Elvalhalcor Hellenic Copper And Aluminium Industry S.a. · ATHEX:ELHA
Elvalhalcor Hellenic Copper And Aluminium Industry — ElvalHalcor — Investor Presentation (April 2022)
59 slides from Elvalhalcor Hellenic Copper And Aluminium Industry's investor presentation, April 2022
Slide 1: Corporate Presentation
04.22 Corporate Presentation 1
Slide 2: Table of Contents
Table of Contents 01. ElvalHalcor Overview pg. 3 02. Aluminium Segment pg. 18 03. Copper Segment pg. 29 04. Financial Information pg. 39 05. Appendix pg. 51 2
Slide 3: ElvalHalcor Overview
01. Elval Halcor Over view. 3
Slide 4: ElvalHalcor at a Glance. Facts.
ElvalHalcor at a Glance. Facts. ElvalHalcor is a Greek-based leading global player in the non-ferrous metals industry. We are a More Among the Commercial export leading global than 80 biggest global orientation with manufacturer years of non-ferrous metal well-balanced of aluminium and experience pr
Slide 5: ElvalHalcor at a Glance. Annual Figures of 2021.
ElvalHalcor at a Glance. Annual Figures of 2021. 2.9 2.6 167 552 EUR billion EUR billion EUR million Thousand tons revenue Sales ex. Greece adj. EBITDA volume of sales >94 17 >700 EUR 0.03 EUR Countries State of the art million investments per share dividend for 2021 products are production during t
Slide 6: Corporate Structure Overview
Corporate Structure 93% 28% Overview. Other Shareholders Aluminium Copper segment 15.2% 84.8% segment 100% 100% 100% 89% 100% 49% 75% 80% 100% 50% 50% (1) (1) (1) (Acquired in 2021) 1. UACJ ElvalHalcor, HC Isitma and Nedzink are JVs 6
Slide 7: International Focus
International Focus. Highly extrovert business model with solid presence in more than 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 Africa turno
Slide 8: Pass-through Business Model
Raw Material Costs Sales Price EH Added Value Net Added (Fabrication and Value Transportation Cost Mark-up) Scrap Result LME +Premium Premium Scrap: Metal LME price net Result of scrap rebates LME Metal Price Pass-through Primary Aluminium, Copper Raw Material Costs: Accounting Pass-through Business
Slide 9: Consolidated Key Figures
Consolidated Gaining Al Key Figures. momentum. Cu Volumes (kTn) Revenue (€m) EBITDA (€m) 2,883 552 215 475 2,029 1. Adjusted for aluminium and copper price fluctuations and other non recurring items. 1,340 121 124 299 362 976 79 176 190 1,053 1,543 43 91 12M’20 12M’21 12M’20 12M’21 12M’20 12M’21 a-E
Slide 10: Mega trends. Enablers.
Mega trends. Enablers. Clean, circular Transition to economy climate neutrality Urbanization • Low carbon and • Electrification • Sustainable buildings recyclable products • Power storage • Energy efficiency in buildings • Products with high • E-mobility • Smart buildings recycled content • RES grow
Slide 11: Mega trends. Products.
Mega trends. Products. Aluminium segment’s products & solutions • Sheets and coils for beverage cans, • Sheet, plates, coils and profiles for marine applications and road, • Mill finish or coated sheets and profiles for food containers, closure caps and aerosol rail transportation vehicles. building
Slide 12: Overview of Growth Drivers
Overview of Growth Drivers. Global effort for reduction of plastic pollution is lea ding to increased demand for fully recyclable materials lik e aluminium and copper. Aluminium and Copper are 100% recyclable without loss of properties, making each of them a very sustainable material of choice for t
Slide 13: 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. 13
Slide 14: e-mobility. Cu-Al.
e-mobility. Cu-Al. 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 aluminium. Copper conte
Slide 15: Operational Highlights
Operational Highlights. Completion of Order of a Completion installation of a 6-high aluminium of New four-stand tandem cold rolling rolling mill aluminium hot rolling mill and a in Sofia Med. finishing mill. lacquering line. Increase in Hot-rolled Will increase capacity Increasing capacity by capac
Slide 16: Focus on... Tandem hot finishing mill
Focus on... The efficiency in Elval’s hot rolling production route, secured by the successful installation of the tandem hot finishing mill. New milestone Investment Hot rolling production route with single-stand reversing mill Hot rolling production route with tandem hot finishing mill x3 increase
Slide 17: Aluminium Strategic Priorities
Strategic Priorities. Capitalizing on market trends and own strengths to accelerate EBITDA growth Situation Overview / Actions Situation Overview / Actions Increase Installed Capacity (‘000tn)(1) • Currently operating near full capacity which is increasing to 375(1) thousand tons as the integration
Slide 18: Aluminium Segment
02. Aluminium Segment. 18
Slide 19: Aluminium Segment
Aluminium Segment. Invested over State of the art production Fifth largest player in Europe with 9 plants 92% facilities with 7% in Greece, with of the core products EUR 500m capabilities to annual production revenue sold in more in equipment produce wide coils market share capacity exceeding than 9
Slide 20: Continuous investments in state-of-the-art equipment & technology
Continuous investments in state-of-the-art equipment & technology. Rolling forward. Tandem hot Six-high cold Lacquering finishing mill rolling mill line • Commissioned by SMS Group • To be commissioned by Mino SpA • Contract awarded to technology • Precise, safe, and efficient hot rolling • Over 2 m
Slide 21: Revenue of Core Products by Market & Geographical Segment
Revenue of Core Products by Market & Al. Geographical Segment. Aluminium Revenue breakdown (FY 2021) By Market (% of tons) By Geographical Segment (% of €) America Greece HVAC&R Building & Construction 10% 8% 6% 18% UK Africa & oceania Energy & Power Networks 3% 2% 1% Other Europe 11% Transportation
Slide 22: Main Production Facilities
Main Production Facilities. 1. Expected to increase to 520,000 tons upon completion of the New €100 million investment Rolling Foil Rolling Foil Converting Oinofyta Greece Oinofyta Greece Mandra Greece Flat rolled aluminium products Foil for: Converted foil for: and solutions for: • Flexible packagi
Slide 23: Main Production Facilities
Main Production Facilities. Coated Products & Composite Panels Rolling Shutters Extrusion Plant St.Thomas Greece Nea Artaki Greece Magoula Greece Solutions for a complete range of coated aluminium • Aluminium rolling shutters and doors Aluminium extrusions for Architectural and Industrial products u
Slide 24: Aluminium - Rolled Products/Markets
Aluminium - Rolled Products/Markets. Packaging • Beverage cans • Food containers • Closure caps • Flexible packaging • Household foil Shipbuilding • Patrol vessels • Catamarans • Yachts • Ferries Commercial Transportation • Tipper trucks • Road silos • Refrigerator trucks • Cargo wagons Automotive •
Slide 25: Aluminium - Rolled Products/Markets
Aluminium - Rolled Products/Markets. Industrial applications • Renewable energy • Bus ducts • Lamp base • Telecommunication cabins Domestic applications • Cookware • White goods Building & Construction • Façades • Functional • Roofing coatings • Rain gutters • Flashings • False ceilings • Multi-laye
Slide 26: Aluminium - Extruded profiles/Markets
Aluminium - Extruded profiles/Markets. Industrial applications • Radiators • Stages • Industrial parts Building & Construction Residential • Doors & windows • Shading systems • Balustrades Building & Construction Large Scale Projects • Doors & windows • Partition walls • Façades 26
Slide 27: Certified Processes and Quality Standards
Certified Processes and Quality Standards. • Quality: certified according to ISO 9001:2015 • Environmental management system: certified with ISO 14001:2015 • Energy management system: certified according to ISO 50001:2018 • Health and safety management system: certified according to ISO 45001:2018 •
Slide 28: R&D&I & Technology
R&D&I & Technology. ElvalHalcor invests continuously in R&D&Ι of processes, products, and materials while promoting innovation. As an active member of Elkeme (Hellenic Research Centre for Metals), ElvalHalcor capitalizes on research to develop efficient technology, cutting-edge products and integrat
Slide 29: Copper Segment
03. Copper Segment. 29
Slide 30: Copper Segment
Copper Segment. State of the art production facilities European market Dispatches in High specifications Strong input in: for copper and copper alloy and leader in copper more than output according to • HVAC&R industry • Electrical industry titan zink products: • Largest tube mills in EMEA tubes. 67
Slide 31: Production Facilities
Production Facilities. Tubes Foundry Copper and Brass Oinofyta Greece Oinofyta Greece Sofia Bulgaria Copper tube plant producing: Foundry producing: Specialises in the production of rolled and extruded • Copper tubes with or without plastic coating or • Copper billets and slabs copper and copper all
Slide 32: Production Facilities
Production Facilities. Alloy Bars, Tubes and Wires Coins blanks and Rings Tubes 1. HC Isitma is a JV in which ElvalHalcor participates by 50% (1) Oinofyta Greece Pogoni Greece Gebze Turkey Specialises in the production of Specialises in the production Specialises in the production of extruded copper
Slide 33: Production Facilities
Production Facilities. 1. Nedznik is a JV in which ElvalHalcor participates by 50% Wires Titanium Zinc (1) Livadia Greece Budel Netherlands Capacity: Capacity: 8,500 tons/year enameled wires 36,000 tons/year 3,500 tons/year bare wires 33
Slide 34: Revenue of Core Products by Market & Geographical Segment. Cu.
