Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — Investor Presentation (June 2020)
26 slides from Rhi Magnesita Nv's investor presentation, June 2020
Slide 1: The driving force of the refractory industry
The driving force of the refractory industry Company presentation ZS
Slide 2: Disclaimer
The consolidated financial statements subscribe for or purchase any securities, and presented here are consistent with the neither any part of this presentation nor any criteria of international accounting standards information or statement contained herein – IFRS issued by the International shall f
Slide 3: Table of contents
5 Table of contents auinncncara 1 Refractory industry overview ? RHI Magnesita overview 5 Strategy
Slide 4: Refractories are essential for our modern world
5 RHI MAGNESITA Refractories are essential for our modern world Concrete Copper Steel Glass Aluminium 1,500°C 1,350°C 1,760°C 1,650°C 1,250°C IN CN " NON 1 tonne of STEEL 1 tonne of CEMENT 1 tonne of GLASS 1 tonne of ALUMINIUM 1 tonne of COPPER demands ~10-15 Kg demands ~1 Kg demands ~4 Kg demands ~
Slide 5: Refractories are critical to all high-temperature industrial processes
Refractories are critical to all high-temperature industrial processes ®@ Refractories are critical consumable or investment goods for high-temperature manufacturing processes ®@ Fireproof materials consumed whilst protecting clients’ production processes, retaining physical and chemical characteris
Slide 6: Refractory industry overview
Refractory industry overview Refractories are continuously consumed during finished goods production 5 RHI MAGNESITA Key industries Applications Replacement Costs Steel Basic oxygen-, 20 minutes to ~3.0% electric arc furnace 2 months casting ladles Cement/Lime Rotary Kiln ee Annually ~0.5% Nonferrou
Slide 7: A complex range of tailored refractory products
Refractory industry overview A complex range of tailored refractory _ EAN products are required for each application wane Bricks Example of refractory application for steel ladle 8 Permanent lining 2 | Non-basic, 8 Basic, ex. ex. Alumina Mag-Carbon Monolothics and pre casts 4 | Mixes 8S Pre Castable
Slide 8: Table of contents: RHI Magnesita overview
5 Table of contents auinncncara 1 Refractory industry overview 2 RHI Magnesita overview 5 Strategy
Slide 9: RHI Magnesita is the world leader in refractories
RHI Magnesita is the world leader in refractories and SS a truly global company ww saoncara €2.9bn +13,650 €64m 2019 revenue Employees spreadin more than — Annual investment in Technical 35 countries Marketing, R&D and 4.0 Finished goods sites Countries shipped to worldwide 10 4 Raw material sites c
Slide 10: 2019 financial highlights
2019 financial highlights Resilient performance in difficult markets Revenue Adjusted EBITA Adjusted EBITA margin 5 RHI MAGNESITA Adjusted EPS €2.9bnw sx €408mw sx 14.0% « 10bps! €5.57a5 per share % Net debt Operating FCF? Working capital intensity to adjusted EBITDA Available liquidity+ €359m 18.3%
Slide 11: The Refractory World of RHI Magnesita
The Refractory World of RHI Magnesita Value creation from the raw material to the refractory product* 5 RHI MAGNESITA CONTINUOUS RESEARCH & DEVELOPMENT THROUGHOUT THE CYCLE en (A _UNSHAPED REFRACTORY PRODUCTS Crushing Firing in the rotary kiln 1,800 °C ? Mixing Packaging @ UNFIRED REFRACTORY PRODUCT
Slide 12: Serving a blue chip client base
Serving a blue chip client base STEEL CEMENT oa ArcelorMittal TATA STEEL wl, HEIDELBERGCEMENT PF cervau posco Mecmex KUMEU KA (NUMK) Votorantim a sinoma Severstal ney e. ERDEMIR C e y) S> sie omames, me: RNR © CNBM Serving 1,050 Serving 1,350 of 1,300 plants’ of 1,500 plants’ Note: 1) Approximate nu
Slide 13: Experienced management team
RHI Magnesita overview Experienced management team with solid financial and 5 strategic background sauna Executive Management Team Stefan Borgas CEO lan Botha CFO Luis R. Bittencourt cTO Gerd Schubert Coo Gustavo Franco cso Simone Oremovic People, Projects & Communications Ticiana Kobel Executive VP
Slide 14: Table of contents: Strategy
