Raubex Group Limited · JSE:RBX
Raubex — FY2017 Earnings Presentation
45 slides from Raubex's earnings presentation, Feb 28, 2017
Slide 1: Audited annual results for the year ended 28 February 2017
Audited annual results for the year ended 28 February 2017 Raubex Group Limited (Incorporated in the Republic of South Africa) Registration number 2006/023666/06 JSE share code: RBX ISIN: ZAE000093183 (“Raubex” or the “Group”) www.raubex.com
Slide 2: Agenda
Agenda • Company Overview • The Year in Review • Group Financial Highlights • Divisional Review • Order Book • Acquisitions • Major Projects Progress • Conclusion Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 1
Slide 3: Company overview
Company overview • Raubex was founded in 1974 by Koos Raubenheimer • Started as a road construction and bridge building company • Listed on the JSE in March 2007, now celebrating 10 years as a listed company • Substantial growth through strategic acquisitions that diversified the group into the mate
Slide 4: Business segments
Business segments Business segments Cross section of a road Materials Road Commercial quarries construction Contract crushing Material handling and and earthworks processing for mines Infrastructure development Electricity Road surfacing Water Housing and rehab Rail Notes: Raubex Group Limited Audit
Slide 5: Full road construction cycle
Full road construction Businesscycle segments Road construction and earthworks Road surfacing and rehab Earthworks 1 Mobile crushing 2 Compaction 3 Structures 4 Milling 5 Asphalt production 6 Asphalt paving 7 Bitumen 8 Road marking 9 Final product 10 Notes:
Slide 6: Materials Division
Materials Division Business segments Diamond Gold Iron ore Materials Commercial quarries Contract crushing Material handling and processing for mines Copper Coal Sand Aggregates Gypsum Commercial quarries Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 5
Slide 7: 10 Year Financial Review
10 Year Financial Review Financial review Revenue (Rbn) Operating Profit (Rm) * 10.00 1000 19.4% 9.00 900 19.1% 8.7% 8.00 800 2.44 219 9.0% 7.00 700 14.6% 2.33 221 8.6% 1.96 346 6.00 600 178 10.6% 8.5% 1.62 8.6% 400 5.00 1.50 500 20.2% 324 1.37 211 4.00 1.02 1.04 400 259 1.02 102 219 6.57 668 3.00 3
Slide 8: 10 Year Financial Review
10 Year Financial Review Financial review Cash Generated from Operations (Rm) Headline Earnings Per Share (cents) 1400 350 323.8 1200 300 1224 291.7 1000 250 269.1 1050 964 240.2 234.4 800 853 859 200 209.1 793 785 201.7 751 187.1 180.1 177.2 600 663 150 158.7 400 449 100 110 100 100 90 90 78 65 65
Slide 9: The Year in Review
The Year in Review • Consistently good results in a competitive market • Materials Division contributing 44,2% of operating profit • Geographical expansion strategy continued; acquired OMV Kimberley, Malmesbury Sand and Lime Sales • Favourable conditions in commercial aggregate market and mining sec
Slide 10: Group Financial Highlights
Group Financial Highlights • Revenue up 13,6% to R9,01bn (2016: R7,93bn) • Operating profit down 6,9% to R661,7m (2016: R710,6m) • HEPS down 14,0% to 201,7 cps (2016: 234,4 cps) • Nonrecurring Voluntary Rebuilding Programme (“VRP”) expense of R119,9m • Operating profit before VRP expense up 10,0% to
Slide 11: Income Statement
Income Statement Annual results Annual results Annual results 2017 2017 2016 Before VRP (R’000) IFRS (R’000) (R’000) Revenue 9 005 645 9 005 645 7 925 754 % growth 13,6% 13,6% 9,4% EBIT 781 559 661 675 710 563 % growth 10,0% (6,9%) 14,2% Operating margin 8,7% 7,3% 9,0% Net finance costs 40 307 43 57
