Elvalhalcor Hellenic Copper And Aluminium Industry S.a. · ATHEX:ELHA
Elvalhalcor Hellenic Copper And Aluminium Industry — ElvalHalcor — Investor Presentation (December 2022)
68 slides from Elvalhalcor Hellenic Copper And Aluminium Industry's investor presentation, December 2022
Slide 1: Our way ahead - Corporate Presentation
Our way ahead 12.22 Corporate Presentation 1
Slide 2: Table of Contents
Table of Contents 01. 03. 05. We are 02. Aluminium 04. Market 06. ElvalHalcor Sustainability segment update Copper Our segment Performance 2
Slide 3: Viohalco at a glance
Viohalco A Euronext-listed holding company of leading metal at a glance processing companies across Europe. Viohalco companies specialise in the manufacture of aluminium, copper, steel, steel pipes and cables products. Viohalco’s portfolio also includes a dedicated R&D&I EUR 6.99 EUR 649 7 Sales in
Slide 4: We are ElvalHalcor
o1. We are. ElvalHalcor
Slide 5: ElvalHalcor at a glance/ Facts
ElvalHalcor at a glance/ Facts ElvalHalcor is a Greek-based leading global player in the non-ferrous metals industry. ElvalHalcor More than Among the Commercial export formed in 85 years of biggest global December 2017 via experience non-ferrous orientation with the merger of Elval metal industry we
Slide 6: ElvalHalcor at a Glance/ Figures
ElvalHalcor at a Glance/ Figures (31.12.2022) 3.7 3.4 € billion 271 € million 581 thousand tons >900 € million € billion revenue (2022)) total exports (2022) a-EBITDA (2022) volume of sales investments during the last 10 years The 2nd Νο.1 >94 countries 16 0.06 € aluminium rolling copper tubes state
Slide 7: Corporate Structure Overview
Corporate Structure Other Participations Overview 93% 28% (31.12.2022) Other Aluminium Copper Shareholders segment 15.2% 84.8% segment 100% 100% 100% 100% 89% 100% 49% 75% 100% 100% 50% 50% (1) (1) (1) 1. U ACJ ElvalHalcor, HC Isitma and NedZink are JVs 7
Slide 8: International Focus
International Focus Highly extrovert business model with solid presence in 94 countries for FY’22 around the globe and revenues generated abroad representing over. Greece 8% Other EU 62% 92% of total turnover Other Europe (non EU) 9% Production facilities UK 7% America 8% Asia 5% Group Africa turnov
Slide 9: Pass-through Business Model
Raw Material Costs Sales Price E H A dded Value N et A dded (F abrication and V alue Transportation C ost M ark-up) S crap Result LM E +P remium P remium S crap: M etal LM E price net Result of scrap rebates LM E M etal P rice Pass-through P rimary A luminium, Copper Raw M aterial C osts: Business M
Slide 10: Technology/ Our way ahead
Technology/ Our way ahead 10
Slide 11: Rolling forward
Rolling forward Continuous investments in state-of-the-art equipment & technology. Completion of installation of A 6-high aluminium Installation of 4 new bell a four-stand tandem aluminium cold rolling mill and annealing bases and a hot rolling finishing mill. a lacquering line. cleaning line. Incre
Slide 12: Focus on... tandem hot finishing mill
Focus on... The efficiency in Elval’s hot rolling production route, secured by the successful installation of the tandem hot finishing mill. Milestone Investment Hot rolling production route with single-stand reversing mill Hot rolling production route with tandem hot finishing mill ROUGHING FINISHI
Slide 13: Aluminium Strategic Priorities
Strategic Priorities Capitalizing on market trends and own strengths to accelerate EBITDA growth. Situation Overview / Actions Situation Overview / Actions • Aluminium FRP plant operated near full capacity, which was up to Increase Installed Capacity (‘000tn)(1) 375 thousand tons, before the install
Slide 14: Sustainability/ Our way ahead
2. Sustainability/ Our way ahead 14
Slide 15: Sustainability Strategy
Sustainability Strategy Our Sustainability Strategy A comprehensive action plan was created with the aim of the integrated management of all environmental, social and governance risks. Strategic commitments and directions Εnergy Carbon Health Supply transition footprint and Safety chain Progressive