Revenue of Core Products by Market & Geographical Segment. Cu. Copper Revenue Breakdown (FY 2021) By Market (% of tons) By Geographical Segment (% of €) Enamelled Wires Coins America Greece 2% 1% 5% 4% Cu Extrusion Asia 15% Africa & Oceania 6% 3% Rods Other Europe & Tubes Ms Cu Tubes 9% 10% 39% UK 9
Slide 35: Products & Main Applications
Products & Main Applications. HVAC&R Copper tubes Industrial • Air-conditioning Applications • Refrigeration • Fittings • Heat exchangers • High frequency cables • Boilers • Filters Copper tubes bare, • Various industrial applications pre-insulated or inner grooved from 4 up to 108 mm for: Building
Slide 36: Products & Main Applications
Products & Main Applications. Industrial Markets: Automotive • General mechanical Commercial engineering transportation • Heat exchangers • Deep drawing quality • Buttons • Connectors • Pre-rolled • Battery terminals • Power distribution bus bars Cu + Brass + Cu HPA • Relays • Switches • Fuses Sheet
Slide 37: Products & Main Applications
Products & Main Applications. Enamelled & Welding Wires • Enamelled copper and aluminium wires • Rectangular enamelled Copper wires • Copper welding wires Produced by Cablel Wires Extruded Products Coin Blanks & Rings Copper alloy and brass rods, bars, sections, tubes, flats, wires for: Construction
Slide 38: Certified Processes and Quality Standards
Certified Processes and Quality Standards. SPAIN - AENOR GERMANY - GL GERMANY - TUV CERT ROMANIA - AR ElvalHalcor’s capability to produce meets all international specifications and customer specific requirements, with the highest standards of QUALITY. RUSSIA - GOST FRANCE - CSTB GERMANY - DVGW FINLA
Slide 39: Financial Information
04. Financial Information. 39
Slide 40: Sales Volumes Evolution
Copper 125 370 245 2012 Aluminium Sales 132 372 240 2013 Sales Volumes (‘000tn) Evolution. 135 399 264 2014 137 268 405 2015 135 418 283 2016 underline solid 156 292 448 2017 Steadily increasing sales 312 169 482 and continuous momentum. 2018 170 310 479 2019 176 475 299 2020 190 362 552 2021 CAGR 2
Slide 41: Sales evolution per quarter
Sales evolution per quarter. Sales Volumes (‘000tn) +21.2% Aluminium 362 2019 2020 2021 310 299 -4.5% +11.4% -16.2% +36.8% -7.9% +23.2% +18.3% +15.3% 80 76 85 79 67 91 84 77 95 67 79 91 Q1 Q2 Q3 Q4 Total Copper +7.7% 2019 2020 2021 170 176 190 Source: Company information -2.4% +8.2% +7.1% +3.2% +2.2
Slide 42: a-EBITDA evolution per quarter
a-EBITDA evolution per quarter. a-EBITDA (€000's) +25.2% Aluminium 108 2019 2020 2021 97 87 -26.2% +38.7% -24.9% +42.1% -27.2% +24.7% +104.4% -0.9% 25 19 26 29 21 30 32 24 29 11 23 23 Q1 Q2 Q3 Q4 Total Copper +18.9% 2019 2020 2021 49 59 Source: Company information 43 +14.5% +13.4% +9.7% -5.1% -2.4%
Slide 43: Evolution of a-EBITDA per ton
Evolution Growing of a-EBITDA per ton. Volume and Profitability. Aluminium – Adjusted EBITDA per ton (€/tn) Copper – Adjusted EBITDA per ton (€/tn) 1. Adjusted for aluminium and copper price fluctuations and other non recurring items. 298 308 313 299 307 290 272 279 274 253 Source: Company informati
Slide 44: Consolidated Key Figures
Consolidated Key Figures. Revenue (€m) EBITDA vs Adjusted EBITDA(1) (€m) EBITDA Adjusted EBITDA 215 2,883 2,118 160 165 166 2,045 2,029 1,863 142 137 140 136 129 121 1. Adjusted for aluminium and copper price fluctuations and other non recurring items. 2017 2018 2019 2020 2021 2017 2018 2019 2020 20
Slide 45: Evolution of the Consolidated Working Capital and Net Debt
Evolution of the Consolidated Increase in Working Capital due to increase in price Working Capital and Net Debt. of Copper and Revenue increase during 2021. Consolidated Net Debt Breakdown (€m) ~ 20% 787 Working Capital % of Sales (1) 31.12.2019 623 566 31.12.2020 ~ 29% ~ 21% 1. Adjusted for alumini
Slide 46: Capex Evolution
