61 slides from Elvalhalcor Hellenic Copper And Aluminium Industry's investor presentation, April 2021
Slide 1: Corporate Presentation
Corpo rate Present ation 04.21 1
Slide 2: Viohalco at a glance
Viohalco A Euronext-listed holding company of leading metal at a glance. processing companies across Europe. Viohalco companies specialise in the manufacture of aluminium, copper, steel, steel pipes and cables products. Viohalco’s portfolio also Sales in more than EUR 3.3 billion includes a dedicate
Slide 3: ElvalHalcor Overview
01. Elval Halcor Over view. 3
Slide 4: ElvalHalcor at a Glance. Facts.
ElvalHalcor at a Glance. Facts. ElvalHalcor is a Greek-based leading global player in the non-ferrous metals industry. We are a More Among the Commercial leading global than 80 biggest global export orientation manufacturer years of non-ferrous with well-balanced of aluminium and experience metal pr
Slide 5: ElvalHalcor at a Glance. Figures.
ElvalHalcor at a Glance. Figures. 2.0 EUR billion 1.8 EUR billion 136 EUR million 475 Thousand tons Νο.1 Copper tubes revenue total exports adj. EBITDA volume of sales producer in Europe European leading 100 Countries 17 State of the art >600 EUR million investments positions products are shipped pr
Slide 6: Corporate Structure Overview
Corporate Other Structure Participations 25% 93% 28% Overview. (To be distributed as dividend in kind. Ex-dividend date is April 15, 2021) Other Shareholders Aluminium Copper segment 8.6% 91.4% segment 100% 100% 100% 89% 100% 100% 49% 75% 80% 100% 50% 50% (1) (1) (1) (Acquired in 2021) 1. UACJ Elval
Slide 7: Environment Social Governance
Environment Social Governance. ESG risks mitigation is a priority for the Company’s responsible operation. Environment • Sustainable products supporting decarbonization technologies and circular economy Governance • Continuous improvement of our environmental and carbon footprint • Sound Business pr
Slide 8: Sustainable Operation
Sustainable Track record highlighting actions Operation. for continuous improvement in material issues. Aluminium State of the art Continuous, on line and Copper recycling industrial wastewater monitoring and Production of low treatment for the Oinofyta control of environmental carbon, circular prod
Slide 9: International Focus
International Focus. Highly extrovert business model with solid presence in more than 100 countries around the globe and revenues generated abroad representing over 9% Greece 91% Other EU of total turnover 61% Other Europe (non EU) 9% Production facilities UK 6% America 6% Asia 6% Group turnover Afr
Slide 10: Pass-through Business Model
Raw Material Costs Sales Price EH Added Value Net Added (Fabrication and Value Transportation Cost Mark-up) Scrap Result LME +Premium Premium Scrap: Metal LME price net Result of scrap rebates LME Metal Price Pass-through Primary Aluminium, Raw Material Costs: Business Model. Copper Accounting Pass-
Slide 11: Financial Highlights FY2020
Financial Highlights FY2020. €0.03 DPS(1) FY 2019 FY 2020 2019 vs 2020 Revenue: €2,044m Revenue: €2,029m Revenue -0.7% 1,026 1,018 976 1,053 Decrease driven 50% 50% 48% 52% by decline in sales volumes. EBITDA: €137m EBITDA: €122m EBITDA 39 43 28% 35% -10% EBITDA negatively driven by the 98 79 downtr
Slide 12: Mega trends. Enablers.
Mega trends. Enablers. Clean, circular Transition to economy climate neutrality Urbanization • Low carbon and • Electrification • Sustainable buildings recyclable products • Power storage • Energy efficiency in buildings • Products with high • E-mobility • Smart buildings recycled content • RES grow
Slide 13: Mega trends. Products.
Mega trends. Products. Aluminium segment’s products & solutions • Sheets and coils for beverage cans, • Sheet, plates, coils and profiles for marine • Mill finish or coated sheets and profiles food containers, closure caps and aerosol applications and road, rail transportation vehicles. for building
Slide 14: Al-Cu Overview of Growth Drivers
Overview of Growth Drivers. ES Global effort for reduction of plastic pollution is leading G N to increased demand for fully recyclable materials like LE aluminium and copper. To address our climate and energy AL challenges, we need to move towards a greener and more CH Aluminium and Copper are 100%
Slide 15: Overview of Growth Drivers
Overview of Growth Drivers. Global effort for reduction of plastic pollution is leading to increased ABOUT RECYCLING demand for fully recyclable materials like aluminium and copper. 75% BEVERAGE OF ALL CANS USES ALUMINIUM ONLY 5% OF The aluminium can EVER THE ENERGY Recycling rates PRODUCED USED TO
Slide 16: e-mobility. Cu-Al.
