34 slides from Elvalhalcor Hellenic Copper And Aluminium Industry's investor presentation, March 2023
Slide 1: 2022 Corporate Presentation
2022 Corporate Presentation HELLENIC FUND AND ASSET MANAGEMENT ASSOCIATION 1
Slide 2: Table of Contents
Table of Contents 03 06 24 31 ElvalHalcor Financial Megatrends Appendix at a Glance Highlights
Slide 3: ElvalHalcor at a Glance. Corporate Structure Overview
ElvalHalcor at a Glance. Corporate Structure Other Participations Overview. 93% 28% Other Shareholders Aluminium Copper segment 15.2% 84.8% segment 100% 100% 89% 100% 100% 100% 49% 75% 80% 100% 50% 50% (1) (1) (1) (Acquired in 2021) 1. HC Isitma and Nedzink are JVs 3
Slide 4: ElvalHalcor at a Glance. Figures
ElvalHalcor at a Glance. Figures. Νο.1 The 2nd copper tubes aluminium rolling >900 plant in Europe € million producer in Europe investments during (in terms of hot rolling the last 10 years Our financial and social footprint in Greece is significant capacity)* according to an impact study conducted
Slide 5: Emphasis on the Human Side
Emphasis on the Human Side. Our people are the key to our success. Our people and partners’ health We empower our people A rewarding work environment Continuous, ongoing training and safety is our priority and (improving leadership skills and based on equal opportunities for all and employee develop
Slide 6: Our power is our people
Our power is our people. We invest on the Health and Safety of our people. We offer international standards career opportunities reversing brain drain. We support young engineers with 12M paid internship programs.
Slide 7: Financial Highlights
Financial Highlights.
Slide 8: FY'22 Highlights
FY’22 Highlights • Very strong demand across most markets in 1st half of the fiscal year. • Demand allowed for passing-on of energy cost increases to prices and profitable spot sales. • Inflation, interest rate hikes and worries about global growth softened demand in the 2nd half, affecting some seg
Slide 9: International Focus
International Focus. Highly extrovert business model with solid presence in 94 countries around the globe and revenues generated abroad representing over. Greece 8% Other EU 62% 92% of total turnover Other Europe (non EU) 9% Production facilities UK 6% America 7% Asia 6% Group turnover Africa & Ocea
Slide 10: Macroeconomic Charts
Macroeconomic Charts. LME Prices TTF - Gas Metal prices on the uptrend affecting working capital and financing Increased gas and energy prices passing on to conversion prices in needs. Market volatility dominates. most markets TTF daily prices Aluminium Copper 400 10.000 4.500 350 9.000 4.000 300 25
Slide 11: Consolidated Cost Analysis
Consolidated Increased energy costs raises Group’s costs, Excluding Al, Cu, Zn, and other metals costs which are fully passed to Cost Analysis. customers. 2021 2022 Other operating Energy Other operating Energy 14% 13% 13% 18% Maintenance expenses Maintenance expenses 5% 5% Third party fees 12% Thir
Slide 12: Sales evolution per quarter
Sales evolution per quarter. Sales Volumes (‘000tn) +8.2% Aluminium +2 1.2% 392 362 2020 299 2021 2022 +10 .9% +12 .4% +9 .4% +0 .3 % 94 91 102 95 104 91 91 76 85 67 77 79 Q1 Q2 Q3 Q4 Total Copper 2020 -0.5% 2021 +7 .9 % 2022 190 189 176 +5 .1% +5 .8 % -3 .7 % -9 .4% 45 49 52 47 48 51 42 45 43 43 48
Slide 13: a-EBITDA evolution per quarter
a-EBITDA evolution per quarter. a-EBITDA (€m) +89.1% Aluminium 205 +2 5 .2% 2021 2022 +117.3% +98.1% 108 +106.6% +20.2% 87 66 58 53 26 30 24 29 23 23 28 19 21 Q1 Q2 Q3 Q4 Total Copper 2020 2021 +13.3% 2022 +18 .9% 66 +33.3% +47.8% 59 -19.6% 49 - 4.8% 16 21 19 16 14 14 13 12 13 9 14 13 Q1 Q2 Q3 Q4 To
Slide 14: a-EBITDA evolution per ton
a-EBITDA evolution per ton. By Segment (Eur/ tons) +75% AL 522,8 +2% 291,0 298,0 2020 2021 2022 +13% +12% 349,9 CU 310,5 278,4 2020 2021 2022 14 1. Source: Annual Financial Statements and company information.
