Raubex Group Limited · JSE:RBX
Raubex — FY2007 Earnings Presentation
19 slides from Raubex's earnings presentation, May 23, 2007
Slide 1: Annual Financial Results for the Year Ended 28th February 2007
Raubex Group Limited Annual Financial Results for the Year Ended 28th February 2007 23 May 2007
Slide 2: Agenda
AGENDA ¾ Corporate Video ¾ Introduction ¾ Group Financial Highlights ¾ Group Operational Highlights ¾ Financials ¾ Divisional Review ¾ Prospects ¾ Conclusion ¾ Q&A
Slide 3: Introduction
Introduction “We are very pleased to announce our first set of annual results as a public company and looking ahead, we are very positive about our growth prospects both organically and acquisitively.” Koos Raubenheimer, CEO
Slide 4: Industry Overview
Industry Overview ¾ South Africa’s road construction industry is buoyant ¾ Raubex is an infrastructure company ¾ Uninterrupted profit history ¾ Cautionary announced today ¾ Succession plan
Slide 5: Divisional Review
Divisional Review ¾ Balanced portfolio across three lines of business and geographies ¾ Expectation is for increasing demand for all our services and products AGGREGATE CIVIL ROAD RAUMIX RAUBEX CONSTRUCTION Roadmac
Slide 6: Group Financial Highlights
Group Financial Highlights ¾ Successful listing on the JSE Limited 20th March 2007 ¾ Results in line with pre-listing forecasts ¾ Revenues up 58.3% to R1190.9m [2006: R752.3m] ¾ HEPS up 132% to 83.3 cps [2006: 35.9 cps] ¾ Group operating margins of 16.33% [2006: 9.61%] ¾ Cash flow from operations up
Slide 7: Group Operational Highlights
Group Operational Highlights ¾ Raubex continued to improve operational efficiencies ¾ Operating margins improved in all three divisions Roadmac 19.7% Raubex Construction 10.1% Raumix 41.2% ¾ Order book grown to R1.6bn ¾ Capacity expanded by effective recruitment and training
Slide 8: Income statement
Income statement INCOME STATEMENT February 2006 February 2007 2007 Pro forma* Revenue (‘000) 752,290 1,190,860 1,600,920 % revenue growth 23.62% 58.30% 112.81% EBIT (‘000) 86,644 217,578 285,223 % growth 3.09% 151.12% 229.19% Depreciation 23,171 25,508 50,343 Employee costs 98,448 155,572 230,936 Pr
Slide 9: Balance sheet
Balance sheet Balance Sheet February 2006 February 2007 (‘000) (‘000) Non-current assets 250 786 326 197 Fixed assets 221 460 290 398 Goodwill 3 552 16 534 Other 25 774 19 265 Current assets 302 617 420 923 Inventory 11 548 17 629 Receivables 196 305 258 686 Cash 61 078 83 267 Other 8 442 17 077 Tot
Slide 10: Cash Flow
Cash Flow EBITDA 2007 2006 (‘000) (‘000) Operating profit ( before interest & tax) 194,505 72,278 Depreciation 25,508 23,171 Associate income 6,259 9,090 226,272 104,539 Working capital move * -17,843 -6,305 Free Cash Flow 208,429 98,234 ¾ Cash generation ¾ Dividend policy
Slide 11: Pre-listing vs Actual pro-formas
Pre-listing vs Actual pro-formas (000) New Pro forma Prelisting Pro forma Revenue 1,600,920 1,696,920 OPERATING MARGIN 17.11% 16.5% Profit after tax 188,991 185,994 EPS 116.4 114.7 ¾ Aligned forecasts
Slide 12: Recent acquisitions
Recent acquisitions Name of company Nature of business Salient financial information Effective date Milling Techniks (Pty) Ltd Specialised road and civil Deal value : R25 million 1 September 2006 engineering National Asphalt (Pty) Ltd Manufacture and laying of Deal value : R27 million 1 March 2007 p
Slide 13: Divisional Segment Report
Divisional Segment Report Revenue and Operating Profit per Division 2007 2006 R R Revenue Roadmac 685,149,524 367,093,054 Raubex Construction 477,929,726 350,533,951 Raumix 27,780,895 34,662,994 Consolidated 1,190,860,145 752,289,999 Operating Profit Roadmac 134,731,529 67,580,521 Raubex Constructio
Slide 14: Roadmac
ROADMAC is a specialist manufacturer and layer of asphalt, chip and spray, surface dressing, enrichments and slurry seals 2007 2006 R R Revenue 685,149,524 367,093,054 Operating Profit 134,731,529 67,580,521 Operating Margin 19.7% 18.4% ¾ Revenues increased 79% to R685.1m [2006: R367.1m] ¾ Operating
Slide 15: Raubex Construction
RAUBEX CONSTRUCTION is a road and civil infrastructure construction company focused on new road construction (green fields) and heavy road rehabilitation 2007 2006 R R Revenue 477,929,726 350,533,951 Operating Profit 48,334,333 (5,481,256) Operating Margin 10.1% (1.6%) ¾ Revenues increased 36% to R4
Slide 16: Raumix
RAUMIX Produces and supplies crushed aggregate to the construction industry and services the building industry including infrastructure projects 2007 2006 R R Revenue 27,780,895 34,662,994 Operating Profit 11,438,651 10,178,607 Operating Margin 41.2% 29.4% ¾ Revenues declined 20% to R27.8m [2006: R3
Slide 17: Prospects
Prospects ¾ Road construction demand expected to increase over medium term (SAICE report 2006 rated South African roads D – ) ¾ Road upgrade allocations increasing - R8bn in 2007 [2006: R1.8bn] ¾ 2010 World Cup – well positioned for infrastructure programmes ¾ Acquisitions bedded down and value enha
Slide 18: Conclusion
Conclusion ¾ Strong set of annual results ¾ Increased profitability over 3 years ¾ Uninterrupted profit history over 30 years ¾ Stable cash flows with significant growth ¾ The ability to fund value enhancing acquisitions ¾ Management continuity ensured with lock-ins ¾ Succession plan in place ¾ Larg
Slide 19: Questions & Answers
Q&A Questions & Answers