Raubex Group Limited · JSE:RBX
Raubex — H1 2016 Earnings Presentation
32 slides from Raubex's earnings presentation, November 2015
Slide 1: Unaudited Interim Results
Unaudited Interim Results For the six months ended 31 August 2015
Slide 2: Agenda
Agenda • Group Financial Highlights • The Period in Review • Financial Review • Divisional Review • Order Book • Acquisitions • Major Projects Progress • Conclusion
Slide 3: Group Financial Highlights
Group Financial Highlights • Revenues up 4,3% to R3,89bn (H1 2015: R3,73bn) • Operating profit up 9,5% to R329,3m (H1 2015: R300,8m) • Group operating profit margin of 8,5% (H1 2015: 8,1%) • HEPS up 5,3% to 107,0 cps (H1 2015: 101,6 cps) • Cash flow from operations down 30,2% to R375,0m (H1 2015: R5
Slide 4: The Period in Review
The Period in Review • Consistent results under challenging conditions • Bitumen supply affected by unplanned refinery shutdowns • Strong results from the Materials Division • Positive contributions from acquisitions; all bedded down well • Roads Division executing well; better quality order book •
Slide 5: Income Statement
Income Statement Interim results Interim results Annual results 2016 2015 2015 (R’000) (R’000) (R’000) Revenue 3 887 747 3 725 793 7 245 259 % growth 4,3% 15,7% 14,5% EBIT 329 251 300 766 622 171 % growth 9,5% 9,6% 15,2% Profit before tax 303 216 298 487 606 637 Profit after tax 214 657 211 597 428
Slide 6: Statement of Financial Position – Assets
Statement of Financial Position – Assets Interim results Interim results Annual results 2016 2015 2015 (R’000) (R’000) (R’000) Non-current assets 3 403 002 2 930 060 3 240 794 Property, plant and equipment 2 271 755 2 012 857 2 171 829 Intangible assets 829 814 784 524 795 098 Investment in associat
Slide 7: Statement of Financial Position – Equity and Liabilities
Statement of Financial Position – Equity and Liabilities Interim results Interim results Annual results 2016 2015 2015 (R’000) (R’000) (R’000) Equity 3 687 271 3 400 859 3 533 417 Attributable to shareholders 3 563 153 3 280 692 3 422 629 Non-controlling interest 124 118 120 167 110 788 Non-current
Slide 8: Statement of Cash Flows
Statement of Cash Flows Interim results Interim results Annual results 2016 2015 2015 (R’000) (R’000) (R’000) Cash flows from operating activities Cash generated from operations 375 002 537 384 785 053 Finance costs – net (21 316) (2 279) (11 380) Taxation paid (72 674) (84 743) (188 848) Net cash g
Slide 9: Segmental analysis
Segmental analysis Road surfacing and rehab Road Business segments Materials (incl Tosas) construction Raubex Infra Consolidated August 2015 Revenue (R’000) 1 197 363 1 350 888 778 507 560 989 3 887 747 Operating profit (R’000) 220 325 40 224 57 174 11 528 329 251 Operating margin 18,4% 3,0% 7,3% 2,
Slide 10: Dividend Declaration
Dividend Declaration • Interim cash dividend declared of 36 cents per share • 3 X cover policy • Relevant dates • Last day to trade cum dividend - Friday, 27 November 2015 • Commence trading ex dividend - Monday, 30 November 2015 • Record date - Friday, 4 December 2015 • Payment date - Monday, 7 Dec
Slide 11: Materials
Materials • Revenue increased 23,7% to R1,20bn (H1 2015: R968,2m) • Operating profit increased 35,6% to R220,3m (H1 2015: R162,5m) • Operating margin increased to 18,4% (H1 2015: 16,8%) • Capital expenditure of R171,6m (H1 2015: R204,8m) • Order book of R1,72bn (H1 2015: R1,58bn) • Strong performanc
