2011 Annual Results. Yves ROCHE, Chief Executive Officer. Ingo SCHAEFER, Chief Financial Officer

Transcription

1 2011 Annual Results Yves ROCHE, Chief Executive Officer Ingo SCHAEFER, Chief Financial Officer

2 1. Market data and key figures by sector consolidated financial statements cash flows 4. Conclusion and outlook for the Group 5. Q&A 2

3 1. Market data and key figures by sector consolidated financial statements cash flows 4. Conclusion and outlook for the Group 5. Q&A 3

4 Lead: 5% market increase in 2011, boosted by China Same trend expected in Worldwide production (in thousands of tons) Main uses 12% 8% 20% Non-battery Replacement batteries Stationary batteries 15% 45% New batteries Other batteries Worlwide Production Mine production Consumption Surplus/deficit A market driven by the demand for batteries, in particular the demand for replacement batteries Brookhunt study 4

5 Lead: 2011 key figures Industrial performance % Evolution 2011 vs 2010 Treated batteries (in tons) 148, ,568 stable Lead production (in tons) 122, , % Revenues (in M ) % 5

6 Lead: 2011 key figures Financial performance after revaluation of stocks in LIFO* (in M ) Financial performance IFRS (in M ) % In % of revenues % In % of revenues EBIT % 0.5% EBIT % 2.8% EBITDA % 2.5% EBITDA % 2.8% Gross margin** % 14.1% Gross margin** % 18.6% * 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 19 in Notes to the Consolidated Financial Statements. ** Gross margin = Total Sales - Purchases used +/- Changes in work in progress and finished goods Goods transportation (included in external costs) 6

7 Lead: business model key parameters MINE BUSINESS MODEL RECYLEX BUSINESS MODEL Concentrates Market Lead production / Primary smelter Recycling Revenues Premiums By-products Overrecovery Smelter profit Recylex profit Overrecovery By-products Premiums Mine costs Treatment charges Costs Breakers profit Costs LME Lead price Treatment charges LME Lead price LME Lead price Used battery price Mines profit 7

8 Lead: business model key parameters main evolutions in 2011 Lead price average (in /t) 1,722 1,615 1,225 LME Lead price Treatment charges Premiums = = No change in market conditions between mines and smelters Same level as in % increase compared to 2010 By-products (sulphuric acid and silver) Strong price increase due to demand growth Overrecovery = No significant change in the smelter input ratio Used battery price Increase still ongoing due to a more competitive environment in

9 Lead: 2011 highlights and outlook for 2011 highlights: o o Market share maintained in terms of recycled batteries relative to last year, in an increasingly competitive environment 3.5% increase of lead production volumes o Positive results of tests launched on new raw materials in 2011 o Activity growth in Algeria: more than 10,000 tons of batteries processed by Eco-Recyclage (33.33% owned by Recylex SA) compared to 2,000 tons in 2010 Outlook: o o Industrial process: new raw materials tested and optimization research still ongoing Increase in battery processing volumes thanks to the geographical diversification of the supply coming from countries where processing capacity is low 9

10 Plastics: 2011 key figures Industrial performance % Evolution 2011 vs 2010 Polypropylene production (in tons) 11,106 12, % Revenues (in M ) % 10

11 Plastics: 2011 key figures Financial performance (in M ) % In % of revenues % EBIT % EBITDA % 9.5% % Gross margin* % ** Gross Margin = Total Sales - Purchases used +/- Changes in work in progress and finished goods - Goods transportation (included in external costs) 11

12 Plastics: 2011 highlights and outlook for 2011 highlights: o Polypropylene production rose by 15% o Higher sales volume of polypropylene in Germany and enlarged client portfolio in France Outlook: o Upward trend in sales volumes observed at the end of 2011 continued at the start of 12

13 Zinc: market increase (7.6%) in % increase expected in Worldwide production (in thousands of tons) Main uses % % 9% 12% 12% 54% Galvanizing Zinc alloys Brass and bronze Semi-f inished products 80% Chimical products Others Worlwide production Mine production Worlwide consumption Surplus/deficit A market still driven by the galvanizing in 2011 Brookhunt study 13