Capex Accelerating investments Evolution to meet demand. 164 145 20 15 116 92 22 34 130 Source: Consolidated Financial Statements. 54 144 13 94 58 41 Copper €m Αluminium 2017 2018 2019 2020 2021 46
Slide 47: Consolidated Debt Maturity
Consolidated Increase of Debt with a long-term maturity for the financing Debt Maturity. of the investment programme. FY 2020 FY 2021 Total Loans & Borrowings: €657 m Total Loans & Borrowings: €879 m 206 194 452 463 23% 73% 30% 70% Long- Short- 70% Term Term 463 77% 673 312 Source: Consolidated Fina
Slide 48: Key Takeaways
Key Takeaways. ❶ Employing state of the art With a proven track- record, And significant and continuous equipment and a very having reached No1 in the Cu market share gains even in times competitive cost base. tubes segment in Europe. of hardship in the Rolled Cu segment. Ready to take advantage of
Slide 49: Income Statement
Income Statement. PROFIT & LOSS STATEMENT Amounts in € million 2019 2020 2021 Revenue 2,044.6 2,028.6 2,883.0 Aluminium Segment 1,026.2 975.8 1,340.3 Copper Segment 1,018.4 1,052.8 1,542.7 Cost of Sales (1,899.5) (1,893.6) (2,648.2) Gross Profit 145.1 134.7 234.8 Gross Profit Margin (%) 7.1% 6.6% 8.
Slide 50: Balance Sheet
Balance BALANCE SHEET Amounts in € million Dec-19 Dec-20 Dec-21 BALANCE SHEET HIGHLIGHTS Amounts in € million Dec-19 Dec-20 Dec-21 Sheet. Non-current Assets (i) Working Capital Property, Plant and Equipment 813.3 851.9 967.7 Inventories 470.0 503.8 697.6 Right of Use assets 19.3 19.7 22.0 Trade and
Slide 51: Appendix
05. Appendix
Slide 52: Environment Social Governance
Environment Social Governance. ESG risks mitigation is a priority for the Company’s responsible operation. Environment • Sustainable products supporting decarbonization technologies and circular economy Governance • Continuous improvement of our environmental and carbon footprint • Sound Business pr
Slide 53: Sustainable Operation
Sustainable Track record highlighting actions Operation. for continuous improvement in material issues. Aluminium State of the art Continuous, on line and Copper recycling industrial wastewater monitoring and Production of low carbon, treatment for the Oinofyta control of environmental circular prod
Slide 54: Corporate Restructuring
Corporate Restructuring. • Leading aluminium rolling manufacturer globally Sizeable • Dynamic commercial presence in European and global markets with Financial Integrated established commercial network across 21 countries strength production • Offers innovative solutions for packaging, transportatio
Slide 55: History Overview
History Overview. Increase of production Cross-border merger capacity for 9m-long by absorption of the Installation of the first slabs and installation of Greece-based Elval Holdings, Installation of new single Installation of Green melt furnace for the second Green melt Alcomet, Diatour and the Vio
Slide 56: History Overview
History Overview. Through its subsidiary Gains leading position among • Viohalco commenced Sofia Med, Halcor • European copper tubes Completion of its activities on Copper purchased the fixed manufacturers. 10-year extensive • Commencement of assets of KOZM and investment plan, which Signing of coop
Slide 57: Certifications by company/plant
Certifications by company/plant. ELVAL ELVAL VEPAL SYMETAL SYMETAL HALCOR CABLEL EPIRUS SOFIA MED COLOUR OINOFYTA MANDRA WIRES METALWORKS ISO 9001:2015 √ √ √ √ √ √ √ √ √ ISO 14001:2015 √ √ √ √ √ √ √ √ √ ISO 45001:2018 √ √ √ √ √ √ √ OHSAS 18001:2007 √ √ ISO 50001:2018 √ √ √ √ √ √ √ IATF 16949:2016 √
Slide 58: Disclaimer
Disclaimer. The information contained in this corporate presentation (CP) has been prepared by ElvalHalcor S.A. (the Company). It is based Forward Looking Statements on historical financial data and other information already publicly disclosed by the Company. It also includes information from Certai
Slide 59: www.elvalhalcor.com
www.elvalhalcor.com