Raubex Group Limited · JSE:RBX
Raubex — FY2019 Earnings Presentation
41 slides from Raubex's earnings presentation, May 2019
Slide 1: Audited Results for the year ended 28 February 2019
AUDITED RESULTS for the year ended 28 February 2019 Raubex Group Limited (Incorporated in the Republic of South Africa) Registration number 2006/023666/06 Share code: RBX ISIN: ZAE000093183 www.raubex.com (“Raubex” or the “group”)
Slide 2: Agenda
Agenda • The Year in Review • Group Financial Highlights • Divisional Review • Order Book • Major Projects Progress • Conclusion Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 1
Slide 3: The Year in Review
The Year in Review • Overall results are weak due to tough trading conditions in the South African market • Materials division contributing most of Group operating profit • Stable conditions in the mining sector • Some volume growth in commercial quarries from a low base • Challenging conditions per
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenue down 0,3% to R8,52bn (2018: R8,54bn) • Operating profit down 69,2% to R207,0m (2018: R671,9m) • HEPS down 75,1% to 57,0 cps (2018: 228,6 cps) • The following two items had a material impact on the results for the year • Zambia accounts receivable present value ch
Slide 5: Income Statement
Income Statement Annual results 2019 Annual results 2019 before Zambia charge Annual results 2018 (R’000) and asphalt goodwill (R’000) impairment (R’000) Revenue 8 519 142 8 519 142 8 542 247 % growth (0,3%) (0,3%) (5,1%) EBIT 207 045 375 263 671 913 % growth (69,2%) (44,2%) (14,0%) Operating margin
Slide 6: Statement of Financial Position: Assets
Statement of Financial Position Assets Annual results 2019 Annual results 2018 (R’000) (R’000) Non-current assets 3 831 886 3 655 822 Property, plant and equipment 2 535 579 2 410 165 Intangible assets 1 037 605 947 806 Investment in associates and JV’s 42 566 111 789 Deferred tax asset 94 684 39 61
Slide 7: Statement of Financial Position: Equity and Liabilities
Statement of Financial Position Equity and Liabilities Annual results 2019 Annual results 2018 (R’000) (R’000) Equity 4 327 124 4 197 968 Attributable to shareholders 4 064 852 4 040 728 Non-controlling interest 262 272 157 240 Non-current liabilities 880 871 923 080 Borrowings 362 989 411 284 Defer
Slide 8: Statement of Cash Flows
Statement of Cash Flows Annual results 2019 Annual results 2018 R’000 R’000 Cash flows from operating activities Cash generated from operations 788 924 1 039 786 Finance costs – net (9 170) (15 413) Taxation paid (163 926) (177 950) Net cash generated from operating activities 615 828 846 423 Cash f
Slide 9: Segmental Analysis
Segmental Analysis Roads and Operating segments Materials Earthworks Infrastructure Consolidated February 2019 Revenue (R’000) 2 750 801 3 634 494 2 133 847 8 519 142 Operating profit (R’000) 358 543 (245 796)* 94 298 207 045 Operating margin 13,0% (6,8%) 4,4% 2,4% February 2018 Revenue (R’000) 2 58
Slide 10: Dividend Declaration
Dividend Declaration • Final cash dividend of 22 cents per share declared • Total dividend of 34 cents per share for the year • The 3 times cover policy has been applied to earnings before taking into account the Zambia debtor charge and goodwill impairment due to their non cash nature • Relevant da
Slide 11: Materials Division
Materials Division • Revenue increased 6,5% to R2,75bn (2018: R2,58bn) • Operating profit decreased 2,2% to R358,5m (2018: R366,4m) • Operating margin decreased to 13,0% (2018: 14,2%) • Capital expenditure of R260,6m (2018: R225,8m) • Order book of R1,93bn (2018: R1,87bn) • Stable conditions experie
Slide 12: Roads and Earthworks Division
Roads and Earthworks Division • Revenue decreased 20,7% to R3,63bn (2018: R4,58bn) • Operating profit decreased 184,9% to a loss of R245,8m (2018: R289,5m operating profit) • Items impacting results include the Zambia debtor charge of R116,7m, the goodwill impairment on the asphalt cash generating u
Slide 13: Infrastructure Division
Infrastructure Division • Revenue increased 55,1% to R2,13bn (2018: R1,38bn) • Operating profit increased 488,5% to R94,3m (2018: R16,0m) • Operating margin increased to 4,4% (2018: 1,2%) • Capital expenditure of R99,3m (2018: R31,8m) • Includes the acquisition of new offices and workshop for Westfo
Slide 14: International
International • Revenue increased 37,4% to R1,53bn (2018: R1,11bn) • Operating profit decreased 33,0% to R126,3m (2018: R188,5m) • Excluding the R116,7m charge in Zambia, operating profit increased by 29,0% to R243,1m • Operating margin decreased to 8,3% (2018: 16,9%) • Excluding the R116,7m charge
Slide 15: Order Book
