Om Holdings Ltd. · ASX:OMH
Om — Euroz Securities Limited 2010 Rottnest Island Conference
34 slides from Om's conference presentation, Mar 16, 2010
Slide 1: Investor Presentation lodgement letter
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only NO. OF PAGES LODGED: 34 16 March 2010 Company Announcements Office ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION Please find attached a copy of a presentation to be delivered by Mr Peter Toth,
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED OMH listed on the ASX in March 1998 and has its foundations in metals trading – incorporating For personal use only the sourcing and distribution of manganese ore products and subsequently in processing ores into ferro-manganese intermediate products. The OM
Slide 3: OMH – focused on growth
For personal use only ASX ticker ‘OMH’ OMH – focused on growth March 2010 1
Slide 4: Disclaimer Notice
Disclaimer Notice For personal use only This presentation contains certain forward-looking information and forecasts. Such forecasts, projections and information are not a guarantee of the Group future performance and include unknown risks and uncertainties. Accordingly, the actual results and devel
Slide 5: A Snapshot of OMH
A Snapshot of OMH For personal use only Capitalisation summary Overview A leading independent integrated manganese Share price (as at 12 March 2010) A$1.765 producer : Issued shares 490.9m Bootu Creek Manganese Mine, Australia Market capitalisation ~A$844m Qinzhou Smelter and Sinter Plant, China
Slide 6: Key Investment Highlights
Key Investment Highlights For personal use only 1 A global integrated manganese business 2 OMM: A world class resource and optimised production strategy 3 OMQ: A strategically located smelter / sinter plant 4 OMS: A unique marketing capability into China 5 Growth platform: Tshipi - Participation in
Slide 7: Vision and Strategy
Vision and Strategy For personal use only Short term: Short/Medium term: Medium/Long term: Leading integrated Diversified steelmaking raw Strategic supplier of steel manganese producer materials producer making raw materials Operating Projects and Organic Growth OMM – Done: 1Mtpa production, To Do
Slide 8: Development Pipeline
Development Pipeline 2009 2010 2011 For personal use only 2012 Bootu operating strategy Bootu Creek optimised operating strategy – 42/38/35% grades Secondary Processing 1Mtpa ore production Organic Sinter Plant Phase 1 Sinter Plant Phase 2 600ktpa Sinter Capacity 2009 resource upgrade Helen an
Slide 9: Structural Changes in the Global Manganese Industry
For personal use only Structural Changes in the Global Manganese Industry
Slide 10: Record China Steel Production
Record China Steel Production Rest of the World Showing Signs of Recovery For personal use only Recent steel production recovery Outlook for global/Chinese steel production 1,800 150% 1,700 1,600 125% 805 China share of global production (%) 1,500 1,400 769 860 829 724 100% 1,300 Annualised producti
Slide 11: Key 2009 Manganese Industry Indicators
Key 2009 Manganese Industry Indicators 2009 Mn alloy production by product 2009 Mn alloy production by origin For personal use only 000 mt 000 mt 4,000 4,000 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1,000 500 500 0 0 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 0
Slide 12: Use of Manganese and Global Production
Use of Manganese and Global Production For personal use only Major uses of manganese World manganese ore production 2009 – 54Mt Batteries, chemicals and Asia (Other), EEA, 0% aluminium cans, 10% 10% CIS, 9% Europe (Other), Myanmar, 1% 1% India, 5% Africa & Middle East, 27% China, 37% Carbon and Amer
Slide 13: Chinese Influence in Manganese Ore Demand Growth
Chinese Influence in Manganese Ore Demand Growth For personal use only Chinese manganese ore imports 2009 – 9.6mt Growth in Chinese manganese ore imports in 2009 1.2 Others, 6% Others, 8% South Africa, 1.0 24% India, 2% 0.8 Imports (Mt) Indonesia, 3% Malaysia, 5% 0.6 Myanmar, 6% 0.4 Ghana, 3% 0.2 Br
Slide 14: Changing Manganese industry dynamics in China
Changing Manganese industry dynamics in China For personal use only China a net importer of alloys for the first time China’s decreasing manganese ore production Q1 2007 - Q3 2008 Avg monthly exports = 96Kt 70 150% 135,000 Net Exports Mn Alloys Q408 Avg Aug 2009 China = Net Monthly importer of Mn al
Slide 15: Integrated Expansion Option into Indonesia
For personal use only Integrated Expansion Option into Indonesia
Slide 16: Our Indonesia Strategy
Our Indonesia Strategy For personal use only Investigating an integrated low-cost alloy production centre in Indonesia to support the growing Asian steel industry Manganese Coal Power Alloy smelting + + Bootu Creek (Australia) World’s fastest growing fuel Indonesia’s potential for Indonesia’
Slide 17: A Robust Outlook for the Indonesian Coal and Energy Sectors