e-mobility. Cu-Al. Copper and aluminium demand will be substantially impacted by the growing market for electric vehicles (EVs) over the next decade. Copper is used in electric motors, batteries, inverters, wiring and in charging stations. Battery boxes are strong drivers for aluminium. Electric Veh
Slide 17: Operational Highlights
Operational Highlights. Completion of Order of a Completion installation of a 6-high aluminium of New four-stand tandem cold rolling rolling mill aluminium hot rolling mill and a in Sofia Med. finishing mill. lacquering line. Increase in Hot-rolled Will increase capacity Increasing capacity by capac
Slide 18: Focus on... Hot rolling efficiency
Focus on... The efficiency in Elval’s hot rolling production route, secured by the successful installation of the tandem hot finishing mill. New milestone Investment Hot rolling production route with single-stand reversing mill Hot rolling production route with tandem hot finishing mill ROUGHING FIN
Slide 19: Strategic Priorities
Strategic Priorities. Capitalizing on market trends and own strengths to accelerate EBITDA growth Situation Overview / Actions Situation Overview / Actions Increase Installed Capacity (‘000tn)(1) • Currently operating near full capacity which is increasing to 360 thousand tons as the integration of
Slide 20: Market Update
02. Market Update. 20
Slide 21: Diversified Exposure to Structural Attractive and Growing Markets
Diversified Exposure to Structural Selling product into diverse end markets that are expected Attractive and Growing Markets. to grow or have limited sensitivity to economic cycles Product Mix Key Macro Drivers Effect on ElvalHalcor Manufacturing activity and industrial growth in developed and emerg
Slide 22: Market Shares
Market Shares. European demand - Al flat rolled products European demand – Cu Tubes kTns ElvalHalcor’s kTns ElvalHalcor’s Share Share Industrial applications 819 3.2% Building and Industrial applications 71 21.5% 573 8.9% construction Automotive Building and construction 134 20.1% 875 2.5% and trans
Slide 23: Aluminium Segment
03. Aluminium Segment. 23
Slide 24: Aluminium Segment
Aluminium Segment. State of the art production Fifth largest player in Europe with 9 plants 86% Invested approximately of turnover in facilities with capabilities to 7% in Greece, with annual production sales abroad in around 100 EUR 400m produce wide coils market share capacity exceeding in equipme
Slide 25: Continuous investments in state-of-the-art equipment & technology
Continuous investments in state-of-the-art equipment & technology. Rolling forward. Tandem hot Six-high cold Lacquering finishing mill rolling mill line • Commissioned by SMS Group • To be commissioned by Mino SpA • Contract awarded to technology • Precise, safe, and efficient hot rolling • Over 2 m
Slide 26: Revenue by Market & Geographical Segment
Revenue by Market & Geographical Segment. Aluminium Revenue breakdown (FY 2020) By Market (% of tons) By Geographical Segment (% of €) Greece UK Industrial Rigid 14% 3% Applications Packaging Other Europe 16% 33% 7% Building & USA Construction EU (excl. 6% 13% Greece) America 60% 2% Flexible Transpo
Slide 27: Main Production Facilities
Main Production Facilities. 1. Expected to increase to 520,000 tons upon completion of the New €100 million investment Rolling Foil Rolling Foil Converting Oinofyta Greece Oinofyta Greece Mandra Greece Flat rolled aluminium products Foil for: Converted foil for: and solutions for: • Flexible packagi
Slide 28: Main Production Facilities
Main Production Facilities. Coated Products & Composite Panels Rolling Shutters Extrusion Plant St.Thomas Greece Nea Artaki Greece Magoula Greece Solutions for a complete range of coated aluminium • Aluminium rolling shutters and doors Aluminium extrusions for Architectural and Industrial products u
Slide 29: Aluminium - Rolled Products/Markets
Aluminium - Rolled Products/Markets. Packaging • Beverage cans • Food containers • Closure caps • Flexible packaging • Household foil Shipbuilding • Patrol vessels • Catamarans • Yachts • Ferries Commercial Transportation • Tipper trucks • Road silos • Refrigerator trucks • Cargo wagons Automotive •
Slide 30: Aluminium - Rolled Products/Markets
Aluminium - Rolled Products/Markets. Industrial applications • Renewable energy • Bus ducts • Lamp base • Telecommunication cabins Domestic applications • Cookware • White goods Building & Construction • Façades • Functional • Roofing coatings • Rain gutters • Flashings • False ceilings • Multi-laye
Slide 31: Aluminium - Extruded profiles/Markets
