Raubex Group Limited · JSE:RBX
Raubex — FY2016 Earnings Presentation
41 slides from Raubex's earnings presentation, Feb 29, 2016
Slide 1: Audited annual results for the year ended 29 February 2016
Audited annual results for the year ended 29 February 2016 Raubex Group Limited (Incorporated in the Republic of South Africa) Registration number 2006/023666/06 JSE share code: RBX ISIN: ZAE000093183 (“Raubex” or the “Group”) www.raubex.com
Slide 2: Agenda
Agenda • Company Overview • The Year in Review • Group Financial Highlights • Divisional Review • Order Book • Acquisitions • Major Projects Progress • Conclusion Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 1
Slide 3: Company overview
Company overview • Raubex was founded in 1974 • Started as a road construction and bridge building company • Listed on the JSE in March 2007 under Construction and Materials sector • Substantial growth through strategic acquisitions post listing • Operates a vertically integrated model through a num
Slide 4: Business segments
Business segments Business segments Cross section of a road Materials Materi Road Commer Commercial quarries construction ion Contract crushing Material handling and and earthworks hworks processing for mines processi Infrastructure development Electricity Road surfacing urfacing Water Housing and r
Slide 5: Full road construction cycle
Full road construction Businesscycle segments Road construction and earthworks Road surfacing and rehab Earthworks 1 Mobile crushing 2 Compaction 3 Structures 4 Milling 5 Asphalt production 6 Asphalt paving 7 Bitumen 8 Road marking 9 Final product 10 Notes:
Slide 6: Material handling and processing activities
Material handlingBusiness and processing activities segments Diamond Gold Iron ore Materials Commercial quarries Contract crushing Material handling and processing for mines Copper Coal Sand Aggregates Gypsum Commercial quarries Notes: Raubex Group Limited Audited annual results for the year ended 2
Slide 7: 10 Year Financial Review
10 Year Financial Review Financial review Revenue (Rbn) Operating Profit (Rm) 9.00 1000 19.4% 8.00 900 19.1% 800 7.00 219 2.33 9.0% 1.96 700 14.6% 6.00 221 8.6% 1.62 600 178 10.6% 8.5% 5.00 1.50 8.6% 400 500 1.37 20.2% 4.00 1.02 1.04 324 211 259 1.02 400 102 219 3.00 668 5.28 5.60 300 574 4.70 4.13
Slide 8: 10 Year Financial Review
10 Year Financial Review Financial review Cash Generated from Operations (Rm) Headline Earnings Per Share (cents) 1200 350 323.8 300 1000 1050 291.7 964 250 800 853 859 240.2 234.4 793 785 751 200 209.1 600 663 187.1 180.1 177.2 150 158.7 400 449 100 110 100 100 83.3 78 200 71 50 60 60 65 65 199 0 0
Slide 9: The Year in Review
The Year in Review • Strong results in a competitive market • Good results from the Materials Division; 56,3% of operating profit • Diversified revenue streams • Acquisitions bedded down well • Roads Division executing very well; better quality order book • No problem contracts • H1 bitumen supply a
Slide 10: Group Financial Highlights
Group Financial Highlights • Revenues up 9,4% to R7,93bn (2015: R7,25bn) • Operating profit up 14,2% to R710,6m (2015: R622,2m) • Group operating profit margin of 9,0% (2015: 8,6%) • HEPS up 12,1% to 234,4 cps (2015: 209,1 cps) • Cash flow from operations up 33,8% to R1,05bn (2015: R785,1m) • Capita
Slide 11: Income Statement
Income Statement Annual results 2016 Annual results 2015 (R’000) (R’000) Revenue 7 925 754 7 245 259 % growth 9,4% 14,5% EBIT 710 563 622 171 % growth 14,2% 15,2% Operating margin 9,0% 8,6% Net finance costs 49 244 15 739 Profit before tax 661 643 606 637 Profit after tax 469 403 428 074 Effective t
Slide 12: Statement of Financial Position – Assets
Statement of Financial Position – Assets Annual results 2016 Annual results 2015 (R’000) (R’000) Non-current assets 3 454 583 3 240 794 Property, plant and equipment 2 335 748 2 171 829 Intangible assets 829 283 795 098 Investment in associates and JV’s 50 682 10 708 Deferred tax asset 42 478 43 136
Slide 13: Statement of Financial Position – Equity and Liabilities
Statement of Financial Position – Equity and Liabilities Annual results 2016 Annual results 2015 (R’000) (R’000) Equity 3 832 842 3 533 417 Attributable to shareholders 3 704 078 3 422 629 Non-controlling interest 128 764 110 788 Non-current liabilities 1 117 194 1 115 456 Borrowings 682 027 672 320
Slide 14: Statement of Cash Flows
Statement of Cash Flows Annual results 2016 Annual results 2015 (R’000) (R’000) Cash flows from operating activities Cash generated from operations 1 050 461 785 053 Finance costs – net (42 650) (11 380) Taxation paid (190 449) (188 848) Net cash generated from operating activities 817 362 584 825 C
Slide 15: Segmental analysis
Segmental analysis Road surfacing and rehab Road Operating segments Materials (incl Tosas) construction Infrastructure Consolidated February 2016 Revenue (R’000) 2 332 083 3 048 219 1 400 823 1 144 629 7 925 754 Operating profit (R’000) 399 823 172 682 102 989 35 069 710 563 Operating margin 17,1% 5
Slide 16: Dividend Declaration