A Robust Outlook for the Indonesian Coal and Energy Sectors For personal use only Indonesia accounts for one-third of the world’s Projected Indonesian domestic energy demand total energy coal exports 350 309.4 Medium and low grade Indonesian thermal coal 300 Energy demand (TWh) not the preferred gra
Slide 18: Our Partnership and Investment Proposition
Our For personal use only Partnership and Investment Proposition
Slide 19: OMH - A unique investment and partnership value proposition
OMH - A unique investment and partnership value proposition For personal use only Exploration and mining Marketing and Processing and distribution smelting Operating Australia cash flow Strategy, Focus and China Management experience Future development focus Balance sheet regions strength (Indonesia
Slide 20: OMH FY 2009 Financial and Operational Overview
For personal use only OMH FY 2009 Financial and Operational Overview 18
Slide 21: FY 2009 financial and operations snapshot - OMH
FY 2009 financial and operations snapshot - OMH For personal use only A$ million 2009 2008 Total Sales 280.3 574.1 Gross Profit 95.0 261.6 Other Income 21.2 3.0 EBITDA 37.6 143.2 Profit Before Tax 28.3 133.5 Profit After Tax and Minority 26.9 115.6 Interest 19
Slide 22: FY 2009 – Results Contributions
FY 2009 – Results Contributions For personal use only EBITDA A$ million 2009 2008 OMM 18.2 75.2 OMS 13.8 52.1 OMQ 6.1 19.8 OMH (1.6) (5.2) LFB - 1.3 OMA 0.3 - Total 37.6 143.2 • EBIT margin & ROCE of 10.2% & 10.4% • Basic Earning Per Share decreased to A$5.6 cents • Dividend for the year 2009 of A$2
Slide 23: FY 2009 - Results Contributions
FY 2009 - Results Contributions For personal use only NPAT A$ million 2009 2008 OMM 4.4 48.8 OMS 12.8 48.1 OMQ 4.2 19.5 OMH 5.4 (1.1) LFB - 0.3 OMA 0.1 - Total 26.9 115.6 21
Slide 24: FY 2009 Financial Metrics - OMH
FY 2009 Financial Metrics - OMH Revenue Dividends For personal use only A$ Cents Per Share 700 7.0 600 6.0 A$ Millions 500 5.0 400 4.0 3.0 June Half 300 2.0 200 1.0 Dec Half 100 0.0 0 2003 2004 2005 2006 2007 2008 2009 Year 2003 2004 2005 2006 2007 2008 2009 Year Profit/(Loss) attributable to Basic
Slide 25: FY 2009 Financial Metrics - OMH
FY 2009 Financial Metrics - OMH Revenue Gross Profit For personal use only A$ 700 million A$ million 300 650 574.1 280 600 260 243.1 550 240 500 220 450 200 400 180 350 290.5 280.3 160 300 140 109.9 250 214.7 183.8 120 95.0 200 100 150 80 100 60 32.7 50 40 19.1 0 20 0 2005 2006 2007 2008 2009 2005 2
Slide 26: FY 2009 Financial Metrics - OMH
FY 2009 Financial Metrics - OMH Manganese Ore Output Volume Manganese Alloy Output Volume For personal use only kt kt 800 672.6 60 700 648.1 600 50 45 516.4 39 38 500 40 33 400 30 26 300 243.4 20 200 100 10 [-] 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 US$/t 600 OMH’s Manganese Ore ASP U
Slide 27: FY 2009 Financial Metrics - OMH
FY 2009 Financial Metrics - OMH For personal use only Lower profit margin Manganese ore average selling price decreased from US$8.6 to US$4.92/dmtu HCFeMn alloy average selling price decreased from A$2,469 to A$1,279/tonne % % % Gross Margin EBITDA Margin Net Profit Margin 50 30 25 45.6 24.9 25
Slide 28: FY 2009 Financial Metrics - OMH
FY 2009 Financial Metrics - OMH For personal use only A$ million CF from Operating Activities Current Ratio and Quick Ratio 5 160 151.8 4.5 150 Current ratio 4.0 140 4 130 Quick ratio 120 3.5 110 100 2.9 90 3 80 2.5 2.3 70 2.0 60 2 1.8 50 36.9 1.5 40 32.3 30 1.5 1.1 1.1 20 1.0 5.1 1 10 0 0.5 -10 1 0
Slide 29: Bootu Creek Mineral Resource and Ore Reserve Summary – December 2009
For personal use only Bootu Creek Mineral Resource and Ore Reserve Summary – 31 December 2009 2
Slide 30: Mineral Resources - Dec 2009
Mineral Resources - 31 Dec 2009 Measured Indicated Inferred Combined* Deposit: Mt %Mn Mt %Mn Mt %Mn Mt %Mn For personal use only Chugga North 1.2 24.2 2.9 22.6 0.2 21.7 4.3 23.0 Chugga South 1.1 23.6 1.2 22.8 0.2 23.4 2.5 23.2 Gogo 0.3 25.3 1.3 25.7 0.2 26.7 1.8 25.8 Masai 2.2 22.8 3.9 22.8 0.8 22.5
Slide 31: Location Plan – Bootu Creek
Location Plan – Bootu Creek Mineral Resource 31 Dec 2009 For personal use only 2
Slide 32: Ore Reserve Table - Dec 2009
Ore Reserve Table - 31 Dec 2009 Proved Probable Combined* Deposit: Mt %Mn Mt %Mn Mt %Mn For personal use only Chugga North 0.9 22.2 1.7 20.7 2.6 21.2 Chugga South 0.8 21.5 0.9 20.4 1.7 20.9 Gogo 0.2 22.5 0.8 22.7 1.0 22.7 Masai 1.5 21.0 2.6 21.0 4.1 21.0 Shekuma 0.5 23.3 2.6 23.0 3.1 23.0 Tourag 0.7
Slide 33: Ore Reserve / Mineral Resource Growth Histogram
Ore Reserve / Mineral Resource Growth Histogram For personal use only 3
Slide 34: Competent Persons Statement
Bootu Creek Mineral Resource and Ore Reserve - 31 Dec 2009 For personal use only Competent Persons Statement The information in this report which relates to resources and reserves is based on information compiled by Mr Craig Reddell and Mark Laing, both full time employees of OM (Manganese) Ltd and
OM Holdings — Euroz Securities Limited 2010 Rottnest Island Conference on 6ix