Slide 1: Aurubis AG Metals for Progress
Aurubis AG Metals for Progress Conference Call on the Release of the Annual Report 2018/19 on December 11, 2019
Slide 2: Executive summary of fiscal year 2018/19
Executive summary of fiscal year 2018/19 » Operating EBT of € 192 million (PY: € 329 million) and ROCE of 8.6 % (PY: 15.0 %) in FY 2018/19 » Net cash flow at € 272 million (PY: € 203 million) » Operating performance unsatisfactory, even beyond planned shutdowns » One-off impairment losses in Segment
Slide 3: 2018/19: A year of transition for Aurubis
2018/19: A year of transition for Aurubis FY 2018/19 FY 2017/18 Operating EBT (€ million) 192 329 Net cash flow (€ million) 272 203 Operating ROCE (%) 8.6 15.0 (operating EBIT last 4 quarters) December 2019 3
Slide 4: Production volumes and metal portfolio
Production volumes and metal portfolio Change vs. Change vs. FY 2018/19 prior year FY 2018/19 prior year Concentrate 2,225,000 t -12 % Gold 51 t 6% processing Copper scrap input 291,000 t 23 % Silver 861 t -2 % Cathode output 1,075,000 t -7 % Lead 19,038 t -3 % Continuous cast wire 804,000 t +4 % Ni
Slide 5: Market sentiment has become more challenging over the course of FY 2018/19
Market sentiment has become more challenging over the course of FY 2018/19 Trend in significant market prices and refining charges 180% 100 % = Sept. 2017 160% 140% Copper premium 120% Sulfuric acid price (spot CFR Brazil) 100% Exchange rate (US$/€) 80% TC/RCs for copper concentrates (contract) Euro
Slide 6: Operating EBT influenced by one-off effects
Operating EBT influenced by one-off effects FY FY Change vs. prior (operating IFRS) 2018/19 2017/18 year Revenues €m 11,897 11,694 2% Gross profit €m 1,168 1,214 -4 % EBITDA €m 359 462 -22 % EBIT €m 208 332 -37 % EBT €m 192 329 -42 % Consolidated net income €m 138 265 -48 % December 2019 6
Slide 7: Adjustment of operating EBT reporting
Adjustment of operating EBT reporting Previous definition/derivation of the operating NEW definition/derivation of the operating result from the results of operations by: result from the results of operations by: » Adjusting for effects deriving from the » Adjusting for effects deriving from the app
Slide 8: Very robust key figures provide room for future growth
Very robust key figures provide room for future growth 12M 12M Target 2018/19 2017/18 ROCE* % 8.6 15.0 15.0 Equity ratio % 55.1 55.5 > 40.0 (equity / total liabilities) Debt coverage** -0.4 -0.4 < 3.0 12M 12M Additional KPIs 2018/19 2017/18 Capital expenditure €m 224 181 (including finance leases) C
Slide 9: Stable balance sheet structure
Stable balance sheet structure ASSETS (in € million) EQUITY AND LIABILITIES (in € million) 4,059 4,077 4,059 4,077 Fixed assets 1,499 1,483 Equity 2,234 2,261 Inventories 1,532 1,549 Provisions 453 330 314 Financial liabilities 303 Receivables 587 566 Other liabilities 1,069 1,172 Cash and cash (27%
Slide 10: Segment MRP: Impacted by lower throughput, good metal gain in Q4
Segment MRP: Impacted by lower throughput, good metal gain in Q4 Operating results for Segment Metal Refining & Processing (MRP) (FY 2018/19) 12M 12M » Substantially lower concentrate throughput with lower TC/RCs Segment MRP 2018/19 2017/18 » Scheduled shutdown in Pirdop in May/June with a negative
Slide 11: Segment FRP: Operating EBT strained by lower demand and one-off impairment losses
Segment FRP: Operating EBT strained by lower demand and one-off impairment losses Operating results for Segment Flat Rolled Products (FRP) (FY 2018/19) 12M 12M » Operating EBT down significantly because of lower sales Segment FRP 2018/19 2017/18 volumes and less favorable supply conditions compared
Slide 12: Efficiency improvement program achieved target for 2018/19
