Aurubis Ag · XETR:NDA
Aurubis — Shareholder Meeting (March 2017)
37 slides from Aurubis's shareholder meeting presentation, Mar 2, 2017
Slide 1: Aurubis AG Annual General Meeting
Aurubis AG Annual General Meeting Hamburg, March 2, 2017 ANNUAL GENERAL MEETING 2017 – 03/02/2017
Slide 2: Aurubis' business model: Productivity, efficiency, environmental protection and processing expertise
Aurubis’ business model: Productivity, efficiency, environmental protection and processing expertise Raw materials BU Primary Copper Processors and end users » Cathodes » Sulfuric acid Concentrates » Precious metals » By-metals Blister Scrap no. 1 BU Copper Products » Cathodes Copper » Wire rod » Sh
Slide 3: 150 Years of Aurubis – 150 Years of the Future
150 Years of Aurubis – 150 Years of the Future. ANNUAL GENERAL MEETING 2017 – 03/02/2017 3
Slide 4: Agenda
Agenda 1. Fiscal year 2015/16 2. Q1 2016/17 3. Outlook ANNUAL GENERAL MEETING 2017 – 03/02/2017 4
Slide 5: FY 2015/16: Secure concentrate supply, with treatment and refining charges at a good level
FY 2015/16: Secure concentrate supply, with treatment and refining charges at a good level Copper concentrate: TC trend for copper concentrate Countries of origin (in US$/t) Annual TCs (clean concentrate) Others Copper price (settlement, avg.) 16 % Chile 120 12000 19 % Georgia 100 10000 6% Canada 80
Slide 6: Sulfuric acid in FY 2015/16: fertilizer industry largest consumer; markets very volatile
Sulfuric acid in FY 2015/16: The fertilizer industry was the largest consumer; markets very volatile Aurubis sulfuric acid sales Sulfuric acid price by industry (CFR Brazil spot, in US$/t) 120 Metals 16 % Fertilizer 100 51 % 80 60 40 Chemicals 20 33 % 0 11/12 05/13 11/13 05/14 11/14 05/15 11/15 05/1
Slide 7: European cathode premium
European cathode premium (in US$/t) 140 120 110 100 92 86 80 60 40 20 0 * 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * from June 1, 2012: Aurubis cathode premium ANNUAL GENERAL MEETING 2017 – 03/02/2017 7
Slide 8: FY 2015/16: Copper scrap supply limited due to metal prices
FY 2015/16: Copper scrap supply limited due to metal prices, with pressure on refining charges Recycling materials: Refining charges for copper scrap and copper Countries of origin price (in €/t Cu) Others European refining charge (CRU) North 5% Copper price (settlement) America 750 7500 7% Germany
Slide 9: Continuous cast wire rod and shapes
Continuous cast wire rod and shapes Wire rod output (in 1,000 t) 742 764 758 646 608 11/12 12/13 13/14 14/15 15/16 Shapes output (in 1,000 t) 183 170 172 164 149 11/12 12/13 13/14 14/15 15/16 ANNUAL GENERAL MEETING 2017 – 03/02/2017 9
Slide 10: Successful scheduled maintenance shutdown in Pirdop, Bulgaria
Successful scheduled maintenance shutdown in Pirdop, Bulgaria ANNUAL GENERAL MEETING 2017 – 03/02/2017 10
Slide 11: Aurubis' 2015/16 results align with market expectations
Aurubis’ 2015/16 results align with market expectations 12M 12M FY 2015/16 FY 2014/15 Operating EBT (€ million) 213 343 Net cash flow (€ million) 236 365 Operating ROCE (%) 10.9 18.7 ANNUAL GENERAL MEETING 2017 – 03/02/2017 11
Slide 12: Very strong financial ratios in the Aurubis Group continue
Very strong financial ratios in the Aurubis Group continue (operating IFRS) 9/30/2016 9/30/2015 operating operating Target Profitability ROCE 10.9 % 18.7 % 15 % Capital structure - Equity ratio (equity / total assets and 47.8 % 46.9 % > 40 % liabilities) - Fixed asset cover (equity / fixed assets) 1
