Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — FY2025 Earnings Presentation
39 slides from Rhi Magnesita Nv's earnings presentation, Mar 2, 2026
Slide 1: Full Year Results 2025
Full Year Results 2025 Safety, resilience and progress 2 March 2026 2025 Full Year Results | March 2026 1
Slide 2: Agenda
Agenda 1 FY Overview 2 Strategic Update 3 Financial Review 4 Summary and Investment Case 5 Q&A 6 Appendix 2025 Full Year Results | March 2026 2
Slide 3: Health & Safety
Health & Safety Driving a step-change in Safety across the Group Long-term evolution of injury performance Group-wide shift towards a deeply embedded safety mindset though our Safety Culture Transformation Program ongoing. TRIF RESET: The Safety Culture transformation added c.200 LTIF Safety Culture
Slide 4: Financial Highlights FY 2025
Financial Highlights FY 2025 WSA steel production Number of Industrial Revenue Adjusted EBITA Adjusted EBITA margin projects -2% -40% €3.4bn €373m 11.1% -220 bps To 2024 3% 8% 60 bps Adjusted operating Dividend Working Capital Net debt to Pro forma Adjusted EPS cash flow intensity 1 Adjusted EBITDA2
Slide 5: 2025 was a year of two halves
2025 was a year of two halves Strong H2 performance, EBITA 65% H1 Adj. EBITA 1 higher than H1, and 7% higher than in H2 Million € 141 2024 Market conditions did not 2 meaningfully improve in H2 versus 2018 2019 2020 2021 2022 2023 2024 2025 H1 and are expected to remain challenging in the Adj. EBITA
Slide 6: Steel business overview
Steel business overview Chinese steel exports puts local steel production and hence refractory demand under pressure Group revenue from steel fell alongside global steel production ⁃ Chinese steel exports displaced regional steel production in markets Revenue 1,2 where RHI Magnesita hold a meaningfu
Slide 7: Industrial business overview
Industrial business overview Historically low industrials activity in 2025 depressed earnings Higher-margin Industrials project business (e.g., Non- ferrous metals and Glass) was unusually soft Revenue m 1 ⁃ Glass activity reached historic lows. Solar glass expansion in China completed. ⁃ Copper pro
Slide 8: Strategic Update
Strategic Update Stefan Borgas, CEO
Slide 9: Global industry dynamics are now shaped less by demand growth
Global industry dynamics are now shaped less by demand growth and more by how and where excess capacity is deployed Chinese exports of industrial goods and metals displace local production Future trade barrier: globally. tighter steel (TQR) Key trade barrier: steel, metals, some refractories & raw m
Slide 10: North America drives earnings
North America drives earnings Resco and disciplined pricing underpinned growth in North America Favourable market structure: Revenue (€m) +70% ⁃ Strong, long-standing position in the steel sector, supported 170 863 by a historically stable market share. 699 739 709 37 ⁃ Significant growth runway in
Slide 11: Further development of RHIM's Business Model
Further development of RHIM’s Business Model Expansion of 4PRO, services, circular business expansion, backward integration strengthening Use of secondary raw material First set of 2019 sustainability targets achieved in 2025 % of total raw material used Continued execution of our decarbonisation pl
Slide 12: Financial Review
Financial Review Ian Botha, CFO 2025 Full Year Results | March 2026 12
Slide 13: 2025 EBITA bridge
2025 EBITA bridge EBITA under pressure from lower demand, but largely offset by M&A contributions and management actions €m +€30m of pricing 407 +€10m of cost reduction +€30m of SG&A measures 13 33 Volume 373 41 Price/mix 70 -74 18 Volume 23 Price/mix 25 -41 2024 EBITA FX headwind Lower industrial d
Slide 14: Strong second half performance, driven by self-help measures
