Aurubis Ag · XETR:NDA
Aurubis — Investor Day (December 2021)
54 slides from Aurubis's investor day presentation, Dec 6, 2021
Slide 1: Aurubis Virtual Capital Market Day 2021
Aurubis Virtual Capital Market Day 2021 Starts in:
Slide 2: Agenda
Agenda 1 Introduction Angela Seidler, VP 2 Mission, purpose, and strategy Thomas Sturm, SVP Rainer Verhoeven, CFO 3 Recycling markets David Schultheis, ED 4 Battery recycling Ken Nagayama, ED Current projects contributing 5 to updated strategy Heiko Arnold, COO Aurubis Capital Market Day 2021
Slide 3: Introduction
Aurubis AG Metals for Progress Introduction Roland Harings, CEO Capital Market Day, December 6, 2021
Slide 4: Much achieved & more ahead: Activities in support of strategy update
Much achieved & more ahead: Activities in support of strategy update Innovative Power-to- Assignment Science-based Steam plant in COO – Dr. Arnold targets approved Hamburg, Germany Jul Jun First US Aug recycling Assignment Placement of Joint venture plant: Aurubis CEO – Harings ESG-linked loan with
Slide 5: We work for an innovative and sustainable world
We work for an innovative and sustainable world MISSION We responsibly transform raw materials into metals for an innovative and sustainable world. VALUES STRATEGY Performance – means commitment! Responsibility – means decisions! Metals for Progress: Integrity – means maintaining trust! Driving Sust
Slide 6: Securing our frontrunner position by anticipating market developments
Securing our frontrunner position by anticipating market developments 2017/18 2019–21 Until 2030 Strategic alignment towards Further diversification Pursuing new growth areas increased demand for through implementation of to combine sustainability sustainable solutions multimetal strategy and growth
Slide 7: Our strategy builds on the sound mission of Aurubis
Our strategy builds on the sound mission of Aurubis and covers all relevant aspects to drive sustainable growth Secure Strengthen Pursue Core Business Core Business Growth Options Industry Leadership in Sustainability Enablers − Digitalization, automation, and “Plant of the Future” − Strategic resou
Slide 8: Mission, purpose, and strategy
Aurubis AG Metals for Progress Mission, purpose, and strategy Dr. Thomas Sturm, SVP Corporate Development Rainer Verhoeven, CFO Capital Market Day, December 6, 2021
Slide 9: The strategy update led to a clear project roadmap
The strategy update led to a clear project roadmap First US recycling plant: Strategy Aurubis Group Aurubis review Strategy Richmond, USA presentation Dec Nov Dec 2017/18 11/2020 12/2020 2021 TODAY Phase 1 Phase 2 “The revised strategy Defining Strategic Operationalize Sign Off Implementation reflec
Slide 10: We have operationalized our strategic agenda in five key areas
We have operationalized our strategic agenda in five key areas Intermediate Cu/PM products/ Materials Secondary concentrates P&MM containing Ni materials Sustainability Organization very Strategic − Roadmap of strategic projects for the next years successfully mobilized Roadmap − Transparency regard
Slide 11: Our strategy builds on the sound mission of Aurubis
Our strategy builds on the sound mission of Aurubis and covers all relevant aspects to drive sustainable growth Secure Strengthen Pursue Core Business Core Business Growth Options Industry Leadership in Sustainability Enablers − Digitalization, automation, and “Plant of the Future” − Strategic resou
Slide 12: Strategy pillar 1: Further optimization of our solid core business
Strategy pillar 1: Further optimization of our solid core business Secure Strengthen Core Business Core Business Core business is based on high productivity, Implementing targeted projects at various cost efficiency, and effective distribution channels sites to expand our processing capacities and i
Slide 13: Strategy pillar 2: Realize growth in existing and new business areas
Strategy pillar 2: Realize growth in existing and new business areas Pursue Growth Options Increasing recycling rates, closed This is accompanied by a sharp rise in Based on our core business, we are material loops, and e-mobility will demand for low-emission supply pursuing new growth projects. con
Slide 14: Strategy pillar 3: Sustainability defines our actions and operations
