Raubex Group Limited · JSE:RBX
Raubex — FY2024 Earnings Presentation
63 slides from Raubex's earnings presentation, May 2024
Slide 1: Audited Final Results for the year ended 29 February 2024
2024 AUDITED FINAL RESULTS for the year ended 29 February 2024 Raubex Group Limited (Incorporated in the Republic of South Africa) Registration number 2006/023666/06 Share code: RBX ISIN code: ZAE000093183 www.raubex.com (“Raubex” or “the Company”)
Slide 2: Agenda
AGENDA 1. About Raubex Slide 3 – Felicia Msiza (CEO) 2. Financial Overview Slide 5 – Sam Odendaal (FD) 3. Operational Overview Slide 16 – Dirk Lourens (COO) 4. Outlook and Strategy Slide 50 – Felicia Msiza (CEO) 2
Slide 3: About Raubex
1 About Raubex
Slide 4: The Year in Review
THE YEAR IN REVIEW • Excellent set of results for FY2024 across all four divisions Financial • No contribution from the Beitbridge Border Post project during the year performance • Bauba Resources continued to perform exceptionally well • Macroeconomic conditions remain challenging Operations • Dive
Slide 5: Financial Overview
2 Financial Overview
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS GROUP OPERATING REVENUE R17.43bn 13.8% 13.8% PROFIT R1.54bn 20.4% 20.4% INCREASED TO (2023: R15.31bn) INCREASED TO (2023: R1.28bn) CASH GENERATED HEPS INCREASED TO 476.3 cps 21.3% FROM OPERATIONS R1.90bn 2.9% DECREASED TO (2023: 392.8 cps) (2023: R1.96bn) CAPITAL ORDER BOOK EXPE
Slide 7: Income Statement
INCOME STATEMENT Audited Audited R’000 29 Feb 2024 28 Feb 2023 % variance Revenue 17 425 168 15 307 479 13.8 Operating profit 1 536 688 1 276 139 20.4 Operating profit margin 8.8% 8.3% Net finance costs (64 417) (47 165) 36.6 Profit before tax 1 472 775 1 221 961 20.5 Profit after tax 1 073 975 858
Slide 8: Segmental Analysis per Division
SEGMENTAL ANALYSIS PER DIVISION Revenue (%) Operating profit (%) 23% 31% 33% 38% 2024 2024 R17.43bn R1.54bn 14% 22% 7% 32% 19% 13% Materials Handling and 30% Materials Handling and 6% Mining Division Mining Division 41% 2023 2023 12% R15.31bn R1.28bn Construction Materials Construction Materials Div
Slide 9: Segmental Analysis per Geography
SEGMENTAL ANALYSIS PER GEOGRAPHY Revenue (%) Operating profit (%) 19% 18% 6% 2024 12% 2024 R17.43bn R1.54bn 70% 75% 16% 19% 34% 13% 2023 2023 South Africa R15.31bn South Africa R1.28bn Rest of Africa 71% Rest of Africa 47% Western Australia Western Australia 9
Slide 10: Our Track Record
OUR TRACK RECORD 20 000 Turnover (R'm) Operating profit (R'm) 1 800 17 425 1 600 1 537 15 307 15 000 1 400 1 276 11 578 1 200 1 000 945 10 000 8 735 8 846 800 600 480 5 000 400 364 200 - - 2020 2021 2022 2023 2024 -200 2020 2021 2022 2023 2024 Roads Materials Infra Mining Roads Materials Infra Minin
Slide 11: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION Audited Audited % R’000 29 Feb 2024 28 Feb 2023 variance Assets 13 195 006 11 342 788 16.3 Property, plant and equipment 4 685 908 3 668 216 27.7 Investment property 198 425 113 974 74.1 Right-of-use assets 289 855 335 472 (13.6) Intangible assets 1 084 204 1 002 301
Slide 12: Capital Expenditure
CAPITAL EXPENDITURE Capital Expenditure 2021 - Planned 2025 (R'm) 2 000 1 764 1 500 1 266 1 153 1 000 696 763 500 417 224 1 378 865 417 472 288 386 503 - 2021 2022 2023 2024 2025 Replacement Capex Expansion Capex Capital Expenditure per Segment 2021 - Planned 2025 (R'm) 2000 1800 1600 1400 1200 1000
Slide 13: Capital Expenditure - Bauba
