Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — H1 2026 Earnings Presentation
29 slides from Rhi Magnesita Nv's earnings presentation, Jul 31, 2026
Slide 1: Half Year Results 2026
Half Year Results 2026 31 July 2026 2026 Half Year Results | July 2026 1
Slide 2: Agenda
Agenda 1 HY Overview 2 Strategic Update 3 Financial Review 4 Summary 5 Q&A 6 Appendix 2026 Half Year Results | July 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 TRIF RESET: Program ongoing. LTIF Safety Culture Transformation – added Rollout of the S
Slide 4: Financial Highlights HY 2026
Financial Highlights HY 2026 WSA steel production Industrial projects Revenue Adjusted EBITA Adjusted EBITA margin (yoy ) revenues delayed to 2027/28 - 0 .7% €50m €1.6 bn €165m 10.3% - 70 bps Historic low 5% 17% 190 bps Adjusted operating Dividend Working Capital Net debt to Pro forma Adjusted EPS c
Slide 5: Steel business overview
Steel business overview Self - help measures support gross margins. Positive trajectory for demand and price adaptions Group revenue from steel fell alongside global steel production (increased ~5% on constant currency basis) ⁃ Encouraging resilience, despite ongoing macroeconomic headwinds Revenue
Slide 6: Industrial business overview
Industrial business overview Historically low industrial project activity weighs on earnings Revenues and margins were negatively impacted by much lower Glass and Industrial Applications business. Higher - margin Industrials project business (particularly in Glass and Revenue 1 Industrial Applicatio
Slide 7: Strategic Update
Strategic Update Stefan Borgas, CEO
Slide 8: Industrial Projects have strong fundamentals
Industrial Projects have strong fundamentals Weakness in Glass and Industrial Applications are short - term only Potential Estimated project number Industry Long - term demand drivers Strategic focus customers per year Grow closer to OEMs Cement: construction Plants 37 28 35 Cement & Lime 26 11 Cont
Slide 9: Network Optimisation delivers sustainable savings
Network Optimisation delivers sustainable savings Acquisitions give optionality to strengthen strong sites in an oversupplied industry to improve cost Europe Wave 1: well advanced Program executed Network Optimisation Europe Wave 2: additional opportunities identified, within planned CAPEX and sever
Slide 10: Financial Review
Financial Review Ian Botha, CFO 2026 Half Year Results | July 2026 10
Slide 11: H1 2026 EBITA bridge
H1 2026 EBITA bridge Strong performance in steel partly offset by continued weakness in Industrial Projects €m 42% 165 18 141 10 12 24 27 117 H1 2025 FX headwind H1 2025 Pricing (and Industrial demand Network optimization SG&A* H1 2026 adj. EBITA adj. EBITA at mix) in steel adj. EBITA constant curre
Slide 12: Industrial demand and Vertical Integration weakness continue to pressure margins
Industrial demand and Vertical Integration weakness continue to pressure margins Self - help measures stabilised margins with further benefits in H2 2026 and 2027 FY FY FY H1 H1 H1 H1 2023 2024 2025 2023 2024 2025 2026 RHI RHI Magnesita Consistent margin resilience, Refractory EBITA ( €m) 348 379 33
Slide 13: Working capital build ahead of stronger H2 orderbook
Working capital build ahead of stronger H2 orderbook Working capital consistently higher in H1 vs. H2 Inventory build - up to support order book In the Working capital balances second half, offset by higher accounts payable. €m 22,7% 24,4% 23,4% 21,7% 24,4% North America Accounts Receivable were €40
Slide 14: Strong liquidity and H2 de-leveraging
Strong liquidity and H2 de - leveraging Successful H1 refinancing, with working capital reduction and stronger H2 earnings positioning for lower net debt by year end Adjusted operating cash flow and Cash Net debt increased by € 33 million, reflecting working capital Conversion build - up ahead of a
Slide 15: 2026 EBITA guidance confirmed
