Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — Investor Presentation (March 2021)
27 slides from Rhi Magnesita Nv's investor presentation, March 2021
Slide 1: The driving force of the refractory industry
The driving force of the refractory industry Company presentation
Slide 2: Disclaimer
Disclaimer The consolidated financial statements subscribe for or purchase any securities, and presented here are consistent with the neither any part of this presentation nor any criteria of international accounting standards information or statement contained herein – IFRS issued by the Internatio
Slide 3: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Strategy 3
Slide 4: Refractories are essential for our modern world
Refractory industry overview Refractories are essential for our modern world 4
Slide 5: Refractories are critical to all high-temperature industrial processes
Refractory industry overview Refractories are critical to all high-temperature industrial processes ⬢Refractories are critical Main end markets consumable or investment €20 billion worldwide industry goods for high-temperature manufacturing processes ◼ Steel 7% ◼ Energy, chemicals 8% ⬢Fireproof mate
Slide 6: Refractories are continuously consumed during finished goods production
Refractory industry overview Refractories are continuously consumed during finished goods production Key industries Applications Replacement Costs Refractory characteristics Steel Basic oxygen-, 20 minutes to ~3.0% Consumable product electric arc furnace 2 months casting ladles Systems and solutions
Slide 7: A complex range of tailored refractory products are required for each application
Refractory industry overview A complex range of tailored refractory products are required for each application Bricks Example of refractory application for steel ladle 2 3 1 Permanent lining 2 Non-basic, 3 Basic, ex. 1 ex. Alumina Mag-Carbon 4 Monolothics and pre casts 5 6 8 7 9 4 Mixes 5 Pre Castab
Slide 8: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Strategy 8
Slide 9: RHI Magnesita is the world leader in refractories and a truly global company
RHI Magnesita overview RHI Magnesita is the world leader in refractories and a truly global company €2.3bn 12,000 €62m 2020 revenue Employees Annual investment in R&D and Technical Marketing 18 125+ Finished goods sites Countries shipped to worldwide 5 7 Raw material sites Combined sites 9
Slide 10: Full Year 2020 – Financial highlights
RHI Magnesita overview Full Year 2020 – Financial highlights Resilient margin and strong operating cash flow generation Revenue Adjusted EBITA margin Adjusted EBITA Operating Cash flow 2 €2.3bn 11.5% €260m €290m (23)%1 (250)bps1 (36)%1 112% cash conversion Net debt to adjusted EBITDA Liquidity 4 Ret
Slide 11: The refractory world of RHI Magnesita
RHI Magnesita overview The refractory world of RHI Magnesita Value creation from the raw material to the refractory product 11
Slide 12: Serving a blue chip client base
RHI Magnesita overview Serving a blue chip client base 12
Slide 13: Experienced management team with solid financial and strategic background
RHI Magnesita overview Experienced management team with solid financial and strategic background Executive Management Team Joined Background Stefan Borgas 2016 ⬢ Former CEO of Israel Chemicals Ltd and Lonza Group CEO ⬢ Several management positions at BASF Ian Botha 2019 ⬢ Former Finance Director of
Slide 14: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Strategy 14
Slide 15: Our strategic difference
Our strategic difference Largest Full suite of global footprint products & services Benefiting from scale and Delivering more than refractory materials proximity to customers to address customers’ needs Backward Low-cost operator integration Underpinning profitable growth Technical and financial adv
Slide 16: Optimally positioned to reach customers everywhere
Optimally positioned to reach customers everywhere Europe, CIS & Turkey 29 % Americas China & East Asia 40% 14% India, West Asia & Africa 17% Production facilities + More than 70 sales Raw material sites offices worldwide % revenues 16
Slide 17: Full suite of products complemented by knowledge and services
Full suite of products complemented by knowledge and services Example: Steel customer Iron Ore Technology Flow Solutions Coal Control Natural Electric Arc Injection Gas Furnace Steel refining facility Direct Reduction Coal Continuous Scrap Casting Blast Furnace Basic Oxygen Furnace Coke Full Line Ov
Slide 18: Offering full solutions to drive value at customers
Offering full solutions to drive value at customers >20% of revenue comes from cost per performance contracts Client cost structure Client benefit Current solutions portfolio ✓ Reduced downtime ✓ Lower refractory consumption ✓ Lower energy and other raw materials consumption ✓ Higher productivity RH
Slide 19: Expanding our solutions offering
Expanding our solutions offering Innovation to further enhance business model Current solutions offering Supply chain Refractory products Technical services Future innovation services Functional refractory On-site consulting & Warehousing Recycling of waste products supervision “Track & Trace”, just
Slide 20: R&D – From raw materials to refractories
R&D – From raw materials to refractories +540 technical experts across 90 countries to consult, develop and deliver innovative solutions directly to clients 2 3 540 R&D Hubs R&D Centers Experts1 (Austria and Brazil) (USA, China, India) 1,550 2.7% >15% Active patents R&D expenditure as Revenue from n
Slide 21: High quality sites globally, supporting unique solutions to the market
High quality sites globally, supporting unique solutions to the market Raw material Production sites Annual production Standard DBM1 Brumado (Brazil) ~720 k tonnes 90%-97% Eskisehir (Turkey) Hochfilzen (Austria) Breitenau (Austria) High purity DBM 1 Brumado (Brazil) ~340 k tonnes 97%+ Dashiqiao (Chi
Slide 22: Strategic initiatives will drive further growth in refractory and backward integration margins
Refractory margin Strategic initiatives will drive further growth in refractory and backward integration margins EBITA margin % RHI standalone RHI Magnesita 13.9% 14.0% 11.5% High Simple Unique quality, low Backward integration margin mining and solutions 9.7% cost geology for raw materials customer
Slide 23: Resilient business model with a clear strategy
Resilient business model with a clear strategy Resilient margins with further potential in Stable and growing refractory margin at 9.1% in 2020 (increase of 0.1ppts compared with 1 refractories 2019) €100m annualised EBITA cost savings by 2022 Adjusted EBITA margin contribution from backward i
Slide 24: Our 2025 Sustainability targets
Our 2025 Sustainability targets CO2 emissions Safety Reduce by 15% per tonne by 20251 Strong safety culture with zero accidents Diversity Energy Improve gender diversity on Board and in senior Reduce by 5% per tonne 2025 leadership to 33% by 2025 NOx and SOx emissions Community Reduce by 30%2, start
Slide 25: Sustainability leadership
Sustainability leadership Creating the path to de-carbonisation €50 million R&D investment in CO2 reduction technologies We aim to have the technology solution Capture of geogenic CO2 emissions (>50% of our emissions) by 2025 which will create the path for a Utilisation of captured CO2 through exter
Slide 26: Culture
Culture Critical to future growth 26
Slide 27: Get in touch
Get in touch RHI Magnesita Kranichberggasse 6 1120 Vienna Austria Phone: +43 50213 6200 E-mail: corporate.communications@rhimagnesita.com rhimagnesita.com Important notice: These materials do not constitute or form part, or all, of any offer of invitation to sell or issue, or any solicitation of any