Slide 1: Q2 & H1 2015 Interim Results
Q2 & H1 2015 Interim Results Dr Alistair Ruiters CEO 14 August 2015 www.afarak.com
Slide 2: Table of contents and Disclaimer
Table of contents Highlights Q2/2015 3 Disclaimer This presentation contains forward-looking statements. Group Financial performance 4 Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology, Sales 5 including the terms “believes”, “expects”, “in
Slide 3: Highlights Q2/2015
Highlights Q2/2015 Key focus Revenue Significant improvement 53.1 EURM +12.2% in margins during this No compromise on price vs volume quarter EBITDA Delivering on our commitments 7.6 EURM +4.3 EURM Strong US dollar and weak SA rand had a Zero Harm safety culture EBIT positive impact on Conti
Slide 4: Group Financial Performance
Group Financial Performance FOCUS ON Revenue EBITDA EBIT Q2 H1 Q2 H1 Q2 H1 53.1 EURM 93.8 EURM 7.6 EURM 12.3 EURM 5.8 EURM 8.8 EURM +12.2 % +3.6 % +4.3 EURM +5.9 EURM +4.4 EURM +6.4 EURM ZERO HARM EBITDA Margin EBIT Margin 14.4 % 13.1 % 11.0 % 9.3 % 7.1% (2014) 7% (2014) 3% (2014) 2.6% (2014) Group
Slide 5: Sales
Sales Sales (mt) Q2 2015 Sales (mt) H1 2015 6,466 1,317 10,722 1,317 5% 1% 7,970 5% 1% 15,344 7% 7% 22,586 37,610 18% 19% Speciality Alloys Mining Speciality Alloys Mining Speciality Alloys Processing Speciality Alloys Processing FerroAlloys Mining FerroAlloys Mining FerroAlloys Processing FerroAllo
Slide 6: Performance: Speciality Alloys
Performance: Speciality Alloys Production (mt) Processing • Decrease in processing was mainly due to lower production 15,228 at EWW, in order to manage the level of stockpiles. H1/15 19,682 16,090 H1/14 34,142 Processing Mining * Q2/15 7,365 Mining 13,685 7,902 Q2/14 14,448 • Mining activity at TMS
Slide 7: Performance: Speciality Alloys
Performance: Speciality Alloys Revenue EBITDA EBIT Q2 H1 Q2 H1 Q2 H1 26.1 EURM 49.8 EURM 4.5 EURM 7.9 EURM 3.9 EURM 6.8 EURM -9.8 % -2.3 % +1.8 EURM +4.2 EURM +1.8 EURM +4.4 EURM EBITDA Margin EBIT Margin 17.2 % 15.9 % 15.0 % 13.6 % (2014: 9.4%) (2014: 7.3%) (2014: 7.3%) (2014: 4.8%) The decrease in
Slide 8: Performance: Ferroalloys
Performance: Ferroalloys Production (mt) Processing • Processing at Mogale Alloys was higher than last year as the shutdown of the plant for periodic maintenance is 40,077 scheduled for the third quarter of 2015 instead of the second H1/15 211,172 quarter in 2015. 34,586 H1/14 155,177 Processing Min
Slide 9: Performance: Ferroalloys
Performance: Ferroalloys Revenue EBITDA EBIT Q2 H1 Q2 H1 Q2 H1 27 EURM 43.8 EURM 3.9 EURM 5.7 EURM 2.7 EURM 3.3 EURM +46.6% +10.8% +2.6 EURM +2 EURM +2.7 EURM +2.3 EURM EBITDA Margin EBIT Margin 14.6 % 13.0 % 10.1 % 7.6 % (2014: 7.1%) (2014: 9.2%) (2014: 0.2%) (2014: 2.4%) This improvement in revenu
Slide 10: Performance: Ferroalloys - Joint Venture share of profit
Performance: Ferroalloys - Joint Venture share of profit Revenue EBITDA EBIT Q2 H1 Q2 H1 Q2 H1 3.2 EURM 5.4 EURM 0.6 EURM 0.9 EURM 0.3 EURM 0.3 EURM +220.7% +37.6% +0.8 EURM +0.8 EURM +0.7 EURM +0.6 EURM EBITDA Margin EBIT Margin 18.8 % 16.9 % 9.8 % 5.7 % (2014: -23.3%) (2014: 2.8%) (2014: -39.4%) (
Slide 11: Investment projects: Speciality Alloys Segment
Investment projects: Speciality Alloys Segment Tavas mine - New concentration plant Classification: Green project, recycling Objectives Recycle tailings in a flexible manner Increase throughput Reduce COP Status: The plant is in commissioning as scheduled, production expected to start in Septe
Slide 12: Investment projects: FerroAlloys Segment
Investment projects: FerroAlloys Segment Vlakpoort mine - New mining operation Classification: Expansion project Objectives: Open a new mine in South Africa to increase sales volumes Status: Bulk sampling commenced in June 2015 and is expected to continue to Q3/2015 Mining licence is expected
Slide 13: Safety, health and sustainable development
Safety, health and sustainable development Afarak has set up a Health Safety, Environment and Communities committee (HSEC) with the aim of integrating the Group operations to address the social, environment, health and safety position of all stakeholders. While fully respecting all the current l
Slide 14: Global Market Review
Global Market Review Stainless Steel Ferrochrome Silico Manganese Demand has been showing signs of improving, as The spot market prices for most of the standard Demand for silico manganese seemed to be has rolling capacity which is being booked further South African charge chrome were stable to impr
Slide 15: Outlook for 2015
Outlook for 2015 The global growth in stainless steel production is expected to lead an increase in demand for chrome products in 2015. However, as occurred in 2014 where the chrome industry has not been able to increase chrome product prices it is unclear whether this upswing in prices will occur