Raubex Group Limited

Interim resultsfor the six months ended 31 August 07

06 November 2007

AGENDA

Introduction

Highlights

Financial and Divisional Reviews

Some current projects

Share Incentive Scheme

Capacity Building

Achieving our vision as a public company

Prospects

Conclusion

Q&A

“We are pleased to present our first set of interim results as a public company. The listing was a great success and positioned us ideally to

achieve our stated vision and strategy. In fact, many of the benefits associated with our public profile have already begun to materialise in the

past six months and we are very upbeat about the future.”

Koos Raubenheimer, CEO

__________________________

Raubex is a construction company that operates throughout Southern Africa. The company listed on the Johannesburg Stock Exchange on 20 March 2007.

The company has been in the business of civil engineering construction since 1974.

It is a leader in road construction and rehabilitation, infrastructure development, pipelines,

concrete structures and the supply of materials to the construction industry.

Introduction

Group Financial Highlights (period ended 31 Aug 2007)

Revenues up 67,4% to R963,5 (H1 2007: R575,6m)

Operating profit up 184% to R191,2m (H1 2007: R67,2m)

Group operating margins of 19,8% (H1 2007: 11,6%)

HEPS up 182% to 80.1 cents per share (H1 2007: 28.4 cents per share)

Strong cash flow from operations up 139% to R177m (H1 2007: R74m)

Capex spend of R160m

Maiden interim dividend of 20 cents per share declared

Group Operational Highlights

Strong growth experienced across all divisions

Operating margins improvement– Roadmac 20,2%

– Raubex Construction 12%

– Raumix 28,8%

Acquisitions bedded down (SPH Kundalila, National Asphalt and Milling Techniks)

Ongoing capacity expansion – Recruitment and training

– Acquisitions

– Continued operational efficiencies improvement

Order book grown to R2,3bn

Financial Review – Income Statement

31 Aug 07 31 Aug 06 Pro forma 31 Aug 06

Revenue (R’000) 963,498 792,747 575,561

% revenue growth 21,5%* - -

EBIT (R’000) 196,707 118,516 77,076

% growth 66%* - -

Profit before tax (R’000) 183,600 111,031 74,352

Profit after tax (R’000) 130,294 74,306 49,604

Operating margin 19,8% 14,2% 11,6%

Operating margin growth % 39,4%* - -

Effective tax rate 29,03% 33,08% 33,29%

EPS (cents) 79,8 45,8 28,4

EPS growth % 74,2%* - -

DPS (cents) 20 13,44 13,44

DPS growth 48,8% - -

ROCE 22,21% 20,18% 19,78%

* Pro forma growth

Financial Review – Balance Sheet

(R’000) Aug 07 Aug 06

Non-current assets 719,856 256,408

Property, plant and equipment 556,221 239,749

Goodwill 161,466 3,479

Other 2,169 13,180

Current assets 611,603 340,679

Inventory 37,374 11,831

Receivables 340,194 189,457

Construction contracts in progress 69,599 48,624

Cash 164,436 90,767

Total assets 1,331,459 597,087

Equity 587,310 275,330

Non-current liabilities 298,293 114,340

Current liabilities 445,856 207,417

Trade and other payables 333,768 179,520

Other 112,088 27,897

Total equity and liabilities 1,331,459 597,087

Financial Review – Cashflow

  31/08/2007   31/08/2006

Cash flows from operating activities  

Cash generated from operations 177,045,002 74,020,284

Finance income 5,097,029 4,636,924

Dividends paid - (13,435,519)

Finance costs (13,107,719) (2,724,163)

Taxation paid (10,474,666) (22,470,519)

Net cash from operating activities 158,559,646   40,027,007

Cash flows from investing activities  

Additions and acquisitions of fixed assets (160,396,278) (33,438,490)

Sale of fixed assets 46,985,498 1,201,100

Acquisition of subsidiaries 5,994,560 6,418,164

Net cash from investing activities (107,416,220)   (25,819,226)

Cash flows from financing activities  

Net proceeds from borrowings 49,522,758 18,352,038

Share issue expenses (19,755,679) -

Net cash from financing activities 29,767,079   18,352,038

Total cash movement for the period 80,910,505 32,559,819

Cash at the beginning of the period 77,328,576   57,125,211

Total cash at end of the period 158,239,081   89,685,030

Dividend declaration

Maiden interim dividend declared today

– 20 cents per share

– In line with the guidance provided prior to the listing

– 3X cover

Relevant date:

– Last day to trade cum dividend Friday, 23 November 2007

– Commence trading ex dividend Monday, 26 November 2007

– Record date Friday, 30 November 2007

– Dividend payable Monday 3 December 2007

Financial Review - Segmental Analysis

Segmental Analysis Raumix RoadmacRaubex

Construction Consolidated

31 August 07

Revenue 174,038,319 566,097,763 223,362,132 963,498,214

Operating profit 50,127,812 114,228,493 26,867,812 191,224,117

Operating Margin 28,8% 20,2% 12% 19,8%

31 August 06

Segmental Revenue 18,960,068 363,971,122 192,629,405 575,560,595

Operating profit 4,612,325 53,221,168 9,401,955 67,235,448

Operating Margin 24,3% 14,6% 4,9% 11,6%

Geographical segments Local% of

Group total International% of

Group total

31 August 07

Segmental Revenue 889,709,888 92,3% 73,788,326 7,7%

Operating profit 180,113,136 94,2% 11,110,981 5,8%

Operating Margin 20,2% 15%

31 August 06

Segmental Revenue 493,235,936 85,7% 82,324,659 14,3%

Operating profit 69,001,159 103% (1,765,711) (3%)

