrastructure Civil works and mining infrastructure

ORDER BOOK BY SECTOR (%)

BUILDING AND CIVIL ENGINEERING

Mixed-use developments Industrial

16 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

144 OXFORD STREET

155 WEST STREET

17 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ABSA TOWERS

18 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

HATFIELD STUDENT ACCOMMODATION

19 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

DELOITTE HEAD OFFICE

20 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

JEWEL CITY – INNER CITY REGENERATION PROJECT

21 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

JORRISSON STREET

22 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

TRILOGY APARTMENTS

23 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

24 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ROADS AND EARTHWORKS

Riaan De Necker

25 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ROADS AND EARTHWORKS FY19 RESULT

• Revenue levels stable (2018: 15%)
• 5% growth in South Africa
• 11% decline from the rest of Africa
• 14% contribution to group revenue
• Margin of 6.5% (2018: 7%) reflects challenging environment
• Further hampered by additional completion costs on projects in Guinea and Mozambique

5,282 4,334 4,590 5,282 5,295 380

7.2%

300

6.5%

342

7.4%

371

7.0%

343

6.5%

• 200

400 600 800 1 000

• 2 000

4 000 6 000 8 000 2015 2016 2017 2018 2019

Revenue Operating profit

REVENUE (Rm) OPERATING PROFIT (Rm) ROADS AND EARTHWORKS

26 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019 26 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

GEOGRAPHIC FOOTPRINT

SOUTH AFRICA BURKINA FASO eSWATINI (SWAZILAND) BOTSWANA NAMIBIA MOZAMBIQUE GHANA SIERRA LEONE GUINEA

OPERATING PROFIT (Rm) REVENUE (Rm)

3,721 3,538 1,574 1,744

• 1 000

2 000 3 000 4 000 2019 2018

South Africa Rest of Africa

209 273 134 98

• 100

200 300 2019 2018 South Africa Rest of Africa ROADS AND EARTHWORKS

27 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

THE YEAR IN PERSPECTIVE

SOUTH AFRICA

• Solid performance in a challenging market
• Growth in revenue supported by mining and energy infrastructure sectors
• Decline in roadwork – activity supported by existing projects with only three new projects secured in 2019
• Coal mining infrastructure projects for three large mining houses
• Pipeline market remains highly competitive – large proportion of work derived internally by offering clients

a full suite of construction services

• Increased activity in low-cost housing market with additional projects secured in KZN and the Eastern Cape

REST OF AFRICA

• Sharp decline in activity in West Africa as existing projects completed
• Increased mining infrastructure activity in Botswana
• Award of a new road project in eSwatini (Swaziland) and early works for the Lesotho Highlands Water

Project

• Construction of first gas-related infrastructure project underway – community road in Palma

ROADS AND EARTHWORKS

28 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ORDER BOOK

ORDER BOOK UP BY 39%

• Local order book bolstered by additional work

awarded on mining and energy infrastructure projects as well as new Zulti Pipeline project

• Difficulty in securing new work in West Africa
• Numerous bids submitted but timing of

awards remains uncertain

• Good opportunities still exist in Botswana and

Mozambique ORDER BOOK BY SECTOR

• Lower volumes of roadwork evident in order

book

• Mining infrastructure and energy

infrastructure continue to contribute toward activity

• Significant increase in pipeline activity due to

recent award of Zulti project At June 2019 At June 2018 % growth South Africa 4 4 29 290 3 323 29 Rest of Africa 1 440 440 841 71 TOTAL 5 5 73 730 4 164 39

29% 22% 18% 23% 4% 4% 38% 32% 23% 3% 4%

Roadwork Mining infrastructure

2019 2018

Energy infrastructure Pipelines Low-cost housing

ORDER BOOK BY SECTOR (%)

ROADS AND EARTHWORKS

Water and rail infrastructure

AUSTRALIA

Paul Foley

29 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

30 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

15,352 18,113 18,600 21,941 21,713 11

0.0%

300

1.7%

259

1.4%

278

1.3%

(335)

• 1.5%

( 600) ( 400) ( 200)

• 200

400 600 800 1 000

• 6 000

12 000 18 000 24 000 2015 2016 2017 2018 2019

Revenue Operating profit

AUSTRALIA FY19 RESULT

• Overall revenue sustained (2018: 22% growth)
• 8% revenue decline in building business
• 33% growth in infrastructure business
• 53% contribution to group revenue (2018: 63%)
• Unprecedented loss of R335 million
• Negative margin of -1.5% (2018: 1.3%)

