WILSON BAYLY HOLMES-OVCON LIMITED - Macquarie Group Limited: CEO construction conference and market update

Macquarie Group Limited: CEO construction conference and market update

Wilson Bayly Holmes-Ovcon Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1982/011014/06)
Share code: WBO ISIN: ZAE000009932
(“WBHO”)


MACQUARIE GROUP LIMITED (“MACQUARIE ”): CEO CONSTRUCTION CONFERENCE AND
MARKET UPDATE



CEO CONSTRUCTION CONFERENCE

Shareholders are advised that Macquarie is hosting a CEO Construction
Conference on Tuesday, 6 December 2016 at which the management of the
Company will be submitting a presentation providing a market update.
The presentation will be made available on the Company’s website at
www.wbho.co.za.


MARKET UPDATE

SOUTH AFRICA

BUILDING:
• Healthy volumes of work on hand overall
• Good order book replenishment
• Retail continues to taper
• Sufficient opportunities in the market - residential and commercial
• Western Cape and Eastern Cape markets have softened

CIVIL ENGINEERING:
• Market remains quiet
• Early works at Saldanha Oil Tanks have commenced • Anticipate some
mining infrastructure projects to materialise in Q4
• Some large infrastructure bids in preparation


REST OF AFRICA
BUILDING:
• 1st commercial office project in Ghana progressing well
• 3 additional projects in Ghana targeted
• Opportunities in additional geographies being explored

CIVIL ENGINEERING:
• Smaller mining infrastructure projects in Zambia ongoing
• Expanding client base and footprint in-country
• Renewable energy projects present potential opportunities



SOUTH AFRICA

ROADS AND EARTHWORKS:
• 26% improvement in order book from June to Sept
• Further R1,2 billion secured post Sept
• A number of private sector projects awarded – potential for further
work
• Additional road work projects anticipated in Q3 and Q4
• Opportunities in Pipeline market although fewer large projects
available - high levels of competition remain
• Additional houses awarded on existing rural housing projects -
submitted tenders on new developments awaiting adjudication


REST OF AFRICA

ROADS AND EARTHWORKS:
• Botswana market remains quiet – adept at securing and executing
smaller mining infrastructure projects
• Mozambique market has slowed – Section 16 of EN4 recently secured
• Smaller mining infrastructure projects in Ghana continue to tick over
– some larger projects expected to materialize in H2
• New $9.5 million project awarded in Guinea with potential for
additional scope
• Opportunities in new geographies also being pursued



AUSTRALIA

BUILDING:
• Building order book remains at high levels
• Growth in other states reducing reliance on Victoria
• Focus on project execution for FY17
• One loss-making project in Brisbane – will affect Australian margin
for H1

CIVIL ENGINEERING:
• Strategy targeting public infrastructure projects in metropolitan
cities slowly gaining traction
• Sector diversification in Western Australia
• Order book improving




Johannesburg
6 December 2016
Sponsor: Investec Bank Limited

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