5 Table of contents auinncncara 1 Refractory industry overview ? RHI Magnesita overview 5 Strategy
Slide 15: Our strategic difference
Our strategic difference Largest global footprint Benefiting from scale and proximity to customers Backward integration Technical and financial advantage Technical leadership 480 experts across 9O countries 5 RHI MAGNESITA Full suite of products & services Delivering more than refractory materials t
Slide 16: Optimally positioned to reach customers everywhere
Optimally positioned to reach customers everywhere 5 RHI MAGNESITA Ss Production facilities Raw material sites % revenues ° More than 70 sales offices worldwide
Slide 17: Full suite of products complemented by knowledge and services
Full suite of products complemented by knowledge and services Example: Steel customer Iron Ore Y uf . W > > — Seemed — Electric Arc Technology Solutions Coal Natural Injection Gas mye Steel r refining : 1 facility : : yy Direct ¥ ; : Cont Reduction : : Continuous : : | Scrap Casting : Blast Geis mn
Slide 18: Offering full solutions to drive value at customers
ZS RHI MAGNESITA Offering full solutions to drive value at customers >20% of revenue comes from cost per performance contracts Client cost structure Client benefit Current solutions portfolio v Reduced downtime v Lower refractory consumption v Lower energy and other raw materials consumption v Highe
Slide 19: Expanding our solutions offering
5 RHI MAGNESITA Expanding our solutions offering Innovation to further enhance business model Current solutions offering Supply chain Refractory products Technical services Future innovation services = Functional refractory @ On-site consulting & ¢ Warehousing @ Recycling of waste products Supervisi
Slide 20: R&D - From raw materials to refractories
R&D — From raw materials to refractories 480 technical experts across 90 countries to consult, develop and deliver innovative solutions 2 directly to clients R&D Hubs (Austria and Brazil) +110 PhD's / Masters! Notes: " 3 R&D Centers (USA, China, India) 2.2% R&D expenditure as a % of revenues! 5 RHI
Slide 21: High quality sites supporting unique solutions
RHI MAGNESITA High quality sites, globally, supporting unique solutions to the market Raw materi Standard DBM! 90%-97% High purity DBM' 97%+ Fused Magnesia Other sintered or fused materials DBD? Production sites Brumado (Brazil) Eskisehir (Turkey) Hochfilzen (Austria) Breitenau (Austria) Brumado (Br
Slide 22: Margin progression
Margin progression Refractory margin continued to improve; contribution from Backward Integration reduced in H2 5 RHI MAGNESITA H1 H2 FY 2019 2019 2019 147 17 264 88 57 145 9.5% 85% 9.0% % RHI standalone : RHI Magnesita 16 : 14 : 13.9% 14.0% : Refractory EBITA (€m) Backward integrated A 5 5 EBITA €m
Slide 23: Resilient business model with a clear strategy
5 RHI MAGNESITA Resilient business model with a clear strategy Resilient margins with further potential @ Stable and growing Refractories margin, at 9% in 2019 (c.400bps higher than 2016) in refractories Further €95-115m EBITA upside by 2022 from management initiatives @ Additional margin contributi
Slide 24: Our 2025 Sustainability targets
5 RHI MAGNESITA, Our 2025 Sustainability targets CO, emissions Safety Reduce by 15% per tonne by 2025! Strong safety culture with zero accidents Diversity Energy jogo) a . - Improve gender diversity on Board and in senior Reduce by 5% per tonne 2025 fit) leadership to 33% by 2025 NOx and SOx emissio
Slide 25: Culture
5 RHI MAGNESITA Culture Critical to success of the merger and future growth RHI MAGNESITA Customer- focused and innovative Performance driven and accountable Open decision making ina respectful environment Cross-functional, collaborative and pragmatic across the global organization
Slide 26: Important notice
Important notice: These materials do not constitute or form part, or all, of any offer of invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in any jurisdiction in which such solicitation, offer or sale would be unlawful, nor shall part, or all