Aurubis Ag · XETR:NDA
Aurubis — Investor Day (September 2018)
35 slides from Aurubis's investor day presentation, Sep 4, 2018
Slide 1: Capital Market Day 2018 Aurubis Bulgaria
Capital Market Day 2018 Aurubis Bulgaria Tim Kurth Executive Director and Vice President of Aurubis Bulgaria September 4, 2018 Sofia, Bulgaria
Slide 2: Agenda
Agenda 1. Aurubis Bulgaria 2. The plant 3. Production 4. Best practices 5. Investment 6. External relations
Slide 3: Aurubis Bulgaria at a glance
Aurubis Bulgaria at a glance » Pirdop plant established in 1958 » Four main production units today: Smelter, Tankhouse, Flotation, » Over € 600 M investment since 1997 Acid Plant » 860 direct employees » 2,500+ indirect jobs via subcontractors » Biggest copper producer in » Largest user of Bulgarian
Slide 4: Role for Bulgarian economy
Role for Bulgarian economy € 2.4 billion export sales for 2017 9 % of Bulgaria’s total exports € 1.8 billion import of concentrates for 2017 6 % of Bulgaria’s total imports The biggest corporate taxpayer in Bulgaria
Slide 5: 60 years of history
60 years of history Norddeutsche Affinerie Norddeutsche acquires Umicore’s copper Affinerie becomes Copper concentrates Sulfuric acid New Smelter business Cumerio Aurubis storage, Burgas Port storage, Burgas Port 1987 2008 2009 2017 2018 1958 1997 2008 2010 2017 Establishment of Privatization of New
Slide 6: Agenda
Agenda 1. Aurubis Bulgaria 2. The plant 3. Production 4. Best practices 5. Investment 6. External relations
Slide 7: Plant site
Plant site Sludge landfill Fayalite landfill Remediated sludge landfill Oxygen plant Acid plant Slag cooling R&D Smelter Flotation plant Water Tankhouse treatment plant Remediated land Rainwater treatment plant Located 80 km east of Sofia in the region of Srednogorie 4.2 km2 plant area next to towns
Slide 8: Production process
Production process Sulfuric Acid Plant Off-gas treatment Copper Blister matte copper Blending Drying 64% CU 98 % Cu Converter Anode Flash smelter furnace Slag Copper concentrates Copper scrap Slag concentrate Flotation Plant Copper 99.5 % Anodes Cathodes Anode casting Tankhouse Anode wheel slime
Slide 9: Production units: Smelter
Production units Smelter » Throughput capacity 1,470,000 t concentrates annually » Two steam dryers » Flash smelting furnace and waste heat boiler » Peirce-Smith converters » Two anode furnaces » Casting wheel with 24 molds » Anode production above 400,000 t annually
Slide 10: Production units: Tankhouse
Production units Tankhouse » New Refinery launched in 2008 » Design capacity of 180,000 t cathodes annually » ISA 2000 technology, Australia » Automated machinery (Outotec, Kuenz) » Two circulations » Three Bleed treatment installations » Current capacity 230,000 t cathodes annually
Slide 11: Production units: Flotation Plant
Production units Flotation Plant » 900,000 t annual capacity reached after 2009-2010 expansion project fulfillment » Automated system » Slag: reception, cooling, excavation » Crushing, milling, and classification » Flotation: main, cleaning, control » Production output » Copper concentrate, 20-27 %
Slide 12: Production units: Acid Plant
Production units Acid Plant » Design capacity of 1,600,000 t sulfuric acid annually » Two production lines: » Acid line 1: 60.71 t / hour, source SO2: 12.5 % » Acid line 2: 78.17 t / hour, source SO2: 17.1 % » Processes » Gas mixture cleaning, cooling, drying » Catalyst oxidation: SO2 > SO3 » SO3 ab
Slide 13: Agenda
Agenda 1. Aurubis Bulgaria 2. The plant 3. Production 4. Best practices 5. Investment 6. External relations
Slide 14: Production in last two years
Production in last two years FY 2016/17 FY 2015/16* Concentrate processing 1,323,600 t 1,037,100 t Cathode output 229,700 t 214,300 t Sulfuric acid output 1,370,200 t 1,048,700 t (*) Figures with 54-day shutdown
Slide 15: Input: Copper concentrates
Input Copper concentrates » Processed concentrates, 2017: » Import: 1,018,000 t, 75 % » Local: 339,000 t, 25 % (Elatsite, Asarel) » Base load grade: Cu range 15-25 % Processed concentrates, 1986-2017 trend (in 1,000 t) Privatization Aurubis 1,357 1.400 1,228 928 1.000 789 533 600 356 216 279 200 198
Slide 16: Output: Cathode copper
Output Cathode copper » Markets, 2017: » Turkey: 25 % » Western Europe: 19 % » South Eastern Europe: 9% » Rest of the World: 47 % Cathode production, 1986-2017 trend (in 1,000 t) 240 New Aurubis 226 229 Tankhouse 160 127 80 62 56 65 29 31 34 46 18 0 1986 1991 1996 2001 2006 2011 2016
Slide 17: Production units: Sulfuric acid
Production units Sulfuric acid » Clients by branches, 2017: » Markets, 2017: » Fertilizers: 62 % » Turkey: 35 % » Chemicals: 17 % » Bulgaria: 30 % » Metals: 21 % » Morocco: 16 % » Serbia: 14 % » Other: 5% Acid production, 1986-2017 trend (in 1,000 t) Aurubis 1500 1,395 1,234 932 1000 803 494 500 394
Slide 18: Agenda
