RHI Magnesita Regulatory News (RHIM)

RHI Magnesita N.V.

("RHI Magnesita" the "Company" or the "Group")

Share buyback programme of up to €50 million

Further to its third quarter trading statement, on 22 October 2020 (the "Q3 Update"), RHI Magnesita confirms that the trading trends outlined then have continued, further strengthening the Group's confidence in its outlook. The Group continues to see gradual improvement in demand in its end markets and its order book and remains on track to deliver FY 2020 adjusted EBITA1 in line with current market expectations2. The Group has demand visibility extending into the beginning of 2021 across its order book, including now for the Industrial Projects business. 

RHI Magnesita's balance sheet remains strong, with liquidity of €1.2 billion and significant EBITDA covenant headroom. Due to this strong financial position, the Company's capital allocation strategy has been to prioritise investment to improve its competitive position and shareholder returns, which has included the reinstatement of the 2020 interim dividend. Given the continued resilient trading and cash generation of the Group, the Board is today taking further steps to enhance shareholder returns, through a share buyback programme of up to €50 million. On completion of this programme, the Board will review the merits of further share purchases.

The Board is confident that both the interim dividend which will be paid on 21 December 2020, and this share buyback, will have a limited impact on Group leverage. Furthermore, it will not compromise the Group's ability to execute its internal investment plans or its flexibility to pursue value enhancing acquisition opportunities which meet its investment criteria.

Details of the buyback programme

RHI Magnesita has, today, entered into a non-discretionary arrangement with Barclays Bank Ireland PLC ("Barclays") to purchase its ordinary shares, represented by depositary interests ("Shares"), on behalf of the Company (the "Arrangement").

The Arrangement allows Barclays to purchase up to 4,947,770 Shares of one euro nominal value each, during the programme, up to the value of €50 million in aggregate (the "Programme").

The Programme will commence on 16 December 2020 and end no later than 16 December 2021. These Share purchases under the Programme will be made on the Company's behalf and independently of, and uninfluenced by, the Company. The purpose of the share buyback is to reduce the Company's share capital in order to return value to our shareholders. The Company intends to hold the purchased shares in treasury. The Company may elect to suspend the Programme and subsequently restart it, provided that when electing to suspend or restart the Programme, the Company is not in a closed period and is not in possession of inside information in relation to its securities.

Any purchases of Shares pursuant to the Arrangement will be subject to the terms of the Arrangement with Barclays and, in any case, will be effected in a manner consistent with the general authority vested in the Company to repurchase Shares (as granted by shareholders at the Company's most recent annual general meeting held on 18 June 2020), the EU Market Abuse Regulation (596/2014), and Chapter 12 of the Financial Conduct Authority's Listing Rules.

References in this announcement, at any time after the end of the transition period relating to the United Kingdom's withdrawal from the EU, shall, in relation to anything done or to be done under or subject to UK laws, be deemed to refer to the equivalent UK provision of retained EU law.

1. Adjusted EBITA excludes other income and expenses

2. Current market expectation based on Company compiled consensus as at 22 October 2020 of €248 million

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (596/2014/EU).

Further information

Investors

Annabel Hill, Interim Head of Investor Relations +44 7792 034254

annabel.hill@rhimagnesita.com

Media

Matt Denham, Teneo +44 7825 735596

About RHI Magnesita

RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are critical for 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 around the world, with around 13,000 employees in 35 main production sites and more than 70 sales offices. RHI Magnesita intends to leverage its 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, with a secondary listing on the Vienna Stock Exchange (Wiener Börse). For more information please visit: www.rhimagnesita.com.