Slide 1: Welcome to the Aurubis Capital Market Day 2016
Welcome to the Aurubis Capital Market Day 2016 September 30, 2016 1
Slide 2: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 3: Aurubis: an integrated copper producer
Aurubis’ strengths include productivity, efficiency, environmental protection and processing expertise Aurubis: an integrated copper producer Raw materials BU Primary Copper Processors and end users » Cathodes » Sulphuric acid Concentrate s » Precious metals » Tramp metals Blister Scrap no. 1 BU Cop
Slide 4: Aurubis has developed into a leading international copper producer over the past 150 years
Aurubis has developed into a leading international copper producer over the past 150 years Aurubis Capital Market Day 2016 4
Slide 5: Aurubis is a world leader in the copper value chain
Aurubis is a world leader in the copper value chain FY 2014/15 Position Concentrate processing 2,294,000 t No. 2 worldwide FY 2014/15 Copper scrap processing 294,000 t No. 1 worldwide Sulphuric acid 2,200,000 t production Cathode production 1,138,000 t No. 3 worldwide Gold 45 t production Rod produc
Slide 6: Aurubis' strong market positions in key segments of the copper industry chain
Aurubis’ strong market positions in key segments of the copper industry chain Mines and Processors and Copper production Copper processing recycling markets end users » TC/RCs, treatment and refining charges » Surcharges » Cost position » Cost position » Metal recovery » Quality » Complex raw materi
Slide 7: Strong Group KPIs at Aurubis
Strong Group KPIs at Aurubis Operating EBT and ROCE development Operating EBT (in € million) 341 343 292 296 251 159 137 103 114 32 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 ROCE 16.8% 26.2% 21.7% -1.9% 25.5% 23.9% 20.5% 7.0% 8.5% 18.7 % Aurubis Capital Market Day 2016 7
Slide 8: Major trends that are important for Aurubis' business
Major trends that are important for Aurubis’ business Implications Rising Copper Demand Global expansion of copper Global refined copper demand will increase, production capacity underway compensating for substitution effects Multipolar Business World Demand for global delivery and Emerging countrie
Slide 9: The Copper Universe
The Copper Universe Flow of stocks Mines/concentrates Investor Smelters activities Demand Macro Scrap economy/ currencies Aurubis Capital Market Day 2016 9
Slide 10: Sustainability is a fundamental component of the Aurubis strategy
Sustainability is a fundamental component of the Aurubis strategy - Economic stability - Innovation » We put the highest possible effort into 1. Environmental protection 2. Occupational safety 3. Responsible use of primary and secondary material » We have been committed to the internationally recogn
Slide 11: Safety is fundamental to our business
Safety is fundamental to our business LTIFR(1-n): Lost Time Injury Frequency Rate (Incidents/accidents with loss of time of one complete shift or more, per million h worked) 23.7 18.1 17.1 13.3 11.7 9.1 7.8 6.3 FY FY FY FY FY FY FY FY 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Aurubis Capital M
Slide 12: The target must be a far-reaching, closed value chain and increasing sustainability
The target must be a far-reaching, closed value chain and increasing sustainability Aurubis copper production Aurubis copper processing/copper products Primary copper The EU Commission’s concentrate 1st fabrication “Circular Economy Package” step from December 2015 Scrap collection (from production)
Slide 13: We will determine our own way forward
We will determine our own way forward Open for new External growth growth options opportunities Utilization of Internal growth growth options opportunities Excellence in recycling Strengthening of existing business Technological leadership in metal production Continuous improvement Aurubis Capital M
Slide 14: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 15: The changes in the external environment have been profound in the last 15 years
The changes in the external environment have been profound in the last 15 years › Sustainability requirements › Transparency requirements of the supply chain › Reporting requirements › Major changes in Regulation competition landscape and trade flows › Increasing impurities Market players › Increasi
Slide 16: Aurubis has developed into a global organization leveraging synergies between the plants
Aurubis has developed into a global organization leveraging synergies between the plants Today 15 years ago 9 major production sites in 6 countries 4 different non- 4 smelters integrated companies 4 tankhouses Simple or limited flows Increase of flows between sites between production sites and furth
Slide 17: Aurubis' supply chain has been successfully facing the past challenges and is ready for the future
