Aurubis Ag · XETR:NDA
Aurubis — Non-Deal Roadshow (July 2023)
57 slides from Aurubis's roadshow presentation, Jul 13, 2023
Slide 1: Aurubis AG Metals for Progress
Aurubis AG Metals for Progress DZ Bank Reverse Roadshow Hamburg July 13th, 2023
Slide 2: Executive summary of first 6 months 2022/23
Executive summary of first 6 months 2022/23 Aurubis' positive development continues with the second quarter at the very high level of the previous year Operating EBT ROCE 6M 2022/23 of Good concentrate markets and product demand led to good Q2 2022/23 15.6 % figures, despite lower sulfuric acid reven
Slide 3: Closing the loop is part of Aurubis' integrated business model
Closing the loop is part of Aurubis’ integrated business model 28 30 34 45 46 47 Ni Zn Se Rh Pd Ag Copper cathodes Concentrates Smelting and Nickel sulfate refining Selenium Sulfuric acid 50 82 79 78 75 52 Sn Pb Au Pt Re Te Further processing Scrap/ intermediates Metals for progress Continuous cast s
Slide 4: Increased concentrate throughput and strong product demand
Increased concentrate throughput and strong product demand Change vs. Change vs. FY 2021/22 prior year FY 2021/22 prior year Concentrate processing1 2,429,000 t +8 % Gold 47 t -8 % Copper scrap/ 540,000 t -1 % Silver 911 t -4 % blister copper input2 Other recycling materials2 524,000 t -3 % Lead 44,
Slide 5: Sulfuric acid stabilizes at lower levels, other market conditions stable
Sulfuric acid stabilizes at lower levels, other market conditions stable Trend in significant market prices and refining charges 100 % = Sept. 2019 450% 400% Sulfuric acid price (spot CFR Brazil) 350% Copper price (settlement) 300% Exchange rate (US$/€) 250% 200% European refining charges for copper s
Slide 6: Aurubis with strong Q2 results and increased forecast
Aurubis with strong Q2 results and increased forecast 6M 6M Change vs. (operating IFRS) 2022/23 2021/221 prior year Revenues €m 8,784 9,262 -5 % Gross profit €m 839 857 -2 % EBITDA €m 383 426 -10 % EBIT €m 286 332 -14 % EBT €m 291 331 -12 % Consolidated net income €m 230 257 -11 % Operating ROCE (%)
Slide 7: Gross margin at prior-year level
Gross margin at prior-year level Breakdown of income components in the Aurubis Group 6M 2022/23 YTD (YTD prior-year figures) 31 % (28 %) Treatment charges for concentrate + 34 % (41 %) recycling input Metal gains ~ € 1,121 million* (~ € 1,139 million*) 35 % (31 %) Premiums + Products * Gross margin
Slide 8: Overview of Group costs – energy costs reduced
Overview of Group costs – energy costs reduced Overview of cost/expense positions 6M 2022/23 YTD (YTD prior-year figures) 10 % (10 %) Depreciation and amortization 31 % (32 %) Personnel costs 13 % (12 %) Consumables ~ € 928 million* 13 % (12 %) (~ € 884 million*) External services 18 % (17 %) 15 % (
Slide 9: Aurubis continues to manage energy costs
Aurubis continues to manage energy costs Breakdown of energy costs 6M 2022/23 Electricity incl. oxygen consumption in the (YTD prior-year figures) Aurubis Group: approx. 1.81 TWh (2022)* CO2 emissions of 1.31 million t (2022)* 59 % (75 %) Electricity 0.52 million t of direct emissions (Scope 1) in
Slide 10: Aurubis' financial position enables our growth strategy
Aurubis’ financial position enables our growth strategy 6M 6M 2022/23 2021/223 Target ROCE1 % 15.6 19.6 15.0 Equity ratio % 53.1 54.0 > 40.0 (equity/total assets) Debt coverage2 -0.2 -0.3 < 3.0 6M 6M Additional KPIs 2022/23 2021/22 Capital expenditure €m 179 120 Capital employed €m 3,253 2,881 (bala
Slide 11: Multimetal Recycling segment
Multimetal Recycling segment Breakdown of income components in MMR segment 6M 2022/23 YTD (YTD prior-year figures) 6M 6M Operating results 2022/23 2021/222 49 % (43 %) EBIT €m 102 158 Refining charges 44 % (54 %) for recycling input Metal gain EBT €m 103 158 ROCE1 % 15.5 44.4 Quantities Copper scrap
Slide 12: Custom Smelting & Products segment
Custom Smelting & Products segment Breakdown of income components in CSP segment 6M 6M 6M 2022/23 YTD (YTD prior-year figures) Operating results 2022/23 2021/222 24 % (21 %) Treatment charges EBIT €m 220 205 for concentrate + 30 % (35 %) EBT €m 223 205 recycling input Metal gain ROCE1 % 19.1 13.7 Qu
Slide 13: Promising market outlook for 2022/23
Promising market outlook for 2022/23 We anticipate an increase in concentrate supply from the mine side, underpinned by Copper new greenfield projects and the expansion of existing mines. concentrates Our smelters are already well supplied into Q4 of FY 2022/23. We expect a stable supply of copper s
Slide 14: EBT between € 450 million and € 550 million
