Raubex Group Limited · JSE:RBX
Raubex — FY2011 Earnings Presentation
20 slides from Raubex's earnings presentation, May 16, 2011
Slide 1: Annual Results for the year ended 28 February 2011
RAUBEX GROUP LIMITED Annual Results for the year ended 28 February 2011 16 May 2011
Slide 2: Agenda
Agenda • The Year in Review • Group Financial Highlights • Financial Review • Divisional Review • Order Book • Major Projects Progress • Conclusion
Slide 3: The Year in Review
The Year in Review • Satisfactory results despite challenging trading conditions • All three divisions continued to perform adequately • Margins decreasing due to competition • Working capital improvements • Bitumen supply concerns • Strong Government tender volumes; weak pricing • International dri
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenues down 0,8% to R4,55bn (2010: R4,58bn) • Operating profit down 25,3% to R662,6m (2010: R887,3m) • Group operating margin of 14,6% (2010: 19,4%) • HEPS down 25,8% to 240,2 cents per share (2010: 323,8 cents per share) • Cash flow from operations up 7,6% to R853m (2
Slide 5: Income Statement
Income Statement Annual results 2011 Annual results 2010 (R’000) (R’000) Revenue 4,545,974 4,582,883 % growth (0,8%) - EBIT 662,558 887,263 % growth (25,3%) - Profit before tax 649,105 858,576 Profit after tax 447,009 592,307 Share incentive scheme expenses* (5,280) 12,838 Operating margin 14,6% 19,
Slide 6: Statement of Financial Position
Statement of Financial Position Annual results 2011 Annual results 2010 (R’000) (R’000) Non-current assets 2,083,210 2,003,573 Property, plant and equipment 1,276,133 1,243,360 Intangible assets 761,445 723,824 Other 45,632 36,389 Current assets 1,927,922 1,822,837 Inventory 126,333 123,983 Trade an
Slide 7: Statement of Cash Flows
Statement of Cash Flows Annual results 2011 Annual results 2010 (R’000) (R’000) Cash flows from operating activities Cash generated from operations 853,013 793,099 Finance income 30,422 36,837 Finance cost (43,875) (65,544) Dividend received 5,476 4,139 Taxation paid (241,159) (300,122) Net cash gen
Slide 8: Dividend Declaration
Dividend Declaration • Final cash dividend declared of 68 cents per share – Interim cash dividend of 32 cents per share • Relevant dates – Last day to trade cum dividend Friday, 3 June 2011 – Commence trading ex dividend Monday, 6 June 2011 – Record date Friday, 10 June 2011 – Payment date Monday, 1
Slide 9: Segmental Analysis
Segmental Analysis Raubex Business segments Raumix Roadmac Construction Consolidated Feb 2011 Revenue (R’000) 1,040,147 2,178,339 1,327,488 4,545,974 Operating profit (R’000) 178,203 300,187 184,168 662,558 Operating Margin 17,1% 13,8% 13,9% 14,6% Feb 2010 Revenue (R’000) 1,020,927 1,976,883 1,585,0
Slide 10: Roadmac
Roadmac • Revenue increased 10,2% to R2,18bn (2010: R1,98bn); 47,9% of total Group revenue • Operating profit decreased 26% to R300,2m (2010: R405,4m) • Operating margin decreased to 13,8% (2010: 20,5%) • Capex of R79,4m (2010: R79,5m) • Order book of R2,058bn • Increased competition requiring more
Slide 11: Roadmac Strategic Outlook
Roadmac Strategic Outlook • Short term (FY2012) – Margins to remain under pressure; expected to decrease by 2% – Tender activity vs. pricing pressure • Long term – Economic growth necessary to sustain government spending – Expansion into SADC – Provincial and municipal expenditure needs to be sustai
Slide 12: Raubex Construction
Raubex Construction • Revenue decreased 16,3% to R1,33bn (2010: R1,59bn) • Operating profit decreased 30% to R184,2m (2010: R263,2m) • Operating margin decreased to 13,9% (2010: 16,6%) • Capex of R71m (2010: R73,9m) • Order book secured – R1,353bn • New Free State provincial work underway; funding c
Slide 13: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook • Short term (FY2012) – Order book secured; aggresively seeking long-term workflow – Margins expected to decrease by 2%; dependent on Free State projects controversy – Fast Track application to the Competition Commission • Long term – Economic growth necessary t
Slide 14: Raumix
Raumix • Revenue increased 1,9% to R1,04bn (2010: R1,02bn) • Operating profit decreased by 18,5% to R178,2m (2010: R218,7m) • Operating margin decreased to 17,1% (2010: 21,4%) • Capital expenditure of R142,1m (2010: R99m) • General construction and residential building markets remain weak • Mining a
Slide 15: Raumix Strategic Outlook
Raumix Strategic Outlook • Short term (FY2012) – Margins stabilising at around 15-18% – Increased activity in contract crushing – Mining activities improving – Credit risk management • Long term – Demand dependent on recovery in the residential and commodity sectors – Demand from low-cost housing pr
Slide 16: Raubex Construction International
Raubex Construction International • Revenue up 20,9% to R613,1m (2010: R507m) – 13,5% of Group total • Operating profit up 121,4% to R78,9m (2010 : R35,6m) – 11,9% of Group total • Operating margin increased to 12,9% (2010 : 7%) • Namibian work progressing well • Malawi progressing well • Zambia pro
Slide 17: Group Order Book
Group Order Book International – 14.3% SANRAL – 36.2% Private – 17.3% • Higher percentage of lower margin work going forward Other • Poor margins vs. new Parastatals – 7.1% Provincial – margins; new normal? 15.6% Municipal – 9.5% Order Book R4,376bn Time Distribution FY 2012 R3,784bn FY 2013 R0,460b
Slide 18: Major Projects Progress
Major Projects Progress Namibia – Rundu to Elundu R1 001 000 000 Cape Town – R300 Link Road To be completed Dec 2011 R525 000 000
Slide 19: Major Projects Progress
Major Projects Progress GFIP - R21 R882 960 000 Completed Dec 2010
Slide 20: Conclusion
Conclusion • Achieved satisfactory results given extremely challenging conditions • Strong balance sheet • Sustained strong cash generation • International expansion continues; new geographies being explored • Short term order book stable at lower margins • N1N2 Winelands Project down to two consort