Strategy pillar 3: Sustainability defines our actions and operations Industry Leadership in Sustainability We anchor sustainability even more firmly throughout the company, in all our workflows and processes, supported by ... ... our clearly defined ... our purpose to ... our appropriate ... our pre
Slide 15: Short-term financial guidance
Based on the strategic roadmap: Short-term financial guidance Short term 2020/21ff. − ~€ 350 million capex approved for strengthening the core business, growth & sustainability − ASPA, US recycling plant, and Industrial Heat 2 will lead to EBITDA of ~€ 100 million starting 2025/26 − Most of the EBIT
Slide 16: Medium-term financial guidance
Based on the strategic roadmap: Medium-term financial guidance Medium term 2025/26 − ~€ 250 million in additional capex planned for strengthening core business & sustainability − Five strategic projects that are currently under development should lead to ~€ 70 million EBITDA by 2029/30 − Additional
Slide 17: Long-term financial guidance
Based on the strategic roadmap: Long-term financial guidance Long term 2030 − The volume of our long-term growth and project pipeline significantly exceeds the short-term and medium-term investment amount − All capex projects will be subjected to a thorough sustainability review (particularly CO2 co
Slide 18: Clear financial guidance
Based on the strategic roadmap: Clear financial guidance Short term Medium term Long term 2020/21ff. 2025/26 2030 − Capex ~€ 350 million − Capex ~€ 250 million − Volume of our long-term growth and approved planned in addition project pipeline significantly exceeds short- and medium-term investments
Slide 19: Slide 19
Slide 20: Recycling markets
Aurubis AG Metals for Progress Recycling markets David Schultheis, Executive Director Strategy Capital Market Day, December 6, 2021
Slide 21: Recycling markets are the focus of Aurubis' growth ambitions
Recycling markets are the focus of Aurubis’ growth ambitions Growing material availability Strong growth in European and US recycling markets driven by global macro trends. Higher material complexity Miniaturization and increasing collection rates will drive availability of low-grade recycling mater
Slide 22: Strong global macro trends drive growth in recycling markets
Strong global macro trends drive growth in recycling markets European Market Growth Sustainability Export/Import ~4 % Tightening regulation & Persistent shift of material (CAGR 2019-35) rising collection rates flows as Asia cuts imports North American Market Growth Economic Development Electrificati
Slide 23: Our metallurgical capabilities ensure necessary flexibility for feed mix
Our metallurgical capabilities ensure necessary flexibility for feed mix Illustrative ∑ = ~ 1 mt Cu <90 % PM Sweeps Alloys Residues & Sludges PM Catalysts Granules Misc. w/PM Fe Cu Material Cu PM Material Direct Melt Bulk E-scrap PCBs Scrap No. 2 Metal Shredder Copper Scrap & Alloys Complex Recyclin
Slide 24: Attractive opportunities and EV battery material as emerging business
Attractive opportunities and EV battery material as emerging business Prioritized material Emerging material High (Market size, market growth, Market attractiveness PCB gross revenue potential) Metal shred. Cu <90 % EV batter. Low Low Ability to win High (Necessary capabilities, supplier fragmentati
Slide 25: European market: ~4% CAGR 2019-35 driven by complex recycling
European market: ~4 % CAGR 2019-35 driven by complex recycling EU market size for recycled materials 2019-35 (in mt) Growth Drivers Cu Scrap/Alloys Incremental Growth Complex Recycling Steady growth of industrial activity and PM Material consumption of consumer electronics provide CAGR ~4-6 % ~13.7
Slide 26: Expected rise in European WEEE collection rates
Positive dynamics – expected rise in European WEEE collection rates WEEE supply expected to grow, driven by increase in collection rates WEEE put on the market (in mt) Split of collected WEEE in EU27+UK (in %)1 WEEE collection rate (in %) CAGR ~2-3 % 9% Other 65% 12 10% Small h’hold appliances 11 10
Slide 27: Germany, UK & France: Highest potential for material availability
