Aurubis Shares on the Capital Market

Stock markets at a high level

At the beginning of fiscal year 2016/17, events on the stock markets were driven by the European Central Bank’s ongoing relaxed monetary policy and by hopes that, under the newly-elected president Donald Trump, the US economy would enjoy even stronger growth. At the turn of the year, the DAX closed at 11,481 points and also continued to soar in 2017, with a tailwind from Wall Street. Additionally supported by good economic data from Germany, it reached an all-time high of 12,951 points on June 20, 2017 but slid again in August, at times below the threshold of 12,000 points. Among the factors to negatively impact the markets were profit taking, a surprisingly strong euro, the fear of a swift change in monetary policy at the European Central Bank, and the tensions between North Korea and the USA. The continued growth course in the euro zone, combined with the associated higher expectations for corporate earnings, as well as a euro that weakened in the course of renewed hope for a continuation of the US interest rate increase cycle allowed the DAX to once again climb to 12,829 points on September 29, 2017.

Aurubis shares outperform leading stock indices

Aurubis shares developed very positively in the fiscal year and, with an increase in value of 37 %, surpassed both the DAX (+22 %) and the MDAX (+20 %). After a slow start with an annual low of € 46.79 on November 4, 2016, Aurubis shares gained ground, supported by the upward trend on the stock markets as well as the Group’s positive forecast for the fiscal year, up to € 55.85 on March 1, 2017. After announcing the Vision 2025 and the efficiency enhancement program at the Annual General Meeting on March 2, 2017, shares surged to a new all-time high of € 63.28 on March 31, 2017 for the first time in the fiscal year. Supported by the intensive capital market communication regarding the Vision 2025, good quarterly results, positive analysts’ estimates as well as developments in the commodities sector, in the further course of the fiscal year the share price reached a new all-time high of € 79.29 on September 12, 2017. Negative analysts’ estimates as well as a temporary weakening in the commodities sector put an end to the increase and resulted in a share price that decreased to € 66.60 on September 26.

The share price ended the fiscal year slightly up at € 68.54 on September 29, 2017. Market capitalization therefore increased to € 3,081 million as at fiscal year-end (previous year: € 2,242 million).

Investing in Aurubis shares proved profitable not only from a short-term, fiscal-year perspective, but also from the perspective of long-term investors. Shareholders who invested a converted amount of € 1,000 at the time of Aurubis’ initial public offering in 1998 and reinvested the dividends they received (without a tax deduction) into Aurubis shares had a portfolio value of € 6,906 at the end of September 2017. This is a 591 % increase in value or a total annual return of 10.72 %. The MDAX recorded a 450 % increase in value during the same period.

Effective September 18, 2017, Aurubis shares were accepted into the STOXX Europe 600, in which the 600 largest companies from 18 European countries are represented.

Aurubis share performance compared with the DAX, MDAX and STOXX Europe 600

indexed to 100 %

Trading volume of Aurubis shares slightly below previous year

At 200,869 shares, the average daily Xetra trading volume was slightly below the previous year’s level (previous year: 204,776 shares).

Aurubis has a well-diversified shareholder structure

An analysis of the shareholder structure carried out in October 2017 showed that institutional investors increased to 50 % (previous year: 46 %). Growth was primarily recorded in North America and the rest of Europe. The majority of institutional investors are located abroad. The proportion of shares held by retail investors increased to 34 % (previous year: 29 %).

In the course of redeeming an exchangeable bond issued for Aurubis shares, Salzgitter AG reduced its shareholdings from 25.00 % to 15.75 % according to the voting rights notification on October 27, 2017.

Shareholder structure

Graphic: Shareholder structure

Executive Board and Supervisory Board suggest a dividend of € 1.45

The express objective of our dividend policy is to involve the shareholders in the company’s success adequately and consistently. The Executive Board and Supervisory Board will recommend a dividend of € 1.45 at the Annual General Meeting on March 1, 2018. This corresponds to a payout ratio of 28 % of Aurubis AG’s operating consolidated net income (previous year: 34 %). In fiscal year 2016/17, we changed the definition of the payout ratio. The new basis is the operating consolidated net income, and no longer the Aurubis AG’s unappropriated earnings. With this, we are in accordance with the usual presentation in the MDAX. The dividend yield based on the closing price as at September 29, 2017 amounts to 2.1 % (previous year: 2.5 %).