Strong second half performance, driven by execution of management-led self-help measures Adj. EBITA €m Management-led self-help measures delivered an 65% +65% Adj. EBITA of €232 million in H2 2025, up 7% on H2 (+91) +91 4 2024 following a weak H1. 10 19 232 H1 guidance for earnings improvements in H
Slide 15: Margins defended despite low BWI contribution
Margins defended despite low BWI contribution Stable margins in volatile end-use markets Margins resilient despite a challenging market backdrop: RHI Adj. EBITA ⁃ Self-help actions and a diversified end-use RHI Magnesita Backward integration margin industry base underpin the resilience of the standa
Slide 16: Working capital
Working capital ~€90m working capital release driven by improved inventory management and AR collection Roll-out of a new supply chain technology Working capital balances solution to improve inventory management €m 23,3% 25,4% 24,4% 23,4% 21,7% Regionalisation initiatives to reduce inventory intensi
Slide 17: Leverage below 2025 target, strong liquidity maintained
Leverage below 2025 target, strong liquidity maintained Strong cash conversion in 2025 resulted in leverage below guidance and an attractive dividend Adjusted operating cash flow and Cash Conversion Net debt increased to €1.5bn (FY24: €1.25bn), driven €m1 102% 103% 105% primarily by the Resco acquis
Slide 18: Management actions drive earnings growth in 2026
Management actions drive earnings growth in 2026 Volatile currencies add additional uncertainty outside of our control EBITA €m Velocity of self-help continues into 2026: +17% +17% ⁃ New measures effective in 2026 are ~435 already being implemented 15 ⁃ Momentum expected to continue into 35 2027 15
Slide 19: Summary
» RHI MAGNESITA Summary Stefan Borgas, CEO
Slide 20: Summary
Summary Management actions driving performance amid persistently weak end markets Self-help cost saving initiatives were Guidance 1 successfully delivered, achieving the 2025 profit 2026 2025 actual summary target. c.€435m on constant currency basis with more typical H1:H2 split Adjusted EBITA €373m
Slide 21: Delivering on our investment case
Delivering on our investment case Market consolidation has enhanced RHIM’s global market leadership, margin resilience and recovery potential 1. Refractories are essential for our 3. Most refractory users are large Global leader modern world companies in a highly 2. Mega trends are all refractory 4.
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: Profit and loss summary
Profit and loss summary Lower gross profit results in erosion of earnings €m 2025 2024 Change Revenue 3,366 3,487 -3% Reported revenue and Gross profit decreased by 3% and 10% Gross profit 772 859 -10% due to weak market environment impacting pricing, and product mix Gross margin (%) 22.9% 24.6% -17
Slide 25: Outlook and guidance summary
Outlook and guidance summary Business improvement driven by management actions in a poor market backdrop 1. Challenging near-term market environment P&L 2026 guidance 2025 actual ⁃ Steel end-markets remain at cyclical lows globally ⁃ No near-term demand recovery visible in the order book Adjusted EB
Slide 26: Delivering FTSE100 cash flow at attractive valuation
Delivering FTSE100 cash flow at attractive valuation (i) EBITDA and free cash flow comparable to FTSE 100 peers; (ii) highest free cash flow yield in the sector; (iii) compelling M&A growth story; (iv) high operational gearing to market recovery EBITDA 20251 Free cash flow 20251 Free cash flow yield
Slide 27: 2025 revenue bridge
2025 revenue bridge Weaker sales volumes and material FX headwinds, partially offset by M&A €m 3,487 97 3,390 3,366 182 195 37 2024 Revenue FX effect 2024 Revenue at Sales volumes Price / mix M&A 2025 Revenue constant currency Resco and BPI 2025 Full Year Results | March 2026 27
Slide 28: Cost detail
