Metlen Energy & Metals PLC · LSE:MTLN
Metlen Energy & Metals — Mytilineos — Investor Presentation (November 2018)
33 slides from Metlen Energy & Metals's investor presentation, November 2018
Slide 1: Company Presentation November 2018
COMPANY PRESENTATION November 2018
Slide 2: Disclaimer
Disclaimer These preliminary materials and any accompanying oral presentation (together, the “Materials”) have been prepared by MYTILINEOS S.A. (the “Company”) and are intended solely for the information of the Recipient. The Materials are in draft form and the analyses and conclusions contained in
Slide 3: Presentation Agenda
1. MYTILINEOS OVERVIEW • Overview • Strategy • Key Financials 2. BUSINESS UNITS ANALYSIS • Metallurgy • Power & Gas • EPC & Infrastructure • Corporate Governance & ESG 3. APPENDIX • Stock Data – Performance • Most recent financial results PRESENTATION AGENDA
Slide 4: Mytilineos Overview
Mytilineos Overview • Leading diversified industrial company in South-East Europe, founded in 1908 with activities in Metallurgy, Power & Gas and EPC & Infrastructure listed on Athens Stock Exchange (ASE) since 1995 • Strong international presence, with almost half of sales outside Greece employing
Slide 5: Strategy: Focused on Long Term Performance
Strategy: Focused on Long Term Performance Become regional leader in each sector 12% CAGR of Book Value per Share in the last 22 Year Strategy through continuous reinvestment while ensuring stable shareholder returns Corporate €/Share Restructuring Enter retail Metallurgy Mkt Cap: electricity market
Slide 6: Corporate Governance
Corporate Governance Since June 2018, Company has taken the decision to align with EU and international best practices June 2018 • Decision to align with EU and international best practices • Full board revision: 11 member BoD with 64% independence In progress (since June 2018) ▪ Adoption of UK Code
Slide 7: Mytilineos ESG: Top Tier Scores by ISS
MYTILINEOS ESG: TOP TIER SCORES BY ISS MYTILINEOS’ STRENGTH ALSO LIES IN ITS’ RESPECT TOWARD THE ENVIRONMENT & HEIGHTENED SOCIAL CONSCIOUSNESS Sep Oct Improved scoring post inclusion of Governance 9 6 governance related Board Structure 9 7 changes Compensation 6 6 Shareholder Rights 1 1 Audit & Risk
Slide 8: Key Sector Analysis
Key Sector Analysis an | eer ee
Slide 9: Metallurgy
Metallurgy Activity • Vertically integrated alumina & aluminium producer • 1st Quartile in Global Aluminium Smelting Cost Curve • 1st Quartile in Global Alumina Refining Cost Curve Presence • World class assets in Greece • Exports mainly routed to core European markets Company Focus • Strict commitm
Slide 10: Fully vertically integrated operations from mine to port
Fully vertically integrated operations from mine to port Bauxite Alumina Aluminium Power Port Mines Refinery Smelter Production Facilities Second largest bauxite Producer of 17% of total Production capacity in 334 MW CHP On-site, privately producer in Europe European Alumina excess of 190ktpa owned
Slide 11: 1st Quartile in Aluminium & Alumina Cost Curve
1st Quartile in Aluminium & Alumina Cost Curve Global Primary Aluminum Smelting Output Cash Cost Curve by Company Implementation of investments and operating 1ST QUARTILE 3RD QUARTILE 4TH QUARTILE cost reduction programs 2ND QUARTILE Boosted the Company competiveness CHINESE COMPANIES ROW COMPANIES
Slide 12: Lowest cost Aluminium & Alumina producer in E.U.
Lowest cost Aluminium & Alumina producer in E.U. Metallurgy Sector EBITDA Semi Annual Performance - All in Aluminium Prices “MELLON” “EXCELLENCE” “The Best” Cost cutting program Cost cutting program Cost cutting program * Safeguarding • Mytilineos reaping the benefits of the consecutive cost cutting
Slide 13: Market Review – Aluminium
Market Review – Aluminium Global Aluminium Market per region – 1H18 LME & Premium prices USD/TN USD/TN Mmt • Global aluminium demand continued to be strong, increasing in 1H2018 by 4.1% to 32.8 • Average 9M2018 LME prices increased by 12% vs. 9Μ2017 at $2,160, premia Mmt. Demand growth led by China,
Slide 14: Market Review – Alumina
Market Review – Alumina Global Alumina Market per region – 1H18 Alumina price ($/TN) Mmt USD/TN % of LME • Demand in 1H18 remained relatively unchanged compared to the same period in • Alumina prices in early April rose sharply to historically high levels 2017. (surpassing $800/tn) by a combination
Slide 15: Power & Gas
Power & Gas Activity • Power generation from thermal plants (1,200 MW) and renewables (171 MW) • Wholesale electricity sales and cross border trading • Retail electricity sales in Greece Presence • Largest independent electricity producer in Greece (10% of total domestic generation) • Leading privat
Slide 16: Growing presence in the domestic market
Growing presence in the domestic market Mytilineos is the largest domestic independent electricity producer Group Power Production (GWh) Market Power Production mix Domestic Power Generation 9M 2018 (38.7 TWh) from conventional units +152 % 9M 2018 (25.8 TWh) +17 % 4.9TWh Korinthos Power 4.2TWh Ag.
