Slide 1: Magontec Limited 2016 Annual Results Presentation
Magontec Bottrop Magontec Romania Magontec Limited (ASX: MGL) 2016 Annual Results Presentation 27th February 2017
Slide 2: Disclaimer
DISCLAIMER This Presentation has been prepared by Magontec Limited (ABN 30 147 131 977) (Magontec or the Company). This Presentation contains summary information about Magontec and its activities current as at the date of this Presentation. The information in this Presentation is of a general backgr
Slide 3: 2016 Highlights
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights Financial Underlying Net Profit After Tax up $1.37m on the previous corresponding period (+$1.12m v -$0.25m) Strong EBIT margin improvement in PRC primary Mg alloy production and EU Mg alloy recycling Mg anode (CCP) volumes + 7
Slide 4: 2016 Highlights – Financials/Profit Analysis
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights – Financials/Profit Analysis AUD '000s 31-Dec-16 31-Dec-15 % Chg EBITDA $4,254 $3,297 29% Depreciation & amortisation ($1,713) ($1,811) -5% EBIT $2,541 $1,486 71% Interest expense ($1,100) ($1,291) -15% EARNINGS BEFORE TAX $1,440 $19
Slide 5: 2016 Highlights – Financials/GP
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights – Financials/GP AUD '000s 31-Dec-16 31-Dec-15 % Chg Sale of goods $128,096 $139,758 -8% Cost of sales ($113,670) ($126,824) -10% Gross Profit $14,426 $12,934 12% Gross margin (%) 11.3% 9.3% 22% GP Margins driven by: Improved Mg all
Slide 6: 2016 Highlights – Financials/G&A
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights – Financials/G&A AUD '000s 31-Dec-16 31-Dec-15 % Chg Other income $844 $908 -7% Impairment ($303) ($881) -66% Travel accommodation and meals ($682) ($697) -2% R&D ($418) ($301) 39% Promotional activity ($67) ($45) 47% Information tec
Slide 7: 2016 Highlights – Financials/FX effects
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights – Financials/FX effects AUD '000s 31-Dec-16 31-Dec-15 % Chg FX gain/(loss) ($143) $771 -119% FX realised $355 $478 -26% FX unrealised ($498) $293 -270% Rising A$ v RMB key contribution to negative unrealised FX effect on profitabilit
Slide 8: 2016 Highlights: Gross Profit and Margin
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights Gross Profit 12% increase in Gross Profit and $ 16.0m $ 14.4m $ 14.0m $ 12.9m overall GP margin now 11.3% $ 12.0m $ 10.0m $ 8.5m $ 8.0m GP improvements driven by rising $ 6.0m $ 4.0m volumes and production efficiency $ 2.0m gains
Slide 9: 2016 Highlights: EBITDA and Underlying NPAT
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights EBITDA 29% lift in EBITDA to $4.3 million $ 5.0m $ 4.3m $ 4.5m reflecting strong improvement in $ 4.0m $ 3.5m $ 3.3m earnings leverage on flat G&A $ 3.0m $ 2.5m costs $ 2.0m $ 1.6m $ 1.5m $ 1.0m $ 0.5m Underlying NPAT up $1.37 mi
Slide 10: 2016 Highlights: Cash Flow and Net Debt
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights Cash flow from underlying operations Cash flow from underlying $6.0m $ 4.9m operations up 40% to $4.9m $5.0m $4.0m $ 3.5m Capital expenditure requirements $3.0m $2.0m in 2017 expected to be ~$3m $1.0m $ 0.7m - Rising cash flow
Slide 11: Highlights: Metal Sales, Anodes and ROIC
Magontec Limited – FY2016 Annual Report Highlights 2016 Highlights MGL worldwide Mg alloy metal sales (Suzhou recycling plant closed in 2015) Metal volumes steady overall although 40,000 continued rising trend in EU recycling 35,000 Metric tonnes 30,000 25,000 Mg anode volumes higher but revenue
Slide 12: 2017 Outlook
Magontec Limited – FY2016 Annual Report Highlights 2017 Outlook Start of Production at Qinghai remains some months away Impact of Qinghai metal sales likely to be material only after some months of production European recycling and PRC primary Mg alloy volumes remain robust Mg anode (CCP) vo
Slide 13: Magontec Group
MAGONTEC GROUP Magontec Limited Magontec GmbH Magontec Xi’an Co., Ltd Magontec SRL Head Office Industriestraße 61 No 40, Feng Cheng 3 Road Hammerer No 3, P.C. 317280 Suite 1.03, 46A Macleay St 46240 Bottrop Xi’an Economic and Santana, Arad Potts Point, Sydney NSW 2011 GERMANY Technological Developme