1H2016 IFRS FINANCIAL RESULTS

Transcription

1 1H2016 IFRS FINANCIAL RESULTS

2 Disclaimer These preliminary materials and any accompanying oral presentation (together, the Materials ) have been prepared by MYTILINEOS Holdings SA (the Company ) and are intended solely for the information of the Recipient. The Materials are in draft form and the analyses and conclusions contained in the Materials are preliminary in nature and subject to further investigation and analysis. The Materials are not intended to provide any definitive advice or opinion of any kind and the Materials should not be relied on for any purpose. The Materials may not be reproduced, in whole or in part, nor summarised, excerpted from, quoted or otherwise publicly referred to, nor discussed with or disclosed to anyone else without the prior written consent of the Company. The Company has not verified any of the information provided to it for the purpose of preparing the Materials and no representation or warranty, express or implied, is made and no responsibility is or will be accepted by the Company as to or in relation to the accuracy, reliability or completeness of any such information. The conclusions contained in the Materials constitute the Company s preliminary views as of the date of the Materials and are based solely on the information received by it up to the date hereof. The information included in this document may be subject to change and the Company has no obligation to update any information given in this report. The Recipient will be solely responsible for conducting its own assessment of the information set out in the Materials and for the underlying business decision to effect any transaction recommended by, or arising out of, the Materials. The Company has not had made an independent evaluation or appraisal of the shares, assets or liabilities (contingent or otherwise) of the Company. All projections and forecasts in the Materials are preliminary illustrative exercises using the assumptions described herein, which assumptions may or may not prove to be correct. The actual outcome may be materially affected by changes in economic and other circumstances which cannot be foreseen. No representation or warranty is made that any estimate contained herein will be achieved. 2

3 AGENDA 1H2016 Results Highlights Summary Financial Results Business Units Performance Q&A 3 3

4 9M 2012 RESULTS HIGHLIGHTS 9M 2012 RESULTS HIGHLIGHTS 1H2016 RESULTS HIGHLIGHTS MYTILINEOS GROUP Turnover: m. Vs m. Last Year. EBITDA: m. Vs m Last Year. Earnings after Tax & Minorities: 12.4 m Vs 32.8 m Last Year. Net Debt: 536 m. as of 30/06/2016. Equity: 1,238 m. METKA Turnover: m Vs m Last Year. EBITDA: 38.7 m Vs 46.2 m Last Year. Earnings after Tax & Minorities: 19.4 m Vs 29.2 m Last Year. Backlog as of 30/06/2016: 1.1 bn. Net Cash Position: m. as of 30/06/2016. Source: Company Information. 4

5 FY2015 RESULTS HIGHLIGHTS Group Solid overall 1H2016 performance despite adverse domestic and market conditions. Increased performance of Energy Sector, successful implementation of Excellence cost cutting program of AoG and execution of the existing backlog by METKA. Metallurgy & Mining Soft 1H performance attributed mainly to particularly low All in Aluminium prices and strong comparables expected to be reversed in the 2 nd Half of the year. LME Prices rebounded from their low levels recorded in 1Q2016 breaking above the 1,650 $/tn mark in the 2 nd Quarter. Healthy global demand for primary Aluminium. Market in highest H1 deficit since METKA (EPC) Resilient performance in 1H2016 supported by the successful execution of current backlog. Focus on expanding business in Sub-Sahara region. Strengthening of company s portfolio of activities. First significant contribution from METKA EGN. Energy Strong overall performance exceeded already 2015 annual results. Declining Natural Gas prices boost the Group s power plants load factors. Significant increase of the Group s Market Share both in wholesale and retail electricity market. Source: Company Information. 5

