RHI Magnesita N.V. results for the year ended 31 December 2017

2018-03-21

Mar. 21, 2018 - RHI Magnesita N.V. (LSE: RHIM), a global leading supplier of refractory products, systems and services, announces its audited results for the year ended 31 December 2017.

Highlights

Successful completion of the merger of RHI and Magnesita and the subsequent admission of RHI Magnesita N.V. to the Premium Segment of the London Stock Exchange

Integration progressing well, with senior management in place. “One face to the customer” deployed in sales and fully integrated production and supply chains

Adjusted pro-forma revenue of €2,677.2 million, up 11%, driven by sales growth in both steel and industrial divisions, supported by a more favourable market environment

Adjusted pro-forma EBITA of €304.1 million, up 39%

Adjusted pro-forma EBITA margin of 11.4%, up 230bps from the previous year, driven by higher sales and the Company’s initiatives to improve operational efficiencies

Net Debt/Adjusted pro-forma EBITDA of 1.9x, after the acquisition of the control of Magnesita in October 2017

Faster realization of synergies by one year: €40 million in 2018 and the balance of €70 million in 2019

Commenting on the results, Chief Executive Officer, Stefan Borgas and Chairman, Herbert Cordt, said:

“2017 was a truly transformational year for the business, which will go down in the company history as the year when we successfully implemented and completed the merger of RHI and Magnesita. The listing on the Premium Segment of the London Stock Exchange at the end of October was a resounding success for RHI Magnesita. The merger reshapes the landscape of the sector as RHI Magnesita is now the global market leader and the driving force of the industry.

In addition to the cross-border merger, RHI Magnesita recorded a strong operating performance in the financial year which is attributable to the company’s efficient operations, improving macroeconomic environment and the engagement of all employees worldwide. Global steel production outside China increased by 4%. The combined adjusted pro-forma revenue is up by 11% while adjusted pro-forma EBITA grew by 39%. The continued shortage of raw materials from China resulted in higher material input costs, which are being gradually passed-on in higher prices. Supplying our customers reliably throughout this period continues to be our primary focus. We would like to thank our customers for their continued support and trust.

2018 will be another important year, which has started well for RHI Magnesita and the Board is looking forward to the coming year with confidence.”