Raubex Group Limited · JSE:RBX
Raubex — H1 2014 Earnings Presentation
32 slides from Raubex's earnings presentation, Nov 11, 2013
Slide 1: Interim Results for the period ended 31 August 2013
Interim Results for the period ended 31 August 2013 11 November 2013
Slide 2: Agenda
Agenda • The Period in Review • Group Financial Highlights • Financial Review • Divisional Review • Strategic Outlook • Order Book • Major Projects Progress • Conclusion
Slide 3: The Period in Review
The Period in Review • Satisfactory performance given market conditions • Competitive landscape stabilised; although still difficult • Challenging conditions persist in the road construction industry • Government tender volumes maintained • Improved conditions in the materials sector • Commercial qu
Slide 4: Group Financial Highlights
Group Financial Highlights • Revenues up 14,6% to R3,22bn (H1 2013: R2,81bn) • Operating profit down 5,6% to R274,5m (H1 2013: R290,8m) • Group operating margin of 8,5% (H1 2013: 10,3%) • HEPS up 0,6% to 96,3 cps (H1 2013: 95,7 cps) • Cash flow from operations down 19,4% to R357,6m (H1 2013: 443,8m)
Slide 5: Income Statement
Income Statement Interim results Interim results Annual results 2014 2013 2013 (R’000) (R’000) (R’000) Revenue 3,221,366 2,810,013 5,635,519 % growth 14,6% 7,7% 12,0% EBIT 274,525 290,833 483,805 % growth (5,6%) 3,1% (9,0%) Profit before tax 271,636 283,657 477,139 Profit after tax 191,297 193,924 3
Slide 6: Statement of Financial Position
Statement of Financial Position Interim results Interim results Annual results 2014 2013 2013 (R’000) (R’000) (R’000) Non-current assets 2,555,208 2,318,028 2,349,119 Property, plant and equipment 1,755,560 1,535,344 1,561,232 Intangible assets 763,811 766,209 763,951 Other 35,837 16,475 23,936 Curr
Slide 7: Statement of Cash Flows
Statement of Cash Flows Interim Interim Annual results 2014 results 2013 results 2013 (R’000) (R’000) (R’000) Cash flows from operating activities Cash generated from operations 357,590 443,781 859,007 Finance income 16,754 14,342 33,518 Finance cost (19,643) (21,518) (40,184) Dividend received - 1,
Slide 8: Dividend Declaration
Dividend Declaration • Interim cash dividend declared of 30 cents per share • 3 X cover policy • Relevant dates • Last day to trade cum dividend - Friday, 29 November 2013 • Commence trading ex dividend - Monday, 2 December 2013 • Record date - Friday, 6 December 2013 • Payment date - Monday, 9 Dece
Slide 9: Segmental analysis
Segmental analysis Business Raubex Raubex segments Raumix Roadmac Construct Infra Tosas Consolidated August 2013 Revenue (R’000) 829,719 1,220,262 772,435 316,100 82,850 3,221,366 Operating profit (R’000) 128,490 95,212 37,843 19,160 (6,180) 274,525 Operating margin 15,5% 7,8% 4,9% 6,1% (7,5%) 8,5%
Slide 10: Roadmac
Roadmac • Revenue down 13,5% to R1,22bn (H1 2013: R1,41bn); 37,9% of total group revenue • Operating profit decreased 15,4% to R95,2m (H1 2013: R112,6m) • Operating margin decreased to 7,8% (H1 2013: 8,0% and FY13: 7,2%) • Capital expenditure of R40,3m (H1 2013: R55,0m) • Order book of R2,497bn • As
Slide 11: Raubex Construction
Raubex Construction • Revenue increased 22,6% to R772,4m (H1 2013: R629,9m) • Operating profit decreased 45,3% to R37,8m (H1 2013: R69,2m) • Operating margin decreased to 4,9% (H1 2013: 11,0% and FY13: 5,1%) • Capital expenditure of R32,9m (H1 2013: R26,1m) • Order book secured of R857m • Sufficient
Slide 12: Raumix
Raumix • Revenue increased 7,9% to R829,7m (H1 2013: R769,2m) • Operating profit increased 17,8% to R128,5m (H1 2013: R109,1m) • Operating margin increased to 15,5% (H1 2013: 14,2% and FY13: 14,6%) • Improved performance from commercial quarries • Mining contracts on-going, exposed to commodity cycl
Slide 13: Raubex International
Raubex International • Revenue increased 11,7% to R250,4m (H1 2013: R224,2m) • 7,8% of group total • Operating profit increased 14,8% to R49,3m (H1 2013: R43,0m) • 18,0% of group total • Operating margin increased to 19,7% (H1 2013: 19,2% and FY13: 18,2%)
