Sephaku Holdings Limited · JSE:SEP

Sephaku — FY2015 Earnings Presentation

19 slides from Sephaku's earnings presentation, Jun 26, 2015

1. Slide 1: Provisional Audited Year-End Financial Results Presentation

   PROVISIONAL AUDITED YEAR-END FINANCIAL RESULTS PRESENTATION FOR THE TWELVE MONTHS PERIOD ENDED 31 MARCH 2015 EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 26 June 2015 0

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 □ Group highlights Dr Lelau Mohuba Chief executive officer □ Operational performance overview Dr Lelau Mohuba  Sephaku Cement (SepCem)  Métier Mixed Concrete (Métier) □ Financial performance overview Neil Crafford-Lazarus  Statement of Comprehensive Income Financial director  Statement of

4. Slide 4: Key Highlights for the Period

   KEY HIGHLIGHTS FOR THE PERIOD □ Group revenues increased due to Métier’s performance  Métier increased its footprint in Gauteng resulting in a total of 11 plants  High value concretes enable Métier to maintain margins □ SepCem progressed from development stage into a fully operational cement produ

5. Slide 5: Operational Performance

   OPERATIONAL PERFOMANCE EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 26 June 2015 4

6. Slide 6: SepCem Increases Sales Revenue

   SEPCEM INCREASES SALES REVENUE Sales revenue of R919 million and EBITDA of 26% by end of December 2014 □ SepCem brand in all inland markets and competing successfully at all strengths □ Delmas milling plant operating at steady state at the end of fourth quarter  SepCem’s operational efficiencies du

7. Slide 7: SepCem Ramps Up to Steady State

   SEPCEM RAMPS UP TO STEADY STATE 1 000 000 50 919 000 □ Sales volume growth 900 000 40 of 58% in the second half of the year 800 000 30 □ Total volume sold of 26 Cumulative revenue Quarterly EBITDA 700 000 20 780 000 tonnes for the year ended December 15 600 000 10 2014 500 000 0 Post – period (35) (

8. Slide 8: Cement Strength Performance – Concrete Comparative

   CEMENT STRENGTH PERFORMANCE – CONCRETE COMPARATIVE 50 40 30 Megapascal 20 10 0 32,5 32,5 32,5 42,5 42,5 42,5 42,5R 42,5 42,5R Sephaku Producer A Producer B Sephaku Producer B Producer A Producer A Producer C Producer C 1 day 3 days 7 days 28 days Source: Sephaku Cement research – 2014. EXPLORATION,

9. Slide 9: Métier Grows Sales Revenue

   MÉTIER GROWS SALES REVENUE □ Métier sales growth in-spite of highly competitive environment  Fleet increased by 23% and pumping capacity by 20% □ Métier has a strong order book with new contracts secured in the post-period as of April 2015  Contracts to continue for an 18-month period  Good quali

10. Slide 10: Financial Performance

    FINANCIAL PERFORMANCE EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 26 June 2015 9

11. Slide 11: Key Highlights for the Period

    KEY HIGHLIGHTS FOR THE PERIOD □ Métier stellar performance persists  Revenue ▲ by 36% from R571,5 million to R775,4 million  Gross profit ▲ by 35% from R252,4 million to R340,9 million  EBITDA ▲ by 39% from R100,0 million to R139,1 million  Operating profit ▲ by 44% from R75,5 million to R108,9

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

    STATEMENT OF COMPREHENSIVE INCOME (R’000) Summarised statement of comprehensive income 31 March 2015 31 March 2014 Revenue 775 425 571 545 Cost of sales (434 431) (319 156) Gross profit 340 995 252 389 Other income 9 999 13 945 Operating expenses (291 706) (215 181) Operating profit 59 288 51 153 In

13. Slide 13: Statement of Comprehensive Income

    STATEMENT OF COMPREHENSIVE INCOME  Basic earnings increased per share by 25,92 cents per share to 24,43 cents (2014: 1,49 cents basic loss per share)  Headline earnings per share increased by 26,79 cents per share to 24,43 cents (2014: 2,36 cents headline loss per share)  Normalised headline earn

14. Slide 14: Statement of Financial Position (R'000)

    STATEMENT OF FINANCIAL POSITION (R’000) Total equity and liabilities 1 106 812 1 129 489 □ Net reduction of R10,1 million in 199 738 financial liabilities Current liabilities 108 938  Métier acquisition Non-current liabilities 159 350 debt of R117 million 265 831 financed through the subsidiary 747

15. Slide 15: Statement of Cash Flows (R'000)

    STATEMENT OF CASH FLOWS (R’000) 75 000 70 925 70 914 □ Increased cash 60 000 generated from operations of 45 000 R114,2 million 40 385 □ Finance costs at 30 000 R19,6 million 26 001 26 001 22 338 15 000 □ Taxation at 765 R25,8 million 0 □ PPE at R 30,4 million mainly for trucks and (26 777) (27 253)

16. Slide 16: Outlook

    OUTLOOK EXPLORATION, DEVELOPMENT, INCOME, GROWTH www.sephakuholdings.com 26 June 2015 15

17. Slide 17: Increase Free Cash Flow

    INCREASE FREE CASH FLOW SepCem □ Increase sales focus to gain market share □ Ensure sufficient and optimised logistics between plants and market □ Further increase production efficiency to optimise operating costs Métier □ Exploring further expansion opportunities to grow earnings and market share □

18. Slide 18: Investment Case

    INVESTMENT CASE □ Strategic focus on the building materials sector offering increasing earnings and growth opportunities □ New technologically advanced production plants with higher cost efficiencies enhance competitiveness □ Geographically well located cement operations targeting the inland markets

19. Slide 19: 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 26 June 2015 18

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