AMAG Austria Metall AG · VIE:AMAG
AMAG Austria Metall — H1 2019 Earnings Presentation
28 slides from AMAG Austria Metall's earnings presentation, Aug 1, 2019
Slide 1: Presentation: H1 2019
Presentation: H1 2019 August 1, 2019
Slide 2: Disclaimer
Disclaimer Note The forecasts, budgets and forward-looking assessments and statements contained in this presentation were compiled on the basis of all information available to AMAG as of the present time. In the event that the assumptions underlying these forecasts prove to be incorrect, targets b
Slide 3: H1 2019 highlights
H1 2019 highlights Growth in demand for primary aluminium and aluminium rolled products Market environment increasingly influenced by trade conflicts and economic slowdown Successful continuation of AMAG's growth path through ramp-up of new plants Revenue up 3% to EUR 554.6 million due to sh
Slide 4: Economic sentiment indicators worsening
Economic sentiment indicators worsening Purchasing manager indices for manufacturing industry 2017 2018 2019 Region/Country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun World 53 53 53 53 53 53 53 53 53 53 54 54 54 54 53 53 53
Slide 5: Global demand for primary aluminium
Global demand for primary aluminium Lower demand growth due to economic slowdown and trade conflicts Global demand growth Decline in global stocks [in millions of tonnes] [year-on-year change in %] [in millions of tonnes] Market balance (Production-Demand) 75 7.5% Global stocks 65 66 63 60 57 16 14.
Slide 6: Aluminium, zinc and copper price trends
Aluminium, zinc and copper price trends Significant price declines since start of 2018 15% 10% 5% 0% -5% -10% -15% -20% -19 % -20 % -25% -28 % -30% -35% Januar 18 April 18 Juli 18 Oktober 18 Januar 19 April 19 Juli 19 Aluminium Zinc Copper 6 6 Source: Bloomberg
Slide 7: Repeal of US tariffs on aluminium from Canada
Repeal of US tariffs on aluminium from Canada In the current market situation positive effect for AMAG Metal Division Casting Division Rolling Division Shipments of primary aluminium No exports to the US AMAG will deliver around 35,000 based on the current from Canada to the US tonnes of rolled prod
Slide 8: US import tariffs influence goods flows
US import tariffs influence goods flows Significant increase in exports from China to Europe around + 85 % around + 40 % despite additional 10 % import is leading to price pressure, tariffs due to improved price especially for standard products situation in the USA around – 60 % due to additional US
Slide 9: Attractive growth for rolled products
Attractive growth for rolled products Global consumption to grow by around 3 % in 2019 Global demand Demand trends by sector [Growth rates p.a. in %] Transport Construction Packaging 6.6% 5.5% 3.6% 3.1% 3.1% 3.2% 2.5% 2.2% 2019e Nachfrage weltweite up to 2019e up to Transport 2019e Bauup to 2019e up
Slide 10: Organic growth in rolled products
Organic growth in rolled products High growth momentum in shipments because of the ramp-up of new plants Rolling Division shipments [in '000 tonnes] +8.2 thousand tonnes 120.3 109.7 112.1 H1/2017 H1/2018 H1/2019 10 10
Slide 11: Shipments in the Rolling Division by industries
Shipments in the Rolling Division by industries Significant shipments increase in the transport sector Aircraft Automotive Packaging Other +3,300 +3,500 +2,500 -1,100 tonnes tonnes tonnes tonnes compared to compared to compared to compared to H1/2018 H1/2018 H1/2018 H1/2018 11 11
Slide 12: Sales cooperation with Marubeni Corporation and Marubeni-Itochu Steel (Japan)
Sales cooperation with Marubeni Corporation and Marubeni-Itochu Steel (Japan) Increased marketing of AMAG rolled products in the global automotive industry, initially with a focus on the Japanese market AMAG and the Japanese automotive industry are characterised by innovation, quality and maximu
Slide 13: H1/2019 results and outlook
AMAG-. AUSTRIA METALL H1/2019 results and outlook
Slide 14: Aluminium price
Aluminium price Significant price decline in recent quarters [3-month LME in USD/t] 2,500 2,257 2,119 2,164 2,028 2,068 1,978 2,000 1,856 1,915 1,880 1,818 1,819 1,500 1,000 500 0 14 14
Slide 15: Alumina price
Alumina price Increasing decline after high price fluctuations in 2018 [in USD / t] [as % of average 3-month LME aluminium price] 600 30% 539 516 448 26% 452 380 23% 23% 387 400 21% 368 20% 21% 20% 329 329 298 309 18% 18% 17% 16% 16% 200 10% 0 0% Alumina price in USD/t Alumina price as % to LME 15 1
