Raubex Group Limited · JSE:RBX
Raubex — H1 2013 Earnings Presentation
23 slides from Raubex's earnings presentation, Nov 5, 2012
Slide 1: Interim Results
Interim Results for the period ended 31 August 2012 5 November 2012
Slide 2: Agenda
Agenda • The Period in Review • Group Financial Highlights • Financial Review • Divisional Review • Order Book • Major Projects Progress • Conclusion
Slide 3: The Period in Review
The Period in Review • Results in line with expectations • Strong performance given market conditions • Competitive landscape stabilising, although still difficult • Strategic bitumen supply plans in place • Free State contracts • Government tender volumes maintained • International drive moving ahe
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenues up 7,7% to R2,81bn (H1 2012: R2,61bn) • Operating profit up 3,1% to R290,8m (H1 2012 : R282,1m) • Group operating margin of 10,3% (H1 2012 : 10,8 %) • HEPS up 3,0% to 95,7 cents per share (H1 2012: 92,9 cps) • Cash flow from operations up 68,6% to R443,8m (H1 20
Slide 5: Income Statement
Income Statement Interim results 2013 Interim results 2012 Annual results 2012 (R’000) (R’000) (R’000) Revenue 2,810,013 2,609,998 5,032,625 % growth 7,7% 3,7% 10,7% EBIT 290,833 282,052 531,462 % growth 3,1% (31,4%) (19,8%) Profit before tax 283,657 277,391 519 427 Profit after tax 193,924 176,744
Slide 6: Statement of Financial Position
Statement of Financial Position Interim results Interim results Annual results 2013 2012 2012 (R’000) (R’000) (R’000) Non-current assets 2,318,028 2,095,121 2,129,726 Property, plant and equipment 1,535,344 1,294,874 1,353,753 Intangible assets 766,209 760,046 757,629 Other 16,475 40,201 18,344 Curr
Slide 7: Statement of Cash Flows
Statement of Cash Flows Interim results 2013 Interim results 2012 Annual results 2012 (R’000) (R’000) (R’000) Cash flows from operating activities Cash generated from operations 443,781 263,269 663,228 Finance income 14,342 13,986 29,353 Finance cost (21,518) (18,647) (41,388) Dividend received 1,03
Slide 8: Dividend Declaration
Dividend Declaration • Interim cash dividend declared of 30 cents per share • Relevant dates – Last day to trade cum dividend Friday, 23 November 2012 – Commence trading ex dividend Monday, 26 November 2012 – Record date Friday, 30 November 2012 – Payment date Monday, 03 December 2012
Slide 9: Segmental Analysis
Segmental Analysis Raubex Business segments Raumix Roadmac Construction Consolidated Aug 2012 Revenue (R’000) 769,217 1,410,901 629,895 2,810,013 Operating profit (R’000) 109,076 112,569 69,188 290,833 Operating margin 14,2% 8,0% 11,0% 10,3% Aug 2011 Revenue (R’000) 696,510 1,337,594 575,894 2,609,9
Slide 10: Roadmac
Roadmac • Revenue increased 5,5% to R1,41bn (H1 2012: R1,34bn); 50,2% of total Group revenue • Operating profit decreased 14,0% to R112,6m (H1 2012 : R130,9m) • Operating margin decreased to 8,0% (H1 2012 : 9,8%) • Capex of R55m (H1 2012 : R22,6m) • Order book of R2,24bn Asphalt Production • Margins
Slide 11: Roadmac Strategic Outlook
Roadmac Strategic Outlook • Short term (FY2013) – Contracting margins to remain in the current range – Competitive landscape to maintain pressure on margins – Competitor attrition taking place – Impact of strikes on efficiencies • Long term – Expansion into SADC – Provincial and municipal expenditur
Slide 12: Raubex Construction
Raubex Construction • Revenue increased 9,4% to R629,9m (H1 2012 : R575,9m) • Operating profit increased 176,3% to R69,2m (H1 2012 : R25m) • Operating margin increased to 11,0% (H1 2012 : 4,3%) • Capex of R26,1m (H1 2012 : R16,2m) • Order book secured – R1,58bn • Free State work • Tolling?
Slide 13: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook • Short term (FY2013) – Order book secured; aggressively seeking long-term workflow – Margins expected to remain in current range – Fast track application to the Competition Commission No provision made • Long term – Provincial expenditure needed through provi
Slide 14: Raumix
Raumix • Revenue increased 10,4% to R769,2m (H1 2012: R696,5m) • Operating profit decreased by 13,5% to R109,1m (H1 2012: R126,1m) • Operating margin decreased to 14,2% (H1 2012 : 18,1%) • Capital expenditure of R158m (H1 2012 : R49,5m) • General construction and residential building markets weak bu
Slide 15: Raumix Strategic Outlook
Raumix Strategic Outlook • Short term (FY2013) – Margins stabilising at around 14-18% – Credit risk management – Mining activity: Strikes Global demand • Long term – Demand dependent on continuous recovery in the residential and commodity sectors – Demand from low-cost housing programmes – SADC
Slide 16: Raubex International
Raubex International • Revenue down 45,8% to R224,2m (H1 2012: R413,9m) – 8,0% of Group total • Operating profit up 17,9% to R43,0m (H1 2012: R36,4m) – 14,8% of Group total • Operating margin of 19,2% (H1 2012: 8,8%) • Major portions of Namibian contracts completed • Malawi nearing completion • Oper
Slide 17: Group Order Book
Group Order Book International – 11% SANRAL – 50% Private – 20% Other Parastatals – 5% Provincial – 10% Order Book R5,003bn Time Distribution Municipal – 4% FY 2013 R2,452bn FY 2014 R2,072bn FY 2015 R0,479bn
Slide 18: Major Projects Progress
Major Projects Progress N11 – Ermelo to Hendrina (Mpumalanga) R512,167,959 Est. completion date: Nov 2014
Slide 19: Major Projects Progress
Major Projects Progress N11 – Middelburg to Loskopdam (Mpumalanga) R83,052,957 Est. completion date: Jan 2013 R21 – Isando pedestrian bridge (Gauteng) R46,547,012 Est. completion date: Mar 2013
Slide 20: Major Projects Progress
Major Projects Progress N8 - Groblershoop to Volop (Northern Cape) R107,683,608 Est. completion date: Aug 2013 N10 – Groblershoop to Lambrechtsdrift R111,426,533 Est. completion date: Jul 2013
Slide 21: Major Projects Progress
Major Projects Progress Cliffdale (KwaZulu-Natal) Bitumen decanting and storage yard
Slide 22: Major Projects Progress
Major Projects Progress Thabazimbi Mine – Kumba (North West) Driefontein Mine – Goldfields (Gauteng)
Slide 23: Conclusion
Conclusion • Achieved satisfactory results given extremely challenging conditions • Strong balance sheet • International expansion continues; new geographies being explored • Short term order book stable at lower margins • Labour unrest being monitored closely • Upturn in the cycle dependent on: – L