Germany, UK & France: Highest potential for material availability Material availability in Europe by country (example: WEEE) WEEE supply by country (in kt)1 Current Aurubis location 1,206 1,123 1,079 Potential 369 252 (if collection 337 target reached) 630 248 387 353 WEEE supply 837 871 224 246* 74
Slide 28: UK, Spain & Italy: Copper waste & scrap exports show material supply
UK, Spain & Italy: Copper waste & scrap exports show material supply UK among several countries with large exports to outside of Europe Export of copper scrap by region in 2019 (in kt) Non-Europe Europe 431 342 270 175 207 96 230 117 78 65 75* 11% 7% 17% 25% 34% 32% 33% 50% 44% 74% 70% 89% 93% 83% 7
Slide 29: North America: ~5% CAGR 2019-35 driven by complex recycling
North America: ~5 % CAGR 2019-35 driven by complex recycling North American market size for recycled materials 2019-35 (in mt) Growth Drivers Cu Scrap/Alloys Incremental Growth Complex Recycling Continuous growth of industrial activity PM Material and consumption of electronics lead to solid ~12.2 g
Slide 30: Recycling & landfill regulation drive recycling market growth
Recycling & landfill regulation drive recycling market growth Landfill or disposal ban for VT NH ME electronic devices MN − In 19 states + Washington, DC − Selected electronics through OR NY WI RI MI PA CT general classification as hazardous waste NJ IL IN MD UT CO WV VA (e.g., Delaware, Florida) CA
Slide 31: Decline of US copper scrap exports since 2017 expected to continue
Decline of US copper scrap exports since 2017 expected to continue Development of US imports & exports of copper scrap (2013-2035, in kt) US exports/imports of copper scrap 2013-2035 (in kt) Export Import Forecast 1,178 Net export 1,059 1,006 967 946 916 873 ~600-650 ~400-450 ~150-200 -106 -116 -112
Slide 32: Low degree of competition creates window of opportunity
Low degree of competition creates window of opportunity Secondary Copper Smelter Glencore Rouyn-Noranda, Quebec Analysis & processing Glencore Analysis & − Currently no direct Primary Copper processing Glencore competitor in the secondary Smelter RioTinto smelter segment in the US Garfield, Utah − N
Slide 33: Battery recycling
Aurubis AG Metals for Progress Battery recycling Ken Nagayama, Head of Business Development Battery Materials Capital Market Day, December 6, 2021
Slide 34: Substantial demand for lithium-ion battery quantities
Electric mobility: Substantial demand for lithium-ion battery quantities Lithium-ion battery demand from electric vehicles (GWh) 2,816 791 638 1,057 236 172 155 52 19 2020 2025 2030 2020 2025 2030 2020 2025 2030 Source: IEA, Aurubis estimates Aurubis Capital Market Day 2021
Slide 35: Broad plans for European production define a future recycling stream
Broad plans for European production define a future recycling stream Capacity1 Capacity1 Operator SOP GWh Status Operator SOP GWh Status Northvolt 2021 60 Construction Leclanche 2013 1 Operating Liacon 2018 1 Operating Freyr 2023 43 Construction Microvast 2021 8 Operating Morrow 2024 32 Announced ~4
Slide 36: US lithium-ion battery production also needs local recycling solutions
US lithium-ion battery production also needs local recycling solutions Capacity1 Capacity1 Operator SOP GWh Status Operator SOP GWh Status Johnson Contr. 2010 1 Operating LG 2022 30 Construction LG 2014 5 Operating Wanxiang 2010 0.3 Operating Tesla (1) 2016 54 Operating ~50 GWh Imperium3 2014 5 Oper
Slide 37: Lithium-ion battery scrap recycling is a market challenge already today
Lithium-ion battery scrap recycling is a market challenge already today LIB scrap projection (GWh equivalent) Regional split 2030 End-of-life scrap 404 Manufacturing scrap 59% 6% 15% 328 Rest of world North America 56% 274 232 53% 193 50% 158 47% 44% 41% 112 44% 83 47% 41% 50% 60 53% 42 38% 56% 30 3
Slide 38: Battery scrap recycling requires specialized solutions and know-how
Battery scrap recycling requires specialized solutions and know-how Production scrap Production scrap Testing Discharging Dismantling Shredding End-of-life Black batteries mass 2nd life Auxiliary Cu and Al foils, 1 Energy Storage Systems (ESS1) parts Fe scrap, and plastics Aurubis Capital Market Day
Slide 39: Black mass contains a broad range of scarce and valuable metals
