AMAG Austria Metall AG · VIE:AMAG
AMAG Austria Metall — Q3 2019 Earnings Presentation
30 slides from AMAG Austria Metall's earnings presentation, Oct 30, 2019
Slide 1: Presentation: Q3/2019
Presentation: Q3/2019 October 30, 2019
Slide 2: Disclaimer
Disclaimer Note The forecasts, budgets and forward-looking assessments and statements contained in this presentation were compiled on the basis of all information available to AMAG as of the present time. In the event that the assumptions underlying these forecasts prove to be incorrect, targets b
Slide 3: Highlights, Market
AMAG-. AUSTRIA METALL Highlights, Market
Slide 4: Highlights of Q3 2019
Highlights of Q3 2019 Positive growth prospects for global demand for primary aluminium and rolled products Current demand and price trends influenced by economic slowdown and trade conflicts Q3/2019 EBITDA up 10 % to EUR 37.2 million (Q3/2018: EUR 33.9 million) Q1-Q3/2019 EBITDA of EUR 109.
Slide 5: Primary aluminium: global demand
Primary aluminium: global demand Stable demand trend year-on-year Worldwide demand Global stocks [in millions of tonnes] [in millions of tonnes] Market balance (Production-Demand) Global stocks 75 16 65.2 65.3 9 14.0 13.9 13.8 63.2 13.5 13.2 59.9 12.9 14 56.5 11.8 54.6 7 12 50.7 10.4 50 47.4 5 10 8
Slide 6: Aluminium price
Aluminium price Price decline compared to previous year Aluminium price trend Average aluminium price [3-month LME in USD/t] [3-month LME in USD/t] 2,600 -13 % 2,163 -15 % 2,068 2,400 1,789 1,829 2,200 2,000 1,800 1,600 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Q3/2018 Q3/2019 Q1-Q3/ Q1-Q3/ 2018 201
Slide 7: Alumina price
Alumina price Normalisation after high price fluctuations in the previous year Alumina price trend Average alumina price [in USD/t] [in USD/t] 700 540 480 600 -27 % -44 % 500 351 301 400 300 200 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Q3/2018 Q3/2019 Q1- Q1- Q3/2018 Q3/2019 7 7 Source: Bloomberg
Slide 8: Growth in rolled products
Growth in rolled products Global consumption to expand by 3 % in 2019 [in millions of tonnes] 30 28.3 Growth forecast 27.5 26.3 24.9 2019 25 23.9 23.0 21.6 Other +3% 20 Machinery +1% 15 Construction +0% 10 Packaging +3% 5 Transport +4% World Total +3% 0 2013 2014 2015 2016 2017 2018 2019e Source: CR
Slide 9: Economic sentiment indicators worsening
Economic sentiment indicators worsening Purchasing manager indices for manufacturing industry 2017 2018 2019 Region/Country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Jul Sep World 53 53 53 53 53 53 53 53 53 53 54 54 54
Slide 10: Q1-Q3/2019 results
AMAG-. AUSTRIA METALL Q1-Q3/2019 results
Slide 11: Comparison of key figures Q1-Q3/2019
Comparison of key figures Q1-Q3/2019 Total shipments: Revenue: EBITDA: Significant increase because of the Higher shipment volume offsets Decrease mainly due to lower growth strategy lower aluminium price market price level [in '000 tonnes] [EUR millions] [EUR millions] +7 % -0 % -9 % 825.0 821.5 33
Slide 12: Q1-Q3/2019 EBITDA reconciliation
Q1-Q3/2019 EBITDA reconciliation Earnings down mainly due to lower price level [EUR millions] 120.1 13.8 -12.2 -20.1 -13.6 21.2 109.2 EBITDA Aluminium Price/ Raw Volume/mix Other EBITDA Q1-Q3/2018 price premiums materials/ Q1-Q3/2019 Energy 12 12
Slide 13: Comparison of key figures Q3/2019
Comparison of key figures Q3/2019 Total shipments: Revenue: EBITDA: At the level of the same quarter of Decline mainly due to aluminium Increase mainly because of lower the previous year price raw material costs [in '000 tonnes] [EUR millions] [EUR millions] -0 % -7 % +10 % 111.0 110.5 285.4 37.2 1.
