Sephaku Holdings Limited · JSE:SEP
Sephaku — H1 FY2016 Earnings Presentation
22 slides from Sephaku's earnings presentation, Nov 5, 2015
Slide 1: Exploration, Development, Income, Growth
EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 November 2015 0
Slide 2: Disclaimer
DISCLAIMER This presentation includes certain forward-looking information. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including, without limitation, those concerning: Sephaku Holdings’ strategy; the economic outlook for the indust
Slide 3: Agenda
AGENDA OPERATIONAL PERFORMANCE OVERVIEW – Dr Lelau Mohuba • Sephaku Cement (SepCem) • Métier Mixed Concrete (Métier) FINANCIAL PERFORMANCE OVERVIEW – Neil Crafford-Lazarus • Statement of Comprehensive Income • Statement of Financial Position • Statement of Cash Flows OUTLOOK – Neil Crafford-Lazarus
Slide 4: SepCem increases market share
SEPCEM INCREASES MARKET SHARE □ SepCem reaches annualised capacity utilisation of 80% - steady state in May Aganang plant operating uninterrupted since April □ Imports significantly reduced by tariffs into the second largest cement market of KwaZulu Natal (KZN) estimated demand of approximately
Slide 5: Métier grows sales revenue
MÉTIER GROWS SALES REVENUE □ 14% revenue increase sales grow in spite of highly competitive environment □ Strong order book – four anchor contracts secured in April 2015 18-month contract period contracts range from 50,000m³ to 75,000m³ □ Downward pressure on margins in the interim period In
Slide 6: Financial Performance
FINANCIAL PERFORMANCE EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 November 2015 5
Slide 7: Salient points for the period
SALIENT POINTS FOR THE PERIOD □ Métier continues to perform well Revenue ▲from R404,2 million to R461,4 million EBIT margin lower at 13% as compared to 15% in comparative period □ Group net earnings▲from (R3,7 million) to R18,5 million EBIT margin▲from R21,5 million to R42,7 million Headline
Slide 8: SepCem revenue and profitability profile
SEPCEM REVENUE AND PROFITABILITY PROFILE □ Q1 2015 revenue of 2 000 40 Quarterly EBITDA Cumulative revenue (Rm) R521million at EBITDA 1 930 1 800 of 23% due to 30 1 600 maintenance downtime 26 20 at Aganang 23 1 400 1 440 18 □ Q2 2015 revenue of 15 10 1 200 R490 million and 1 000 0 EBITDA at 18% due
Slide 9: Statement of comprehensive income
STATEMENT OF COMPREHENSIVE INCOME 461 370 Revenue 404 157 775 425 -274 101 Cost of sales -225 941 -434 431 187 269 Gross profit 178 216 340 994 -141 899 Operating expenses -130 171 -263 204 51 482 Operating profit 53 072 87 789 -8 783 Equity-accounted investments -9 318 35 924 18 511 Total comprehen
Slide 10: Focus on earnings growth & quality
FOCUS ON EARNINGS GROWTH & QUALITY □ Group revenue increase mainly due to additional output from the eleventh Métier plant that started production in September 2014 □ Métier EBIT margins lower at 13% compared to 15% in comparative period mainly due to increased price competition as the constructio
Slide 11: Statement of financial position (R'000)
STATEMENT OF FINANCIAL POSITION (R’000) 999 867 Non-current assets 983 827 1 015 419 234 522 Current assets 166 358 204 070 1 234 389 Total assets 1 150 185 1 219 489 865 415 Equity holders 747 818 844 720 253 701 Non-current liabilities 169 374 265 830 115 273 Current liabilities 232 993 108 939 1
Slide 12: Strong balance sheet
STRONG BALANCE SHEET Changes in the financial position in the interim period from end of March 2015 □ Net asset value increased by 2,5% to 430,1 cents per share □ Tangible net asset value at 315,8 cents representing an increase of 3,6% □ Total liabilities reduced by 1,5% mainly due to Reduction in
Slide 13: Statement of cash flows (R'000)
STATEMENT OF CASH FLOWS (R’000) 79 838 70 914 30 747 -9 323 -12 500 Cash as at Net cash flow Net cash flow Net cash flow Cash as at beginning of from operating from investing from financing end of period period activities activities activities EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuhold
Slide 14: Positive net operating cash flows
POSITIVE NET OPERATING CASH FLOWS □ Net operating cash flow of R30,7 million (2014: R34,8 million) due to increased expenses in Métier □ Net financing cash outflow increased from R3,1 million to R12,5 million due to repayment of the loan by Métier □ Lower investing cash outflow because Métier has no
Slide 15: Outlook
OUTLOOK EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 November 2015 14
Slide 16: Medium term focus
MEDIUM TERM FOCUS SepCem □ Increase sales focus to gain market share □ Ensure sufficient and optimised logistics between plants and market □ Further increase production efficiency to optimise operating costs Métier □ Exploring further expansion opportunities to grow earnings and market share □ Short
Slide 17: Questions? Thank you for participating
QUESTIONS ? Thank you for participating EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 4 November 2015 16
Slide 18: Our investment proposition
OUR INVESTMENT PROPOSITION EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 November 2015 17
Slide 19: Our investment proposition
OUR INVESTMENT PROPOSITION EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 November 2015 18
Slide 20: Our investment proposition
OUR INVESTMENT PROPOSITION EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 November 2015 19
Slide 21: Our investment proposition
OUR INVESTMENT PROPOSITION EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 November 2015 20
Slide 22: Contact
CONTACT Sakhile Ndlovu Investor Relations Officer Tel: + 27 12 612 0210 Email: Sakhile@sepman.co.za Website: www.sephakuholdings.com EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 5 4 November 2015 21