Slide 13: Business performance in the individual Business Units varied
Business performance in the individual Business Units varied Operating results in the BUs (fiscal year 2015/16) BU Primary FY FY BU Copper FY FY Copper 15/16 14/15 Products 15/16 14/15 EBIT (in €m) 154 271 EBIT (in €m) 106 138 EBT (in €m) 143 256 EBT (in €m) 101 130 ROCE (%) 16.4 33.2 ROCE (%) 9.7 1
Slide 14: Executive Board and Supervisory Board propose a dividend of €1.25
Consistent with dividend policy, Executive Board and Supervisory Board propose a dividend of € 1.25 Aurubis dividend (in € per share) Payout ratio (in %) 54 53 1.35 1.35 51 1.25 46 46 1.10 1.00 11/12 12/13 13/14 14/15 15/16 11/12 12/13 13/14 14/15 15/16 proposal proposal ANNUAL GENERAL MEETING 2017
Slide 15: Development of Aurubis share price
Development of Aurubis share price Comparison of Aurubis shares with indices (Sept. 30, 2015 = 100 %) 130% Aurubis DAX MDAX 120% 110% 100% 90% 80% 70% 60% 50% 10/15 11/15 12/15 10/16 11/16 12/16 1/16 2/16 3/16 4/16 5/16 6/16 7/16 8/16 9/16 1/17 2/17 3/17 ANNUAL GENERAL MEETING 2017 – 03/02/2017 15
Slide 16: Other important topics during the past fiscal year
Other important topics during the past fiscal year Aurubis Innovation Day 2016 ANNUAL GENERAL MEETING 2017 – 03/02/2017 16
Slide 17: Sustainability is a fundamental issue at Aurubis
Sustainability is a fundamental issue at Aurubis Awards in FY 2015/16 2015: “Best Newcomer 2015” 2016: Inclusion in the Leadership Category, “Index Leader MDAX 2016” Lünen plant project “Highly Efficient and Flexible Electricity Generation from Waste Heat”; awarded the German Energy Agency’s “Best P
Slide 18: Use of Aurubis Hamburg's industrial waste heat to supply Hafencity East
Use of Aurubis Hamburg’s industrial waste heat to supply Hafencity East Route of district heat line Hafencity East district Heat transfer to “eCGN Hafencity East” distribution grid Replacement heating plant eCGN heat pipeline Heat transfer from Aurubis to eCGN Waste heat extraction Aurubis heat pipe
Slide 19: Agenda
Agenda 1. Fiscal year 2015/16 2. Q1 2016/17 3. Outlook ANNUAL GENERAL MEETING 2017 – 03/02/2017 19
Slide 20: Aurubis fulfills expectations in Q1 of fiscal year 2016/17
Aurubis fulfills expectations in Q1 of fiscal year 2016/17 3M 3M FY 2016/17 FY 2015/16 Operating EBT (€ million) 18 36 Net cash flow (€ million) -42 -23 Operating ROCE (%) 9.5 17.5 (based on operating EBIT for the last 12 months) ANNUAL GENERAL MEETING 2017 – 03/02/2017 20
Slide 21: Aurubis confirms earnings forecast for 2016/17
Aurubis confirms earnings forecast for 2016/17 Overall, we expect significantly higher operating EBT and slightly higher operating ROCE for the Group. Qualified comparative forecast according to Aurubis’ definition Operating Change in ROCE delta as operating EBT a percentage At prior-year level ±2%
Slide 22: Aurubis confirms earnings forecast for 2016/17
Aurubis confirms earnings forecast for 2016/17 » Satisfactory treatment and refining charges for copper concentrates » High capacity utilization expected at our primary copper smelters » No recovery of sulfuric acid prices » Cathode premiums reduced from US$ 92/t to US$ 86/t starting in our Q2 2016/
Slide 23: Agenda
Agenda 1. Fiscal year 2015/16 2. Q1 2016/17 3. Outlook – Vision ANNUAL GENERAL MEETING 2017 – 03/02/2017 23
Slide 24: Our starting position – Why do companies need a vision?
