Afarak Group Se Class A · OMXHEX:AFAGR
Afarak Group Se Class A — Ruukki Group — Investor Presentation (June 2011)
19 slides from Afarak Group Se Class A's investor presentation, June 2011
Slide 1: Unlocking Value To Deliver Profitable, Sustainable Growth
Unlocking Value To Deliver Profitable, Sustainable Growth www.ruukkigroup.fi June 2011 1
Slide 2: Company Highlights
Company Highlights • Ruukki is a growing, integrated ferrochrome producer, supplies specialist products to steel Specialty Alloys: Turkey & Germany & stainless steel industries, both high growth • Ruukki’s DC smelting technology approx 20% OMX Helsinki: RUG1V cost efficiency over conventional ferroc
Slide 3: Corporate Information
Corporate Information Shares in issue 248,207,000 Major Shareholders % Market Cap (30 May £366m 2011) €407m KERMAS 29 ATKEY 21 Year End 31 December HANWA 12 Brokers Investec / RBC NORDEA BANK 7 LSE RKKI EVLI BANK NOMINEES 7 52wk high 177.00p JP MORGAN ASSET MGMT 5 52wk low 144.50p S.E.B NOMINEES 4 O
Slide 4: Rapid Transformation from Conglomerate into Focused Mining Company
Rapid Transformation from Conglomerate into Focused Mining Company 2008 2009 2010 2011 • Kermas • Acquisition of • New Board formed • Divestment of wood assets becomes largest FerroAlloys • Mining and metals (completed) shareholder in processing focused strategy Ruukki Group business in South • Rest
Slide 5: Ruukki is an Integrated Mine to Metals Ferrochrome Producer
Ruukki is an Integrated Mine to Metals Ferrochrome Producer Mining Processing Products FerroAlloys Stellite Mine, S. Africa Chrome Ore Exports Mogale, S.Africa Plasma Charge Ferrochrome 300,000tpa* ROM 110,000tpa* Silico Manganese (end 2011) FeCr | SiMn Chromite Concentrates Centralised Sales & Mark
Slide 6: Ruukki’s Product Range Supplying Global Customers
Ruukki’s Product Range Supplying Global Customers 6
Slide 7: Developing South African Organic Growth Opportunities
Developing South African Organic Growth Opportunities Phase 1: Short Term Phase 2: Medium Term Increase Chrome Ore Production Expand Processing Capacity • Expand production at Stellite, “base load” • 2 DC Furnaces, 70MW each, total installed − Relatively low capex to substantially production capacit
Slide 8: Group key figures Q1 2011
Group key figures Q1 2011 Revenue and EBITDA increased EUR million Q1 2011 Q1 2010 FY 2010 Revenue 34.8 30.1 123.3 EBITDA 3.5 -0.5 -8.4 EBIT -3.6 -6.9 -75.6 Net Profit After Tax, continuing operations -3.1 -5.3 -65.3 Net Profit After Tax, discontinued operations 43.0 0.8 14.2 Consolidated Profit 39.
Slide 9: FerroAlloys Q1 2011 Performance
FerroAlloys Q1 2011 Performance Production increased due to acquired Stellite mining asset EUR million Q1 2011 Q1 2010 FY 2010 Revenue 14.6 17.8 54.0 Production increased due to acquired Stellite mining EBITDA 0.0 2.7 -1.0 asset Mogale’s large furnaces EBIT -2.6 0.6 -50.2 operating well Revenue & EB
Slide 10: Speciality Alloys Q1 2011 Performance
Speciality Alloys Q1 2011 Performance Production increased by new concentration plant in Turkey EUR million Q1 2011 Q1 2010 FY 2010 Substantial production increase: Revenue 20.2 12.1 69.0 - New concentrate EBITDA 5.0 -0.2 7.8 processing plant at TMS EBIT 0.7 -4.4 -10.0 - Increase in mining of lumpy
Slide 11: One Third Rule: China & India are Driving Force of World Economy
One Third Rule: China & India are Driving Force of World Economy • China & India will continue to consume more & more raw material as their populations grow, develop & urbanise • India's higher birth rate will narrow the gap - UN expects it to overtake China before 2030 • Both countries are experien
Slide 12: Stainless Steel Production Expected to Increase Over Next Years
Stainless Steel Production Expected to Increase Over Next 5 Years World Stainless Steel Production ('000 t) West m tonnes USA Europe Japan China Other World 2000 2.36 7.95 3.83 0.63 4.71 19.48 2010 2.13 7.12 3.48 11.36 6.75 30.84 % change -10% -10% -9% +1700% +43% +58% 2014 2.63 7.87 3.82 16.02 8.25
Slide 13: All Stainless Steel Contains 18% Ferrochrome
All Stainless Steel Contains 18% Ferrochrome Source: CRU Ferrochrome Market Service August 2010 13
Slide 14: South Africa: World’s largest Chrome Resources will Supply Production Growth
South Africa: World’s largest Chrome Resources will Supply Production Growth • 50% global production from SA Other • 75% global resources located in SA India China South Africa Ferrochrome producer cost curve 2010, US c/lb CIS 0 650 1300 1940 2590 3230 3880 4520 5170 5820 6460 Output, ‘000 tonnes So
Slide 15: Ruukki: Designed to Deliver Sustainable Growth
Ruukki: Designed to Deliver Sustainable Growth Vertically Integrated Competitive Advantage: DC 3 Phase Growth Technology From mine to product Increase chrome production Up to 30% cheaper operating costs Ownership of customer Expand processing capacity Offers product flexibility = preferred Full cont
Slide 16: Appendices
Appendices www.ruukkigroup.fi June 2011 16
Slide 17: Group Structure
Group Structure RUUKKI GROUP’S ASSET STRUCTURE Ruukki Group Sales & Marketing Speciality Alloys FerroAlloys RCS Kermas 99% 0% 100% 49% 51% TMS EWW Synergy Africa BEE partners BEE partners Mining Toll processing JV Umnotho weSizwe and Mogale employees Turkey Germany 84.9% 15.1% Stellite Mogale* Minin
Slide 18: Highly Experienced Board
Highly Experienced Board Extensive industry experience and knowledge from some of the world’s leading mining and metals houses, underpinned by strong financial expertise DR. JELENA PHILIP PAUL MARKKU MANOJLOVIC BAUM EVERARD KANKAALA Chairman (2008) INED (2010) INED (2010) NED (2003) Over 35 yrs expe
Slide 19: South African Reserves & Resources
South African Reserves & Resources 19