Aurubis’ supply chain has been successfully facing the past challenges and is ready for the future › Raw materials will continue to » The increasing complexity of raw become more complex materials combined with stricter regulation is an opportunity for Aurubis. › Our drive towards managing complexit
Slide 18: The SCM tactics derived from our strategy are the basis for our actions
The SCM tactics derived from our strategy are the basis for our actions and development MANAGE SOLUTIONS Optimize margin end-to-end and optimize NWC Key competences: production planning, metallurgical know-how, advanced process decision-making OFFER SOLUTIONS Proactively market our solutions Key com
Slide 19: The general conditions of our SCM have been checked and adjusted
The general conditions of our SCM have been checked and adjusted PROCESSES culture STRUCTURE SYSTEMS KPIs Aurubis Capital Market Day 2016 19
Slide 20: The tactics derived from our SCM strategy are the basis for our actions
The tactics derived from our SCM strategy are the basis for our actions and development MANAGE SOLUTIONS Optimize margin end-to-end and optimize NWC Key competences: production planning, metallurgical know-how, advanced process decision-making OFFER SOLUTIONS Proactively market our solutions Key com
Slide 21: Managing our current portfolio of raw materials
Managing our current portfolio of raw materials: Continuous optimization of the input mix and of the flow chart » Managing our flow charts in an optimal value-based way means maximizing the use of our capacities AND capabilities » Key objective in purchasing is to maximize our delta to benchmark ter
Slide 22: Project SCOPE helps to manage complexity in Production Portfolio Planning
Our project SCOPE (Supply Chain Optimization and Excellence) helps to manage complexity in Production Portfolio Planning with analytical tools Complexity in Production Portfolio Planning (Example: primary copper production) Mines Recycling centers Transport Production process Products Inherent high
Slide 23: The tactics derived from our SCM strategy are the basis for our actions
The tactics derived from our SCM strategy are the basis for our actions and development MANAGE SOLUTIONS Optimize margin end-to-end and optimize NWC Key competences: production planning, metallurgical know-how, advanced process decision-making OFFER SOLUTIONS Proactively market our solutions Key com
Slide 24: Offering our solutions and our capacities
Offering our solutions and our capacities Our purchasing markets are segmented in 2 types of raw materials: 1. Typical supplier-customer relationship for commodity material/volume-driven » Driven by our processing capacities » Mostly driven by the market 2. Solution provider for non-commodity or mor
Slide 25: The tactics derived from our SCM strategy are the basis for our actions
The tactics derived from our SCM strategy are the basis for our actions and development MANAGE SOLUTIONS Optimize margin end-to-end and optimize NWC Key competences: production planning, metallurgical know-how, advanced process decision-making OFFER SOLUTIONS Proactively market our solutions Key com
Slide 26: Developing new solutions and the optimal capacities
Developing new solutions and the optimal capacities Maintaining our competitive advantages in terms of capabilities is key to sustaining the success of Aurubis, which means: » Being able to be the first mover developing solutions for the mining and industrial applications’ recycling challenges in th
Slide 27: The CESL Cu-As technology – sustainable processing of high-As copper concentrate
Example of developed solution: The CESL Cu-As technology – sustainable processing of high-As copper concentrate » Since 2010, Aurubis and Teck have jointly developed a technology to sustainably process copper concentrate with very high arsenic content, which could not be fed into smelters » In a hyd
Slide 28: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 29: Aurubis Bulgaria – main facts
Aurubis Bulgaria – main facts Smelter Refinery Acid plant Flotation plant Key figures 2014/15 Total investments Location Pirdop € 235 million (Jan 2008 – June 2016) Number of employees 824 Part of Aurubis Group since 2008 Concentrate throughput 1,190,000 t Share in the Bulgarian economy Scrap throug
Slide 30: Additional improvements in environmental protection are planned at the Pirdop site
On top of excellent standards, additional improvements in environmental protection are planned at the Pirdop site SO2 emissions of primary copper smelters » About € 160 million has been invested in (in kg SO2 per t of copper output) environmental protection measures since 2000 600 » Capital expendit
Slide 31: Large-scale shutdown completed within budget