CAPITAL EXPENDITURE - BAUBA Capital Expenditure 2023 - Planned 2025 (R'000) 800 000 • Expansion Capex for 2023 and 2024 include: 733 897 • Underground Conveyor Belt System at Moeijelijk Mine 700 000 • Grid Connection at Moeijelijk Mine (Awaiting ESKOM approval) 600 000 311 382 • Crusher and Spiral P
Slide 14: Cash Flow Movement
CASH FLOW MOVEMENT 4500 Working capital outflow R393.4 million 4200 2 306.3 218.8 236.8 3900 231.1 338.0 3600 335.3 166.4 89.2 1 739.4 3300 3000 2700 R’million 2400 2100 499.4 56.8 314.3 1 697.3 1800 90.2 1 662.1 1500 1200 900 600 300 0 Mar 23 Operating Inventory Debtors Contract Creditors Contract
Slide 15: Dividend Declaration
DIVIDEND DECLARATION Final dividend of 92 cents declared 3 times cover policy maintained Relevant dates Last day to trade cum dividend Monday, 27 May 2024 Commence trading ex dividend Tuesday, 28 May 2024 Record date Friday, 31 May 2024 Payment date Monday, 3 June 2024 15
Slide 16: Operational Overview
3 Operational Overview
Slide 17: Our Divisions
OUR DIVISIONS Retail and Earthworks hospitality Building Compaction Electricity FR] goapmac = [ F]RAUDEV Sma FRY Ro0R Housing BEX ; Milling FRI EAE managerent FR) BOARMee Telecoms oe Asphalt paving Road marking Water Mobile crushing and screening Commercial ‘rushing Bulk commodity materials handling
Slide 18: Materials Handling & Mining Division
MATERIALS HANDLING & MINING DIVISION Revenue (Rm) Operating profit (Rm) 700.0 600.0 500.0 400.0 300.0 200.0 100.0 1 611.1 2 878.0 4 017.9 124.1 168.6 584.7 0.0 Feb 2022 Feb 2023 Feb 2024 Feb 2022 Feb 2023 Feb 2024 • Revenue increased by 39.6% mainly due to: • Operating profit rose by a remarkable 24
Slide 19: Materials Handling & Mining Division
MATERIALS HANDLING & MINING DIVISION Order Book Capex R5.05bn R1 291.5m (2023: R3.65bn) (2023: R693.9m) Bauba Resources (Bauba) • Kookfontein opencast chrome mine continued to perform exceptionally well • Demand for chrome and PGM ore remained favorable with stable high chrome prices and a favorable
Slide 20: Materials Handling & Mining Division - Bauba
MATERIALS HANDLING & MINING DIVISION - BAUBA 74.8% 73.3% 15.3% Revenue Operating profit increased to R2.33bn increased to R356.8m Operating profit margin (2023: 15.4%) (2023: R1.33bn) (2023: R205.9m) 27.9% 112.5% 76.6% Total Production Total Sold EBITDA increased to 1.66m increased to 1.33m increase
Slide 21: Materials Handling & Mining Division
MATERIALS HANDLING & MINING DIVISION B & E International • The 5-year Namdeb contract continue with its meaningful contribution to the results of this division • Demand for contract crushing in the construction sector increased on the back of the recent SANRAL tender awards • B&E successfully operat
Slide 22: Bauba Resources: Kookfontein Mine
Bauba Resources: Kookfontein Mine Location North West Province, Rustenburg Major Activity Total ROM Chrome volumes for FY24 is 1.4m tonnes 22
Slide 23: OMV: Rustenburg Eco-Gypsum process
OMV: Rustenburg Eco-Gypsum process Project Description Cement-grade gypsum loaded at OMV Rustenburg facility This gypsum has a net zero impact and is manufactured from a recycled waste stream 23
Slide 24: B&E International: Cradock Quarry
B&E International: Cradock Quarry Contract Value R65m Project Duration 6 months Major Activity 442 000 tonnes of G material and roadstone 24
Slide 25: Construction Materials Division
CONSTRUCTION MATERIALS DIVISION Revenue (Rm) Operating profit (Rm) 200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 1 842.0 1 877.2 2 421.7 178.9 81.5 115.0 0.0 Feb 2022 Feb 2023 Feb 2024 Feb 2022 Feb 2023 Feb 2024 • Revenue increased by 29.0% primarily due to the good • Operating profit incr