6 AGENDA 1H2016 Results Highlights Summary Financial Results Business Units Performance Q&A 6 6

7 MYTILINEOS GROUP 1H2016 RESULTS HIGHLIGHTS Source: Company Information. 7

8 MYTILINEOS GROUP BALANCE SHEET (amounts in mil ) Balance Sheet H Liquidity Non Current Assets 1,845 1,838 Current Assets 1,072 1,061 Total Assets 2,917 2,899 Debt Cash & Cash Equivalents Equity 1,238 1,230 Adj. Equity 1,275 1,340 Net Debt Key Ratios H NET DEBT / EBITDA EV / EBITDA EBITDA / NET FIN. EXP ROCE 14.0% 17.1% ROE 2.0% 4.0% Adj. Equity = Equity + Market Value Adjustment for the Group s Listed Subsidiaries. Key Ratios refer to annualized figures. Net Debt = Debt Cash Position. Source: Company Information. 8

9 MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS Cash Debt Evolution Cash m. Net Debt m. The Cash Position of the Group stands at 273m. (+36% from 31/12/2015) Net Debt / EBITDA ratio at Source: Company Information.

10 GROUP - BUSINESS UNIT PERFORMANCE TURNOVER - EBITDA PER ACTIVITY EBITDA 1H2016: m. EBITDA 1H2015: m. *Corporate Center includes all other activities that are not directly linked to M&M, EPC & Energy. *EPC does not include intercompany transactions. Source: Company Information. 10

11 MYTILINEOS GROUP GAP ANALYSIS (amounts in mil ) (amounts in mil ) TURNOVER Source: Company Information. 11

12 MYTILINEOS GROUP GAP ANALYSIS (amounts in mil ) (amounts in mil ) EBITDA Source: Company Information 12

13 MYTILINEOS GROUP GAP ANALYSIS (amounts in mil ) NET PROFIT Source: Company Information 13

14 METKA GROUP 1H2016 RESULTS HIGHLIGHTS Source: Company Information. 14

15 METKA GROUP BALANCE SHEET (amounts in mil ) Balance Sheet 1H Liquidity Non Current Assets Current Assets Total Assets 1,062 1,101 Bank Debt 4 4 Cash Position Equity Current Liabilities Total Liabilities Net Debt Key Ratios 1H EV / EBITDA ROCE 12.9% 13.3% ROE 6.9% 7.9% Source: Company Information. 15

16 AGENDA 1H2016 Results Highlights Summary Financial Results Business Units Performance Outlook 16 16

17 M&M - INDUSTRY & MACRO ENVIRONMENT mmton Global Demand Evolution per Region Market Balance ALUMINIUM MARKET Demand: Total world consumption remains robust for yet another year. 1H2016 demand grew at 5.6%, surpassing 29 MMT. The transportation sector continues to fuel global demand growth which becomes more evenly distributed across core geographies. Supply: Production grew +1.4% yoy in 1H2016 (against 7.0% in 1H2015 yoy) mainly affected by low LME Prices. Curtailments: Production in ROW affected by the massive announced curtailments in the US. Curtailments in late 2015 in China have resulted in Chinese production growth slowing to 0.5% y- o-y in H Market Balance: In 1H2016, the global market recorded a deficit of 0.45mmt, the largest deficit for the first six months of the year in fifteen years. China generated a 0.03 million mton deficit. Furthermore ROW generated a 0.42 million mton deficit. Source: Company Information, CRU ANALYSIS, Harbour Intelligence. 17

18 Aluminium LME Prices Premiums ($/TN) AVG LME 1H2016: $1,549 Eurodollar - Brent $ pb M&M - INDUSTRY & MACRO ENVIRONMENT ALUMINIUM - ALUMINA Pricing: The average Aluminum all-in price during 1H2015 settled at $1,869 down 25.8% yoy as market sentiment was adversely affected by the downward adjustments to China s demand growth prospects and lower production costs. LME prices bounced back in late 2Q2016 driven by production curtailments in China. After the record-high levels attained at the end of 2014 and their rapid decline during 2015, Premia are now stabilised at levels compatible with the current LME prices for Aluminium. The average Alumina price during 2Q2016 rebounded from their low levels reaching $253 pt. in June as percentage of LME price, Alumina price decreased to 15.8%. Brent: The average price for Brent during 1H2016 dipped below $42 a barrel against $59.35 in 1H2015 (down 31% yoy). Gas: Market operates under oversupply conditions. Demand is expected to weaken after the nuclear restarts in Japan. In addition to that, the interconnectedness between markets is clearly growing due to LNG plants which make gas capable to be shipped overseas. In the Greek market, following the recently signed reverse flow agreement between DESFA/Bulgartransgaz, M&M conducted the first ever pipeline Gas export from Greece. Eurodollar: The average FX rate in 1H2016 remained practically unchanged at The Group is well positioned to benefit out of the structural strengthening of the USD. Source: Company Information, CRU ANALYSIS, Harbour Intelligence. 18