Our starting position – Why do companies need a vision? Company strategy Business division strategies 92 16 Values ANNUAL GENERAL MEETING 2017 – 03/02/2017 24
Slide 25: Where we are: What makes us strong
Where we are: What makes us strong Successful in 150 Years of 20 countries Partnership – We Deliver Quality on More Than Copper – 3 continents Expertise in Numerous Metals > 6,400 x 150 Years of Tradition Passion and Engagement Comprehensive Eyes and Ears Open for Know-how – Regardless of Location M
Slide 26: Our approach in the second half of 2016
Our approach in the second half of 2016 Our Starting Point 2016 Carry out three initiatives › Employee survey Vision › Diagnosis of processes, systems and organization › Continuous Improvement Ziel What does Aurubis stand for? What does Aurubis want to become? What will distinguish us in the future?
Slide 27: Where we are: What the vision should achieve
Where we are: What the vision should achieve The Vision is our Compass: It formulates long-term objectives regarding where we want to be in 2025 and what we want to be distinguished by. The Vision Drives Us Forward: It motivates us to jointly give our total commitment each day. The Vision is a Brack
Slide 28: Our Vision 2025
Our Vision 2025 ANNUAL GENERAL MEETING 2017 – 03/02/2017 28
Slide 29: Our vision: How we understand it
Our vision: How we understand it 1 We excel in metallurgy: Fostered by innovation, we are the leader in sustainable processing of primary and secondary raw materials. We grow: 2 Building on our copper expertise, we expand our business model and strengthen our geographical footprint, ensuring superio
Slide 30: Our vision: We excel in metallurgy
Our vision: How we understand it 1 We excel in metallurgy: Fostered by innovation, we are the leader in sustainable processing of primary and secondary raw materials. 2 What this means in concrete A glimpse of the future: terms Our metals will also enable innovations in 2025 3 › We’re the experts wh
Slide 31: Our vision: We grow
Our vision: How we understand it 1 We grow: Building on our copper expertise, we expand our business model and strengthen our geographical footprint, ensuring superior financial performance. 2 What this means in concrete A glimpse of the future: terms What a newspaper in 2025 might say about Aurubis
Slide 32: Our vision: We are the partner of choice
Our vision: How we understand it 1 We are the partner of choice: Together with our customers and suppliers, we develop value- creating solutions. 2 What this means in concrete A glimpse of the future: terms What could a business partner say about us in 2025? 3 › Our metallurgical expertise offers ou
Slide 33: Our vision: We act as one team
Our vision: How we understand it 1 We act as a team: While strengthening the individual capabilities of each employee, we shape the future of Aurubis as one team. 2 What this means in concrete A glimpse of the future: terms What an employee survey might reveal in 2025 3 › Our knowledge and our motiv
Slide 34: Our vision: We improve every day
Our vision: How we understand it 1 We improve every day: In everything we do, we set continuous improvement as a guiding principle. 2 What this means in concrete A glimpse of the future: terms What could distinguish our work in 2025 3 › Our ultimate goal is: 0 accidents › Continuous improvement is p
Slide 35: ONE Aurubis transformation program
Our approach: How we achieve the vision Transformation Program ONE Aurubis 3 2 4 1 5 Business Leadership & Culture & Strategy Organization Improvement Accountability Communication Clear Direction Efficient Improved Processes Employee Unifying Culture › Implementation of Organization › Potential from
Slide 36: Our Vision 2025
Our Vision 2025 ANNUAL GENERAL MEETING 2017 – 03/02/2017 36
Slide 37: Aurubis AG Annual General Meeting
Aurubis AG Annual General Meeting Hamburg, March 2, 2017 ANNUAL GENERAL MEETING 2017 – 03/02/2017