Slide 1: Q2/2017 Investor Call Presentation
Q2/2017 Investor Call Presentation Welcome August 11, 2017
Slide 2: Disclaimer
Disclaimer • This document has been compiled by Afarak Group plc (“Afarak”). While the information contained herein is believed to be accurate, no representation or warranty, express or implied is or will be given by Afarak or its respective directors, employees or advisors or any other person as to
Slide 3: Speakers from Afarak Group
Speakers from Afarak Group • Guy Konsbruck, CEO • Danko Konchar, COO • Predrag Kovacevic, CFO • Michael Lillja, Commercial Director 3
Slide 4: Agenda
Agenda • Overview • Mining & Production Asset Overview • Q2 results • Market sentiment for Q3 • Q&A 4
Slide 5: Overview
Overview • Afarak continued to achieve solid and EBITDA, EUR million robust results in 2017. 14 12.7 12 • In quarter two, we achieved another 10 positive result with Group EBITDA, 8 reaching EUR 4.8 million, up from EUR 0.8 6 4.8 million a year earlier. 4.3 4 3.3 • Ferrochrome prices, though lower t
Slide 6: Segment performance
7 A XN Segment performance
Slide 7: Segments, Q2 2017
Segments, Q2 2017 Speciality Alloys FerroAlloys Production, mining (mt) Higher productivity at Increased activity at Stellite; TMS, Turkey higher yields from shaking tables and continuosly improving mining at Mecklenburg Production, processing Temporary stoppage at Higher productivity at EWW, German
Slide 8: Financial results
7 A XN Financial results
Slide 9: Results, Q2 2017
Results, Q2 2017 € million Q2 2017 Q2 2016 Y-o-Y Comments Revenue 47.4 39.5 Higher revenue in both Speciality and FerroAlloys segments EBITDA 4.8 0.8 Significant increase, due to a better overall perfromance and Y-o-Y EBIT 3.3 -0.9 comapratively stronger market conditions. The prices and market Prof
Slide 10: Financial indicators & balance sheet
Financial indicators & balance sheet H1 H1 2017 2016 Comments Return on Equity (ROE), % 6.4 -1.5 Return on Capital Employed (ROCE), % 18.1 2.1 Significantly improved, due to strong performance in H1 2017 Equity ratio, % 68.2 65.7 Gearing ratio, % -2.8 -4.5 Strengthened as a result of increased cash
Slide 11: Sentiment
7 A XN Sentiment
Slide 12: Global market overview
Global market overview Demand – Prices – Outlook – Outlook – Q2/2017 Q2/2017 Q3/2017 Q4/2017 Stainless steel Ferrochrome Chrome ore 12
Slide 13: Expected Q3 performance versus Q2
The seasonally slower market, decreased ferrochrome prices and negative effects of exchange rate movements are expected to contribute to a lower performance compared to the second quarter results, though improved when compared to a year earlier 13
Slide 14: Sustainability
7 A XN Sustainability
Slide 15: Health & Safety
Health & Safety • During quarter two 2017, there were 7 (Q2/2016:3) recordable injuries, of which 5 (Q2/2016:3) were lost-time injuries • These injuries resulted in 167 (Q2/2016: 106) lost days due to injury, increasing the lost time injury frequency rate to 9.5 from 6.8 a year earlier • Whereas Mog
Slide 16: Environment
Environment • At EWW we continued investing in the de-dusting system which will mitigate the release of dust from the plant • Water management and conversation plays a key role in the Company’s environmental strategy • At the TMS mines in Turkey, the Company has continued to invest in press filter s
Slide 17: Community investment
Community investment • Afarak also continued investing and supporting its corporate social responsibility programme in South Africa • Throughout 2017, it continued with its commitment to support meals to 155 children • Similar meal schemes are also run in conjunction with Magda Fourie at the Paardek
Slide 18: Thank you.
Thank you. Welcome