Audited annual results


Investor Conference Presentation

September 2015

1

Company

overview


Company overview


  • Raubex was founded in 1974

  • Started as a road construction and bridge building company

  • Listed on the JSE in March 2007 under Construction and Materials sector

  • Substantial growth through strategic acquisitions post listing

  • Operates a vertically integrated model through a number of subsidiaries

    • Specialist in all road construction disciplines

    • Full road construction cycle

  • Growth in the materials supply and mining sector including;

    • Commercial quarries, contract crushing and material handling and processing for the mining industry

  • Recently diversified into infrastructure disciplines including;

    • Electricity and renewable energy (solar and wind) , water, rail and housing infrastructure

  • Operates throughout Southern Africa

    • Botswana, Mozambique, Namibia, South Africa and Zambia

  • Raubex employs over 9 500 people

2

Business

segments


Business segments


Cross section of a road


Materials

Commercial quarries Contract crushing Material handling and processing for mines

Road construction and earthworks


Infrastructure development

Electricity Water Housing Rail


Road surfacing

and rehab


Full road construction cycle


Road construction and earthworks


Road surfacing and rehab


Earthworks

1

Mobile crushing

2

Compaction

3

Structures

4

Milling

5



Asphalt production 6

Asphalt paving

7

Bitumen

8

Road marking

9

Final product

10


3

Financial

review


Financial review


%

Change

Annual results 2015

(R'000)

Annual results 2014

(R'000)

Revenue

14.5%

7 245 259

6 325 012

Operating profit (EBIT)

15.2%

622 171

539 875

Operating profit margin

8.6%

8.5%

Effective tax rate

29.4%

29.0%

Earnings Per Share (cents)

11.6%

213.4

191.3

Dividend Per Share (cents)

71.0

65.0

Dividend Cover ratio

3.0

2.9

Return on Capital Employed

12.3%

12.7%

Cash generated from operations

4.5%

785 053

751 420

Capital expenditure

510 599

483 299

Cash and cash equivalents

937 275

871 260

Interest bearing borrowings

1 099 940

717 561

Net debt/(Net cash)

162 665

(153 699)

Net Gearing (Net Debt/Equity)

4.6%

(4.7%)


Financial review


7.00

1.96

1.50

1.37

4.00

1.02 1.04

1.02

3.00

0.36

4.13

3.14

3.56

3.51

3.66

1.00

0.03

1.77

1.16

8.6%

219

600

178

10.6%

8.5%

500

20.2%

324

400

211

259

102

219

574

485

16.3%

200 11

329 320

265

281

298

100

183

Revenue (Rbn) Operating Profit (Rm)



8.00

1000


900

19.4%


800

19.1%

6.00


1.62

700

221

14.6%

5.00

8.6%


5.28

300

668

4.70

2.00


-

0


2007 2008 2009 2010 2011 2012 2013 2014 2015

2007 2008 2009 2010 2011 2012 2013 2014 2015


Construction Materials

Construction Materials Operating margin


Financial review


793

785

751

199

300

240.2

200

209.1

50

60

60

65

65

71

Cash Generated from Operations (Rm) Headline Earnings Per Share (cents)



1200

350



323.8

1000


964

291.7


250

800

853

859



600

663

180.1

177.2

187.1

150

158.7


400

449


100

110

100 100


200

83.3



0

0


2007 2008 2009 2010 2011 2012 2013 2014 2015

2007 2008 2009 2010 2011 2012 2013 2014 2015


Cash generated (before interest and tax)

Headline Earnings Per Share Dividend Per Share


Financial review


2015 Divisional Revenue (Rm) Revenue % share



3 000



2 500

2 569

2 000

Tosas 5%


1 961


1 500

1 464

Materials

1 000

27%


863


500


389


-


Raubex Infra 12%


Road construction 20%

Road surfacing and Rehab 36%


Revenue


Financial review


2015 Divisional Operating Profit (Rm) Operating Profit % share



350


300

324



250


200


192


150


100


50

55

7.5%

3.8% 40 4.6%

16.5% 112.9%

-

Materials 52%

Tosas 2%


Road surfacing and Rehab 31%


Road construction 9%

Raubex Infra 6%


Operating profit Margin

distributed by