Slide 16: Environment Social Governance
Environment Social Governance ESG risks mitigation is a priority for the Company’s responsible operation. Environment • Support sustainable products decarbonization technologies and circular economy Governance • Continuous improvement of our environmental carbon footprint • Responsible business prac
Slide 17: Sustainable Operation
Sustainable Track record highlighting actions Operation for continuous improvement in material issues. Aluminium State of the art Continuous, on line and Copper recycling industrial wastewater monitoring and for low carbon products treatment for the control of environmental Oinofyta plants parameter
Slide 18: People matters
People matters Our people are the key to our success. Our people and partners’ health We empower our people A rewarding work environment Continuous, ongoing training and safety is our priority and (improving leadership skills and based on equal opportunities for all and employee development primary
Slide 19: ElvalHalcor: a standalone powerful sector in the economy
ElvalHalcor A standalone powerful sector in the economy! Our financial and social footprint in Greece is significant according to an impact study conducted by IOBE*. €2.5 billion €1,3 billion 8.3% 52.1% 70.5% production value in 2022 annual total impact of the country’s total industrial of the base
Slide 20: Megatrends/ Our way ahead
Megatrends/ Our way ahead 20
Slide 21: Megatrends Enablers
Megatrends Enablers Circular Transition Technological economy to net zero Urbanization advancements • Low carbon and • Electrification • Sustainable and • Industry 4.0 recyclable products • Power storage smart buildings • Digitalization • Products with increased • E-mobility • Energy efficiency • Bi
Slide 22: Megatrends/ Products
Megatrends/ Products Aluminium segment’s products & solutions • Sheets and coils for beverage cans, • Sheet, plates, coils and profilesfor marine • Mill finish or coated sheets and profiles food containers and aerosol valves. Foil applications and road, rail transportation vehicles for building & co
Slide 23: Overview of Growth Drivers
Overview of Growth Drivers Global effort for reduction of plastic pollution is leading to increased demand for fully recyclable materials like aluminium and copper. Aluminium and Copper are 100% recyclable without loss of properties, making each of them a very sustainable material of choice for the
Slide 24: Overview of Growth Drivers
Overview of Growth Drivers Global effort for reduction of plastic pollution is leading to increased demand for fully recyclable materials like aluminium and copper. 24
Slide 25: e-mobility/ Cu-Alu
e-mobility/ Cu-Alu Copper and aluminium demand will be substantially impacted by the growing market for electric vehicles (EVs) over the next decade. Copper is used in electric motors, batteries, inverters, wiring and in charging stations. Battery boxes are strong drivers for aluminum. Copper conten
Slide 26: Aluminium segment/ Our way ahead
3. Aluminium segment/ Our way ahead 26
Slide 27: Aluminium Segment
Aluminium Segment State of the art production Fifth largest player in Europe with 8 plants 92% Invested approximately of turnover in facilities with capabilities to 7% in Greece, with annual production capacity sales abroad in €800 produce wide coils market share exceeding 375,000 around 90 million
Slide 28: Revenue of Core Products by Market & Geographical Segment
Revenue of Core Products by Market & Geographical Segment Aluminium Revenue breakdown (FY 2022) By Market (% of tons) By Geographical Segment (% of €) HVAC&R Building & Construction 5% America Greece 16% 11% 10% Energy & Power Networks 1% UK Africa & oceania 5% 1% Other Europe 14% Transportation 11%
Slide 29: Main Production Facilities
