HY 2011 Financial Results

Transcription

1 HY Financial Results Yves ROCHE, Chief Executive Officer Ingo SCHAEFER, Chief Financial Officer

2 1. Market data and key figures by sector 2. HY consolidated financial statements 3. Cash flows 4. Legal proceedings 5. Conclusion and outlook for the Group 6. Q&A 2

3 1. Market data and key figures by sector 2. HY consolidated financial statements 3. Cash flows 4. Legal proceedings 5. Conclusion and outlook for the Group 6. Q&A 3

4 Lead price evolution in HY A very volatile lead price Lead price evolution (daily prices in per ton) 4

5 Lead: HY key figures Industrial performance % Evolution HY vs HY 2010 Treated batteries (in tons) 78,823 77, % HY 2010 HY Lead production (in tons) 61,270 68, % Revenues (in M ) % 5

6 Lead: HY key figures Financial performance after revaluation of stocks in LIFO* (in M ) Lead and silver prices volatility impacted the operating results restated under the LIFO method % In % of revenues Financial performance IFRS (in M ) % In % of revenues EBIT % 1.4% HY 2010 HY EBIT % 5.4% HY 2010 HY EBITDA % 3.3% EBITDA % 7.8% Gross Margin** % 20.2% Gross Margin** % 18.5% ** Gross Margin = Total Sales - Purchases used +/- Changes in work in progress and finished goods - Goods transportation (included in external costs) ** Gross Margin = Total Sales - Purchases used +/- Changes in work in progress and finished goods - Goods transportation (included in external costs) * Valuation method not admitted under IFRS. The valuation method for the «Lead» operating segment is based on LIFO (Last In First Out) for internal reporting in valuing inventory for the Group s main smelter in Germany (Nordenham). For the effects of restating inventories under the LIFO method at the main German smelter, see note 4 to the condensed consolidated financial statements for the first half of. 6

7 Lead: HY business model key parameters main evolution Lead price average (in /t) 1,841 1,565 LME Lead price 18% increase compared to HY 2010 HY 2010 HY Treatment charges Benefited from the lead price increase Premiums Steady compared to HY 2010 By-products Increase of silver sales volumes and improvement of commercial conditions for sulphuric acid Used battery price Price increase in used battery smaller than in HY

8 Lead: HY highlights Battery processing volumes at the same level compared to HY 2010 More than 4,600 tons of batteries processed (2,000 tons in 2010 as a whole) by the Algerian company Eco-Recyclage (33.33% owned by Recylex SA) Lead production volumes rise by more than 11% EBIT (LIFO) decrease compared to HY 2010 mainly due to the high volatility in silver but also lead prices in the first semester 8

9 Plastics: HY key figures Industrial performance % Evolution HY vs HY 2010 HY 2010 Polypropylene production (in tons) 6,027 7,564 HY +25.5% Revenues (in thousands of ) 5,027 7, % 9

10 Plastics: HY key figures Financial performance (in millions of euros) % In % of revenues EBIT % 9.5% HY 2010 EBITDA % 11.5% HY Gross margin* % 61.0% *Gross Margin = Total Sales - Purchases used +/- Changes in work in progress and finished goods - Goods transportation (included in external costs) 10

11 Plastics: HY highlights Sales rose by 41% Polypropylene production rose by 25% Ongoing upturn in business levels 11

12 Zinc price evolution in HY A very volatile zinc price Zinc price evolution (daily prices in per ton) 12

13 Zinc: HY key figures Industrial performance % Evolution HY vs HY 2010 Waelz oxides production* (in tons) 36,140 34, % HY 2010 Zinc oxides production (in tons) 14,335 13, % HY Revenues (in thousands of ) 43,643 43, % *including 100% Recytech SA 13

14 Zinc: HY key figures Financial performance IFRS (in millions of euros) % In % of revenues EBIT % 6.6% HY 2010 HY EBITDA % 10.3% Gross Margin* % 36.0% *Gross Margin = Total Sales - Purchases used +/- Changes in work in progress and finished goods - Goods transportation (included in external costs) 14

15 Zinc (Waelz oxides): HY business model key parameters main evolution Zinc price average (in /t) 1,660 LME Zinc price 1,619 3% increase compared to HY 2010 HY 2010 HY Treatment costs dust Stables with treated volumes similar to HY 2010 Treatment costs paid Decreasing following the zinc concentrates market downward trend 15

16 Zinc: HY highlight Sales comparable with those in the first half of 2010 Operating result affected by Harz-Metall GmbH maintenance shutdown, as no shutdown occurred in the first half of 2010 Good first half of in the zinc recycling business (Norzinco GmbH) thanks to the solid level of chemical industry orders 16

17 Special metals: HY key figures Financial performance IFRS (in millions of euros) % In % of revenues EBIT % % HY 2010 HY EBITDA % % 17

18 Special metals: HY highlight Sales rose by 24% Boost of high-purity arsenic sales driven by an increased demand from integrated circuits producers Sharp rise in germanium prices and increase in germanium selling volumes 18

19 1. Market data and key figures by sector 2. HY consolidated financial statements 3. Cash flows 4. Legal proceedings 5. Conclusion and outlook for the Group 6. Q&A 19

20 Key figures (IFRS) (in tsd. ) HY HY 2010 VAR. Revenues 248, ,601 55,174 EBITDA 18,657 11,638 7,019 EBIT (ROC) 12,653 4,032 8,621 Non recurrent result (660) 2,124 (2,784) Financial result (3,082) 23 (3,105) Net income 6,285 5, Operating cash flow (13,365) (6,703) (6,662) 20

