Om Holdings Ltd. · ASX:OMH
Om — Citigroup Investor Presentation Update 2023
29 slides from Om's conference presentation, Sep 18, 2023
Slide 1: OM Holdings Limited ASX announcement cover letter
OM HOLDINGS LIMITED (ARBN 081 028 337) (Malaysian Registration No. 202002000012 (995782-P)) Incorporated in Bermuda No. of Pages Lodged: 29 18 September 2023 ASX Market Announcements ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam For personal use only OM HOLDINGS LIMITED (“OMH
Slide 2: OM Holdings Limited Investor Presentation September 2023
1 OM HOLDINGS LIMITED Australia • China • Japan • Malaysia • Singapore • South Africa For personal use only September 2023 • Investor Presentation • ASX:OMH | Bursa:OMH (5298)
Slide 3: Disclaimer
2 DISCLAIMER This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all For personal use only information that an inve
Slide 4: Company Snapshot
3 COMPANY SNAPSHOT Manganese and silicon smelting company, Market Capitalization US$ 255.1 million(1) operating across the value chain Total Debt (1H2023) US$ 290.2 million For personal use only Key Dual listed on ASX (since 1998) and Bursa Metrics Cash & Cash Equivalent US$ 51.7 million (since 2021
Slide 5: Our Products
4 OUR PRODUCTS Critical alloying element to steel with a diversification into electronic, chemical and solar industries For personal use only Manganese Ore Manganese Alloys Silicon Alloys Silicon Metal Manganese is the 4th most Main alloying element - Manganese Main alloying element – Silicon 99% Pu
Slide 6: Smelting: Raw Materials to Critical Additives
5 SMELTING: RAW MATERIALS TO CRITICAL ADDITIVES Manganese Ore - Mn High Purity Quartz - Si For personal use only Products Manganese Alloys Ferrosilicon Metallic Silicon Under Development Customers Steel Mills Foundries Chemicals / Solar / Electronics Some of our End Users: China Steel Corporation (T
Slide 7: Business Milestones
6 BUSINESS MILESTONES Focusing on organic growth, tapping on the full potential of Sarawak smelter For personal use only 1994: 2021-2022 • Founded in Hong Kong 2017-2018: • Secondary listing on Bursa Malaysia • Achieved cost competitive • Completed acquisition of remaining 25% production for 16 furn
Slide 8: Corporate Structure
7 CORPORATE STRUCTURE Largest Shareholders (as at 6th October 2022) • Huang Gang (14.03%) • Marc Chan, Amplewood Resources (13.57%) • Low Ngee Tong (9.32%) • Heng Siow Kwee (8.95%) For personal use only 100 100 100 OM (Manganese) Ltd OM Holdings (B.V.I) Ltd OM (Mauritius) Corp Australia British Virg
Slide 9: Material Subsidiaries and Associates
8 MATERIAL SUBSIDIARIES AND ASSOCIATES Total Group Assets Total Group Revenue as at 31 Dec 2022 FY2022 US$886m US$856.5m For personal use only Others, $56 , 6% Tshipi (South OMSA Africa), $81 , (Malaysia), 9% $269 , 32% OMSA OMS (Malaysia), (Singapore), $644 , 73% OMM $540 , 63% (Australia), OMQ $48
Slide 10: Industry Overview
For personal use only INDUSTRY OVERVIEW 9
Slide 11: Manganese Ore and Alloy Market Review
10 MANGANESE ORE AND ALLOY MARKET REVIEW Mn alloy prices retraced to COVID levels, despite power price increase in key production regions Strong monthly contemporaneous Covid & Russian-Ukraine War: Strong margins with post COVID super- For personal use only correlation between Mn Ore and Mn cycle. P
Slide 12: Ferrosilicon Market Review
11 FERROSILICON MARKET REVIEW Overall market weakness with prices and Chinese output both declining steadily Relatively fixed input costs, Covid & Russian-Ukraine War: China coal & power crisis in Q3 2021 led to price For personal use only earnings correlate well with surge to historical highs. Post
Slide 13: Credit Highlights
For personal use only CREDIT HIGHLIGHTS 12
Slide 14: Credit Highlights
13 CREDIT HIGHLIGHTS The Largest & Lowest Cost Quartile Ferroalloy Smelter in the Region For personal use only 1 2 3 Vertically Integrated Strategically Located Business Well-Invested Asset Base with Production with Leading Cost Position Profile of Visible Growth Manganese and silicon smelting Close
Slide 15: Key Operations
14 KEY OPERATIONS Sarawak - Malaysia (100%) For personal use only Smelting & Mn alloy: 333-400ktpa, Ferrosilicon: 120-126ktpa Sinter ore: ~250ktpa Sintering Silicon Metal: 21-24.5ktpa KEY OPERATIONS ALL VERTICALLY INTEGRATED Australia (100%) Singapore/China (100%) Exploration + Tailings Plant Global
