Slide 1: Interim Report First 9 Months 2018/19
Interim Report First 9 Months 2018/19 Frankfurt August 8, 2019
Slide 2: Executive summary of the first 9 months 2018/19
Executive summary of the first 9 months 2018/19 » Operating EBT of € 125 million (PY: € 264 million) and ROCE of 7.1 % (PY: 14.6 %) in the first 9 months 2018/19 » Operating performance unsatisfactory, even beyond planned shutdowns » Firm decision to stop our FCM project; project’s accrued investmen
Slide 3: Operating EBT strained by extraordinary factors
Operating EBT strained by extraordinary factors 9M 9M (operating IFRS) 2018/19 2017/18 Change Revenues €m 8,681 8,747 -1 % Gross profit €m 835 929 -10 % EBITDA €m 234 367 -36 % EBIT €m 132 269 -51 % EBT €m 125 264 -53 % Consolidated net income €m 95 201 -53 % August 2019 3
Slide 4: Acquisition of Metallo Group: A value accretive transaction
Acquisition of Metallo Group: A value accretive transaction Structure » Acquisition of 100 % of the shares of Metallo Group and related entities paid in cash Value » Enterprise value of € 380m on a cash-and-debt-free basis consideration » Synergies of circa € 10-15m, of which largest part to be real
Slide 5: The acquisition will strengthen Aurubis' multi-metal portfolio
The acquisition will strengthen Aurubis’ multi-metal portfolio of key metals especially, like copper, nickel, tin, zinc, and lead Aurubis and Metallo increase in metal production compared to current output Copper Gold Silver Lead Nickel PGMs Tin Minor Metals Platinum Selenium Osmium Tellurium Iridiu
Slide 6: Metallo complements and expands the Aurubis flowsheet in the recycling business
Metallo complements and expands the Aurubis flowsheet in the recycling business Slag Copper anodes Olen Intermediates Intermediates Anode slimes Anode slimes and intermediates Anode slimes Lünen Hamburg August 2019 6
Slide 7: Preparations for major shutdown in Hamburg are underway
Preparations for major shutdown in Hamburg are underway Financial impact: » Capex: approx. € 45 million » EBT effect: approx. € 30 million » Concentrate throughput effect: approx. 125,000 t Key data for the measure » Description: Overhaul of waste heat boiler to comply with legal deadlines, replacem
Slide 8: Efficiency improvement program: On schedule
Efficiency improvement program: On schedule Target: Project success > € 200 million (base year: 2014/15) (in € million) + 80 > 200 » Measures for 2018/19 have been identified and are being implemented » All of the company’s divisions are contributing to + 60 project success, including both productio
Slide 9: Sustainability at Aurubis is part of the corporate strategy
Sustainability at Aurubis is part of the corporate strategy A common understanding and valid management systems in all areas of activity contribute to long-term success August 2019 9
Slide 10: Market environment
Market environment Trend in significant market prices and refining charges 350% 100 % = Sept. 2016 European refining charges 300% for copper scrap Sulfuric acid price (spot CFR Brazil) 250% Exchange rate (US$/€) 200% TC/RCs for copper concentrates (contract) Copper premium 150% 100% 50% Mrz 17 Mrz 1
Slide 11: Key figures remain very robust and provide room for future growth
Key figures remain very robust and provide room for future growth 9M 9M Target 2018/19 2017/18 ROCE* % 7.1 14.6 15.0 Equity ratio (equity / total liabilities) % 52,7 51.2 > 40.0 Debt coverage** 0.9 0.1 < 3.0 9M 9M Additional KPIs 2018/19 2017/18 Capital expenditure (including finance €m 123 116 leas
Slide 12: Segment MRP: Impacted by lower throughput and lower refining charges for copper scrap
Segment MRP: Impacted by lower throughput and lower refining charges for copper scrap Operating results for Segment Metal Refining & Processing (MRP) (first 9 months FY 2018/19) 9M 9M Segment MRP » Substantially lower concentrate throughput with lower TC/RCs 2018/19 2017/18 » Scheduled shutdown in P
Slide 13: Segment FRP: Operating EBT strained by lower demand
Segment FRP: Operating EBT strained by lower demand Operating results for Segment Flat Rolled Products (FRP) (first 9 months 2018/19) 9M 9M Segment FRP 2018/19 2017/18 EBIT (in €m) 3 7 » Operating EBT down significantly because of lower sales volumes and less favorable supply conditions compared to
Slide 14: Aurubis confirms forecast for 2018/19
Aurubis confirms forecast for 2018/19 » Reuters 2019 copper price poll from July: US$ 6,173/t » Copper concentrates: good supply with satisfactory TC/RCs expected » Aurubis won’t be active on the concentrate spot market for the rest of the fiscal year » Sulfuric acid markets signal lower demand with
Slide 15: Financial calendar
Financial calendar » Annual Report 2018/19 12/11/2019 » Q1 2019/20 2/13/2020 » AGM 2/27/2020 » Q2 2019/20 5/19/2020 » Q3 2019/20 8/11/2020 » Q4 2019/20 12/9/2020 August 2019 15
Slide 16: Thank you for your attention
AAurubis Metals for Progress VISION VISION 2025 Ps Passion for metallurgy for progress Ig with you Thank you for your attention
Slide 17: Your IR Contacts
Your IR Contacts Angela Seidler Elke Brinkmann Christoph Tesch Vice President Senior Manager Senior Manager Investor Relations & Investor Relations Investor Relations Corporate Communications +49 40 7883-2379 +49 40 7883-2378 +49 40 7883-3178 e.brinkmann@aurubis.com c.tesch@aurubis.com a.seidler@aur
Slide 18: Disclaimer
Disclaimer Forward-looking statements This document contains forward-looking statements that involve risks and uncertainties, including statements about Aurubis’ plans, objectives, expectations, and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and
Slide 19: Energy costs in the Aurubis Group
Energy costs in the Aurubis Group Breakdown of energy costs in the Aurubis Group (first 9 months of FY 2018/19) Other energy Oxygen 2% 18% Liquid fuels 6% » Total electricity consumption in the Aurubis Gas Electricity Group: approx. 1.9 TWh (2017) 15% 59% » CO2 emissions of 1.6 million t (2017) » 0.
Slide 20: Prices for CO2 certificates increased significantly
Prices for CO2 certificates increased significantly Prices for CO2 certificates (in €) 35 30 25 20 15 10 5 0 Jan. 17 Jan. 18 Jan. 19 Okt. 16 Apr. 17 Okt. 17 Apr. 18 Okt. 18 Apr. 19 Jul. 17 Jul. 18 Jul. 19 August 2019 Source: Reuters, daily CFI2Zc1 20
Slide 21: Additional investments at the Pirdop site in the course of a legally mandated planned shutdown
Additional investments at the Pirdop site in the course of a legally mandated planned shutdown in May/June 2019 Financial impact: » Capex: approx. € 19 million (FY 17/18: approx. € 10 million, FY 18/19: approx. € 9 million) » EBT effect: approx. € 15 million » Concentrate throughput effect: approx.