Business
Capital Markets Event
Capital Markets Event.
About this update from Rhi Magnesita Nv
[{"type":"text","content":"\n \nRNS Number : 3514T RHI Magnesita N.V. 14 November 2019 \n\nRHI Magnesita N.V.\n(\"RHI Magnesita\", the \"Company\" or \"the Group\")\n \n \nCapital Markets Event\n \nRHI Magnesita, the leading global supplier of high-grade refractory products, systems and solutions, is hosting a Capital Markets Event in London for investors and analysts this morning. \n \nMembers of the senior management team will present on all aspects of the business including the Group's business model, sales and strategies, operations, innovation potential and financial priorities. \n \nThe presentations will set out how the current strategy will support future profitability, including details of two key initiatives, the Production Optimisation Plan and enhanced Sales Strategies. The Production Optimisation Plan includes the rationalisation and specialisation of the Group's production footprint and other cost reduction measures. The enhanced Sales Strategies continues focus on our key growth markets in Asia and the development of our solutions business model and digital customer offering. \n \nThese two initiatives are together targeting a run-rate, annual EBITA improvement of €70-80 million by 2022 and have associated costs to deliver of €220m, broadly split between 2020 and 2021. These costs will partly be financed by working capital reduction.\n \nAs previously announced, in 2020 we are expecting the delivery of the final merger synergies (an additional €20m EBITA in 2020), the turnaround of previously announced operational issues (€15m EBITA) and benefits from the recently implemented price management programme. These benefits, alongside the Production Optimisation Plan and Sales Strategies, are expected to help offset the market challenges in the short term. In the medium term, the Production Optimisation Plan and Sales Strategies are expected to deliver further upside, including margin improvement.\n \nThe event will be webcast at www.rhimagnesita.com. Presentation materials will also be made available on the website later today. \n \n \n \nFor further enquiries, please contact:\nGuy Marks, Head of Investor Relations\nTel +44 (0) 7932 013357\nE-mail: [email protected] \n \n \nAbout RHI Magnesita\n \nRHI Magnesita is the leading global suppli...