Slide 1: Financial Results 2017
Financial Results 2017 Welcome March 1st, 2018
Slide 2: Disclaimer
Disclaimer • This document has been compiled by Afarak Group plc (“Afarak”). While the information contained herein is believed to be accurate, no representation or warranty, express or implied is or will be given by Afarak or its respective directors, employees or advisors or any other person as to
Slide 3: Agenda
Agenda 1. Q4 results 2. 2017 results 3. Sustainability 4. Main achievements 2017 5. Questions and Answers 3
Slide 4: Q4 performance
Q4 performance 4
Slide 5: Segments, Q4 2017
Segments, Q4 2017 Speciality Alloys FerroAlloys Production, mining (mt) Planned maintenance works Higher level of activity at at Kavak mine, Turkey Stellite. Improved mining at Mecklenburg Production, processing Higher production at EWW Higher productivity at (mt) Mogale Financial Performance; Reven
Slide 6: Results, Q4 2017
Results, Q4 2017 € million Q4 2017 Q4 2016 Y-o-Y Comments Revenue 50.6 44.4 Higher sales volumes and prices in both Speciality and FerroAlloys segments EBITDA 2.6 4.3 Better profitability from operations. Group result was hurt by the joint- EBIT 1.2 2.7 venture due to financial items and deferred ta
Slide 7: Focus on Joint-Venture
Focus on Joint-Venture REVENUE (€mln) 20 • Afarak has a 51% share in Synergy Africa 15 Joint Venture which operates the Stellite 10 and Mecklenburg mines 5 • Important contributor to Afarak’s 0 Q1 Q2 Q3 Q4 FY performance • In Q4 2017, the JV share of profit was 2016 2017 EBITDA (€mln) 6 negatively i
Slide 8: 2017 results
2017 results 8
Slide 9: Record performance in 2017
Record performance in 2017 EBITDA (€ mln) EBIT (€ mln) 20 15 18.0 11.1 17.2 9.9 10 15 14.0 5 1.7 9.2 0 10 8.4 2012 2013 2014 2015 2016 2017 -5 -1 5.5 5 -10 -8 -15 0 2012 2013 2014 2015 2016 2017 -16.8 -20 9
Slide 10: Volatility persists…
Volatility persists… FeCr Benchmark price (USD/lb) 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10
Slide 11: … as well as seasonality
… as well as seasonality EBITDA (€ MLN) 14 12 10 8 6 4 2 0 -2 2013 2014 -4 2015 2016 2017 Q1 Q2 Q3 Q4 11
Slide 12: Segments, FY 2017
Segments, FY 2017 Speciality Alloys FerroAlloys Production, mining (mt) Scheduled stoppages at TMS Increased activity at Stellite; mines, Turkey higher yields from beneficiation technology. Gradually improving mining at Mecklenburg Production, processing Higher productivity at EWW Higher productivit
Slide 13: Results, FY 2017
Results, FY 2017 € million 2017 2016 Y-o-Y Comments Revenue 198.8 153.6 Better performance reflects higher EBITDA 18.0 5.5 production levels and strong market conditions. EBIT 11.4 -1.0 Increased sales volumes and better prices in both Speciality and FerroAlloys segments Profit 6.7 -0.9 Material min
Slide 14: Financial indicators & balance sheet
Financial indicators & balance sheet 2017 2016 Comments Return on Equity (ROE), % 3.0 -1.6 Significantly improved, due to strong Return on Capital Employed (ROCE), % 8.2 0.9 performance during 2017 Equity ratio, % 66.3 67.7 Balance sheet remains robust, slight change Gearing ratio, % 0.7 -3.3 due to
Slide 15: Sustainability
Sustainability 15
Slide 16: Health & Safety
Health & Safety • In 2017, no fatalities were reported • During quarter four 2017, there were 15 (Q4/2016:21) recordable injuries, of which 2 (Q4/2016:2) were lost-time injuries • These injuries resulted in 135 (Q4/2016: 630) lost days due to injury, reducing the lost time injury frequency rate to 3
Slide 17: Environment
Environment • Mine rehabilitation and water management, conservation & recycling play a key role in the Company’s environmental strategy • We are investing in a 2.8MW heat recovery unit in Mogale, reducing CO2 emissions and saving energy • During 2017, the Company is investing in projects that will
Slide 18: Community investment
Community investment • Afarak strongly cares for the Magakala Community in the areas of Sefara and Madifahlane in South Africa • Afarak is currently financing a road-building project which will connect the main road to the local school • Afarak Group continues to support the Magakala Community in va
Slide 19: Main achievements 2017
Main achievements 2017 19
Slide 20: Main achievements 2017 bullets
• More vertical-integration • Additional cycles of beneficiation in Stellite • Introduction of higher added value products • Preparation for underground mining in Mecklenburg • The acquisition of the Zeerust Chrome Mine will further extend Afarak’s production capacity • Vlakpoort mining licence expe
Slide 21: Zeerust Chrome Mine
Zeerust Chrome Mine • ZCM mine has an opencast ore resource of about 2 million tons if mined up to 35 metres high wall. Additional capacity exists in the 1.2 million tons tailings dump • Through its beneficiation technology, Afarak will be able to produce significant quantities of concentrate at com
Slide 22: 2017: A good year for Afarak
2017: A good year for Afarak 22