Slide 1: Half Year 2023 Results Investor Presentation (ASX cover letter)
MAGONTEC Limited ABN 51 010 441 666 Registered office Suite 1.03, 46A Macleay Street Potts Point, Sydney NSW 2011 T: +61 2 8084 7813 6 September 2023 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney, NSW, 2000 For personal use only HALF YEAR 2023 RESULTS IN
Slide 2: Magontec Limited Half Year 2023 Results
For personal use only Magontec Limited ASX:MGL Half Year 2023 Results Investor Presentation August 2023
Slide 3: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Magontec Limited (ABN 30 147 Past performance Investment Risk and other risks 131 977) (Magontec or the Company). This Presentation contains summary Past performance information given in this Presentation is given for Investment
Slide 4: Our businesses
Magontec Limited: ASX Code: MGL Our businesses For personal use only Metals Anodes Primary & recycled Magnesium and magnesium alloys powered anodes Pure Mg & Scrap Electronic Mg alloy & other alloying returns components components elements Mg alloy Cathodic ingots Corrosion Generic Protection CCP Sp
Slide 5: Overview: Dashboard for 1H 2023
Overview Dashboard for 1H 2023 For personal use only REVENUE EBITDA UNDERLYING NPAT* EPS $60.6 mil $5.9 mil $3.3 mil 3.1 cents CASH FLOW FROM HALF YEAR GROSS PROFIT NET CASH/(DEBT) UNDERLYING DIVIDEND / SHARE MARGIN OPERATIONS** $12.0 m (UNFRANKED) 23.3% $6.0 mil CASH ON HAND 0.6 cents HY22 28.5% $1
Slide 6: FY 2023 Half Year Result
FY 2023 Half Year Result Underlying Net Profit After Tax * ($M) $13.1m For personal use only • Mg price declined 41% from pcp, reducing inventory value • High inventories in China, widespread temporary pure Mg plant closures $4.8m • Strong market positions in each product $3.7m $3.3m $0.7m • Refurbi
Slide 7: Net cash position provides balance sheet flexibility
FY 2023 Half Year Result Net cash position of $12.0 million as at 30 June 2023 provides balance sheet flexibility For personal use only Net Cash/(Net Debt) ($M) and Gearing* (%) Underlying Operating Cashflow ($M)** $21.3 $12.0 28.8% 24.8% 16.0% $2.0 $1.2 $7.8 $6.8 $6.0 -2.3% -3.6% $2.7 -$6.9 $1.6 -$
Slide 8: Mg prices rising as Fugu plants close / coal prices falling
Mg prices rising as Fugu plants close for emissions upgrade / coal prices falling For personal use only Chinese Coal & Mg prices (1 Jan 2021 - 12 Jun 2023) Coal Mg ¥3,000 ¥70,000 ¥2,500 ¥60,000 ¥50,000 ¥2,000 ¥40,000 ¥1,500 ¥30,000 ¥1,000 ¥20,000 ¥500 ¥10,000 ¥0 ¥0 7
Slide 9: FY 2023 Half Year Result - Metals
FY 2023 Half Year Result - Metals Lower Gross Profit contribution from Metals division as pure Mg prices subside For personal use only Global metals gross profit (A$M) Global Mg alloy and specialist metals sales volumes (metric tonnes) $ 70 m $ 20 m First half Second Half $ 18 m $ 60 m 2023 $ 16 m $
Slide 10: Primary Mg alloy manufacturing: Golmud, Qinghai
Primary Mg alloy manufacturing: At Golmud in Qinghai province PRC Manufactures Mg alloys from pure Mg and other alloying element raw material For personal use only Adjacent to electrolytic Mg ~ 90% renewable Auto / other Mg alloy Re-supply from QSLM smelter energy die cast customers anticipated in 2
Slide 11: Mg alloy recycling: Bottrop and Santana
Mg alloy recycling: At Bottrop (Germany) and Santana (Romania) An essential part of the European and North American die casting industry For personal use only Recycling adds Mg is 100% Installed capacity Europe’s largest just 0.59 kg CO2 recyclable 24k mtpa Mg recycler equivalent/kg of Mg* Magontec
Slide 12: FY 2023 Half Year Result – CCP / anodes
FY 2023 Half Year Result – CCP / anodes Gross profit saw increase over 2H22 For personal use only Global CCP gross profit (A$M) Global magnesium anode sales volumes (metric tonnes) $ 40 m $ 15 m First half Second Half $ 12 m $ 30 m 2023 $9m 2022 $ 20 m $6m 2021 $ 10 m 2020 $3m - - 2019 1H20 2H20 1H2
