Raubex Group Limited · JSE:RBX
Raubex — FY2012 Earnings Presentation
22 slides from Raubex's earnings presentation, May 14, 2012
Slide 1: Audited Annual Results for the year ended 29 February 2012
Audited Annual Results for the year ended 29 February 2012 14 May 2012
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 • Results in line with expectations • Strong performance from the Materials division • Disappointing performance from the Roads divisions – Competitive landscape and downward pressure on margins • Bitumen supply problems – Importing programme in place • Free State contracts • Gove
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenues up 10,7% to R5,03bn (2011: R4,55bn) • Operating profit down 19,8% to R531,5m (2011: R662,6m) • Group operating margin of 10,6% (2011: 14,6%) • HEPS down 26,2% to 177,2 cents per share (2011: 240,2 cents per share) • Cash flow from operations down 22,3% to R663,2
Slide 5: Income Statement
Income Statement Annual results 2012 Annual results 2011 (R’000) (R’000) Revenue 5,032,625 4,545,974 % growth 10,7% - EBIT 531,462 662,558 % growth (19,8%) - Profit before tax 519 427 649,105 Profit after tax 341 197 447,009 Share incentive scheme expenses* 13,488 (5,280) Operating margin 10,6% 14,6
Slide 6: Statement of Financial Position
Statement of Financial Position Annual results 2012 Annual results 2011 (R’000) (R’000) Non-current assets 2,129,726 2,083,210 Property, plant and equipment 1,353,753 1,276,133 Intangible assets 757,629 761,445 Other 18,344 45,632 Current assets 2,256,828 1,927,922 Inventory 153,157 126,333 Trade an
Slide 7: Statement of Cash Flows
Statement of Cash Flows Annual results 2012 Annual results 2011 (R’000) (R’000) Cash flows from operating activities Cash generated from operations 663,228 853,013 Finance income 29,353 30,422 Finance cost (41,388) (43,875) Dividend received 4,264 5,476 Taxation paid (154,701) (241,159) Net cash gen
Slide 8: Dividend Declaration
Dividend Declaration • Final cash dividend declared of 35 cents per share – Interim cash dividend of 25 cents per share • Relevant dates – Last day to trade cum dividend Friday, 1 June 2012 – Commence trading ex dividend Monday, 4 June 2012 – Record date Friday, 8 June 2012 – Payment date Monday, 11
Slide 9: Segmental Analysis
Segmental Analysis Raubex Business segments Raumix Roadmac Construction Consolidated Feb 2012 Revenue (R’000) 1,372,282 2,523,708 1,136,635 5,032,625 Operating profit (R’000) 211,161 229,376 90,925 531,462 Operating Margin 15,4% 9,1% 8,0% 10,6% Feb 2011 Revenue (R’000) 1,040,147 2,178,339 1,327,488
Slide 10: Roadmac
Roadmac • Revenue increased 15,9% to R2,52bn (2011: R2,18bn); 50,2% of total group revenue • Operating profit decreased 23,6% to R229,4m (2011 : R300,2m) • Operating margin decreased to 9,1% (2011 : 13,8%) • Capex of R71m (2011: R79,4m) • Order book of R2,282bn • Margins decreased more than expected
Slide 11: Roadmac Strategic Outlook
Roadmac Strategic Outlook • Short term (FY2013) – Contracting margins to remain in the current range – Competitive landscape to maintain pressure on margins • Long term – Expansion into SADC – Provincial and municipal expenditure needs to be expanded – General construction cycle needs to improve – T
Slide 12: Raubex Construction
Raubex Construction • Revenue decreased 14,4% to R1,14bn (2011: R1,33bn) • Operating profit decreased 50,6% to R90,9m (2011 : R184,2m) • Operating margin decreased to 8,0% (2011 : 13,9%); higher decrease than anticipated due to competition and Free State contracts • Capex of R27,6m (2011 : R71m) • O
Slide 13: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook • Short term (FY2013) – Order book secured; aggressively seeking long-term workflow – Margins expected to remain in current range; depending on outcome of Free State projects – Fast track application to the Competition Commission • Long term – Provincial expendi
Slide 14: Raumix
Raumix • Revenue increased 31,9% to R1,37bn (2011: R1,04bn) • Operating profit increased by 18,5% to R211,2m (2011: R178,2m) • Operating margin decreased to 15,4% (2011: 17,1%) • Capital expenditure of R188m (2011: R142,1m) • General construction and residential building markets remain weak; appears
Slide 15: Raumix Strategic Outlook
Raumix Strategic Outlook • Short term (FY2013) – Margins stabilising at around 15-18% – Increased activity in contract crushing and mining – Credit risk management • Long term – Demand dependent on continuous recovery in the residential and commodity sectors – Demand from low-cost housing programmes
Slide 16: Raubex International
Raubex International • Revenue up 45,2% to R890,4m (2011: R613,1m) – 17,7% of group total • Operating profit up 47,2% to R116,1m (2011 : R78,9m) – 21,8% of group total • Operating margin stable at 13% (2011 : 12,9%) • Major portions of Namibian contracts nearing completion • Increased mining activit
Slide 17: Group Order Book
Group Order Book Higher percentage of lower margin work International – continuing 18% SANRAL – 41% Private – 16% Other Parastatals – 5% Order Book R4,618bn Provincial – 9% Time Distribution Municipal – 11% FY 2013 R3,576bn FY 2014 R0,741bn FY 2015 R0,301bn
Slide 18: Major Projects Progress
Major Projects Progress N12 Tom Jones R33 – Amsterdam (Mpumalanga) R100 000 000 Est. completion date: May 2012 N12 – Tom Jones to Daveyton (Gauteng) R583 289 350 Est. completion date: August 2013
Slide 19: Major Projects Progress
Major Projects Progress N12 Tom Jones Malawi – Upgrade of Mchinji to Kawere road R504 – Bothaville to Leeudoringstad EUR 7 259 687 (Free State) Est. completion date: September 2012
Slide 20: Major Projects Progress
Major Projects Progress N12 Tom Jones Cliffdale (KwaZulu Natal) Bitumen decanting and storage yard
Slide 21: Major Projects Progress
Major Projects Progress Kusile Quarry (Mpumalanga) Tonnage: 1.8 Mts De Hoop Dam (Limpopo) R273 000 000 Tonnage: 2.9 Mts
Slide 22: Conclusion
Conclusion • Achieved satisfactory results given extremely challenging conditions • Strong balance sheet • International expansion continues; new geographies being explored • Short term order book stable at lower margins • Market dynamics have changed – Tolling controversy • Upturn in the cycle depe