Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (September 2023)
28 slides from Om's investor presentation, Sep 14, 2023
Slide 1: OM Holdings Limited
1 OM HOLDINGS LIMITED Australia • China • Japan • Malaysia • Singapore • South Africa September 2023 • Investor Presentation • ASX:OMH | Bursa:OMH (5298)
Slide 2: Disclaimer
2 DISCLAIMER This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all information that an investor should consider w
Slide 3: Company Snapshot
3 COMPANY SNAPSHOT Manganese and silicon smelting company, Market Capitalization US$ 255.1 million(1) operating across the value chain Total Debt (1H2023) US$ 290.2 million Key Dual listed on ASX (since 1998) and Bursa Metrics Cash & Cash Equivalent US$ 51.7 million (since 2021) Malaysia, unique exp
Slide 4: Our Products
4 OUR PRODUCTS Critical alloying element to steel with a diversification into electronic, chemical and solar industries Manganese Ore Manganese Alloys Silicon Alloys Silicon Metal Manganese is the 4th most Main alloying element - Manganese Main alloying element – Silicon 99% Pure Silicon consumed me
Slide 5: Smelting: Raw Materials to Critical Additives
5 SMELTING: RAW MATERIALS TO CRITICAL ADDITIVES Manganese Ore - Mn High Purity Quartz - Si Products Manganese Alloys Ferrosilicon Metallic Silicon Under Development Customers Steel Mills Foundries Chemicals / Solar / Electronics Some of our End Users: China Steel Corporation (Taiwan) JSW (India) Erd
Slide 6: Business Milestones
6 BUSINESS MILESTONES Focusing on organic growth, tapping on the full potential of Sarawak smelter 1994: 2021-2022 • Founded in Hong Kong 2017-2018: • Secondary listing on Bursa Malaysia • Achieved cost competitive • Completed acquisition of remaining 25% production for 16 furnaces, run on interest
Slide 7: Corporate Structure
7 CORPORATE STRUCTURE Largest Shareholders (as at 6th October 2022) • Huang Gang (14.03%) • Marc Chan, Amplewood Resources (13.57%) • Low Ngee Tong (9.32%) • Heng Siow Kwee (8.95%) 100 100 100 OM (Manganese) Ltd OM Holdings (B.V.I) Ltd OM (Mauritius) Corp Australia British Virgin Islands Mauritius 1
Slide 8: Material Subsidiaries and Associates
8 MATERIAL SUBSIDIARIES AND ASSOCIATES Total Group Assets Total Group Revenue as at 31 Dec 2022 FY2022 US$886m US$856.5m Others, $56 , 6% Tshipi (South OMSA Africa), $81 , (Malaysia), 9% $269 , 32% OMSA OMS (Malaysia), (Singapore), $644 , 73% OMM $540 , 63% (Australia), OMQ $48 , 5% (China), $20 , 2
Slide 9: Industry Overview
9 INDUSTRY OVERVIEW
Slide 10: Manganese Ore and Alloy Market Review
10 MANGANESE ORE AND ALLOY MARKET REVIEW Mn alloy prices retraced to COVID levels, despite power price increase in key production regions Strong monthly contemporaneous Covid & Russian-Ukraine War: Strong margins with post COVID super- correlation between Mn Ore and Mn cycle. Price shock post invasi
Slide 11: Ferrosilicon Market Review
11 FERROSILICON MARKET REVIEW Overall market weakness with prices and Chinese output both declining steadily Relatively fixed input costs, Covid & Russian-Ukraine War: China coal & power crisis in Q3 2021 led to price earnings correlate well with surge to historical highs. Post-COVID market supporte
Slide 12: Credit Highlights
12 CREDIT HIGHLIGHTS
Slide 13: Credit Highlights
13 CREDIT HIGHLIGHTS The Largest & Lowest Cost Quartile Ferroalloy Smelter in the Region 1 2 3 Vertically Integrated Strategically Located Business Well-Invested Asset Base with Production with Leading Cost Position Profile of Visible Growth Manganese and silicon smelting Close to raw materials and
Slide 14: Key Operations
14 KEY OPERATIONS Sarawak - Malaysia (100%) Smelting & Mn alloy: 333-400ktpa, Ferrosilicon: 120-126ktpa Sinter ore: ~250ktpa Sintering Silicon Metal: 21-24.5ktpa KEY OPERATIONS ALL VERTICALLY INTEGRATED Australia (100%) Singapore/China (100%) Exploration + Tailings Plant Global sales and procurement
Slide 15: Leading Cost Position