REVENUE (Rm) OPERATING PROFIT (Rm) 3 loss-making civil projects in Australia Includes AU$57m WRU loss in Australia AUSTRALIA

31 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019 31 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

GEOGRAPHIC FOOTPRINT

VICTORIA NEW SOUTH WALES QUEENSLAND WESTERN AUSTRALIA

OPERATING PROFIT (Rm) REVENUE (Rm)

16 941 18 310 4,772 3,631

• 5 000

10 000 15 000 20 000 2019 2018

Building Infrastructure

222 176 (557) 102

(800) (400)

• 400

2019 2018 Building Infrastructure AUSTRALIA

32 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

THE YEAR IN PERSPECTIVE

WESTERN ROADS UPGRADE PROJECT

• Single design and construct contract comprising eight separate packages
• Four packages fully subcontracted – to be completed in Q1 2020
• Four packages self-executed

› Extensive delays in obtaining initial design approval – due diligence identifies incorrect interpretation of technical specifications › Design approval substantially resolved and physical works have commenced

• Commercial focus on pursuing contractual delay claims against the design consultant and the

ultimate client

• Significant impact on FY19 result - AU$50 million loss-provision and AU$7 million of previously

recognised profit reversed

AUSTRALIA

33 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

THE YEAR IN PERSPECTIVE

BUILDING

• Strong fixed investment in Melbourne and Sydney market with a focus on mixed-use development

mega-projects

• Opportunities within retail and residential markets remain subdued
• Moderate decline in revenue from Probuild - focus on project execution
• Melbourne and Sydney markets comprise 63% of building revenue
• Strong growth of 76% in Perth
• Reduced bidding activity in Queensland with focus centred on delivery of challenging project

CIVIL ENGINEERING

• Infrastructure markets remain buoyant supported by increased levels of public spending
• Activity in the Eastern region concentrated on loss-making WRU project
• 30% revenue growth in the Western region and solid profit contribution

AUSTRALIA

34 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ORDER BOOK

ORDER BOOK DOWN 16%

• Consolidation of building business and focused

project selection reflected in lower building

• rder book
• Building order book remains healthy with 77%

concentrated in key Melbourne and Sydney markets

• Reduced bidding activity in Eastern region of

the infrastructure business

• Australian order book comprises 58% of total
• rder book
• AU$341 million secured after the reporting

period ORDER BOOK BY SECTOR

• Decreasing residential activity
• Good growth in hotel and leisure sector
• Significant growth in proportion of

infrastructure in project portfolio

• Healthy project pipeline across most markets

At June 2019 At June 2018 % decline Building 21 21 71 717 23 997 (10) Infrastructure 5 5 59 599 8 569 (35) TOTAL 27 27 31 316 32 566 (16)

21% 28% 31% 20% 35% 10% 15% 23% 17%

Residential Retail

2019 2018

Commercial Mixed-use developments Infrastructure

ORDER BOOK BY SECTOR (%)

AUSTRALIA

UNITED KINGDOM

Paul Foley

35 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

36 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019 36 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

GEOGRAPHIC FOOTPRINT

MANCHESTER LONDON

OPERATING PROFIT (Rm) REVENUE (Rm)

3 628 2 394* 1 884

• 500

1 000 1 500 2 000 2 500 3 000 3 500 4 000 2019 2018

Byrne Group* Russells

103 (133)* 129 ( 200) ( 100)

• 100

200 2019 2018

Byrne Group* Russells

UNITED KINGDOM *For comparative purposes only. Byrne group accounted for as an associate until 30 June 2018

37 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

THE YEAR IN PERSPECTIVE

BYRNE GROUP

• London construction market offered sufficient opportunities in the year but softened over

the last quarter

• Successful restructuring of the business

› 46% increase in revenue, 34% decrease in overheads and reduced restructuring costs › Return to profitability in 2019

• No major under-performing contracts
• Operating profit of £6 million at a margin of 2.9%

RUSSELLS CONSTRUCTION

• Increasing population is underpinning growth in Manchester – considered one of Europe’s

fastest growing cities

• Residential and hotel sectors continued to drive record levels of real estate development
• Commercial office developments also on the increase
• Revenue exceeded £100 million for the first time but in line with expectations
• Operating profit of £7 million at a 7% margin