FY 2022/23 guidance Our forecast range Operating EBT Operating ROCE between € 450 million between 14 % and € 550 million and 18 % Operating EBT Operating ROCE in € million in % Group 450‒550 14‒18 Multimetal Recycling 110‒170 13‒17 Custom Smelting & Products 390‒450 18‒22 Aurubis DZ Bank Reverse Roa
Slide 15: Business model resilience based on independence of income components
Business model resilience based on independence of income components, drives gross margin growth Breakdown of income components in the Aurubis Group 2,240 1,916 1,680 1,545 Metal gain 30% 35% 36% 34% 38% Premiums & products 37% 30% 30% 35% 34% Treatment charges for concentrate & recycling input 33%
Slide 16: Accumulated EBITDA to rapidly overcompensate investments
Accumulated EBITDA to rapidly overcompensate investments Growth investments to be translated into profits Capex & EBITDA contribution from 8 strategic projects (in € million) Investing around € 1.1 billion in strategic growth options ~1,340 Rapid payback: accumulated EBITDA of € 1.3 billion Grow
Slide 17: Outflows from current project pipeline expected to peak in 2023/24
Outflows from current project pipeline expected to peak in 2023/24 Capex planning broken down into baseline and strategic Investment horizon of the Group (in € million) Baseline capex Strategic capex Depreciation The planned maintenance schedule of the two primary smelters in Hamburg and Pirdop wi
Slide 18: Increased gross margin supported by balanced portfolio
Increased gross margin supported by balanced portfolio Breakdown of income components in the Aurubis Group 2,240 1,916 1,680 1,545 Metal gain 30% 35% 36% 38% ~ 40% Premiums & products 37% 30% 30% Treatment charges for 34% ~ 30% concentrate & recycling input 33% 35% 34% Gross margin 28% ~ 30% in € mi
Slide 19: Capital allocation will focus substantially on strategic growth investments
Capital allocation will focus substantially on strategic growth investments Net cash flow Capital allocation (in € million) 1,831 10% Mergers & acquisitions Baseline investments 55% Changes in net financial position Dividend 15% Strategic growth 17% investments 3% 18/19 - 21/22 22/23e - 25/26e Aurub
Slide 20: Our strategy builds on the sound mission of Aurubis
Our strategy builds on the sound mission of Aurubis and covers all relevant aspects to drive sustainable growth Secure Strengthen Pursue Core Business Core Business Growth Options Industry Leadership in Sustainability Enablers Digitalization, automation, and “Plant of the Future” Strategic resou
Slide 21: Growth strategy: CAPEX and EBITDA impact increase significantly
Growth strategy: CAPEX and EBITDA impact increase significantly Short term Medium term Long term Currently approved Medium-term planning (next 4 years) Until 2030 Growth Capex ~€ 1,100 Growth Capex ~€ 280 million are Ambition and scale of our million approved included in the medium-term long-t
Slide 22: Timeline of strategic projects in implementation
Timeline of strategic projects in implemetation Commissioning BOB (BE Olen) Start of Start of construction Industrial Heat construction Solar Park (BG Pirdop) (DE Hamburg) Commissioning CRH Expansion Tankhouse Aurubis Richmond Aurubis Richmond (DE Hamburg) (BG Pirdop) Module 1 (US Geor
Slide 23: Expanding our flowsheet with additional smelting furnaces and processes
Expanding our flowsheet with additional smelting furnaces and processes to drive multimetal growth strategy Input materials Smelting Refining Multimetal Cu concentrates HH HH » Cu — Cu processing — Pir Ol Cu/CuNi — HH » Ag Primary HH CuNi electrolyte — PM/Ni — tankhouse Lue Pir » Au sites Pir — repr
Slide 24: Growth options: Aurubis Richmond, US – construction work is progressing
Growth options Aurubis Richmond, US – construction work is progressing Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 24
Slide 25: Very attractive market environment: recycling materials to grow in North America
Very attractive market environment: Relevant recycling materials to grow at ~5 % p.a. in North America Pursuing growth in North America US-relevant recycling market Printed circuit boards Metal shredder supply Insulated copper (kt p.a.) (PCB) supply (kt p.a.) (kt p.a.) wire supply (kt p.a.) ~5% ~7%
Slide 26: Aurubis Richmond – the leading processor of electric and electronic recycling materials in the US
Aurubis Richmond – the leading processor of electric and electronic recycling materials in the US EBITDA p.a. Pursue Growth Options Investment ~ € 80 million (by 2025/26) ~ € 640 million Aurubis Richmond complements and expands our international integrated smelter ~ € 170 million network with a high
Slide 27: Aurubis Richmond with significant progress since groundbreaking in June 2022
