Slide 1: Interim Report First 6 Months 2019/20
Interim Report First 6 Months 2019/20 Analyst Conference Call on May 15, 2020
Slide 2: Aurubis is currently only marginally affected by COVID-19 impacts
Aurubis is currently only marginally affected by COVID-19 impacts Employees Production » Group-wide task force meets daily » Production is being maintained at all sites » Strict hygiene measures have been » Safeguarding supply chains implemented group-wide » Isolated concentrate delivery bottlenecks
Slide 3: Aurubis: Reliable partner with strong balance sheet & liquidity
Aurubis: Reliable partner with strong balance sheet & liquidity Net financial position (in € million) (Net financial position = liquid assets - borrowings) 165 » The net financial position as at the end of March 139 2020 was € -112 million, significantly above the prior-year figure of € -328 million
Slide 4: Executive summary of Q2 2019/20
Executive summary of Q2 2019/20 » Metallo acquisition approved by the European antitrust authorities, closing on May 29 » First half closed with a solid result and stable balance sheet » Operating EBT of € 91 million (PY: € 103 million) » ROCE of 7.5 % (PY: 9.2 %), burdened by the impairments in Q4
Slide 5: Metallo acquisition unconditionally approved by European Commission on May 4, 2020
Metallo acquisition unconditionally approved by European Commission on May 4, 2020 » Aurubis acquires a technology leader and strengthens its footprint in the processing of non-ferrous recycling materials » Further diversifies Aurubis’ business model towards multi-metal recovery and strengthens Auru
Slide 6: Metallo's plants are strategically close to the main customers and suppliers
Metallo's plants are strategically close to the main customers and suppliers Metallo’s production sites Metallo Aurubis » Majority owner since 2011: TowerBrook Metallo Belgium – Beerse » Headquarters and main production facility Employees ~450 » Feed contains black copper from Berango Processing 220
Slide 7: The acquisition strengthens Aurubis' multi-metal portfolio
The acquisition strengthens Aurubis’ multi-metal portfolio of key metals especially, like copper, nickel, tin, zinc, and lead Aurubis and Metallo increase in metal production compared to current output Copper Gold Silver Lead Nickel PGMs Tin Minor Metals Platinum Selenium Osmium Tellurium Iridium Rh
Slide 8: Value accretive transaction – key transaction terms
Value accretive transaction – key transaction terms Structure » Acquisition of 100 % of the shares of Metallo Group and related entities Value » Enterprise value of € 380m on a cash-and-debt- consideration free basis » Synergies of about € 10-15m, of which largest part to be realized within three ye
Slide 9: Gross profit positively influenced by higher RCs on copper scrap and higher metal gains
Gross profit positively influenced by higher RCs on copper scrap and higher metal gains 6M 6M Change vs. prior (operating IFRS) 2019/20 2018/19 year Revenues €m 6,013 5,660 6% Gross profit €m 570 552 3% EBITDA €m 169 173 -2 % EBIT €m 95 106 -10 % EBT €m 91 103 -12 % Consolidated net income €m 70 78
Slide 10: Still very robust key figures provide room for future growth
Still very robust key figures provide room for future growth 6M 6M Target 2019/20 2018/19 ROCE* % 7.5 9.2 15.0 Equity ratio % 55.8 51.6 > 40.0 (equity / total liabilities) Debt coverage** 0.3 0.9 < 3.0 6M 6M Additional KPIs 2019/20 2018/19 Capital expenditure €m 124 93 (including finance leases) Cap
Slide 11: Share buyback program started in March
Share buyback program started in March Xetra turnover (in units) Price (in €/share) » Volume: up to € 200 million 60,0 1.200.000 » Period from March 19, 2020 to September 17, 2021 50,0 1.000.000 » Target: to create treasury stock » as acquisition currency 40,0 800.000 » for financing purposes (e.g.,
Slide 12: Market conditions in first half-year 2019/20: Good conditions on scrap markets continue