Slide 26: Construction Materials Division
CONSTRUCTION MATERIALS DIVISION Order Book Capex R1.72bn R130.5m (2023: R1.00bn) (2023: R138.7m) • The commercial quarry operations in South Africa for the year under review performed well due to: • increased volumes in the Northern region; • increase in activity on the road’s projects and ballast c
Slide 27: Construction Materials Division
CONSTRUCTION MATERIALS DIVISION • Due to weather constrictions during the year in Kwazulu-Natal, a large volume of the secured order book will be carried over into FY2025 • The profitability of asphalt operations in the rest of South Africa remained under pressure during FY2024 due to delays in the
Slide 28: National Asphalt: Portland Plant
National Asphalt: Portland Plant Major Activity The Portland plant based in Cape town can produce asphalt in excess of 200 tons per hour. 28
Slide 29: Tosas: R510 Bierspruit to Thabazimbi
Tosas: R510 Bierspruit to Thabazimbi Contract Value R38.4m Project Duration 33 months Major Activity 2m litres of Bituminous Products supplied and sprayed 29
Slide 30: Raumix Aggregates: Donkerhoek Quarry
Raumix Aggregates: Donkerhoek Quarry Location East of Pretoria - Serving the greater Pretoria area with crushed stone products such as G1 and crusher sand Major Activity 584 450 tonnes aggregates crushed for FY24 30
Slide 31: Roads and Earthworks Division
ROADS AND EARTHWORKS DIVISION Revenue (Rm) Operating profit (Rm) 600.0 6 038.0 510.9 5 668.4 787.3 500.0 4 576.2 400.0 571.6 285.8 331.5 300.0 267.0 200.0 107.7 100.0 4 004.6 5 250.7 159.3 225.1 0.0 Feb 2022 Feb 2023 Feb 2024 Feb 2022 Feb 2023 Feb 2024 Beitbridge Border Post Project Beitbridge Borde
Slide 32: Roads and Earthworks Division
ROADS AND EARTHWORKS DIVISION Order Book Capex R10.16bn R164.4m (2023: R7.80bn) (2023: R105.3m) • All the SANRAL projects are performing very well, on time and on budget • Construction on the Senqu River Bridge in Lesotho is progressing as planned • This division is encouraged by increased activity
Slide 33: Raubex Construction: R573 Moloto
Raubex Construction: R573 Moloto Contract Value R449.8m Project Duration 37 months Major Activities 4 177m3 Concrete Median Barrier 33
Slide 34: Roadmac Surfacing Cape: N1 Beaufort West
Roadmac Surfacing Cape: N1 Beaufort West Contract Value R118.1m Project Duration 12 Months Major Activity 241 830m2 Double Seal 34
Slide 35: Roadmac Surfacing: N12 Delmas
Roadmac Surfacing: N12 Delmas Contract Value R182.7m Project Duration 15 months Major Activity 71 682 tonnes asphalt paved 35
Slide 36: Raubex KZN: N2 KwaMashu
Raubex KZN: N2 KwaMashu Contract Value R1.67bn Project Duration 48 months Major Activity 190 000 tonnes asphalt C3 stabilization 75 000m3 36
Slide 37: Infrastructure Division
INFRASTRUCTURE DIVISION Revenue (Rm) Operating profit (Rm) 600.0 5 317.1 515.2 505.5 4 514.4 500.0 787.3 375.3 3 548.6 400.0 285.8 571.6 300.0 107.7 200.0 100.0 267.6 229.4 2 977.0 3 727.1 0.0 Feb 2022 Feb 2023 Feb 2024 Feb 2022 Feb 2023 Feb 2024 Beitbridge Border Post Project Beitbridge Border Post
Slide 38: Infrastructure Division
INFRASTRUCTURE DIVISION Order Book Capex R8.62bn R177.7m (2023: R7.58bn) (2023: R214.7m) • The growth in revenue for the division is mainly contributed to the performance of the Western Australia companies • The repair of stormwater damage to concrete structures in the Western and Eastern Cape as we
Slide 39: Empa Structures: Potsdam Wastewater Treatment Plant