Large-scale shutdown completed within budget Plan Actual Total budget (€ mill.) 43.8 43.7 Duration (days) 50 54 EBIT impact 25 29 » Largest renovation project for the plant: replacement and overhaul of 11 units » 52 companies and 1,200 workers involved » No accidents: strict safety measures with pro
Slide 32: Positive impact of the shutdown on operations
Positive impact of the shutdown on operations » Repair and replacement of main aggregates (last shutdown in 2007) » Environmental measures in waste heat boiler and acid plant; launch of off-gas treatment plant » Capacity optimization leading to a 170,000 t increase in concentrate throughput p.a. Aur
Slide 33: Comprehensive work program at smelter and acid plant fully implemented
Comprehensive work program at smelter and acid plant fully implemented » Complete re-bricking of the flash smelting furnace and anode furnaces » Replacement/extension in the following sections of the smelter and acid plant: › Dryer section (dryers, water head tank, dry concentrate bin) › Replacement
Slide 34: Shutdown and Fit for Future project (FFF)
Shutdown and Fit for Future project (FFF) – Scheduled activities related to the future capacity optimization » Modification of foundations for two of the converters in relation to the removable converter project: capacity optimization with 170,000 t p.a. of concentrate reaching 1.47 million t p.a. »
Slide 35: Pirdop benefited from the Hamburg shutdown experience
Pirdop benefited from the Hamburg shutdown experience in 2013 by the exchange of know-how within the Group » Extensive know-how sharing on shutdown activities » Result is improved processes in: › Managing subcontractors’ post-project claims › Faster demolition work and scaffolding › Better budget co
Slide 36: Improved perspectives for Aurubis Bulgaria
Improved perspectives for Aurubis Bulgaria: increased throughput capacities at even better environmental standards » FFF project – maximizing capacity to 1.47 million t p.a.: the leading European smelter in concentrate throughout » Ability to process more complex concentrates: » Improved fluorine ca
Slide 37: Improved perspectives for Aurubis Bulgaria (cont.)
Improved perspectives for Aurubis Bulgaria: increased throughput capabilities at even better environmental standards (cont.) » Consolidation of logistics activities in the port of Bourgas » Improved concentrate intake facilities » Lower Cu losses (positive EBIT and environmental impact) Capacity usa
Slide 38: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 39: Aurubis is the second largest buyer of custom concentrates worldwide
Aurubis is the second largest buyer of custom concentrates worldwide (7.9 % market share) Copper production from custom Cu concentrates (2015; per 1,000 t Cu content*) Tongling (CN) 706 Aurubis Aurubis 631 Glencore Xstrata (CH) 585 Jiangxi Copper Co. (CN) 514 JX Holdings (JP) 479 Sumitomo Metal Mini
Slide 40: The global copper supply/demand balance is in favor of smelters in the short term
The global copper supply/demand balance is in favor of smelters in the short term Copper production from mining and Refined copper consumption forecast secondary materials (Cu in concentrate & leach, in kt) (Cu in concentrate & leach, in kt) 40000 40000 35000 35000 30000 30000 25000 25000 20000 2000
Slide 41: Additional projects will start up production before 2025
Additional projects will start up production before 2025 and replenish the supply pipeline Size of deposits Copper price (in million t of copper content) (in US$/t – 3-month quotation) 90 10000 80 9000 70 8000 60 7000 Oyu Tolgoi 50 Collahuasi (CL) (MN) 6000 40 5000 Los Pelambres Andina Expansion (CL
Slide 42: The risks of closure posed by a low copper price have been decreasing lately
The risks of closure posed by a low copper price have been decreasing lately Global copper mine cash cost (2016) 380 360 Ø 2016: 125.1 US cts/lb Cu 340 C1 mine cash costs (US cts/lb Cu) 320 300 280 260 240 220 200 180 160 140 2016 120 Ø 125 100 80 60 40 20 0 -20 5,000 10,000 15,000 20,000 25,000 30,
Slide 43: The increase in copper concentrate supply has been driven by custom mines
The increase in copper concentrate supply has been driven by custom mines in which Aurubis is a player Copper concentrate allocation forecast (paid Cu – in million t) 20 15 10 5 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Custom Part integrated Integrated SxEw Forecasts include bas
Slide 44: The increase in Cu production from secondary materials in China is a positive trend
The increase in Cu production from secondary materials in China is a positive trend for European producers Global copper refinery production (in kt Cu including production from scrap) 30,000 25,000 RoW 20,000 Europe North America 15,000 Other Asia China 10,000 5,000 0 2010 2011 2012 2013 2014 2015 2
Slide 45: Aurubis treats more than 730 kt of recycling materials p.a.
