Slide 1: OM Holdings Limited ASX announcement cover letter
OM HOLDINGS LIMITED (ARBN 081 028 337) (Malaysian Registration No. 202002000012 (995782-P)) Incorporated in Bermuda No. of Pages Lodged: 18 5 April 2023 ASX Market Announcements ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam OM HOLDINGS LIMITED (“OMH”) PRESENTATION Please find
Slide 2: OM Holdings Limited
1 OM HOLDINGS LIMITED Australia • China • Japan • Malaysia • Singapore • South Africa April 2023 • Future Facing Commodities • ASX:OMH | Bursa:OMH (5298)
Slide 3: Disclaimer
2 DISCLAIMER This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all information that an investor should consider w
Slide 4: A Manganese & Silicon Company
3 A MANGANESE & SILICON COMPANY Manganese and silicon smelting company, with vertical exposure in mining and trading 350MW sustainable hydro-power with prices locked in for 10 years Dual listed on ASX and Bursa Malaysia, unique exposure Lowest cost quartile smelter complex in Sarawak, the largest of
Slide 5: Key Operations
4 KEY OPERATIONS Sarawak - Malaysia (100%) Mn alloy: 333-400ktpa, Ferrosilicon: 120-126ktpa Sinter ore: ~250ktpa Smelting & Silicon Metal: 21-24.5ktpa Sintering Qinzhou - China (100%) Mn alloy: 80-95kpta Sinter ore: 300ktpa Australia (100%) Singapore/China (100%) Exploration + Tailings Plant Global
Slide 6: Our Products
5 OUR PRODUCTS Metals for today and tomorrow Ferroalloys Silicon Metal TODAY TOMORROW • First quartile cost • Solar a key renewable, fully producer dependent on the supply of • Large demand base silicon metal • Hydropower green • Supply security concerns credentials Supplying Supplying Steel Mills +
Slide 7: Smelting: A Power Intensive Operation
6 SMELTING: A POWER INTENSIVE OPERATION 117 times No. of times an average EV battery* can be charged to smelt ONE tonne of Fesi *Assuming 75kWh
Slide 8: Global Ferroalloy Supply
7 GLOBAL FERROALLOY SUPPLY Sarawak a paradigm shift for energy-hungry ferroalloys Top 5 Exporters of FeSi, SiMn, and HCFeMn Silicomanganese Cost Curve CIF Japan 4,000 3,500 3,000 Thousand Metric Tonnes OMH Group 2,500 2,000 0 50 100 150 200 250 1,500 Thousand Metric tonnes 1,000 500 Ferrosilicon Cos
Slide 9: Growth of Steel in Southeast Asia (SEA)
8 GROWTH OF STEEL IN SOUTHEAST ASIA (SEA) Regional steel demand remains positive in the long run South East Asia new Addition of steel capacity in SEA • Surge of foreign investments in SEA steel mills since steel capacities: 90.8m MT 2 2015 (~25 million MT) 1 • Current capacity in ASEAN: 71.8mt, exp
Slide 10: Silicon Metal: Smartphones to Solar Panels
9 SILICON METAL: SMARTPHONES TO SOLAR PANELS The world needs silicon metal more than ever Source: Reuters, Fastmarkets Export from Top Silicon Metal Producers 1,400 China Norway Brazil Australia Thousands Metric Tonnes 1,200 1,000 800 600 400 200 0 2015 2016 2017 2018 2019 2020 2021 Source: UN Comtr
Slide 11: Sarawak's Hydro-Electric Plants
10 SARAWAK’S HYDRO-ELECTRIC PLANTS Bakun Dam, image courtesy of Sarawak Energy Bhd. 3.3 GW Powering our Future 3.3 GW is the installed capacity of Bakun and Murum dams. Source: https://www.sarawakenergy.com/
Slide 12: OM Sarawak – December 2018
11 OM SARAWAK – DECEMBER 2018 • 16 Electric Arc Furnaces • In full production June 2018 • 500 acres land adjacent to the new Samalaju Port, Sarawak
Slide 13: Silicon + Capacity Expansion = Earnings Driver
12 SILICON + CAPACITY EXPANSION = EARNINGS DRIVER Maintenance works continue in 2023, working towards silicon metal commissioning 2023 Future Fesi 5 to 6 furnaces 6 of 6 65-70 mt / day 110-130ktpa 130-140ktpa Stabilize operations post COVID Mn Alloys 5 to 6 furnaces 8 of 8 100-110 mt / day 200-220kt
Slide 14: Our Sustainability Journey
13 OUR SUSTAINABILITY JOURNEY Clear focus with major targets set for 2022 and beyond Environmental Social Governance • Comply with Malaysian Ambient Air • Commit to zero workplace fatality • Establish Supplier’s Code of Conduct Quality Guideline • Achieve ISO 45001 by FY2023 • Audit 5 suppliers for
Slide 15: Not Exactly a New Business
14 NOT EXACTLY A NEW BUSINESS $300 $500 Total Debt (LHS) 2 EBITDA 1.77 $250 Gearing Ratio (RHS) Cashflow from Operations $400 $200 US$ million US$ million $300 1.14 $150 0.93 0.89 1 $200 0.67 $100 0.63 $50 $100 $0 $0 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2017 FY2018 FY2019 FY2020 FY2021 FY20
Slide 16: Company Snapshot
15 COMPANY SNAPSHOT Sustainable dividend policy for growth phase Dividend Policy announced March 2023 Issued Shares 738.6 million shares Distribute 10% to 30% of NPAT, subject to a cap of Share Share Price A$ 0.72 / RM2.10 50% of Free Cash Flow and other considerations Metrics (as at 31st 52 weeks L
Slide 17: Key Takeaways
16 KEY TAKEAWAYS OM, now a simpler story STRONG MARGINS STABLE OUTPUT + GROWTH Heat recycling Lowest Cost Quartile Largest Producer in the Ferroalloy Smelter in the Region, with Growth and Generate more power by Region(1) Diversification Plans recycling exhaust heat Backed by low cost environmentall
Slide 18: OM Holdings Limited
17 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA