Raubex Group Limited · JSE:RBX
Raubex — FY2008 Earnings Presentation
25 slides from Raubex's earnings presentation, May 19, 2008
Slide 1: Annual Results Presentation
Annual Results Presentation for the year ended 29 February 2008 19 May 2008
Slide 2: Agenda
Agenda The Year in Review Highlights Financial Review Divisional Review Acquisitions Corporate Information Current Projects Prospects Conclusion
Slide 3: CEO statement and company background
“We are very pleased with the past year’s performance, both operationally and financially. “Through our strategy of acquisitive and organic growth, we have transformed into a sizeable industry player with the skills and capacity to grow our order book and meet the increasing demand for our line of w
Slide 4: The Year in Review
The Year in Review Successful listing on 20 March 2007 Strong share price performance, mid-cap position Completion of five value enhancing acquisitions Solid performance by all three divisions; in line with expectations Business positioned for continued solid growth Effects of rain Eskom
Slide 5: Group Financial Highlights
Group Financial Highlights Revenue up 79,4% to R2,14bn (2007: R1,19bn) Operating profit up 121,7% to R431,3m (2007:R194,5m) Group operating margin up 23,9% to 20,2% (2007: 16,3%) HEPS up 116,2% to 180,1 cps (2007: 83,3 cps) Strong cash flow from operations up 125,7% to R448,8m (2007: R198,9m) Capex
Slide 6: Group Operational Highlights
Group Operational Highlights Operating margins Roadmac 18,7% Raubex Construction 18,3% Raumix 28,2% Acquisitions finalised Space Construction B&E International Thaba Bosiu Construction & Zamori Construction Queenstown & Aliwal Quarries Bonn Plant Hire & Akasia Road Surfacing Solid or
Slide 7: Financial Review – Income Statement
Financial Review – Income Statement Audited Audited Pro forma Pro forma Feb 2008 Feb 2007 Feb 2008 Feb 2007 Revenue (R’000) 2,135,778 1,190,860 2,748,605 1,600,920 % growth 79,4% 58,3% 71,7% - EBIT (R’000) 431,760 200,763 553,313 274,234 % growth 115,1% 146,7% 101,8% - Profit before tax (R’000) 417,
Slide 8: Financial Review – Balance Sheet
Financial Review – Balance Sheet (R’000) Feb 2008 Feb 2007 Non-current assets 882,132 326,197 Property, plant and equipment 670,837 290,398 Intangible assets 198,939 16,533 Other 12,356 19,266 Current assets 1,165,049 420,922 Inventory 50,440 17,628 Receivables 380,732 275,763 Construction contracts
Slide 9: Financial Review – Cashflow
Financial Review – Cashflow (R ‘000) Feb 2008 Feb 2007 Cash flows from operating activities Cash generated from operations 448,814 198,881 Finance income 12,997 16,815 Finance costs (27,986) (12,296) Taxation paid (43,777) (66,524) Net cash from operating activities 390,048 136,876 Cash flows from i
Slide 10: Dividend Declaration
Dividend Declaration Final dividend declared – 40 cps Total dividend of 60 cents per share 3x cover maintained in-line with the pre-listing guidance Relevant dates Last day to trade cum dividend Friday, 6 June 2008 Commence trading ex dividend Monday, 9 June 2008 Record date Friday, 13 Jun
Slide 11: Financial Review – Segmental Analysis
Financial Review – Segmental Analysis Segmental Analysis Raubex (R’000) Raumix Roadmac Construction Consolidated Feb08 Revenue 362,916 1,252,902 519,960 2,135,778 Operating profit 102,240 233,922 95,120 431,282 Operating Margin 28,2% 18,7% 18,3% 20,2% Feb 07 Segmental Revenue 27,780 685,150 477,930
Slide 12: Roadmac
Roadmac Revenue increased 82,9% to R1,25bn (2007: R685,2m) Operating profit increased 73,6% to R233,9m (2007: R134,7m) Operating margin decrease to 18,7% (2007: 19,7%) due to the unusually high number of rain days 58,7% of total group revenue Capex of R76,2m Order book near capacity – R1,26bn Manufa
Slide 13: Roadmac Strategic Outlook
Roadmac Strategic Outlook Developing into an ‘annuity’ business Work pipeline growth in-line with road infrastructure spend Margins to stabilise and remain flat Strategic acquisition of Bonn Plant Hire & Akasia Road Surfacing
Slide 14: Raubex Construction
Raubex Construction Revenue up 8,8% to R520m (2007: R477,9m) Operating profit up 96,8% to R95m (2007: R48,3m) Operating margin improved to 18,3% (2007: 10,1%) Lower margin contracts completed Large work pipeline anticipated Order book at R1,47bn Capex of R67,6m Capacity increase through acquisitive
Slide 15: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook Continued strong demand and pipeline over the next 5-7 years Opportunity to increase margins slightly Increased focus on PPP concessions Closely monitoring the rest of Africa
Slide 16: Raumix
Raumix Revenue increased 1206% to R362,9m (2007: R27,8m) Operating profit up 794% to R102,2m (2007: R11,4m) Operating margin decrease to 28,2% (2007: 41,2%) Acquisitions of B&E International and Queenstown & Aliwal Quarries completed B&E production contribution Excl. B&E (Mts) Incl. B&E (Mts) Contra
Slide 17: Raumix Strategic Outlook
Raumix Strategic Outlook B&E and SPH significantly increase contract mining exposure; strong demand in this segment Slight slowdown in demand from residential developers offset by increase in demand from civil contractors Continually seeking selective acquisition targets Margin decrease following ac
Slide 18: Raubex Construction International
Raubex Construction International Revenue flat at R144,9m (2007: R143,6m) 6,8% of Group total Operating profit increase by 200% to R23,5m 5,5% of Group total Operating margin improved to 16,3% Tremendous work pipeline Cautious growth approach maintained Gaining experience for future African expa
Slide 19: Acquisitions
Acquisitions Space Construction - Raubex Construction - R50m - Capacity/CIDB - KZN geographic expansion Thaba Bosiu & Zamori Construction - Raubex Construction - R100m - Capacity/CIDB - Young & vibrant management team B & E International - Raumix division - R513m - Increase mining/contract crushing
Slide 20: Acquisitions
Acquisitions Queenstown & Aliwal Quarries - Raumix division - R34m - Eastern Cape footprint - Secure supply Bonn Plant Hire & Akasia Road Surfacing - Roadmac division - R117m - Gauteng capacity building - Fleet expansion and asphalt manufacturing - Secure supply
Slide 21: Shareholder Spread at Year End
Shareholder Spread at Year End
Slide 22: Current Projects
Current Projects Upington / Bloemfontein / Port Elizabeth Airports N1 – Springfontein to Bethulie East London access road Zambia – R520m total contracts awarded to date
Slide 23: Prospects
Prospects Large budgets allocated by governments Country roads upgrade programme R23bn allocated for Phase 1 of Gauteng freeway scheme (R55bn total spend)* - 180km upgraded by 2010 - Total freeway network of 561km by 2018 R70bn allocated for upgrade and maintenance until 2011* PPPs 47 toll gat
Slide 24: Conclusion
Conclusion Strong financial performance Business transformed into a sizeable and credible industry player Entrepreneurial spirit intact Balance of acquisitive and organic growth Accelerated demand for our line of work Capacity created to grow order book Capacity flexibility
Slide 25: Q&A
Q&A