Black mass contains a broad range of scarce and valuable metals Lithium-ion battery Black mass Example of composition Typical range Share of 10% Others of elements metal value 1% Steel 2% Lithium Aluminum 32% Elements wt % 53% Lithium Nickel 21% 2% Electronics Nickel 10-30 Aluminum 1% 2% Cobalt Coba
Slide 40: Black mass markets will require industrial-scale recycling solutions
Black mass markets will require industrial-scale recycling solutions Black mass generation from LIB scrap 2030 End-of-life scrap Manufacturing scrap 43% 170 kt 57% 53% 230 kt 47% Source: Roland Berger, 11/2021 Aurubis Capital Market Day 2021
Slide 41: Aurubis has developed a novel black mass recycling technology
Aurubis has developed a novel black mass recycling technology Black mass Sustainably closing Integration into Metal recoveries the loop smelter network beyond regulatory requirements Battery-grade Cost Patent products efficiency application Lithium Nickel Cobalt Graphite Manganese Aurubis Capital Ma
Slide 42: Aurubis contributes to sustainably closing the loop for batteries
Aurubis contributes to sustainably closing the loop for batteries Electric vehicle End-of-life assembly lithium-ion batteries We are the experts Complex raw materials are Cell & battery Collection & our daily business. manufacturing transport We are multimetal Precursor/cathode Discharging & Already
Slide 43: Battery recycling is a priority growth area
For Aurubis, battery recycling is a growth area with priority, and we are targeting a sizeable market share. A pilot plant is currently under construction. A patent application has been filed for the hydrometallurgical process. We envisage a commercial- scale facility within the next 5 years. Aurubi
Slide 44: Current projects contributing to updated strategy
Aurubis AG Metals for Progress Current projects contributing to updated strategy Dr. Heiko Arnold, COO Capital Market Day, December 6, 2021
Slide 45: Recycling markets are the focus of Aurubis' growth ambitions
Recycling markets are the focus of Aurubis’ growth ambitions Aurubis Capital Market Day 2021
Slide 46: Modular recycling plants: Flexible structures and integrated processes
Modular recycling plants: Flexible structures and integrated processes Our modular system allows us to expand recycling capacities in line with market demand – efficiently, at low risk, and flexibly. Additional capacities are seamlessly integrated into the existing smelter network precisely where th
Slide 47: Pursue growth options: Aurubis Richmond
Pursue growth options Aurubis Richmond Animation für Aurubis Richmond – Bild von SMS Aurubis Capital Market Day 2021
Slide 48: Aurubis recycling plant in Richmond, USA
Pursue growth options Aurubis recycling plant in Richmond, USA Pursue Growth Options Investment EBITDA p.a. ~ € 300 million ~ € 80 million (by 2025/26) Aurubis creates frontrunner position in highly attractive US recycling market with very limited competition and significant annual growth rates of 4
Slide 49: Secure & strengthen core business: Lünen tankhouse
Secure & strengthen core business Lünen tankhouse Tankhouse Aurubis Capital Market Day 2021
Slide 50: Lünen tankhouse
Secure & strengthen core business Lünen tankhouse Secure Strengthen Core Business Core Business Investment Production increase (at full production) ~ € 60 million ~ + 10 % p.a. Aurubis is strengthening its core business and investing € 60 million for the general tankhouse overhaul. The renovation in
Slide 51: Advanced Sludge Processing by Aurubis (ASPA)
Secure & strengthen core business Advanced Sludge Processing by Aurubis (ASPA) ASPA Aurubis Capital Market Day 2021
Slide 52: Advanced Sludge Processing by Aurubis (ASPA)
Secure & strengthen core business Advanced Sludge Processing by Aurubis (ASPA) Secure Strengthen Core Business Core Business Investment EBITDA p.a. ~ € 27 million ~ € 7 million Aurubis is strengthening its core business and taking the next step towards becoming (at full production) the most efficien
Slide 53: Thank you for your participation
Thank you for your participation. For further questions, contact: IR@aurubis.com
Slide 54: Disclaimer statement
Disclaimer statement Aurubis disclaimer regarding 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 statem