Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — Investor Presentation (November 2025)
51 slides from Rhi Magnesita Nv's investor presentation, November 2025
Slide 1: RHI Magnesita Investor Presentation November 2025
RHI Magnesita Investor Presentation November 2025 Investor Presentation | November 2025 1
Slide 2: Content
Content 1 Introduction to RHI Magnesita 2 HY 2025 financial results 3 10-month trading update 4 Appendix Investor Presentation | November 2025 2
Slide 3: Refractories are essential for our modern world
Refractories are essential for our modern world Concrete Copper Steel Glass Aluminium 1,500°C 1,350°C 1,760°C 1,650°C 1,250°C 1 tonne of STEEL 1 tonne of CEMENT 1 tonne of GLASS 1 tonne of ALUMINIUM 1 tonne of COPPER demands ~10-15 Kg demands ~1 Kg demands ~4 Kg demands ~6 Kg demands ~3 Kg of refrac
Slide 4: Leading global supplier of refractories
Leading global supplier of refractories Example - Electric Arc Furnace (“EAF”) refractories Key product ranges Roof centre piece Bricks Mixes 63% of product revenue 25% of product revenue Average selling price Average selling price c.€1,500 per tonne c.€900 per tonne Injector area Slag door area Flo
Slide 5: Global refractory production network
Global refractory production network Regional finished goods production - local versus imports Europe finished goods exports % value by destination region, 2023 % imported % produced in region North America 38% Asia & Australasia 22% Africa 16% India 9% South America 8% NME 5% China 2% Europe &Türki
Slide 6: Refractory applications by customer industry
Refractory applications Customer industries1 Main application Lifetime and costs Refractory characteristics Part of customers’ operational Steel 20 minutes to 2 months expenditure 69% of revenues Basic oxygen furnace, Electric arc furnace, c.3% of customers’ costs Systems and solutions for complete
Slide 7: Financial highlights FY 2024
Financial highlights FY 2024 Significant cash generation driven by resilient profitability and working capital release WSA steel production Revenue Adjusted EBITA Adjusted EBITA margin Adjusted operating cash flow -1% €3.5bn €407m 11.7% €419m -80 bps 2% 0% 30 bps 0% M&A Adjusted EBITDA Dividend Work
Slide 8: End markets and customer industries
End markets and customer industries Investor Presentation | November 2025 8
Slide 9: Raw material and refractory process overview
Raw material and refractory process overview Investor Presentation | November 2025 9
Slide 10: Raw material vertical integration
Raw material vertical integration Key raw material sites and shipment routes 2023 Extent of vertical integration % raw materials sites and shipment routes 2023 Key % % Magnesite-and dolomite-based (basic) Internal raw materials raw material volume 64 8 28 External raw materials Total volume of raw m
Slide 11: Brumado, Brazil
Brumado, Brazil Magnesite raw materials Investor Presentation | November 2025 11
Slide 12: Hochfilzen, Austria
Hochfilzen, Austria Magnesite and dolomite Investor Presentation | Novemberraw 2025 materials 12
Slide 13: Capital allocation framework
Capital allocation framework After maintenance capex and dividend, M&A, organic investments and buybacks compete for capital Leverage target 1.0 - 2.0x and up to c.2.5x for compelling M&A opportunities M&A pipeline presents opportunity to continue consolidation of the refractory industry Resilient m
Slide 14: M&A growth opportunity
M&A growth opportunity Strengthening a global leadership position in the refractory industry USA Europe India China Areas of focus for P-D Refractories future M&A Refrattari Trezzi Jinan New Emei Resco Group 1 East Asia Dalmia GSB Chongqing SORMAS MIRECO Middle East Hi-Tech Seven DBRL Alumina
Slide 15: Low carbon steel opportunity
Low carbon steel opportunity Transition to EAF, DRI and ESF is a strong positive growth driver for RHI Magnesita Tonnes of CO2 per tonne of steel 1. Electric smelting furnace (“ESF”) is required to be paired with a Direct Reduced Iron (“DRI”) furnace for 97% of global iron ore supply that does not m
