Raubex Group Limited · JSE:RBX
Raubex — H1 2011 Earnings Presentation
20 slides from Raubex's earnings presentation, Nov 8, 2010
Slide 1: Raubex Group Limited Interim Results
Raubex Group Limited Interim Results for the six months ended 31 August 2010 8 November 2010
Slide 2: Agenda
Agenda The Period in Review Highlights Financial Review Divisional Review Order Book Major Project Progress Conclusion Interim Results Presentation – November 2010 2
Slide 3: The Period in Review
The Period in Review Satisfactory results despite challenging trading conditions Continued good performance by all three divisions Margins decreased in line with guidance Ongoing government expenditure evident; supported by strong tender volumes International drive moving ahead: o Namibia progressin
Slide 4: Group Financial Highlights
Group Financial Highlights Revenues up 10,7% to R2,52bn (H1 2010: R2,27bn) Operating profit down 6,6% to R411,2m (H1 2010: R440,2m) Group operating margin of 16,3% (H1 2010: 19,4%) HEPS down 7,4% to 147,6 cents per share (H1 2010: 159,4 cents per share) Cash flow from operations down 13,5% to R403,8
Slide 5: Income Statement
Income Statement Interim results Interim results Annual results 31 August 2010 31 August 2009 28 February 2010 (R’000) (R’000) (R’000) Revenue 2,516,208 2,273,345 4,582,883 % growth 10,7% 1,8% 10,1% EBIT 411,229 440,183 887,263 % growth (6,6%) 10,6% 11,7% Profit before tax 404,017 428,946 858,576 Pr
Slide 6: Statement of Financial Position
Statement of Financial Position Interim results Interim results Annual results 31 August 2010 31 August 2009 28 February 2010 (R’000) (R’000) (R’000) Non-current assets 2,033,928 2,042,427 2,003,573 Property, plant and equipment 1,236,262 1,264,648 1,243,360 Intangible assets 762,626 727,464 723,824
Slide 7: Statement of Cash flows
Statement of Cash flows Interim results Interim results Annual results 31 August 2010 31 August 2009 28 February 2010 (R’000) (R’000) (R’000) Cash flows from operating activities Cash generated from operations 403,840 466,573 793,099 Finance income 16,569 21,710 36,837 Finance cost (23,781) (32,947)
Slide 8: Dividend Declaration
Dividend Declaration Interim cash dividend declared of 32 cents per share Relevant dates o Last day to trade cum dividend Friday, 26 November 2010 o Commence trading ex dividend Monday, 29 November 2010 o Record date Friday, 3 December 2010 o Payment date Monday, 6 December 2010 Interim Results Pres
Slide 9: Segmental Analysis
Segmental Analysis Raubex Business segments Raumix Roadmac Construction Consolidated Aug 2010 Revenue (R’000) 517,662 1,294,267 704,279 2,516,208 Operating profit (R’000) 102,745 202,125 106,359 411,229 Operating margin 19,8% 15,6% 15,1% 16,3% Aug 2009 Revenue (R’000) 581,431 943,593 748,321 2,273,3
Slide 10: Roadmac
Roadmac Revenue increased 37,2% to R1,29bn (H1 2010: R943,6m); 51,4% of total Group revenue Operating profit increased 2% to R202,1m (H1 2010: R198,2m) Operating margin decreased to 15,6% (H1 2010: 21%) Capex of R29,7m (H1 2010: R42,7m) Order book of R2,043bn Increased competition requiring more agg
Slide 11: Roadmac Strategic Outlook
Roadmac Strategic Outlook Short term (FY2011) o Major asphalt work on GFIP to pick up in H2 2011 o Maintenance work to increase in-line with road infrastructure improvements o Margins to remain under pressure (14-16%) Long term o Economic growth necessary to sustain government spending o Expansion i
Slide 12: Raubex Construction
Raubex Construction Revenue decreased 5,9% to R704,3m (H1 2010: R748,3m) Operating profit increased to R106,4m (H1 2010: R105,5m) Operating margin increased to 15,1% (H1 2010: 14,1%) All contracts progressing well Capex of R28m (H1 2010: R67,8m) Order book secured – R1,712bn New Free State provincia
Slide 13: 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%) Long term o Economic growth necessary to sustain government spending o Ongoing PPPs/concessions negotiations o N1N2 Winelands o GFIP Phase 2 o Wild C
Slide 14: Raumix
Raumix Revenue decreased 11% to R517,7m (H1 2010: R581,4m) Operating profit decrease by 24,7% to R102,7m (H1 2010: R136,4m) Operating margin decreased to 19,8% (H1 2010: 23,5%) Capital expenditure of R62m (H1 2010: R54,2m) General construction and residential building markets remain weak B&E Interna
Slide 15: 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 Long term o Demand dependent on recovery in the residential and commodity sectors o
Slide 16: Raubex Construction International
Raubex Construction International Revenue up 37,1% to R282,1m (H1 2010: R205,8m) o 11,2% of Group total Operating profit up 82,5% to R18,7m (H1 2010 : R10,3m) o 4,5% of Group total Operating margin increased to 6,6% (H1 2010 : 5,0%) Underperformance in Zambia attributable to Kwacha/Rand exchange rat
Slide 17: Group Order Book Revenue Streams
Group Order Book Revenue Streams International – 16.7% SANRAL – 31.8% Private – 19% Other Parastatals – 4.9% Provincial – 17% Municipal – 10.6% Order Book R4,702bn Time Distribution FY 2011 R2,103bn FY 2012 R2,502bn FY 2013 R0,097bn Interim Results Presentation – November 2010 17
Slide 18: Major Projects Progress
Major Projects Progress Cape Town - R300 Link Road R525 000 000 GFIP - R21 R882 960 000 Interim Results Presentation – November 2010 18
Slide 19: Major Projects Progress (cont.)
Major Projects Progress (cont.) Namibia - Rundu to Elundu R1 001 000 000 N1 – Winburg to Bloemfontein R330 486 000 Interim Results Presentation – November 2010 19
Slide 20: Conclusion
Conclusion Achieved satisfactory results given challenging market conditions Strong balance sheet Sustained strong cash generation International expansion continues; new geographies being explored Short term order book stable (all work guaranteed) SANRAL committed to planned expenditure; supported b