Aurubis Ag · XETR:NDA
Aurubis — Q1 2019/20 Earnings Presentation
18 slides from Aurubis's earnings presentation, Feb 13, 2020
Slide 1: Quarterly Report First 3 Months 2019/20
Quarterly Report First 3 Months 2019/20 Analyst Conference Call on February 13, 2020
Slide 2: Executive summary of Q1 2019/20
Executive summary of Q1 2019/20 » First quarter closed with a solid result » Operating EBT of € 31 million (PY: € 40 million) » ROCE of 7.6 % (PY: 11.3 %), burdened by the impairments in Segment FRP of the last quarter » Net cash flow at € -93 million (PY: € -308 million) and thus 70 % above previou
Slide 3: Operating EBT influenced by € 34 million loss of earnings due to the Hamburg shutdown
Operating EBT influenced by € 34 million loss of earnings due to the Hamburg shutdown 3M 2019/20 3M 2018/19 Operating EBT (€ million) 31 40 Net cash flow (€ million) -93 -308 Operating ROCE (%) 7.6 11.3 (operating EBIT last 4 quarters) February 2020 3
Slide 4: Market conditions in Q1 2019/20: Promising scrap markets, TC/RCs under pressure
Market conditions in Q1 2019/20: Promising scrap markets, TC/RCs under pressure Trend in significant market prices and refining charges 140% 100 % = Sept. 2018 120% Copper premium 100% European refining charges for copper scrap no. 2 Exchange rate (US$/€) 80% TC/RCs for copper concentrates (contract
Slide 5: Coronavirus: Impact on the copper market and factors to watch
Coronavirus: Impact on the copper market and factors to watch » Lockdown of ~13 Chinese cities in Hubei province Copper price / demand: » Negative impact in fear of overall lower copper demand and disruptions in global supply chains » Shanghai spot premiums at a low (~US$ 40/t) Copper smelting: » Hu
Slide 6: Gross profit positively influenced by higher RCs on copper scrap and higher metal gains
Gross profit positively influenced by higher RCs on copper scrap and higher metal gains 3M 3M Change vs. prior (operating IFRS) 2019/20 2018/19 year Revenues €m 2,709 2,614 4% Gross profit €m 263 264 0% EBITDA €m 71 76 -7 % EBIT €m 33 42 -21 % EBT €m 31 40 -23 % Consolidated net income €m 24 30 -20
Slide 7: Breakdown of energy costs in the Aurubis Group
Breakdown of energy costs in the Aurubis Group Breakdown of energy costs in the Electricity consumption and CO2 scopes Aurubis Group (3M 2019/20) » Total electricity consumption in the Aurubis Electricity Oxygen 67% Group: approx. 1.7 million MWh (2018) 13% » CO2 emissions of 1.4 million t (2018) Ga
Slide 8: Our ideas to tackle CO2 emissions
Our ideas to tackle CO2 emissions Main projects implemented to reduce CO2 emissions » District heating part 1 in Hamburg (20,000 t CO2) » Power2Steam in Hamburg (up to 4,000 t CO2) » Wind turbine in Olen (~5,800 t) / back-pressure turbine Pirdop (~5,600 t) Ideas to reduce CO2 emissions » District he
Slide 9: Still very robust key figures provide room for future growth
Still very robust key figures provide room for future growth 3M 3M Target 2019/20 2018/19 ROCE* % 7.6 11.3 15.0 Equity ratio % 53,7 56.6 > 40.0 (equity / total liabilities) Debt coverage** 0.1 0.4 < 3.0 3M 3M Additional KPIs 2019/20 2018/19 Capital expenditure €m 61 46 (including finance leases) Cap
Slide 10: Segment MRP: Good concentrate throughput despite shutdown in Hamburg
Segment MRP: Good concentrate throughput despite shutdown in Hamburg Operating results for Segment Metal Refining & Processing (MRP) (first 3 months FY 2019/20) 3M 3M » Scheduled shutdown in Hamburg in Oct./Nov. with a negative Segment MRP impact of ~ € 34 million with lower throughput and sulfuric
Slide 11: Segment FRP: Continued weak demand largely compensated by effects from efficiency improvement
Segment FRP: Continued weak demand largely compensated by effects from efficiency improvement Operating results for Segment Flat Rolled Products (FRP) (first 3 months FY 2019/20) 3M 3M » Weak demand due to seasonal factors and overall low market Segment FRP 2019/20 2018/19 demand EBIT (in €m) -1 -1
Slide 12: Update on announced strategic activities
Update on announced strategic activities Aurubis AG to acquire Metallo Group Aurubis AG to divest Segment FRP » On May 22, 2019, Aurubis AG signed a share » In February 2019, the European Commission purchase agreement for the acquisition of the prohibited the sale of Segment FRP to Wieland Belgian-S
Slide 13: Sustainability is a fundamental component of the Aurubis strategy
Sustainability is a fundamental component of the Aurubis strategy Aurubis Sustainability Strategy 2018-2023, main sustainability ratings & initiatives 68 of 100 (2018) AA (2018) 74 of 100 (2019) AA (2019) 2019: Gold Gold = the best 5 % of rated companies Best Newcomer (2015) MDAX Leader (2016) Score
Slide 14: Outlook for 2019/20: More challenging market environment ahead
Outlook for 2019/20: More challenging market environment ahead » Reuters 2020 copper price poll from January: US$ 6,214/t » Stable copper demand based on industry forecasts. Product demand from the automotive sector is expected to remain subdued » TC/RCs for copper concentrates in 2020 will be subst
Slide 15: FY 2019/20 forecast confirmed
FY 2019/20 forecast confirmed In total, we expect an operating EBT between € 185 and 250 million and an operating ROCE between 8 and 11 % for fiscal year 2019/20. Interval forecast Operating EBT Operating ROCE in € million in % Group 185-250 8-11 Segment MRP 230-310 11-16 Segment FRP 11-15 5-7 Febru
Slide 16: Metals for Progress
AAurubis Metals for Progress VISION VISION VISION 2025 Ps Passion for metallurgy for progress with you
Slide 17: Your IR Contacts: Financial Calendar
Your IR Contacts: Angela Seidler Elke Brinkmann Christoph Tesch VP Investor Relations & Senior Manager Senior Manager Corporate Communication +49 40 7883-2379 +49 40 7883-2378 +49 40 7883-3178 e.brinkmann@aurubis.com c.tesch@aurubis.com a.seidler@aurubis.com Financial Calendar » AGM February 27, 202
Slide 18: Legal disclaimer
Legal 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 ris