Om Holdings Ltd. · ASX:OMH
Om — 4th Asian-Pacific Ferroalloys & Steel International Conference 2017
21 slides from Om's conference presentation, Sep 28, 2017
Slide 1: OM Holdings Limited Presentation (ASX cover letter)
OM HOLDINGS LIMITED For personal use only (ARBN 081 028 337) No. of Pages Lodged: 21 28 September 2017 ASX Market Announcements ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam OM HOLDINGS LIMITED PRESENTATION Please find attached a copy of the presentation that is being deliver
Slide 2: OM Materials (Sarawak) Sdn. Bhd. – Driving Industry Transformation
For personal use only 1 OM MATERIALS (SARAWAK) SDN. BHD. Driving Industry Transformation 4th Asian-Pacific Ferroalloys & Steel International Conference September 2017 – Miri, Sarawak
Slide 3: Disclaimer
For personal use only 2 DISCLAIMER This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH and its subsidiaries (“OM Group”). The information in this presentation does not purport to be complete or to pr
Slide 4: Disclaimer (Cont'd)
3 DISCLAIMER (Cont’d) This presentation contains "forward‐looking" statements within the meaning of securities laws of applicable jurisdictions. For personal use only Forward‐looking statements can generally be identified by the use of forward‐looking words such as "may", "will", "expect", "intend",
Slide 5: OMH Group Overview / Market Update / Sarawak Update
For personal use only 4 OMH GROUP OVERVIEW MARKET UPDATE SARAWAK UPDATE
Slide 6: Group Introduction
5 GROUP INTRODUCTION For personal use only OMH together with its subsidiaries (the OM Group), is an integrated commodity player engaged in the business of mining, smelting, trading, and marketing ferroalloys and ores. It operates across the value chain and in 2014 commenced production at its flagshi
Slide 7: Company Overview
6 COMPANY OVERVIEW World-class expandable mining and alloy smelting assets For personal use only Exploration & Mining Ferroalloy Smelting Marketing & Trading Mining - South Africa* Smelting - Malaysia Equity Sales, Marketing ◦ Tshipi Borwa: Manganese ore ◦ OM Sarawak : Ferrosilicon and Agency, Third
Slide 8: OMH Operating Segments & Fundamentals
7 OMH OPERATING SEGMENTS & FUNDAMENTALS Manganese Ore Manganese Alloys Ferrosilicon For personal use only ◦ Sarawak to absorb ◦ OM Sarawak provides a ◦ A changing landscape in increasing quantities of large scale, competitive, China provides Mn ore long term supply solution opportunities for Sarawak
Slide 9: OMH Value Proposition
8 OMH VALUE PROPOSITION For personal use only Long term focus Strategy Asset value maximization Significant opportunities for future value Asset value generation Sarawak production optionality Disciplined cash allocation Cash generation Cost efficient Delivering on Sarawak plant a unique achievement
Slide 10: OMH Group Overview / Market Update / Sarawak Update
For personal use only 9 OMH GROUP OVERVIEW MARKET UPDATE SARAWAK UPDATE
Slide 11: Global Upswing in Capacity Utilization Ratios
10 GLOBAL UPSWING IN CAPACITY UTILIZATION RATIOS For personal use only Global Monthly Capacity Utilization Ratios 2011 - 2017 ◦ Steel utilization ratios 100% recovered from a low of 65% Mn alloy Steel 90% 83% 80% ◦ Mn alloy utilization ratio 72% 70% recovery after a period of 70% inventory destockin
Slide 12: Robust Demand Growth Supporting Mn Alloys Market Balance
11 ROBUST DEMAND GROWTH SUPPORTING MN ALLOYS MARKET BALANCE For personal use only Supply & Jan-Jul 2017 % Change in % Change in Supply Demand demand In million mt supply demand balance China 5.4 -4% 5.1 0% 0.3 Rest of Asia & Oceania 2.6 25% 2.1 6% 0.4 CIS 1.1 8% 0.6 -2% 0.5 Europe 0.7 1% 1.1 4% -0.5
Slide 13: Sarawak to Drive the Next Transformation Cycle
12 SARAWAK TO DRIVE THE NEXT TRANSFORMATION CYCLE The next Asian supply transformation is inevitable For personal use only Asian Mn alloy seaborne supply snapshot Malaysia Asia high cost 100% ◦ Pre 2009 seaborne supply <1% dominated by China 90% 80% 35% ◦ Seaborne supply dominance 70% shifted to S.K
Slide 14: Sarawak Mn Ore Demand Set to Grow
13 SARAWAK MN ORE DEMAND SET TO GROW Sarawak underpinning Asian Mn ore demand growth For personal use only Sarawak scenario based on IMnI Mn ore demand by 2021 installed capacities: Alloy + 1.5% CAGR China Ore + 2.4% CAGR Alloy + 1% Ore + 2% • ~500kt Mn alloy capacity • 1 - 1.2 million mt Mn ore dem
Slide 15: OM Sarawak – Supply Adaptability
14 OM SARAWAK – SUPPLY ADAPTABILITY Adaptable smelting hub in sync with market dynamics For personal use only DEVELOPMENT PLAN (NO. OF 25.5 MVA FURNACES) Original Plan 16 Fesi • Construction completed Q4 2015 • Empty ground to commissioning: 1½ years Current Plan 8 Fesi 8 Mn Alloys • Successful conv
Slide 16: OMH Group Overview / Market Update / Sarawak Update
For personal use only 15 OMH GROUP OVERVIEW MARKET UPDATE SARAWAK UPDATE
Slide 17: OM Sarawak – Fundamentals
16 OM SARAWAK – FUNDAMENTALS Project rests on strong fundamental pillars For personal use only OM Holdings Limited (“OMH”) Cahya Mata Sarawak Berhad (“CMSB”) • Conglomerate listed on Bursa Malaysia CMS Experience • Major presence in Sarawak Operational track record 25% • Wide portfolio ranging from
Slide 18: Project Partner – Cahya Mata Sarawak Berhad
17 PROJECT PARTNER – CAHYA MATA SARAWAK BERHAD Core businesses of our partner For personal use only Cement Construction Materials Construction & Road Maintenance Property Development Samalaju Development
Slide 19: Project Background
18 PROJECT BACKGROUND Powered by local hydropower, supported by local infrastructure For personal use only Sarawak Corridor of Renewable Energy (SCORE) Samalaju Port Launched in 2008, supported by competitively priced hydropower. Main hydroelectric project Bakun is 120km away from OM 2014 H1 2017 Sa
Slide 20: Project Background
19 PROJECT BACKGROUND Strategically sited with access to global markets For personal use only *Indicative sailing days US (West Coast) ~35 days East Asia ~6 days ◦ Situated on the sea route between east and west, easy access to raw materials and market Europe ◦ Population ~2.4 million, low density ~
Slide 21: OM Holdings Limited
For personal use only 20 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA
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