Aurubis Ag · XETR:NDA
Aurubis — FY2021/22 Earnings Presentation
36 slides from Aurubis's earnings presentation, Dec 21, 2022
Slide 1: Annual Report Fiscal Year 2021/22 Conference Call
Annual Report Fiscal Year 2021/22 Conference Call on December 21st, 2022
Slide 2: Executive summary of fiscal year 2021/22
Executive summary of fiscal year 2021/22 Aurubis closed fiscal year 2021/22 with the best result in company history, Operating EBT of as such, the highest dividend will be proposed. € 532 million ROCE (PY: € 381 million)1 Generally, very positive development of sulfuric acid market and good 19.0 % o
Slide 3: Increased concentrate throughput and strong product demand
Increased concentrate throughput and strong product demand Change vs. Change vs. FY 2021/22 prior year FY 2021/22 prior year Concentrate processing1 2,429,000 t +8 % Gold 47 t -8 % Copper scrap/ 540,000 t -1 % Silver 911 t -4 % blister copper input2 Other recycling materials2 524,000 t -3 % Lead 44,
Slide 4: Market conditions 2021/22: Strong sulfuric acid and metals markets
Market conditions 2021/22: Strong sulfuric acid and metals markets Trend in significant market prices and refining charges 100 % = Sept. 2018 300% Sulfuric acid price 250% (spot CFR Brazil) Copper price (settlement) 200% Exchange rate (US$/€) 150% European refining charges for copper scrap no. 2 100
Slide 5: Aurubis achieved best annual result in company history in challenging environment
Aurubis achieved best annual result in company history in challenging environment 12M 12M Change vs. (operating IFRS) 2021/22 2020/211 prior year Revenues €m 18,521 16,300 14 % Gross profit €m 1,647 1,458 13 % EBITDA €m 753 593 27 % EBIT €m 533 394 35 % EBT €m 532 381 40 % Consolidated net income €m
Slide 6: Gross margin for the Group in FY 2021/22
Gross margin for the Group in FY 2021/22 Breakdown of income components in the Aurubis Group 2021/22 FY (prior-year figures) 28 % (34 %) Treatment charges for concentrate + 38 % (36 %) recycling input Metal gains ~ € 2,240 million* (~ € 1,916 million*) 34 % (30 %) Premiums + products * Gross margin
Slide 7: Energy significant driver of Group costs increase
Energy significant driver of Group costs increase Overview of cost/expense positions 2021/22 FY (prior-year figures) 11 % (12 %) Depreciation and amortization 30 % (34 %) Personnel costs 12 % (11 %) Consumables ~ € 1,915 million* 12 % (11 %) (~ € 1,638 million*) External services 17 % (19 %) 18 % (1
Slide 8: Significant increase in energy prices
Significant increase in energy prices Energy consumption / CO2 scopes Aurubis Group Breakdown of energy costs 2021/22 Electricity incl. oxygen consumption in the (FY prior-year figures) Aurubis Group: approx. 1.94 TWh (CY 2021) 74 % (79 %) Electricity incl. oxygen 22 % (15 %) CO2 emissions of 1.60 m
Slide 9: Financial stability provides room for future growth
Financial stability provides room for future growth 12M 12M 2021/22 2020/213 Target ROCE1 % 19.0 16.6 15.0 Equity ratio % 54.0 48.9 > 40.0 (equity / total assets) Debt coverage2 -0.5 -0.6 < 3.0 12M 12M Additional KPIs 2021/22 2020/21 Capital expenditure €m 362 256 Capital employed €m 2,866 2,441 (ba
Slide 10: Increase in total assets mainly due to inventory build-up
Increase in total assets mainly due to inventory build-up Assets (in € million) Equity and liabilities (in € million) 5.926 5.926 5.470 5.470 Fixed assets 2.035 1.943 Equity 3.202 2.674 Inventories 2.202 Provisions 189 362 1.770 Financial liabilities 327 582 Receivables 792 983 Other liabilities 2.2
Slide 11: Multimetal Recycling segment
Multimetal Recycling segment Breakdown of income components in MMR segment 2021/22 FY (prior-year figures) 12M 12M Operating results 2021/22 2020/212 43 % (49 %) Refining charges 53 % (46 %) EBIT €m 206 260 Metal gains for recycling input EBT €m 205 256 ROCE1 % 25.7 35.4 Quantities Other recycling m
Slide 12: Custom Smelting & Products segment
