Raubex Group Limited · JSE:RBX
Raubex — H1 2020 Earnings Presentation
33 slides from Raubex's earnings presentation, November 2019
Slide 1: Unaudited Interim Results
UNAUDITED INTERIM RESULTS for the six months ended 31 August 2019 Raubex Group Limited (Incorporated in the Republic of South Africa) Registration number 2006/023666/06 Share code: RBX ISIN: ZAE000093183 (“Raubex” or the “group”) www.raubex.com
Slide 2: Agenda
Agenda • The Period in Review • Group Financial Highlights • Divisional Review • Order Book • Major Projects Progress • Conclusion Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 1
Slide 3: The Period in Review
The Period in Review • Overall improvement in results off a low base • Losses in the roads and earthworks division have been curtailed • Rightsizing initiatives undertaken in prior year have been effective • The division is now better positioned to manage the lower volume of construction work on han
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenue down 1,9% to R4,40bn (H1 2019: R4,48bn) • Operating profit up 37,0% to R216,3m (H1 2019: R157,8m) • Group operating profit margin of 4,9% (H1 2019: 3,5%) • HEPS up 64,1% to 58,6 cps (H1 2019: 35,7 cps) • Cash generated from operations up 41,4% to R414,8m (H1 2019
Slide 5: Income Statement
Income Statement Interim results Interim results Annual results 2020 2019 2019 (R’000) (R’000) (R’000) Revenue 4 398 589 4 483 609 8 519 142 % growth (1,9%) (4,0%) (0,3%) EBIT 216 259 157 828 207 045 % growth 37,0% (57,4%) (69,2%) Operating margin 4,9% 3,5% 2,4% Net finance costs 16 257 14 048 25 24
Slide 6: Statement of Financial Position – Assets
Statement of Financial Position – Assets Interim results Interim results Annual results 2020 2019 2019 (R’000) (R’000) (R’000) Non-current assets 3 985 344 3 918 395 3 831 886 Property, plant and equipment 2 427 902 2 507 223 2 535 579 Right-of-use assets 263 202 - - Intangible assets 1 033 193 1 09
Slide 7: Statement of Financial Position – Equity and Liabilities
Statement of Financial Position – Equity and Liabilities Interim results Interim results Annual results 2020 2019 2019 (R’000) (R’000) (R’000) Equity 4 400 252 4 289 263 4 327 124 Attributable to shareholders 4 135 338 4 045 537 4 064 852 Non-controlling interest 264 914 243 726 262 272 Non-current
Slide 8: Statement of Cash Flows
Statement of Cash Flows Interim results Interim results Annual results 2020 2019 2019 Cash flows from operating activities (R’000) (R’000) (R’000) Cash generated from operations 414 815 293 324 788 924 Finance costs – net (11 030) (7 248) (9 170) Taxation paid (79 576) (68 495) (163 926) Net cash ge
Slide 9: Segmental analysis
Segmental analysis Roads and Operating segments Materials Earthworks Infrastructure Consolidated August 2019 Revenue (R’000) 1 359 389 1 758 266 1 280 934 4 398 589 Operating profit (R’000) 144 103 (5 142) 77 298 216 259 Operating margin 10,6% (0,3%) 6,0% 4,9% August 2018 Revenue (R’000) 1 523 750 1
Slide 10: Dividend Declaration
Dividend Declaration • Interim cash dividend declared of 22 cents per share • 3 times cover policy maintained • Relevant dates • Last day to trade cum dividend - Tuesday, 26 November 2019 • Commence trading ex dividend - Wednesday, 27 November 2019 • Record date - Friday, 29 November 2019 • Payment
Slide 11: Materials Division
Materials Division • Revenue decreased 10,8% to R1,36bn (H1 2019: R1,52bn) • Operating profit decreased 24,9% to R144,1m (H1 2019: R191,8m) • Operating margin decreased to 10,6% (H1 2019: 12,6%) • Capital expenditure of R87,0m (H1 2019: R149,0m) • Order book of R1,95bn (H1 2019: R1,76bn) • Softer re
Slide 12: Roads and Earthworks Division
Roads and Earthworks Division • Revenue decreased 7,7% to R1,76bn (H1 2019: R1,90bn) • Operating loss decreased 91,5% to - R5,1m loss (H1 2019: - R60,8m loss) • Operating margin of - 0,3% (H1 2019: - 3,2%) • Capital expenditure of R7,7m (H1 2019: R31,5m) • Order book of R4,06bn (H1 2019: R3,80bn) •
Slide 13: Roads and Earthworks Division continued: Current tender pipeline
Roads and Earthworks Division continued Current tender pipeline - November 2019 8 000 000 18 000 000 16 000 000 7 000 000 14 000 000 6 000 000 Estimated tender value R'000 12 000 000 5 000 000 10 000 000 4 000 000 8 000 000 3 000 000 6 000 000 2 000 000 4 000 000 1 000 000 2 000 000 - - SANRAL Cape
