Raubex Group Limited · JSE:RBX
Raubex — FY2010 Earnings Presentation
22 slides from Raubex's earnings presentation, May 19, 2010
Slide 1: Raubex Group Limited Annual Results
Raubex Group Limited Annual Results for the year ended 28 February 2010 19 May 2010
Slide 2: Agenda
Agenda The Year in Review Highlights Financial Review Divisional Review Order Book Current and Recently Awarded Projects Conclusion Annual Results Presentation – May 2010 2
Slide 3: The Year in Review
The Year in Review Satisfactory results despite challenging trading conditions Continued good performance by all three divisions Margins stabilising as expected Ongoing government expenditure International drive progressing Management restructuring completed o Rudolf Fourie assuming CEO role with st
Slide 4: Performance Comparison
Performance Comparison Factors to consider when comparing FY 2009: o Deflationary environment o Higher depreciation policy o Forex impact o Increased competition o Building and residential sectors weakness o Impact of tax regulation amendments on cash flow o Extreme seasonal rains in South Africa’s
Slide 5: Group Financial Highlights
Group Financial Highlights Revenues up 10,1% to R4,58bn (2009: R4,16bn) Operating profit up 11,7% to R887,3m (2009: R794,6m) Group operating margin of 19,4% (2009: 19,1%) HEPS up 11% to 323,8 cents per share (2009: 291,7 cents per share) Cash flow from operations down 17,8% to R793,1m (2009: 964,4m)
Slide 6: Group Operational Highlights
Group Operational Highlights Stable operating margins: o Roadmac 20,5% (2009: 21,1%) o Raubex Construction 16,6% (2009: 13%) o Raumix 21,4% (2009: 21,6%) Phase 1 of Gauteng Freeway Improvement Project in advanced stages International strategy moving ahead; Namibian contract progressing well Heavy ra
Slide 7: Income Statement
Income Statement Annual results 2010 Annual results 2009 (R’000) (R’000) Revenue 4,582,883 4,162,780 % growth 10,1% - EBIT 887,263 794,594 % growth 11,7% - Profit before tax 858,576 757,467 Profit after tax 592,307 528,854 Share incentive scheme expenses* 12,838 14,884 Operating margin 19,4% 19,1% E
Slide 8: Balance Sheet
Balance Sheet Annual results 2010 Annual results 2009 (R’000) (R’000) Non-current assets 2,003,573 1,976,210 Property, plant and equipment 1,243,360 1,212,941 Intangible assets 723,824 724,289 Other 36,389 38,980 Current assets 1,822,837 1,476,926 Inventory 123,983 123,074 Receivables 984,087 594,27
Slide 9: Cash flow
Cash flow Annual results 2010 Annual results 2009 (R’000) (R’000) Cash flows from operating activities Cash generated from operations 793,099 964,405 Finance income 36,837 42,630 Finance cost (65,544) (79,841) Dividend received 4,139 - Taxation paid (300,122) (200,026) Net cash generated from operat
Slide 10: Dividend Declaration
Dividend Declaration Final cash dividend declared of 75 cents per share o Interim cash dividend of 35 cents per share Relevant dates o Last day to trade cum dividend Friday, 4 June 2010 o Commence trading ex dividend Monday, 7 June 2010 o Record date Friday, 11 June 2010 o Payment date Monday, 14 Ju
Slide 11: Segmental Analysis
Segmental Analysis Raubex Business segments Raumix Roadmac Construction Consolidated Feb 2010 Revenue (R’000) 1,020,927 1,976,883 1,585,073 4,582,883 Operating profit (R’000) 218,698 405,414 263,151 887,263 Operating Margin 21,4% 20,5% 16,6% 19,4% Feb 2009 Revenue (R’000) 1,022,455 2,045,908 1,094,4
Slide 12: Roadmac
Roadmac Revenue decreased 3,4% to R1,98bn (2009: R2,05bn); 43,1% of total group revenue Operating profit decreased 5,9% to R405,4m (2009: R431m) Operating margin decreased to 20,5% (2009: 21,1%) Capex of R79,5m (2009: R90,4m) Order book of R2,1bn Increased competition requiring more aggressive tende
Slide 13: Roadmac Strategic Outlook
Roadmac Strategic Outlook Short term (FY2011) o Major asphalt work on GFIP and other areas to pick up in H1 2011 o Maintenance work to increase in-line with road infrastructure improvements o Margins to decrease to around 18-20% Long term o Economic growth necessary to sustain government spending o
Slide 14: Raubex Construction
Raubex Construction Revenue increased 44,8% to R1,59bn (2009: R1,09bn) Operating profit increased 84,4% to R263,2m (2009: R142,7m) Operating margin increased to 16,6% (2009: 13%) All contracts progressing well Capex of R73,9m (2009: R74,8m) Order book secured – R1,778bn Annual Results Presentation –
Slide 15: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook Short (FY2011) o Order book secured; aggressively seeking long-term workflow o Margins to remain stable (13-15%) o Higher margins work packages expected on various contracts o Solid earnings and revenue growth expected Long term o Economic growth necessary to su
Slide 16: Raumix
Raumix Revenue flat at R1,02bn (2009: R1,02bn) Operating profit decrease by 1% to R218,7m (2009: R220,9m) Operating margin constant at 21,4% (2009: 21,6%) Capital expenditure of R99m (2009: R217,6m) General construction and residential building markets remain weak B&E International performing well M
Slide 17: Raumix Strategic Outlook
Raumix Strategic Outlook Short term (FY2011) o Margins to decrease to around 15-18% o Residential market bottoming out o Increased activity in contract crushing o Credit risk management o Mining activities improving; 2 diamonds contracts re-awarded Long term o Demand dependent on recovery in the res
Slide 18: Raubex Construction International
Raubex Construction International Revenue up 57,6% to R507m (2009: R321,7m) o 11,1% of Group total Operating profit up to R35,6m (2009: R31m) o 4% of Group total Operating margin decreased to 7% (2009: 9,6%) Sustained activity in Zambia; surfacing teams dispatched Underperformance in Zambia attribut
Slide 19: Group Order Book Revenue Streams
Group Order Book Revenue Streams International - 18.90% SANRAL - 35.20% Private - 13.20% Other Parastatals - 6.70% Provincial - 14.8% Municipal - 11.20% Order Book R4,717bn Time Distribution FY 2011 R3,803bn FY 2012 R0,860bn FY 2013 R0,054bn Annual Results Presentation – May 2010 19
Slide 20: Current Projects Sample
Current Projects Sample Raubex Construction Location Description Duration Price Namibia Upgrading and construction of Road between Elundu and Rundu May 2009 to R1bn August 2011 Gauteng Upgrading of National Route 21 between the Olifantsfontein and September 2008 to R719m Hans Strydom interchanges Au
Slide 21: Recently Awarded Projects Sample
Recently Awarded Projects Sample Division Location Description Duration Price Roadmac Gauteng Reconstruction of the N14 from Ventersdorp to the North 22 months R115m West Province border Raubex Malawi Upgrading of road between Mchinji and Kawere 18 months EUR7.3m Roadmac Gauteng Maintenance and reha
Slide 22: Conclusion
Conclusion Pleased to have grown the business and dividend notwithstanding adverse conditions during the year Strong balance sheet Sustained strong cash generation International expansion continues; new geographies entered Short term order book stable (all work guaranteed) SANRAL committed to planne