Slide 15: IVA per ton evolution
IVA per ton evolution. By Segment (Eur/ tons) +30% 1.575,0 1.207,0 Al 2021 2022 +29% 1.418,2 1.099,2 Cu 15 Source: Company information
Slide 16: Revenue breakdown by market, Al and Cu
Al Cu Revenue breakdown (2022) Revenue Breakdown (2022) By Market (% of tons) By Market (% of tons) HVAC&R Building & Construction Transportation 8% Other Industrial 5% 16% Markets 2% Energy & Pow er Energy & Pow er Networks Netw orks 17% 1% Transportation Industrial 14% HVAC&R 21% Applications Indu
Slide 17: Revenue breakdown by geographical segment, Al and Cu
Al Cu Revenue breakdown (2022) Revenue Breakdown (2022) By Geographical Segment (% of €) By Geographical Segment (% of €) America10% Greece America 6% Greece 4% 10% Africa & oceania Africa & Oceania 2% UK 3% Asia 5% 1% Other Europe 11% Other Europe 7% Asia 6% UK 9% EU (excl. Greece) 58% EU (excl. Gr
Slide 18: Consolidated Key Figures
Al Cu Volumes (kTn) Revenue (€m) EBITDA (€m) +5.2% +28.8% +51.5% 3,714 553 581 326 2,883 1,927 215 392 362 1,340 248 124 1. Adjusted for aluminium and copper price fluctuations and other non recurring items. 362 392 190 189 1,543 1,787 91 79 2021 2022 2021 2022 2021 2022 a-EBITDA (€m) EBIT (€m) EBT
Slide 19: Deviation analysis on the Consolidated Profit before taxes
Amounts in €m Increased demand, mainly at the first semester of 2022, resulted in increased conversion prices. Increased energy costs mostly passed on to conversion prices. Increased Net Debt to finance the Impairments following increased working capital needs and the updated assumptions CAPEX and i
Slide 20: Analysis on the Consolidated Cash Flows
Amounts in €m Strong Increased needs for Working Increased debt to serve profitability. Capital are affected by the the cash flowneeds for uptrend in the metal prices increased working capital in international markets, and the continuation of the the growth in volumes. investment program. 37.5 Carry
Slide 21: Working Capital and Consolidated Net Debt
Increase in Working Capital Working Capital % of Sales Consolidated Net Debt Breakdown (€m) is attributable to the increased metal prices and volumes. ~ 22% +21.4% 956 31.12.2020 787 ~ 22% ~ 20% ~ 21% 31.12.2021 623 ~ 22% 31.12.2022 463 673 784 +43% 194 206 207 888 820 -34 -91 -35 698 Long- term Sho
Slide 22: Debt Maturity
Partially hedged from Majority of Debt on Long-term tenure, and short-term debt temporarily increased the potential increase due to spike in working capital of interest rates. Fix ed through Fix ed Rate Short term IRS use 30% 21% 18% ~ 21% Variable Rate Long term 52% 79% 371 274 207 138 Amounts in €
Slide 23: Capex Evolution
172 164 12 20 145 Source: Annual Financial Statements and Company information. 15 116 92 22 34 144 94 130 160 58 Copper €m Αluminium 2018 2019 2020 2021 2022 Capex Evolution. 23
Slide 24: Slide 24
Slide 25: Megatrends. Our way ahead
Megatrends. Our way ahead.
Slide 26: Megatrends. Enablers
Megatrends. Enablers. Circular Transition Technological economy to net zero Urbanization advancements • Low carbon and • Electrification • Sustainable and • Industry 4.0 recyclable products • Power storage smart buildings • Digitalization • Products with increased • E-mobility • Energy efficiency •
Slide 27: Megatrends. Products
Megatrends. Products. Aluminium segments’s products & solutions • Sheets and coils for beverage cans, • Sheet, plates, coils and profiles for marine • Mill finish or coated sheets and profiles food containers, closure caps and aerosol applications and road, rail transportation vehicles for building
Slide 28: Growth Drivers
Growth Drivers. Global effort for reduction of plastic pollution is leading to increased demand for fully recyclable materials like aluminium and copper. Aluminium and Copper are 100% recyclable without loss of properties, making each of them a very sustainable material of choice for the Circular Ec
Slide 29: Overview of Growth Drivers
Overview of Growth Drivers. Global effort for reduction of plastic pollution is leading to increased demand for fully recyclable materials like aluminium and copper. 29
Slide 30: e-mobility. Cu-Alu
e-mobility. Cu-Alu. Copper and aluminium demand will be substantially impacted by the growing market for electric vehicles (EVs) over the next decade. Copper is used in electric motors, batteries, inverters, wiring and in charging stations. Battery boxes are strong drivers for aluminum. Electric Veh
Slide 31: Strategic Priorities
Strategic Priorities. Capitalizing on market trends and own strengths to accelerate EBITDA growth. Situation Overview / Actions Situation Overview / Actions • Aluminium FRP plant operated near full capacity, which is up to 375 Increase Installed Capacity (‘000tn)(1) thousand tons, before the install
Slide 32: Thank You. Q&A
Thank You. Q&A.
Slide 33: Disclaimer
Disclaimer. The information contain ed in this corporate presentation (CP) has been prepared by Elv alHalc or S.A. (the Company). It is F o rward-Looking Statements based on historical financial data and other information already publicly disclosed by the Company. It also includes Certain statements
Slide 34: www.elvalhalcor.com
www.elvalhalcor.com