2026 EBITA guidance confirmed Focus on self - help to mitigate volatile Industrial Project timelines and FX headwind Adjusted EBITA €m 5 11 235 Self - help: 9 7 ⁃ Pricing, Network 35 Optimisation and Administrative Savings on 165 25 track. Remaining self - help earnings benefits to be realised in H2
Slide 16: Summary
» RHI MAGNESITA, Summary Stefan Borgas, CEO
Slide 17: Summary
Summary Management actions and recovery in Steel drive performance increase Solid performance driven by self - help , that enhances the operating leverage for when 1 demand improves . New self - help measures under consideration for firm momentum into Guidance 2027. 2026 2025 summary Strong performa
Slide 18: RHI Magnesita
8 RHI MAGNESITA
Slide 19: Appendix
3 RHI MAGNESITA Appendix
Slide 20: Profit and loss summary
Profit and loss summary Profitability strengthened through operational improvements despite lower revenues €m H1 2026 H1 2025 1 Change Revenue 1.595 1,677 - 5% Gross profit 354 354 0% Gross margin (%) 22.2% 21.1% 110 bps Reported revenue declined by 5%, resulting from negative foreign exchange effec
Slide 21: H1 2026 revenue bridge
H1 2026 revenue bridge Weaker sales volumes and material FX headwinds, partially offset by price and mix €m 1,677 82 Revenue 1,595 1,595 43 43 H1 2025 Revenue FX headwind H1 2025 Revenue at Lower sales volumes Price and mix H1 2026 Revenue constant currency 2026 Half Year Results | July 2026 21
Slide 22: Cost detail
Cost detail Lower input costs for refractory producers, but some raw materials increasing Raw materials Energy DBM prices softening since Q1 22 Gas prices have normalized; oil prices remain flat DBM 97% (China) Rebased to 100 Rebased to 100 DBM 90% (China) Gas (NL TTF) 220 1.200 Oil (Brent Crude) El
Slide 23: H1 2026 EBITA adjusted items
H1 2026 EBITA adjusted items €m Other Operating Expenses EBITA €42 million adjusted items mainly spending to improve operating efficiency and future profitability: ⁃ €(21) million in expenses for the digital Restructuring expenses plants 25 Digital upgrade 21 Digital upgrade 23 Network optimisation
Slide 24: Capital expenditure
Capital expenditure Capex below depreciation 252 2026 capex guidance reduced to €115 million (from €130 million previously) 180 19 ⁃ € 80 million maintenance capex 156 157 177 156 13 145 ⁃ €35 million project capex 12 123 46 13 74 111 115 Digital architecture investment 86 66 68 43 35 ⁃ c.€35 millio
Slide 25: Cash flow reconciliation
Cash flow reconciliation €m H1 2026 H1 2025 Adjusted EBITDA 230 211 Share based payments - gross non - cash 3 1 Working capital changes 2 57 Changes in other assets and liabilities (29) (49) Investments in Property, Plant & Equipment and Intangible assets (46) (45) Adjusted operating cash flow 160 1
Slide 26: Net financial expenses
Net financial expenses €m H1 2026 H1 2025 Net financial expenses (29) (22) Interest income 6 7 Interest expenses (35) (29) FX effects (3) (13) Balance sheet translation (5) (27) Derivatives 2 14 Other net financial expenses (19) (12) Present value adjustment on provisions (inc. Oberhausen onerous co
Slide 27: Impact of foreign currency movement
Impact of foreign currency movement EBITA sensitivity in H1 2026 2025 and H1 2026 exchange rates Appreciation vs EUR Depreciation vs EUR Increase / Increase / H1 2026 H1 2026 H1 2026 H1 2025 (decrease) (decrease) Opening Closing Average Average Unit in EBITA ( €m) Unit in EBITA ( €m) EUR: Rate Rate
Slide 28: Return on invested capital
Return on invested capital Group ROIC 1 H1 2026 H1 2025 Average Invested Capital ( €m) 2.852 2,837 NOPAT ( €m) 239 165 ROIC (%) 8.4% 5.8% Vertical integration ROIC H1 2026 H1 2025 Average Invested Capital ( €m) 463 443 NOPAT ( €m) 18 18 ROIC (%) 4.0% 4.2% Refractory ROIC H1 2026 H1 2025 Average Inve
Slide 29: Important notice
Important notice Financial information contained herein, as well as other operational information, were not audited by independent auditors an d m ay include forward - looking statements and reflects the current views and perspectives of the management on the evolution of macro - economic environm e