Order Book ORDER BOOK FY15 Divisional Operating Profit FY 2018 FY 2019 SANRAL SANRAL International 3% 12% 14% Parastatal 18% International 31% Parastatal 15% Provincial Provincial 4% 15% Private 42% Municipal 8% Municipal 8% Private 30% Timing R8,188bn Timing R8,010bn FY 2019 R5,598bn FY 2020 R5,975
Slide 16: Order Book History
Order Book History 10 000 000 9 000 000 8 000 000 7 000 000 TOTAL ORDER BOOK 100% STACKED LINE 6 000 000 (R’000) 5 000 000 4 000 000 3 000 000 2 000 000 1 000 000 - Feb 2010 Feb 2011 Feb 2012 Feb 2013 Feb 2014 Feb 2015 Feb 2016 Feb 2017 Feb 2018 Feb 2019 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'0
Slide 17: Major Projects Progress
Notes: Major Projects Progress
Slide 18: B&E International: Tschudi Copper Mine, Namibia
B&E International: Tschudi Copper Mine, Namibia Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 17
Slide 19: B&E International: Tschudi Copper Mine, Namibia
B&E International: Tschudi Copper Mine, Namibia Notes:
Slide 20: B&E International: Tschudi Copper Mine, Namibia
B&E International: Tschudi Copper Mine, Namibia Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 19
Slide 21: SPH: Platinum mining operation, North West Province
SPH: Platinum mining operation, North West Province Notes:
Slide 22: SPH: Crushing for platinum mine, North West Province
SPH: Crushing for platinum mine, North West Province Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 21
Slide 23: B&E International: Crushing for coal mine, Mpumalanga Province
B&E International: Crushing for coal mine, Mpumalanga Province Notes:
Slide 24: Raubex Construction: N4 Bakwena Platinum Corridor
Raubex Construction: N4 Bakwena Platinum Corridor Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 23
Slide 25: Tosas: N4 Bakwena Platinum Corridor
Tosas: N4 Bakwena Platinum Corridor Notes:
Slide 26: Raubex Construction: Upgrading of Kroonstad Traffic Control Centre on N1 for SANRAL
Raubex Construction: Upgrading of the Kroonstad Traffic Control Centre on N1 for SANRAL Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 25
Slide 27: Raubex Renovo: Preller Mall Development, Bloemfontein
Raubex Renovo: Preller Mall Development, Bloemfontein Notes:
Slide 28: Raubex Building: Riverside View BNG housing units
Raubex Building: Riverside View BNG housing units Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 27
Slide 29: Raubex Building: Clayville GAP housing units
Raubex Building: Clayville GAP housing units Notes:
Slide 30: Raudev: Woodwind Estates Development
Raudev: Woodwind Estates Development: 871 residential opportunities Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 29
Slide 31: Raubex Building: C-Max high detention security facility upgrade
Raubex Building: Upgrading existing C-Max facility into a high detention security facility Notes:
Slide 32: Raubex Building: C-Max high detention security facility upgrade
Raubex Building: Upgrading existing C-Max facility into a high detention security facility Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 31
Slide 33: Raubex Building: Helen Joseph Hospital nurses residence repairs
Raubex Building: Restorative repairs for nurses residence at Helen Joseph Hospital Notes:
Slide 34: Raubex Renovo: Onomo Hotel in Douala, Cameroon
Raubex Renovo: Onomo Hotel in Douala, Cameroon Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 33
Slide 35: Raubex Renovo: Douala Grand Mall, Cameroon
Raubex Renovo: Douala Grand Mall, Cameroon Notes:
Slide 36: Raubex Renovo: Douala Grand Mall, Cameroon
Raubex Renovo: Douala Grand Mall, Cameroon Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 35
Slide 37: Raubex Renovo: Douala Grand Mall, Cameroon
Raubex Renovo: Douala Grand Mall, Cameroon Notes:
Slide 38: Westforce Construction: Process Building for Beenyup AWRP Project
Westforce Construction: Process Building for the Beenyup AWRP Project Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 37
Slide 39: Westforce Construction: Security Fence Upgrade for Western Power
Westforce Construction: Security Fence Upgrade and Associated Works for Western Power Notes:
Slide 40: Westforce Construction: New offices and workshop, Welshpool
Westforce Construction: New offices and workshop, 73-75 Dowd Street, Welshpool, WA 6106 Notes: Raubex Group Limited Audited results for the year ended 28 February 2019 39
Slide 41: Conclusion
Conclusion • Materials division will continue to diversify the Group from the construction sector • Overall conditions in the materials division are expected to remain stable in the short term • The growing infrastructure division will diversify the Group from the “road” construction sector • Good o