Efficiency improvement program achieved target for 2018/19 (in € million) + 60 (> 120) » Under difficult overall circumstances and market conditions, we achieved the targeted project success in 2018/19 with our efficiency improvement program. + 30 » We will transition the program to a follow-up prog
Slide 13: Significantly increased dividend yield and payout ratio
Significantly increased dividend yield and payout ratio Aurubis dividend Dividend yield Payout ratio (in € per share) (in %) (in %, calculated based on operating IFRS consolidated net income) 41 1.55 3.1 1.45 34 1.35 2.6 1.25 1.25 2.4 2.5 28 2.1 26 24 14/15 15/16 16/17 17/18 18/19* 14/15 15/16 16/17
Slide 14: Update on announced strategic activities
Update on announced strategic activities Aurubis AG to acquire Metallo Group Aurubis AG to divest Segment FRP » On May 22, 2019, Aurubis AG signed a share » In February 2019, the European Commission purchase agreement for the acquisition of the prohibited the sale of Segment FRP to Wieland Belgian-S
Slide 15: Sustainability is a fundamental component of the Aurubis strategy
Sustainability is a fundamental component of the Aurubis strategy Aurubis Sustainability Strategy 2018-2023, main sustainability ratings & initiatives AA (2018) 68 of 100 (2018) AA (2019) 74 of 100 (2019) Best Newcomer (2015) MDAX Leader (2016) Score B (2017 and 2018) oekom research: Prime (2019) De
Slide 16: Environmental protection: an essential part of Aurubis' Sustainability Strategy
Environmental protection: an essential part of Aurubis’ Sustainability Strategy Aurubis reduction 2000-2018 SO2 emissions – 4.9 kg/t of copper output - 86 % Dust emissions – 63 g/t of copper output - 95 % Metal emissions to water – 1.1 g/t of copper output - 85 % Water withdrawal – 51 in m³/t of cop
Slide 17: Aurubis Sustainability Strategy 2018-2023 – selected targets and KPIs
Aurubis Sustainability Strategy 2018-2023 – selected targets and KPIs ENVIRONMENT Year Target Status as at 9/30/2019 Introduction of environmental management in accordance CY 2022 Group-wide 12/16 sites1 with ISO 14001 Introduction of energy management in accordance with FY 2021/22 Group-wide 8/16 s
Slide 18: Outlook for 2019/20
Outlook for 2019/20 More challenging market environment ahead » Reuters 2020 copper price poll from October: US$ 6,030/t » Stable copper demand based on industry forecasts. Product demand from the automotive sector is expected to remain subdued » The level for 2020 annual contracts on the copper con
Slide 19: FY 2019/20 forecast
FY 2019/20 forecast In total, we expect an operating EBT between € 185 and 250 million and an operating ROCE between 8 and 11 % for fiscal year 2019/20. Interval forecast Operating EBT Operating ROCE in € million in % Group 185-250 8-11 Segment MRP 230-310 11-16 Segment FRP 11-15 5-7 December 2019 1
Slide 20: Aurubis Metals for Progress Vision 2025
AAurubis Metals for Progress VISION VISION VISION 2025 Ps Passion for metallurgy for progress with you
Slide 21: Your IR Contacts: Financial Calendar
Your IR Contacts: Angela Seidler Elke Brinkmann Christoph Tesch VP Investor Relations & Senior Manager Senior Manager Corporate Communication +49 40 7883-2379 +49 40 7883-2378 +49 40 7883-3178 e.brinkmann@aurubis.com c.tesch@aurubis.com a.seidler@aurubis.com Financial Calendar » Q1 2019/20 February
Slide 22: Scheduled shutdowns in the next 3 years
Scheduled shutdowns in the next 3 years Status: December 2019 (preliminary) FY 2019/20 FY 2020/21 FY 2021/22 Hamburg › Boiler repair/inspection › Anode furnace › Boiler repair/inspection Oct./Nov. 2019 Apr. 2021 May/Jun. 2022 EBT effect ca. € 34 million EBT effect ca. € 8 million EBT effect ca. € 21
Slide 23: Legal disclaimer
Legal 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 ris