Slide 1: First Half 2017 - Interim Result
For personal use only Magontec Limited (ASX: MGL) First Half 2017 - Interim Result August 2017
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Magontec Limited (ABN 30 147 131 Past performance information given in this Presentation is given for illustrative operational risk associated with the Golmud Plant, fluctuations in magnesium 977) (Magontec or the Company). This
Slide 3: Magontec Limited – 2017 Interim Results
Magontec Limited – 2017 Interim Results For personal use only Magontec Qinghai expected to commence production September 2017 NPAT excl unrealised FX down 31% on pcp Fraud event impacts overall result Underlying NPAT excl unrealised FX & fraud + 8% on PCP 1
Slide 4: Underlying NPAT up 8% on previous corresponding period excluding impact of fraud
FY 2017 Interim Result Underlying NPAT* up 8% on previous corresponding period excluding impact of fraud For personal use only Underlying Net Profit After Tax* ($M) Fraud charge $0.20 1H15 $0.32 $0.51 $0.61 $0.35 ($0.57) 2H15 1H16 2H16 1H17 2 * Excluding effects of unrealised foreign exchange
Slide 5: Reconciliation of significant items in earnings
FY 2017 Interim Result Reconciliation of significant items in earnings For personal use only 1H17 earnings impacted by one-off items 6 months to 6 months to 30-Jun-17 30-Jun-16 '$000 '$000 Net Profit Before Tax, unrealised FX and significant 1,239 1,245 items Significant items before tax Operational
Slide 6: Chinese anode volumes and Romanian recycling drag on overall performance
FY 2017 Interim Result Chinese anode volumes and Romanian recycling drag on overall performance For personal use only Gross Profit ($M) and GP margin Cashflow ($M) 11.2% 11.4% $2.5 10.5% 9.8% $2.4 $2.4 8.7% $1.8 $1.2 $5.9 $7.0 $7.4 $7.0 $7.3 1H15 2H15 1H16 2H16 1H17 1H15 2H15 1H16 2H16 1H17 4
Slide 7: EBITDA and EBIT impacted by one-off charges
FY 2017 Interim Result EBITDA and EBIT impacted by one-off charges For personal use only EBITDA and EBIT contributions ($M) $1.21 $2.08 $1.92 $2.34 $1.44 $0.40 $1.08 $1.05 $1.49 $0.63 1H15 2H15 1H16 2H16 1H17 5
Slide 8: A leading producer of magnesium alloys
Magontec Limited – a leading producer of magnesium alloys Magnesium alloy is sold to die-cast manufacturers who make sophisticated products For personal use only Raw Production of Die-cast material Inputs Mg alloy ingots manufacturer (customer) Pure Scrap 40-70% Recycled End user industries Automoti
Slide 9: Five recycling and manufacturing facilities in China, Germany and Romania
Magontec has five recycling and manufacturing facilities in China, Germany and Romania Production For personal use only Sales Office Bottrop Santana Shanxi Toronto Golmud Tokyo Technology Centre Rhode Is Xi’an Cast House Project Sydney Melbourne Headquarters 7
Slide 10: Qinghai electrolytic magnesium smelter complex (Golmud) Magontec Qinghai
Qinghai electrolytic magnesium smelter complex (Golmud) Magontec Qinghai MGL operates a new For personal use only magnesium alloy cast Dehydration Reduction Cast house house at Golmud in Qinghai Province PRC Agreements Supply of 56,000 mtpa Exclusive Mg alloy rights Fixed off-take price metrics Leas
Slide 11: Qinghai will triple production and make Magontec the world's largest supplier of electrolytic Mg alloy
Magontec Qinghai will triple production and make Magontec the world’s largest supplier of electrolytic Mg alloy For personal use only ~10% Mg alloy market share 2015 Target > 20% Mg alloy market share Largely high CO2 Largely high CO2 “Pidgeon process” “Pidgeon process” 9
Slide 12: Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* For personal use only 45 Future Present Past 40 Qinghai 35 Kg CO2eq / kg Mg incl. credits for incl. use 30 Use of waste gas of SF6 25 incl. credits for by-products 20 15 incl. credits for by-products 10 5 0 Golmud 2017 Israel 2011 China 2011
Slide 13: Corporate transformation creates an exceptional platform for growth
Magontec’s corporate transformation creates an exceptional platform for growth For personal use only Improving Primary Mg alloy “Green” Profit ASX Listed financial production magnesium “inflexion” point Capitalisation fundamentals volumes to triple $45m 11
Slide 14: Magontec Limited contact details
Magontec Limited For personal use only MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road, Suite 1.03 46a Macleay St 46240 Bottrop Xian Economic and Potts Point Sydney NSW Germany Development Zone AUSTRALIA 2011 Xian, China, 710021 Tel +61
Slide 15: First Half 2017 - Interim Result
For personal use only Magontec Limited (ASX: MGL) First Half 2017 - Interim Result August 2017