Iluka Resources Limited · ASX:ILU
Iluka Resources — Shareholder Meeting (May 2015)
50 slides from Iluka Resources's shareholder meeting presentation, May 20, 2015
Slide 1: Iluka Resources Limited 2015 Annual General Meeting
Iluka Resources Limited 2015 Annual General Meeting Perth, Western Australia 20 May 2015
Slide 2: Greg Martin, Chairman
Y ILUKA ee eeeeeeeeeeeere®| eeeeeeeeeeeeeeeee Greg Martin Chairman
Slide 3: 2015 Annual General Meeting
2015 Annual General Meeting 3
Slide 4: Evacuation Points
Evacuation Points 4
Slide 5: Please Turn Off Your Mobile Phone
PLEASE TURN OFF YOUR MOBILE PHONE 5
Slide 6: 2015 Annual General Meeting
2015 Annual General Meeting 6
Slide 7: Iluka Board of Directors
Iluka Board of Directors Greg Martin David Robb Gavin Rezos Jenny Seabrook Wayne Osborn James (Hutch) Marcelo Chairman Managing Director Ranck Bastos 7
Slide 8: Marcelo Bastos
Marcelo Bastos 8
Slide 9: James (Hutch) Ranck
James (Hutch) Ranck 9
Slide 10: Wayne Osborn
Wayne Osborn 10
Slide 11: Jenny Seabrook
Jenny Seabrook 11
Slide 12: Gavin Rezos
zz ae a Gavin Rezos 12
Slide 13: David Robb
David Robb Managing Director and Chief Executive Officer 13
Slide 14: Cameron Wilson
Cameron Wilson 14
Slide 15: 2015 Annual General Meeting
2015 Annual General Meeting 15
Slide 16: Chairman's Address
Chairman’s Address 16
Slide 17: 2014 Financial Results
2014 Financial Results • Net loss of $62.5 million – Non-cash impairment of A$86.5 million (after tax) related to US operations • Free cash flow generation of $196 million • Net debt at 31 December 2014 of A$59 million • Gearing of 3.9% at 31 December 2014 • Significant funding capacity of ~$925 mil
Slide 18: Sustainability
Sustainability Caption in Arial 12 where possible. • Jacinth-Ambrosia received the South Australian Premier’s Award for – Environmental Excellence in 2014 – Excellence in Supporting Communities in 2015 18
Slide 19: Areas of Director Focus
Areas of Director Focus 19
Slide 20: Board Committees
Board Committees People and Performance Committee Members • Wayne Osborn (Chair) • Greg Martin • Gavin Rezos • Jenny Seabrook Nominations Committee Members • Greg Martin (Chair) • Jenny Seabrook • Gavin Rezos • James (Hutch) Ranck • Wayne Osborn • Marcelo Bastos Audit and Risk Committee Members • Je
Slide 21: Chairman's Address
Chairman’s Address 21
Slide 22: Managing Director's Address
Managing Director’s Address 22
Slide 23: Iluka's Approach
Iluka’s Approach Objective: Create and deliver value for shareholders Three key aspects: • flex asset operation in line with market demand • preserve and advance growth opportunities • act counter cyclically where appropriate 23
Slide 24: Willingness to Flex Production
Willingness to Flex Production Zircon Production and Sales TiO2 Production and Sales • Total Z/R/SR production lower than ‘high cycle’ levels • Total sales Z/R/SR increased 5% in 2014 • Higher Z/R/SR production expected in 2015 24
Slide 25: Managing Director's Address
Managing Director’s Address 25
Slide 26: Production Cash Costs
Production Cash Costs • Cost reduction focus during period of lower production • Solid margins maintained (Group EBITDA margins of >30% during low cycle) • Improving unit cash costs and margins expected as volumes grow (scale efficiencies) 26
Slide 27: Capital Expenditure
Capital Expenditure Relates to ~$250m average p.a. sustaining and growth capital expenditure, which is both an historical average and expectation for the company’s corporate planning cycle. • Capital expenditure of $66.9 million in 2014 related to major projects and Metalysis • Moderate capital expe
Slide 28: Inventory
Inventory 2008 – 2014 Inventory Levels $m 900 2014 FY Movement 800 700 600 $68.3m 500 400 300 200 $83.4m 100 0 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Work in Progress Finished Goods 28