Slide 12: Statement of Financial Position – Assets
Statement of Financial Position – Assets Annual results 2017 Annual results 2016 (R’000) (R’000) Non-current assets 3 479 462 3 454 583 Property, plant and equipment 2 364 319 2 335 748 Intangible assets 851 102 829 283 Investment in associates and JV’s 49 087 50 682 Deferred tax asset 40 938 42 478
Slide 13: Statement of Financial Position – Equity and Liabilities
Statement of Financial Position – Equity and Liabilities Annual results 2017 Annual results 2016 (R’000) (R’000) Equity 3 949 725 3 832 842 Attributable to shareholders 3 797 425 3 704 078 Non-controlling interest 152 300 128 764 Non-current liabilities 1 099 139 1 117 194 Borrowings 562 573 682 027
Slide 14: Statement of Cash Flows
Statement of Cash Flows Annual results 2017 Annual results 2016 Cash flows from operating activities R’000 R’000 Cash generated from operations 1 223 840 1 050 461 Finance costs – net (32 410) (42 650) Taxation paid (206 977) (190 449) Net cash generated from operating activities 984 453 817 362 Cas
Slide 15: Segmental analysis
Segmental analysis Road surfacing Road Operating segments Materials and rehab construction Infrastructure Other * Consol February 2017 Revenue (R’000) 2 439 016 3 575 199 1 435 421 1 556 009 - 9 005 645 Operating profit (R’000) 345 532 258 872 109 633 67 522 (119 884) 661 675 Operating margin 14,2%
Slide 16: Dividend Declaration
Dividend Declaration • Final cash dividend of 45 cents per share declared • Total dividend of 90 cents per share for the year • Consistent dividends paid since listing • Group policy remains 3 times cover • Relevant dates • Last day to trade cum dividend - Tuesday, 30 May 2017 • Commence trading ex
Slide 17: Materials
Materials • Revenue increased 4,6% to R2,44bn (2016: R2,33bn) • Operating profit decreased 13,6% to R345,5m (2016: R399,8m) • Operating margin decreased to 14,2% (2016: 17,1%); expect improvement in FY18 • Capital expenditure of R230,1m (2016: R323,2m) • Order book of R1,78bn (2016: R1,76bn) • Favou
Slide 18: Road Surfacing and Rehabilitation
Road Surfacing and Rehabilitation • Revenue increased 17,3% to R3,58bn (2016: R3,05bn) • Operating profit increased 49,9% to R258,9m (2016: R172,7m) • Operating margin increased to 7,2% (2016: 5,7%) • Capital expenditure of R130,1m (2016: R128,4m) • Order book of R2,68bn (2016: R3,09bn); expect cons
Slide 19: Road Construction and Earthworks
Road Construction and Earthworks • Revenue increased 2,5% to R1,44bn (2016: R1,40bn) • Operating profit increased 6,5% to R109,6m (2016: R103,0m) • Operating margin increased to 7,6% (2016: 7,4%) • Capital expenditure of R50,7m (2016: R48,1m) • Order book secured of R2,09bn (2016: R2,29bn); includes
Slide 20: Raubex Infrastructure
Raubex Infrastructure • Revenue increased 35,9% to R1,56bn (2016: R1,14bn) • Operating profit increased 92,5% to R67,5m (2016: R35,1m) • Operating margin increased to 4,3% (2016: 3,1%) • Capital expenditure of R29,6m (2016: R49,9m) • Order book of R1,48bn (2016: R1,12bn); growth in affordable housin
Slide 21: Raubex International
Raubex International • Revenue increased 1,3% to R1,22bn (2016: R1,20bn) • 13,5% of group total • Operating profit flat at R218,0m (2016: R218,3m) • 27,9% of group total • Operating margin of 17,9% (2016: 18,2%) • Order book of R1,90bn (2016: R2,13bn); 23,7% of group total • Includes Zambia Link 800
Slide 22: Order book
Order book ORDER BOOK FY15 Divisional Operating Profit FY 2016 FY 2017 SANRAL International SANRAL International 23% 24% 24% 26% Parastatal Parastatal 14% 15% Private Private 20% 18% Provincial Provincial 12% 8% Municipal 6% Municipal 10% Timing R8,266bn Timing R8,035bn FY 2017 R6,901bn FY 2018 R6,2
