Raubex Group Limited · JSE:RBX
Raubex — H1 2009 Earnings Presentation
25 slides from Raubex's earnings presentation, Nov 10, 2008
Slide 1: Interim Results Presentation
Interim Results Presentation for the six months ended 31 August 2008 10 November 2008
Slide 2: Agenda
Agenda The Period in Review Highlights Financial Review Divisional Review Corporate Information Current and Recently Awarded Projects Conclusion
Slide 3: CEO statement and company background
“We are very pleased to report yet another solid performance both operationally and financially for the first half of this financial year. “The strategy that was presented to the market during our listing process continues to be delivered on and through our proactive and aggressive approach, we are
Slide 4: The Period in Review
The Period 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 Good winter Government expenditure continues unab
Slide 5: Group Financial Highlights
Group Financial Highlights Revenue up 131.7% to R2,23bn (H1 2008: R963,5m) Operating profit up 108.1% to R398m (H1 2008: R191,2m) HEPS up 80.5% to 144,6 cps (H1 2008: 80,1 cps) Strong cash flow from operations up 88.3% to R333,3m (H1 2008: R177m) Capex spend of R232m Full year capex likely to be h
Slide 6: Group Operational Highlights
Group Operational Highlights Operating margins stabilised Roadmac 18.7 % (H1 2008: 20.2%) Raubex Construction 12.3 % (H1 2008: 12%) Raumix 21.2 % (H1 2008: 28.8%) All acquisitions fully integrated during the period Gauteng Freeway Improvement Project underway Diversification of client base acc
Slide 7: Financial Review – Income Statement
Financial Review – Income Statement Interim results Interim results Annual results 31 August 2008 31 August 2007 29 February 2008 (R’000) (R‟000) (R‟000) Revenue 2,232,676 963,498 2,135,778 % growth 131.7% 21.5%** 79.4% EBIT (R’000) 397,968 191,224 431,282 % growth 108.1% 66%** 121.7% Profit before
Slide 8: Financial Review – Balance Sheet
Financial Review – Balance Sheet Interim results Interim results Annual results 31 August 2008 31 August 2007 29 February 2008 R’000 R‟000 R‟000 Non-current assets 1,971,169 719,856 882,132 Property, plant and equipment 1,159,040 556,221 670,837 Intangible assets 771,535 161,466 198,939 Other 40,594
Slide 9: Financial Review – Cashflow
Financial Review – Cashflow Interim results Interim results Annual results 31 August 2008 31 August 2007 29 February 2008 R’000 R‟000 R‟000 Cash flows from operating activities Cash generated from operations 333,287 177,045 448,814 Finance income 20,722 5,097 12,997 Finance costs (33,807) (13,108) (
Slide 10: Dividend Declaration
Dividend Declaration Interim cash dividend declared – 30 cps Relevant dates Last day to trade cum dividend Friday, 28 November 2008 Commence trading ex dividend Monday, 01 December 2008 Record date Friday, 05 December 2008 Payment date Monday, 08 December 2008
Slide 11: Financial Review – Segmental Analysis
Financial Review – Segmental Analysis Raubex Segmental Analysis Raumix Roadmac Construction Consolidated Aug 08 Revenue 544,446,842 1,177,227,346 511,001,764 2,232,675,952 Operating profit 115,469,355 219,854,748 62,643,916 397,968,019 Operating Margin 21.2% 18.7% 12.3% 17.8% Aug 07 Segmental Revenu
Slide 12: Roadmac
Roadmac Revenue increased 108% to R1,18bn (H1 2008: R566,1m) Operating profit increased 92.5% to R219,9m (H1 2008: R114,2m) Operating margin stabilised to 18.7% (H1 2008: 20,2%) 52.7% of total group revenue Capex of R42m Order book – R1,9bn Positive weather and geographical mix during winter months
Slide 13: Roadmac Strategic Outlook
Roadmac Strategic Outlook “Annuity” revenue stream continues to develop Work pipeline continues to grow in-line with road infrastructure spend Margins stabilised Asphalt production capacity in GP and KZN established through Akasia and National Asphalt acquisitions – seeking opportunities in other pr
Slide 14: Raubex Construction
Raubex Construction Revenue up 128.8% to R511m (H1 2008: R223,4m) Operating profit up 133.2% to R62,6m (H1 2008: R26,9m) Operating margin increased slightly to 12.3% (H1 2008: 12.0%) Awarding of a number of large contracts nationally Order book at R2,15bn Capex of R47,9m Additional capacity and skil
Slide 15: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook Aggressively securing long-term workflow Margins stabilised Ongoing PPPs/concessions negotiations Infrastructure expenditure and associated tenders continue unabated
Slide 16: Raumix
Raumix Revenue increased 212.8% to R544,5m (H1 2008: R174,0m) Operating profit up 130.4% to R115,5m (H1 2008: R50,1m) Operating margin decrease to 21.2% (H1 2008: 28.8%) Capital expenditure of R142,1m (H1 2008: R64,8m) Acquisitions of B&E International and Queenstown & Aliwal Quarries bedded down Or
Slide 17: Raumix Strategic Outlook
Raumix Strategic Outlook Margins reduction due to acquisitions Expected to stabilise at current levels Growing contract mining exposure Continued slowdown in demand from residential building market Continually seeking selective acquisition targets Management leadership realignment effected Tobia
Slide 18: Raubex Construction International
Raubex Construction International Revenue increased 102.6% to R149,5m (H1 2008: R73,8m) 6.7% of Group total Operating profit increase by 109.7% to R23,3m (H1 2008: R11,1m) 5.9% of Group total Operating margin of 15.6% Additional resources dispatched to Zambia (8 contracts underway) First steps i
Slide 19: Shareholder Spread at 31 August 08
Shareholder Spread at 31 August 08 Local 32.5% International 67.5% Investors 41.80% BEE 25.10% Management 33.10%
Slide 20: Group Order Book Revenue Streams
Group Order Book Revenue Streams Parastatal 23.5% SANRAL 40.5% Private 20.2% International 15.8%
Slide 21: Current Projects Sample
Current Projects Sample Raubex Construction Location Description Duration Value Free State Upgrading and rehabilitation of National Route May 07 to R330m 1 between Glen Lyon and Zandkraal December 09 Mpumalanga Rehabilitation of National Route 11 between June 07 to R298m Amersfoort and Ermelo June 2
Slide 22: Current Projects Sample
Current Projects Sample Raubex Construction International Location Description Duration Value Zambia Reconstruction of approx 75 km between Chipata July 08 to R160m and Lundazi August 09 Zambia Reconstruction of 200 km between Lusaka and July 08 to R160m Luangwa River Bridge October 09 Zambia Recons
Slide 23: Recently Awarded Projects Sample
Recently Awarded Projects Sample Raubex Construction Location Description Duration Value Gauteng Upgrading of National Route 21 between the September 08 to R719m Olifantsfontein and Hans Strydom interchanges March 2010 KwaZulu Natal Rehabilitation and upgrading of National Route November 08 to R243m
Slide 24: Conclusion
Conclusion Strong financial performance Balance of acquisitive and organic growth paying off Careful approach to acquisitive growth in the short-term Continued demand for our line of work Capacity to grow order book Exploring new geographies more aggressively Securing medium-term pipeline of work
Slide 25: Q&A
Q&A