Slide 1: Q3 2015 Interim Results
Q3 2015 Interim Results Dr Alistair Ruiters CEO 10 November 2015 www.afarak.com
Slide 2: Table of contents and Disclaimer
Table of contents Afarak at a Glance Q3/2015 3 Disclaimer This presentation contains forward-looking statements. Group Financial Performance 4 Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology, Group Sales 5 including the terms “believes”,
Slide 3: Afarak at a Glance Q3 2015
Afarak at a Glance Q3 2015 Key Figures: Q3/15 vs Q3/14 Afarak Group Speciality Alloys FerroAlloys Higherrevenue Higher revenue both from both from Revenue marginally higher Revenue significantly higher due Revenue Speciality Alloys segmentand Speciality Alloys segment and complemented by higher trad
Slide 4: Group Financial Performance
Group Financial Performance FOCUS Revenue EBITDA EBIT ON Q3 Q1-Q3 Q3 Q1-Q3 Q3 Q1-Q3 44.8 EURM 138.5 EURM 1.3 EURM 13.5 EURM -0.7 EURM 8.1 EURM 40.6 EURM (2014) 131.1 EURM (2014) 2.1 EURM (2014) 8.4 EURM (2014) 0.5 EURM (2014) 2.9 EURM (2014) +10.3% +5.7% -0.8 EURM +5.1 EURM -1.2 EURM 5.2 EURM EBITDA
Slide 5: Group Sales
Group Sales Sales (mt) Q3 2015 1,587 Sales (mt) Q1-Q3/2015 8,798 1% 7% 6,287 19,520 5% 6% 2,904 13,771 1% 11% 51,381 Speciality Alloys Mining 16% 21,631 Speciality Alloys Mining Speciality Alloys 6% Speciality Alloys Processing Processing FerroAlloys Mining FerroAlloys Mining FerroAlloys Processing
Slide 6: Segment Production: Speciality Alloys
Segment Production: Speciality Alloys Production (mt) Processing • Decrease in processing was mainly due to lower production 19,813 at EWW, in order to manage the level of stockpiles Q1-Q3/15 31,345 21,427 Q1-Q3/14 34,142 Processing Mining * Q3/15 4,585 Mining 11,663 5,337 Q3/14 • Mining activity at
Slide 7: Segment Performance: Speciality Alloys
Segment Performance: Speciality Alloys Revenue EBITDA EBIT Q3 Q1-Q3 Q3 Q1-Q3 Q3 Q1-Q3 24.5 EURM 74.3 EURM 1.4 EURM 9.3 EURM 0.7 EURM 7.4 EURM 24.3 EURM (2014) 75.2 EURM (2014) 3.0 EURM (2014) 6.7 EURM (2014) 2.4 EURM (2014) 4.9 EURM (2014) +1.0% -1.3% -1.6 EURM +2.6 EURM -1.7 EURM +2.5 EURM EBITDA M
Slide 8: Segment Production: FerroAlloys
Segment Production: FerroAlloys Production (mt) Processing 54,840 • Processing at Mogale Alloys was slightly lower than last Q1-Q3/15 year due to the maintenance shutdown of part of the plant 334,849 during the third quarter of 2015. 49,412 Q1-Q3/14 205,182 Processing Mining* 14,763 Q3/15 115,341 Mi
Slide 9: Segment Performance: FerroAlloys
Segment Performance: FerroAlloys Revenue EBITDA EBIT Q3 Q1-Q3 Q3 Q1-Q3 Q3 Q1-Q3 20.2 EURM 64.0 EURM 0.7 EURM 6.4 EURM -0.5 EURM 2.8 EURM 16.3 EURM (2014) 55.9 EURM (2014) -0.2 EURM (2014) 3.4 EURM (2014) -1.2 EURM (2014) -0.3 EURM (2014) +24.1% +14.7% +0.9 EURM +3.0 EURM +0.7 EURM +3.1 EURM EBITDA M
Slide 10: Segment Performance: FerroAlloys – Joint Venture share of profit
Segment Performance: FerroAlloys – Joint Venture share of profit Revenue EBITDA EBIT Q3 Q1-Q3 Q3 Q1-Q3 Q3 Q1-Q3 2.7 EURM 8.1 EURM 0.4 EURM 1.3 EURM 0.2 EURM 0.5 EURM 1.1 EURM (2014) 5.0 EURM (2014) -0.2 EURM (2014) -0.1 EURM (2014) -0.5 EURM (2014) -0.8 EURM (2014) +141.9% +60.9% +0.6 EURM +1.4 EURM
Slide 11: Investment Projects: Project Update
Investment Projects: Project Update Tavas mine – New concentration plant Production has started during the month of September. Kavak mine – Upgrade of the concentration plant The start up of the plant is scheduled for Q4 2015. As previously communicated, TMS expects that the annual production volume
Slide 12: Safety, Health and Sustainable Development
Safety, Health and Sustainable Development Afarak has set up a Health Safety, Environment and Community Committee (HSEC) with the aim of ensuring that the Group operations address the social, environment, health and safety requirements of all our stakeholders. We comply with all relevant legal o
Slide 13: Our Global Market Review
Our Global Market Review Stainless Steel Ferrochrome Silico Manganese Chrome Ore European stainless Chinese continue to Prices have plummeted Chinese imports of crude production was increase production to lows not seen since Chrome ore units have 5% lower in the first half levels and are now
Slide 14: Our Outlook for 2015
Our Outlook for 2015 The global growth in stainless steel production is expected to lead an increase in demand for chrome products in 2015. However, as occurred in 2014 where the chrome industry has not been able to increase chrome product prices it is unclear whether this upswing in prices will o
Slide 15: Our Key Focus Areas
Our Key Focus Areas Continue our policy of no compromise on price vs volume Deliver on our commitments on capex, costs and time frames Maintain a Zero Harm safety culture Continue our focus on niche products Invest in technology improvements and plant efficiencies Create value for all in