Slide 23: Acquisitions: OMV Kimberley Quarry
Acquisitions OMV Kimberley Quarry • Revenue (12 months) – R37,1m • Net profit (12 months) – R1,9m • Purchase price – R37,5m • Percentage acquired – 100% • Effective date - 9 March 2016 Notes:
Slide 24: Acquisitions: Lime Sales Ltd – Dolomite quarry in Moorreesburg
Acquisitions Lime Sales Ltd – Dolomite quarry in Moorreesburg • Estimated Revenue (12 months) – R46m • Estimated Net profit (12 months) – R7,2m • Purchase price – R37m • Percentage acquired – 74% • Effective date - 1 March 2017 Notes: Raubex Group Limited Audited annual results for the year ended 28
Slide 25: Industry matters: Settlement Agreement with Government
Industry matters Settlement Agreement with Government • Settlement agreement signed 11 October 2016 • Commonly known as the Voluntary Rebuilding Programme • SANRAL claims withdrawn; Raubex has no other pending claims • Contribution to fund of R15m p.a. over 12 years • Raubex have selected to develop
Slide 26: Major Projects Progress
Major Projects Progress Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 25
Slide 27: SANRAL: N1 Bloemfontein bypass – R614m
SANRAL: N1 Bloemfontein bypass – R614m Notes:
Slide 28: SANRAL: N1 Bloemfontein bypass – R614m
SANRAL: N1 Bloemfontein bypass – R614m Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 27
Slide 29: N3TC: Mooi River – R467m
N3TC: Mooi River – R467m Notes:
Slide 30: N3TC: Mooi River – R467m
N3TC: Mooi River – R467m Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 29
Slide 31: SANRAL: Port Elizabeth bypass – R198m
SANRAL: Port Elizabeth bypass – R198m Notes:
Slide 32: SANRAL: Port Elizabeth bypass – R198m
SANRAL: Port Elizabeth bypass – R198m Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 31
Slide 33: SANRAL: National Road R23 Volksrust – R176m
SANRAL: National Road R23 Volksrust – R176m Notes:
Slide 34: Namibia Roads Authority: Rosh Pinah to Oranjemund – R559m
Namibia Roads Authority: Rosh Pinah to Oranjemund – R559m Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 33
Slide 35: Bottelary River Bridge – R8m
Bottelary River Bridge – R8m Notes:
Slide 36: Flagship asphalt plant – Cliffdale KZN
Flagship asphalt plant – Cliffdale KZN Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 35
Slide 37: National Asphalt bitumen storage at Cliffdale
National Asphalt bitumen storage at Cliffdale Notes:
Slide 38: Integrated operations at Stilfontein
Integrated operations at Stilfontein OMV / B&E / National Asphalt Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 37
Slide 39: Tosas Wadeville facilities
Tosas Wadeville facilities Notes:
Slide 40: Horizontal directional drilling Port Alfred sea outfall – R42m
Horizontal directional drilling Port Alfred sea outfall for desalination plant – R42m Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 39
Slide 41: Prieska Solar Farm – R94m
Prieska Solar Farm – R94m Notes:
Slide 42: Clayville Res 3 RDP houses – R79m
Clayville Res 3 RDP houses – R79m Notes: Raubex Group Limited Audited annual results for the year ended 28 February 2017 41
Slide 43: Woodwind Estates Development
Woodwind Estates Development Notes:
Slide 44: Conclusion
Conclusion • Favourable conditions are expected to continue for the Materials Division • Acquisitions will continue to be pursued; geographical diversification • An increase in the activities of mining clients is anticipated • SANRAL budget increase is encouraging; some large projects in the pipelin
Slide 45: Notes:
Notes: