Afarak Group Se Class A · OMXHEX:AFAGR
Afarak Group Se Class A — Ruukki Group — Q2 2012 Earnings Presentation
9 slides from Afarak Group Se Class A's earnings presentation, Aug 16, 2012
Slide 1: Q2 & H1 2012 Interim Results
Q2 & H1 2012 Interim Results Thomas Hoyer, Ho er CEO www.ruukkigroup.com 16 August 2012 1
Slide 2: Overview
Overview • Outlook O tl k for f 2012 improved i d mainly i l due d tto more stable t bl market k t conditions diti • Positive operating cash flow and strong increase in y-o-y EBITDA • Improved cost efficiency and favourable exchange rates • Group’s increased focus on niche, higher margin speciality
Slide 3: Group Financial Performance
Group Financial Performance • Revenue decreased, impacted by Eskom’s electricity buyback programme at Mogale • Strong g increase in EBITDA • Cash flow from operations was positive at EUR 13.5 (Q2/2011: -5.8) million • Liquid funds at 30 June were EUR 45.0 (30 June 2011: 81.8) (31 March 2012: 65.1) m
Slide 4: Sales & Global Market Review
Sales & Global Market Review • Ferrochrome prices were impacted by negative sentiment surrounding Europe and declining demand. • South African ferrochrome production suspended due to Eskom buyback programme • Chinese ferrochrome producers compensated for this by increasing capacity, thereby negating
Slide 5: Speciality Alloys Performance
Speciality Alloys Performance • TMS production impacted by bad weather conditions • EWW able to operate at near full capacity due to stockpiles Production (tonnes) Q2 2012 Q2 2011 H1 2012 H1 2011 FY2011 Mining* 17,729 20,631 36,983 40,630 82,154 Processing 7,484 7,209 14,225 14,090 25,908 Total 25 2
Slide 6: Speciality Alloys Performance
Speciality Alloys Performance • Revenue increased by 5.9% • EBITDA increased substantially substantially, up 27 27.5% 5% due to increase in sales volumes & change in product mix of speciality alloys, Ultra Low Carbon and Low Carbon. • EBIT was positive (EUR millions) Q2 2012 Q2 2011 H1 2012 H1 2011
Slide 7: FerroAlloys Performance
FerroAlloys Performance • Stellite mine operated according to plan, new reef opened up to improve flexibility • Processing P i volumes l d down d due tto E Eskom’s k ’ electricity l t i it bbuyback b k offer ff • Buyback programme now finished and furnaces being restarted at Mogale Production (tonne
Slide 8: FerroAlloys Performance
FerroAlloys Performance • Revenue decreased substantially due to weak chrome ore market & subsequent impact on production • Eskom buyback programme compensated for loss in profits • EBITDA impacted by provision of a rehabilitation contingency relating to the opening up a new reef at Stellite (EUR mi
Slide 9: Outlook
Outlook • After a period of very high fluctuations on the ferroalloy market it is now expected to be less volatile going forward. • The Group remains prepared for price fluctuations and will continue to adapt its production levels and product mix accordingly. • The market for speciality alloy produc