Aurubis treats more than 730 kt of all kinds of recycling materials p.a. Fehrbellin › Cable scrap Hamburg Lünen › Copper scrap › Copper scrap › Intermediates › Alloy scrap › E-scrap › Shredder materials › Others › Industrial residues › E-scrap Olen › Copper-iron material › Copper scrap › Others Pird
Slide 46: Global copper scrap market will increase over the next decades
Global copper scrap market will increase over the next decades (in mill. t) Overall theoretical recycling potential in 2010-2020 of ~50 mill. t of copper content Overall theoretical recycling potential in 2020-2030 of ~70 mill. t of copper content Average lifetime of all copper products is estimated
Slide 47: Copper scrap will increase; however, quality of copper scrap will change
Overall, copper scrap will increase; however, “quality” of copper scrap will change CU content Scrap category Life cycle No2 Shredder WEEE 1950 low 60-80 years 2015 high* -> Trend for substitution CU content Scrap category Life cycle No2 Shredder WEEE 1990 ~9 kg/car 10-15 years 2015 ~ 25 kg/car CU c
Slide 48: Complexity of recycling will increase over the next decades
Complexity of recycling will increase over the next decades E-scrap a complex mix of Ag Au Pt Pd » Complex material, especially EOL electronics (end of life), Cu Ni Sn Al combines values from different metals and/or other materials Fe Pb Sb Bi » Decreasing copper content (miniaturization and new In
Slide 49: Aurubis already processes a variety of complex recycling materials
Aurubis already processes a variety of different and also complex recycling materials Raw Material Processing Products Copper Copper cathode scrap Grade A Residues Nickel-sulfate Shredder materials SnPb alloy Printed circuit boards Precious metals Copper-iron KRS Oxide Slimes Ferro-silicate E-scrap
Slide 50: Closing the loop is necessary but will not replace primary copper
Closing the loop is necessary and actively pursued by Aurubis but will not replace the need for Cu from primary material in the near future Aurubis copper and multi-metal recovery Aurubis copper products Copper concentrate (primary) 2nd manufacturer level Scrap from production (partly direct melt) 1
Slide 51: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 52: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 53: Aurubis: an integrated copper producer
Aurubis: an integrated copper producer Raw materials BU Primary Copper Processors and end users » Cathodes » Sulphuric acid Concentrate s » Precious metals » Tramp metals Blister Scrap no. 1 BU Copper Products » Cathodes Copper » Wire rod scrap » Shapes » Flat rolled products E-scrap » Specialty pro
Slide 54: Aurubis among the leading copper cathode producers
Aurubis among the leading copper cathode producers International cathode production (in 1,000 t) Codelco (CL) 1,450 Freeport McMoran (US) 1,208 Aurubis Aurubis 1,138 Jiangxi (CN) 1,094 Glencore Xstrata (CH) 1,032 Tongling (CN) 1,008 Southern Copper (PE) 729 JX Holdings (JP) 677 Sumitomo (JP) 639 BHP
Slide 55: Our key missions as Business Line Marketing Cathodes
Our key missions as Business Line Marketing Cathodes » Aurubis produces approx. 1.14 million t of cathodes in 4 refineries in 3 European countries: » Germany (Hamburg, Lünen); » Belgium (Olen); » Bulgaria (Pirdop) » We buy external cathodes globally » We sell to internal and external customers: » In
Slide 56: Aurubis is in the middle of key cathode consumption areas
Aurubis is in the middle of key cathode consumption areas • Copper demand by regions 2016 (in million t) • Copper surplus / deficit 2016 +0.5 -1.0 0.4 -0.4 2.2 3.7 -2.1 -0.5 0.7 14.1 +2.8 +1.0 0.5 +0.5 0.3 0.1 Source: CRU April 2016 Aurubis Capital Market Day 2016 56
Slide 57: Regional premium arbitrages and logistics costs drive our sales strategies
