Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — Investor Presentation (March 2022)
27 slides from Rhi Magnesita Nv's investor presentation, March 2022
Slide 1: The driving force of the refractory industry
The driving force of the refractory industry Company presentation
Slide 2: Disclaimer
Disclaimer The consolidated financial statements presented solicitation of an offer, to subscribe for or purchase here are consistent with the criteria of international any securities, and neither any part of this accounting standards – IFRS issued by the presentation nor any information or statemen
Slide 3: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Strategy
Slide 4: Refractories are essential for our modern world
Refractory industry overview Refractories are essential for our modern world Concrete Copper Steel Glass Aluminium 1,500°C 1,350°C 1,760° 1,650° 1,250°C C C 1 tonne of 1 tonne of 1 tonne of 1 tonne of 1 tonne of STEEL CEMENT GLASS ALUMINIUM COPPER demands ~10-15 kg demands ~1 kg demands ~4 kg demand
Slide 5: Refractories are critical to all high-temperature industrial processes
Refractory industry overview Refractories are critical to all high-temperature industrial processes ⬢ Refractories are critical consumable Main end markets or investment goods for high- €20 billion worldwide industry temperature manufacturing processes ◼ Steel 7% 8% ⬢ Fireproof materials consumed ◼
Slide 6: Refractories are continuously consumed during finished goods production
Refractory industry overview Refractories are continuously consumed during finished goods production Key industries Applications Replacement Costs Refractory characteristics Basic oxygen-, 20 minutes to ~3.0% Consumable product Steel electric arc furnace 2 months Systems and solutions for complete c
Slide 7: A complex range of tailored refractory products
Refractory industry overview A complex range of tailored refractory products Bricks Example of refractory application for steel ladle 2 3 1 Permanent lining 2 Non-basic, 3 Basic, ex. 1 ex. Alumina Mag-Carbon 4 Monolothics and pre casts 5 6 8 7 9 4 Mixes 5 Pre Castables Functional products Digital So
Slide 8: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Strategy
Slide 9: We are the world leader in refractories and a truly global company
RHI Magnesita overview We are the world leader in refractories and a truly global company €2.6bn 12,000 €63m 2021 revenue Employees Annual investment in R&D and Technical Marketing 28 125+ Main production sites Countries shipped to worldwide
Slide 10: Full Year 2021 – Financial highlights
RHI Magnesita overview Full Year 2021 – Financial highlights Inventory levels and net debt increased to ensure customer deliveries Revenue1 Adjusted EBITA1 Adjusted EBITA margin Adjusted Earnings per share €2.6bn €280m 11.0% €4.52ps 16% 9% (70)bps 38% Cash returned to shareholders Capex Working Capi
Slide 11: The refractory world of RHI Magnesita
RHI Magnesita overview The refractory world of RHI Magnesita Value creation from the raw material to the refractory product
Slide 12: Serving a blue chip client base
RHI Magnesita overview Serving a blue chip client base STEEL CEMENT GLASS METALS Serving 1,070 Serving 1,350 Serving 800 Serving 650 of 1,300 plants1 of 1,500 plants1 of 900 plants1 of 2,000 plants1 Note: 1) Approximate number of plants worldwide, excluding China, based on Company estimates
Slide 13: Experienced management team with solid financial and strategic background
RHI Magnesita overview Experienced management team with solid financial and strategic background Executive Management Team Joined Background Stefan Borgas 2016 ⬢ Former CEO of Israel Chemicals Ltd and Lonza Group CEO ⬢ Several management positions at BASF Ian Botha 2019 ⬢ Former Finance Director of
Slide 14: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Strategy
Slide 15: Our strategic framework
Strategy Our strategic framework Competitiveness Markets Execute cost reductions Drive market leadership Cost-competitive global producer of RHI Magnesita has a worldwide technologically advanced refractory presence with strong local organisations materials with safe production network and and solid
Slide 16: Our strategic difference
Strategy Our strategic difference Largest Full suite of global footprint products & services Benefiting from scale and Delivering more than refractory materials proximity to customers to address customers’ needs Backward Low-cost operator integration Underpinning profitable growth Technical and fina
Slide 17: Full suite of products complemented by knowledge and services
Strategy Full suite of products complemented by knowledge and services Example: Steel customer Iron Ore Technology Flow Solutions Coal Control Natural Electric Arc Injection Gas Furnace Steel refining facility Direct Reduction Coal Continuous Scrap Casting Blast Furnace Basic Oxygen Furnace Coke Ful
Slide 18: Offering full solutions to drive value at customers
Strategy Offering full solutions to drive value at customers >20% of revenue comes from cost per performance contracts Client cost structure Client benefit Current solutions portfolio Reduced downtime Lower refractory consumption Lower energy and other raw materials consumption Yield Improveme
Slide 19: Expanding our solutions offering
Strategy Expanding our solutions offering Innovation to further enhance business model Current solutions offering Supply chain Refractory products Technical services Future innovation services Functional refractory On-site consulting & Warehousing Recycling of waste products supervision “Track & Tra
Slide 20: R&D – From raw materials to refractories
Strategy R&D – From raw materials to refractories +540 technical experts across 90 countries to consult, develop and deliver innovative solutions directly to our customers 2 3 +540 R&D Hubs R&D Centers Experts1 (Austria and Brazil) (USA, China, India) +1,550 2.5% 16% Active patents R&D and Technical
Slide 21: High quality sites globally
Strategy High quality sites globally Supporting unique solutions to the market Raw material Production sites Annual production Standard DBM1 Brumado (Brazil) ~720 k tonnes 90%-97% Eskisehir (Turkey) Hochfilzen (Austria) Breitenau (Austria) High purity DBM1 Brumado (Brazil) ~240 k tonnes 97%+ 1.5 mil
Slide 22: Refractory margin
Strategy Refractory margin Strategic initiatives will drive further growth in refractory and backward integration margins RHI standalone RHI Magnesita 2020 2021 Refractory EBITA (€m) 205 199 13.9% 14.0% Vertical 55 81 integrated EBITA (€m) 11.5% 9.7% 11.0% 5.5% 5.0% 2.4% 3.2% Increasing market price
Slide 23: Resilient business model with a clear strategy
Strategy Resilient business model with a clear strategy Resilient margins with further potential in Stable refractory margin at 7.8% in 2021 1 refractories Adjusted EBITA margin contribution from backward integration in 2021 at 3.2% Strong cash conversion and Strong cash flow generation and si
Slide 24: Our 2025 Sustainability targets
Strategy Our 2025 Sustainability targets Diversity CO2 emissions Increase women on our Board and in senior Reduce by 15% per tonne1 leadership to 33% Energy Safety Reduce by 5% per tonne Strong safety culture with goal of zero accidents Recycling NOx and SOx emissions Increase use of secondary raw m
Slide 25: Sustainability leadership: €50 million R&D investment in CO2 reduction technologies
Strategy Sustainability leadership: €50 million R&D investment in CO2 reduction technologies Creating the path to de-carbonisation Capture of geogenic CO2 emissions (>50% of our emissions) We aim to have the technology solution Utilisation of captured CO2 through external by 2025 which will create t
Slide 26: Culture
Strategy Culture Critical to future growth
Slide 27: Get in touch
Get in touch RHI Magnesita Kranichberggasse 6 1120 Vienna Austria Phone: +43 50213 6200 E-mail: corporate.communications@rhimagnesita.com rhimagnesita.com Important notice: These materials do not constitute or form part, or all, of any offer of invitation to sell or issue, or any solicitation of any