Sephaku Holdings Limited · JSE:SEP

Sephaku — H1 FY2015 Earnings Presentation

22 slides from Sephaku's earnings presentation, November 2014

  1. Slide 1: Unaudited Interim Results Presentation

    UNAUDITED INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2014 EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com November 2014 1

  2. 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

  3. Slide 3: Agenda

    AGENDA Sephaku Holdings (SepHold) □ Group overview Operational performance □ Sephaku Cement (SepCem) □ Métier Mixed Concrete (Métier) Financial performance □ Statement of Comprehensive Income □ Statement of Financial Position □ Statement of Cash Flows Outlook EXPLORATION, DEVELOPMENT, INCOME, GROWTH

  4. Slide 4: Key Highlights for the Interim Period

    KEY HIGHLIGHTS FOR THE INTERIM PERIOD □ Métier added another plant in Gauteng with a capacity of 70m³/hour during September 2014  Revenue ▲ by 34% to R404,2 million (2013: R301,6 million)  EBITDA ▲ by 41% to R77,5 million (2013: R55,1 million)  Operating profit ▲ by 43% to R62,6 million (2013: R4

  5. Slide 5: Operational Performance

    OPERATIONAL PERFORMANCE Above: Aganang integrated plant Below: Delmas milling plant EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com November 2014 5

  6. Slide 6: SepCem Increases Market Presence in the Inland Markets 1/3

    SEPCEM INCREASES MARKET PRESENCE IN THE INLAND MARKETS 1/3 Market penetration progressing successfully with over 1 000 delivery points in the inland market to date □ SepCem brand in Gauteng, Limpopo, Mpumalanga, Free State and North West □ Prices under pressure in isolated provinces, however average

  7. Slide 7: SepCem Increases Market Presence in the Inland Markets 2/3

    SEPCEM INCREASES MARKET PRESENCE IN THE INLAND MARKETS 2/3 Highly competent sales and marketing team headed by seasoned industry executives Sephaku Cement’s revenue profile for the 9 months ended September 2014 600 000 Cumulative revenue (R000) 515 000 400 000 206 000 200 000 55 000 0 Q1 2014 Q2 201

  8. Slide 8: SepCem Increases Market Presence in the Inland Markets 3/3

    SEPCEM INCREASES MARKET PRESENCE IN THE INLAND MARKETS 3/3 Post period □ Achieved revenue of R309 million revenue for the 3 months ended September 2014 □ Aganang commenced production of cement in October 2014 with an initial focus on the 42,5 N and 52,5 N strengths EXPLORATION, DEVELOPMENT, INCOME,

  9. Slide 9: SepCem's Competitive Edge to Industry Average

    SEPCEM’S COMPETITIVE EDGE TO INDUSTRY AVERAGE Minimal maintenance Consistent cement quality • Low costs due to brand new plants • Single 6 000 tonnes per day clinker kiln High energy efficiency Inland market focus • Guaranteed 95kWh utilisation • Coastal prices being impacted by Pakistan imports Log

  10. Slide 10: Métier Expansion Successful

    MÉTIER EXPANSION SUCCESSFUL In line with the expansion plans to increase plant footprint and gain market share in the Gauteng province: □ Métier commenced production at a fourth plant with a capacity of 70m³/hour in September 2014 □ Métier has a complement of 11 plants including 7 in KwaZulu-Natal p

  11. Slide 11: Financial Performance

    FINANCIAL PERFORMANCE EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com November 2014 11

  12. Slide 12: Statement of Comprehensive Income (R'000)

    STATEMENT OF COMPREHENSIVE INCOME (R’000) Consolidated statement 30 September 2014 30 September 2013 31 March 2014 of comprehensive income Unaudited – 6 months Unaudited – 6 months Audited – 12 months Revenue 404 157 301 569 571 545 Cost of sales (225 941) (167 744) (319 156) Gross profit 178 216 13

  13. Slide 13: Statement of Comprehensive Income 1/2

    STATEMENT OF COMPREHENSIVE INCOME 1/2 Group net loss of R3,7 million: □ SepHold accounted for a non-cash once off contingent consideration loss of R22,2 million for the outstanding R100 million share based Métier acquisition payment  SepHold comprehensive loss of R31,6 million □ SepHold operating l

  14. Slide 14: Statement of Comprehensive Income 2/2

    STATEMENT OF COMPREHENSIVE INCOME 2/2 □ Group operating expenses of R130,2 million □ Group finance charges of R12,4 million:  R3.6 million is present value adjustment on the Métier purchase price  Balance due to Métier acquisition debt and asset finance □ Group EBITDA of R38,2 million compared to

  15. Slide 15: Statement of Financial Position (R'000)

    STATEMENT OF FINANCIAL POSITION (R’000) 983 827 Non-current assets 996 316 990 253 166 358 Current assets 125 132 116 560 1 150 185 Total assets 1 121 448 1 106 812 747 818 Equity holders of the parent 752 605 747 724 169 374 Non-current liabilities 208 685 159 350 232 993 Current liabilities 160 15

  16. Slide 16: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION □ Current assets at R166,4 million  Trade and other receivables at R109,3 million □ Current liabilities at R232,9 million  Includes R115,8 million present value of the R125 million Métier acquisition obligation  Final acquisition payment due in December 2014 □ Net

  17. Slide 17: Statement of Cash Flows (R'000)

    STATEMENT OF CASH FLOWS (R’000) 45 000 40 835 36 210 36 138 34 846 30 000 26 001 26 001 22 338 22 338 15 000 17 667 15 815 11 948 0 (9 919) (3 095) -15 000 (21 543) -30 000 (27 253) Cash as at Net cash flow from Net cash flow from Net cash flow from Cash as at beginning of period operating activitie

  18. Slide 18: Statement of Cash Flows

    STATEMENT OF CASH FLOWS □ Net operating cash flow of R34,8 million (2013: R17,7 million) enhanced by cash generated of R58,1 million □ Net investing cash outflow increased due to R23,4 million expended on:  acquisition of trucks  additions to plants □ Cash outflow from financing activities of R23,

  19. Slide 19: Outlook

    OUTLOOK EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com November 2014 19

  20. Slide 20: Income Generation Focus

    INCOME GENERATION FOCUS SepCem □ Will ramp up cement volumes at both plants in line with market demand  highest quality and most consistent cement products whilst offering excellent service to the market □ Target to reach steady state production during the first half of 2015 calendar year for both

  21. Slide 21: Investment Case

    INVESTMENT CASE □ Strategic focus on the building materials sector in Africa’s second largest economy, offering increasing earnings and growth opportunities □ New technologically advanced production plants with higher cost efficiencies enhance competitiveness □ Geographically well located cement ope

  22. Slide 22: Contact

    CONTACT Sakhile Ndlovu Investor relations officer Tel: + 27 12 612 0210 Email: [email protected] Website: www.sephakuholdings.com EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com November 2014 22

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