Sephaku Holdings Limited · JSE:SEP
Sephaku — Investor Presentation (February 2014)
26 slides from Sephaku's investor presentation, Feb 5, 2014
Slide 1: Investor Presentation – Investor Dinner, 5 February 2014
INVESTOR PRESENTATION 5 FEBRUARY 2014 RADISSON BLU, CAPE TOWN INVESTOR DINNER DR LELAU MOHUBA CHIEF EXECUTIVE OFFICER EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 1
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 indust
Slide 3: The Sephaku Story
THE SEPHAKU STORY EXPLORATION Sephaku commenced business in 2006 as an HDSA-owned, mineral exploration company seeking opportunities brought about by changes in the MPRDA. Limestone and Fluorspar resources were quickly identified and proven as the most viable reserves in Sephaku's portfolio. This re
Slide 4: The Sephaku Holdings Structure
THE SEPHAKU HOLDINGS STRUCTURE 100% 36% 64% Aganang Delmas Sephaku Limestone Cement Plant Milling Plant Ash Exploration EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 4
Slide 5: Location of Assets
LOCATION OF ASSETS Pretoria Johannesburg Durban Operations Aganang Cement Plant Delmas Milling Plant Sephaku Ash Cape Town Dwaalboom project Métier Mixed Concrete EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 5
Slide 6: Board of Directors
BOARD OF DIRECTORS Front row from left to right: Brent Williams, Gustav Mahlare, Mpho Makwana, Dr Lelau Mohuba, Neil Crafford-Lazarus, Shibe Matjiu, and Pieter Fourie Back row from left to right: Rudolph de Bruin, Moses Ngoasheng, Dr David Twist, Kenneth Capes, Jan Wessels and Jennifer Bennette EXPL
Slide 7: Board of Directors
BOARD OF DIRECTORS BRENT WILLIAMS PAUL MPHO MAKWANA NEIL ROBUS CRAFFORD-LAZARUS Chairman – independent non-executive Independent non-executive director Financial director – executive director director BAdmin (University of Zululand), BAdmin (Hons) BCompt (UFS), BCompt (Hons), CA(SA) BA (UCT), BProc
Slide 8: Board of Directors
BOARD OF DIRECTORS PIETER FREDERICK FOURIE MOSES MODIDIMA NGOASHENG KENNETH CAPES Non-executive director Non-executive director Non-executive director CEO – Sephaku Cement BA (Economics and International Politics) Kenneth has extensive experience in the BCom (Accounting), Executive Development (Unis
Slide 9: Cement Industry – Our Perspective
CEMENT INDUSTRY – OUR PERSPECTIVE EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 9
Slide 10: The South African Cement Industry Trends
THE SOUTH AFRICAN CEMENT INDUSTRY TRENDS 7 • GDP growth forecast Rate % at 3,2%¹ in 2014 6 • Cement sales forecast at 4,8 – 5,0% to GDP: 5 multiplier of 1,5 • Cement demand growth 4 was at 6% in 2013 › Growth at 3% per 3 annum 2010 – 2012 following global crisis 2 • Residential plans YOY 1 growth at
Slide 11: SA Cement Capacity vs Demand: 2006–2020
SA CEMENT CAPACITY vs DEMAND: 2006 – 2020 20 1. Capacities are based on Sephaku's entry Millions SepCem research, using and ramp-up the maximum estimated clinker capacity of each 15 producer, combined with the estimated extender ratios to produce finished cement 10 Industry operating at 90% of reali
Slide 12: South African Industry Demand Drivers
SOUTH AFRICAN INDUSTRY DEMAND DRIVERS • Public and private sector building and construction • Residential demand in line with improved incomes › Entry-level housing market with a shortfall of c2.1 million houses* › Resultant increased demand for related infrastructure of 50% • Backlog in infrastruct
Slide 13: Competitive Edge to Industry Average
COMPETITIVE EDGE TO INDUSTRY AVERAGE • Energy utilisation efficiency – 94kWh per tonne of cement as compared to industry average of 145kWh per tonne • Consistent cement quality – single 6 000tpd kiln for clinker • Logistical advantage – proximity of Delmas to extender source, coal supply and the mar
Slide 14: Our Business Interests: A Robust Building Materials Portfolio
OUR BUSINESS INTERESTS: A ROBUST BUILDING MATERIALS PORTFOLIO EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 14
Slide 15: Sephaku Cement (SepCem)
SEPHAKU CEMENT (SEPCEM) • Cement production started in January, on schedule and within budget, at Delmas • Latest cement plant technology – higher efficiency than incumbents › Lowest cost producer due to new efficient plants • Aganang to produce up to 6 000t clinker per day – equates to c2,5mtpa cem
Slide 16: Delmas Plant: On Time and Within Budget
DELMAS PLANT: ON TIME AND WITHIN BUDGET EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 16
Slide 17: We Are Producing Cement
WE ARE PRODUCING CEMENT EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 17
Slide 18: Our Brands Are in the Market
OUR BRANDS ARE IN THE MARKET EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 18
Slide 19: Métier Mixed Concrete
MÉTIER MIXED CONCRETE • 100% ownership; acquired in February 2013 for R365 million • Specialist in the manufacture, distribution and marketing of high-value ready-mixed concrete • Fleet size, pumping division and advanced production technology enhances efficiency • Ten plants in KwaZulu-Natal and Ga
Slide 20: Strategically Positioned Plants
STRATEGICALLY POSITIONED PLANTS EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 20
Slide 21: Value-Added Service Through the Pumping Division
VALUE-ADDED SERVICE THROUGH THE PUMPING DIVISION EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 21
Slide 22: Quality Fleet with Over 100 Trucks
QUALITY FLEET WITH OVER 100 TRUCKS EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 22
Slide 23: Sephaku Value Proposition
SEPHAKU VALUE PROPOSITION EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 23
Slide 24: Share Price Performance
SHARE PRICE PERFORMANCE Share ticker: JSE Sep • Share price on an upward Sector Construction and Materials trend Outstanding shares 189 872 979 › Approximately 40% Closing price @ 28 Jan 2014 R6,80 one-year increase in Average volume per week 770 980 share price Average value per week R4 234 424 • *
Slide 25: SepHold Investment Case
SEPHOLD INVESTMENT CASE • Potential share price re-rating › Market multiples imply a share price well in excess of where it is currently trading • Profitable Métier provides solid earnings and positive cash flow • Focused strategy on the lucrative cement manufacturing sector • Technologically advanc
Slide 26: Contact
CONTACT Sakhile Ndlovu Investor Relations Officer Tel: + 27 12 622 9400 Email: Sakhile@sepman.co.za Website: www.sephakuholdings.co.za EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.co.za 5 February 2014 26
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