Aurubis Ag · XETR:NDA
Aurubis — 9M 2019/20 Earnings Presentation
22 slides from Aurubis's earnings presentation, Aug 11, 2020
Slide 1: Interim Report First 9 Months 2019/20
Interim Report First 9 Months 2019/20 Analyst Conference Call on August 11, 2020
Slide 2: Executive summary of Q3 2019/20
Executive summary of Q3 2019/20: Aurubis is still only marginally affected by COVID-19 impacts » 9-month result once again reflects a solid profit and stable balance sheet » Operating EBT of € 133 million (PY: € 125 million) » ROCE of 8.5 % (PY: 7.3 %), burdened by the impairments in Q4 2018/19 in S
Slide 3: Gross profit demonstrates the resilience of the Aurubis business model
Gross profit demonstrates the resilience of the Aurubis business model 9M 9M Change vs. prior (operating IFRS) 2019/20 2018/19 year Revenues €m 8,896 8,681 2% Gross profit €m 848 835 2% EBITDA €m 254 234 9% EBIT €m 139 132 5% EBT €m 133 125 6% Consolidated net income €m 103 95 8% August 2020 3
Slide 4: Still very robust key figures provide room for future growth
Still very robust key figures provide room for future growth 9M 9M Target 2019/20 2018/19 ROCE* % 8.5 7.3 15.0 Equity ratio % 48.5 52.7 > 40.0 (equity / total liabilities) Debt coverage** 0.7 0.9 < 3.0 9M 9M Additional KPIs 2019/20 2018/19 Capital expenditure €m 163 143 (including finance leases) Ca
Slide 5: Metallo acquisition: Focus after closing is now on integration
Metallo acquisition: Focus after closing is now on integration and leveraging synergies » Aurubis acquires a technology leader and strengthens its footprint in the processing of non-ferrous recycling materials » Further diversifies Aurubis’ business model towards multi-metal recovery and strengthens
Slide 6: The acquisition strengthens Aurubis' multi-metal portfolio
The acquisition strengthens Aurubis’ multi-metal portfolio of key metals especially, like copper, nickel, tin, zinc, and lead Production / sales volumes and metal portfolio Aurubis Group thereof Metallo 9M 2019/20 Jun 2020 Recycling input t 234 23 Copper scrap/ t 278 5 blister copper input Copper ca
Slide 7: Metallo purchase price reconciliation
Metallo purchase price reconciliation In € million Cash and cash equivalents 42 Receivables 48 Inventories 135 Property, plant, and equipment 228 Intangible assets 63 Financial liabilities 85 Provisions 15 Deferred tax liabilities (netted) 50 Net identifiable assets acquired 366 plus goodwill 9 Tota
Slide 8: Successful placement of ESG-linked Schuldschein loan (SSD)
Successful placement of ESG-linked Schuldschein loan (SSD) » Forerunner within the sector: Aurubis is the first European Strong investor appetite company in the basic materials industry with an ESG-linked SSD High oversubscription » It will be used for general company financing as well as for the en
Slide 9: Sustainability is a fundamental component of the Aurubis strategy
Sustainability is a fundamental component of the Aurubis strategy Aurubis Sustainability Strategy 2018-2023, main sustainability ratings & initiatives 68 of 100 (2018) AA (2018) 74 of 100 (2019) AA (2019) 2020: Gold Gold = the best 5 % of rated companies Best Newcomer (2015) MDAX Leader (2016) Score
Slide 10: Aurubis is committed to obtaining the Copper Mark label
Aurubis is committed to obtaining the Copper Mark label » Launched for copper producers in March 2020 » Basis: UN SDGs & Risk Readiness Assessment » Independent assessment every 3 years » Regular review of criteria (evolving system) » Chain of custody later » Focus on steady improvement of the secto
Slide 11: Market conditions in first nine month 2019/20: A mixed and volatile picture
Market conditions in first nine month 2019/20: A mixed and volatile picture Trend in significant market prices and refining charges 140% 100 % = Sept. 2018 120% Copper premium 100% Exchange rate (US$/€) 80% Copper price (settlement) European refining charges 60% for copper scrap no. 2 TC/RCs for cop
Slide 12: Segment MRP: Very good concentrate throughput in Q3
Segment MRP: Very good concentrate throughput in Q3 Operating results for Segment Metal Refining & Processing (MRP) (first 9 months FY 2019/20) 9M 9M » Operating EBT of € 194 million significantly up on previous Segment MRP 2019/20 2018/19 year EBIT (in €m) 197 179 » Very good concentrate throughput
Slide 13: Segment FRP: Strict cost management prevents a loss
Segment FRP: Strict cost management prevents a loss from being recorded despite very weak market conditions Operating results for Segment Flat Rolled Products (FRP) (first 9 months FY 2019/20) 9M 9M » Massive decline in the order situation at all sites Segment FRP 2019/20 2018/19 » Markets for conne
Slide 14: Efficiency improvement/cost reduction program
Efficiency improvement/cost reduction program We have a clear objective: We want to become the most efficient and sustainable integrated smelter network worldwide. Focus on efficiency Ideas will be adjusted and transferred Focus on costs SG&A Full Expanded Non-Metal Procurement P&L effect by scope F
Slide 15: Market outlook for 2019/20
Market outlook for 2019/20 Copper price Reuters poll July: US$ 5,728/t for 2020, US$ 6,228/t for 2021 We anticipate a reduced concentrate supply. Our smelters are Copper supplied until the end of the calendar year with a substantially concentrates lower benchmark. We expect an improving supply in ou
Slide 16: azeti: Digitalization as a key component of the company strategy
azeti: Digitalization as a key component of the company strategy » azeti ensures resources, software, and knowledge in the long term » Aurubis secures the expertise of 20 employees and thus lays the foundation for setting up a digital organization in the company » IoT platform (internet of things) a
Slide 17: New COO: Dr. Heiko Arnold
New COO: Dr. Heiko Arnold Dr. Heiko Arnold Doctorate in chemistry Responsible for » Production » Continuous improvement of operating processes » Environmental protection » Occupational health and safety August 2020 17
Slide 18: FY 2019/20 forecast again confirmed
FY 2019/20 forecast again confirmed In total, we expect an operating EBT between € 185 and 250 million and an operating ROCE between 8 and 11 % for fiscal year 2019/20. Interval forecast Operating EBT Operating ROCE in € million in % Group 185-250 8-11 Segment MRP 230-310 11-16 Segment FRP -3 - -8 <
Slide 19: Our priorities for 2020
Our priorities for 2020 Keeping our people Operational healthy and safe excellence Metallo integration Additional growth including identifying and leveraging all synergies projects Efficiency improvement / cost Sustainability reduction program August 2020 19
Slide 20: Metals for Progress
A@Aurubis Metals for Progress VISION VISION VISION 2025 Ps Passion for metallurgy with you
Slide 21: Your IR Contacts
Your IR Contacts: Angela Seidler Elke Brinkmann VP Investor Relations & Senior Manager Corporate Communications +49 40 7883-2379 +49 40 7883-3178 e.brinkmann@aurubis.com a.seidler@aurubis.com Financial Calendar » Q3 2019/20 August 11, 2020 » Annual Report 2019/20 December 9, 2020 August 2020 21
Slide 22: Legal disclaimer
Legal disclaimer Forward-looking statements This document contains forward-looking statements that involve risks and uncertainties, including statements about Aurubis’ plans, objectives, expectations, and intentions. Readers are cautioned that forward-looking statements include known and unknown ris