Slide 1: Magontec Limited 2017 Full Year Results
Magontec Limited (ASX: MGL) 2017 Full Year Results 28 February 2018
Slide 2: Disclaimer
Disclaimer 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 Presentation contains
Slide 3: Magontec Limited – 2017 Full Year Results
Magontec Limited – 2017 Full Year Results Production commenced at Magontec Qinghai in 2017 Key drivers of result - Gross profit (down $1.9m on pcp) - Significant items (-$1.1m pre tax) $2.3m positive underlying operating cash flow in 2017, down on prior period Increased banking facility with Commerz
Slide 4: FY Result: Underlying NPAT
FY 2017 Full Year Result Underlying NPAT* down on prior year due to Romanian labour issues and some significant items Underlying Net Profit after Tax ($m) 1,118 (248) Includes $0.9m of significant items (1,177) (pre tax $1.1m) (1,997) 2014 2015 2016 2017 * Excluding effects of unrealised foreign exc
Slide 5: Reconciliation of significant items in earnings
FY 2017 Full Year Result Reconciliation of significant items in earnings Reconciliation of significant items in earnings 12 months to 12 months to 2017 earnings reduced by $1.1m of 31-Dec-17 31-Dec-16 pre-tax significant items '$000 '$000 Net Profit Before Tax, unrealised FX and significant items 68
Slide 6: FY Result – Gross Profit
FY 2017 Full Year Result – Gross Profit Romanian recycling and Chinese anodes dragged on overall performance Gross profit ($m) and Gross margin (%) 11.3% 9.3% 9.6% 6.4% $ 8.5 m $ 12.9 m $ 14.4 m $ 12.5 m 2014 2015 2016 2017 Gross profit ($m) Gross margin (%)
Slide 7: FY Result – Cash Flow
FY 2017 Full Year Result – Cash Flow Underlying operating cash flow positive, down on prior year Underlying operating cashflow ($m) $ 4.9 m $ 3.5 m $ 2.3 m $ 0.7 m 2014 2015 2016 2017 Underlying operating cashflow ($m)
Slide 8: FY Result - EBITDA and EBIT
FY 2017 Full Year Result - EBITDA and EBIT Impacted by operational issues and significant items EBITDA ($m) and EBIT ($m) $ 4.3 m $ 3.3 m $ 2.5 m $ 1.6 m $ 1.8 m $ 1.5 m $ 0.1 m ($0.3 m) 2014 2015 2016 2017 EBITDA EBIT
Slide 9: Magontec Limited – a leading producer of magnesium alloys
Magontec Limited – a leading producer of magnesium alloys Magnesium alloy is sold to die-cast manufacturers, largely into the automotive industry Manufacturing processes Assembly Magontec OEM & Tier 1 Pure Mg + Alloying Mg Alloy Mg alloy End user Elements Ingots Die casting Magontec develops, manufa
Slide 10: Magontec has five recycling and manufacturing facilities
Magontec has five recycling and manufacturing facilities in China, Germany and Romania Production and a global sales distribution network Sales Office Bottrop Santana Shanxi Toronto Golmud Tokyo Technology Centre Rhode Island Xi’an Cast House Project Sydney Melbourne Headquarters
Slide 11: Qinghai electrolytic magnesium smelter complex (Golmud)
Qinghai electrolytic magnesium smelter complex (Golmud) Magontec Qinghai Magontec operates a new Dehydration Reduction Cast house magnesium alloy cast house at Golmud in Qinghai Province, China Agreements Supply of 56,000 mtpa Exclusive Mg alloy rights Fixed off-take price metrics Lease (10+10 years
Slide 12: Qinghai will triple production
Magontec Qinghai will triple production and make Magontec the world’s largest supplier of electrolytic Mg alloy ~10% Mg alloy market share 2015 Target > 20% Mg alloy market share Largely high CO2 Largely high CO2 “Pidgeon process” “Pidgeon process”
Slide 13: Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* Chart shows Kilograms of CO2 emissions per Kilogram of Magnesium produced Future Present Past 45 40 Qinghai 35 Kg CO2eq / kg Mg incl. credits for incl. use 30 use of waste gas of SF6 25 incl. credits for Qinghai by-products 20 15 incl. credi
Slide 14: Magontec's corporate transformation
Magontec’s corporate transformation An exceptional platform for growth Target improving Primary Mg alloy “Green” Profit ASX Listed operating outlook production volumes magnesium “inflexion” point Capitalisation to triple $40m
Slide 15: Magontec Limited
Magontec Limited 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 2 8005 4109 Tel +49 (0