Intensive capital market communication due to strong interest in our new Vision 2025

In fiscal year 2016/17, the strong interest in our new Vision 2025, in our good earnings and share price trends, as well as in the varied development in our sub-markets led to intensive communication with capital market participants. Through various channels, we informed institutional and retail investors as well as other interested individuals promptly, continuously and purposefully about our business trends and, about areas of potential for the Aurubis Group.

Dialogue with institutional investors was once again a key part of our capital market communications this fiscal year, and involved numerous telephone conferences and individual meetings, as well as capital market conferences and roadshows held at the main financial centers in Europe and North America. Here, the Executive Board together with the Investor Relations department explained in detail Aurubis Group’s current business situation as well as the company’s new Vision 2025. When the quarterly reports were published, investors and analysts communicated with the Executive Board and management representatives via a live event and conference calls. Moreover, many investors were informed about our processes, operating facilities and products during visits to our Hamburg site.

A total of 20 international financial analysts regularly published recommendations and analyses about Aurubis’ shares during fiscal year 2016/17. The ratings were as follows at the end of the fiscal year:

Overview of analyst recommendations

Dialogue with our retail shareholders is also important for Aurubis. Our two events held in Hamburg and Lünen enabled retail shareholders to learn more about the Group’s current development and economic environment by allowing them to tour our sites and talk to our management and employees. We also held additional presentations for retail shareholders at events organized by private shareholder associations. Participation in our Annual General Meeting on March 2, 2017 was again pleasingly high, with about 1,500 shareholders.

Current information on the development of the company is available on our website. We provide financial reports, analyst presentations and additional publications in the download center.

Key figures of Aurubis shares

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    2016/17 2) 2015/16 2) 2014/15 2) 2013/14 2) 2012/13 2)
             
Closing price as at fiscal year-end 1) in € 68.54 49.88 56.90 39.16 44.80
Year high (close) 1) in € 78.47 61.68 59.68 49.49 57.24
Year low (close) 1) in € 46.79 37.54 36.43 36.19 38.68
Market capitalization as at fiscal year-end 1) in € million 3,081 2,242 2,558 1,761 2,014
Number of shares as at fiscal year-end in thousand units 44,956.7 44,956.7 44,956.7 44,956.7 44,956.7
Dividend or recommended dividend in € 1.45 1.25 1.35 1.00 1.10
Payout ratio 3) in % 28 34 24 45 53
Dividend yield in % 2.1 2.5 2.4 2.6 2.5
Operating earnings per share in € 5.21 3.64 5.68 2.17 2.06
Operating price/earnings ratio as at fiscal year-end   13.16 13.70 10.02 18.05 21.75
  
1) Xetra disclosures.
2) Values have been “operationally” adjusted for measurement effects deriving from the use of the average cost method in accordance with IAS 2 and from copper price-related measurement effects on inventories, as well as from purchase price allocation impacts, primarily on property, plant and equipment, commencing from fiscal year 2010/11 onwards.
3) In fiscal year 2016/17, the payout ratio definition was changed compared to the previous year. The new basis is the operating net result and no longer Aurubis AG’s unappropriated earnings.

Information on Aurubis shares

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Security identification number 676650
International Securities Identification Number (ISIN) DE 000 67 66 504
Stock market segment MDAX
Stock exchanges Regulated market: Frankfurt am Main and Hamburg; unofficial market: Berlin, Düsseldorf, Hanover, Munich, Stuttgart, Tradegate
Market segment Prime Standard
Issue price € 12.78
Average daily trading volume 200,869 shares in Xetra trading
Börse code NDA
Reuters code NAFG
Bloomberg code NDA_GR

Analyst coverage 2016/17

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Baader Bank Christian Obst
Bankhaus Lampe Marc Gabriel
Bank of America/Merrill Lynch Alexander Berglund
Berenberg Fawzi Hanano
Commerzbank Ingo-Martin Schachel
Credit Suisse James Gurry
Deutsche Bank Katja Filzek
DZ Bank Dirk Schlamp
Exane BNP Paribas Daniel Lurch
Goldman Sachs Eugene King
Haspa Ingo Schmidt
Hauck & Aufhäuser Henning Breiter
Independent Research GmbH Sven Diermeier
Kepler Cheuvreux Rochus Brauneiser
LBBW Jens Münstermann
Macquarie Research Alon Olsha
Morgan Stanley Dan Shaw
NordLB Holger Fechner
Quirin Bank AG Klaus Soer
M.M. Warburg Eggert Kuls