Cost detail Lower input costs for refractory producers, but freight and some raw materials increasing Cost of goods sold Raw materials Energy Absolute COGS 2% higher YoY on a constant DBM prices softening since Q1 22 Gas prices have normalized; oil prices remain flat currency basis due to M&A, -4% e
Slide 29: Our performance in context
Our performance in context RHIM has navigated the downturn in steel production without margin decline, whilst executing significant M&A at the bottom of the refractory market EBITDA (m€) Global China China raw COVID-19 Energy crisis/ financial downturn material manufacturing EBITDA margin crisis cri
Slide 30: 2025 EBITA adjusted items
2025 EBITA adjusted items €m Other Operating Expenses €98 million adjusted items mainly spending to EBITA improve operating efficiency and future profitability: ⁃ €44 million in expenses for the ERP system Digital architecture 52 Digital architecture 44 Impairment Brazil 29 Network optimization 27 R
Slide 31: Capital allocation framework
Capital allocation framework After maintenance CAPEX and dividend, M&A, organic investments and buybacks compete for capital Leverage target 1.0– 2.0x and up to c.2.5x for compelling M&A opportunities M&A pipeline presents opportunity to continue consolidation of the refractory industry Leverage Res
Slide 32: M&A growth opportunity
M&A growth opportunity Strengthening a global leadership position in the refractory industry USA Europe India China Areas of focus for P-D Refractories Ashwath Techn. Jinan New Emei future M&A Refrattari Trezzi Resco Group Dalmia GSB East Asia Chongqing SORMAS MIRECO Hi-Tech Middle East BPi JV S
Slide 33: Capital expenditure
Capital expenditure Capex below depreciation. Excludes digital upgrade investment as required by IFRS 252 2025 capex of €111 million, (below depreciation of €132 million): ⁃ €68 million maintenance capex 180 19 ⁃ €43 million project capex 156 157 177 156 13 145 12 130 123 46 74 111 2026 capex of c.
Slide 34: Local production strategy
Local production strategy Resco acquisition seeks to reduce imports by growing NAM local manufacturing Resco acquisition will increase local US production in the US to c.80% in the Onshoring 8% coming years Europe 17% Onshoring of supply chain is a &Türkiye 23% 18% response to clear customer feedbac
Slide 35: Cash flow reconciliation
Cash flow reconciliation €m 2025 2024 Adjusted EBITDA 504 543 Share based payments - gross non-cash 4 9 Working capital changes 84 105 Changes in other assets and liabilities -89 -93 Investments in Property, Plant & Equipment and Intangible assets -111 -145 Adjusted operating cash flow 391 419 Incom
Slide 36: Net financial expenses
Net financial expenses €m 2025 2024 Net financial expenses -46 -39 Interest income 15 22 Interest expenses -61 -61 FX effects -16 11 Balance sheet translation -34 29 Derivatives 18 -18 Other net financial expenses -33 -14 Present value adjustment on provisions (inc. Oberhausen onerous contract) -6 -
Slide 37: Impact of foreign currency movement
Impact of foreign currency movement EBITA sensitivity in 2025, indicative for 2026 2025 exchange rates Appreciation vs EUR Increase, decrease in - 2026 FY 2025 FY 2024 Average Average Unit in EBITA (€m) EUR: Opening Rate Rate USD -1 cent 4.22 USD 1.20 1.12 1.09 CNY -0.01 yuan -0.11 CNY 8.31 8.06 7.7
Slide 38: Return on invested capital
Return on invested capital Group ROIC1 2025 2024 Average Invested Capital (€m) 2.791 2,859 NOPAT (€m) 266 299 ROIC (%) 9.5% 10.4% Vertical integration ROIC 2025 2024 Average Invested Capital (€m) 422 458 NOPAT (€m) 28 16 ROIC (%) 6.3% 3.6% Refractory ROIC 2025 2024 Average Invested Capital (€m) 2.35
Slide 39: Important notice
Important notice Financial information contained herein, as well as other operational information, were not audited by independent auditors and may include forward- looking statements and reflects the current views and perspectives of the management on the evolution of macro-economic environment, co