Raubex Group Limited · JSE:RBX
Raubex — FY2009 Earnings Presentation
24 slides from Raubex's earnings presentation, May 18, 2009
Slide 1: Annual Results Presentation
Annual Results Presentation for the year ended 28 February 2009 Annual Results Presentation 2009 1 18 May 2009
Slide 2: Group Structure
Group Structure Raubex (Pty) Limited AGGREGATE CIVIL ROAD - Aliwal Dolorite Quarry - Raubex Construction - Akasia Road Surfacing - B&E International - Raubex Zambia - Centremark Roadmarking - Canyon Rock - Space Construction - Milling Techniks - Cradock Quarry - Thaba Bosiu - National Asphalt - Quee
Slide 3: Agenda
Agenda The Year in Review Highlights Financial Review Divisional Review Order Book Current and Recently Awarded Projects Conclusion Annual Results Presentation 2009 3
Slide 4: The Year in Review
The Year in Review Results in-line with expectations Margin stabilisation Successful integration of five value enhancing acquisitions Solid performance by all three divisions; in line with expectations Business positioned for continued solid growth Unusually high summer rains Ongoing government expe
Slide 5: Succession Management
Succession Management Koos Raubenheimer retiring as CEO in March 2010 to assume a non-executive role Rudolf Fourie, current Roadmac MD, to succeed him as CEO Streamlining of executive management to two; Francois Diedrechsen to remain Financial and Commercial Director No impact on operational activit
Slide 6: Group Financial Highlights
Group Financial Highlights Revenues up 94,9% to R4,16bn (2008: R2,14bn) Operating profit up 84,2% to R794,6m (2008: R431,3m) Group operating margin of 19,1% (2008: 20,2%) HEPS up 62% to 291,7 cents per share (2008: 180,1 cents per share) Strong cash flow from operations up 114,9% to R964,4m (2008: R
Slide 7: Group Operational Highlights
Group Operational Highlights Operating margins stabilised o Roadmac 21,1% (2008: 18,7%) o Raubex Construction 13,0% (2008: 18,3%) o Raumix 21,6% (2008: 28,2%) All acquisitions fully integrated during the year and delivering Gauteng Freeway Improvement Project underway International strategy accelera
Slide 8: Income Statement
Income Statement Annual results Annual results 28 February 2009 29 February 2008 (R’000) (R’000) Revenue 4,162,780 2,135,778 % growth 94,9% 79,4% EBIT 794,594 431,282 % growth 84,2% 121,7% Profit before tax 757,467 416,771 Profit after tax 528,854 295,618 Share incentive scheme expenses* 14,884 14,3
Slide 9: Balance Sheet
Balance Sheet Annual results Annual results 28 February 2009 29 February 2008 R’000 R’000 Non-current assets 1,976,210 882,132 Property, plant and equipment 1,212,941 670,837 Intangible assets 724,289 198,939 Other 38,980 12,356 Current assets 1,476,926 1,165,049 Inventory 123,074 50,440 Receivables
Slide 10: Cash flow
Cash flow Annual results Annual results 28 February 2009 29 February 2008 R’000 R’000 Cash flows from operating activities Cash generated from operations 964,405 448,815 Interests received 42,630 12,997 Interests paid (79,841) (27,986) Taxation paid (200,026) (43,777) Net cash from operating activit
Slide 11: Dividend Declaration
Dividend Declaration Final cash dividend declared – 70 cps Relevant dates o Last day to trade cum dividend Friday, 5 June 2009 o Commence trading ex dividend Monday, 8 June 2009 o Record date Friday, 12 June 2009 o Payment date Monday, 15 June 2009 Annual Results Presentation 2009 11
Slide 12: Segmental Analysis
Segmental Analysis Raubex Segmental Analysis Raumix Roadmac Construction Consolidated Feb 09 Revenue (R’000) 1,022,455 2,045,908 1,094,417 4,162,780 Operating profit (R’000) 220,886 430,998 142,710 794,594 Operating Margin 21,6% 21,1% 13% 19,1% Feb 08 Revenue (R’000) 362,915 1,252,902 519,961 2,135,
Slide 13: Roadmac
Roadmac Revenue increased 63,3% to R2,05bn (2008: R1,25bn) Operating profit increased 84,3% to R431m (2008: R233,9m) Operating margin improved to 21,1% (2008: 18,7%) 49,2% of total group revenue Capex of R90,4m (2008: R76,2m) Order book – R1,9bn Positive weather and geographical mix during winter mo
Slide 14: Roadmac Strategic Outlook
Roadmac Strategic Outlook Short & medium term o Work pipeline continues to grow in-line with road infrastructure spend o Margins to stabilise at around 20% o Asphalt production capacity in GP and KZN established – seeking opportunities in other provinces o Solid earnings and revenue growth expected
Slide 15: Raubex Construction
Raubex Construction Revenue increased 110,5% to R1,09bn (2008: R520m) Operating profit increased 50% to R142,7m (2008: R95,1m) Operating margin decreased to 13% (2008: 18,3%) Awarding of numerous contracts; R21 being the largest Capex of R74,8m (2008: R67,6m) Order book – R2,4bn Additional capacity
Slide 16: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook Short & medium term o Aggressively securing long-term workflow o Margins to stabilise at around 13-15% o Solid earnings and revenue growth expected Long term o Economic growth necessary to sustain government spending o Ongoing PPPs/concessions negotiations Annua
Slide 17: Raumix
Raumix Revenue increased 181,7% to R1,02bn (2008: R362,9m) Operating profit up 116,1% to R220,9m (2008: R102,2m) Operating margin decrease to 21,6% (2008: 28,2%) Capital expenditure of R217,6m (2008: R100,8m) Acquisitions of B&E International (incorporated for 11 months) and Queenstown & Aliwal Quar
Slide 18: Raumix Strategic Outlook
Raumix Strategic Outlook Short & medium term o Margins to decrease to around 15-18% o No signs of a recovery in residential demand o Increased activity in contract crushing o Much reduced exposure to mining activities Long term o Demand dependent on recovery in the residential and commodity sectors
Slide 19: Raubex Construction International
Raubex Construction International Revenue increased 122% to R321,7m (2008: R144,9m) o 7,7% of Group total Operating profit increased 31,5% to R31m (2008: R23,5m) o 3,9% of Group total Operating margin of 9,6% Increased activity in Zambia (10 contracts underway) Underperformance attributable to: o Ex
Slide 20: Group Order Book Revenue Streams
Group Order Book Revenue Streams Parastatal 16,2% SANRAL 37,2% Private 17,1% International 29,5% Order Book R5,186bn Time Distribution FY 2010 R3,944bn FY 2011 R1,044bn FY 2012 R0,198bn Annual Results Presentation 2009 20
Slide 21: Current Projects Sample
Current Projects Sample Raubex Construction Location Description Duration Price Gauteng Upgrading of National Route 21 between the September 08 to R719m Olifantsfontein and Hans Strydom interchanges March 2010 Zambia Reconstruction of 110 km between Kasama and Mbala July 08 to R240m and 100 km betwe
Slide 22: Recently Awarded Projects Sample
Recently Awarded Projects Sample Raubex Construction Location Description Duration Price Namibia Upgrading and construction from Gravel to tar Road May 09 to R1bn from Rundu to Elandu (approx 236km) June 2011 Free State Upgrade of National Route R30 between Beatrix and March 09 to R232m Virginia Jan
Slide 23: Conclusion
Conclusion Strong financial performance Balance of acquisitive and organic growth paying off Continued demand for our line of work Continuously exploring new geographies Medium term order book secured (all work guaranteed) SANRAL able to successfully access debt markets Strong balance sheet (no long
Slide 24: Q & A
Q&A Annual Results Presentation 2009 24