Slide 14: Raubex Infra
Raubex Infra • New division specialising in multidisciplinary solutions for: • Energy (including solar and wind) • Rail and related infrastructure • Telecommunications • Pipeline • Housing • Good performance; in line with expectations • Revenue of R316,1m with operating profit of R19,2m • Margin of
Slide 15: Tosas
Tosas • Acquired 26 April 2013 from Sasol Oil • Revenue of R82,8m, net loss of R5,3m • Loss to be reduced in H2; return to profitability in FY2015 • Purchase price allocation complete Purchase consideration R,000 Net assets acquired R,000 Property plant and equipment 117,527 Cash 120,000 Deferred ta
Slide 16: Roadmac Strategic Outlook
Roadmac Strategic Outlook • Short term (FY2014) • Margins to remain in the current range • Competitive landscape to maintain pressure on margins • Bitumen supply issues have been resolved • Long term • Provincial and municipal expenditure needs to be expanded • General construction cycle needs to im
Slide 17: Raubex Construction Strategic Outlook
Raubex Construction Strategic Outlook • Short term (FY2014) • Tough trading conditions to continue • Margins to remain under pressure • Order book secured; seeking long term workflow • Potential increase in order book; awards pending • Long term • Provincial and municipal expenditure needs to be exp
Slide 18: Raumix Strategic Outlook
Raumix Strategic Outlook • Short term (FY2014) • Good performance in first half; to be sustained • Margins stabilising at around 14-16% • Credit risk management; closely monitored • Long term • Acquisition opportunities in line with strategy • Improvement in the sector set to continue • Sustained im
Slide 19: Raubex Infra Strategic Outlook
Raubex Infra Strategic Outlook • Short term (FY2014) • Good performance in first half; to be sustained • Market reputation established • Order book secured • Margins of 4% - 7% • Long term • Significant growth potential across new disciplines • Margin improvement • Secure new revenue stream in line
Slide 20: Tosas Strategic Outlook
Tosas Strategic Outlook • Short term (FY2014) • Improve efficiencies and cost control • Embed Raubex culture • Use group synergies to improve volumes • Long term • Return to profitability • Regain external market share • Explore new binder technologies • Geographical expansion opportunities
Slide 21: Group Order Book
Group Order Book Order Book R6,151bn FY 2014 R2,873bn FY 2015 R2,808bn FY 2016 R0,250bn FY 2017 R0,220bn
Slide 22: Major Projects Progress
Major Projects Progress SANRAL: N2 New Guelderland to Mtunzini Toll Plaza R198 million
Slide 23: Major Projects Progress
Major Projects Progress National Asphalt/Comar new technology asphalt plant
Slide 24: Major Projects Progress
Major Projects Progress TRAC: N4 Rehabilitation of Maputo corridor R328 million
Slide 25: Major Projects Progress
Major Projects Progress SANRAL: N2 Mkomazi River Bridge to Lovu River Bridge R134 million
Slide 26: Major Projects Progress
Major Projects Progress SANRAL: N12 Tom Jones to Daveyton R583 million
Slide 27: Major Projects Progress
Major Projects Progress SANRAL: R21 Isando pedestrian bridge R46,5 million
Slide 28: Major Projects Progress
Major Projects Progress Raubex Infra: Letsatsi solar farm R53,5 million
Slide 29: Major Projects Progress
Major Projects Progress Tosas fleet
Slide 30: Major Projects Progress
Major Projects Progress Cliffdale bitumen drum storage yard
Slide 31: Major Projects Progress
Major Projects Progress Cliffdale bitutainer storage yard
Slide 32: Conclusion
Conclusion • Satisfactory performance for the period • Strong balance sheet and positive cash generation maintained • International expansion; new geographies being explored • Short term order book stable; competitive conditions persist • Construction Industry strike impact on H2 • Free State provin