Agenda 1. Aurubis Bulgaria 2. The plant 3. Production 4. Best practices 5. Investment 6. External relations
Slide 19: Safety – Vision Zero
Safety – Vision Zero Lost Time Injury Frequency Rate (LTIFR) for fiscal year 16.3 » Lost Time Injury Frequency Rate Annual target is part of managers’ and employees’ performance » Leading KPIs for the annual 11.5 managers’ targets › % of closed corrective actions on 9.3 time 8.3 › Number of health &
Slide 20: Safety
Safety Health and Safety System – main pillars: Third-party management » Monthly Executive Director’s Safety Walk-Around » Aurubis Site Rules are included in every tender » Aurubis Bulgaria Safety Council documentation » PPE and Working Clothes Committee » Monthly H&S meeting with the contractors »
Slide 21: Environmental performance
Environmental performance SO2 emissions of copper plants (kg SO2 / t of copper) SO2 emissions of Pirdop plant (kg SO2 / t of copper) 800 12 11 10 10 700 Hamburg site 4 8 8 7 7 600 Pirdop site 5 6 6 6 5 500 Copper smelters: 4 - European avg. 79 400 - International avg. 99 0 300 2008 2009 2010 2011 20
Slide 22: Human capital management
Human capital management Strategic Talent & Succession Workforce Planning Management » Apprenticeship Program » Staffing/succession for key functions » Dual Education Program » Providing management with visibility with a regional vocational on optimal resource allocation school » Streamlined perform
Slide 23: Research & development
Research & development Aurubis Bulgaria R&D integrated within Aurubis Group R&D Two teams of highly qualified researchers » Development of new processes and products » Materials characterization » New methods development, prediction models » Technology testing » Improvement and optimization Daily Ir
Slide 24: AOS targets
AOS targets AOS relation to Aurubis Bulgaria vision » Stabilize throughput and establish new standard in operation » Step by step: introduction of common systematic approach on keeping track of events happening in operation/maintenance efficiency » Promote team playing/ownership, Production & Mainte
Slide 25: Agenda
Agenda 1. Aurubis Bulgaria 2. The plant 3. Production 4. Best practices 5. Investment 6. External relations
Slide 26: Direct investment
Direct investment € 303 million direct investment after the acquisition (2008 - mid-2018) Spectrum 2018 € 180 million investment program » € 75 million in sustainable operations and control » € 55 million in ensuring competiveness » € 26 million in improvement of supply chain logistics » € 20 millio
Slide 27: Recent projects: 2016 Shutdown
Recent projects 2016 Shutdown » 11 production facilities completely changed » Fulfilled in 54 days, ahead of schedule » Zero incidents » The company kept leading market position despite the shutdown Improvements after 2016 Shutdown » Smooth functioning of the main units for the following 10 years »
Slide 28: Recent projects: Burgas Port storage facilities
Recent projects Copper concentrate storage facility at Burgas Port, 2017 » Ship discharge, storage, and transport to the plant » € 13 million indirect investment » 65,000 t design capacity » Covered area minimizing losses and environmental impact Acid storage facility at Burgas Port, 2018 » Temporar
Slide 29: Additional investments during planned shutdown in 2019
Additional investments at the Pirdop site in the course of a legally mandated planned shutdown in May/June 2019 Financial impact: » Capex: approx. € 19 million (FY 17/18: approx. € 11 million, FY 18/19: approx. € 8 million) » EBT effect: approx. € 11-12 million » Concentrate throughput effect: appro
Slide 30: Agenda
Agenda 1. Aurubis Bulgaria 2. The plant 3. Production 4. Best practices 5. Investment 6. External relations
Slide 31: Government relations
Government relations Key political visits to Aurubis Bulgaria plant 2008 President Georgi Parvanov: new Refinery 2010 PM Boyko Borissov: Slag Flotation Plant extension 2011 PM Boyko Borissov, Deputy PM Simeon Djankov: Aurubis Bulgaria 2014 investment program 2014 Economy Minister Bozhidar Lukarski:
Slide 32: Social projects
Social projects € 5 million + National level focus on Partnership with invested in social projects education, knowledge, national cultural in Srednogorie region and innovation projects institutions » Support of schools and kindergartens » Development of young talents » Renovation of community center
Slide 33: Thank you!
Thank you! AAurubis
Slide 34: Your IR Contacts and financial calendar
Your IR Contacts: Angela Seidler Elke Brinkmann Christoph Tesch Head of Investor Relations Senior Manager Senior Manager +49 40 7883-3178 +49 40 7883-2379 +49 40 7883-2378 a.seidler@aurubis.com e.brinkmann@aurubis.com c.tesch@aurubis.com Financial calendar » Annual Report 2017/18 12/11/2018 » Quarte
Slide 35: Disclaimer
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 risks and