21 First-half consolidated net income affected by the hedging of the Group s lead inventories Loss of 2.6 million on financial instruments used to hedge the Group's lead inventories The hedging method of the Group being not recognized as hedging instruments under IFRS, the booking of any profit linked to the physical counterparts of the aforementioned derivatives is excluded* * See note 6.12 to the condensed consolidated financial statements at June 30, 21

22 Key figures (IFRS, after revaluation of stocks in LIFO*) (in tsd. ) HY HY 2010 VAR. EBITDA 10,527 13,107 (2,580) EBIT (ROC) 5,251 7,900 (2,649) Net income 1,039 8,320 (7,281) Operating cash flow (13,365) (6,703) (6,662) * Valuation method non admitted under IFRS 22

23 Key figures (IFRS) (in tsd. ) June 30, Dec. 31, VAR. Financial Debt (w/o factoring) 11,325 13,211 (1,886) Continuation plan (before discounting) 25,606 25,606 - Provisions 43,057 43,419 (362) Investments 4,066 9,257 (5,191) Working capital 92,897 63,412 29,485 Net cash* 40,491 60,666 (20,175) Equity 106,417 99,496 6,921 Gearing (net) 65% 49% * After deducting bank overdrafts 23

24 1. Market data and key figures by sector 2. HY consolidated financial statements 3. Cash flows 4. Legal proceedings 5. Conclusion and outlook for the Group 6. Q&A 24

25 Cash Flow Recylex Group Cash Flow Group HY (in tsd. ) 17,043 27,259 4,196 3,149 2,614 60,666 40,491 Cash, net 1 st of January * Gross operating Cash flow Working capital Var. Investments Corp. taxes paid Financing Cash, net 30th of June * * After deducting bank overdrafts 25

26 Investments by sector Investments (in millions of euros) Investments by sector (in millions of euros) Investments Amortization Special metals Plastics Zinc Lead HY HY 26

27 1. Market data and key figures by sector 2. HY consolidated financial statements 3. Cash flows 4. Legal proceedings 5. Conclusion and outlook for the Group 6. Q&A 27

28 Legal proceedings: next hearings calendar Claims from former employees of Metaleurop Nord SAS Following an appeal against the judgments made on June 27, 2008 by the Lens labour tribunal (industry section), the Douai Appeal Court on December 18, 2009: rejected the claims of 22 protected former employees, who decided to appeal to the Cour de Cassation.The judgment of the Cour de Cassation is due on September 28,. awarded damages to 460 former non-managerial employees totalling approximately 12.4 million, which were included in the liabilities of Recylex SA s continuation plan and are payable in instalments. On February 9, 2010, Recylex SA decided to appeal against these decisions to the Cour de Cassation. The judgment of the Cour de Cassation is due on September 28,. adjourned 11 cases. On December 17, 2010, the Douai Appeal Court awarded damages of 240,800 to eight former non-managerial employees. This sum was included in the liabilities of Recylex SA s continuation plan, and Recylex SA decided to appeal against these judgments to the Cour de Cassation. The cases relating to three former employees will be heard by the Douai Appeal Court on September 28,. Following an appeal against the judgments made on September 15, 2009, September 30, 2009 and February 26, 2010 by the Lens labour tribunal (management section), the Douai Appeal Court on December 17, 2010: rejected the claims of six protected former employees, who decided to appeal to the Cour de Cassation awarded damages of around 3.6 million to 84 former managerial employees. This sum was included in the liabilities of Recylex SA s continuation plan, and Recylex SA decided to appeal against these judgments to the Cour de Cassation. adjourned one case, which will be heard on September 28, Following the new claims for compensation made by 192 former employees of Metaleurop Nord SAS, Recylex SA intends to challenge both their admissibility and their merits. The next procedural hearings before the Lens labour tribunal (industry and management sections) are scheduled for September 20,. 28

29 Legal proceedings: next hearings calendar Claim from liquidators of Metaleurop Nord SAS On May 20,, the Conseil d Etat rejected Recylex SA s application for a declaration that the regulatory provision was illegal. The claim has been listed for a procedural hearing in the Douai Appeal Court on September 23,. On that date, the liquidators of Metaleurop Nord SAS will be able to make new submissions, to which Recylex SA will be able to respond until the closing date for the procedure, which will be set in due course by the Appeal Court. 29

30 1. Market data and key figures by sector 2. HY consolidated financial statements 3. Cash flows 4. Legal proceedings 5. Conclusion and outlook for the Group 6. Q&A 30

31 HY highlights Raw material prices still high Processed battery volumes comparable to the first half of 2010 Price increase in used battery smaller than in the first half of 2010 Positive operating income before non-recurring items in all business segments Cash position affected by higher inventories in the Lead segment Consolidated net income affected by the hedging of the Group s lead inventories 31

32 Outlook for the second semester Uncertainty regarding the markets volatility after the drop of the base metals price in August Maintenance shutdown of Nordenham smelter forecasted during the second semester Inter-company logistics flows optimization internal audit still ongoing Mines and old sites: pursuit of the rehabilitation program o o As at July 15,, Recylex SA still holds 13 mines waiting for final release after having released 16 mines since 2004 Filing of building permit and updating of administrative authorizations in order to launch the rehabilitation program of l Estaque site 32

33 1. Market data and key figures by sector 2. HY consolidated financial statements 3. Cash flows 4. Legal proceedings 5. Conclusion and outlook for the Group 6. Q&A 33