Slide 14: Infrastructure Division
Infrastructure Division • Revenue increased 21,4% to R1,28bn (H1 2019: R1,06bn) • Operating profit increased 187,8% to R77,3m (H1 2019: R26,9m) • Operating margin increased to 6,0% (H1 2019: 2,5%) • Capital expenditure of R50,3m (H1 2019: R17,1m) • Order book of R3,07bn (H1 2019: R2,86bn) • Strong g
Slide 15: Infrastructure Division continued
Infrastructure Division continued Other (Distributed Coal Gas & Generation, CoGen, Coal (Decommissioning) Nuclear Hydro Storage PV Wind CSP Diesel Biomass, Landfill) Current Base 37 149 1 860 2 100 2 912 1 474 1 980 300 3 830 499 2019 2 155 -2 373 244 300 Allocation to the 2020 1 433 -557 114 300 ex
Slide 16: International operations
International operations • Revenue decreased 1,1% to R853,6m (H1 2019: R863,5m) • Operating profit decreased 28,1% to R87,6m (H1 2019: R121,9m) • Operating margin decreased to 10,3% (H1 2019: 14,1%) • Order book of R1,13bn (H1 2019: R2,0bn) • The decrease in margin largely due to completion of diamo
Slide 17: Order book
Order book ORDER FY15BOOK Divisional Operating Profit FY 2019 H1 2020 SANRAL SANRAL International 3% International 6% 14% 12% Concessions 18% Concessions 23% Provincial 15% Private 41% Private Provincial 42% 12% Municipal 8% Municipal 6% Timing R8,010bn Timing R9,084bn FY 2020 R5,975bn FY 2020 (6mth
Slide 18: Order Book History
Order Book History 10 000 000 9 000 000 8 000 000 7 000 000 TOTAL ORDER BOOK 100% STACKED LINE 6 000 000 (R’000) 5 000 000 4 000 000 3 000 000 2 000 000 1 000 000 - Feb 2010 Feb 2011 Feb 2012 Feb 2013 Feb 2014 Feb 2015 Feb 2016 Feb 2017 Feb 2018 Feb 2019 Aug 2019 R'000 R'000 R'000 R'000 R'000 R'000
Slide 19: Major Projects Progress
Notes: Major Projects Progress
Slide 20: Raubex Infra: Droogfontein PV farm
Raubex Infra: Droogfontein PV farm Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 19
Slide 21: Raubex Infra: Copperton wind farm
Raubex Infra: Copperton wind farm Notes:
Slide 22: Raudev: Woodwind Estates development
Raudev: Woodwind Estates development Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 21
Slide 23: Raubex Infra: Civil services and BNG housing units
Raubex Infra: Civil services and BNG housing units for Department of Human Settlements Notes:
Slide 24: Raubex Building: FLISP units for Lufhereng
Raubex Building: FLISP units for Lufhereng Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 23
Slide 25: Shisalanga Construction: Trials for new technology plastic asphalt
Shisalanga Construction: Trials for new technology plastic asphalt Notes:
Slide 26: Shisalanga Construction: Trials for new technology plastic asphalt
Shisalanga Construction: Trials for new technology plastic asphalt Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 25
Slide 27: Roadmac Surfacing: Rehabilitation of N3 between Cedara and Mooi River
Roadmac Surfacing: Rehabilitation of N3 between Cedara and Mooi River for N3TC Notes:
Slide 28: Raubex KZN: New vehicle distribution service facility for Onelogix
Raubex KZN: Development of a new vehicle distribution service facility for Onelogix Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 27
Slide 29: Burma Plant Hire: Operations at Rietvlei coal mine
Burma Plant Hire: Operations at Rietvlei coal mine in Mpumalanga Notes:
Slide 30: B&E International: Crushing plant at Tschudi copper mine
B&E International: Crushing plant at Tschudi copper mine in Namibia Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 29
Slide 31: Raubex Renovo: Onomo hotel in Douala, Cameroon
Raubex Renovo: Onomo hotel in Douala, Cameroon Notes:
Slide 32: Westforce Construction: Culvert installation on BHP iron ore mine
Westforce Construction: Installation of a culvert on a BHP iron ore mine in North Western Australia for Monadelphous Notes: Raubex Group Limited Unaudited interim results for the six months ended 31 August 2019 31
Slide 33: Conclusion
Conclusion • The materials division will continue to diversify the group from the construction sector • Margins are expected to improve in the second half of the year as new mining contracts achieve efficiencies • An increase in construction sector activity should also benefit materials supply opera