Raubex Group Limited · JSE:RBX
Raubex — H1 2012 Earnings Presentation
20 slides from Raubex's earnings presentation, Nov 7, 2011
Slide 1: Raubex Group Limited Interim Results for the period ended 31 August 2011
RAUBEX GROUP LIMITED Interim Results for the period ended 31 August 2011 7 November 2011
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 • Satisfactory results given an extremely difficult and highly competitive market • Exceptional performance from the Materials division • Disappointing performance from the Roads divisions – Competitive landscape and downward pressure on margins worse than anticipated • Bitumen
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenues up 3,7% to R2,61bn (H1 2011: R2,52bn) • Operating profit down 31,4% to R282m (H1 2011: R411,2m) • Group operating margin of 10,8% (H1 2011: 16,3%) • HEPS down 37,1% to 92,9 cents per share (H1 2011: 147,6 cents per share) • Cash flow from operations down 34,8% t
Slide 5: Income Statement
Income Statement Interim results 2012 Interim results 2011 Annual results 2011 (R’000) (R’000) (R’000) Revenue 2,609,998 2,516,208 4,545,974 % growth 3,7% 10,7% (0,8%) EBIT 282,052 411,229 662,558 % growth (31,4%) (6,6%) (25,3%) Profit before tax 277,391 404,017 649,105 Profit after tax 176,744 275,
Slide 6: Statement of Financial Position
Statement of Financial Position Interim results 2012 Interim results 2011 Annual results 2011 (R’000) (R’000) (R’000) Non-current assets 2,095,121 2,033,928 2,083,210 Property, plant and equipment 1,294,874 1,236,262 1,276,133 Intangible assets 760,046 762,626 761,445 Other 40,201 35,040 45,632 Curr
Slide 7: Statement of Cash Flows
Statement of Cash Flows Interim results 2012 Interim results 2011 Annual results 2011 (R’000) (R’000) (R’000) Cash flows from operating activities Cash generated from operations 263,269 403,840 853,013 Finance income 13,986 16,569 30,422 Finance cost (18,647) (23,781) (43,875) Dividend received 2,55
Slide 8: Dividend Declaration
Dividend Declaration • Interim cash dividend declared of 25 cents per share • Relevant dates – Last day to trade cum dividend Friday, 25 November 2011 – Commence trading ex dividend Monday, 28 November 2011 – Record date Friday, 2 December 2011 – Payment date Monday, 5 December 2011
Slide 9: Segmental Analysis
Segmental Analysis Raubex Business segments Raumix Roadmac Construction Consolidated Aug 2011 Revenue (R’000) 696,510 1,337,594 575,894 2,609,998 Operating profit (R’000) 126,076 130,938 25,038 282,052 Operating Margin 18,1% 9,8% 4,3% 10,8% Aug 2010 Revenue (R’000) 517,662 1,294,267 704,279 2,516,20
Slide 10: Roadmac
Roadmac • Revenue increased 3,4% to R1,34bn (H1 2011: R1,29bn); 51,3% of total Group revenue • Operating profit decreased 35,2% to R130,9m (H1 2011 : R202,1m) • Operating margin decreased to 9,8% (H1 2011 : 15,6%) • Capex of R22,6m (H1 2011: R29,7m) • Order book of R2,362bn • Margins decreased more
Slide 11: Roadmac Strategic Outlook
Roadmac Strategic Outlook • Short term (FY2012) – Contracting margins not expected to decrease substantially from current levels; subject to bitumen situation being resolved – Persisting bitumen supply problem to impact on margins significantly • Long term – Expansion into SADC – Provincial and muni
Slide 12: Raubex Construction
Raubex Construction • Revenue decreased 18,2% to R575,9m (H1 2011: R704,3m) • Operating profit decreased 76,5% to R25m (H1 2011 : R106,4m) • Operating margin decreased to 4,3% (H1 2011 : 15,1%); higher decrease than anticipated due to competition and Free State contracts • Capex of R16,2m (H1 2011 :
Slide 13: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook • Short term (FY2012) – Order book secured; aggressively seeking long-term workflow – Margins not expected to decrease substantially from the current levels dependent on bitumen supply and Free State projects controversy – Fast track application to the Competiti
Slide 14: Raumix
Raumix • Revenue increased 34,6% to R696,5m (H1 2011: R517,7m) • Operating profit increased by 22,7% to R126,1m (H1 2011: R102,7m) • Operating margin decreased to 18,1% (H1 2011: 19,8%) • Capital expenditure of R49,5m (H1 2011: R62m) • General construction and residential building markets remain wea
Slide 15: Raumix Strategic Outlook
Raumix Strategic Outlook • Short term (FY2012) – Margins stabilising at around 15-18% – Increased activity in contract crushing and mining – Credit risk management • Long term – Demand dependent on recovery in the residential and commodity sectors – Demand from low-cost housing programmes – SADC exp
Slide 16: Raubex International
Raubex International • Revenue up 46,7% to R413,9m (H1 2011: R282,1m) – 15,9% of Group total • Operating profit up 94,6% to R36,4m (H1 2011 : R18,7m) – 12,9% of Group total • Operating margin increased to 8,8% (H1 2011 : 6,6%) • Major portions of Namibian contracts nearing completion • Increased min
Slide 17: Group Order Book
Group Order Book International – 13,4% SANRAL – 42% Higher percentage of Private – lower margin work 17,9% going forward Other Parastatals – 3,7% Provincial – 13,3% Municipal – 9,7% Order Book R4,643bn Time Distribution FY 2012 R2,571bn FY 2013 R1,886bn FY 2014 R0,116bn Beyond R0,070bn
Slide 18: Major Projects Progress
Major Projects Progress N12 - Tom Jones to Daveyton R583 289 350 To be completed in Aug 2013
Slide 19: Major Projects Progress
Major Projects Progress Namibia – Rundu to Elundu Namibia – Namdeb R1 001 000 000 R329 000 000 To be completed Dec 2011 Length: 1 to 3 years
Slide 20: 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 • Market dynamics have changed; tolling controversy potentially impacting on pl