Regional premium arbitrages and logistics costs drive our sales strategies Aurubis cathodes currently have 5 main sales regions » Western Europe » Southeastern Europe » Turkey » MENA » Asia Aurubis Capital Market Day 2016 57
Slide 58: Adverse premiums and low logistics costs in China support premium optimization
Adverse premiums and low logistics costs in China support premium optimization for Aurubis cathode sales Qingdao US$ / m.t. Shanghai 200 Shanghai Benchmark 180 Rotterdam 160 European Benchmark 140 120 100 80 60 40 20 0 Source: Wood Mackenzie Aurubis Capital Market Day 2016 58
Slide 59: China remains a big importer of refined copper
China remains a big importer of refined copper Chinese refined copper supply / demand (in 1,000 t) "Import gap" 10.7 10.9 10.4 10.5 10.0 10.2 Refined production 9.7 Net refined consumption * 9.0 2.2 2.2 2.3 2.4 8.2 2.5 2.7 7.8 2.7 7.3 2.7 6.5 2.6 2.8 2.8 5.1 2.3 1.3 8.4 8.5 8.6 7.7 8.0 7.0 7.3 6.3 5
Slide 60: Significant import deficit remains in Europe and Asia in 2020
Significant import deficit remains in Europe and Asia in 2020 • Copper demand by regions 2020 (in million t) • Copper surplus / deficit 2020 +0.5 0.4 -1.3 -0.6 2.4 4.0 -2.5 -0.5 0.8 15.2 +2.6 +1.5 0.6 +0.5 0.3 0.1 Total demand 2020: 23.7 million t Global output 2020: 23.2 million t* (* adjusted: inc
Slide 61: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 62: Aurubis is no. 1 worldwide in Rod production and no. 1 in Europe for Shapes
Aurubis is no. 1 worldwide in Rod production and no. 1 in Europe for Shapes Rod production (in 1,000 t) 785 742 764 646 608 10/11 11/12 12/13 13/14 14/15 Shapes production (in 1,000 t) 197 183 164 170 149 10/11 11/12 12/13 13/14 14/15 Aurubis Capital Market Day 2016 62
Slide 63: European demand for copper semis is expected to continue to rise
European demand for copper semis is expected to continue to rise European demand for copper semis (in 1,000 t) 3500 553 566 537 545 3000 490 520 530 Rest Europe 284 282 282 283 283 Poland 2500 273 279 270 259 264 245 253 257 200 Belgium 238 196 197 195 196 2000 200 193 285 291 299 France 268 283 286
Slide 64: Most copper applications start with wire rod
Most copper applications start with wire rod Cable, magnet wire and automotive are the main application sectors Aurubis Capital Market Day 2016 64
Slide 65: AURUBIS ROD is renowned for its capabilities, environmental standards and product development
AURUBIS ROD is renowned for its capabilities, environmental standards and product development Capabilities Environment » Flexibility due to size – » Latest filter technologies 4 wire rod plants in Europe installed to clean the shaft » Customer focus – furnace off-gases 360° support » Closed environm
Slide 66: Key facts about AURUBIS ROD (2015)
Key facts about AURUBIS ROD (2015) market shares Industry split Volume by customer group Deliveries by region Middle Medium-sized Small customers customers Africa East Rest Magnet wire Automotive 13% 17% 4% 5% 6% 24% 16% Spot business 2% Energy cable Key customers Total Europe 60% 69% 85% AURUBIS RO
Slide 67: Copper cakes for rolled products and piece parts
Copper cakes for rolled products and piece parts Different copper grades as well as individual geometries are crucial Aurubis Capital Market Day 2016 67
Slide 68: Copper billets for tubes, forgings and sections
Copper billets for tubes, forgings and sections Aurubis has focused early on specialties for industrial applications Aurubis Capital Market Day 2016 68
Slide 69: AURUBIS SHAPES is quality leader and renowned for tailor-made high-performance alloys
AURUBIS SHAPES is quality leader and renowned for tailor-made high-performance alloys Capabilities Environment » Flexibility and reliability » Latest filter technologies » Highest piece weights and installed to clean the shaft quality standards for both furnace off-gases billets and cakes » Closed d
Slide 70: Key facts about AURUBIS SHAPES (2015)
