Slide 1: Full Year 2023 Results Investor Presentation (ASX release)
MAGONTEC Limited ABN 51 010 441 666 Registered office Suite 1.03, 46A Macleay Street Potts Point, Sydney NSW 2011 T: +61 2 8084 7813 13 March 2024 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney, NSW, 2000 For personal use only FULL YEAR 2023 RESULTS INVES
Slide 2: Magontec Limited Full Year 2023 Results Investor Presentation
For personal use only Magontec Limited ASX:MGL Full Year 2023 Results Investor Presentation March 2024
Slide 3: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Magontec Limited (ABN 30 147 Past performance Investment Risk and other risks 131 977) (Magontec or the Company). This Presentation contains summary Past performance information given in this Presentation is given for Investment
Slide 4: Overview: Dashboard for 2023
Overview For personal use only Dashboard for 2023 REVENUE EBITDA UNDERLYING NPAT* EPS $102.4 mil $5.5 mil $1.7 mil 0.6 cents CASH FLOW FROM FINAL DIVIDEND / NET CASH/(DEBT) GROSS PROFIT UNDERLYING SHARE MARGIN OPERATIONS** $8.7 m (UNFRANKED) $6.1 mil CASH ON HAND 2H23 0.6 cents 18.8% $13.1 m 2H22 0.
Slide 5: FY 2023 Full Year Result
FY 2023 Full Year Result Underlying Net Profit After Tax * ($M) $17.8m For personal use only • Global Magnesium prices declined in 2023. High pure Mg inventories in China Fugu region reflecting softer global markets • Strong Magontec market positions in each product $4.4m $1.7m • Refurbishment of Xi
Slide 6: FY 2023 Full Year Result: Net Debt and Cash Flow
Net Debt ($M) and Gearing** (%) FY 2023 Full Year Result 33.0% 28.8% For personal use only • Net cash position of $8.7m as at 31 December 2023. $15.3 16.0% $11.7 • No net debt. $6.9 • Gearing ratio** of (18.2%) • Continuation of dividend through 2023 -$2.0 -$8.7 (3.6%) • Higher capex in 2023 to fund
Slide 7: Magnesium, coal, FeSi and dolomite price trends
Prices for Mg inputs (coal, FeSi and dolomite) down Vs PCP. 2. Magnesium & Ferro Silicon (RHS) For personal use only $55,000 ¥13,000 $55,000 1. Magnesium & Aluminium (1 Jan 2022 - 7 Feb 2024) $50,000 (1 Jan 2022 - 7 Feb 2024) $50,000 ¥12,000 $45,000 $45,000 ¥11,000 Mg 99.9% China RMB Mg 99.9% China
Slide 8: FY 2023 Full Year Result - Metals
FY 2023 Full Year Result - Metals Metal GP lower during the year following lower pure Mg prices For personal use only Global metals gross profit (A$M) Global Mg alloy and specialist metals sales volumes (metric tonnes) 25.0 25.0% 19.9% 20.0 20.0% 2023 15.0 15.0% 8.1% 2022 7.7% 10.0 10.0% 6.3% 2021 5
Slide 9: Primary Mg alloy manufacturing at Golmud
Primary Mg alloy manufacturing: At Golmud in Qinghai province PRC Manufactures Mg alloys from pure Mg and other alloying element raw materials For personal use only Magontec plant adjacent to ~ 90% renewable Customers in the QSLM anticipates supply of QSLM electrolytic Mg smelter energy from install
Slide 10: Our businesses
Magontec Limited: ASX Code: MGL Our businesses For personal use only Metals Anodes Primary & recycled Magnesium and magnesium alloys electronic anodes Pure Mg & Scrap Electronic Mg alloy & other alloying returns components components elements Mg alloy Cathodic ingots Corrosion Generic Protection CCP
Slide 11: Mg alloy recycling: Bottrop and Santana
Mg alloy recycling: At Bottrop (Germany) and Santana (Romania) An essential part of the European and North American die casting industry For personal use only Recycling adds Mg is 100% Installed capacity Europe’s largest just 0.59 kg CO2 recyclable 24k mtpa Mg recycler equivalent/kg of Mg* Magontec
Slide 12: FY 2023 Full Year Result – CCP / anodes
FY 2023 Full Year Result – CCP / anodes GP Margin resilient in the face of lower volumes For personal use only Global CCP gross profit (A$M) Global magnesium anode sales volumes (metric tonnes) 20.0 31.7% 32.5% 35.0% 30.6% 18.0 26.1% 30.0% 16.0 2023 14.0 25.0% 12.0 20.0% 2022 10.0 8.0 15.0% 6.0 10.0
