13.11.2017

Zugemailt von / gefunden bei: Baader Helvea (BSN-Hinweis: Lauftext im Original des Aussenders, Titel (immer) und Bebilderung (oft) durch boerse-social.com aus dem Fotoarchiv von photaq.com)

-We confirm our Buy rating. New company reported very solid operating figures. They confirmed their integration targets. Almost every guidance from net debt to operatingperformance and figures below the EBITA line are more positive than in our calculation, so far.

-RHI Magnesita released a 9-month trading update together with a first presentation of the combined group. RHI Magnesita reported strong top- and bottom-line growth supported by healthy demand from customer industries.

-The next step will be a mandatory offer for the remaining Magnesita shareholders. The management expects to reach the required support of 2/3 of the outstanding shareholders for a delisting which might take place mid 2018.

-The management confirmed its synergy target of at least EUR 70mn until 2020. This guidance refers to the operating profit line. We have EUR 60mn in our model.

-RHI Magnesita expects significant additional synergies below the operating profit line. We have calculated with a net debt figure of approximately EUR 1bn for our 2020 scenario. Current net debt is only EUR 936mn now and the company should be able to reduce it by a meaningful amount in the coming years, driven by a strong cash flow. One example: Working capital amounted for approximately 26% of annualized sales. With the elimination of overlaps, a reallocation of production and supply chains and the replacement of third party raw material by internal products they should be able to reduce that figure towards 20%. We have calculated in our current scenario with net interest costs of EUR ~55mn. They guided for EUR 50mn post-closing and should be able to reduce it significantly in the coming years.

Facts & Analysis

-The new company wrote about pro-forma revenues of EUR 2.5bn in 2016 generated by 14,000 employees in 35 main production sites and 13 raw material sites.

-The regional split in percentage of sales in 28% Europe, 22% North America, 22% South America, 17% APAC and 13% MEA-CIS. Based on this structure the figures are heavily depending on the USD/EUR which accounted for 35% of 2016 sales and 65% of 2016 EBITDA.

-9-months sales of the combined group reached EUR 2,052.3mn, an increase of 9.3%. The operating development was supported by a strong demand for the two main customer industries steel and cement.

-Operating EBITA came in with EUR 224.6mn, an increase of 23.7% yoy. The operating EBITA margin reached 10.9%.

-Net debt stood at EUR 936mn with gross debt of EUR 1.27mn and a net cash position of EUR 338mn. The net debt/EBITDA ratio was below 2.5x. This was significantly below the level anticipated in the combination announcement one year ago. They expect to reach an investment grade in approximately two years time.

Company im Artikel

RHI Magnesita, Fotocredit: RHI Magnesita © Aussender

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