Last checked at 14 Nov 2019 07:00
RHI Magnesita N.V.
("RHI Magnesita", the "Company" or "the Group")
Capital Markets Event
RHI Magnesita, the leading global supplier of high-grade refractory products, systems and solutions, is hosting a Capital Markets Event in London for investors and analysts this morning.
Members of the senior management team will present on all aspects of the business including the Group's business model, sales and strategies, operations, innovation potential and financial priorities.
The presentations will set out how the current strategy will support future profitability, including details of two key initiatives, the Production Optimisation Plan and enhanced Sales Strategies. The Production Optimisation Plan includes the rationalisation and specialisation of the Group's production footprint and other cost reduction measures. The enhanced Sales Strategies continues focus on our key growth markets in Asia and the development of our solutions business model and digital customer offering.
These two initiatives are together targeting a run-rate, annual EBITA improvement of €70-80 million by 2022 and have associated costs to deliver of €220m, broadly split between 2020 and 2021. These costs will partly be financed by working capital reduction.
As previously announced, in 2020 we are expecting the delivery of the final merger synergies (an additional €20m EBITA in 2020), the turnaround of previously announced operational issues (€15m EBITA) and benefits from the recently implemented price management programme. These benefits, alongside the Production Optimisation Plan and Sales Strategies, are expected to help offset the market challenges in the short term. In the medium term, the Production Optimisation Plan and Sales Strategies are expected to deliver further upside, including margin improvement.
The event will be webcast at www.rhimagnesita.com. Presentation materials will also be made available on the website later today.
For further enquiries, please contact:
Guy Marks, Head of Investor Relations
Tel +44 (0) 7932 013357
E-mail: guy.marks@rhimagnesita.com
About RHI Magnesita
RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers in nearly all countries around the world. The Company has a high level of geographic diversification with more than 14,000 employees in 32 main production sites and more than 70 sales offices around the world. RHI Magnesita intends to leverage its global leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefitting from more dynamic economic growth prospects.
Its shares have a premium listing on the London Stock Exchange (symbol: RHIM) and are a constituent of the FTSE 250 index. For more information please visit: www.rhimagnesita.com