Key facts about AURUBIS SHAPES (2015) Industry split Volume by customer group Deliveries by region Small Automotive Rest of customers Spot 4% Construction Italy the world Medium-sized 6% business Telecomm. 4% 3% 5% 5% 13% customers 3% Germany 90% Industry, mech. engineering, Electronics/ Key custome
Slide 71: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 72: Customer industries require approximately 4.7 million tons of flat rolled products per year
Customer industries require approximately 4.7 million tons of flat rolled products per year World demand 2015 (Flat Rolled Products in million t) Copper production Copper fabrication Applications / customer industries / end use Building & construction Cable Cathodes Cake 2.3 Electrical industry Copp
Slide 73: Business driven by electrical and thermal conductivity or by copper's appearance
Business driven by the need for electrical and thermal conductivity or by copper’s appearance Industry Applications Drivers Residential & commercial building Building & Roofing & façade systems Climate control investment construction GDP Cable Power cable RF and optical communication Infrastructure
Slide 74: Aurubis Flat Rolled Products serves more than 2,500 customers in all key market segments
Aurubis Flat Rolled Products serves more than 2,500 customers in all key market segments Segment distribution 2015 (volume-based) Other Distribution 18% 19% Cable 5% Electrical Building & industry constr. 8% 16% General engineering 9% Engine Automotive connectors cooling 11% 13% Source: CRU, Aurubis
Slide 75: Global market demand for flat rolled products continues to grow
Global market demand for flat rolled products continues to grow Global market size by region (in 1,000 t) 5000 4500 538 4000 791 3500 3000 Americas 1258 2500 EMEA 2000 Asia ex China 1500 China 1000 2095 500 0 2010 2011 2012 2013 2014 2015 Expected CAGR 2016-2020 around 2-2.5% Source: CRU, Aurubis es
Slide 76: Global presence with focus on Europe and North America
Global presence with focus on Europe and North America Buffalo, NY (US) Description Plant Slitting center Västerås (SE) Pori (FI) Sales office Cooperation partner Saint Petersburg (RU) Tinning Chicago, IL (US) Finspång (SE) Niagara Falls, NY (US) Electroplating line Hot-dip tinning line Hamburg (DE)
Slide 77: Aurubis Flat Rolled Products serves more than 2,500 customers around the world
Aurubis Flat Rolled Products serves more than 2,500 customers around the world Market share 2015 and regional distribution of sales (volume-based) South Asia America MEA5% 1% Global market share 4.4% 5% North America 22% Europe 11% North Asia <1% America 47% Europe 42% Stable position in home market
Slide 78: Aurubis is one of the leading rolled products producers worldwide
Aurubis is one of the leading rolled products producers worldwide Copper and copper alloy plate, sheet, strip & foil output from producers worldwide 2015 (in 1,000 t) Poongsan (KR) 215 » Only company with integrated production in both Europe and Aurubis Aurubis 206 North America Wieland (DE) 175 » O
Slide 79: Strong connections with other Aurubis Business Lines
Strong connections with other Aurubis Business Lines Flows on behalf of BL Flat Rolled Products, approximate values Cathodes sourced internally and externally Cast strip 206,000 t Pre-rolled rolled Aurubis Cake strip products Schwermetall Aurubis BL R&S Customers (50% JV) BL FRP Hamburg Own process
Slide 80: Aurubis has many competitive advantages in the flat rolled products markets
Aurubis has many competitive advantages in the flat rolled products markets Local & global Customer-focused » International production » Customer-specific product footprint development » Global sales and service » Logistics solutions network » Vendor-managed inventories » Own service centers » Just-
