Om Holdings Ltd. · ASX:OMH
Om — Euroz Securities 2009 Rottnest Island Conference
23 slides from Om's conference presentation, Mar 10, 2009
Slide 1: Investor Presentation cover letter to ASX
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only NO. OF PAGES LODGED: 23 10 March 2009 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: Euroz Conference March 2009
For personal use only Euroz Conference March 2009 0
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: Today's presentation
Today’s presentation For personal use only OMH overview OMH 2008 financial and operations review 2008 OMM Resource Upgrade Manganese Industry overview 2
Slide 6: Company Overview
For personal use only Company Overview 3
Slide 7: Company Overview
Company Overview OMH is an integrated international mining company focusing on the high-grade manganese business For personal use only A pure-play independent, vertically integrated, international Manganese business High grade siliceous manganese ore and ferro alloys to the Asian steel industry An i
Slide 8: The OMH Business: Our integrated value chain
The OMH Business Our integrated value chain For personal use only Third Third Party Party Ore Ore and and Alloy Alloy -- Manganese, Manganese, Chrome Chrome & & Iron Iron Ore Ore Bootu Bootu Creek Creek Marketing, Marketing, Trading Trading Manganese Manganese (OMM) (OMM) & Asian/Global Asian/Global
Slide 9: A unique value proposition
A unique value proposition 1 2 For personal use only Favorable Strong high industry grade siliceous structure ore demand 6 3 Experienced and focused Organic growth Board and options Management 5 4 Strong BD, M&A & balance sheet, marketing cash flow & opportunities dividends 6
Slide 10: Our Vision and Strategy
Our Vision and Strategy Strategic supplier of steelmaking raw materials For personal use only Short term Leading independent integrated manganese producer Mid term Diversified steelmaking raw materials producer Organic Growth OMM – Reject Plant, Expansion Case FS, Helen and Renner exploration OMQ –
Slide 11: FY 2008 Financial and Production Overview
For personal use only FY 2008 Financial and Production Overview 8
Slide 12: FY 2008 Financial and operations snapshot
FY 2008 (Jan – Dec 2008) Financial and operations snapshot For personal use only A$ million 2008 2007 Variance Total Sales 574.1 290.5 +98% Gross Profit 243.1 109.9 +121% Other Income 3.0 8.9 -66% Profit Before Tax 133.5 61.9 +116% Profit After Tax and 115.6 56.9 +103% Minority Interest 9
Slide 13: FY 2008 financial snapshot
FY 2008 financial snapshot NPAT A$ 2008 2007 Variance For personal use only million OMM 48.8 7.7 +534% OMS 48.1 42.2 +14% OMQ 19.5 11.3 +73% OMH (1.1) (4.7) -77% LFB 0.3 0.4 -25% Total 115.6 56.9 +103% • EBIT margin & ROCE of 23.4% & 53.5% • Basic Earning Per Share (EPS) increased to A$0.24 • Divide
Slide 14: FY 2008 Production and Sales Summary
FY 2008 Production and Sales Summary For personal use only OMM 2008 2007 Variance Production (mt) 672,580 516,448 +30% Sales (A$m) 221.8 86.9 +155% OMQ Production (mt) 45,511 38,101 +19% Sales (A$m) 125.7 44.4 +183% OMS Sales (mt) 818,519 860,800 -5% Sales (A$m) 552.6 265.7 +108% 11
Slide 15: Solid FY 2008 - Financial Metrics
Solid FY 2008 - Financial Metrics Revenue Dividends For personal use only A$ Cents Per Share 700 7.0 600 6.0 A $ M illio ns 500 5.0 400 4.0 3.0 June Half 300 200 2.0 1.0 Dec Half 100 0.0 0 2003 2004 2005 2006 2007 2008 Year Year 2003 2004 2005 2006 2007 2008 Profit/(Loss) attributable to Basic earni
Slide 16: Solid FY 2008 - Financial metrics
Solid FY 2008 - Financial metrics A$ million Revenue A$ million Gross Profit For personal use only 700 300 650 574.1 280 260 243.1 600 550 240 500 220 450 200 400 180 350 290.5 160 300 140 109.9 214.7 120 250 183.8 100 200 80 150 60 32.7 100 40 19.1 50 20 0 0 2005 2006 2007 2008 2005 2006 2007 2008
Slide 17: Solid FY 2008 – Financial metrics
For personal use only Solid FY 2008 – Financial metrics Strong margin improvement Ore production at 700ktpa levels maintained since 4Q07 Operating cost control and continuous improvement initiatives Manganese price increases captured in bottom line % % % Gross Margin EBITDA Margin Net Profit M
Slide 18: OMH Capital Structure
For personal use only OMH Capital Structure Fully paid ordinary shares at 5 March 09 477.6 million Unlisted options at 5 March 09 72.2 million Market Cap (Undiluted) A$0.53 billion Based on share price of A$1.11/share as at 5 March 09 Major Shareholders Board/Management ~ 22% HSBC Custody Nomine
Slide 19: 2008 Reserve and Resource Update
For personal use only 2008 Reserve and Resource Update 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 who are Members of the Australasian Institute of Minin
Slide 20: 2008 Reserve and Resource Update
2008 Reserve and Resource Update released 5 March 2009 For personal use only 31 December 2008 31 December 2007 Change Million % Million % Million tonnes Mn tonnes Mn tonnes Mineral Resource 30.6 24.1 17.8 25.7 + 12.8 Ore Reserve 22.4 22.1 10.3 24.5 + 12.1 Ore Reserve / Mineral Resource Comparison •
Slide 21: 2008 Reserve and Resource Update
2008 Reserve and Resource Update For personal use only released 5 March 2009 Masai 6.8 Mt @ 23.3% Chugga North 5.2 Mt @ 23.9% Chugga South 3.1 Mt @ 24.4% Gogo 1.6 Mt @ 28.3% Shekuma 4.0 Mt @ 25.4% Tourag 4.3 Mt @ 23.8% Yaka 2.8 Mt @ 23.6% Zulu 2.4 Mt @ 22.8% Process Plant Xhosa 0.4 Mt @ 24.5% 18
Slide 22: The Manganese Industry: Critical Issues for 2009
For personal use only The Manganese Industry Critical Issues for 2009 19
Slide 23: Industry drivers influencing high grade ore supply demand balance and pricing
Industry drivers influencing high grade ore supply demand balance and pricing For personal use only • China 2009 crude steel production • domestic consumption, economic stimulus impact • High grade Mn Ore inventories • steadily reducing inventories in major Chinese ports • Impact of production cuts
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