Slide 13: Cathodic Corrosion Protection (CCP)
Cathodic Corrosion Protection (CCP) Every water tank in every house requires corrosion protection For personal use only New Buildings 20% CCP 80% Replacement Magnesium Electronic anodes Industry drivers Climate change Urbanisation (water heater installation) Switch from oil/gas to electric heat pump
Slide 14: Powered anodes a growth market
Powered anodes a growth market European Hydronic (water) Heat Pump Installations up to 400kW (Total Market) For personal use only 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Market for powered anodes is Government incent
Slide 15: Magontec Qinghai magnesium alloy cast house
Magontec Qinghai magnesium alloy cast house For personal use only Revenue and profit Currently operating Cast house impact opportunity Delayed SOP at low levels 2022 Target Mg production mtpa 5k 56k Revenue A$ $37m $200m+* Cast house Contribution Loss Profit Industry CO2 output High Low SOP Timetabl
Slide 16: Magontec Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* For personal use only Qinghai 35 Future Present 30 Kg CO2eq / kg Mg Includes credits for 25 use of waste gas 20 15 Includes credits for by-products 10 5 0 Golmud, China 2020 Qinghai 2020 Electrolysis Pidgeon process *German Aerospace Institu
Slide 17: Key financial highlights
FY 2023 Half Year Result – Key financial highlights Equity, Borrowings, Cashflow For personal use only 6 months to 6 months to (AUD ‘000) 30 June 23 30 June 22 Equity EBITDA 5,949 21,269 (72.0%) Reported Net Profit After Tax 2,397 13,799 (82.6%) Earnings per share (cents) 3.1 18.0 (82.8%) Dividend p
Slide 18: Magontec Limited Market Information
Magontec Limited Market Information For personal use only ASX Code: MGL Total Per Share Shareholder Structure 30 June 2023 Ordinary shares on issue 78,310,543 Book value of net assets – 30 June 2023 $59.5 million 76.0 cents/share 41.9%, Other 1 29.0%, QSLM Market capitalisation $29.4 million 37.5 ce
Slide 19: Thank You
Thank You For personal use only MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road, Suite 1.03 46a Macleay St 46240 Bottrop Xian Economic and Potts Point Sydney NSW Germany Development Zone AUSTRALIA 2011 Xian, China, 710021 Tel +61 2 8084
Slide 20: Magontec Limited Half Year 2023 Results
For personal use only Magontec Limited ASX:MGL Half Year 2023 Results Investor Presentation August 2023
Slide 21: Appendix – 1H 2023 Half Year Result Summary
Appendix – 1H 2023 Half Year Result Summary Income statement For personal use only 6 months to 6 months to (AUD ‘000) 30 June 2023 30 June 2022 Revenue 60,550 93,807 (35.5%) Cost of Sales (46,447) (67,053) (30.7%) Gross Profit 14,103 26,753 (47.3%) Gross Profit margin (%) 23.3% 28.5% Other income 29
Slide 22: Reconciliation of significant items in earnings
Appendix – 1H 2023 Half Year Result Reconciliation of significant items in earnings For personal use only (AUD ‘000) 6 months to 30-Jun-23 6 months to 30-Jun-22 Reported Net Profit Before Tax, unrealised FX & Significant Items 5,570 19,611 Significant items before tax Less non-cash equity writeback
Slide 23: Half Year 2023 Result by Region
Appendix Half Year 2023 Result by Region Segment P&L For personal use only 6 months to (AUD ‘000) EUR PRC Head office 30 June 2023 Gross Profit 11,935 2,168 - 14,103 Other income 127 162 2 290 Operating expenses (6,053) (2,144) (1,371) (9,568) Add back D&A in Cost of Sales 554 568 - 1,123 EBITDA 6,5
Slide 24: Half Year 2022 Result by Region
Appendix Half Year 2022 Result by Region Segment P&L For personal use only 6 months to (AUD ‘000) EUR PRC Head office 30 June 2022 Gross Profit 24,143 2,610 - 26,753 Other income 125 104 - 230 Operating expenses (3,784) (1,781) (1,238) (6,804) Add back D&A in Cost of Sales 540 550 - 1,090 EBITDA 21,