Market conditions in first half-year 2019/20: Good conditions on scrap markets continue Trend in significant market prices and refining charges 140% 100 % = Sept. 2018 120% Copper premium 100% European refining charges for copper scrap no. 2 Exchange rate (US$/€) 80% Copper price (settlement) TC/RCs
Slide 13: COVID-19 impact on concentrate market balance
COVID-19 impact on concentrate market balance: Short-term increase of low-cost primary capacity mainly from China Concentrate market balance Key assumptions (in kt CU in concentrate) Wood Mackenzie CRU » Tuticorin to restart in 2021 Forecast » Hayden closed for 2020 » 500 Mount Isa to close in 2023
Slide 14: Copper in concentrate supply and demand forecast
Copper in concentrate supply and demand forecast Cu concentrate supply by geography Cu concentrate demand by geography (2014-29f, in mill. t) (2014-25f, in mill. t) 20000 20000 Oceania 15000 15000 Europe North America Africa Asia 10000 10000 Central & South America 5000 5000 0 0 2014 2016 2018 2020f
Slide 15: COVID-19 impact on scrap RCs: Significant uncertainty
COVID-19 impact on scrap RCs: Significant uncertainty Cu scrap discount and Cu price development (2002-20, in €/t) » Metal price development is generally a key driver of #2 Scrap Discount - Europe (EUR/t) scrap availability and thus correlates highly with Cu Refined Cu Price (EUR/t) scrap discounts
Slide 16: Segment MRP: Good concentrate throughput despite shutdown in Hamburg
Segment MRP: Good concentrate throughput despite shutdown in Hamburg Operating results for Segment Metal Refining & Processing (MRP) (first 6 months FY 2019/20) 6M 6M » Operating EBT of € 140 million significantly up on previous Segment MRP year 2019/20 2018/19 EBIT (in €m) 142 114 » Scheduled shutd
Slide 17: Segment FRP: Continued weak demand largely compensated by stringent cost management
Segment FRP: Continued weak demand largely compensated by stringent cost management Operating results for Segment Flat Rolled Products (FRP) (first 6 months FY 2019/20) 6M 6M » Result at prior-year level despite lower sales volumes thanks to Segment FRP 2019/20 2018/19 stringent cost management EBIT
Slide 18: Market outlook for 2019/20
Market outlook for 2019/20 Copper price Reuters 2020 poll from April 9: US$ 5,200/t. Copper We anticipate a stable supply for our smelters with a substantially concentrates lower benchmark. We are supplied for Q3 at good conditions, despite lower scrap Copper scrap availability expectations. Sulfuri
Slide 19: Efficiency can only be one part of the solution
Efficiency can only be one part of the solution. The second part of the solution is cost reduction. We have a clear objective: We want to become the most efficient and sustainable integrated smelter network worldwide. Focus on efficiency Ideas will be adjusted and transferred Full Focus on costs Exp
Slide 20: FY 2019/20 forecast confirmed
FY 2019/20 forecast confirmed In total, we expect an operating EBT between € 185 and 250 million and an operating ROCE between 8 and 11 % for fiscal year 2019/20. Interval forecast Operating EBT Operating ROCE in € million in % Group 185-250 8-11 Segment MRP 230-310 11-16 Segment FRP 3-7 0-3 May 202
Slide 21: Our priorities for 2020
Our priorities for 2020 » Keeping our people healthy and safe » Metallo integration » Operational excellence » Performance Improvement Program » Sustainability » Additional growth projects May 2020 21
Slide 22: Vision 2025: Metals for Progress
VISION Ps Passion for metallurgy VISION for progress AAurubis Metals for Progress VISION 2025 with you 22
Slide 23: Your IR Contacts
Your IR Contacts: Angela Seidler Elke Brinkmann VP Investor Relations & Senior Manager Corporate Communications +49 40 7883-2379 +49 40 7883-3178 e.brinkmann@aurubis.com a.seidler@aurubis.com Financial Calendar » Q3 2019/20 August 11, 2020 » Annual Report 2019/20 December 9, 2020 May 2020 23
Slide 24: Legal disclaimer
Legal 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 ris