Slide 16: With Leading Cost Position
15 …WITH LEADING COST POSITION FeSi Production (CIF Japan) Cash Cost Comparison 2022 1st quartile 2nd quartile 3rd quartile 4th quartile For personal use only China export (legal) OMH Group Kazakhstan Norway Iceland Russia Brazil 0 100 200 300 400 FeSi supply to Japan, 2022 (Mt) • Sustainable produc
Slide 17: Well-Invested Asset Base
16 WELL-INVESTED ASSET BASE… Cost competitive resource asset, leveraging on management know-how For personal use only Raw Materials Power Smelting • Ready access to raw material • 350 MW hydroelectric power • Malaysia becoming the world’s sources for quartz and reductants supply from Sarawak Energy
Slide 18: Stable Financial Profile with Conservative Gearing
17 STABLE FINANCIAL PROFILE WITH CONSERVATIVE GEARING Continue to focus on paying down debt Total Debt Gearing Ratio (2) • Repaid US$18.6 million comprising Sarawak $400 362 2 project finance loan and trade facilities 332 320 For personal use only 297 290 US$ million(1) $300 255 1.14 • Gearing ratio
Slide 19: Pioneer in the Sustainable Performance
18 PIONEER IN THE SUSTAINABLE PERFORMANCE Clear focus with major targets set for 2023 and beyond For personal use only Environmental Social Governance • Achieve ISO 14001 in FY2023 • Commit to zero workplace fatality • Extend current Supplier Performance Evaluations by 90% • Enhance Air Pollution Co
Slide 20: Excellent Management Personnel
19 EXCELLENT MANAGEMENT PERSONNEL Strong track record of delivering growth and performance • Founder, managing director and consultant of Tan Peng Chin LLC • Mr Low is a qualified Mechanical Engineer, having graduated until he retired from the firm on 31 December 2015 For personal use only from the
Slide 21: Financial Highlights
20 For personal use only FINANCIAL HIGHLIGHTS
Slide 22: Key Financial Outcomes
21 KEY FINANCIAL OUTCOMES LTM June 2023 As at 30 June 2023 01 Steadily improving and stabilizing end For personal use only market especially with increased demand Revenue Total Debt for low-carbon footprint alloys US$709.6m US$290.2m 02 Robust margin profile despite weaker end market performance 03
Slide 23: Overview of Current Capital Structure
22 OVERVIEW OF CURRENT CAPITAL STRUCTURE Company continues to grow with low leverage Debt to Equity Net Debt To Equity For personal use only 0.71x 0.56x Total Trade Utilised, Facilities Unutilised, Debt Equity Mix $67.2 US$95.0m $27.8 Equity Debt 58% 42% Non-Current, $163.2 , 73% Total Loans Private
Slide 24: Recorded US$49.8M EBITDA in 1H 2023
23 RECORDED US$49.8M EBITDA IN 1H 2023 Revenue and GP Margin $1,500 27.7% 30% 1H 2023 Revenue and EBITDA 26.4% 24.2% 23.4% 20.6% 21.4% 25% • Significantly lower average selling prices in (1) only million GP Margin $1,000 1126 14.9% 20% 1H 2023 vs 1H 2022. 12.3% 15% 780 857 • Supressed demand, higher
Slide 25: Key Takeaways
24 KEY TAKEAWAYS OM, now a robust story STRONG MARGINS STABLE OUTPUT + GROWTH For personal use only Emissions Reduction Lowest Cost Quartile Largest Producer in the Ferroalloy Smelter in the Region, with Growth and Improved energy efficiency Region(1) Diversification Plans from power generated using
Slide 26: Appendix
For personal use only APPENDIX 25
Slide 27: 1H23 Key Updates and FY23 Production Guidance
26 1H23 KEY UPDATES AND FY23 PRODUCTION GUIDANCE Temporary FeSi production at silicon metal furnaces to increase productivity Silicon metal anticipated to Repaid US$18.6m to For personal use only resume production in early 2024 Project Finance Lenders Full year production guidance revised Exploratio
Slide 28: ESG Risk Rating
27 ESG RISK RATING Almost first quartile ESG rating for sub-industry group RENEWABLE ENERGY REPURPOSE 80%+ OF ENHANCE AIR POLLUTION For personal use only FROM HYDROPOWER SCHEDULED WASTE BY CONTROL SYSTEM PLANT FY2030 PERFORMANCE ESG Risk Rating Distribution ESG Risk Rating Ranking 67% OMH: 37.4 61%
Slide 29: OM Holdings Limited
28 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA For personal use only
OM Holdings — Citigroup Investor Presentation Update 2023 on 6ix