Slide 1: Aurubis AG Interim Report First 6 Months 2016/17
Aurubis AG Interim Report First 6 Months 2016/17 Frankfurt, May 15, 2017 Jürgen Schachler Executive Board Chairman 1
Slide 2: Aurubis: an integrated copper producer
Aurubis’ strengths include productivity, efficiency, environmental protection and processing expertise Aurubis: an integrated copper producer Raw materials BU Primary Copper Processors and end users » Cathodes » Sulfuric acid Concentrates » Precious metals » By-metals Blister Scrap no. 1 BU Copper P
Slide 3: Aurubis is a world leader in the copper value chain
Aurubis is a world leader in the copper value chain FY 2015/16 Position Custom concentrate processing 2,156,000 t No. 1 worldwide Copper scrap processing 253,000 t No. 1 worldwide Cathode production 1,084,000 t No. 4 worldwide Rod production 758,000 t No. 1 worldwide Shape production 172,000 t No. 1
Slide 4: Copper demand is rising despite moderate growth expectations for China
Copper demand is rising despite moderate growth expectations for China Global copper demand (in million t) China 23.6 24.0 23.2 21.9 22.4 22.8 » China is showing subdued economic growth, but with about 48 % of global need, it continues to be the most important source of 12.2 12.4 11.7 11.9 12.1 dema
Slide 5: Copper price has shown considerable growth since November 2016
Copper price has shown considerable growth since November 2016 Copper price and metal exchange inventories Metal exchange inventories in 1.000 t LME copper price (settlement) in US$/t 2000 10000 Copper price 1750 5/12/2017: 9000 5,520.0 1500 8000 1250 7000 1000 6000 750 5000 500 4000 250 3000 0 2000
Slide 6: The European copper market traditionally exhibits a cathode deficit
The European copper market traditionally exhibits a cathode deficit • Copper demand by region in 2017 (in million t) • Copper surplus/deficit before adjustment (in million t) -0.7 +1.1 0.4 -0.4 3.8 2.4 -0.6 -2.6 0.8 14.7 +2.7 +1.2 +0.5 0.5 0.2 <0.1 Total demand 2017e: 22.8 million t Global output 20
Slide 7: Rising production continues to support concentrate supply
Rising production continues to support concentrate supply Mine production of concentrates (in million t Cu content) CRU 02/2017 Wood Mackenzie 03/2017 » Framework agreement between 18 Jiangxi Copper and Freeport- 14 McMoRan for 2017 for clean concentrates with TC/RC of US$ 92.5/9.25 cts becomes a 10
Slide 8: Volatile sulfuric acid markets; fertilizer industry is the biggest user
Volatile sulfuric acid markets; the fertilizer industry is the biggest user globally Aurubis sulfuric acid output by sector/industry FY 2015/16 Metals 16 % » At Aurubis, sulfuric acid is a by-product of concentrate processing that is Fertilizers produced during flue gas 51 % desulfurization Chemical
Slide 9: Recycling is increasing but isn't sufficient to cover total copper demand
Recycling is increasing but isn’t sufficient to cover total copper demand (in million t) Global recycling potential 2020-2030: ~70 million t Global recycling potential Average lifespan of all copper 2010-2020: products: ~33 years, including: ~50 million t » Electrical devices: 2-4 years » Transforme
Slide 10: Good supply of copper scrap leads to high refining charges
Good supply of copper scrap leads to high refining charges Refining charges for copper scrap and copper price (in €/t Cu) European refining charge (CRU) Copper price (settlement) » Aurubis processes roughly 700,000 t of 750 7500 recycling materials that contain copper 600 6000 and different kinds of
Slide 11: Aurubis fulfills market expectations with good half-year result
Aurubis fulfills market expectations with good half-year result 6M 6M FY 2016/17 FY 2015/16 Operating EBT (€ million) 118 113 Net cash flow (€ million) 41 -158 Operating ROCE (%) 10.4 12.7 (based on operating EBIT for the last 12 months) 11
Slide 12: High performance of our plants and recycling bolster Aurubis' good result
High performance of our plants and recycling bolster Aurubis’ good result EBT 6M 2016/17 (in € million, rounded) 6M 6M FY 16/17 FY 15/16 Main factors influencing the result » Concentrate throughputs at a good level in the previous year, 272 despite the legal maintenance shutdown in October/November
Slide 13: Aurubis Group KPIs
Aurubis Group KPIs (operating, based on IFRS) 6M 6M Change 2016/17 2015/16 Absolute Relative Revenues €m 5,428 4,725 703 15 % Gross profit €m 554 526 28 5% EBITDA €m 190 184 6 3% EBIT €m 126 122 4 3% EBT €m 118 113 5 4% Consolidated net income €m 90 83 7 8% Net cash flow €m 41 -158 199 > 100 % Retur
Slide 14: Reconciliation from IFRS (average cost method) to IFRS (operating)
Reconciliation of statement of financial position/income statement from IFRS (average cost method) to IFRS (operating) IFRS (average IFRS In € million cost method) (operating) Adjustments Statement of financial position 03/31/2017 Total assets 4,326 3,952 -374 Assets Fixed assets 1,494 1,447 -47 Def
Slide 15: Key financial figures remain stable
