IR Department
RHI Magnesita
7th Floor, 125 Old Broad Street
London
EC2N 1AR
United Kingdom
T: +44 20 7292 6171
Email: investor.relations@rhimagnesita.com
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RHI Magnesita is the global leader in refractories. We have the largest number of locations around the world and the most innovative, reliable products and services. We also provide the most robust supply and quality security, thanks to our exceptional vertical integration – from mining to production to full service solutions.
(English) Stefan Borgas Chief Executive Officer
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Resilient margins with further potential in refractories
Stable and growing Refractories margin, at 9% in 2019 (c.400bps higher than 2016)
Further €95-115m EBITA upside by 2022 from management initiatives
Additional margin contribution from backward integration, albeit varying with prevailing raw materials pricing (long-term margin of at least 2%)
Strong cash conversion and robust balance sheet
Strong cash flow generation and significant liquidity
Robust balance sheet with leverage at 1.2x net debt to EBITDA
Capital flexibility to pursue both growth and shareholder returns
Strong competitive position
Market leader with a global footprint and a “local for local” strategy – 15% global market share (30% ex-China). Clear market leadership in Americas, Europe and Middle East
Innovation leadership, with opportunity to develop technology and digital solutions across regions and portfolio
Low cost, high quality vertical integration providing security of supply and unique solutions for the market, alongside high return on assets
Growth opportunity from new markets, solutions offering and M&A
Opportunity to grow materially in under-represented markets such as India and China
Greater penetration of value-added solutions offering to customers, improving refractory margins and retention
Opportunity for further consolidation through M&A