Operating Margin 14% (2%)

Divisional review - Roadmac

Revenues increased 55% to R566m [H1 2007: R364m]

Operating profit increase 115% to R114,2m [H1 2007: R53,2m]

Operating margin improved to 20,2% [H1 2007: 14,6%]

Largest contributor to Group revenues

Capex of R70m

Steady workflow and promising pipeline

National Asphalt and Milling Techniks performing well

Contribution of acquisitions

National Asphalt Milling Techniks

Profit after tax R6,7m R12,5m

Price paid R30,1m R25m

Divisional review – Raubex Construction

Revenues up 16% to R223m [H1 2007: R193m]

Operating profit increase 186% to R26,9m [H1 2007: R9,4m]

Operating margin improved to 12% [H1 2007: 4,9%]

Almost all lower margin contracts completed

Effect of new lucrative contracts being felt

Capex of R26m

Focus on greenfield type contracts

Divisional review - Raumix

Revenues increased 816% to R174m [H1 2007: R19m]

Operating profit increase 987% to R50,1m [H1 2007: R4,6m]

Operating margin increase to 28,8% [H1 2007: 24,3%]

Demand driven by government infrastructure programmes– Low cost housing– Road rehabilitation

Buoyant commodity market resulting in increase demand for material

handling services by mining houses

SPH Kundalila performing well Contribution of acquisition

SPH Kundalila

Profit after tax R17,8m

Price paid R162m

Divisional review – Raubex Construction International

Operating profit increase by 12.9m to R11,1m

– 5,8% of Group total

Revenues down 10% to R73,8m [H1 2007: R82,3m]

– 7,6% of Group total

Operating margin improved to 15%

Cautious approach

EU funded projects (Zambia)

Good pipeline of opportunities

Manpower available to repatriate to SA if necessary

Share Incentive Scheme

All resolutions approved at the AGM on 21 September 07

Share Incentive Scheme approved– Important strategic step in light of skills shortage

– Attract, retain and reward the best talent in the industry

76 beneficiaries to date– All middle management level

– 2 055 000 shares awarded

– 3 years lock-in period and restraints

Important tool to build capacity– 2 945 000 shares available

Capacity Building

Acquisition opportunities continually being explored

Three years apprenticeship programme

Recruited from schools and local communities

Bursaries and experiential training for tertiary education candidates

Includes diesel mechanics, foremen, civil engineers and site clerks– New recruits in 2007 - 39

– Current number of trainees - 57

– Trainees qualified since February 2007 - 10

– Projected intake in 2008 – 53

Capacity Building (cont.)

Two acquisitions announced today (subject to conditions precedent)

In-line with strategy

Strengthen capacity and geographical footprint

Currently in talks to finalise a further two acquisitions

Name of company Nature of business Location Deal value

Space Construction Specialised road and civil engineering KZN R50 million

Queenstown and Aliwal quarries Specialist quarry and aggregate operations EC R33,6 million

Some current projects

N1 north of Bloemfontein – upgrading to dual carriageway and construction of six major structures – R376m

N11 between Ermelo and Amersfoort – geometric upgrade – R350m

Zambia – rehabilitation of route between Chisamba and Kabwe

(important link between SA, the DRC and Tanzania) – R120m

N3 Marianhill Toll Plaza – asphalt overlay – R115m up

N3 between Heidelberg and Warden – Chip and Spray contract – R90m

Achieving our vision as a public company

Rationale for listing was fourfold:– Greater access to capital markets

– Attract and retain the best talents in the industry

– Raise the Group’s profile to generate new opportunities

– Unlock value for all shareholders

Realising tangible benefits as a public Group– Acquisitive drive

– Share incentive scheme

– PPP opportunities

– Value creation for all shareholders

Prospects

Continued demand for road construction and increased allocations

34% or 5300km of the national road network has a remaining structural lifespan of less than 5 years (source: SA Transport Ministry).

R30,2bn necessary to strengthen network

R23bn Gauteng road upgrade programme– Upgrading of existing freeways

– New roads

– Tollgates

– 2015 completion target

Public Private Partnerships

Further selective acquisition opportunities

Conclusion

Strong financial performance

The ability to identify, negotiate and fund value enhancing acquisitions

Management continuity

Middle management incentive scheme

Growing order book (R2,3bn) with better margins

Increasing demand for our line of work

Strong performance expected in the H2 driven by continued buoyant market conditions in the South African infrastructure sector.

Questions & Answers

CONTACTS

Raubex Group +27 (0)12 665 3226Francois Diedrechsen

College Hill +27 (0)11 447 3030Frédéric Cornet +27 (0)83 307 8286Jacques de Bie +27 (0)82 691 5384