Aurubis Ag · XETR:NDA
Aurubis — Shareholder Meeting (March 2018)
34 slides from Aurubis's shareholder meeting presentation, Mar 1, 2018
Slide 1: Aurubis AG Annual General Meeting
Aurubis AG Annual General Meeting Hamburg, March 1, 2018 AGM 2018 – 03/01/2018 1
Slide 2: Advanced negotiations on sale of Segment FRP to Wieland-Werke AG
Aurubis is in advanced negotiations regarding the sale of Segment FRP to Wieland-Werke AG, Ulm FY 2016/17 » Production of 230,000 t of copper and alloyed products » Approx. 1,740 employees + ca. 300 at Schwermetall » Revenue of € 1.3 billion + € 330 million at Schwermetall AGM 2018 – 03/01/2018 2
Slide 3: ONE Aurubis
ONE Aurubis Vision Transformation program ONE Aurubis Leadership & Organization & Business Culture & Strategy Employee Responsibility Improvement Communication Development Clear Efficient direction organization AGM 2018 – 03/01/2018 3
Slide 4: Multi-layered processes, more added value
Multi-layered processes, more added value Market (competition & opportunities) Market Market (suppliers) (customer) Markt (new applications) AGM 2018 – 03/01/2018 4
Slide 5: Defined project objectives have been achieved
Defined project objectives have been achieved Target: > € 200 million (in € million) + 80 > 200 + 60 » Measures for 2017/18 have been (> 120) identified and are being implemented » We are currently fully on schedule » All of the company’s divisions are + 30 (> 60) contributing to project success, in
Slide 6: ONE Aurubis
ONE Aurubis Vision Transformation program ONE Aurubis Leadership & Organization & Business Culture & Strategy Employee Responsibility Improvement Communication Development Clear Efficient Better Employee Unifying direction organization processes development culture AGM 2018 – 03/01/2018 6
Slide 7: Global demand for copper continues to increase
Global demand for copper continues to increase Global demand for refined copper (in million t) China (share in %) 24,4 24,8 23,5 24,0 22,5 23,0 47 % 48 % 48 % 48 % 48 % 48 % 2016 2017 2018e 2019e 2020e 2021e Source: Wood Mackenzie 12/2017 AGM 2018 – 03/01/2018 7
Slide 8: FY 2016/17: Good concentrate supply, satisfactory treatment and refining charges
FY 2016/17: Good concentrate supply, with satisfactory treatment and refining charges Countries of origin for copper concentrates TC development for copper concentrates (in US$/t) Annual TCs (clean concentrate) Copper price (settlement, avg.) Other Chile 120 12000 19% 22% 100 10000 Mexico 4% 80 8000
Slide 9: FY 2016/17: Higher refining charges due to metal price, good supply
FY 2016/17: Higher refining charges due to the metal price, with good supply Countries of origin for recycling materials Refining charges for copper scrap and copper price (in €/t Cu) European refining charges (CRU) Other, Copper price (settlement) 750 7500 10% Germany, North America, 44% 600 6000 1
Slide 10: Sulfuric acid in FY 2016/17: Markets stabilized
Sulfuric acid in FY 2016/17: Markets stabilized increasingly in the last FY Aurubis sulfuric acid Sulfuric acid price according to sales sectors (CFR Brazil spot price, in US$/t) 100 Metals 11 % Fertilizer 43 % 80 60 40 20 Chemicals 46 % 0 2013 2014 2015 2016 2017 2018 Source: Aurubis FY 2016/17 AGM
Slide 11: European copper premium
European copper premium European copper premium (in US$/t) 120 110 105 100 92 86 86 86 80 60 40 20 0 2013 *2014 2015 2016 2017 2018 * beginning on June 1, 2014: US$ 86/t AGM 2018 – 03/01/2018 11
Slide 12: Aurubis has a leading position in the copper value-added chain
Aurubis has a leading position in the copper value- added chain Change FY 2016/17 vs. prior year Position Concentrate processing* 2,424,000 t +12 % No. 2 worldwide Copper scrap input 272,000 t +8 % No. 1 worldwide Cathode output 1,156,000 t +7 % No. 2 worldwide Wire rod output 719,000 t -5 % No. 1 w
Slide 13: Aurubis' result significantly higher than in the previous year
Aurubis’ result significantly higher than in the previous year, as expected FY FY 2016/17 2015/16 Operating EBT (€ million) 298 213 Net cash flow (€ million) 480 239 Operating ROCE* 15.1 % 10.9 % Equity ratio (equity / total 52.5 % 47.8 % liabilities) Net debt / EBITDA** -0.5 0.1 * Rolling EBIT last
Slide 14: Significantly higher dividend payout of € 1.45 proposed
Executive Board and Supervisory Board propose significantly higher dividend payout of € 1.45 Aurubis dividends (in € per share) Dividend yield (in %) 1,45 1,35 2,6 2,5 2,5 1,25 2,4 1,10 2,1 1,00 12/13 13/14 14/15 15/16 16/17* 12/13 13/14 14/15 15/16 16/17* * proposal AGM 2018 – 03/01/2018 14
Slide 15: Aurubis result significantly higher than previous year (Q1)
Aurubis result significantly higher than previous year Q1 Q1 2017/18 2016/17 Operating EBT (€ million) 79 18 Net cash flow (€ million) -246 -41 Operating ROCE (%) 15.4 9.5 (operating EBIT last 4 quarters) AGM 2018 – 03/01/2018 15
Slide 16: Aurubis AG Annual General Meeting
Aurubis AG Annual General Meeting Hamburg, March 1, 2018 AGM 2018 – 03/01/2018 16
Slide 17: Forecast for 2017/18: Very good prior year level expected
Forecast for 2017/18: Very good prior year level is expected to be maintained We expect operating EBT at the very good prior year level and a slightly lower operating ROCE for the Aurubis Group in fiscal year 2017/18 compared to the reporting year. Aurubis definition for a qualified comparative fore
Slide 18: Corporate purpose and ambition for the future
OUR MISSION AND VISION: Corporate purpose and ambition for the future AGM 2018 – 03/01/2018
Slide 19: Our business model: metallurgical expertise and processing capabilities
Our business model: metallurgical expertise and processing capabilities as the basis for success Smelting and refining Markets for Technology complex Processing markets raw materials synergy … … enables Metal production Markets for Markets for standard semi-finished copper raw materials copper produ
Slide 20: Metals for an innovative world: our copper makes the future possible
Metals for an innovative world: our copper makes the future possible Renewable energy E-mobility Continuous growth in copper demand is expected Digitalization Urbanization AGM 2018 – 03/01/2018 20
Slide 21: Base metal copper: optimal starting point for multi-metal strategy
Base metal copper: Aurubis has an optimal starting point for multi-metal strategy Base metals and their accompanying elements AGM 2018 – 03/01/2018 21
Slide 22: Our market environment: Opportunities and challenges
Our market environment: Opportunities and challenges for further development Markets for standard copper Markets for Product Societal raw materials complex raw materials markets trends Increasing mine Increasing metal prices Delayed development of UN Sustainable output and rising make complex raw mi
Slide 23: Our strategic focus: Strengthening the copper business
Our strategic focus: Strengthening the copper business Smelting and refining Markets for Technology complex Processing markets raw materials Synergy … … enables Metal production Markets for Markets for standard semi-finished copper raw materials copper products Strengthening the leading position: co
Slide 24: Our strategic focus: Development of the multi-metal business
Our strategic focus: Development of the multi-metal business Expansion of the multi-metal business: Outstanding expertise & innovative solutions for the industrial sector Smelting and refining Markets for Technology complex Processing markets raw materials synergy … … enables Markets for Markets for
Slide 25: Our Strategy: Growth, Efficiency and Responsibility
OUR STRATEGY: Growth, Efficiency and Responsibility AGM 2018 – 03/01/2018
Slide 26: Strategic focus Growth: Continued development of multi-metal expertise
Strategic focus “Growth”: Continued development of multi-metal expertise Approach » Consistent further development of multi-metal processing methods » Development of mine-specific solutions » Development of recycling solutions » Establishing new sales channels Goals 100 % sales 100 % volume new sale
Slide 27: Future Complex Metallurgy (FCM) project: step for multi-metal growth
Future Complex Metallurgy (FCM) project: important step for multi-metal growth » Hamburg and Olen: > 180 jobs » Production start: FY 2020/21 » Capex: approx. € 320 million » Additional raw material input » EBITDA increase: € 80 million beginning in FY 2022/23 » Expansion for complex raw materials »
Slide 28: Aurubis will report on a broader metal portfolio
Strategic focus “Growth”: Aurubis will report on a broader metal portfolio in the future Copper Gold Silver Lead Nickel PGM Tin Minor metals Platinum Selenium Osmium Tellurium Iridium Rhenium Ruthenium Antimony Rhodium Bismuth Palladium AGM 2018 – 03/01/2018 28
Slide 29: Aurubis acquires Codelco's shares in Deutsche Giessdraht
Growth: Aurubis acquires Codelco’s shares in Deutsche Giessdraht » Until now, Aurubis has held 60 % and Codelco has held 40 % » Joint venture with approximately 110 employees. » Execution of the purchase agreement is subject to approval by the federal antitrust authorities. AGM 2018 – 03/01/2018 29
Slide 30: Strategic focus Efficiency: Optimization and continuous improvement
Strategic focus “Efficency”: Optimization and continuous improvement in all functions Approach » Continuous improvement of the cost position » Excellence in metal extraction » Optimization of sales channels » Standardization of core processes » Production automation Goals € 200 million Project succe
Slide 31: Strategic focus Responsibility: Our aspiration. Every day.
Strategic focus “Responsibility”: Our aspiration. Every day. Approach » Focus on sustainability - economy, environment and people » Collaboration with business partners & stakeholders ensures sustainable commercial success » Increased efficiency and emissions reduction » Management style and corpora
Slide 32: Our Strategy: Growth, Efficiency and Responsibility
OUR STRATEGY: Growth, Efficiency and Responsibility AGM 2018 – 03/01/2018
Slide 33: Aurubis AG Annual General Meeting
Aurubis AG Annual General Meeting Hamburg, March 1, 2018 AGM 2018 – 03/01/2018 33
Slide 34: Disclaimer: Forward-looking statements
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 risks and