Aurubis : Analysten-Telefonkonferenz Geschäftsbericht 2022/23

Annual Report

Fiscal Year 2022/23

Analyst Conference Call

on December 20, 2023

Aurubis closes fiscal year with respectable results at the upper end of the last forecast - despite criminal activities

Operating EBT of

€ 349 million

(PY: € 532 million)

Net cash flow

€ 573 million

(PY: € 295 million)1

1 Prior-year figures adjusted.

ROCE

11.3 %

(PY: 19.0 %)

Recommended

dividend

€ 1.40

(PY € 1.80)

The financial impact of the criminal acts directed against Aurubis had a significant

negative effect on fiscal year 2022/23

Operating EBT at the upper end of the forecast corridor: positively influenced by significantly higher treatment and refining charges for concentrates, a significant increase in the Aurubis copper premium, high demand for continuous cast wire

rod, and higher income from refining charges for recycling materials

Net cash flow doubled despite lower results of operations

Additional strategic projects, such as the new precious metals processing plant, slag processing and 4th stage of the PV plant in Pirdop, have been approved

Sustainability activities further expanded: completion of the test series with ammonia instead of natural gas, investments in hydrogen-capable("H2-ready") anode furnaces, successful Copper Mark certification of the plant in Olen

Forecast for FY 2023/24 follows on from the high average earnings level of the

last three years: operating result (EBT) between € 380 and 480 million

The financial impact of the criminal activities had a negative effect on the result;

key measures for increasing security have been identified and process adjustments made

Aurubis Analyst Conference Call on December 20, 2023

2

Criminal activities: Investigation moving forward at full speed

Initial situation

• Indications of significant deviations from the estimated metal inventories and in individual samples of specific shipments of input materials for the recycling area detected on August 31, 2023
• Highly professional criminal fraud activities identified as cause
• Extraordinary inventory launched immediately on August 31, 2023 values metals shortfall at € 185 million

Actionability established

LKA investigating: ongoing and close

cooperation with the authorities

SAFE Task Force established

Supervisory Board Security and Safety Committee convened

Internal investigation carried out by

external and internal experts

Transparent information disclosed to the

capital market and the general public

Aurubis Analyst Conference Call on December 20, 2023

3

Criminal activities: Expanded level of knowledge

Current status of investigation into criminal activities

Theft that came to light

in June

Manipulation of internal

samples of specific input

materials in the recycling

area

Additional precious metals

shortfall (intermediates)

• Trial started on December 12, 2023. We anticipate a guilty verdict.
• No significant impact on FY 2022/23.
• It has been narrowed down to one material group - the focus is on catalyzers containing high levels of precious metals.
• Shortfall in the high double-digit-million-euro range identified and booked against the € 30 million receivables paid from insurance.
• Forensic findings and comprehensive internal analyses reveal possible scenarios, but: The investigation is still ongoing.
• Low triple-digit-million-euro shortfall identified - countered by positive effects in the mid-double-digit-million-euro range.

Aurubis Analyst Conference Call on December 20, 2023

4

Criminal activities:

Security level increased

Financial impacts

• Balancing inventories using a variety of reliable, industry-standardestimation procedures
• These apply to stocktaking during inventory and to determining extractable metal content
• Marginal fluctuations in metal content are part of the business model. Metal price fluctuations also impact inventory measurement.
• These are the reasons the effects on balance sheet date September 30, 2023 cannot be fully reconciled with the € 185 million inventory difference identified on August 31, 2023.
• This results in a total difference valued at € 169 million on September 30, 2023.

Security measures enacted

Risk-basedweak-point analysis:

✓ Independent analysis of key critical areas

✓ The over 150 measures realized have effectively mitigated risk

Immediate measures include:

✓ Tightening access authorization for sensitive areas

✓ Staff increases for control and security services ✓ Extensive video surveillance

✓ Intensified screening of suppliers ✓ Additional security for transports

✓ Optimizations in the inventory area: detect differences earlier in the future

✓ Targeted investments in security - such as new precious metals processing facility

Security level significantly increased: similar incidents of this scope can be ruled out for the future

Aurubis Analyst Conference Call on December 20, 2023

5

Lower concentrate throughput due to shutdown with strong demand for wire rod

					Change vs.
				FY 2022/23	prior year
			Concentrate processing1	2,319,000 t	-5 %
			Copper scrap/	515,000 t	-5 %
			blister copper input2
			Other recycling materials2
			565,000 t	+8 %
			Cathode output	1,109,000 t	0 %
			Continuous cast wire rod	876,000 t	-1 %
			output
			Copper shapes output	178,000 t	-18 %
			Flat rolled products +	133,000 t	-24 %
			specialty wire output3
			Sulfuric acid output	2,158,000 t	-6 %

				Change vs.
			FY 2022/23	prior year
		Gold	49 t	+4 %
		Silver	921 t	+1 %
		Lead	38,088 t	-13 %
		Nickel	3,488 t	-10 %
		Tin	7,858 t	-16 %
		Zinc	13,791 t	-1 %
		Minor metals	875 t	+1 %
		Platinum group	9,858 kg	+4 %
		metals (PGMs)

1 Custom smelter production 2 Prior-year figures adjusted 3 Prior-year figures include FRP sites that have been sold

Aurubis Analyst Conference Call on December 20, 2023

6

Higher treatment and refining charges for concentrates, significant increase in copper premium, reduced demand for sulfuric acid

Trend in significant market prices and refining charges

450%

400%

350%

300%

250%

200%

150%

100%

50%

0%

Sep 19

Dez 19

Mrz 20

Jun 20

Sep 20

Dez 20

Mrz 21

Jun 21

Sep 21

Dez 21

Mrz 22

Jun 22

Sep 22

Dez 22

Mrz 23

Jun 23

Sep 23

100 % = Sept. 2019

Sulfuric acid price (spot CFR Brazil) Copper price (settlement)

Exchange rate (US$/€)

European refining charges

for copper scrap no. 2

Copper premium

TC/RCs for copper concentrates (contract)

Aurubis Analyst Conference Call on December 20, 2023

7

Financial impact of the criminal acts burden fiscal year 2022/23

		12M	12M
(operating IFRS)		2022/23	2021/22
Revenues	€m	17,064	18,521
Gross profit	€m	1,470	1,647
EBITDA	€m	557	753
EBIT	€m	342	533
EBT	€m	349	532
Consolidated net income	€m	268	433
Operating ROCE	(%)	11.3	19.0

(operating EBIT last 4 quarters)

Aurubis Analyst Conference Call on December 20, 2023

Gross margin for the Group in FY

Breakdown of income components in the Aurubis

Group FY 2022/23 (prior-year figures in parentheses)

34 % (28 %)
Treatment charges	27 % (38 %)
for concentrates +
recycling input	Metal result

• € 1,986 million*

(~ € 2,240 million*)

39 % (34 %)

Premiums +

products

• Gross margin = Total of earnings components metal result, treatment and refining charges for concentrates + recycling input, and premiums + products

Aurubis Analyst Conference Call on December 20, 2023

Lower energy costs were a significant decrease in Group costs

Overview of cost/expense positions FY 2022/23

(prior-year figures in parentheses)

11 % (11 %) Depreciation

and amortization

30 % (30 %) Personnel costs

13 % (12 %) Consumables

	~ € 1,888 million*
14 % (12 %)	(~ € 1,915 million*)
External
services
	19 % (17 %)
13 % (18 %)	Other operating
Energy costs	expenses

* Figures adjusted by energy compensations

Aurubis Analyst Conference Call on December 20, 2023