Custom Smelting & Products segment Breakdown of income components in CSP segment 12M 12M 2021/22 FY (prior-year figures) Operating results 2021/22 2020/212 EBIT €m 388 184 49 % (44 %) EBT €m 390 185 31 % (30 %) Premiums + ROCE1 % 18.7 11.2 Metal gains products Quantities Concentrates mt 2,429 2,250
Slide 13: Growth Strategy: Adjustment of dividend policy, highest dividend proposal since IPO
Growth Strategy: Adjustment of dividend policy, highest dividend proposal since IPO Aurubis dividend Dividend yield (in € per share) (in %) 3.3 1.80 3.1 1.60 1.55 Aurubis' growth strategy requires 2.6 2.5 high investments in the coming 1.30 1.25 2.2 years Strategic projects ensure considerable incre
Slide 14: Market outlook for 2022/23
Market outlook for 2022/23 We anticipate a further increase in concentrate supply from the mine side, underpinned Copper by new greenfield projects and the expansion of existing mines. concentrates Our smelters are already well supplied into Q2 of FY 2022/23. We expect a stable supply of copper scra
Slide 15: Cyberattack on Aurubis IT systems on October 28th
Cyberattack on Aurubis IT systems on October 28th As a result, systems at Aurubis sites had to be shut down and disconnected from the internet as a preventive measure. Production at all smelter sites was unaffected. − We are proud that we were able to restore all IT systems - both in terms of system
Slide 16: EBT between € 400 million and € 500 million
FY 2022/23 guidance Our forecast range Operating EBT Operating ROCE between € 400 million between 11 % and € 500 million and 15 % Operating EBT Operating ROCE in € million in % Group 400–500 11–15 Multimetal Recycling 100–160 11–15 Custom Smelting & Products 350–410 15–19 Aurubis Analyst Conference
Slide 17: Our strategy builds on the sound mission of Aurubis
Our strategy builds on the sound mission of Aurubis and covers all relevant aspects to drive sustainable growth Secure Strengthen Pursue Core Business Core Business Growth Options Industry Leadership in Sustainability Enablers − Digitalization, automation, and “Plant of the Future” − Strategic resou
Slide 18: Growth options: Aurubis Richmond in Augusta, Georgia, USA
Growth options: Aurubis Richmond in Augusta, Georgia, USA Aurubis Richmond Module 2 Aurubis Analyst Conference Call on December 21, 2022 18
Slide 19: Accelerated growth in the US: 2nd module Aurubis Richmond
Accelerated growth in the US: 2nd module Aurubis Richmond Pursue Investment 2nd EBITDA p.a. Growth Options module + ~ € 90 million Approval and implementation of Module 2 earlier than presented during the strategy + ~ € 250 million (by 2026/27) update in December 2021. Recycling boom in the US is le
Slide 20: Aurubis Richmond: Expansion of front-runner position in the US recycling market
Aurubis Richmond: Expansion of front-runner position in the US recycling market Augusta, Richmond County, Georgia, USA Started as greenfield project, Aurubis is currently building the largest complex recycling smelter in the United States Plant designed to recycle PCBs, shredder, and other metal-con
Slide 21: Aurubis Richmond: Project timeline
Aurubis Richmond: Project timeline Identified project Site site in Augusta, preparation/ Start of Start of Start of Georgia planning construction commissioning production 2021 2022 2023 2024 2025 2026 Module I Community engagement 2021 2022 2023 2024 2025 2026 Module II Decision/ Start of Start of a
Slide 22: Aurubis Richmond – the leading processor of electric and electronic recycling materials in the US
Aurubis Richmond – the leading processor of electric and electronic recycling materials in the US EBITDA p.a. Pursue Growth Options Investment ~ € 80 million (by 2025/26) ~ € 640 million Aurubis Richmond complements and expands our international integrated smelter ~ € 170 million network with a high
Slide 23: Secure core business: Complex Recycling Hamburg (CRH)
Secure core business: Complex Recycling Hamburg (CRH) – further optimization of smelting process CRH Aurubis Analyst Conference Call on December 21, 2022 23