Slide 16: Higher revenue due to volume growth
Higher revenue due to volume growth Volume growth in all divisions Aluminium price Shipment volumes, total Revenue (3-month LME) [in USD/t] [in tonnes] [EUR millions] -16 % +10 % +3 % 226,000 539.5 554.6 2,211 204,700 3.0 2.9 1,850 120,300 112,100 381.4 407.1 37,800 48,000 48.8 47.6 54,800 57,700 10
Slide 17: Revenue reconciliation
Revenue reconciliation Higher revenue due to year-on-year shipments growth [EUR millions] 40.8 -8.0 554.6 539.5 0.9 -26.3 7.7 Revenue Aluminium Currency Volume/mix Price/ Other Revenue H1/2018 price premiums H1/2019 17 17
Slide 18: EBITDA below H1/2018 mainly due to price-related decline in Metal Division
EBITDA below H1/2018 mainly due to the price- related decline in the Metal Division EBITDA EBITDA reconciliation by segment [EUR millions] [EUR millions] 100 8.0 86.2 -14.9 -8.9 86.2 90 1.6 (thereof (thereof (thereof IFRS16: 7.1) IFRS16: -8.0) 80 IFRS16: 0.8) 72.0 72.0 70 60 50 40 30 20 10 0 H1/2018
Slide 19: H1/2019 EBITDA reconciliation
H1/2019 EBITDA reconciliation Earnings down mainly due to lower aluminium price and price levels [EUR millions] 86.2 -11.5 13.4 -7.7 -12.3 72.0 3.9 mainly positive valuation effect of around EUR 5 million in the previous year EBITDA Aluminium Price/ Raw Volume/mix Other EBITDA H1/2018 price premiums
Slide 20: Q2/2019 EBITDA reconciliation
Q2/2019 EBITDA reconciliation Decline mainly due to lower aluminium price and price level as well as a positive one-off effect in the previous year [EUR millions] 47.2 -7.1 6.5 -7.4 -8.3 8.0 38.9 EBITDA Aluminium Price/ Raw Volume/mix Other EBITDA Q2/2018 price premiums materials/ Q2/2019 Energy 20
Slide 21: AMAG Group – key figures
AMAG Group – key figures Q2 Q2 +/- H1 H1 +/- 2019 2018 (%) 2019 2018 (%) Shipments, total 114,500 103,700 +10 226,000 204,700 +10 [in tonnes] Revenue 280.1 276.3 +1 554.6 539.5 3 [EUR millions] EBITDA 38.9 47.2 -8 72.0 86.2 -17 [EUR millions] EBITDA margin 13.9 % 17.1 % - 13.0 % 16.0 % - [in %] EBIT
Slide 22: Cash flow statement
Cash flow statement Significant improvement in free cash flow in H1/2019 Cash flow from operating Cash outflows from investing Free cash flow activities activities [EUR millions] [EUR millions] [EUR millions] 63.7 19.2 37.3 39.0 24.7 H1/2018 H1/2019 H1/2018 H1/2019 -18.2 • Significant increase mainl
Slide 23: Solid key balance sheet figures
Solid key balance sheet figures Net financial debt [EUR millions] Net financial debt: more than half of dividend payment Net financial debt Free Dividend Other Net financial debt already refinanced by free 31/12/2018 cash flow payment items 30/06/2019 cash flow Gearing ratio of 55.9 % after 50.1
Slide 24: Metal Division
Metal Division Earnings decline due to lower prices Q2 Q2 +/- H1 H1 +/- EBITDA 2019 2018 (%) 2019 2018 (%) [in EUR millions] Shipments, total 29,700 26,600 +12 57,700 54,800 +5 13.0 [in tonnes] 10.6 9.7 9.9 10.1 Revenue 190.9 204.6 -7 381.7 402.0 -5 8.6 [EUR millions] 5.6 EBITDA 5.6 9.9 -44 5.6 20.5
Slide 25: Casting Division
Casting Division Significant earnings growth compared with H1/2018 Q2 Q2 +/- H1 H1 +/- EBITDA 2019 2018 (%) 2019 2018 (%) [in EUR millions] Shipments, total 23,700 19,400 +22 48,000 37,800 +27 3.0 [in tonnes] Revenue 24.9 25.5 -3 53.6 52.1 +3 2.2 2.2 [EUR millions] 1.9 1.7 1.7 EBITDA 1.5 2.2 1.5 +49
Slide 26: Rolling Division
Rolling Division Successful continuation of ramp-up Q2 Q2 +/- H1 H1 +/- EBITDA 2019 2018 (%) 2019 2018 (%) [in EUR millions] 32.1 32.333.133.2 Shipments, 30.1 total 61,100 57,700 +6 120,300 112,100 +7 [in tonnes] 24.3 23.7 23.4 Revenue 237.3 227.8 +4 469.1 447.9 +5 19.8 [EUR millions] 14.8 EBITDA 33
Slide 27: FY 2019 outlook
FY 2019 outlook AMAG Austria Metall AG Expected growth in 2019 in global demand for primary aluminium and rolled products of 1 and 3 % respectively1) 2019 business trends significantly dependent on future market aluminium market price trends (including regional premiums), raw materials and curre
Slide 28: IR information
IR information Information about the AMAG share 2019 financial calendar ISIN AT00000AMAG3 February 28, 2019 2018 annual financial statements Ticker symbol: Vienna Stock April 10, 2019 Shareholders' General Meeting AMAG Exchange April 17, 2019 Dividend payment date ATX-Prime, ATX BI, ATX Indices GP,