Slide 16: Our performance in context
Our performance in context RHIM has navigated the downturn in steel production without margin decline, whilst executing significant M&A at the bottom of the refractory market EBITDA margin Global financial China China raw COVID-19 Energy crisis/ World Steel Production YoY change crisis downturn mate
Slide 17: Investment case
Investment case (i) EBITDA and free cash flow comparable to FTSE 100 peers; (ii) highest free cash flow yield in the sector; (iii) compelling M&A growth story; (iv) high operational gearing to market recovery EBITDA 20241 Free cash flow 20241 Free cash flow yield 1 €m RHI Magnesita €m %, 2024 2 FTSE
Slide 18: Half Year Results 2025
Half Year Results 2025 30 July 2025 Investor Presentation | November 2025 18
Slide 19: Health & Safety
Health & Safety A core value at RHI Magnesita Long term reduction in injury rates since 2018 Our safety culture transformation includes initiatives designed to encourage greater reporting of incidents: ⁃ LTIF increased to 0.18 (H1 2024: 0.11) ⁃ TRIF increased to 0.50 (H1 2024: 0.41) TRIF LTIF 1.07 S
Slide 20: Financial highlights
Financial highlights Adverse market environment deteriorates EBITA margin to 8.4%, strong recovery expected in H2 Revenue Adjusted EBITA Adjusted EBITA Adjusted operating Cash Conversion margin cash flow €1.7bn €141m 8.4% €175m 124% 2% constant currency (26)% (260)bps (21)% 7.8ppt Resco Adjusted EBI
Slide 21: H1 margins temporarily lower with recovery expected in H2
H1 margins temporarily lower with recovery expected in H2 EBITA uplift in H2 supported by industrial order book, price increases and cost savings Price and mix drive lower EBITA H1 25 vs H1 24 €m Record low Adjusted EBITA margin in H1 2024 ⁃ Price decline 5% 197 19 ⁃ Unfavourable mix, lower value pr
Slide 22: Price and volume detail
Price and volume detail Both volume and price declined in the base business, offsetting the contribution from M&A Lower pricing offset by M&A Revenues, € million 5% decline in average prices per tonne on fixed cost base 1,710 5% 1,677 ⁃ Reflects pricing and mix changes -2% ⁃ Price competition most i
Slide 23: Steel business overview
Steel business overview Pricing declined in the base business by 5% on fixed cost base, compressing margins Revenue 1,2 Sales volumes decreased by 1% excluding M&A €m 22.6% 23.8% Heavy price competition in commoditised segments, 20.3% particularly in India, China, East Asia and META. Average pricing
Slide 24: Steel segment performance by region
Steel segment performance by region Strong growth in India but with weak pricing. All other regions saw flat or reduced WSA production volumes Steel Segment Revenue H1 2025 10% 15% China & East Asia Europe & CIS 8% Middle East, Turkiye, Africa €242m €117m 2% China & East Asia North America 18% India
Slide 25: Industrial business overview
Industrial business overview Margin reduction due to mix change towards lower value Cement segment as NFM projects move into H2 Revenue Decline in Industrial Projects revenue driven by Glass and €m NFM 27.3% 26.1% ⁃ Low glass demand reflects weak end market 21.7% conditions ⁃ NFM end markets are str
Slide 26: Industrial project deferrals weigh on H1 profitability
Industrial project deferrals weigh on H1 profitability Deferral of NFM projects to H2 leads to weakest H1 EBITA and margin for Industrial business since 2021 Industrial pricing evolution and Industrial Adjusted EBITA (€m) Industrial average NFM and Glass order book rebased to 100 price per ton NFM r
Slide 27: Management action already taken, will take effect in H2
Management action already taken, will take effect in H2 (i) Reduce costs, (ii) fulfil industrial project orders, (iii) increase prices, (iv) grow steel volumes EBITA €m 20 10 High certainty 9 230 - Likely 250 21 Uncertain 2026 onwards benefit from 50 effects of: ⁃ SAP upgrade 10 ⁃ SG&A outsourcing 1
