16 slides from Afarak Group Se Class A's shareholder meeting presentation, May 8, 2015
Slide 1: Annual General Meeting 2015: The Year in Review & Looking Forward
ANNUAL GENERAL MEETING 2015 The Year in Review & Looking forward Dr. Danko Koncar Chief Executive Officer AGM 08/05/15 1
Slide 2: Group Overview
GROUP OVERVIEW Afarak is a growing, integrated resource company producing chrome and supplying speciality products to the steel and stainless steel industries. The Company is listed on the NASDAQ Helsinki and the London Stock exchanges. NASDAQ Specialty Alloys Helsinki Turkey & Germany AFAGR Head Of
Slide 3: 2014 Highlights
2014 HIGHLIGHTS AFARAK remains committed on generating cash and increasing profits Sales volumes of processed material increased in both segments and growth in trading operations. The company achieved positive EBIT for the first time since entering the mineral business. The profit was positi
Slide 4: Changes and Updates
CHANGES AND UPDATES Board changes Updated our strategy, Afarak’s goal is to maximize business growth and increase shareholder value. The aim is to enhance our value chain and improve efficiencies in order to achieve better financial performance. The group identified the following as the main g
Slide 5: Future Projects
Future Projects Development of current operations Afarak has started the evaluation process of the various projects and also aims to continue working to increase its chrome ore production. Short term Investment in a fines recovery beneficiation plant in our Turkish mines Investment in dryer in t
Slide 6: Mineral Resources & Mineral Reserves as Published
MINERAL RESOURCES & MINERAL RESERVES AS PUBLISHED SOUTH AFRICA - CHROMITE & PGM (Platinum Group Metals) Stellite, Mecklenburg & Vlakpoort TOTAL CHROMITE RESERVES & RESOURCES: 36.8 Mt TOTAL PGM*: 1.14 MOz. TURKEY (Group of Mines & Tailings ) TOTAL CHROMITE RESERVES & RESOURCES: 7.1 Mt *PGM – Plat
Slide 7: Health & Safety
HEALTH & SAFETY Afarak Group’s safety target is achieving ZERO HARM Group has standardised safety, health & environmental policies • Regular safety training in all operational units • Periodic medical checks in all operational units • Periodic updating of safety and protection garments Safety
Slide 8: Group Performance
GROUP PERFORMANCE Production : 405,660 tonnes Revenue : EUR 172.7 million EBITDA : EUR 8.4 million Cash balance of EUR 13.3 million, at 31 December 2014 Cash balance of EUR 11.5 million on 31 March 2015 AGM 08/05/15 8
Slide 9: Production by Quarters
PRODUCTION BY QUARTERS 200 000 180 000 160 000 140 000 120 000 100 000 Production (tonnes) 80 000 60 000 40 000 20 000 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 2013 2014 Q1/2015 • Ramping up of Mecklenburg in Q2 • Mining at Mecklenburg
Slide 10: Revenue by Quarters
REVENUE BY QUARTERS 50 45 40 35 30 25 20 Revenue (EUR) 15 10 5 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 2013 2014 Q1/2015 • Mining volume +264.4% YoY • Mining volume -36.7% YoY • Mining volume -47.2% QoQ Processing volume -5.8% YoY • P
Slide 11: Profitability by Quarters
PROFITABILITY BY QUARTERS EBITDA (EURO Millions) 6,2 4,3 4,2 4,6 3,9 2,9 3 3,3 2,8 2,1 0,8 0,1 -1,8 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 2013 2014 Q1/2015 • EBITDA +53.3% YoY • EBITDA -39.7% YoY • EBITDA +54.8% QoQ • Mainly due to im
Slide 12: Specialty Alloys Performance
SPECIALTY ALLOYS PERFORMANCE Financial Performance (EURO Millions): Q1 2015 FY 2014 FY 2013 Revenue 23.7 97.8 74.5 EBITDA 3.4 7.9 9.0 EBITDA margin % 14.5% 8.0% 12.1% EBIT 2.9 5.7 -6.1 EBIT margin(%) 12.1% 5.8% -8.2% Production (tonnes): FY 2014 FY 2013 Mining: 35,848 70,988 64,632t 94,230t Processi
Slide 13: Ferro Alloys Performance
FERRO ALLOYS PERFORMANCE Financial Performance (EURO Millions): Q1 2015 FY 2014 FY 2013 Revenue 16.8 74.8 61.1 EBITDA 1.8 3.1 8.8 EBITDA margin % 10.5% 4.1% 14.4% EBIT 0.6 -1.4 2.0 EBIT margin(%) 3.6% -1.8% 3.3% Production (tonnes): FY 2014 FY 2013 474,048t 341,028t Mining: 268,351 425,585 Processin
Slide 14: Q1 2015 Performance
Q1 2015 PERFORMANCE Financial Performance (EURO Millions): Q1 2015 Q1 2014 FY 2014 Revenue 40.7 43.2 172.7 EBITDA 4.6 3.0 8.4 EBITDA margin % 11.4% 7.0% 4.9% EBIT 2.9 0.9 1.7 EBIT margin(%) 7.2% 2.1% 1.0% Sales (processed tonnes): Production: Q1 2015 Q1 2014 136,222t 139,084t Speciality Alloys 7,802
Slide 15: Markets
MARKETS In Q1 2015 the strengthening of US dollars limited the increase in prices. Ferrochrome sales tonnages have failed to pick up as expected, in early 2015, in the major consuming markets. The market expectation is that in the standard grade ferrochrome trading volumes will be slightly bet
Slide 16: 2015 Outlook
2015 OUTLOOK The global growth in stainless steel production is expected to lead an increase in demand for chrome products in 2015. As occurred in 2014 where the chrome industry has not been able to increase chrome product prices it is unclear whether this upswing in prices will occur in 2015.