Slide 1: Magontec Limited First Half 2020 - Interim Result
Magontec Limited (ASX: MGL) First Half 2020 - Interim Result August 2020
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by Magontec Limited (ABN 30 147 131 Future performance Not an offer 977) (Magontec or the Company). This Presentation contains summary information about Magontec and its activities current as at the date of this This Presentation contains certain “forwa
Slide 3: 2020 Half Year Result Reporting Highlights
Magontec Limited – 2020 Half Year Result Reporting Highlights Underlying Operating Cashflow* of $2.4 m - Increased market share, new product earnings contribution, new markets - Positive impact of temporary salary and director fee reductions, government subsidies Cash flow from underlying operations
Slide 4: Half Year Result Financial Highlights
2020 Half Year Result Financial Highlights 1H 2020 Gross Profit of $5.92 million 6 months to 6 months to Lower demand resulting from 30-Jun-20 30-Jun-19 COVID-19 Volumes recovering, although not at pre-COVID levels Gross Profit $5.92m $7.96m Gross Profit Margin 12.9% 11.8% Underlying NPAT of ($0.044
Slide 5: Reconciliation of significant items in earnings
2020 Half Year Result Reconciliation of significant items in earnings 6 months to 6 months to 30-Jun-20 30-Jun-19 '$000 '$000 Net Profit Before Tax, unrealised FX and significant items (286) 1,533 Significant items before tax Less non-cash equity expense - (65) Less MAQ depreciation (non-cash) (520)
Slide 6: Interim Year Result - Operations
2020 Interim Year Result - Operations Magnesium Anode Volumes (CCP) Metal Volumes down due to COVID-19, but recovering into ahead of Previous Corresponding Period 2H 2020 3,000 Magnesium Anode Magnesium Alloy Sales Volumes (mt) 50,000 Metal Sales Volumes (mt) 40,000 2,000 2H 1H 30,000 2H 1H 20,000 1
Slide 7: Qinghai primary magnesium alloy production
Magontec Qinghai primary magnesium alloy production Magontec Qinghai Production (mt) 6,000 4,000 2,000 - 2H17 1H18 2H18 1H19 2H19 1H20 • Supply of liquid pure Mg from adjacent smelter • Magnesium alloy ingot supply to customers halted since 1 April 2019 maintained throughout this period • Magontec Q
Slide 8: Underlying Net Result -$0.44m in 1H 2020 despite COVID impact
2020 Half Year Result Underlying Net Result* -$0.44m in 1H 2020 despite COVID impact Underlying Net Profit After Tax * ($M) $0.404m ($0.044m) 1H19 1H20 • Reported net profit/loss excluding the effects of unrealised foreign exchange
Slide 9: Margin expansion from Specialist Metal sales and resilient Underlying Operating Cashflow
2020 Half Year Result Margin expansion from Specialist Metal sales and resilient Underlying Operating Cashflow despite headwinds Gross Profit ($M) and GP margin Underlying Operating Cashflow ($M)* 12.9% 11.8% 11.2% 11.1% $2.7 10.5% $2.4 $2.4 $1.8 $1.6 $7.4 $7.3 $7.3 $8.0 $5.9 1H16 1H17 1H18 1H19 1H2
Slide 10: EBITDA and Underlying NPAT trend relatively stable
2020 Half Year Result EBITDA and Underlying NPAT trend relatively stable EBITDA, Underlying NPAT and Depreciation ($M) EBITDA Underlying NPAT Depreciation $2.57 $2.08 $1.92 $1.91 $1.44 $1.60 $1.59 $1.35 $0.86 $0.81 $0.51 $0.35 $0.40 ($0.04) ($0.14) 1H16 1H17 1H18 1H19 1H20
Slide 11: Qinghai electrolytic magnesium smelter complex (Golmud)
Qinghai electrolytic magnesium smelter complex (Golmud) Magontec Qinghai MGL operates a magnesium alloy cast Dehydration Reduction Cast house house at Golmud in Qinghai Province PRC Agreements Supply of 56,000 mtpa* Exclusive Mg alloy rights Fixed off-take price metrics Lease (10+10 years) Productio
Slide 12: Qinghai manufactures the World's lowest CO2 magnesium alloys
Magontec Qinghai manufactures the World’s lowest CO2 magnesium alloys* 45 Future Present Past 40 Qinghai 35 Kg CO2eq / kg Mg incl. credits for incl. use 30 Use of waste gas of SF6 25 incl. credits for by-products 20 15 incl. credits for by-products 10 5 0 Golmud 2017 Israel 2011 China 2011 Norway 19
Slide 13: Magontec has recycling and manufacturing facilities in China, Germany and Romania
Magontec has recycling and manufacturing facilities in China, Germany and Romania Production Sales Office Bottrop Santana Toronto Golmud Tokyo Technology Centre Rhode Is Xi’an Cast House Project Sydney Melbourne Headquarters
Slide 14: Magontec's corporate transformation creates an exceptional platform for growth
Magontec’s corporate transformation creates an exceptional platform for growth Steady underlying Resilient earnings Growing A commitment to ASX Listed cash flow from stream from CCP profitability from “Green” operations businesses Specialist Metals magnesium
Slide 15: Magontec Limited
Magontec Limited 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 7813 Tel +49 (0
Slide 16: Magontec Limited First Half 2020 - Interim Result
Magontec Limited (ASX: MGL) First Half 2020 - Interim Result August 2020