Empa Structures: Potsdam Wastewater Treatment Plant Project Description Design- Build of mechanical and electrical works for the upgrade of Potsdam WWTP Contract Value R3.2bn (25% Consortium) Project Duration 66 months 39
Slide 40: Cloetesdal Developments: Newinbosch
Cloetesdal Developments: Newinbosch Contract Value R203.8m Project Duration 16 months Major Activity The project achieved a 6* Sustainable Precinct Rating from GBCSA – first in South Africa and Africa 40
Slide 41: Raubex Building: Urban Development (Orlando Towers)
Raubex Building: Urban Development (Orlando Towers) Contract Value R275.2m Project Duration 24 months Major Activity All 568 units are supplied with gas through modern bulk gas infrastructure 41
Slide 42: International – Rest of Africa
INTERNATIONAL – REST OF AFRICA Revenue (Rm) Operating profit (Rm) 700.0 1 985.4 600.0 592.0 1 536.4 500.0 400.0 1 574.5 996.8 288.2 1 143.2 300.0 571.6 200.0 189.5 214.4 100.0 73.8 20.4 393.2 410.9 0.0 Feb 2022 Feb 2023 Feb 2024 Feb 2022 Feb 2023 Feb 2024 Beitbridge Border Post Project Beitbridge Bo
Slide 43: International – Rest of Africa
INTERNATIONAL – REST OF AFRICA Order Book Capex R3.49bn R281.1m (2023: R3.79bn) (2023: R175.1m) • The main reason for the sharp decline in revenue and operating profit is attributable to the completion of the Beitbridge Border Post project in the previous financial year • Raubex will be responsible
Slide 44: B&E International Namibia: Namdeb
B&E International Namibia: Namdeb Contract Value N$1.2bn Project Duration 60 months Major Activity 2.7m tonnes of sand load and haul per month 44
Slide 45: Raubex Construction Lesotho: Senqu Bridge
Raubex Construction Lesotho: Senqu Bridge Contract Value Estimated LSL2.8bn (21% JV partner) Project Duration 36 months Major Activities Concrete 34 000m3 Reinforcing 7 500 tonnes 45
Slide 46: International - Australia
INTERNATIONAL - AUSTRALIA Revenue (Rm) Operating profit (Rm) 300.0 250.0 200.0 150.0 100.0 50.0 1 640.1 2 523.9 3 320.0 177.5 247.4 278.6 0.0 Feb 2022 Feb 2023 Feb 2024 Feb 2022 Feb 2023 Feb 2024 • Revenue increased by 31.5% • Operating profit increased by 12.6% • Operating profit margin decreased t
Slide 47: International - Australia
INTERNATIONAL - AUSTRALIA Order Book Capex R1.58bn R145.2m (2023: R2.37bn) (2023: R187.4m) • The operations in Western Australia continued to perform well, with the Group gaining further market share in this region with the startup of Roadmac Australia • Westforce is capitalizing on the successfully
Slide 48: Westforce Construction: Tropicana Windfarm
Westforce Construction: Tropicana Windfarm Contract Value AUD15.6m Project Duration 9 months Major Activities 245 000m3 mass earthworks 3 115m3 concrete (four wind turbine footings) 48
Slide 49: Raubex Construction: Thomas Road
Raubex Construction: Thomas Road Contract Value AUD38.6m Project Duration 8 months Major Activities 17 500 tonnes asphalt 2.2km stormwater drainage 49
Slide 50: Outlook and Strategy
4 Outlook and Strategy
Slide 51: Order Book
ORDER BOOK FY2024 FY2023 13.7% SANRAL 18.9% 25.5% Provincial 30.0% 6.2% Municipal Concessionaires 11.8% 9.9% Private 3.4% Australia 34.9% 5.8% 4.1% Rest of Africa 26.8% 3.3% 5.7% Timing R25.55bn Timing R20.04bn FY 2025 R13.29bn FY 2024 R11.90bn FY 2026 R6.97bn FY 2025 R3.62bn FY 2027 R2.97bn FY 2026
Slide 52: Order Book – Timeline per Customer
ORDER BOOK – TIMELINE PER CUSTOMER FY2024 10 000 8 907 9 000 8 000 7 000 6 512 6 000 5 073 R’million 5 000 4 000 3 000 2 536 2 000 1 466 1 055 1 000 - SANRAL Private International Concessionaires Provincial Municipal Feb 2025 Feb 2026 Feb 2027 Beyond 52