Slide 12: Road Surfacing and Rehabilitation
Road Surfacing and Rehabilitation • Revenue decreased 9,8% to R1,35bn (H1 2015: R1,50bn*) • Operating profit decreased 55,4% to R40,2m (H1 2015: R90,3m*) • Operating margin decreased to 3,0% (H1 2015: 6,0%*) • Capex of R55,8m (H1 2015: R25,4m*) • Order book of R2,83bn (H1 2015: R1,91bn*) • Challengi
Slide 13: Road Construction and Earthworks
Road Construction and Earthworks • Revenue flat at R778,5m (H1 2015: R774,9m) • Operating profit increased 180,3% to R57,2m (H1 2015: R20,4m) • Operating margin increased to 7,3% (H1 2015: 2,6%) (H2 2015: 5,0%) • Capex of R29,4m (H1 2015: R19,0m) • Order book secured of R2,74bn (H1 2015: R3,03bn) •
Slide 14: Raubex Infrastructure
Raubex Infrastructure • Revenue increased 15,7% to R561,0m (H1 2015: R484,7m) • Operating profit decreased 58,2% to R11,5m (H1 2015: R27,5m) • Operating margin decreased to 2,1% (H1 2015: 5,7%) • Capital expenditure of R21,7m (H1 2015: R24,6m) • Order book of R945,9m (H1 2015: R1,02bn) • Slow start
Slide 15: Raubex International
Raubex International • Revenue increased 105,0% to R614,3m (H1 2015: R299,7m) • 15,8% of group total • Operating profit increased 82,2% to R88,4m (H1 2015: R48,5m) • 26,9% of group total • Operating margin decreased to 14,4% (H1 2015: 16,2%) • Order book of R2,31bn (H1 2015: R2,23bn); 28,1% of group
Slide 16: Order book
Order book ORDER FY15BOOK Divisional Operating Profit FY 2015 H1 2016 SANRAL International SANRAL International 23% 25% 27% 28% Parastatal 14% Private Parastatal 20% 15% Private 19% Provincial Provincial 7% 10% Municipal 6% Municipal 6% Timing R8,679bn Timing R8,238bn FY 2016 R5,966bn FY 2016 R3,521
Slide 17: Acquisitions: Belabela Quarries
Acquisitions Belabela Quarries • Revenue (6 months) – R45,7m • Net profit (6 months) – R9,1m • Purchase price – R43m • Percentage acquired – 74% • Effective - 18 March 2015
Slide 18: Major Projects Progress
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Slide 19: SANRAL: N1 Bloemfontein bypass – R614m
SANRAL: N1 Bloemfontein bypass – R614m
Slide 20: SANRAL: N8 Thaba Nchu to Sannaspos – R463m
SANRAL: N8 Thaba Nchu to Sannaspos – R463m
Slide 21: SANRAL: N5 Harrismith to Kestell - R308m
SANRAL: N5 Harrismith to Kestell - R308m
Slide 22: TRAC N4 Toll: New Carriageway - R377m
TRAC N4 Toll: New Carriageway - R377m
Slide 23: N1 Waterfall Development Overpass Bridge – R91m
N1 Waterfall Development Overpass Bridge – R91m
Slide 24: Zambia RDA: Mpika to Mfuwe – ZMW 541m
Zambia RDA: Mpika to Mfuwe – ZMW 541m
Slide 25: Zambia RDA: Safwa to Chinsali – ZMW 265m
Zambia RDA: Safwa to Chinsali – ZMW 265m
Slide 26: Namibia Roads Authority: Rosh Pinah to Oranjemund – R559m
Namibia Roads Authority: Rosh Pinah to Oranjemund – R559m
Slide 27: Tschudi Copper Mine: Purpose built plant and crushing contract – R524m
Tschudi Copper Mine: Purpose built plant and crushing contract – R524m
Slide 28: Namdeb: Seawall maintenance contract
Namdeb: Seawall maintenance contract
Slide 29: Tom Burke Solar Farm – R30m
Tom Burke Solar Farm – R30m
Slide 30: Prieska Solar Farm – R94m
Prieska Solar Farm – R94m
Slide 31: Conclusion
Conclusion • Quality short term order book secured • Continued focus on execution and selective tendering for replacement work • Healthy volume of road work out for tender; but conditions still very competitive • Increasing proportion of provincial work • Successful revenue stream diversification •
Slide 32: Q&A
Q&A