14 Zinc: 2011 key figures Industrial performance % Evolution 2011 vs 2010 Waelz oxides production* (in tons) 73,734 75, % 2010 Zinc oxides production (in tons) 25,880 24, % 2011 Revenues (in M ) % * including 100% Recytech SA 14

15 Zinc: 2011 key figures Financial performance (IFRS) (in M ) % In % of revenues EBIT % 10.5% EBITDA % 13.0% Gross margin* % 37.4% * Gross margin = Total Sales - Purchases used +/- Changes in work in progress and finished goods - Goods transportation (included in external costs) 15

16 Waelz oxides: business model key parameters RECYLEX BUSINESS MODEL WAELZ OXIDES STEEL MILLS RECYCLING steel dust Zinc producer Waste from steel production: Steel dust Recycling Treatment charges Treatment charges dust paid Sales revenues Dumping Costs Classified waste dump LME Zinc price Profit LME Zinc price 16

17 Waelz oxides: business model key parameters main evolutions in ,179 Zinc price average (in /t) 1,624 1,574 LME Zinc price 3% decrease compared to Treatment charges dust = No change compared to 2010 Treatment charges paid On line with the decrease of the zinc concentrates treatment charges 17

18 Zinc: 2011 highlights and outlook for 2011 highlights: o o Waelz oxides: steel dust processed at the same level of 2010 with a 3% increase of the sales Zinc oxides: o o Decrease by 4% in production that relates to more extensive planned shutdowns for maintenance in 2011 compared to 2010 Fall in demand, mainly in the tyre industry, leading to a 6% decrease of the sales Outlook: o Full benefit of the Capex launched in 2011 allowing to process more zinc contained in steel dust recycling (Waelz oxides) 18

19 Special metals: 2011 key figures Financial performance (IFRS) (in M ) % In % of revenues EBIT % 9.4% EBITDA % 11.7% Revenues % 19

20 Special metals: 2011 highlights and outlook for 2011 highlights: o Sales growth of 12% thanks to a sharp rise in selling prices of germanium and an increase in sales volumes for arsenic o EBITDA increase by 48% Outlook: o The Berenberg Bank was appointed as financial adviser in order to explore the best strategic opportunities for this division 20

21 1. Market data and key figures by sector consolidated financial statements cash flows 4. Conclusion and outlook for the Group 5. Q&A 21

22 Key figures (IFRS) (in tsd. ) FY 2011 FY 2010 VAR. Revenues 457, ,612 53,974 EBITDA 20,389 24,250 (3,861) EBIT (ROC) 7,553 14,108 (6,555) Non recurrent result (2,039) (9,838) 7,799 Net income 48 (4,250) 4,298 Cash flow after net interest and tax expense 9,349 13,894 (4,545) Operating cash flow (5,084) 19,409 (24,493) 22

23 Key figures (IFRS, after revaluation of stocks in LIFO*) (in tsd. ) FY 2011 FY 2010 VAR. EBITDA 19,128 20,250 (1,122) EBIT (ROC) 8,314 10,108 (1,794) Net income 588 (7,085) 7,673 Operating cash flow (5,084) 19,409 (24,493) Valuation method not admitted under IFRS 23

24 Key figures (IFRS) (in tsd. ) December 31, 2011 December 31, 2010 VAR. Financial debt (w/o factoring) 7,406 13,211 (5,805) Continuation plan (before discounting and including provisions) 21,979 25,606 (3,627) Provisions for risks and charges 40,807 43,419 (2,612) Investments 9,455 9, Working capital* 77,062 63,412 13,650 Cash net** 41,534 60,666 (19,132) Equity 100,196 99, Gearing (net) (short and long term debts + provisions - cash) 60% 49% * Inventories + trade receivables + other current assets + tax receivables - accounts payable - tax payables ** After deducting bank overdrafts 24