Main Production Facilities 1. E xpected to increase to 520,000 tons upon completion of the N ew €100 million investment Rolling Foil Rolling Foil Converting Oinofyta Greece Oinofyta Greece Mandra Greece Flat rolled aluminium products Foil for: • Conversion of aluminium foil into packaging applicatio
Slide 30: Main Production Facilities
Main Production Facilities. Coated Products & Composite Panels Rolling Shutters Extrusion Plant St.Thomas Greece Nea Artaki Greece Magoula Greece Solutions for a complete range of coated aluminium • Aluminium rolling shutters and doors Aluminium extrusions for Architectural and Industrial products u
Slide 31: Aluminium - Rolled Products/Markets
Aluminium - Rolled Products/Markets Packaging • Beverage cans • Food containers • Flexible packaging • Household foil Shipbuilding • Patrol vessels • Catamarans • Yachts • Ferries Commercial Transportation • Tipper trucks • Road silos • Refrigerator trucks • Cargo wagons Automotive • Internal parts
Slide 32: Aluminium - Rolled Products/Markets
Aluminium - Rolled Products/Markets Industrial Applications • Renewable energy • Bus ducts • Lamp base • Telecommunication cabins Domestic Applications • Cookware • White goods Building & Construction • Façades • Functional • Roofing coatings • Rain gutters • Flashings • False ceilings • Multi-layer
Slide 33: Aluminium - Extruded profiles/Markets
Aluminium - Extruded profiles/Markets Industrial applications • Radiators • Stages • Industrial parts Building & Construction Residential • Doors & windows • Shading systems • Balustrades Building & Construction Large Scale Projects • Doors & windows • Partition walls • Façades 33
Slide 34: Certified Processes and Quality Standards
Certified Processes and Quality Standards • Quality: certified according to ISO 9001:2015 • Environmental management system: certified with ISO 14001:2015 • Energy management system: certified according ISO 50001:2018 • Health and safety management systems: certified according to ISO 45001:2018 • Ce
Slide 35: R&D&I & Technology
R&D&I & Technology ElvalHalcor invests continuously in R&D&Ι of processes, products, and materials while promoting innovation. As an active member of Elkeme (Hellenic Research Centre for Metals), ElvalHalcor capitalizes on research to develop efficient technology, cutting- edge products and integrat
Slide 36: Copper segment/ Our way ahead
4. Copper segment/ Our way ahead 36
Slide 37: Copper Segment
Copper Segment State of the art production European market Products sold High Strong input in: facilities for copper and copper leader in copper in around specifications • HVAC&R industry alloy and titan products: • Largest tube mill in EMEA tubes. 80 countries output according to customers’ • Elect
Slide 38: Responsibly Produced Copper
Responsibly Halcor is a proud partner of #The Copper Mark, thus enhancing further its commitment to the Produced Copper United Nations Sustainable Development Goals and practices. 38
Slide 39: Production Facilities
Production Facilities Foundry Copper Tubes CopperAlloy Copper TubesBars, Tubes and Wires Oinofyta, Greece Oinofyta, Greece Oinofyta, Greece Foundry producing: Copper tubes plant producing: Specialises in the production • Copper billets and slabs • Copper tubes with or without plastic of extruded cop
Slide 40: Production Facilities
Production Facilities Copper alloy bars, tubes and wires Wires Coin blanks, Circles, DDQ Sofia, Bulgaria Livadia, Greece Pogoni, Greece Specialises in the production of rolled Specialises in the production of enameled copper and Specialises in the production of all types of and extruded copper and c
Slide 41: Production Facilities
Production Facilities Tubes Titanium Zinc (1) (1) Gebze, Turkey Budel, Netherlands Specialises in the production of Specialises in the production of rolled pre-insulated copper tubes coils. titanium zinc products. Capacity: Capacity: 10 million meters/year 36,000 tons/year 1. H C Isitma and NedZink
Slide 42: Revenue of Core Products by Market & Geographical Segment Cu
