Sephaku Holdings Limited · JSE:SEP
Sephaku — African Mining Investor Dinner 2012
17 slides from Sephaku's conference presentation, Nov 21, 2012
Slide 1: Building a Nation
BUILDING A NATION Dr Lelau Mohuba Chief Executive Officer African Mining Investor Dinner Johannesburg 21 November 2012
Slide 2: Disclaimer
Disclaimer This presentation includes certain forward-looking information. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including, without limitation those concerning: Sephaku Holdings’ strategy; the economic outlook for the industr
Slide 3: Introduction
Introduction • A cement and cement-related products company, focused on southern Africa • Strategic focus: cement sector growth through vertical integration • Key investment: Sephaku Cement (SepCem) • flagship Aganang cement manufacturing project in development • New acquisition: Métier Mixed Concre
Slide 4: Group structure
Group structure 100% Sephaku Cement Investment Holdings Ltd 36% 100% Blue Waves Properties 198 (Pty) Ltd 64% 100% 100% 100% 80% Sephaku Development Sephaku Ash Sephaku Delmas Sephaku Limestone and (Pty) Ltd (Pty) Ltd Properties (Pty) Ltd Exploration (Pty) Ltd 100% 20% Portion 11 Klein Westerford Gol
Slide 5: Location of assets
Location of assets Building a nation November 2012 5
Slide 6: Aganang project
Aganang project Building a nation November 2012 6
Slide 7: Project quantities
Project quantities Soccer City Concrete: 80 000m3 Eiffel Tower Concrete: used in base Structural steel: 8 000t Structural steel: 9 441t Sydney Opera House Concrete: 32 910t in roof Sephaku factories Concrete: 150 000m³ Structural steel: 17 600t Building a nation November 2012 7
Slide 8: Board of Directors
Board of Directors Pieter Fourie Non-executive Director Bcom (accounting); Executive Development Programme (PRISM) for Global Leaders, (Switzerland) Extensive experience in the cement industry; previously Neil Crafford-Lazarus Marketing Director, Blue Circle (subsequently acquired by Financial Direc
Slide 9: Our value proposition
Our value proposition SEP value analysis: 9 November 2012 JSE Market cap (million) R511 Closing price R2,98 Ordinary shareholders interest (million) R672,62 Net profit (million) R13,68 Price to earnings n/a Price to book 0,76 Dividend yield 0 Earnings yield -5,01% Building a nation November 2012 9
Slide 10: Sephaku financial analysis
Sephaku financial analysis (ZAR million) FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012 Profit after tax -7,65 -10,50 -90,17 343,70 0,99 Total assets 153,98 527,18 612,59 751,71 673,61 Total equity 147,03 512,94 478,09 746,78 672,62 Total cash movement from operations -16,70 14,11 -112,87 -51,78 -19,7
Slide 11: Sephaku Cement
Sephaku Cement • Environmentally friendly • 6 000t per day or 2,5Mtpa pic 111 • Lowest cost producer • First production, end 2013 • Plants: Sinoma supplying, building on full turnkey basis • Capital: unchanged at R3,2bn • fully funded • Newest, most reliable equipment • Experienced, enthusiastic man
Slide 12: EV/ton of plant capacity (US$)
EV/ton of plant capacity (US$) PPC 301 CCNN 110 Lafarge WAPCO 2011 242 DCP 2012 433 Athi River 283 Bamburi Cement 145 EAPC 64 Twiga Cement 172 Tanga 73 Lafarge Zambia 235 Suez Cement 162 Sinai Cement 174 Lafarge Morocco 501 AFRICA MIDDLE EAST 232 MIDDLE EAST 232 EUROPE 154 LATIN AMERICA 218 ASIA PAC
Slide 13: Market comparables
Market comparables • PPC trading at high multiples • Large and unreliable spread across P/NAV valuations • Market multiples imply a share price well in excess of where it is currently trading • Discounted cash flow valuations imply prices in the region of R13 per share depending on the assumed cemen
Slide 14: Métier Mixed Concrete (Pty) Limited
Métier Mixed Concrete (Pty) Limited • Significant operations around the Durban, Pietermaritzburg and Gauteng areas • Experienced management with 4 concrete technologists • Fleet of over 100 trucks • Large fixed plant footprint supplemented by mobile plant operations • Métier clients include: Group F
Slide 15: Our markets
Our markets • The cement market is expected to reach Existing plants Sephaku Cement Total demand Surplus (+)/ deficit (-) Percentage capacity capacity in 2016 2012 14,5 0,0 13,5 1,0 93 • Anticipated retirement of existing kilns 2013 14,1 0,5 14,4 0,1 99 2014 14,1 2,2 15,2 1,1 93 • Anticipated shortf
Slide 16: Investment case
Investment case • Focused cement and cement-related products play • Métier provides immediate cashflow and earnings • Will be a significant force in the South African cement sector • Most environmentally efficient cement plant in South Africa • Capacity expected to come on line around the end of 201
Slide 17: Contact
Contact Office Mobile E-mail Dr Lelau Mohuba 012 622 9400 082 802 1496 lmohuba@sepman.co.za Neil Crafford-Lazarus 012 622 9400 082 451 8211 neil@sepman.co.za Pieter Fourie 012 684 6300 079 492 1850 pieter.fourie@sephakucement.co.za Building a nation November 2012
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