Slide 1: Full Year 2022 Results Investor Presentation (ASX cover letter)
MAGONTEC Limited ABN 51 010 441 666 Registered office Suite 1.03, 46A Macleay Street Potts Point, Sydney NSW 2011 For personal use only T: +61 2 8084 7813 14 March 2023 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney, NSW, 2000 FULL YEAR 2022 RESULTS INVES
Slide 2: Magontec Limited Full Year 2022 Results Investor Presentation
For personal use only Magontec Limited ASX:MGL Full Year 2022 Results Investor Presentation March 2023
Slide 3: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Magontec Limited (ABN 30 147 Past performance Investment Risk and other risks 131 977) (Magontec or the Company). This Presentation contains summary Past performance information given in this Presentation is given for Investment
Slide 4: Our businesses
Magontec Limited: ASX Code: MGL Our businesses For personal use only Metals Anodes Primary & recycled Magnesium and magnesium alloys electronic anodes Pure Mg & Scrap Electronic Mg alloy & other alloying returns components components elements Mg alloy Cathodic ingots Corrosion Generic Protection CCP
Slide 5: Overview Dashboard
Overview Dashboard For personal use only REVENUE EBITDA NPAT EPS $158.6 mil $27.26 mil $16.5 mil 21.5 cents ↑ 37.7% ↑ 170.5% ↑ 229.8% ↑ 230% CASH FLOW FROM FULL YEAR GROSS PROFIT NET DEBT UNDERLYING DIVIDEND / SHARE MARGIN -$2 m OPERATIONS* (UNFRANKED) 24.3% $28 mil CASH ON HAND 1.2 cents CY21 16.7%
Slide 6: FY 2022 Full Year Result
FY 2022 Full Year Result $17.8m Underlying Net Profit After Tax * ($M) Profit drivers in 2022 For personal use only • Sharply higher Mg price through to mid 2022 $4.4m • Inventory boost $0.5m • Pure Mg deficit in USA (continuing) -$1.2m -$0.3m -$1.3m • Strong market position in each product 2017 201
Slide 7: FY 2022 Full Year Result: Net cash position
FY 2022 Full Year Result Strong cashflows produced a net cash position at 31 December 2022 For personal use only Underlying Operating Cashflow($M)* $28.0 Net Debt ($M) and Gearing** (%) 35.5% $18.0 33.0% 28.8% $15.3 $10.5 13.0% $11.7 16.0% $5.0 $6.9 $3.9 $2.3 $2.9 $5.2 -3.6% -$2.0 2017 2018 2019 202
Slide 8: PRC coal price / environmental initiatives driving Mg price
PRC coal price / environmental initiatives driving Mg price Coal Mg RMB/mt Chinese Coal and Magnesium prices (1 Jan 2020 - 17 Feb 2023) RMB/mt For personal use only ¥3,000 ¥70,000 Chinese Coal Price per Tonne Mg 99.9% China RMB ¥60,000 ¥2,500 ¥50,000 ¥2,000 ¥40,000 ¥1,500 ¥30,000 ¥1,000 ¥20,000 ¥500
Slide 9: Global magnesium markets
Global magnesium markets Mg alloys ~36% of total Mg consumption - long-term rising trend Automotive 80% For personal use only • Mg’s key markets (76%) in Global Magnesium Production (2000 - 2022) Other 5% magnesium alloys and End Market aluminium alloys 1,200,000 China Rest of the World Exposure Pow
Slide 10: FY 2022 Full Year Result - Metals
FY 2022 Full Year Result - Metals Metals division GP up to $20.5 million in 2022 supported by strong pricing environment for pure Mg For personal use only Global metals gross profit (A$M) Global Mg alloy and specialist metals sales volumes (metric tonnes) 25.0 25.0% 20.0 20.0% 2022 15.0 15.0% 10.0 1
Slide 11: Primary Mg alloy manufacturing: At Golmud in Qinghai province PRC
Primary Mg alloy manufacturing: At Golmud in Qinghai province PRC Manufactures Mg alloys from pure Mg and other alloying element raw material For personal use only Adjacent to electrolytic Mg ~ 90% renewable Auto / other Mg alloy Operating at reduced capacity, smelter energy die cast customers smelt
Slide 12: Mg alloy recycling: Bottrop (Germany) and Santana (Romania)
