Executive Board assessment of the Aurubis Group during fiscal year 2016/17

The Aurubis Group generated a result in fiscal year 2016/17 that was significantly higher than the previous year’s result. The statements made regarding the amount of the result for fiscal year 2016/17 in the outlook included in the last Annual Report and in the Quarterly Reports were confirmed. We increased our consolidated operating earnings before taxes to € 298 million (previous year: € 213 million).

Favorable developments in sub-markets and initial contributions to earnings from the efficiency enhancement program contributed to this. In particular, the situation on the copper scrap market had a positive impact. This was characterized by high supply levels, which allowed for good refining charges in purchasing. The higher metal yield with increased metal prices also had a positive effect. The efficiency enhancement program target set for the fiscal year of € 30 million operating EBITDA (minimum) within the scope of ONE Aurubis was met.

The internal operating ROCE target of 15 % for the entire Group was achieved.

The business development for the BU Primary Copper was characterized by good availability of input materials on the markets and a correspondingly good supply situation. The production disruptions at mines, which at times had an impact on the international concentrate market, did not directly affect us. The supply of the facilities was always secure, with satisfactory treatment and refining charges. Concentrate processing in our primary smelters reached a high of approximately 2.4 million t. A good supply enabled refining charges for copper scrap to rise significantly. The volume processed also increased. On this basis, cathode output was also above the previous year’s level. Other earnings-relevant factors for the BU Primary Copper results were the strong US dollar as well as the higher metal yield with increased metal prices.

Developments in the BU Copper Products varied. High refining charges also had a positive effect on copper scrap. On the other hand, lower copper premiums strained the result. Production and sales of wire rod decreased due to lower demand, but this was counterbalanced by good business with shapes. The efficiency enhancement measures in the Business Line Flat Rolled Products continued successfully.

Net cash flow was at a very good level, with € 480 million (previous year: € 236 million).

The Aurubis Group’s balance sheet structure continues to be very robust. The equity ratio (operating) is 52.5 % (previous year: 47.8 %). Net borrowings were at € –219 million (previous year € 23 million).