25 1. Market data and key figures by sector consolidated financial statements cash flows 4. Conclusion and outlook for the Group 5. Q&A 25

26 2011 Cash Flow Cash Flow FY 2011 (in tsd. ) Recylex SA*** 60,666 9,349 10,686 10,540 3,823 3,432 41,534 18,318 23,588 Cash, net 1st of January 2011* Cash flow after net interest and tax expense Working capital var. Investments Payment frozen debt & damages** Financing Cash, net December 31, 2011 * * After deducting bank overdrafts ** 2011 total amount of payments under the continuation plan *** See note 32 in Notes to the Consolidated Financial Statements Financial risk management 26

27 Legal proceedings: 2011 update Claims from former employees of Metaleurop Nord SAS September 28, 2011: Rejection by the employment division of the Cour de Cassation of appeals lodged by Recylex against the Douai Appeal Court decisions of December 18, 2009 having awarded damages to 460 non-managerial former employees for a total amount of 12.4 million (payable in installments under the continuation plan) The case before the Cour de cassation is still ongoing concerning the appeals lodged by Recylex against the Douai Appeal Court decisions of December 17, 2010 having awarded damages to 92 former managerial employees for a total amount of 3.8 million (payable in installments under the continuation plan) June 12, : Hearing for pleadings before the Industrial and Management sections of the Lens Labour Court concerning the claims for damages filed by 192 former employees in 2010, representing a global amount of 9.96 million Claim from liquidators of Metaleurop Nord SAS April 12, : Pleadings hearing before the Douai Court of Appeal The detailed schedule of legal proceedings against the Company can be consulted on the Company s website ( News) 27

28 Continuation plan: 2011 update The payment of the sixth installment of the continuation plan was made on November 24, 2011 for a total amount of around 4.5 million ( 3.8 million after elimination of intra-group debts). At December 31, 2011, the outstanding balance under the continuation plan stood at 25.6 million ( 21.9 million after elimination of intra-group debts), payable over the four next years until

29 Continuation plan & Loans (in tsd. ) Debts as at 31/12/2010* 25,021 Payment initial plan 2005 (2,201) Payment of damages to former non-mm employees of Metaleurop Nord (1,266) Payment of damages to former MM employees of Metaleurop Nord (356) Total payments (3,823) Integrations 76 Total integrations 76 Debts as at 31/12/2011* 21,274 *before discounting and after elimination of intra-group debts (in tsd. ) TOTAL Frozen debt before discounting 4,558 4,558 6,078 6,080 21,274 Loans including interests w/o factoring Maturity Cash Flows 5, ,156 Total 10,468 5,193 6,689 6,080 28,430 29

30 Provisions evolution in 2011 Release during the period (in tsd. ) December 31, 2010 Balance Increase during the period Discount to actual value Reclassed amounts Used Not used December 31, 2011 Balance Environmental provisions 32,226 1,162 (707) 0 (2,821) 0 29,860 Litigation 10, (18) 0 0 (160) 10,419 Restructuring (104) Other risks and charges (6) (83) Total provisions 43,419 1,288 (725) (6) (3,008) (160) 40,807 30

31 Rationalized investment policy Investments (in M ) Investments by sector (in M ) Investments Amortization Special metals Plastic Zinc Lead 31

32 1. Market data and key figures by sector consolidated financial statements cash flows 4. Conclusion and outlook for the Group 5. Q&A 32

33 2011 Highlights Processed volumes kept stable compared to 2010 Positive current operating income in all Group s businesses As at end of 2011, Recylex SA has released 16 mines since

34 Outlook for Cash management and pursuing the continuation plan taking account of current legal proceedings Start of the rehabilitation works of l Estaque site in accordance with the Prefect s order planning the end of these works in 2015 Implementation of Capex made in 2011 in order to improve the Lead and Zinc segments performance Diversifying the regions from which we source supplies 34

35 1. Market data and key figures by sector consolidated financial statements cash flows 4. Conclusion and outlook for the Group 5. Q&A 35