Raubex Group Limited · JSE:RBX
Raubex — FY2013 Earnings Presentation
27 slides from Raubex's earnings presentation, May 13, 2013
Slide 1: Audited Annual Results for the year ended 28 February 2013
Audited Annual Results for the year ended 28 February 2013 13 May 2013
Slide 2: Agenda
Agenda • The Year in Review • Group Financial Highlights • Financial Review • Divisional Review • Order Book • BEE • Strategic Outlook • Major Projects Progress • Conclusion
Slide 3: The Year in Review
The Year in Review • Strong operational performance given market conditions • Competition Commission; provision made for full settlement • Competitive landscape stabilised; although still difficult • Competitor attrition continues • Government tender volumes maintained • Bitumen supply problems addr
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenues up 12,0% to R5,64bn (2012: R5,03bn) • Operating profit down 9,0% to R483,8m (2012: R531,5m) • Competition Commission settlement provision of R58,8m • Normalised operating profit up 2,1% • Group operating margin of 8,6% (2012: 10,6%) • Normalised Group operating
Slide 5: Income Statement
Income Statement Annual results 2013 Annual results 2012 (R’000) (R’000) Revenue 5,635,519 5,032,625 % growth 12,0% EBIT 483,805 531,462 % growth (9,0%) Profit before tax 477,139 519 427 Profit after tax 318,568 341 197 Share incentive scheme expenses 26,071 13,488 Operating margin 8,6% 10,6% Effect
Slide 6: Statement of Financial Position
Statement of Financial Position Annual results 2013 Annual results 2012 (R’000) (R’000) Non-current assets 2,349,119 2,129,726 Property, plant and equipment 1,561,232 1,353,753 Intangible assets 763,951 757,629 Other 23,936 18,344 Current assets 2,508,862 2,256,828 Inventory 245,546 153,157 Trade an
Slide 7: Statement of Cash Flows
Statement of Cash Flows Annual results 2013 Annual results 2012 (R’000) (R’000) Cash flows from operating activities Cash generated from operations 859,007 663,228 Finance income 33,518 29,353 Finance cost (40,184) (41,388) Dividend received 1,037 4,264 Taxation paid (173,269) (154,701) Net cash gen
Slide 8: Dividend Declaration
Dividend Declaration • Final gross cash dividend declared of 35 cents per share • Interim cash dividend of 30 cents per share • 3 X cover before provision • Relevant dates • Last day to trade cum dividend Friday, 31 May 2013 • Commence trading ex dividend Monday, 3 June 2013 • Record date Friday, 7
Slide 9: Segmental Analysis
Segmental Analysis Business segments Raumix Roadmac Raubex Const. Raubex Infra Consolidated February 2013 Revenue (R’000) 1,501,732 2,753,772 1,217,189 162,826 5,635,519 Operating profit (R’000) 218,935 199,545 61,656* 3,669 483,805 Operating margin 14,6% 7,2% 5,1% 2,3% 8,6% February 2012 Revenue (R
Slide 10: Roadmac
Roadmac • Revenue up 9,1% to R2,75bn (2012: R2,52bn); 48,9% of total group revenue • Operating profit decreased 13,0% to R199,5m (2012: R229,4m) • Operating margin decreased to 7,2% (2012: 9,1%) • Capex of R126,3m (2012: R71m) • Order book of R2,171bn • Margins decreased more than expected due to co
Slide 11: Raubex Construction
Raubex Construction • Revenue increased 7,1% to R1,22bn (2012: R1,14bn) • Operating profit decreased 32,2% to R61,7m (2012: R90,9m) • Operating margin decreased to 5,1% (2012: 8,0%) • Competition Commission provision of R58,8m • Normalised operating profit before provision increased 32,5% to R120,5m
Slide 12: Raumix
Raumix • Revenue increased 9,4% to R1,50bn (2012: R1,37bn) • Operating profit increased 3,7% to R218,9m (2012: R211,2m) • Operating margin decreased to 14,6% (2012: 15,4%) • Improved performance from commercial quarries • Margin pressure in contract crushing market • Mining contracts on-going; expos
Slide 13: Raubex International
Raubex International • Revenue down 48,1% to R461,7m (2012: R890,4m) • 8,2% of group total • Operating profit down 27,5% to R84,2m (2012: R116,1m) • 17,4% of group total • Operating margin increased to 18,2% (2012: 13%) • Namibia road contract completed; maintenance contracts on-going • Malawi contr
Slide 14: Group Order Book
Group Order Book Order Book R5,235bn FY 2014 R4,115bn FY 2015 R1,103bn FY 2016 R0,017bn
Slide 15: Black Economic Empowerment
Black Economic Empowerment • Construction • Raubex Construction; broad based level 2 contributor • Competitive score amongst peer group for tender purposes • Focus on improving all elements of the scorecard • Mining • Department of Mineral Resources requires 26% direct shareholding • Mining licenses
Slide 16: Roadmac Strategic Outlook
Roadmac Strategic Outlook • Short term (FY2014) • Margins to remain in the current range • Competitive landscape to maintain pressure on margins • Asphalt margins • Asphalt new technology • Bitumen supply issues have been resolved • Long term • Provincial and municipal expenditure needs to be expand
Slide 17: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook • Short term (FY2014) • Order book secured; seeking long term workflow • Margins expected to remain under pressure • Long term • Provincial and municipal expenditure needs to be expanded • General construction cycle needs to improve • Tolling stalemate needs to
Slide 18: Raumix Strategic Outlook
Raumix Strategic Outlook • Short term (FY2014) • Margins stabilising at around 14-16% • Credit risk management • Mining activity: • Strikes • Global demand for commodities • Long term • Demand dependent on continuous recovery in the residential and commodity sectors • Demand from low-cost housing pr
Slide 19: Raubex Infra
Raubex Infra • New division specialising in solutions for: • Energy (including solar and wind) • Rail and related infrastructure • Telecommunications • Pipeline • Housing • Diversified revenue stream • Revenue of R162,8m with operating profit of R3,7m • Margin of 2,3%; contracts in early stage of co
Slide 20: Raubex Infra Strategic Outlook
Raubex Infra Strategic Outlook • Short term (FY2014) • Order book secured • Margins of 4% - 7% • Long term • Grow order book and capacity • Large growth potential in new disciplines • Margins to improve
Slide 21: Major Projects Progress
Major Projects Progress Roadmac National Asphalt N1 – Vaal River Recycled asphalt process
Slide 22: Major Projects Progress
Major Projects Progress Raubex Construction OR Tambo International Airport Taxiway upgrades R77,4m Completion date: February 2013 Raubex Construction N12 - Tom Jones to Daveyton R583,3m Est. completion date: August 2013
Slide 23: Major Projects Progress
Major Projects Progress Raumix Rossway - Midrand Canyon Rock Quarry B&E International Belfast - Glisa Coal operations
Slide 24: Major Projects Progress
Major Projects Progress L&R Civils Bloemfontein Naval Hill Pipeline R31,5m Est. completion date: May 2013 Raubex Infra Free State & Northern Cape Lesedi and Letsatsi solar farms R74m Est. completion date: Dec 2013
Slide 25: Major Projects Progress
Major Projects Progress Raubex Infra Southern DRC Fibre Optic Installation R35m Est. completion date: August 2013
Slide 26: Major Projects Progress
Major Projects Progress Tosas Binder application Tosas Laboratories
Slide 27: Conclusion
Conclusion • Achieved strong operational results given challenging conditions • Strong balance sheet and cash generation • International expansion; new geographies being explored • Short term order book stable; margins pressure easing slightly • Upturn in the cycle dependent on: • Large projects mat