Slide 29: Market Conditions
Market Conditions 29
Slide 30: Areas of Focus
Areas of Focus INTERNAL PROJECTS EXPLORATION MARKET DEVELOPMENT INNOVATION & TECHNOLOGY 30
Slide 31: Potential Acquisition of Kenmare Plc
Potential Acquisition of Kenmare Plc • Revised, non-binding proposal • All-share exchange offer – Kenmare shareholders to receive 0.016 new Iluka shares for each Kenmare share – subject to a number of pre-conditions • Iluka and Kenmare have agreed steps and deadlines towards satisfying pre-condition
Slide 32: Potential Acquisition of Kenmare Plc: Important Notices
Potential Acquisition of Kenmare Plc IMPORTANT NOTICES The Directors of Iluka accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure that such is the case), the information contained in this anno
Slide 33: Willingness to Act Counter Cyclically
Willingness to Act Counter Cyclically Tapira, Brazil • large mineralisation associated with long established phosphate operation – operated by Vale S.A. • high grade titanium dioxide ore, significant rare earth elements Metalysis, UK • Iluka equity holding of 18.3% – right to increase up to 24.9% in
Slide 34: Create and Deliver Value for Shareholders
Create and Deliver Value for Shareholders • Capable of generating high shareholder returns and cash distribution • Through ‘low cycle’ conditions, Iluka has maintained – attractive margins – free cash flow generation – balance sheet strength • Iluka’s current position – financial health of the compa
Slide 35: Iluka's Objective
Iluka’s Objective “To create and deliver value for shareholders” 35
Slide 36: Formal Business of the Meeting
Formal Business of the Meeting 36
Slide 37: Proxies Received for the Meeting
Proxies Received for the Meeting • Proxies received: – 335,570,323 shares – 80.15% of issued shares 37
Slide 38: Formal Business of the Meeting
Formal Business of the Meeting 38
Slide 39: Annual Financial Report
Annual Financial Report 39
Slide 40: Shareholder Questions
Shareholder Questions 40
Slide 41: Ordinary Resolutions
Ordinary Resolutions 41
Slide 42: Green Voting Card
Green Voting Card @ ILUKA Iluka Resources Limited ABN 34 008 675 018 ANNUAL GENERAL MEETING 20 MAY 2015 SHAREHOLDER/PROXYHOLDER ADMISSION & VOTING CARD THE DIRECTORS OF ILUKA RESOURCES LIMITED THANK YOU FOR YOUR ATTENDANCE PLEASE RETAIN THIS CARD UNTIL THE CLOSE OF THE MEETING 1 Please read the inst
Slide 43: Resolution 1: Re-election of Director
Resolution 1 Re-election of Director • Gavin John Rezos 43
Slide 44: Resolution 1: Proxies Received
Resolution 1 Re-election of Director • Gavin John Rezos Proxies Received For 334,280,613 Against 224,757 Proxy’s discretion 1,064,953 Abstain 128,209 44
Slide 45: Resolution 2: Adoption of Remuneration Report
Resolution 2 Adoption of Remuneration Report 45
Slide 46: Resolution 2: Proxies Received
Resolution 2 Adoption of Remuneration Report Proxies Received For 326,502,691 Against 6,954,555 Proxy’s discretion 1,356,018 Abstain 885,268 46
Slide 47: Resolution 3: Increase in Non-executive Directors' Fee Cap
Resolution 3 Increase in the non-executive Directors’ fee cap 47
Slide 48: Resolution 3: Proxies Received
Resolution 3 Increase in the non-executive Directors’ fee cap Proxies Received For 324,196,459 Against 9,343,314 Proxy’s discretion 997,023 Abstain 1,161,736 48
Slide 49: Green Voting Card
Green Voting Card @ ILUKA Iluka Resources Limited ABN 34 008 675 018 ANNUAL GENERAL MEETING 20 MAY 2015 SHAREHOLDER/PROXYHOLDER ADMISSION & VOTING CARD THE DIRECTORS OF ILUKA RESOURCES LIMITED THANK YOU FOR YOUR ATTENDANCE PLEASE RETAIN THIS CARD UNTIL THE CLOSE OF THE MEETING 1 Please read the inst
Slide 50: Iluka Resources Limited 2015 Annual General Meeting
Iluka Resources Limited 2015 Annual General Meeting Perth, Western Australia 20 May 2015