Raubex Group Limited · JSE:RBX
Raubex — H1 2015 Earnings Presentation
32 slides from Raubex's earnings presentation, November 2014
Slide 1: Unaudited interim results for the six months ended 31 August 2014
QrIGED K Ubex Group Trento Unaudited interim results for the six months ended 31 August 2014 Raubex Group Limited (Incorporated in the Republic of South Africa) Registration number 2006/023666/06 USE share code: RBX ISIN: ZAE000093183 (“Raubex” or the “Group”)
Slide 2: Agenda
Agenda • The Period in Review • Group Financial Highlights • Financial Review • Divisional Review • Order Book • Acquisitions • Major Projects Progress • Conclusion
Slide 3: The Period in Review
The Period in Review • Good results in a tough environment • Market conditions • Competitive conditions persist in the road construction industry • SANRAL tender volumes maintained; low margin • Improved conditions in the materials sector; commercial quarries and material handling • Infrastructure d
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenues up 15,7% to R3,73bn (H1 2014: R3,22bn) • Operating profit up 9,6% to R300,8m (H1 2014: R274,5m) • Group operating profit margin of 8,1% (H1 2014: 8,5%) • HEPS up 5,5% to 101,6 cps (H1 2014: 96,3 cps) • Cash flow from operations up 50,3% to R537,4m (H1 2014: R357
Slide 5: Income Statement
Income Statement Interim results Interim results Annual results 2015 2014 2014 (R’000) (R’000) (R’000) Revenue 3 725 793 3 221 366 6 325 012 % growth 15,7% 14,6% 12,2% EBIT 300 766 274 525 539 875 % growth 9,6% (5,6%) 11,6% Profit before tax 298 487 271 636 534 462 Profit after tax 211 597 191 297 3
Slide 6: Statement of Financial Position - Assets
Statement of Financial Position - Assets Interim results Interim results Annual results 2015 2014 2014 (R’000) (R’000) (R’000) Non-current assets 2 930 060 2 555 208 2 642 791 Property, plant and equipment 2 012 857 1 755 560 1 841 611 Intangible assets 784 524 763 811 763 671 Non-current inventory
Slide 7: Statement of Financial Position - Equity and Liabilities
Statement of Financial Position - Equity and Liabilities Interim results Interim results Annual results 2015 2014 2014 (R’000) (R’000) (R’000) Equity 3 400 859 3 093 710 3 241 037 Attributable to shareholders 3 280 692 3 053 486 3 186 425 Non-controlling interest 120 167 40 224 54 612 Non-current li
Slide 8: Statement of Cash Flows
Statement of Cash Flows Interim results Interim results Annual results 2015 2014 2014 (R’000) (R’000) (R’000) Cash flows from operating activities Cash generated from operations 537 384 357 590 751 420 Finance costs – net (2 279) (2 889) (5 413) Taxation paid (84 743) (55 445) (136 438) Net cash gen
Slide 9: Segmental analysis
Segmental analysis Business Raubex Raubex segments Raumix Roadmac Construct Infra Tosas Consolidated August 2014 Revenue (R’000) 968 231 1 314 566 774 875 484 737 183 384 3 725 793 Operating profit (R’000) 162 544 96 400 20 400 27 547 (6 125) 300 766 Operating margin 16,8% 7,3% 2,6% 5,7% (3,3%) 8,1%
Slide 10: Dividend Declaration
Dividend Declaration • Interim cash dividend declared of 35 cents per share • 3 X cover policy • Relevant dates • Last day to trade cum dividend - Friday, 28 November 2014 • Commence trading ex dividend - Monday, 1 December 2014 • Record date - Friday, 5 December 2014 • Payment date - Monday, 8 Dece
Slide 11: Roadmac
Roadmac • Revenue up 7,7% to R1,31bn (H1 2014: R1,22bn) • Operating profit increased 1,2% to R96,4m (H1 2014: R95,2m) • Operating margin decreased to 7,3% (H1 2014: 7,8%) • Capex of R23,2m (H1 2014: R40,3m) • Order book of R1,79bn (H1 2014: R2,50bn) • Rehabilitation and maintenance market; very comp
Slide 12: Raubex Construction
Raubex Construction • Revenue flat at R774,9m (H1 2014: R772,4m) • Operating profit decreased 46,1% to R20,4m (H1 2014: R37,8m) • Operating margin decreased to 2,6% (H1 2014: 4,9%) • Capex of R19,0m (H1 2014: R32,9m) • Order book secured of R3,03bn (H1 2014: R857m); 52% in Africa • Competitive condi