Aurubis Richmond with significant progress since groundbreaking in June 2022 – first equipment received in May 2023 Start of hot commissioning (Module 1) First equipment June ‘22 June ‘23 November ‘23 June ‘24 May ‘23 Start of sampling/ Start of cold August ‘24 pre-processing commissioning (Module 1
Slide 28: Secure core business: Complex Recycling Hamburg (CRH)
Secure core business: Complex Recycling Hamburg (CRH) – further optimization of smelting process CRH Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 28
Slide 29: CRH: Further optimization of the smelting process in Hamburg
Secure & strengthen core business CRH: Further optimization of the smelting process in Hamburg Secure Strengthen Core Business Core Business Investment EBITDA p.a. ~ € 190 million ~ € 40 million Aurubis is strengthening its core business and investing € 190 million for further (at full production) o
Slide 30: Expanding the tankhouse in Pirdop
Secure & strengthen core business Expanding the tankhouse in Pirdop Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 30
Slide 31: Growing metal supply deficits in North America and Europe drive growth opportunities
Anticipated and growing metal supply deficits in North America and Europe drive key growth opportunities for our core business Refined copper market balance (in Mt) North America Europe* 4.0 4.1 4.2 4.2 3.7 3.7 3.8 3.9 3.9 3.1 3.2 3.2 3.1 3.2 3.2 3.3 3.3 3.3 3.3 3.3 2.8 2.9 3.0 2.8 2.4 2.5 2.6 Produc
Slide 32: Secure & strengthen core business: Expanding the tankhouse in Pirdop
Secure & strengthen core business Expanding the tankhouse in Pirdop Secure Strengthen Core Business Core Business Investment EBITDA p.a. ~ € 120 million ~ € 30 million Aurubis is strengthening its core business and investing € 120 million in expanding the (at full production) tankhouse at its Bulgar
Slide 33: Advanced Sludge Processing by Aurubis (ASPA)
Secure & strengthen core business Advanced Sludge Processing by Aurubis (ASPA) ASPA Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 33
Slide 34: Advanced Sludge Processing by Aurubis (ASPA)
Secure & strengthen core business Advanced Sludge Processing by Aurubis (ASPA) Secure Strengthen Core Business Core Business Investment EBITDA p.a. ~ € 33 million ~ € 7 million Aurubis is strengthening its core business and taking the next step towards becoming (at full production) the most efficient
Slide 35: Bleed treatment Olen Beerse (BOB) – Construction kick-off
Secure & strengthen core business Bleed treatment Olen Beerse (BOB) – Construction kick-off BOB Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 35
Slide 36: Bleed treatment Olen Beerse (BOB)
Secure & strengthen core business Bleed treatment Olen Beerse(BOB) Secure Strengthen EBITDA p.a. Core Business Core Business Investment ~ 15 million ~ € 70 million Aurubis is strengthening its core business and investing € 70 million in the Aurubis site in (at full production) Olen to increase recyc
Slide 37: Lithium-ion batteries – exceptional value hidden in complex recycling material
Lithium-ion batteries – exceptional value hidden in complex products, complex recycling material Batteries are complex scraps As the metal value in black mass is very high, that are of huge value capabilities to recover the value are essential Battery management system: Cu, Sn, Ag, Au, Pd Cables & c
Slide 38: Our innovative process for black mass leverages our integrated smelter network
Our innovative process for black mass leverages capabilities of our integrated smelter network Black mass Benefits of the unique Aurubis process Innovative process route for black mass that utilizes ozone Li recovery Lithium High lithium recovery through Graphite Graphite, lithium first extraction se
Slide 39: Our sweet spot in the battery recycling value chain
Our sweet spot in the battery recycling value chain is based on Aurubis’ core expertise Electric vehicle End-of-life assembly lithium-ion batteries We are developing a fully-fledged battery recycling supply and value chain First steps taken with Librec, a specialist Cell & battery Collection & manuf
Slide 40: Aurubis could enter the commercial battery recycling market in the second half of this decade
In line with projected market growth, Aurubis could enter the commercial market in the second half of this decade Regional supply of black mass for recycling (in kt) Europe US & Canada 2,414 1,985 938 801 310 314 8 7 75 90 2020 2025 2030 2035 2040 2020 2025 2030 2035 2040 Further pilot test work cam
Slide 41: We continue to lead our industry in sustainability
We continue to lead our industry in sustainability – minimizing emissions and costs, maximizing opportunities in new business areas We continue to strengthen our position as the most efficient and sustainable multimetal producer worldwide 1 2 Sustainability is a We strive for balance fundamental part
