Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — Investor Presentation (July 2019)
28 slides from Rhi Magnesita Nv's investor presentation, July 2019
Slide 1: The driving force of the refractory industry
The driving force of the refractory industry Company presentation
Slide 2: Disclaimer
Disclaimer The consolidated financial statements subscribe for or purchase any securities, and presented here are consistent with the criteria neither any part of this presentation nor any of international accounting standards – IFRS information or statement contained herein issued by the Internatio
Slide 3: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Building a global leader in refractories 4 Strategy 5 Financials 3
Slide 4: Refractories are critical to all high-temperature industrial processes
Refractory industry overview Refractories are critical to all high-temperature industrial processes ⬢ Refractories are critical Main end markets consumable or investment goods €20 billion worldwide industry for high-temperature 7% manufacturing processes ◼ Steel 8% ◼ Energy, chemicals ⬢ Fireproof ma
Slide 5: Refractories are continuously consumed during finished goods production
Refractory industry overview Refractories are continuously consumed during finished goods production Key industries Applications Replacement Costs Refractory characteristics Steel Basic oxygen-, 20 minutes to ~3.0% Consumable product electric arc furnace 2 months casting ladles Systems and solutions
Slide 6: A complex range of tailored refractory products are required for each application
Refractory industry overview A complex range of tailored refractory products are required for each application Bricks Example of refractory application for steel ladle 2 3 1 Permanent lining 2 Non-basic, 3 Basic, ex. ex. Alumina Mag-Carbon 4 1 Monolothics and pre casts 5 6 8 4 Mixes 5 Pre Castables
Slide 7: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Building a global leader in refractories 4 Strategy 5 Financials 7
Slide 8: RHI Magnesita is the world leader in refractories and a truly global company
RHI Magnesita overview RHI Magnesita is the world leader in refractories and a truly global company €3.1bn 10,000 14,000 2018 revenue Customers served globally Employees spread over 40 countries 35 +100 Main production sites across Countries shipped worldwide 16 countries 13 >€37m Main raw material
Slide 9: Adding value through a full suite of products and services
RHI Magnesita overview Adding value through a full suite of products and services Iron Ore Steel Refining Facility Technology Flow Solutions Coal Control Injection Natural Electric Arc Gas Furnace Direct Reduction Coal Scrap Basic Oxygen Continuous Furnace Casting Blast Coke Oven Furnace Full Line L
Slide 10: The refractory world of RHI Magnesita
RHI Magnesita overview The refractory world of RHI Magnesita 10
Slide 11: Serving blue chip clients in every industry
RHI Magnesita overview Serving blue chip clients in every industry Steel Cement Glass Metals Serving 1376 Serving 800 Serving 650 Serving 1060 of 1250 plants 1 of 1537plants1 of 900 plants1 of 2000 plants1 1ex-China 11
Slide 12: Optimally positioned to reach customers everywhere
RHI Magnesita overview Optimally positioned to reach customers everywhere Europe 29 % North America 22% APAC 20% MEA-CIS 14% South Production facilities America Raw material sites 15% % revenues + More than 70 sales offices worldwide 12 Source: RHI Magnesita
Slide 13: Driving client performance improvements
RHI Magnesita overview Driving client performance improvements Equipment/Application Service Starting point End game Improvement Client A (Integrated) Basic Oxygen Furnace (B.O.F.) Refractories 1,900 heats 7,200 heats +385% Assembly 145 h 40 h 3.8X faster Blast Furnace Runners 1,600 h 330 h 4.8X fas
Slide 14: Solutions that maximize efficiency and margins
RHI Magnesita overview Solutions that maximize efficiency and margins Example: full line service A single basic oxygen furnace (BOF) demands different One key objective for Full Line Service clients is types of refractories designed according to their distinct to develop refractories that last longe
Slide 15: Tailor-made products and services that drive performance and cost savings
