5n Plus Inc. · TSX:VNP
5n Plus — Investor Presentation (September 2016)
19 slides from 5n Plus's investor presentation, Sep 12, 2016
Slide 1: 5N21 Strategic Plan
5N21 Strategic Plan Setting New Standards for Leadership in Our Industry ENABLING TECHNOLOGY’S PERFORMANCE E ABLING TECHNOLOGY’S PERFORMANCE
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and the 5N21 Plan may contain forward-looking information within the meaning of applicable securities law s. All information and statements other than statements of historical facts contained in this presentation or the 5N21 Plan are forward-looking infor
Slide 3: Mission Statement
Mission Statement As a leading global material technology company, our mission, each & everyday, is to earn and retain the privilege to be essential to our customers, preferred by our employees and trusted among our shareholders in a quest to enable innovation & technology deployment based on natura
Slide 4: Vision
Vision As a leading global material technology company with employees and assets throughout the world, we are determined to enable and empower our people in a manner which inspires them to perform collectively at their best and optimize resource utilization so as to deliver competitive financial ret
Slide 5: Goals by 2021
Goals by 2021 Predictability Quality Growth Consistency Reduced Earnings Volatility Risk Diversified Management Earnings E ABLING TECHNOLOGY’S PERFORMANCE
Slide 6: 5N21 Approach
5N21 Approach Optimizing balance of A contribution between: Upstream/Downstream B Extracting more value from: Global Assets Core & Capabilities Businesses C Delivering quality growth from: Existing Growth Future M&A Initiatives 6 E ABLING TECHNOLOGY’S PERFORMANCE
Slide 7: Upstream Activities…
Upstream Activities… Today Underrepresented Our Upstream Activities enable reliable & economical Bi, Ag, Te, Au, Sn, Sb, Ga, In, Ge, Se access to critical metals that Purchases of Material Research & Refining & Commercial Grade drive a number of essential Containing Metal Development Recycling Metal
Slide 8: Upstream Activities…
Upstream Activities… A Unique Growth Opportunity Critical components of our upstream activities… Primary Metal Concentrate Complex In-process “feed” metal by-product Metal Third party Technological Agile Global management by-product Expertise Assets 8 E E ABLING ABLINGTECHNOLOGY’S TECHNOLOGY’S PERFO
Slide 9: Downstream Activities…
Downstream Activities… Pharmaceutical Industry, Our Downstream Activities enable a plethora Cosmetics, Nutrition of key technologies required by a div erse set of essential industries across the globe Healthcare Imaging, 5G, Touch Screens Alloys, 3D Printing, Power Generation, Glass Industry High Pu
Slide 10: Downstream Opportunities
Downstream Opportunities Market growth Current Capital 5N’s position Prospect requirements Pharma, Health & Nutrition High High Market Leader Electronics & Electro-Optics Av erage Low Top 3 Industrial Chemicals Av erage Low Top 3 Coating & Pigments Av erage Low Top 3 Alternativ e Energy High Low Mar
Slide 11: Extracting More Value
Extracting More Value Optimizing Existing Selectively Growing Assets and Operations the Core Business E ABLING TECHNOLOGY’S PERFORMANCE
Slide 12: Extracting More Value
Extracting More Value Optimize Assets Increase plant and capacity utilization & Operations Simplify flows (e.g. Product, Process…etc.) Reduce structural inventory Improve investment efficiency Maximize Contributions Grow performing businesses & address marginal businesses from the Core Business Incr
Slide 13: Delivering Quality Growth
Delivering Quality Growth Monetize Existing Delivering Quality Growth Initiatives M&A Opportunities E ABLING TECHNOLOGY’S PERFORMANCE
Slide 14: Delivering Quality Growth
Delivering Quality Growth Maximize Existing Utilize existing competencies to address underrepresented businesses Growth Initiatives Leverage technology & market know-how to develop the Upstream business Consider various options & business models to maximize value for the current growth opportunities
Slide 15: Delivering Quality M&A Opportunities
Delivering Quality M&A Opportunities Our Balance Sheet is healthy Execution of 5N21 would further enhance our position and promote M&A activ ities M&A would prov ide additional opportunities and/or accelerate 5N21 Management will activ ely monitor for appropriate opportunities which would pr
Slide 16: Reduction of Earnings Volatility
Reduction of Earnings Volatility 5N21 Plan is designed to significantly reduce volatility of earnings Simulation of % EBITDA change when metal prices change by ±30% in 5N21 100 % 75% 50% 25% 0% -25% -50% -75% -100 % 2014 2016 2017 2018 2019 2020 2021 Metal price + 30% Metal price - 30% As s umption:
Slide 17: Progress to date
Progress to date Closure of a jointly owned site in Europe Restructuring of a European plant Completion of inv estments in Asia related to Upstream area - Recycling & Refining Reduction of Net Debt by more than $31M ov er the year Reduction of Net Working Capital by more than $112M ov er t
Slide 18: Plan Milestones
Plan Milestones Milestone 1 Milestone 2 Milestone 3 2017 2019 2021 Adjusted EBITDA Earnings Volatility ROCE improves Grows to reduce by 50%ᵛ to 15%* and $21 - $27M* Adjusted EBITDA Grows to $40-$60M † * Assumption: Metal price as of July 2016 ᵛ Base of Comparison: 2014 † Assumption: Metal price as o
Slide 19: THANK YOU
THANK YOU ENABLING TECHNOLOGY’S PERFORMANCE E ABLING TECHNOLOGY’S PERFORMANCE