UNITED KINGDOM

38 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ORDER BOOK

ORDER BOOK UP 21%

• Combined UK operations reflect 100% of FY19

revenue secured for FY20

• Declining order book for Byrne Group reflects

softening markets

• Prior year included £60m project that was

cancelled

• Russells order book continues to grow amid

strong market conditions ORDER BOOK BY SECTOR

• Residential sector comprises over half of

future activity – predominantly apartments

• Growth in hotel sector – mainly in Manchester
• Commercial projects still offering
• pportunities in London and Manchester

At June 2019 At June 2018 % growth Byrne Group 3 3 95 959 6 446 (39) Russells Construction 3 3 85 851

• TOTAL

7 7 81 810 6 446 21

53% 16% 29% 2% 61% 17% 22%

Residential Commercial

2019 2018

Hotels Industrial and civil works

ORDER BOOK BY SECTOR (%)

UNITED KINGDOM

39 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

FINANCIAL REVIEW

Charles Henwood

40 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

KEY FINANCIAL INDICATORS

TARGET / GROWTH 2019 2018 Revenue growth % >10 15.9% 9.8% Operating profit margin % 3 – 4.5 1.4% 3.0% Return on capital employed % >20 12.4% 19.8% Cash and cash equivalents Rm 0% 5 952 5 992 Earnings per share cents (39)% 939 1 534 Headline earnings per share cents (34)% 932 1 415 Ordinary dividend per share cents (60)% 190 475

FINANCIAL REVIEW

41 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

KEY FINANCIAL NUMBERS AND RATIOS

(Rm) % change 2019 2018 Revenue 15.9 40 40 61 614 35 028 Operating profit before non-trading items (46.3) 561 561 1 045 Gain on loss of control of subsidiary

• 5

Loss on deemed disposal of equity accounted investment

• (58)

Gain on bargain purchase of subsidiary

• 102

Share-based payments expense (48 (48) (64) Share of losses and profit from equity accounted investments 52 52 (5) Net finance income 183 183 168 Profit before tax 748 748 1 195 Effective tax rate (%) 26 26 29

FINANCIAL REVIEW

42 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

CASHFLOW MOVEMENT

5 992 5 952 1 433 33 202 140 (327) (193) (867) (445) (16)

4 000 5 000 6 000 7 000 8 000

Cash & cash equivalents at the beginning

• f the year

Operating profit adjusted for non-cash items Working capital changes Net finance income Taxation paid Dividends paid Net cash flow from investing activities Net cash flow from financing activities Foreign currency translation effect Cash acquired Cash & cash equivalents at the end

• f the year

FINANCIAL REVIEW

43 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

NON CURRENT ASSETS

• Replacement CAPEX aimed at maintaining optimal performance of the fleet
• Expansion CAPEX for 2019 concentrated in Botswana to meet increased plant requirement

for mining infrastructure projects

CAPITAL EXPENDITURE APPROVED 2020 ACTUAL 2019 ACTUAL 2018 Replacement 232 294 294 283 Expansion 122 80 80 33 TOTAL 344 374 374 316 PROPERTY, PLANT AND EQUIPMENT (Rm) 2019 2018 Property, plant and equipment 1 1 93 937 1 883 Depreciation 283 283 240

FINANCIAL REVIEW

44 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

FINANCIAL POSITION

EQUITY ACCOUNTED INVESTMENTS ENTITY INDUSTRY COUNTRY OF OPERATION EFFECTIVE % CARRYING AMOUNT OF INVESTMENT SHARE OF PROFITS/(LOSSES) 2019 2018 CONCESSION INVESTMENTS: Gigajoule International Gas supply Mozambique 26.6% 167.4 18.2 .2 10.9 Gigajoule Power Power Mozambique 13.0% 155.4 33 33.8 .8 24.1 Dipalopalo Concession South Africa 27.5% 58.3

• DFMS Joint Venture

Serviced accommodation South Africa 14.6% 2.4 2.0 2.0 4.1 TOTAL 383.5 53 53.8 .8 39.1

*After-tax return on investment: Gigajoule 16.5% and Dipalopalo 15.5% (including interest payments)