Slide 28: Resco integration update
Resco integration update Integration project progressing despite complex market dynamics The Resco acquisition is a major step forward for RHI Magnesita‘s €m, 5 months to 30 June 2025 North America business and is fulfilling expectations in 2025 YTD 90 Initial integration priorities have included: ⁃
Slide 29: US tariffs
US tariffs Dynamic outlook on announced tariffs of Europe and Brazil imports Expected tariff rates effective 1 August 2025 Current ‘reciprocal’ tariff rates at 10% on nearly all 15% trading partners Announced updated tariff rates on select trading 0%, critical mineral partners take effect in August
Slide 30: US recycling
US recycling BPI Inc. joint venture opportunity to raise US recycled raw material usage rates New recycling joint venture agreed with BPI, Inc. In June 2025, Targeted to 22,5% subject to normal closing conditions increase to c.20% BPI, Inc. was founded in 1982 and is a well-established industrial 18
Slide 31: Profit and loss summary
Profit and loss summary Lower gross margin due to decline in pricing on fixed cost base €m H1 2025 H1 20241 Change Revenue 1,677 1,728 -2.9% Competitive pricing environment and drop in Industrial projects demand are key drivers of weaker P&L Gross profit 348 416 -16.2% performance in the period Gros
Slide 32: H1 2025 revenue bridge
H1 2025 revenue bridge Base business revenue declined by 2% excluding Resco contribution and adjusting for FX €m 1,728 18 1,710 31 1,677 91 90 H1 2024 Revenue FX headwind H1 2024 Revenue at Lower sales volumes Price and mix Resco H1 2025 Revenue constant currency Investor Presentation | November 202
Slide 33: H1 2025 EBITA bridge
H1 2025 EBITA bridge Competitive price environment and drop in Industrial Projects demand key drivers of decline in EBITA €m 197 190 7 17 13 7 10 141 -47 11 Steel €m 49 India -17 32 Meta -13 3 0 Europe & -52 -7 CIS RoW -10 Industrial €m Industrial -49 Projects Cement & -3 lime H1 2024 FX tailwind H1
Slide 34: Low refractory margin of 7.3ppts in H1 2025
Low refractory margin of 7.3ppts in H1 2025 Full year Group margin guidance reduced to 10.5 – 11.0%, from 11.5% original guidance FY FY H1 H2 FY H1 2022 2023 2024 2024 2024 2025 RHI standalone RHI Magnesita Refractory EBITA (€m) 298 348 176 203 379 122 13.9% 14.0% Vertical integrated EBITA (€m) 84 6
Slide 35: Cost detail
Cost detail High alumina prices in Q4 2024 impacted COGS in H1 2025. Gas, freight and labour also rising in 2025 YTD Cost of goods sold Raw materials Energy €m DBM prices low compared to 2024 Gas prices normalized, oil price stable Rebased to 100 Rebased to 100 1.200 DBM 97% (China) Gas (NL TTF) 1,3
Slide 36: Working capital
Working capital Closely managed according to inventory coverage and revenue intensity targets Inventory Working capital balances % of L3M annualised revenue % of L3M annualised revenue 27.9% 29.5% 28.9% €m 22.7% 23.9% 23.4% 997 944 987 1,183 1,102 H1 2024 H1 2025 excluding M&A H1 2025 1,068 Accounts
Slide 37: Capital expenditure
Capital expenditure Guidance reduced to €130 million following review of projects €m Capital expenditure guidance for FY 2025 reduced from €145 million to €130 million 252 Total capex in H1 was €45 million, consisting of €27 million of project capex and €18 million maintenance 2025 capex guidance no
Slide 38: Network optimisation investments
Network optimisation investments Planned restructuring and capital expenditure to realise benefits of 2022-23 M&A and Resco Network optimisation investment 2025-27 Planned network optimisation expenses in Europe, South €m America and USA plant footprint adjustments, following 60 Resco acquisition an
Slide 39: Cash flow
Cash flow Strong cash conversion of EBITA at 124%, driven by reduced working capital in base business Adjusted operating cash flow and cash Conversion Net debt bridge Dec 24 - Jun 25 €m1 €m 1,583 102% 88% 111% 102% 103% 124% 40% -84% 438 418 419 359 290 333 155 175 1,252 1,250 14 13 -236 57 153 2018