Slide 14: Q3/2019 EBITDA reconciliation
Q3/2019 EBITDA reconciliation Significant EBITDA growth because of lower raw material costs and lifting of US import tariffs for Canada [EUR millions] 0.4 -4.5 17.3 37.2 33.9 -8.6 -1.3 EBITDA Aluminium Price/ Raw Volume/mix Other EBITDA Q3/2018 price premiums materials/ Q3/2019 Energy 14 14
Slide 15: AMAG Group – key figures
AMAG Group – key figures Q3 Q3 +/- Q1-Q3 Q1-Q3 +/- 2019 2018 (%) 2019 2018 (%) Shipments, total 110,500 111,000 -0 336,500 315,700 7 [in tonnes] Revenue 266.9 285.4 -7 821.5 825.0 -0 [EUR millions] EBITDA 37.2 33.9 10 109.2 120.1 -9 [EUR millions] EBITDA margin 13.9 % 11.9 % - 13.3 % 14.6 % - [in %]
Slide 16: Statement of cash flows
Statement of cash flows Cash flow from operating activities quadrupled Cash flow from operating Cash outflows from investing Free cash flow activities activities [EUR millions] [EUR millions] [EUR millions] 108.3 61.7 58.2 50.0 26.5 Q1-Q3/2018 Q1-Q3/2019 Q1-Q3/2018 Q1-Q3/2019 • Positive effects on w
Slide 17: Metal Division
Metal Division Significant earnings growth in Q3/2019 +/- Q1-Q3/ Q1-Q3/ +/- Q3/2019 Q3/2018 (%) 2019 2018 (%) EBITDA trend Shipments, total [EUR millions] 28,900 30,600 -6 86,700 85,400 2 2017 [in '000 tonnes] 13.0 12.4 2018 External shipments 28,900 29,600 -2 85,500 84,400 1 10.6 9.7 9.9 10.1 [in '
Slide 18: Casting Division
Casting Division Solid earnings development +/- Q1-Q3/ Q1-Q3/ +/- Q3/2019 Q3/2018 (%) 2019 2018 (%) EBITDA trend Shipments, total [in EUR millions] 23,800 24,000 -1 71,700 61,800 16 2017 [in '000 tonnes] 3.0 2018 External shipments 15,700 16,100 -2 47,000 44,000 7 [in '000 tonnes] 2019 Revenue 23.7
Slide 19: Rolling Division
Rolling Division Ramp-up exerts positive effect on results +/- Q1-Q3/ Q1-Q3/ +/- Q3/2019 Q3/2018 (%) 2019 2018 (%) EBITDA trend Shipments, total [in EUR millions] 57,800 56,500 2 178,100 168,600 6 2017 [in '000 tonnes] 32.1 32.3 33.1 33.2 30.1 2018 External shipments 57,800 56,500 2 178,100 168,600
Slide 20: Outlook
AMAG-. AUSTRIA METALL Outlook
Slide 21: FY 2019 outlook
FY 2019 outlook AMAG Austria Metall AG Attractive growth rates in global demand for primary aluminum and rolled products with an average of 2 to 3% p.a. expected for the coming years; flat demand for primary aluminum in 20191) Low visibility at present; new order intake and price levels in Q3 20
Slide 22: Appendix
AMAG-. AUSTRIA METALL Appendix
Slide 23: Balance sheet
Balance sheet in EUR million September 30, 2019 December 31, 2018 +/- (% ) Intangible assets 8.9 9.1 -2 Property, plant and equipment 748.1 748.1 0 Investments in associates 1.7 1.8 -4 Other non-current assets and financial assets 40.5 38.1 6 Deferred tax assets 14.1 6.7 109 Non-current assets 813.3
Slide 24: Statement of profit or loss
Statement of profit or loss According to the cost of sales method in EUR million Q3/2019 Q3/2018 +/- (% ) Q1-Q3/2019 Q1-Q3/2018 +/- (% ) Revenue 266.9 285.4 -7 821.5 825.0 0 Cost of sales -226.0 -245.4 8 -696.9 -697.4 0 Gross profit 40.9 40.0 2 124.6 127.5 -2 Other income 3.4 1.5 120 9.9 8.9 10 Sell
Slide 25: Statement of cash flows
Statement of cash flows in EUR million Q3/2019 Q3/2018 Q1-Q3/2019 Q1-Q3/2018 Earnings before taxes (EBT) 14.6 11.2 40.6 55.5 Interest income (expenses) 2.1 2.1 6.6 5.7 Share of profit of associates -0.1 -0.1 -0.2 -0.2 Depreciation, amortisation and impairment losses/reversal of impairment losses on
Slide 26: Statement of comprehensive income
Statement of comprehensive income in EUR thousand Q3/2019 Q3/2018 Q1-Q3/2019 Q1-Q3/2018 2018 Net income after taxes 11.1 10.3 30.0 43.4 44.5 Items that are or may be reclassified to profit or loss: Currency translation differences 7.1 1.0 8.2 5.7 7.3 Changes in the hedging reserve Recognized (expens
Slide 27: Statement of changes in equity
Statement of changes in equity hensive income of Retained earnings Fair value reserve Share of compre- Hedging reserve Capital reserves Reval-uation of defined benefit Exchange diff- Share capital Reval-uation asso-ciates erences reserve Equity plans in EUR million Balance as of December 31, 2017 35
Slide 28: Service Division
Service Division IFRS 16 affects result +/- Q1-Q3/ Q1-Q3/ +/- EBITDA trend Q3/2019 Q3/2018 (%) 2019 2018 (%) [in EUR millions] 2017 Revenue 15.1 19.7 -23 49.4 60.6 -18 4.6 4.6 [in EUR millions] 4.3 2018 3.0 2.8 2019 External revenue 1.4 1.5 -4 4.3 4.5 -3 2.3 2.6 2.0 [in EUR millions] EBITDA -1.8 4.3
Slide 29: IR information
IR information Information about the AMAG share 2019/20 financial calendar ISIN AT00000AMAG3 October 30, 2019 Report on Q3/2019 Ticker symbol: Vienna Stock February 27, 2020 2019 annual financial statements AMAG Exchange April 15, 2020 Annual General Meeting ATX-Prime, ATX BI, ATX Indices GP, ATX TD
Slide 30: Competence in Aluminium
Competence in ff Aluminium / AMAG-. AUSTRIA METALL