Slide 13: Cathodic Corrosion Protection (CCP)
Cathodic Corrosion Protection (CCP) Every water tank in every house requires corrosion protection For personal use only New Buildings 20% CCP 80% Replacement Magnesium Electronic anodes Industry drivers Climate change Urbanisation (water heater installation) Switch from oil/gas to electric heat pump
Slide 14: Powered anodes a growth market
Powered anodes a growth market European Hydronic (water) Heat Pump Installations up to 400kW (Total Market) For personal use only 1,600,000 The market for Magontec's powered anodes is growing quickly, driven 1,400,000 by government incentives and the climate emergency. 1,200,000 +380% in the 11 year
Slide 15: Magontec Qinghai magnesium alloy cast house
Magontec Qinghai magnesium alloy cast house For personal use only Revenue and profit Currently operating Cast house impact opportunity Delayed SOP at low levels 2023 Target Mg production mtpa 5k 56k Revenue A$ ~$25m $200m+* Cast house Contribution Loss Profit Industry CO2 output High Low SOP Timetab
Slide 16: Magontec Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* For personal use only Qinghai 35 Future Present 30 Kg CO2eq / kg Mg Includes credits for 25 use of waste gas 20 15 Includes credits for by-products 10 5 0 Golmud, China 2020 Qinghai 2020 Electrolysis Pidgeon process *German Aerospace Institu
Slide 17: FY 2023 Full Year Result – Key financial highlights
FY 2023 Full Year Result – Key financial highlights Equity, Borrowings, Cashflow For personal use only 12 months to 12 months to (AUD ‘000) 31 December 2023 31 December 2022 Equity EBITDA 5,470 27,263 (79.9%) NPAT excluding unrealised FX 1,746 17,818 (90.2%) Reported Net Profit After Tax 466 16,515
Slide 18: Magontec Limited Market Information
Magontec Limited Market Information For personal use only ASX Code: MGL Total Per Share Shareholder Structure 31 December 2023 Ordinary shares on issue 78,515,474 Book value of net assets 42.0%, Other – 31 December 2023 $56.6 million 72.1 cents/share 28.9%, QSLM 1 Market capitalisation $29.8 million
Slide 19: Thank You
Thank You For personal use only MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road, Suite 1.03 46a Macleay St 46240 Bottrop Xian Economic and Potts Point Sydney Germany Development Zone NSW 2011 AUSTRALIA Xian, China, 710021 Tel +61 2 8084
Slide 20: Magontec Limited Full Year 2023 Results (Appendix)
For personal use only Magontec Limited ASX:MGL Full Year 2023 Results Investor Presentation March 2024
Slide 21: Appendix - FY 2023 Full Year Result Summary
Appendix - FY 2023 Full Year Result Summary Income statement For personal use only 12 months to 12 months to (AUD ‘000) 31 December 23 31 December 22 Revenue 102,357 158,600 (35.5%) Cost of Sales (83,133) (120,005) (30.7%) Gross Profit 19,224 38,595 (50.2%) Gross Profit margin (%) 18.8% 24.3% Other
Slide 22: Appendix - Reconciliation of significant items in earnings
Appendix - FY 2023 Full Year Result Reconciliation of significant items in earnings For personal use only (AUD ‘000) 12 months to 31-Dec-23 12 months to 31-Dec-22 Reported Net Profit Before Tax, unrealised FX & Significant Items 5,940 25,434 Significant items before tax Less write-down of inventory
Slide 23: Appendix Full Year 2023 Result by Region
Appendix Full Year 2023 Result by Region Segment P&L For personal use only 12 months to (AUD ‘000) EUR PRC Head office 31 December 2023 Gross Profit 16,018 3,206 - 19,224 Other income 1,777 902 3 2,682 Operating expenses (12,183) (3,895) (2,618) (18,696) Add back D&A in Cost of Sales 1,098 1,162 - 2
Slide 24: Appendix Full Year 2022 Result by Region
Appendix Full Year 2022 Result by Region Segment P&L For personal use only 12 months to (AUD ‘000) EUR PRC Head office 31 December 2022 Gross Profit 34,298 4,296 - 38,595 Other income 1,197 252 - 1,450 Operating expenses (9,148) (3,453) (2,351) (14,952) Add back D&A in Cost of Sales 1,080 1,091 - 2,