Dividend Declaration • Final cash dividend declared of 42 cents per share • Total dividend of 78 cents per share for the year • Consistent dividends paid since listing • 3 X cover policy • Relevant dates • Last day to trade cum dividend - Friday, 27 May 2016 • Commence trading ex dividend - Monday,
Slide 17: Materials
Materials • Revenue increased 18,9% to R2,33bn (2015: R1,96bn) • Operating profit increased 23,5% to R399,8m (2015: R323,6m) • Operating margin increased to 17,1% (2015: 16,5%) • Capital expenditure of R323,2m (2015: R358,3m) • Order book of R1,76bn (2015: R1,86bn) • Strong performance from commerci
Slide 18: Road Surfacing and Rehabilitation
Road Surfacing and Rehabilitation • Revenue increased 3,1% to R3,05bn (2015: R2,96bn*) • Operating profit decreased 15,2% to R172,7m (2015: R203,7m*) • Operating margin decreased to 5,7% (2015: 6,9%*) • Capital expenditure of R128,4m (2015: R70m*); Tosas R57,3m • Order book of R3,09bn (2015: R2,60bn
Slide 19: Road Construction and Earthworks
Road Construction and Earthworks • Revenue decreased 4,3% to R1,40bn (2015: R1,46bn) • Operating profit increased 86,7% to R103,0m (2015: R55,2m) • Operating margin increased to 7,4% (2015: 3,8%) • Capital expenditure of R48,1m (2015: R44,6m) • Order book secured of R2,29bn (2015: R3,20bn) • Include
Slide 20: Raubex Infrastructure
Raubex Infrastructure • Revenue increased 32,7% to R1,14bn (2015: R862,7m) • Operating profit decreased 11,6% to R35,1m (2015: R39,6m) • Operating margin decreased to 3,1% (2015: 4,6%) • Capital expenditure of R49,9m (2015: R37,7m) • Order book of R1,12bn (2015: R1,01bn) • Stable results • Mine infr
Slide 21: Raubex International
Raubex International • Revenue increased 87,8% to R1,20bn (2015: R639,0m) • 15,1% of group total • Operating profit increased 161,6% to R218,3m (2015: R83,4m) • 30,7% of group total • Operating margin increased to 18,2% (2015: 13,1%) • Order book of R2,13bn (2015: R2,20bn); 25,8% of group total • In
Slide 22: Order book
Order book ORDER FY15BOOK Divisional Operating Profit FY 2015 FY 2016 International SANRAL SANRAL International 25% 24% 27% 26% Parastatal 14% Private Parastatal Private 20% 15% 18% Provincial Provincial 7% 12% Municipal Municipal 6% 6% Timing R8,679bn Timing R8,266bn FY 2016 R5,966bn FY 2017 R6,901
Slide 23: Acquisitions
Acquisitions Belabela Quarries OMV Kimberley Quarry • Annual revenue – R103,1m • Average annual revenue – R44m • Annual profit after tax – R15,2m • Average annual profit after tax – R7m • Purchase price – R43m • Purchase price – R37,5m • Percentage acquired – 74% • Percentage acquired – 100% • Effec
Slide 24: Major Projects Progress
Major Projects Progress Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 23
Slide 25: Namibia Roads Authority: Rosh Pinah to Oranjemund – R559m
Namibia Roads Authority: Rosh Pinah to Oranjemund – R559m Notes:
Slide 26: Zambia RDA: Mpika to Mfuwe – ZMW 541m
Zambia RDA: Mpika to Mfuwe – ZMW 541m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 25
Slide 27: Zambia RDA: Safwa to Chinsali – ZMW 265m
Zambia RDA: Safwa to Chinsali – ZMW 265m Notes:
Slide 28: DOT Northern Cape: Hondeklipbaai – R90m
DOT Northern Cape: Hondeklipbaai – R90m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 27
Slide 29: DOT Eastern Cape: Wild Coast Meander Phase 1 – R222m
DOT Eastern Cape: Wild Coast Meander Phase 1 – R222m Notes:
Slide 30: SANRAL: N2 Eteza Interchange – R324m
SANRAL: N2 Eteza Interchange – R324m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 29
Slide 31: SANRAL: N1 Bloemfontein bypass – R614m
SANRAL: N1 Bloemfontein bypass – R614m Notes:
Slide 32: Ekurhuleni: Annual maintenance – R114m
Ekurhuleni: Annual maintenance – R114m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 31
Slide 33: Tosas: Wadeville plant expansion – R21m
Tosas: Wadeville plant expansion – R21m Notes:
Slide 34: Tschudi Copper Mine: Purpose built plant and crushing contract – R524m
Tschudi Copper Mine: Purpose built plant and crushing contract – R524m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 33
Slide 35: Namdeb: Seawall maintenance contract
Namdeb: Seawall maintenance contract Notes:
Slide 36: Ilanga Solar Farm earthworks – R75m
Ilanga Solar Farm earthworks – R75m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 35
Slide 37: Ilanga Solar Farm earthworks – R75m
Ilanga Solar Farm earthworks – R75m Notes:
Slide 38: Ilanga Solar Farm earthworks – R75m
Ilanga Solar Farm earthworks – R75m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 37
Slide 39: Prieska Solar Farm – R94m
Prieska Solar Farm – R94m Notes:
Slide 40: Prieska Solar Farm – R94m
Prieska Solar Farm – R94m Notes: Raubex Group Limited Audited annual results for the year ended 29 February 2016 39
Slide 41: Conclusion
Conclusion • Quality short term order book secured • Focus now on order book replacement to secure medium term • SANRAL budget encouraging; some large projects in the pipeline • N2 Wild Coast bridges • N3 Upgrade • Extensive reseal works programme • Provincial work flow increasing • Move towards a p