Slide 24: CRH: Further optimization of the smelting process in Hamburg
Secure & strengthen core business CRH: Further optimization of the smelting process in Hamburg Secure Strengthen Core Business Core Business Investment EBITDA p.a. ~ € 190 million ~ € 40 million Aurubis is strengthening its core business and investing € 190 million for further (at full production) o
Slide 25: Sustainability: Energy and decarbonization projects
Sustainability: Energy and decarbonization projects PV Pirdop I-III Aurubis Analyst Conference Call on December 21, 2022 25
Slide 26: Sustainability: Aurubis on its way to carbon-neutral production
Sustainability: Aurubis on its way to carbon-neutral production Optimizing electricity Industry Leadership Investment consumption p.a. in Sustainability ~ 13,500 MWh* +~ € 12 million (since PV 1) Expansion of solar park until 2024 in Pirdop, Bulgaria, with a combined (for 2024 expansion) +~ 17,000 M
Slide 27: Aurubis is extending its leading position in energy efficiency
Aurubis is extending its leading position in energy efficiency The CO2 footprint of Aurubis copper production is less than half the global average Global average: 1,460 kg CO2* 3,833 kg CO2* per t of copper * Source: International Copper Association 2019, Aurubis LCA 2021 Aurubis constantly works on
Slide 28: Enabler Fusion – Smelting together: Integrating processes across Aurubis
Enabler Fusion – Smelting together: Integrating processes across Aurubis 7 sites Enabler Investment Hamburg, Lünen, Pirdop, Olen, ~ € 60 million Technical modernization and migration of all major Aurubis sites to a Beerse, Berango and Richmond uniform SAP S/4 HANA system and standardization of busin
Slide 29: Growth strategy: CAPEX and EBITDA impact increase significantly
Growth strategy: CAPEX and EBITDA impact increase significantly Short term Medium term Long term Currently approved Medium-term planning (next 4 years) Until 2030 − Growth Capex ~€ 1,000 − Growth Capex ~€ 400 million are − Ambition and scale of our million approved included in the medium-term long-t
Slide 30: Annual Report Fiscal Year 2021/22 Analyst Conference Call
Annual Report Fiscal Year 2021/22 Analyst Conference Call on December 21st, 2022
Slide 31: Financial Calendar
Financial Calendar − Q1 2022/23 February 6, 2023 − AGM February 16, 2023 − Q2 2022/23 May 11, 2023 − Q3 2022/23 August 7, 2023 − Annual Report 2022/23 December 6, 2023 Aurubis Analyst Conference Call on December 21, 2022 31
Slide 32: Your IR Contacts
Your IR Contacts Angela Seidler Elke Brinkmann Ferdinand von Oertzen VP Investor Relations, Head of Investor Relations Specialist Investor Relations Corporate Communications +49 40 7883-2379 +49 40 7883-3179 & Sustainability e.brinkmann@aurubis.com f.vonoertzen@aurubis.com +49 40 7883-3178 a.seidler
Slide 33: Aurubis at a glance
Based in Hamburg, Aurubis AG The company’s main expertise Aurubis develops its leading market is in optimally processing at a glance position with a responsible approach to the environment, concentrates and recycling raw materials with people, and resources complex qualities The company, which was f
Slide 34: Scheduled shutdowns in the next 3 years
Scheduled shutdowns in the next 3 years EBT effect from scheduled shutdowns (in € million) Status: December 2022 FY 2022/23 FY 2023/24 FY 2024/25 Smelter May/ maintenance ~36 June 2024 Hamburg Smelter May/ May/ maintenance ~20 ~35 June 2023 July 2025 Pirdop Anode Nov./ Nov./ Nov./ furnace ~7 ~8 ~8 D
Slide 35: Primary copper production process
Primary copper production process Sulfuric acid plant Off-gas cleaning Copper scrap Copper concentrates Copper matte Blister copper (64 % Cu) (98 % Cu) Flash smelter Converter Anode furnace Copper Nickel sulfate (99.5 % Cu) Anode Cathode Anode slime Anode casting wheel Tankhouse Precious metal refin
Slide 36: 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