15 …WITH LEADING COST POSITION FeSi Production (CIF Japan) Cash Cost Comparison 2022 1st quartile 2nd quartile 3rd quartile 4th quartile China export (legal) OMH Group Kazakhstan Norway Iceland Russia Brazil 0 100 200 300 400 FeSi supply to Japan, 2022 (Mt) • Sustainable producer, first-quartile of
Slide 16: Well-Invested Asset Base
16 WELL-INVESTED ASSET BASE… Cost competitive resource asset, leveraging on management know-how Raw Materials Power Smelting • Ready access to raw material • 350 MW hydroelectric power • Malaysia becoming the world’s sources for quartz and reductants supply from Sarawak Energy new ferroalloy product
Slide 17: Stable Financial Profile with Conservative Gearing
17 STABLE FINANCIAL PROFILE WITH CONSERVATIVE GEARING Continue to focus on paying down debt Total Debt Gearing Ratio (2) • Repaid US$18.6 million comprising Sarawak $400 362 2 project finance loan and trade facilities 332 320 297 290 US$ million(1) $300 255 1.14 • Gearing ratio increased due to draw
Slide 18: Pioneer in the Sustainable Performance
18 PIONEER IN THE SUSTAINABLE PERFORMANCE Clear focus with major targets set for 2023 and beyond Environmental Social Governance • Achieve ISO 14001 in FY2023 • Commit to zero workplace fatality • Extend current Supplier Performance Evaluations by 90% • Enhance Air Pollution Control • Achieve ISO 45
Slide 19: Excellent Management Personnel
19 EXCELLENT MANAGEMENT PERSONNEL Strong track record of delivering growth and performance • Founder, managing director and consultant of Tan Peng Chin LLC • Mr Low is a qualified Mechanical Engineer, having graduated until he retired from the firm on 31 December 2015 from the National University of
Slide 20: Financial Highlights
20 FINANCIAL HIGHLIGHTS
Slide 21: Key Financial Outcomes
21 KEY FINANCIAL OUTCOMES LTM June 2023 As at 30 June 2023 01 Steadily improving and stabilizing end market especially with increased demand Revenue Total Debt for low-carbon footprint alloys US$709.6m US$290.2m 02 Robust margin profile despite weaker end market performance 03 Continual de-leveragin
Slide 22: Overview of Current Capital Structure
22 OVERVIEW OF CURRENT CAPITAL STRUCTURE Company continues to grow with low leverage Debt to Equity Net Debt To Equity 0.71x 0.56x Total Trade Utilised, Facilities Unutilised, Debt Equity Mix $67.2 US$95.0m $27.8 Equity Debt 58% 42% Non-Current, $163.2 , 73% Total Loans Private Bonds US$223.0m 3rd P
Slide 23: Recorded US$49.8M EBITDA in 1H 2023
23 RECORDED US$49.8M EBITDA IN 1H 2023 Revenue and GP Margin $1,500 27.7% 30% 1H 2023 Revenue and EBITDA 26.4% 24.2% 23.4% 20.6% 21.4% 25% • Significantly lower average selling prices in Revenue US$ million (1) GP Margin $1,000 1126 14.9% 20% 1H 2023 vs 1H 2022. 12.3% 15% 715 780 857 710 • Supressed
Slide 24: Key Takeaways
24 KEY TAKEAWAYS OM, now a robust story STRONG MARGINS STABLE OUTPUT + GROWTH Emissions Reduction Lowest Cost Quartile Largest Producer in the Ferroalloy Smelter in the Region, with Growth and Improved energy efficiency Region(1) Diversification Plans from power generated using waste heat recovery s
Slide 25: Appendix
25 APPENDIX
Slide 26: 1H23 Key Updates and FY23 Production Guidance
26 1H23 KEY UPDATES AND FY23 PRODUCTION GUIDANCE Temporary FeSi production at silicon metal furnaces to increase productivity Silicon metal anticipated to Repaid US$18.6m to resume production in early 2024 Project Finance Lenders Full year production guidance revised Exploration and Mining (Mn Ore)
Slide 27: ESG Risk Rating
27 ESG RISK RATING Almost first quartile ESG rating for sub-industry group RENEWABLE ENERGY REPURPOSE 80%+ OF ENHANCE AIR POLLUTION FROM HYDROPOWER SCHEDULED WASTE BY CONTROL SYSTEM PLANT FY2030 PERFORMANCE ESG Risk Rating Distribution ESG Risk Rating Ranking 67% OMH: 37.4 61% UNIVERSE RANK PERCENTI
Slide 28: OM Holdings Limited
28 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA