AMAG Austria Metall AG · VIE:AMAG
AMAG Austria Metall — Q3 2013 Earnings Presentation
27 slides from AMAG Austria Metall's earnings presentation, November 2013
Slide 1: Q1-Q3 2013 results
Q1-Q3 2013 results November 2013
Slide 2: Disclaimer
Disclaimer We have compiled the forecasts, budgets and forward-looking assessments and statements contained in this presentation on the basis of information available to us. In the event that the assumptions underlying these forecasts prove to be incorrect, targets are not achieved or certain risk
Slide 3: Highlights and operational developments
Highlights and operational developments
Slide 4: Highlights
Highlights 1 Market environment - Average aluminium price of 1,912 USD/t in the first three quarters 2013, 7% down on the 2,061 USD/t recorded in Q1-Q3 2012 - Market environment remains challenging, resulting in lower visibility 2 Operational business - Full capacity utilisation in Q1-Q3 2013 and sa
Slide 5: Aluminium price trend
Aluminium price trend Aluminium price remained low in third quarter USD/t Average aluminium price 2,800 Q1-Q3 2013 1,912 USD Q1-Q3 2012 2,061 USD Change -7% 2,400 15 Feb 2013 2 Jan 2013 2,166 USD/t 25 Oct 2013 2,128 USD/t 1,855 USD/t 2,000 27 Jun 2013 1,765 USD/t 1,600 Jan 11 Apr 11 Jul 11 Oct 11 Ja
Slide 6: Projected global growth for primary aluminium
Projected global growth for primary aluminium Consumption by region 2012/2017e: [in ‘000 t] CAGR: +5.5% 2012/2013e: +5.1% 61,940 2011/2012: +5.5% Australia, South-East Asia 49,936 47,503 Africa 45,006 37,420 38,662 Middle East 34,341 China Asia (without China) Europe * Central/South America North Am
Slide 7: Projected global growth for rolled products
Projected global growth for rolled products Consumption by region [in ‘000 t] 2012/2017e: CAGR: +5.4% 2011/2012: 2012/2013e: 26,472 +3.2% +4.7% 21,303 Other* 19,727 20,350 17,328 18,031 China 15,760 Asia (without China) Western Europe North America 2008 2009 2010 2011 2012 2013e - 2017e *) Other: La
Slide 8: Rolled aluminium products in Western Europe: transport applications
Rolled aluminium products in Western Europe: transport applications Reduction in CO2 emissions from new passenger Increasing consumption in road transport in cars in the EU Western Europe 1) Strong rise in rolled-product content in vehicles 2) Focus on lightweight vehicles due to stricter rules on c
Slide 9: Strong shipment volume in all divisions
Strong shipment volume in all divisions Shipments Shipments Shipments Metal division Casting division Rolling division (kt) (kt) External (kt) Internal 91.8 60.2 60.0 117.3 122.2 89.3 88.4 58.5 114.4 50.0 44.1 50.3 10.2 15.8 8.2 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3
Slide 10: AMAG 2014 site expansion programme
AMAG 2014 site expansion programme Rolling mill project on budget and on schedule Construction work at new plate production centre completed New hot ageing furnace and plate handling installed Focus in 2013 on completion of majority of construction work, and bringing plate production centre and ro
Slide 11: AMAG 2014 site expansion programme
AMAG 2014 site expansion programme Rolling mill project on budget and on schedule Significant progress on construction of rolling mill building Foundation work at mill stand Owing to the environmental impact assessment currently in progress, construction of the new rolling slab casthouse will be d
Slide 12: Financials
AMAG-_ AUSTRIA METALL Financials
Slide 13: Solid earnings in Q1-Q3 2013
Solid earnings in Q1-Q3 2013 External shipment Av. aluminium price Sales EBITDA volumes (Group) (USD/t) (kt) (mEUR) (mEUR) Δ -7 % Δ +1 % Δ -4 % Δ -11 % 638.9 109.9 615.9 2,061 257.5 4 6 98.3 255.2 4 1,912 4 385 64 384 53 5 4 90 76 34 38 160 152 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2012
Slide 14: AMAG Group: key indicators
AMAG Group: key indicators Solid earnings in first three quarters Q3 Q3 +/- Q1-Q3 Q1-Q3 +/- 2013 2012 (%) 2013 2012 (%) Shipments 92,100 85,900 7 274,000 266,200 3 Shipments increased by 3% (t) 1 Sales (mEUR) 203.5 206.0 -1 615.9 638.9 -4 Decrease in EBITDA caused mainly Gross profit by lower ma
Slide 15: Consolidated Q1-Q3 sales
Consolidated Q1-Q3 sales Sales reconciliation Change by division (mEUR) (mEUR) 0.0 Service division 638.9 -28.0 +21.4 -9.7 +2.7 -6.6 -2.8 615.9 -1.2 Rolling division -14.1 Casting division Q1-Q3 Q1-Q3 -7.4 Metall division 2012 2013 Sales below last year‘s level due to lower aluminium price Highe
Slide 16: Consolidated Q1-Q3 earnings
Consolidated Q1-Q3 earnings EBITDA reconciliation Change by division (mEUR) (mEUR) 7.4 Service 109.9 -2.4 -5.0 -3.5 -2,1 -2.9 -5.2 division 98.3 Rolling -11.5 division Casting -1.7 division Q1-Q3 Q1-Q3 Metall 2012 2013 3,7 division Positive earnings contribution from Rolling division as a result o
Slide 17: Stability and growth: Q1-Q3 2013
Stability and growth: Q1-Q3 2013 Sound High Low net liquidity equity debt1 Stability thanks to sound balance sheet Strong liquidity – cash and cash equivalents 574 31 Dec 2012 544 30 Sep 2013 of 80 mEUR as at end-September 2013 Equity at end-September higher than at year-end 2012 84 80 50 26 N
Slide 18: Metal division
Metal division Higher profit contribution despite low aluminium price Q3 Q3 +/- Q1-Q3 Q1-Q3 +/- 2013 2012 (%) 2013 2012 (%) EBITDA (mEUR) 26.4 Shipments 24.8 31,400 27,200 15 91,800 88,400 4 (t) Sales (mEUR) 140.9 136.9 3 426.8 439.6 -3 13.013.4 12.313,2 12.7 EBITDA 11.5 13.2 12.3 7 38.2 34.5 11 9.7
Slide 19: Metal division: hedging structure
Metal division: hedging structure Hedging exposure Realised aluminium price 100% Market Price Aluminium price (spot) realised 90% LME-exposure 24% (USD/t) (USD/t) 80% Q1-Q3 2013 1,871 2,018 1,750 1,790 70% put-option 15% 2014 simulation1) 2,000 2,017 75% 60% 2,250 2,249 93% 17% 50% min/max-option •
Slide 20: Casting division
Casting division Margin pressure slightly lower in third quarter of 2013 Q3 Q3 +/- Q1-Q3 Q1-Q3 +/- EBITDA 2013 2012 (%) 2013 2012 (%) (mEUR) Shipments 20,100 19,700 2 60,000 60,200 0 (t) 2.5 2.4 Sales 2.2 (mEUR) 29.2 29.8 -2 82.6 94.5 -13 1.8 1.9 EBITDA 1,5 1.5 1.3 16 3.7 5.5 -32 1.2 1.3 (mEUR) 1.0
Slide 21: Rolling division
Rolling division Increased shipments in third quarter of 2013 Q3 Q3 +/- Q1-Q3 Q1-Q3 +/- EBITDA 2013 2012 (%) 2013 2012 (%) (mEUR) Shipments 40,600 39,000 4 122,200 117,300 4 22.7 (t) 22.3 22.1 Sales 19.6 18.7 18.8 145.1 143.4 1 443.1 436.1 2 17.8 (mEUR) 16,3 15.6 13.5 EBITDA 12.2 16.3 22.7 -28 52.9
Slide 22: Outlook
AMAG-_ AUSTRIA METALL Outlook
Slide 23: Outlook
Outlook AMAG Austria Metall AG Volatile market environment, with economic forecasts being revised downwards All divisions expected to be working at near full capacity in Q4 2013 due to order backlog as at end-September EBITDA forecast of 116-121 mEUR confirmed Indications of persistent margi
Slide 24: Share and financial calendar
Share and financial calendar
Slide 25: AMAG share price
AMAG share price Performance during first three quarters of 2013 Broker/ Target Recom- AMAG share price performance (%) AMAG Austria Metall AG -10% bank price mendation 2 Jan.-30 Sep. 2013 Austrian Traded Index (ATX) +5% 110 BNP 23.5 Neutral Erste 24.5 Hold 100 RCB 22.0 Hold 30 Sep 2013 20.77 EUR Ba
Slide 26: Financial calendar and shareholder structure
Financial calendar and shareholder structure Date and event Shareholder structure (as at 30 Sep. 2013) 1) 3) 4) Friday B&C Alpha Holding GmbH Full-year results 2013 28 February 2014 Results press conference Oberbank Industrie und 3) Handelsbeteiligungsholding GmbH Thursday Annual General Meeting AMA
Slide 27: Competence in Aluminium
Competence in Aluminium