RHI Magnesita overview Tailor-made products and services that drive performance and cost savings Example: implementing gas purging in electric arc furnances for high-alloyed steelmaking Stainless steel production has significantly different EAF process conditions compared to low-alloyed steelmaking
Slide 16: Experienced management team with solid financial and strategic background
RHI Magnesita overview Experienced management team with solid financial and strategic background Executive Management Team Joined Background Stefan Borgas 2016 ⬢ Former CEO of Israel Chemicals Ltd and Lonza Group CEO ⬢ Several management positions at BASF Luis R. Bittencourt 1989 ⬢ Former R&D and ra
Slide 17: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Building a global leader in refractories 4 Strategy 5 Financials 17
Slide 18: A strategic combination that captures synergies and drives efficiencies
Building a global leader in refractories A strategic combination that captures synergies and drives efficiencies Establish leading market position Leverage technology capabilities ⬢ Complementary asset portfolio ⬢ Enhanced value-added ⬢ Transaction to support regional products and tailored solutions
Slide 19: The industry's largest dedicated research team
Building a global leader in refractories The industry’s largest dedicated research team, pushing the boundaries of what is possible We drive innovation in every aspect of our business, from materials, Global research team of 250+ employees, of which 98 robotics and Big Data, to bespoke new business
Slide 20: On-site technical experts consult, develop and deliver innovative solutions directly to clients
Building a global leader in refractories On-site technical experts consult, develop and deliver innovative solutions directly to clients 340+ technical engineers across 90 countries, working on-site with clients to provide custom- made solutions, installation support, recycling, post-mortem analysis
Slide 21: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Building a global leader in refractories 4 Strategy 5 Financials 21
Slide 22: A clear and compelling strategy
Strategy A clear and compelling strategy Enabling us to add value through a full suite of products & services People Progress in 2018 Hire, retain and motivate talent and Integration of c.14,000 employees worldwide nurture a meritocratic, performance- Roll out of cultural values and international ca
Slide 23: Table of contents
Table of contents 1 Refractory industry overview 2 RHI Magnesita overview 3 Building a global leader in refractories 4 Strategy 5 Financials 23
Slide 24: Revenue
Financials Revenue Revenue1 by Industry Total Revenue by Geography ◼ South America 37% Cement / Lime ◼ North America ◼ Europe ◼ MEA-CIS 25% Non Ferrous ◼ Asia Pacific Metals 39% Other Process Industries 20% 15% 28% 14% 22% 72% 29% ◼ Industrial ◼ Steel 1 Rev enue split considers only ref ractory segm
Slide 25: Revenue and Adjusted results
Financials Revenue and Adjusted results 800 16 Adjusted EBITA (€m) 700 13.9% 14 600 12 500 10 9.3% +81% 400 8 Revenue (€m) 1,259 1,369 300 6 +21% 3500 200 428 4 3000 100 235.9 2 2500 2000 0 0 3,081 1500 2017¹ 2018 2,549.6 1000 Working Capital Intensity (€m) 500 0 2017 2018 22.2% 15.4% 610 511 2017²
Slide 26: Selected financial highlights
Financials Selected financial highlights Significant revenue growth of 21% driven by: 2018 2017¹ Change Robust end markets €m Continued high raw material pricing Revenue 3,081.4 2,549.6 21% Growth in Steel and Industrial Divisions CoGS (2,344.5) (1,989.1) 18% Adjusted EBITA up 81% from: Gross Profit
Slide 27: Capital structure
Financials Capital structure Solid credit profile and commitment to de-leveraging current business 2,6x During 2018 RHIM refinanced c.€800 million of its 1,9x 1,6x capital structure, including the redemption of 1,2x Magnesita’s legacy Bonds, achieving funding costs commensurate with its stronger cre
Slide 28: Get in touch
Get in touch RHI Magnesita Kranichberggasse 6 1120 Vienna Austria Phone: +43 50213 6200 E-mail: corporate.communications@rhimagnesita.com rhimagnesita.com Important notice: These materials do not constitute or f orm part, or all, of any off er of invitation to sell or issue, or any solicitation of a