Slide 17: Largest domestic independent electricity producer
Largest domestic independent electricity producer Investment plans of over €1 billion in the past ten years has established the Company as the dominant independent power producer in Greece 1.2 GW from Thermal Plants in Greece CCGT Viotia CCGT Korinthos CHP Viotia • Combined cycle natural gas fired u
Slide 18: EPC & Infrastructure
EPC & Infrastructure Activity • EPC contractor specialized in turn-key energy projects, primarily gas and solar • World-class manufacturer of high value-added, complex infrastructure and industrial constructions Presence • International presence with projects throughout Europe, Middle East and Afric
Slide 19: Leading EPC contractor with International Profile
Leading EPC contractor with International Profile With over 50 years experience, EPC segment is internationally recognized segment is recognized for its reliability, flexibility and strong execution track-record ENGINEERING, PROCUREMENT, DEVELOPMENT OPERATION & MAINTENANCE CONSTRUCTION Activity Sens
Slide 20: Broad International Presence
Broad International Presence • Major power plant projects throughout Europe, the Middle East and Africa • Strong emphasis on highly-efficient power plant technology • Strong ties with major technology providers • Excellent track record of projects delivered to top tier clients Geographically Diverse
Slide 21: EPC & Infrastructure: Portfolio of Projects
EPC & Infrastructure: Portfolio of Projects Within the EPC business, the Group is strongly focused on serving the needs of international markets and is active in carrying out major power plant projects throughout Europe, the Middle East and Africa Main Projects under Execution Greece Railway Infrast
Slide 22: EPC & Infrastructure: New Orders evolution and Prospects
EPC & Infrastructure: New Orders evolution and Prospects New Orders Evolution & EBITDA margin Prospects Greece •Energy: Upgrading of lignite fired plants •Infrastructure: activity in selected areas, e.g. transportation Europe • SEE: Niche gas-fired activity, e.g. co-gen for district heating • Optimi
Slide 23: Appendix
03 Appendix
Slide 24: Mytilineos consistently outperforming the market
Mytilineos consistently outperforming the market Share Price Information Shareholder Structure • Market Cap*: €1,0 bn / $1,1 bn • Total No of shares: 142,891,161 • Free Float: 73.5% +93% • Listing: FTSE LARGE CAP 25 • Tickers: MYTIL.GA, MYTr.AT -66% Liquidity • Mytilineos is among the most liquid sh
Slide 25: Key Financials
Key Financials Revenues EBITDA (amounts in mn €) (amounts in mn €) 22% 19% 20% 17% 18% EBITDA 1,403 1,383 1,527 margin 1,233 1,246 306 369 187 507 167 364 254 225 234 222 75 650 74 22 604 602 501 89 65 89 438 123 110 82 549 108 142 436 471 448 519 87 98 42 84 2013 2014 2015 2016 2017 2013 2014 2015
Slide 26: Debt Profile
Debt Profile Cash – Debt Evolution (amounts in mn €) 404 Debt Maturity Profile 30/6/18 ▪ Average funding cost level to be (amounts in mn €) reduced by an additional 20% in 2018, compared to €36m in 2017, ATHEX Bond €300 mn where a 16% reduction was achieved vs 2016 ▪ Consistent reductions are due to
Slide 27: Merit Order
Merit Order MYTILINEOS units ranked in the first positions among energy producers Merit Order based on Bids – September 2018 Effective SMP = 68,4 €/MWh Price Makers Total Hours % of per type of fuel Sept 18 Hours Lignite 246 34,2 Gas 432 60,0 Hydro 7 1,0 Imports / Exports 35 4,8 Total 720 100% CO2:
Slide 28: Growing Share in the Domestic Retail Electricity Market
Growing Share in the Domestic Retail Electricity Market Retail Electricity Market – Number of active customers 118.102 Protergia consistently ranks first among active 113.026 109.901 customers, reaching over 118,000 for Oct-2018 104.548 107.469 107.073 101.137 103.100 95.108 98.042 93.320 98.420 103
Slide 29: 9M18 Trading Update Summary
9M18 Trading Update Summary For the first nine months, Company continues to deliver strong • Metallurgy: The Metallurgy Unit continued to record results in line with first half 2018 financial performance. strong performance within the first nine months of 2018. Continued investments, to increase pro
Slide 30: 1H2018 Results Overview – P&L
1Η2018 Results Overview – P&L 30
Slide 31: 1H2018 Results Overview – Balance Sheet
1H2018 Results Overview – Balance Sheet Liquidity * ROCE & ROE calculations are available in 1Η 2018 Financial Results Notes 3 1
Slide 32: 1H 2018 Results: Business Units Analysis
1H 2018 Results: Business Units Analysis Metallurgy Power & Gas EPC & Infrastructure (amounts in mn €) 32
Slide 33: Contact Information
Contact Information Cleo Lymberis Dimitris Katralis IR Director IR Officer Email: Email: cleo.lymberis@mytilineos.gr dimitrios.katralis@mytilineos.gr Tel: +30-210-6877412 Tel: +30-210-6877476 Fax: +30-210-6877400 Fax: +30-210-6877400 Mytilineos S.A. 5-7 Patroklou Str. 15125 Maroussi Athens Greece Te