Slide 42: Renowned ratings show strong track record in sustainability
Renowned ratings show strong track record in sustainability Aurubis’ main sustainability ratings & initiatives * * Copyrights in the back-up Score A- Climate change (2022) Score B Water Security (2022) * * Copyrights in the back-up Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 42
Slide 43: The Copper Mark certification demonstrates our leadership
The Copper Mark certification demonstrates our leadership in sustainable production practices The Copper Mark launched Focus on steady improvement Aurubis Olen for copper producers in of the sector's production certification March 2020 practices expected shortly Basis: Joint Due Diligence Standard UN
Slide 44: Our KPIs underline our sustainability ambitions
Our KPIs underline our sustainability ambitions and demonstrate momentum Absolute Scope 1+2 CO2 emissions Scope 3 CO2 emissions Air emissions (dust) (in kt) (in kt)1 (in g per t of multimetal Cu equivalent)2 56.5 1,600 6,502 6,181 48.0 1,310* 40.1 1 2 3 4,942 800 2018 2022 2030 2018 2021 2030 2018 2
Slide 45: Leading the way with life cycle assessments
Leading the way with life cycle assessments – and substantially lower carbon footprints than industry averages CO2 footprint of Aurubis metals vs. global industry average 2020: 6,632 Copper cathodes Tin in kg CO2 eq./t Cu in kg CO2 eq./t 2021: 1,570 Global industry average Aurubis 2013: 4,027 2013:
Slide 46: Using multiple technologies at our sites to decarbonize our production
Achieving results: Using multiple technologies at our sites to decarbonize our production Scope 1+2 CO2 emissions Identified further potential for Absolute Scope 1+2 CO2 emissions (in kt) reducing our Scope 1+2 CO2 emissions 1,600 Scope 2 1,310* Purchasing electricity Internal production of Energy fr
Slide 47: Sustainability: Energy and decarbonization projects
Sustainability: Energy and decarbonization projects PV Pirdop I-III Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 47
Slide 48: Aurubis on its way to carbon-neutral production
Sustainability: Aurubis on its way to carbon-neutral production Optimizing electricity Industry Leadership consumption p.a. in Sustainability Investment ~ 13,500 MWh* +~ € 12 million (since PV 1) Expansion of solar park until 2024 in Pirdop, Bulgaria, with a combined (for 2024 expansion) +~ 17,000 M
Slide 49: Win-win project reduces our carbon footprint and supplies district heat
Win-win project reduces our carbon footprint and makes Aurubis a highly valuable source for sustainable district heat supply Households: Delivery of CO2-free industrial heat with a CO2 reduction of up to 120,000 t per year Spaldingstrase Feed-in of the industrial heat into Wärme Hamburg's city-wide
Slide 50: Monetizing its industrial heat, Aurubis strengthens its partnership with Hamburg
Monetizing its industrial heat, Aurubis strengthens its symbiotic partnership with the city of Hamburg Industry Leadership in Sustainability Existing project supplies heat (as industrial by-product) to Hamburg's HafenCity East district, running successfully with enercity since 2018 Project generates
Slide 51: Thank you for your participation.
Thank you for your participation. For further questions, contact: IR@aurubis.com
Slide 52: Financial calendar
Financial calendar Q3 2022/23 August 7, 2023 Annual Report 2022/23 December 6, 2023 Aurubis DZ Bank Reverse Roadshow Hamburg July 13th 2023 52
Slide 53: Your IR Contacts
Your IR Contacts Angela Seidler Elke Brinkmann Ferdinand von Oertzen VP Investor Relations, Head of Investor Relations Specialist Investor Relations Corporate Communications +49 40 7883-2379 +49 40 7883-3179 & Sustainability e.brinkmann@aurubis.com f.vonoertzen@aurubis.com +49 40 7883-3178 a.seidler
Slide 54: Aurubis at a glance
Based in Hamburg, Aurubis AG The company’s main expertise Aurubis develops its leading market is in optimally processing position with a responsible concentrates and recycling at a glance approach to the environment, raw materials with people, and resources complex qualities The company, which was f
Slide 55: Maintenance shutdowns in the next 3 years
Maintenance shutdowns in the next 3 years EBT effect from maintenance shutdowns (in € million) FY 2022/23 FY 2023/24 FY 2024/25 Smelter May/ maintenance ~36 June 2024 Hamburg Smelter May/ May/ maintenance ~20 ~35 June 2023 July 2025 Pirdop Anode Nov/ Nov/ Nov/ furnace ~7 ~8 ~8 Dec 2022 Dec 2023 Dec
Slide 56: Primary copper production process
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 casting wheel Tankhouse Precious metal refin
Slide 57: 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