Aluminium - Extruded profiles/Markets. Industrial applications • Radiators • Stages • Industrial parts Building & Construction Residential • Doors & windows • Shading systems • Balustrades Building & Construction Large Scale Projects • Doors & windows • Partition walls • Façades 31
Slide 32: Certified Processes and Quality Standards
Certified Processes and Quality Standards. • Quality: certified according to ISO 9001:2015 • Environmental management system: certified with ISO 14001:2015 • Energy management system: certified according to ISO 50001:2018 • Health and safety management system: certified according to ISO 45001:2018 •
Slide 33: R&D&I & Technology
R&D&I & Technology. ElvalHalcor invests continuously in R&D&Ι of processes, products, and materials while promoting innovation. As an active member of Elkeme (Hellenic Research Centre for Metals), ElvalHalcor capitalizes on research to develop efficient technology, cutting- edge products and integra
Slide 34: Copper Segment
04. Copper Segment. 34
Slide 35: Copper Segment
Copper Segment. State of the art production European market Products sold High Strong input in: facilities for copper and copper leader in copper in around specifications • HVAC&R industry • Electrical industry alloy and titan zinc products: • Largest tube mill in EMEA tubes. 80 countries output acc
Slide 36: Production Facilities
Production Facilities. Tubes Foundry Copper and Brass Oinofyta Greece Oinofyta Greece Sofia Bulgaria Copper tube plant producing: Foundry producing: Specialises in the production of rolled and extruded • Copper tubes with or without plastic coating • Copper billets and slabs copper and copper alloy
Slide 37: Production Facilities
Production Facilities. Alloy Bars, Tubes and Wires Coins blanks and Rings Tubes 1. HC Isitma is a JV in which ElvalHalcor participates by 50% Oinofyta Greece Pogoni Greece Gebze Turkey (1) Specialises in the production Specialises in the production Specialises in the production of of extruded copper
Slide 38: Production Facilities
Production Facilities. 1. Nedznik is a JV in which ElvalHalcor participates by 50% Wires Titanium Zinc Livadia Greece (1) Budel Netherlands Capacity: Capacity: 12,000 tons/year 36,000 tons/year 38
Slide 39: Revenue by Market & Geographical Segment
Revenue by Market & Geographical Segment. Copper Revenue Breakdown (FY 2020) By Market (% of tons) By Geographical Segment (% of €) Buildings & America Greece Construction 5% 5% 26% Asia Industrial Africa & Oceania 7% Applications 3% Electronics & Other 33% Electrical Europe 16% 11% Automotive & UK
Slide 40: Products & Main Applications
Products & Main Applications. HVAC&R Copper tubes Industrial • Air-conditioning Applications • Refrigeration • Fittings • Heat exchangers • High frequency cables • Boilers • Filters Copper tubes bare, • Various industrial applications pre-insulated or inner grooved from 4 up to 108 mm for: Building
Slide 41: Products & Main Applications
Products & Main Applications. Industrial Markets: Automotive • General mechanical Commercial engineering transportation • Heat exchangers • Deep drawing quality • Buttons • Connectors • Pre-rolled • Battery terminals • Power distribution bus bars • Relays Cu + Brass + Cu HPA • Switches • Fuses Sheet
Slide 42: Products & Main Applications
Products & Main Applications. Enamelled & Welding Wires • Enamelled copper and aluminium wires • Rectangular enamelled Copper wires • Copper welding wires Produced by Cablel Wires Extruded Products Coin Blanks & Rings Copper alloy and brass rods, bars, sections, tubes, flats, wires for: Construction
Slide 43: Certified Processes and Quality Standards
Certified Processes and Quality Standards. SPAIN - AENOR GERMANY - GL GERMANY - TUV CERT ROMANIA - AR ElvalHalcor’s capability to produce meets all international specifications and customer specific requirements, with the highest standards of QUALITY. RUSSIA - GOST FRANCE - CSTB GERMANY - DVGW FINLA
Slide 44: Financial Information
05. Financial Information. 44
Slide 45: Sales Evolution
Sales Steadily increasing sales Evolution. underline solid and continuous momentum. Sales Volumes (‘000tn) adjustments in order to present information on a like-for-like comparable basis, as the consolidation perimeter Figures for 2015 and backwards are not based on audited information but managemen
Slide 46: Sales evolution during 2020
Sales evolution during 2020. 310 -3.5% Sales Volumes (‘000tn) 299 Aluminium 2019 -4.5% -16.2% -7.9% +18.3% 2020 80 76 79 67 84 77 67 79 Grand Total: -0.9% Q1 Q2 Q3 Q4 Total +3.9% Copper 170 176 -2.4% +7.1% +2.2% +9.7% 2019 46 45 43 47 41 42 39 43 2020 Q1 Q2 Q3 Q4 Total 46