Revenue of Core Products by Market & Geographical Segment Copper Revenue Breakdown (FY 2022) Cu By Market (% of tons) By Geographical Segment (% of €) Transportation Other Industrial Markets America Greece 2% 6% 4% 8% Industrial Applications Asia 27% Africa & Oceania Energy & Power Networks 5% 2% 17
Slide 43: Products & Main Applications
Products & Main Applications HVAC&R Industrial • Air-conditioning Applications • Refrigeration • Fittings • Heat exchangers • High frequency cables • Boilers • Filters • Various industrial applications Building & Renewable Construction Energy • Water supply and Heating networks • Solar absorbers • U
Slide 44: Products & Main Applications
Products & Main Applications Industrial Automotive • General mechanical Commercial engineering Transportation • Heat exchangers • Deep drawing quality • Buttons • Connectors • Boilers for Solar Systems • Battery terminals • Pre-rolled • Power distribution bus bars • Relays • Switches • Fuses Electri
Slide 45: Products & Main Applications
Products & Main Applications Enameled Coin & Welding Blanks, Wires Circles, DDQ • Enameled copper and aluminium wires • Rectangular enameled copper wires • Coin blanks all types • Copper welding wires • Rings for bi-colour coin blanks • Cymbals • Decorative parts • Boilers for Solar Systems • Deep d
Slide 46: Certified Processes Quality Standards
Certified Processes Quality Standards SPAIN - AENOR GERMA NY - GL GERMANY - TUV CERT ROMANIA - A R FINLAND - VTT SWEDEN - SITAC USA - NSF FRANCE - AFNOR GERMANY - CU CROATIA - VIK U.K. - BSI SINGA PORE - SETSCO EUROPEAN COM. • Quality: certified according to ISO 9001:2015 • Environmental management
Slide 47: Market Update
5. Market Update 47
Slide 48: Diversified Exposure to Structural Attractive and Growing Markets
Diversified Exposure to Structural Selling product into diverse end markets that are expected Attractive and Growing Markets to grow or have limited sensitivity to economic cycles. Product Mix Key Macro Drivers Effect on ElvalHalcor Manufacturing activity and industrial growth in dev eloped and emer
Slide 49: Market Shares
Market Shares European demand - Al flat rolled products European demand – Cu Tubes kTns ElvalHalcor’s kTns ElvalHalcor’s Share Share Industrial applications 819 3.2% Industrial applications 21.5% Building and construction 573 8.9% 71 Automotive Building and construction 20.1% 875 2.5% 134 and transp
Slide 50: Our Performance
6. Our Performance 50
Slide 51: Consolidated Key Figures. 2022 vs 2021
Al Consolidated Cu Key Figures. 2022 vs 2021 Volumes (kTn) Rev enue (€m) +2 8 .8% EBITDA (€m) +5 .2 % +5 1.5% 3,714 581 326 553 2,883 1,927 215 1. Adjusted for aluminium and copper price fluctuations and other non recurring items. 362 392 1,340 248 124 1,543 1,787 190 189 91 79 2021 2022 2021 2022 2
Slide 52: Sales evolution per quarter
Sales evolution per quarter. Sales Volumes (‘000tn) +8.2% Aluminium +2 1.2% 392 362 2020 299 2021 2022 +10 .9% +12 .4% +9 .4% +0 .3 % 94 91 102 95 104 91 91 76 85 67 77 79 Q1 Q2 Q3 Q4 Total Copper 2020 -0.5% 2021 +7 .9 % 2022 190 189 176 +5 .1% +5 .8 % -3 .7 % -9 .4% 45 49 52 47 48 51 42 45 43 43 48
Slide 53: Working Capital and Consolidated Net Debt
Increase in Working Capital Working Capital % of Sales Consolidated Net Debt Breakdown (€m) is attributable to the increased metal prices and volumes. ~ 22% +21.4% 956 31.12.2020 787 ~ 22% ~ 20% ~ 21% 31.12.2021 623 ~ 22% 31.12.2022 463 673 784 +43% 194 206 207 888 820 -34 -91 -35 31.12.2020 31.12.2
Slide 54: Capex Evolution
Capex Accelerating investments Evolution. to meet demand. Cu Al 172 Source: Annual Financial Statements and Company information. 164 12 €m 20 145 15 420 116 22 92 160 34 144 130 38 94 58 2018 2019 2020 2021 2022 26
Slide 55: Conclusion/ Highlights
Conclusion/ Highlights ElvalHalcor has invested State of the art The 2nd aluminium A proven track- record, significantly in the last equipment and a rolling plant in Europe having reached No1 years and is ready to competitive cost base. (in terms of hot rolling in the Cu tubes leverage the benefits.
Slide 56: Income Statement
Income Statement PROFIT & LOSS STA TEMENT Amounts in € million 2020 2021 2022 Revenue 2,028.6 2,883.0 3,714.2 Aluminium Segment 975.8 1,349.3 1,927.5 Copper Segment 1,052.8 1,542.3 1,786.7 Cost of Sales (1,893.6) (2,648.2) (3,361.7) Gross Profit 134.8 234.8 3 52.5 Gross Profit Margin (%) 6.6% 8.1% E
Slide 57: Balance Sheet
Balance BALANCE SHEET Amounts in € million 2020 2021 2022 BA LANCE SHEET HIGHLIGHTS A mounts in € million 2 020 2 021 2 022 Sheet Non- current Assets ( i) Working Capital Property , Plant and Equipment 851,9 967,7 1,031.7 Inv entories 503.8 697.6 861.9 Right of Use assets 19,7 22,0 18.6 Trade and Ot
Slide 58: Appendix
Appendix 58
Slide 59: Merger Rationale Merger Perimeter
Corporate Restructuring • Leading aluminium rolling manufacturer globally Sizeable • Dynamic commercial presence in European and global markets Financial Integrated production with established commercial network across 21 countries strength facilities • Offers innovative solutions for packaging, tra
Slide 60: History Overview
History Overview Increase of production Cross-border merger capacity for 9m-long by absorption of the Installation of the slabs and installation Greece-based Elval Holdings, Installation of new Installation first Green melt of the second Green Alcomet, Diatour and the Viohalco commenced single stand
Slide 61: History Overview
History Overview Through its subsidiary Gains leading position among • Viohalco commenced Sofia Med, Halcor Completion of its • European copper tubes manufacturers. activities on Copper purchased the fixed 10-year extensive • Commencement of assets of KOZM and investment plan, which Signing of coope
Slide 62: Rolling forward: Tandem hot finishing mill
Continuous investments in state-of-the-art equipment & technology/ Rolling forward Tandem hot • Commissioned by SMS Group • Precise, safe, and efficient hot rolling finishing mill • Elevating annual production capacity >500,000 tons with the addition of the six-high cold mill, with potential for >80
Slide 63: Rolling forward: Six-high cold rolling mill
Continuous investments in state-of-the-art equipment & technology/ Rolling forward Six-high • Commissioned by Mino SpA • Over 2 meters wide cold rolling mill • Utilization up to extra 150,000 tpy of additional hot rolling capacity • High-performing process control system • Advanced model-based predi
Slide 64: Rolling forward: Lacquering line
Continuous investments in state-of-the-art equipment & technology/ Rolling forward • Contract awarded to technology Lacquering groups Andritz and Spooner line • Fully automated line • Operating at 200 m/min • Capability to produce 2,050 mm wide coils • Advanced tension leveller, coaters, side trimme
Slide 65: Focus on... 6-high aluminium cold rolling mill
Elval's milestone investment: Focus on... A new 6-high aluminium cold rolling mill. 6-high aluminium cold rolling mill The mill commissioned by MINO S.p.A. Advanced sensors and monitoring The cold mill reinforces Elval's product Part of a EUR 100 million investment system including bearings temperat
Slide 66: Certifications by company/plant
Certifications by company/plant SYMETAL SYMETAL ELVAL CABLEL EPIRUS ELVAL VEPAL HALCOR SOFIA MED OINOFYTA MANDRA COLOUR WIRES METALWORKS ISO 9001:2015 √ √ √ √ √ √ √ √ √ ISO 14001:2015 √ √ √ √ √ √ √ √ √ ISO 45001:2018 √ √ √ √ √ √ √ √ ISO 50001:2018 √ √ √ √ √ √ √ √ ISO 46001:2019 √ IATF 16949:2016 √ √
Slide 67: Disclaimer
Disclaimer The information contained in this corporate presentation (CP) has been prepared by ElvalHalcor S.A. (the Company). Forward Looking Statements It is based on historical financial data and other information already publicly disclosed by the Company. It also Certain statements in the C P are
Slide 68: www.elvalhalcor.com
www.elvalhalcor.com