Slide 13: Raumix
Raumix • Revenue increased 16,7% to R968,2m (H1 2014: R829,7m) • Operating profit increased 26,5% to R162,5m (H1 2014: R128,5m) • Operating margin increased to 16,8% (H1 2014: 15,5%) • Capital expenditure of R204,8m (H1 2014: R150,5m) • Order book of R1,58bn (H1 2014: R1,82bn) • Strong performance f
Slide 14: Raubex Infra
Raubex Infra • Revenue increased 53,4% to R484,7m (H1 2014: R316,1m) • Operating profit increased 43,8% to R27,5m (H1 2014: R19,2m) • Margin of 5,7% (H1 2014: 6,1%) • Capital expenditure of R24,6m (H1 2014: R18,2m) • Order book of R1,02bn (H1 2014: R882m) • Reputation established; quality and delive
Slide 15: Tosas
Tosas • Acquired 26 April 2013 from Sasol Oil • Revenues of R183,4m (H1 2014: R82,8m) • Net operating loss of R6,1m (H1 2014: Net operating loss of R6,2m) • Revenues including inter group supply of R298,1m; 38,5% internal • Order book of R127,6m (H1 2014: R98,4m) • Short term synergies being realise
Slide 16: Raubex International
Raubex International • Revenue increased 19,7% to R299,7m (H1 2014: R250,4m) • 8,0% of group total • Operating profit decreased 1,6% to R48,5m (H1 2014: R49,3m) • 16,1% of group total • Operating margin decreased to 16,2% (H1 2014: 19,7%) • Order book of R2,23bn (H1 2014: R945,3m); 30% of group tota
Slide 17: Order book
Order book FY 2014 H1 2015 Order Book R6,551bn Order Book R7,536bn FY 2015 R4,451bn FY 2015 R3,258bn FY 2016 R1,509bn FY 2016 R2,683bn FY 2017 R0,501bn FY 2017 R1,213bn Beyond R0,090bn Beyond R0,382bn
Slide 18: Acquisitions
Acquisitions OMV Crushers Shisalanga Construction • Materials • Asphalt • Revenue – R28,7m • Revenue – R35,4m • Net profit – R4,5m • Net profit – R2,4m • Purchase price – R70,3m • Purchase price – R38,4m • Percentage acquired – 70% • Percentage acquired – 60% • Acquired 1 July 2014 • Acquired 1 June
Slide 19: Post balance sheet acquisitions: Buildmax Aggregates and Quarries (BAQ)
Post balance sheet acquisitions Buildmax Aggregates and Quarries (BAQ) • On 1 Sept 2014 the Group acquired certain operations and assets from BAQ • Crushco Quarry • Alphasand Quarry • Aflease Crushing operations • Product diversification - sand • Historical revenue - R75m • Purchase price - R54,8m •
Slide 20: Post balance sheet acquisitions: Empa Structures CC and Empa Plant CC
Post balance sheet acquisitions Empa Structures CC and Empa Plant CC • On 1 Nov 2014 the Group acquired 70% of Empa • Average historical revenue – R150m • Purchase price – R25,5m • Empa specialises in the construction of concrete structures.
Slide 21: Major Projects Progress
Major Projects Progress Sanral : N5 Harrismith to Kestell R308 million
Slide 22: Major Projects Progress
Major Projects Progress SANRAL N8: Thaba Nchu to Sannaspos Bridge
Slide 23: Major Projects Progress
Major Projects Progress SANRAL: N8 Thaba Nchu to Sannaspos R463 million
Slide 24: Major Projects Progress
Major Projects Progress TRAC : N4 MARA R328 million
Slide 25: Major Projects Progress
Major Projects Progress TRAC : N4 MARA R328 million
Slide 26: Major Projects Progress
Major Projects Progress OMV Stilfontein crushing operations
Slide 27: Major Projects Progress
Major Projects Progress OMV Potchefstroom gypsum dump
Slide 28: Major Projects Progress
Major Projects Progress IHS: Spring Valley development, Duvha Park, Witbank R153 million
Slide 29: Major Projects Progress
Major Projects Progress Zambia RDA: Safwa camp establishment
Slide 30: Major Projects Progress
Major Projects Progress Zambia RDA: Safwa to Chinsali ZMW 265 million
Slide 31: Conclusion
Conclusion • Competitive conditions set to continue in SA road construction • Strong order book secured, focus now on; • Improving efficiencies in execution of SA contracts; • Planning and execution in Zambia; major works to commence in FY16 • Strategic tendering going forward to improve margin mix
Slide 32: Ubex Group Lite”
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