Mg alloy recycling: At Bottrop (Germany) and Santana (Romania) An essential part of the European and North American die casting industry For personal use only Recycling adds Mg is 100% Installed capacity Europe’s largest just 0.59 kg CO2 recyclable 24k mtpa Mg recycler equivalent/kg of Mg* Magontec
Slide 13: Global anode markets (cathodic corrosion protection)
North America Global anode markets (cathodic corrosion protection) 36% Other 7% Global anode revenues (Mg and powered) For personal use only $250 A$ mil Regional Mg anode • Anode/Hot Water appliance demand demand is very stable $200 Europe • Demand drivers include: 18% • home construction, China par
Slide 14: FY 2022 Full Year Result – CCP / anodes
FY 2022 Full Year Result – CCP / anodes GP Margin continued to expand in CCP For personal use only Global CCP gross profit (A$M) Global magnesium anode sales volumes (metric tonnes) 20.0 35.0% 18.0 30.0% 16.0 2022 14.0 25.0% 12.0 20.0% 10.0 8.0 15.0% 2021 6.0 10.0% 4.0 5.0% 2.0 2020 - 0.0% 2020 2021
Slide 15: Cathodic Corrosion Protection (CCP)
Cathodic Corrosion Protection (CCP) Every water tank in every house requires corrosion protection For personal use only New Buildings 20% CCP 80% Replacement Magnesium Electronic anodes Industry drivers Climate change Urbanisation (water heater installation) Switch from oil/gas to electric heat pump
Slide 16: Magontec Qinghai magnesium alloy cast house
Magontec Qinghai magnesium alloy cast house For personal use only Revenue and profit Currently operating Cast house impact opportunity Delayed SOP at low levels 2022 Target Mg production mtpa 5k 56k Revenue A$ $37m $200m+* Cast house Contribution Loss Profit Industry CO2 output High Low SOP Timetabl
Slide 17: Magontec Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* For personal use only Qinghai 35 Future Present 30 Kg CO2eq / kg Mg Includes credits for 25 use of waste gas 20 15 Includes credits for by-products 10 5 0 Golmud, China 2020 Qinghai 2020 Electrolysis Pidgeon process *German Aerospace Institu
Slide 18: FY 2022 Full Year Result – Key financial highlights
FY 2022 Full Year Result – Key financial highlights Equity, Borrowings, Cashflow 12 months to 12 months to For personal use only (AUD ‘000) 31 December 22 31 December 21 Equity EBITDA 27,263 10,077 170.5% Reported Net Profit After Tax 16,515 5,008 229.8% Earnings per share (cents) 21.5 6.5 Dividend
Slide 19: Magontec Limited Market Information
Magontec Limited Market Information ASX Code: MGL Total Per Share Shareholder Structure 31 December 2022 For personal use only Ordinary shares on issue 77,521,835 Book value of net assets – 31 December 2022 $56.1 million 72.4 cents/share 42.0%, Other 1 Market capitalisation $32.6 million 42.0 cents/
Slide 20: Thank You
Thank You For personal use only MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road, Suite 1.03 46a Macleay St 46240 Bottrop Xian Economic and Potts Point Sydney NSW Germany Development Zone AUSTRALIA 2011 Xian, China, 710021 Tel +61 2 8084
Slide 21: Magontec Limited Full Year 2022 Results
For personal use only Magontec Limited ASX:MGL Full Year 2022 Results Investor Presentation March 2023
Slide 22: Appendix - FY 2022 Full Year Result Summary
Appendix - FY 2022 Full Year Result Summary Income statement 12 months to 12 months to For personal use only (AUD ‘000) 31 December 22 31 December 21 Revenue 158,600 115,151 37.7% Cost of Sales (120,005) (95,919) 25.1% Gross Profit 38,595 19,232 100.7% Gross Profit margin (%) 24.3% 16.7% Other incom
Slide 23: Appendix - Reconciliation of significant items in earnings
Appendix - FY 2022 Full Year Result Reconciliation of significant items in earnings For personal use only (AUD ‘000) 12 months to 31-Dec-22 12 months to 31-Dec-21 Reported Net Profit Before Tax, unrealised FX & Significant Items 25,434 7,476 Significant items before tax Less non-cash equity writebac