Slide 47: Key Figures. Maintaining Solid Financial Performance
Key Maintaining Solid Figures. Financial Performance. Revenue (€m) EBITDA vs Adjusted EBITDA(1) (€m) Volume 448 482 479 475 (‘000tn) CAGR 2.9% Adj. EBITDA CAGR 1.7% 2,118 160 165 2,045 2,029 1,863 142 140 129 137 136 1. Adjusted for aluminium and copper price fluctuations and other non recurring ite
Slide 48: Key Figures. Solid Profitability
Key Solid Profitability supported Figures. by both segments. Adjusted EBITDA per Division (€m) adjustments in order to present information on a like-for-like comparable basis, as the consolidation perimeter CAGR 2010-2020: 3.6% Figures for 2017 and backwards are not based on audited information but
Slide 49: Evolution of the Consolidated Working Capital
Evolution of the Consolidated Working Capital. Working Capital % of Sales (1) +7% Increase in Working Capital due to increase in ~ 24% ~ 21% price of Copper and Revenue increase during 504 Q4’20 especially in comparison to Q4’19. 470 440 418 +19% 319 268 1. Calculated on annualized sales based on Q4
Slide 50: Consolidated Debt Maturity
Consolidated Increase of Debt with a long-term maturity for the financing Debt Maturity. of the investment programme. FY 2019 FY 2020 Total Loans & Borrowings: €615 m Total Loans & Borrowings: €657 m 452 463 73% 70% 163 194 27% 30% Long-Term Short-Term 325 240 194 177 163 69 58 46 2019 Μ€ 2020 Short
Slide 51: Capex Evolution
Capex Over the peak of the Evolution.(1) investments. Capex Evolution (€m) Driven by investment plan in Aluminium segment 164 20 116 144 22 92 34 55 46 94 13 8 58 Copper 38 41 Αluminium 2016 2017 2018 2019 2020 1. Figures for 2016 are not based on audited information but management estimates and adj
Slide 52: Conclusion/Highlights
Conclusion/ Highlights. ElvalHalcor, has passed With state of the art With a proven track- And significant and the peak of the equipment and a very record, having reached continuous market share investments and is ready competitive cost No1 in the Cu tubes gains even in times to reap the benefits. b
Slide 53: Income Statement
Income Statement. PROFIT & LOSS STATEMENT Amounts in € million 2018 2019 2020 Revenue 2,117.8 2,044.6 2,028.6 Aluminium Segment 1,079.0 1,026.2 975.8 Copper Segment 1,038.8 1,018.4 1,052.8 Cost of Sales (1,950.8) (1,899.5) (1,893.6) Gross Profit 166.9 145.1 134.9 Gross Profit Margin (%) 7.9% 7.1% 6.
Slide 54: Balance Sheet
Balance BALANCE SHEET Amounts in € million Dec-18 Dec-19 Dec-20 BALANCE SHEET HIGHLIGHTS Amounts in € million Dec-18 Dec-19 Dec-20 Sheet. Non-current Assets (i) Working Capital Property, Plant and Equipment 720.6 813.3 851.9 Inventories 519.2 470.0 503.8 Right of Use assets - 19.3 19.7 Trade and Oth
Slide 55: Appendix
06. Appendix. 55
Slide 56: Corporate Restructuring
Corporate Restructuring. • Leading aluminium rolling manufacturer globally Sizeable • Dynamic commercial presence in European and global markets Financial Integrated with established commercial network across 21 countries strength production • Offers innovative solutions for packaging, transportatio
Slide 57: History Overview. Halcor
History Overview. Halcor Increase of production Cross-border merger capacity for 9m-long by absorption of the Installation of the slabs and installation Greece-based Elval Holdings, Installation of new Installation first Green melt of the second Green Alcomet, Diatour and the Viohalco commenced sing
Slide 58: History Overview. Elval
History Overview. Elval Through its subsidiary Gains leading position among • Viohalco commenced Sofia Med, Halcor European copper tubes Completion of its • activities on Copper purchased the fixed manufacturers. 10-year extensive • Commencement of assets of KOZM and Signing of cooperation agreement
Slide 59: Certifications by company/plant
Certifications by company/plant. ELVAL ELVAL VEPAL SYMETAL SYMETAL HALCOR FITCO CABLEL EPIRUS SOFIA MED COLOUR OINOFYTA MANDRA WIRES METALWORKS ISO 9001:2015 √ √ √ √ √ √ √ √ √ √ ISO 14001:2015 √ √ √ √ √ √ √ √ √ √ ISO 45001:2018 √ √ √ √ √ √ √ OHSAS 18001:2007 √ √ ISO 50001:2018 √ √ √ √ √ √ √ IATF 169
Slide 60: Disclaimer
Disclaimer. The information contained in this corporate presentation (CP) has been prepared by ElvalHalcor S.A. (the Forward Looking Statements Company). It is based on historical financial data and other information already publicly disclosed by the Company. Certain statements in the CP are forward
Slide 61: Disclaimer
Disclaimer www.elvalhalcor.com 61