Slide 40: Net debt and gearing
Net debt and gearing Pro forma leverage maintained within guided range for M&A, significant available liquidity Net debt and liquidity Pro forma leverage of 3.1x4 (H1 2024: 2.4x), temporarily €m 3.1x above target gearing range 2.3x 2.3x Leverage expected to reduce in H2 2025 given Liquidity1 managem
Slide 41: 10-month trading update
10-month trading update Delivering in a challenging backdrop Strong second half recovery delivered in a challenging market P&L 2025 guidance environment Weak demand, no recovery Adjusted EBITA for the four months, July to October, €136 Revenue visible million, adjusted EBITA margin 12.7%. Adjusted E
Slide 42: Investment case
Investment case Industry leader with significant value generation potential from M&A led growth strategy ✓ Strategy to grow through M&A in the fragmented global refractory market is by far the best route to generate value for shareholders in a low growth environment ✓ Strong momentum in transaction
Slide 43: Appendix
Appendix Investor Presentation | November 2025 43
Slide 44: Cash flow reconciliation
Cash flow reconciliation €m H1 2025 H1 2024 Adjusted EBITDA 211 258 Share based payments - gross non-cash 1 5 Working capital changes 57 86 Changes in other assets and liabilities (49) (60) Investments in PPE, IA (45) (68) Adjusted operating cash flow 175 221 Income taxes paid (33) (36) Cash effects
Slide 45: Net financial expenses
Net financial expenses €m H1 2025 H1 2024 Net interest expenses (22) (19) Interest income 7 14 Interest expenses (29) (32) FX effects (13) 14 Balance sheet translation (27) 23 Derivatives 14 (9) Other net financial expenses (12) (8) Present value adjustment (1) - Factoring costs (5) (5) Pension char
Slide 46: Reconciliation of adjusted earnings
Reconciliation of adjusted earnings Items excluded Items excluded Items excluded from adjusted EPS: from adjusted H1 2025 from adjusted H1 2024 (€m) H1 2025 performance adjusted H1 2024 performance adjusted EBITA1 87 54 141 174 16 190 ⁃ €(25) million in restructuring expenses related to plant closur
Slide 47: Impact of foreign currency movement
Impact of foreign currency movement EBITA sensitivity in H1 2025 2024 and H1 2025 exchange rates Appreciation vs EUR Depreciation vs EUR Increase / Increase / H1 2024 H1 2024 H1 2024 H1 2025 (decrease) (decrease) Opening Closing Average Average Unit in EBITA (€m) Unit in EBITA (€m) EUR: Rate Rate Ra
Slide 48: Return on invested capital
Return on invested capital Group ROIC1 H1 2025 H1 2024 Average Invested Capital (€m) 3,021 3,089 NOPAT (€m) 82 136 ROIC (%) 5.5% 8.8% Vertical integration ROIC H1 2025 H1 2024 Average Invested Capital (€m) 443 495 NOPAT (€m) 9 6 ROIC (%) 4.2% 2.6% Refractory ROIC H1 2025 H1 2024 Average Invested Cap
Slide 49: Our performance in context
Our performance in context RHIM has navigated the downturn in steel production without margin decline, whilst executing significant M&A at the bottom of the refractory market EBITDA margin Global financial China China raw COVID-19 Energy crisis/ World Steel Production YoY change crisis downturn mate
Slide 50: Peer group benchmarking
Peer group benchmarking (i) EBITDA and free cash flow comparable to FTSE 100 peers; (ii) highest free cash flow yield in the sector; (iii) compelling M&A growth story; (iv) high operational gearing to market recovery EBITDA 20241 Free cash flow 20241 Free cash flow yield 1 €m RHI Magnesita €m %, 202
Slide 51: Investor Relations
Investor Relations Alexander Ordosch Head of Investor Relations +43 699 1870 6162 | alexander.ordosch@rhimagnesita.com Biko Hüster Investor Relations Manager +43 699 1870 6128 | biko.huester@rhimagnesita.com investor.relations@rhimagnesita.com RHI Magnesita Kranichberggasse 6 1120 Vienna Austria Imp
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