Key financial figures remain stable (operating, based on IFRS) 03/31/2017 03/31/2016 operating operating Target Profitability ROCE* 10.4 % 12.7 % 15 % Capital structure - Equity ratio (equity / total assets) 48.0 % 47.6 % > 40 % - Fixed asset cover (equity / fixed assets) 131.2 % 126.9 % > 120 % - I
Slide 16: BU Primary Copper: Good result with high production performance in Pirdop
BU Primary Copper: Good result with high production performance in Pirdop Operating results for BU Copper Products (first 6 months 2016/17) BU Primary 6M 6M Copper 16/17 15/16 EBIT (in €m) 112 95 » Input mix has positive impact on treatment charge level for EBT (in €m) 109 89 copper concentrates ROC
Slide 17: BU Copper Products: Recovery on the copper scrap markets
BU Copper Products: Recovery on the copper scrap markets Operating results for BU Copper Products (first 6 months 2016/17) BU Copper 6M 6M Products 16/17 15/16 EBIT (in €m) 35 43 EBT (in €m) 30 40 » Higher refining charges for copper scrap with very good supply ROCE (%) 7.2 11.1 » Increase in demand
Slide 18: Stable shareholder structure
Stable shareholder structure Shareholder structure as of Nov. 2016 ~29 % » IPO in 1998 » Aurubis shares are in the Prime Standard ~25 % Segment of the Deutsche Börse » Shares are listed in the MDAX and in the Global Challenges Index (GCX) ~46 % Salzgitter AG Institutional investors Retail shareholde
Slide 19: Development of Aurubis share price
Development of Aurubis share price Closing prices of Aurubis shares Comparison of Aurubis shares with (Xetra) indices (September 30, 2015 = 100 %) 70 € 180% 200 days average Aurubis 65 € 170% DAX 60 € 160% MDAX 55 € 50 € 150% 45 € 140% 40 € 130% 35 € 30 € 120% 25 € 110% 20 € 100% 15 € Market capital
Slide 20: Our Vision 2025
Passion Together for metallurgy for progress with you Our Vision 2025 A\AQurubis
Slide 21: Where we are: What makes us strong
Where we are: What makes us strong 150 Years of Successful in Partnership – 20 countries on We Deliver Quality 3 continents More Than Copper – Expertise in Numerous Metals > 6,400 x 150 Years of Tradition Passion and Engagement Comprehensive Eyes and Ears Open for Know-how – Regardless of Location M
Slide 22: Our vision: How we understand it
Our vision: How we understand it 1 We excel in metallurgy: Fostered by innovation, we are the leader in sustainable processing of primary and secondary raw materials. We grow: 2 Building on our copper expertise, we expand our business model and strengthen our geographical footprint, ensuring superio
Slide 23: ONE Aurubis: How we achieve the vision
Our approach: How we achieve the vision Transformation Program ONE Aurubis 3 2 4 1 5 Business Leadership & Culture & Strategy Organization Improvement Accountability Communication Clear Direction Efficient Organization Improved Processes Employee Development Unifying Culture › Implementation of › Re
Slide 24: ONE Aurubis: EBITDA increase by end of fiscal year 2019/20
EBITDA increase of more than € 200 million by the end of fiscal year 2019/20 through internal optimization Transformation program ONE Aurubis (in €m) + 80 > 200 3 + 60 4 (> 120) 2 1 5 + 30 Business Leadership Culture & (> 60) Organi- Strategy Improve- & Account- Communi- zation ability ment cation >
Slide 25: Aurubis confirms earnings forecast for 2016/17
Aurubis confirms earnings forecast for 2016/17 » The May 2017 Reuters poll on the average copper price is at US$ 5,720/t for 2017 and US$ 5,790/t for 2018 » Satisfactory treatment and refining charges for copper concentrates » High capacity utilization expected at our primary copper smelters » Sligh
Slide 26: Aurubis confirms earnings forecast for 2016/17
Aurubis confirms earnings forecast for 2016/17 Overall, we expect significantly higher operating EBT and slightly higher operating ROCE for the Group. Qualified comparative forecast according to Aurubis’ definition Operating Change in ROCE delta as operating EBT a percentage At prior-year level ±2%
Slide 27: Aurubis AG Interim Report First 6 Months 2016/17
Aurubis AG Interim Report First 6 Months 2016/17 Frankfurt, May 15, 2017
Slide 28: IR contacts and financial calendar
IR contacts: Angela Seidler Dieter Birkholz Elke Brinkmann Head of Investor Relations Senior Manager Senior Manager +49 40 7883-3178 +49 40 7883-3969 +49 40 7883-2379 a.seidler@aurubis.com d.birkholz@aurubis.com e.brinkmann@aurubis.com Financial calendar » Quarterly Report First 9 Months 2016/17 Aug
Slide 29: Annex 1: Company profile
Annex 1: Company profile » Founded in 1866 as Norddeutsche Affinerie AG in Hamburg » IPO in 1998 » Renamed in 2009 after the acquisition of Cumerio Aurum + Rubrum = the red gold = Aurubis » Production sites in European countries and North America, with about 6,450 employees » Fourth largest producer
Slide 30: Annex 2: Primary copper production process
Annex 2: Primary copper production process Sulfuric acid plant Off-gas cleaning Copper scrap Copper concentrates Copper matte Blister copper (64 % Cu) (98 % Cu) Flash smelter Converter Anode furnace Copper Nickel sulfate (99.5 % Cu) Anode Cathode Anode slime Anode Tankhouse casting wheel Precious me
Slide 31: Disclaimer
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 risks and