CONSTRUCTION OPERATIONS: Edwin Construction Road /civil construction South Africa 49% 95.7 (0.4) (0.4) 9.6 iKusasa Rail SA Railway construction South Africa 49% 10.5 (5.4) (5.4) (6.7) IACS Construction South Africa 26% 3.8

• TOTAL

110.0 (5. (5.8) 2.9

FINANCIAL REVIEW

45 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

FINANCIAL POSITION

EQUITY ACCOUNTED INVESTMENTS ENTITY INDUSTRY COUNTRY OF OPERATION EFFECTIVE % CARRYING AMOUNT OF INVESTMENT SHARE OF PROFITS/(LOSSES) 2019 2018 PROPERTY DEVELOPMENTS: Catchu Trading^ Property development South Africa 50% 102.6

• Caulfield^

Property development Australia 30% 180.6

• The Glen Residential*

Property development Australia 20% 109.3

• TOTAL

^Development profits to realise in FY2020 * Development profit expected to realise in FY2022

Russell Homes* Building construction United Kingdom 31.7% 188.7 4.0 4.0

• *7% after-tax return on investment on existing schemes and 5% interest rate on R127m loan advanced

FINANCIAL REVIEW

46 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

Deferred tax asset consists of:

• Tax losses of R221m (2018: R276m)
• Timing differences of R508m (2018: R364m)

Current tax asset consists of:

• Foreign tax credits of R48m (2018: R81m)
• Taxation refundable of R119m (2018: R35m)
• Tax liability of R15m (2018: R11m)
• Effective interest in Probuild 87.8% (2018: 85%)
• Effective interest in WBHO Infrastructure 90.8% (2018: 90.1%)
• Effective interest in Russells 70%

TAX (Rm) 2019 2018 Net deferred tax asset 730 730 640 Net current tax asset 152 152 105

FINANCIAL POSITION

NCI MOVEMENT (Rm) DESCRIPTION % CHANGE CONSIDERATION Probuild Constructions (Aust) Pty Ltd Share buy-back 2. 2.0 42 Probuild Constructions (Aust) Pty Ltd Acquisition 0. 0.8 16 Russells Construction Limited Put option 10 10.0 88

FINANCIAL REVIEW

47 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

EFFECT OF NEW REPORTING STANDARDS (Rm) 2019 Total equity at 30 June 2018 6 6 01 019 Tender costs previously capitalised (IFRS 15) (51 51) Expected credit loss (IFRS 9) (85 85) Deferred tax adjustment 40 40 Non-controlling interest adjustment 11 11 Total equity at 1 July 2018 5 5 93 933

FINANCIAL POSITION

FINANCIAL REVIEW

48 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

ORDER BOOK AND PROJECT PIPELINE

Louwtjie Nel

49 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019 49 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

14% 14% 58% 58% 12% 12% 16% 16% 12% 12% 66% 66% 9% 9% 13% 13%

CONSOLIDATED ORDER BOOK

GROUP ORDER BOOK DOWN 4%

• 83% of FY19 revenue secured for FY20
• Growth in both the Building and civil engineering and Roads and earthworks

divisions’ order books

• 8% decrease in Australian order book reflects strategy
• Increase in United Kingdom due to inclusion of Russells – sufficient work for FY20

2019 2018

Building and civil engineering Australia

SEGMENT (Rm) AT T JU JUNE NE 2018 2018 AT T JU JUNE NE 2019 2019 2020 2020 2021 2021 Building and civil engineering 5 986 6 446 5 269 1 177 Roads and earthworks 4 164 5 730 4 334 1 396 Australia 32 565 27 316 18 215 9 102 United Kingdom 6 446 7 810 5 818 1 992 TOTAL 49 49 16 161 47 47 30 302 33 33 63 636 13 13 66 667

Roads and earthworks United Kingdom

ORDER BOOK BY SEGMENT (%)

ORDER BOOK

50 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019 50 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

22% 22% 58% 58% 3% 3% 17% 17% 18% 18% 66% 66% 3% 3% 13% 13%

CONSOLIDATED ORDER BOOK

ORDER BOOK BY GEOGRAPHY

• 22% increase in local order book – 77% of FY19 revenue secured for FY20
• 3% decline in the rest of Africa – activity concentrated in Botswana and Zambia

and Mozambique

• Australian component reduced from 66% to 58% with inclusion of Russells

within UK operations

• UK operations comprise 16% (2019: 13%) of group order book

2019 2018

South Africa Australia

GEOGRAPHY (Rm) AT T JU JUNE NE 2018 2018 AT T JU JUNE NE 2019 2019 2020 2020 2021 2021 South Africa 8 698 10 639 8 262 2 376 Rest of Africa 1 452 1 410 1 209 121 Australia 32 565 27 316 18 215 9 102 United Kingdom 6 446 7 810 5 818 1 992 TOTAL 49 161 47 302 33 636 13 667