Slide 81: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 82: Continuous improvement is mandatory for Aurubis as a copper smelting and refining company
Continuous improvement is mandatory for Aurubis as a high-standard copper smelting and refining company Smelter revenues vs. cash cost » Standard TC/RCs are determined by global supply/ (in UScts/lb, 2015 $) demand balance for primary and secondary Weighted average of total smelter revenues material
Slide 83: Earnings Improvement Project: Sustainable increase in results in Hamburg and Lünen
Earnings Improvement Project: Sustainable increase in results by improving our business processes in Hamburg and Lünen Core Support Management » In times of adverse market conditions for functions functions functions concentrates, copper scrap and sulphuric acid, we have limited influence Aurubis AG
Slide 84: The improvement of earnings results from value stream management in three focus areas
The improvement of earnings results from value stream management in three focus areas Material management and economic control Purchasing primary and secondary material Procurement processes 30 % Material sampling and analysis Production Value stream Production KPI management Production pl
Slide 85: The improvement of earnings results from value stream management in three focus areas
The improvement of earnings results from value stream management in three focus areas Material management and Example Big economic control Reducing lead time for ticket Purchasing primary and secondary sampling and analysis for material specific high-value- Procurement processes bearing materi
Slide 86: Improvements in our operations management system are supporting sustainable implementation
Improvements in our operations management system are supporting the sustainable implementation of measures Main fields of action Occupational safety, order and cleanliness Workplace organization/material flow/layout Production planning and organization Structure/segmentation/standardization KPIs and
Slide 87: Earnings Improvement Project: Aurubis expects effects within the target range
Earnings Improvement Project: Aurubis expects effects within the target range Estimated result improvement » Estimated long-term result effects are fully within the target range EVP » Effects on Aurubis profit in current fiscal year target range also in line with expectations » Project effects to be
Slide 88: Aurubis Capital Market Day
Aurubis Capital Market Day Welcome Angela Seidler Keynote Jürgen Schachler Supply Strategy & SCM Christophe Koenig Pirdop Shutdown Ivailo Vatev Concentrate and Scrap Markets Christophe Koenig Sulphuric Acid Markets Peter Harrisson (CRU) Sales Market for Copper Somayeh Hakimi Stefan Gröner, Hans Rod/
Slide 89: Aurubis confirms earnings forecast for 2015/16
Aurubis confirms earnings forecast for 2015/16 We confirm our forecast for FY 2015/16 and expect both operating EBT and operating ROCE to be significantly lower compared to the previous year. Aurubis Capital Market Day 2016 89
Slide 90: Key internal Step Up projects
Key internal Step Up projects Earnings Improvement Project in Hamburg und Lünen Project Scope (Supply Chain OPtimization and Excellence) Project FCM (Future Complex Metallurgy) Project MSO (Metallurgical Slag Optimization) Aurubis Capital Market Day 2016 90
Slide 91: Aurubis – 150 Years of the Future.
Aurubis – 150 Years of the Future. Aurubis Capital Market Day 2016 91
Slide 92: Aurubis Capital Market Day 2016
Aurubis Capital Market Day 2016 September 30, 2016 92
Slide 93: IR contacts
IR contacts: Angela Seidler Dieter Birkholz Elke Brinkmann Head of Investor Relations Senior Manager Senior Manager +49 40 7883-3178 +49 40 7883-3969 +49 40 7883-2379 a.seidler@aurubis.com d.birkholz@aurubis.com e.brinkmann@aurubis.com Financial calendar » Annual Report 2015/16 December 14, 2016 » Q
Slide 94: 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