Slide 53: Order Book History
ORDER BOOK HISTORY 30 000 25 549 25 000 20 037 20 000 17 124 17 133 R’million 15 000 10 138 10 000 8 187 8 010 5 000 - Feb 18 Feb 19 Feb 20 Feb 21 Feb 22 Feb 23 Feb 24 SANRAL 962 208 1 276 6 396 6 686 6 021 6 512 Provincial 291 1 217 2 319 1 138 507 675 2 536 Municipal 685 598 798 634 302 1 164 1 05
Slide 54: Order Book – Customer per Division
ORDER BOOK – CUSTOMER PER DIVISION FY2024 FY2023 12 000 9 000 7 803 10 159 8 000 7 580 10 000 SANRAL 7 000 8 623 Provincial 8 000 Municipal 6 000 Other parastatals 5 000 R’million R’million 6 000 Concessionaires 5 048 4 000 3 653 Private 4 000 3 000 International 2 000 1 719 2 000 1 001 1 000 - - Ma
Slide 55: Order Book – Segmental Analysis
ORDER BOOK – SEGMENTAL ANALYSIS FY2024 FY2023 20% 18% 33% Materials Handling and Mining Division 38% 5% Construction Materials 7% Division Roads and Earthworks Division Infrastructure Division 39% 40% Order Book R25.55bn Order Book R20.04bn Materials Handling and Mining R5.05bn Materials Handling an
Slide 56: Core Message
CORE MESSAGE 50 YEARS OF BUILDING TOMORROW OUR CORE MESSAGE REMAINS CONSISTENT Future is supported Pleasing results by solid order book across the 4 divisions Diversified Continue to business model perform well in spreading risk and Western Australia opportunity 56
Slide 57: ESG at a Glance
ESG AT A GLANCE B-BBEE TRAINING AND LTI RATE (CONSTRUCTION Level 1 DEVELOPMENT SPEND 11.7% (TARGET < 1.00) 0.39 SECTOR CODES) R35.3m 0.44 (2023: Level 1) (2023: R31.5m) (2023: 0.83) EMPLOYEES CSI SPEND CARBON EMISSIONS (CO2E) 8 276 8.1% R5.4m 10.0% 171 951t 1.2% (2023: 7 660) (2023: R6.0m) (2023: 17
Slide 58: Total Employment
TOTAL EMPLOYMENT 20000 EMPLOYMENT 23.3% 18000 17 596 16000 (2023: 14 272) 14000 12000 10000 2023 17596 2024 8000 14272 6000 9320 4000 7660 8276 6612 2000 0 Direct employment Indirect employment Total employment Raubex is a major source of employment for the communities in which it operates, offering
Slide 59: Our Communities
OUR COMMUNITIES 50 YEARS OF SERVING OUR COMMUNITIES Little Miracles KZN Teen-ology workshop Esther Calling Education, Ester Monyetla Calling Education, Ester Monyetla Engo Spoudazo 59
Slide 60: Strategy
HEPS growth over 5-years (cents) Profitability • Focus on profitability and a quality order book 600.0 Growth • Grow organically and through strategic acquisitions 500.0 • To be the preferred supplier associated with quality Preferred Supplier 400.0 projects and service of excellence 300.0 Market Sh
Slide 61: Outlook
OUTLOOK • The outlook for FY2025 is cautiously optimistic, given this being an election year • The Materials Handling and Mining Division will continue to: • focus on strategic partnerships; • explore opportunities to increase mineral resources; and • improve production efficiencies • The Bauba acqu
Slide 62: Thank You
Q&A THANK YOU FOR YOUR ATTENDANCE AND PARTICIPATION WWW.RAUBEX.COM +27 12 648 9400 Felicia Msiza Dirk Lourens Sam Odendaal • Chief Executive Officer • Chief Operating Officer • Financial Director • 13 years at Raubex • 12 years at Raubex • 17 years at Raubex 62
Slide 63: Disclaimer
DISCLAIMER The financial information pertaining to Raubex Group Limited’s (Raubex’s) results are based on the results published on SENS in terms of the JSE Limited’s Listings Requirements. This presentation may contain certain "forward-looking statements" regarding views or expectations of Raubex, i