Rest of Africa United Kingdom

ORDER BOOK BY GEOGRPAHY (%)

ORDER BOOK

51 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

PROJECT PIPELINE

SOUTH AFRICA Rm Bui uilding 26 26 94 940 Public 4 140 Private 22 800 Civil en engineering 11 11 59 590 Public 3 270 Private 8 320 Road

• ads

s and and eart earthworks 22 22 46 460 Public 18 400 Private 4 060 TOTAL 60 60 99 990 REST OF AFRICA Rm

Building and civil engineering

7 745 Roads and earthworks 14 645 TOTAL 22 390

44% 19% 37%

2019

Building Civil engineering Roads and earthworks

SOUTH AFRICA

42% 58%

2019

Public Private

SOUTH AFRICA

35% 65%

2019

Building and civil engineering Roads and earthworks

REST OF AFRICA

PROJECT PIPELINE

52 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

PROJECT PIPELINE

AUSTRALIA Rm Building 38 897 Infrastructure 4 355 TOTAL 43 43 25 252 UNITED KINGDOM Rm Byrne Group 18 386 Russells Construction 12 880 TOTAL 31 31 26 266

90% 10%

59% 41%

2019 2019

Building Infrastructure Byrne Group Russells Construction

AUSTRALIA UNITED KINGDOM

PROJECT PIPELINE

53 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

PROJECT PIPELINE

SUMMARY Rm Building and civil engineering 46 275 Roads and earthworks 37 105 Australia 43 252 United Kingdom 31 266 TOTAL 15 157 7 89 898

29% 24% 27% 20%

2019

Building Infrastructure Australia

SUMMARY

United Kingdom

PROJECT PIPELINE

54 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

OUTLOOK

SOUTH AFRICA

• Local market conditions likely to remain subdued over the short term
• WBHO has sufficient work secured to manage through this period
• Progress made by government in restoring sound governance within State-owned enterprises
• Multiple multi-billion rand projects recently announced by ACSA, Transnet, ESKOM and SANRAL

› ACSA – Cape Town and ORT Airport › Transnet – Durban Harbour and Tug Jetty › ESKOM – Majuba and Kendal power stations (bids submitted) › SANRAL – Announcement of R40 billion of road construction and rehabilitation projects (R8 billion imminent – N3/N2 Corridor)

• Re-emergence of large-scale public infrastructure will assist mid-term recovery of the local industry

REST OF AFRICA

• Shift toward Southern and Eastern African countries as West African markets remain subdued
• Gas-related infrastructure projects in Mozambique awarded with strong pipeline of potential new work
• Mining activity in Botswana currently upbeat

OUTLOOK

55 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

OUTLOOK

AUSTRALIA

• Market sentiment anticipated to remain positive over the mid-term, particularly Melbourne and Sydney
• Consolidation of building business and renewed focus on project selection and delivery to continue
• Public infrastructure spending will continue
• Lower risk construction-only infrastructure projects will be targeted

UNITED KINGDOM

• UK footprint firmly embedded
• Impact of BREXIT remains an unknown
• Increased opportunities in civil engineering sector for Byrne Group
• Russells Limited positioned for growth as the preferred contractor within a strong Manchester market

OUTLOOK

56 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

SUMMARY

• Business is well positioned with healthy 12 month order book
• Construction-focused business model
• Balance sheet strength maintained despite impact of WRU project
• Increased operational cash flows
• Dividend payment resumed
• Internal succession of executives successfully implemented
• Corporate culture of the business retained through continuity of management
• Green shoots within public sector spending

OUTLOOK

57 WBHO AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019

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-looking statements, by their very nature, contain known and unknown risks as well as other uncertainties, the
• utcome of which may have a material impact on the future predictions expressed or implied therein.

No assurance can be given that future-looking statements will prove to be correct. Furthermore, no obligation is undertaken by the group to update or revise any forward-looking statements contained within this presentation and investors are cautioned not to place any reliance thereon.

THANK YOU