19 METALLURGY - MINING Metallurgy & Mining EBITDA Semi Annual Performance - All in Aluminium Prices Solid Performance 1H 2016 EBITDA at 37.0 up 13.4% vs 2H2015. All-In Prices settled at multi year low levels. Declining Oil and Natural Gas prices. New cost cutting program with code name EXCELLENCE underway. Source: Company Information. Bloomberg, Harbour Intelligence. 19

20 EPC METKA: INDUSTRY & MACRO ENVIRONMENT Fundamentals Prospects Greece Very weak project market due to adverse macro environment. Fuel mix changing with increasing penetration of Natural Gas & RES. A large portion of existing power generation capacity is old and inefficient. Energy: potential upgrading of inefficient lignite fired plants. Infrastructure: activity in selected areas, e.g. transportation South-East Central Europe- Turkey EU membership and convergence impose obligations for plant upgrades and/or closures. Years of under-investment and slow progress to upgrade capacity. Government support and relatively high level of acceptance for nuclear. SEE: some niche gas-fired activity, e.g. co-gen for district heating. Turkey remaining a large market for gas power generation. Middle East / N.Africa Generally strong demand, but with significant regional variations due to political instability. Gas in high demand as fuel source, with increasing emphasis on fuel efficiency. Good potential in several markets driven by underlying growth in power consumption. Possibilities for conversion of open cycle plants to combined cycle across the Middle East. Sub-Saharan Africa Strong fundamental power demand growth with widespread power shortages. Massive need for new energy infrastructure across the continent, but significant challenges for investors. Smaller distributed power projects with fast-track profile. Emerging private sector investments in medium / large scale gas-fired projects driven by strong investment appetite. Source: Company Company Information. Information. 20

21 Backlog Main EPC Projects under Execution in 2016: Ghana EPC - BACKLOG Ministry of Electricity: 250 MW mobile unit with GE supplying the main equipment. BOOT project with total contract value of $350 m. 1.1 bn Iraq Republic of Iraq: 1,250 MW OCGT in Basra. GE sub supplier for the main equipment. Contract value of 260 m. mil Backlog Sales Evolution Republic of Iraq: engineering, procurement and construction as required to enable operation of the Shat-Al-Basra Power Plant on heavy fuel oil. Contract value of 125 m. Algeria SPE (Spa): 368 MW 0CGT in Hassi R mel. METKA in Consortium with GE. Contract value of 93 m. SPE (Spa): 591 MW 0CGT in Hassi R mel II. METKA in Consortium with GE. Contract value of 175 m. Syria PEEGT: 724 MW CCGT in Deir Azzour. METKA leader of Consortium with Ansaldo. Contract value of 678 m. Greece ERGOSE: Construction of remaining infrastructure, permanent way, signallingtelecommanding, telecommunications and electrical engineering works for the tunnel facilities for the new railway line Kiato-Rododafni. Contract value of 225m. Puerto Rico 57 MW of Solar PV. EPC and O&M for the photovoltaic power plant. Contract value of $89.6m. Source: Company Information. 21

22 METKA EPC SEGMENT PERFORMANCE METKA establishes itself as a Leading European Energy EPC Contractor 47.0% of Turnover refers to energy thermal projects. 34.1% of Turnover refers to photovoltaic projects. 82.4% of Turnover derived from projects abroad. Geographical Turnover Analysis Source: Company Information. Source: Company Information. 22

23 ENERGY - INDUSTRY & MACRO ENVIRONMENT Key Characteristics & Trends Future Outlook Demand The demand for electricity in Greece decreased by 2.6% in 1H2016 yoy, mainly due to the mild weather conditions prevailed during the winter period. Demand for power outlook has deteriorated during the past years along with GDP performance expectations. Nevertheless the construction of the interconnections with the islands mainly Crete and Cyclades and potential recovery of the GDP is expected to drive electricity demand higher in the medium term. Supply Competitive Dynamics Regarding the generation mix, Lignite Production faced a significant decrease in the order of 27%. Hydro production decreased by 24%. Natural Gas participation (with AL/CHP) increased 108%. Net electricity Imports decreased by 12%. In an effort to enhance the competitiveness of the energy market but also meet the requirements of the MoU of the country with its lenders, clear requirements for opening-up the retail electricity market to other players have been set by which the role and market share of PPC will be reduced from ~95% in 2015 down to 75% by end of 2017 and to 50% by early Further increase of Gas-fired participation is anticipated in the fuel mix given that A significant part of old lignite capacity will be gradually decommissioned due to new environmental requirements. Flexible thermal production is needed to accommodate the increased penetration of RES, while low oil prices boost CCGT s competitiveness. NOME type auctions will be the key driver for the reform in the retail market. Moreover RAE has introduced a roadmap for the reform of the Greek wholesale market to move from a mandatory pool towards an economic day-ahead market (power exchange) with separate markets running in parallel for unit dispatch scheduling, ancillary services provision and balancing/real time scheduling. Source: Company Information.

24 ENERGY - INDUSTRY Fuel Mix Evolution ( ) NG production surpassed Lignite Production in June Electricity Market Developments in 1H2016 Total Demand raised at 24.6TWh (down 2.6%) (25.3TWh/1H2015). Total Domestic Power Production remained stable at 19.3TWh (19.2TWh/1H2015). Average SMP settled at 42.5 /MWh, (down 18.1%) 51.9 /MWh 2015). Lignite production reduced significantly at 6.5TWh (down 27.3% ) (9.0TWh/1H2015). Natural Gas production (with AL/CHP) 6.4TWh/2015 vs 3.1TWh/ 1H2015. (NG production raised 108% YoY). Hydro production settled at 2.5TWh (down 23.9% ) vs 3.2 TWh/1H2015. Total RES production 4.0TWh/2016 vs 4.0TWh/1H2015. Net Imports 5.3TWh/2015 vs 6.1TWh/1H2015 (down 12.1%). Domestic Market Fuel Mix 1H2016 Source: Company Information, HTSO, LAGIE.

25 ENERGY PERFORMANCE DATA Protergia Share Retail Market IPP Market Share Dynamics Protergia has seen it s market share increasing by 130% in the last 6 months. PPC market share continues to drop PPC lost more than 4% during the 1 st Half of The Group, being already established as the largest IPP in Greece, targets to become also the largest private electricity supplier, thus contributing to the effective opening up of the energy market. SMP data (EUR/MWh) Source: Company Information, HTSO, LAGIE. 25

26 ENERGY PERFORMANCE DATA Mytilineos Group Power Production H (MWh) Energy Sector Financial Results ( m.) Mytilineos Group thermal power plants produced 1.9TWh during 1H2016 this being: 32.3% of the total gas generation production 53.6% of the gas generation production of the IPPs and 9.7 % market share of the domestic power production. Source: Company Information, HTSO. Financial Performance refers to energy segment ( AG. NIKOLAOS CCGT, KORINTHOS POWER CCGT & RES). 26

27 Contact Information Dimitris Katralis IR Officer Tel: Fax: Mytilineos Holdings S.A. 5-7 Patroklou Str Maroussi Athens Greece Tel: Fax: