Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (October 2018)
19 slides from Om's investor presentation, Oct 25, 2018
Slide 1: OM Holdings Limited Investor Presentation October 2018
For personal use only 1 OM HOLDINGS LIMITED Investor Presentation October 2018
Slide 2: Disclaimer
2 DISCLAIMER For personal use only This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all information that an inve
Slide 3: Group Overview
3 GROUP OVERVIEW For personal use only OM Holdings Limited with its subsidiaries, is a vertically integrated commodity player engaged in the business of mining, smelting, trading, and marketing of ores and ferroalloys. With an established history of over 20 years in the industry, the Group is listed
Slide 4: Group Snapshot
4 GROUP SNAPSHOT From Oct 2018, OMH was included in the S&P/ASX 300, and S&P/ASX Small Ords indices For personal use only Issued Shares 738.6 million shares $2.00 Share Price Performance Share $1.50 Share Price A$ 1.685 Metrics (as at 22nd 52 weeks Low / High A$ 0.45 / A$ 1.70 $1.00 Oct 18) Market C
Slide 5: Group Overview: Board of Directors
5 GROUP OVERVIEW OMH’s Board of Directors For personal use only o A qualified mechanical engineer, having graduated from the National University of Singapore Low Ngee Tong o Has over 38 years of experience in the steel, ferroalloy and building materials industries in Asia (Executive Chairman & CEO)
Slide 6: Action and Strategy
6 ACTION AND STRATEGY For personal use only Delivered (2017 – 2018) Short-term / Actionable Long-term / Strategic •Mn furnace conversion at OM Sarawak: •Sinter plant for cost reduction •Expand Mn alloy capacity Gains in total return •Tailings retreatment to efficiently •Develop Silicon metal product
Slide 7: Financial Highlights
7 FINANCIAL HIGHLIGHTS A$’million 2015 2016 2017 H1 2018 For personal use only Revenue 338.5 414.2 988.2 828.3 Gross Profit 6.1 60.1 209.6 184.6 GP Margin (%) 1.8 14.5 21.2 22.3 Adjusted EBITDA* (37.6) 35.0 186.1 174.5 Profit/(Loss) before tax (131.6) (8.1) 72.6 125.8 Profit/(Loss) (122.1) 7.9 92.7
Slide 8: What We Do
8 WHAT WE DO Raw Materials For personal use only Manganese Ore Quartz Products Ferromanganese Silicomanganese Ferrosilicon (incl. Refined Grade) Customers Steel Mills Foundries Magnesium Production Crude Steel High-tech Steels Cast Products • Flat products Stainless Steel • Electrical steels • Machi
Slide 9: What We Do
9 WHAT WE DO One-stop source of crucial ferroalloys to top regional and global steel-makers For personal use only ◦ Manganese ferroalloys (Silicomanganese and Ferromanganese) are smelted from manganese ore, and are essential to the production of steel with no known substitutes. Manganese ferroalloys
Slide 10: Operational Divisions
10 OPERATIONAL DIVISIONS For personal use only Exploration & Mining Smelting & Sintering Marketing & Trading Mining - Australia (100%) Smelting - China (100%) Marketing and Trading - ◦ Bootu Creek: Manganese ore ◦ OM Qinzhou: Production Singapore/China (100%) production target of 0.8 million capacit
Slide 11: Future Organic Growth
11 FUTURE ORGANIC GROWTH Creating value by doing simple things right For personal use only 1. OM Manganese – Tailings Retreatment Plant ◦ Beneficiation of existing fines stockpile, proven technology ◦ Cost effective production, ore fines production of 250k metric tons per annum ◦ Capex: ~A$12m, Oper
Slide 12: Mining Overview
12 MINING OVERVIEW Revenue contribution of A$136.4m in 2017, a significant turn around from 2016 For personal use only OM Manganese Ltd (“OMM”) Brief History Mine: Bootu Creek ◦ Exploration commenced in 2001 Location: Northern Territory, Australia ◦ Commenced mining at end of 2005, with first Produc
Slide 13: Smelting Overview
13 SMELTING OVERVIEW Green field projects developed in-house, organically grown revenue of A$545.6m in 2017 For personal use only OM Materials (Sarawak) Sdn Bhd (“OMSA”) OM (Qinzhou) Co Ltd (“OMQ”) 75% owned, J/V with Cahya Mata Sarawak Berhad, a Location: Guangxi, China leading industrial conglomer
Slide 14: Smelting – OM Sarawak Fundamentals
14 SMELTING – OM SARAWAK FUNDAMENTALS Project rests on strong fundamental pillars For personal use only Cahya Mata Sarawak Berhad (“CMSB”) OM Holdings Limited (“OMH”) • Conglomerate listed on Bursa Malaysia CMS • Major presence in Sarawak Experience, operational track record 25% • Wide portfolio ran
Slide 15: Smelting – OM Sarawak Aerial View
15 SMELTING – OM SARAWAK Aerial View For personal use only SUBSTATION FILTRATION SYSTEM B05 B04 RAW MATERIAL YARD B03 B02 B01 A03 PRODUCT WAREHOUSE A02 A01 PRODUCT WAREHOUSE FOR FUTURE RAW MATERIAL YARD DEVELOPMENT
Slide 16: Sarawak's Structural Competitiveness
16 SARAWAK’S STRUCTURAL COMPETITIVENESS OM Sarawak is positioned in the bottom quartile of the global cost curve For personal use only FeSi Production Cost Comparison Competitive Advantage ◦ Marginal producers in China operate on higher power costs (main cost component) ◦ OM Sarawak has a cost advan
Slide 17: Sarawak's Operating Environment
17 SARAWAK’S OPERATING ENVIRONMENT One of two Malaysian states on the island of Borneo For personal use only Sarawak, Malaysia ◦ Culturally diverse state, unique demographics ◦ Low population density ◦ Stable operating environment Sarawak Corridor of Renewable OM Sarawak Energy (SCORE) ◦ Samalaju In
Slide 18: Mid-Term Outlook
18 MID-TERM OUTLOOK For personal use only Macroenvironment Manganese • Continued infrastructure • Demand supported in-spite of support a boon to steel given record exports, due to mining trade tensions controls in China Ferroalloys Corporate • Global Mn alloy prices slipping • Refinance Sarawak proj
Slide 19: OM Holdings Limited
For personal use only 19 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA