Aurubis still on the road to success

- Good results fulfill expectations

- Efficiency enhancement program attains planned success

- Earnings forecast for the entire fiscal year 2016/17 is confirmed

Hamburg, August 10, 2017, The operating EBT development can especially be traced back to higher concen-trate throughputs, despite the legally mandated maintenance shutdown in Ham-burg in the first quarter of the fiscal year. However, the previous year’s comparative figure was also influenced by a major shutdown, namely in Pirdop (Bulgaria). Simi-larly, relatively high treatment and refining charges for copper concentrates due to Aurubis’ advantageous input mix also bolstered the results. High refining charges for copper scrap with a good supply further contributed to the results. In addition, Aurubis profited from a high metal gain with high metal prices as well as from the US dollar exchange rate, which was advantageous for the company during the reporting period.

The oversupply of sulfuric acid on the global market (especially in the first half of the current fiscal year) and the resulting weak profits put pressure on the EBT. The lower cathode premium also had an impact.

Increased demand for flat rolled products also lead to higher sales of shapes, their preliminary products. Conversely, sales of wire rod were weaker than in the previ-ous year.

Operating ROCE (taking the operating EBIT of the last 4 quarters into considera-tion) rose to 13.0 % (previous year: 11.2 %).

Aurubis’ EBT on the basis of IFRS amounted to € 371 million (previous year: € 98 million). In contrast to operating earnings, IFRS earnings include measurement effects due to copper price fluctuations and other factors. Therefore, the operating earnings are decisive for Aurubis in assessing the business performance and managing the company.

Earnings forecast for the entire fiscal year 2016/17 is confirmed - The Aurubis Group generated operating earnings before taxes (EBT) of € 211 million in the first nine months of fiscal year 2016/17 (previous year: € 148 million). Group revenue also increased by approximately € 1,113 million to € 8,189 million due to higher metal prices.

„The third quarter, with an operating EBT of € 93 million, was extraordinarily good“, summarized Jürgen Schachler, Chief Executive Officer of Aurubis AG. “Espe-cially the performance in Bulgaria, where we were able to process complex materi-als since the shutdown in the previous year, contributed positively to the results. Additionally, we took advantage of the good scrap supply and achieved high refin-ing charges. The efficiency enhancement program also contributed to the good results.”

The efficiency enhancement program is a part of the ONE Aurubis transformation program, with which the requirements for achieving the Vision 2025 will be accom-plished, which Aurubis introduced in March 2017. Aurubis wants to increase the EBITDA by more than € 200 million by fiscal year 2019/20. More than 80 % of the annual target of around € 30 million has already been reached, with significant 2/4 contributions from the Hamburg and Lьnen plants, as well as the Business Line Flat Rolled Products.

In addition to the improved results achieved by the efficiency enhancement pro-gram, other ONE Aurubis projects are also forging ahead. At present, the company is adjusting its strategy to the Vision 2025. Subject to Supervisory Board approval, this will be introduced on December 13, 2017 during the presentation of the fiscal year figures. A primary strategic element thereby will be the internal growth project “Future Complex Metallurgy”, which includes an expansion of processing more complex raw materials, shortening throughput times for precious metals and mak-ing possible an optimized output of additional metals.

Aurubis is likewise now working out the details of a new organizational structure, which will be more closely to the value-added processes in the company. These should take effect at the beginning of the next fiscal year on October 1, 2017.

Outlook

Overall, Aurubis expects a continued stable to good market situation in the raw material and product markets. The company anticipates satisfactory smelting and refining charges for copper concentrates until the end of the fiscal year, although these are currently under pressure on the global marketplace. Aurubis’ core com-petency of processing complex concentrates is helping to maintain a higher stan-dard. The largest copper recycler in the world sees good supply on the copper scrap market, with correspondingly high refining charges in the coming months.

Aurubis expects a slight recovery for sulfuric acid revenues, as long as the im-proved development in the sales markets continues.

Stable sales are currently emerging for wire rod, which will however be below the previous year. Conversely, Aurubis expects strip product and shapes demand slightly above the previous year’s level.

Despite the currently weakening US dollar, the Group expects continued positive contributions due to its hedging strategy.

Jürgen Schachler confirms the forecast for the whole year once again: “We ex-pect significantly higher operating earnings before taxes and a slightly higher ROCE compared to the previous year.”

You can find the complete report on the first nine months of fiscal year 2016/17 at www.aurubis.com

 

At a Glance

Key Aurubis Group figures

Q3r

9 months

2016/17

2015/16

Change

2016/17

2015/16

Change

Revenues

€m

2,761

2,351

17 %

8,189

7,076

16 %

Gross profit

€m

319

264

21 %

1,027

722

42 %

Operating gross profit

€m

313

240

30 %

867

766

13 %

Personnel expenses

€m

120

114

5 %

357

337

6 %

Depreciation and amortization

€m

33

33

0 %

99

98

1 %

Operating depreciation and amortiza-tion

€m

32

31

3 %

96

93

3 %

EBITDA**

€m

132

94

40 %

476

210

> 100 %

Operating EBITDA**

€m

126

70

80 %

316

254

24 %

EBIT

€m

99

61

62 %

377

112

> 100 %

Operating EBIT

€m

94

39

> 100 %

220

161

37 %

EBT

€m

99

58

71 %

371

98

> 100 %

Operating EBT*

€m

93

35

> 100 %

211

148

43 %

Consolidated net result

€m

77

42

83 %

285

72

> 100 %

Operating consolidated net result

€m

71

26

> 100 %

161

109

48 %

Earnings per share

1.70

0.94

81 %

6.32

1.58

> 100 %

Operating earnings per share

1.59

0.57

> 100 %

3.57

2.40

49 %

Net cash flow

€m

150

203

-26 %

191

45

> 100 %

Capital expenditure (excl. financial fixed assets)

€m

26

41

-37 %

131

107

22 %

Operating ROCE*

%

-

-

-

13.0

11.2

-

Copper price (average)

US$/t

5,662

4,729

20 %

5,591

4,765

17 %

Copper price (balance sheet date)

US$/t

-

-

-

5,908

4,827

22 %

Human resources (average)

6,473

6,380

1 %

6,473

6,337

2 %

*Corporate control parameters

Comments on the results are presented in the explanatory notes to the results of operations, net assets and financial position.

**EBITDA (operating EBITDA) is determined from EBIT (operating EBIT) plus depreciation and amortization (operating depreciation and amortization).

 This report may include slight deviations in the totals due to rounding.

Production/throughput

Q3

9 months

2016/17

2015/16

Change

2016/17

2015/16

Change

BU Primary Copper

Concentrate throughput

1,000 t

634

373

70 %

1,804

1,572

15 %

Copper scrap / blister copper

1,000 t

24

20

20 %

80

79

1 %

Sulfuric acid output

1,000 t

630

349

81 %

1,757

1,503

17 %

Cathode output

1,000 t

158

135

17 %

467

438

7 %

BU Copper Products

Copper scrap / blister copper

1,000 t

66

83

-20 %

234

233

0 %

KRS throughput

1,000 t

75

58

29 %

197

189

4 %

Cathode output

1,000 t

136

121

12 %

396

375

6 %

Wire rod output

1,000 t

186

206

-10 %

541

588

-8 %

Continuous cast shape output

1,000 t

52

46

13 %

146

132

11 %

Flat rolled products and specialty wire output

1,000 t

61

59

3 %

172

164

5 %

 

 

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