Erfolge im Einkauf messen, darstellen und publik machen Jahreskongress 2015 Einkauf & Supply Management

Bernhard Goliasch, Head Group Raw Material Supply

RHI AG A World Leader in Refractories Technology

Refractories Indispensable for industrial high-temperature processes

Ceramic refractory products are used in all high-

temperature industrial processes (>1,200°C) since they

protect the production units/furnaces against thermal

(and also mechanical and chemical) stress

Base materials are Magnesite and Dolomite

(melting point of fused magnesia above 2,800°C)

RHI is a vertically integrated global provider of high-grade refractory products, systems and services,

which are indispensable for industrial high-temperature processes exceeding 1,200°C

Steel production

Cement /

lime production

Glass production

Bricks Mixes Linings

Magnesite Dolomite

Nonferrous metals

production

Refractory products High temperature

production processes

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RHI at one glance

Focus on production, sale and installation of high-grade

refractory products

Revenues of € 1,721 mio. and EBIT of € 109 mio. in 2014

32 production sites and more than 70 sales and service

sites, roughly 8,000 employees

Global partner for over 10,000 customers in more than 180

countries

Technology leadership with close to market R&D facilities

and tailor-made products

Steel Cement Glass Nonferrous

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Key facts Selected key customers

Sales

Production

Headquarters

Technology Center

Mines and

raw material production

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Market leader through global presence and comprehensive portfolio with broad customer base

Customer Industries Revenues by industry

Global Market Coverage Revenues by region

Steel 63%

Division Steel

RHI Group

Division Industrial

USA & Canada

Western Europe

Australia & Japan

43% Developed

Economies

South America &

Mexico

Asia

Middle East &

Africa

57% Emerging

Markets

CIS

Eastern Europe

Industrial 35%

Raw Materials 3%

Steel 64% NFM 9%

Glas 7%

UEC 5% UEC 5%

30%

13%

1%

5% 8%

12%

13%

18%

Cement 12%

Glass 7%

EEC 5%

28%

14%

1%

5% 7%

13%

13%

19%

21%

15%

2% 5% 7%

15%

14%

21%

Comprehensive offering of products, services and solutions

Investment goods

Longer replacement cycles

Customized solutions based on

the specific requirements of

various industrial production

processes

Complete lining concepts

including refractory engineering

Wide areas of application

Project driven demand cycles

Cement /

Lime annually Kilns

Glass up to 10 years Glass furnace

Nonferrous

Metals 1 – 10 years

Copper-

converter

Energy /

Environment /

Chemicals

5 – 10 years Secondary

reformer

Steel

Basic oxygen-,

electric arc furnace,

casting ladles

20 minutes to

2 months

~12%

~8%

~11%

~4%

~63%

Consumable product Systems and solutions for

complete refractory management

Demand correlated to steel output

Key industries Applications Replacement Revenue Refractory characteristics

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Slide gates

Different kind of refractory products

Refractory Linings

Bricks Mixes Linings

Flow Control & Functional Products

Selected Raw Materials

Nozzles Shrouds Purge plugs

Magnesite ore

Fused magnesia

Dead-burned magnesia

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Refractories production process (schematic)

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Strategic mining and raw material production assets

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Porsgrunn/NOR (Magnesia)

Drogheda/IRL (Magnesia)

Hochfilzen/AT (Magnesite)

Breitenau/AT (Magnesite)

Marone/IT (Dolomite)

Radenthein/AT (Magnesite)

Eskisehir/TR (Magnesite)

Dashiqiao/CN (Magnesite)

Strategy Focus

Profitable growth

Participate in the further catching-up process of the

emerging countries;

revenue contribution emerging markets: 57% => 70%

Strengthening #2 position in the flow control segment:

sales: 290 => >400 million €

Margin over volume

Raw material integration

Magnesia based raw materials only

Maintain 80% self sufficiency level also at turnover level

of 3bn € (still having an eye on market developments)

NOT become a trader of raw materials (but opportunistic

selling of raw materials to support mine and plant

utilization)

Innovation

Development of solutions that are tailored to customer

trends

4 strategic research areas: substitution of raw materials,

energy efficiency, functional products and recycling

New recipes and brand concept based on European

raw materials

Business Excellence

Optimize plant structure (adjust production capacities

and shift closer to customers) to ensure optimal

utilization of plants worldwide (EU: lower growth)

Adapt business processes continuously to better serve

customers and optimize costs

Lower growth of selling and administration costs

compared to revenue growth

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Results 2014

in € Mio. 2014 2013 Change in %

Revenue 1.721,2 1,754.7 (1.9)%

EBITDA 199.4 260.7* (23.5)%

EBITDA margin 11.6% 14.9% (3.3)%

EBIT 109.3 111.1 (1.6)%

EBIT margin 6.4% 6.3% 0.1pp

Profit before income tax 84.8 89.3 (5.0)%

Profit 52.5 63.4 (17.2)%

Dividend per share (in €) 0.75 0.75 -

Employees as of 12/31 8,016 8,121 (1.3)pp

* 2013 adjusted for income from the reversal of investment grants recognized as liabilities

RHI share price & shareholder structure

Corporate calendar

Information on RHI share

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< 65% Free float

> 25% MS Privatstiftung, Austria

> 5 % Chestnut Beteiligungsgesellschaft mbH*,

Germany

> 5 % Silver Beteiligungsgesellschaft mbH*,

Germany

Shareholder structure

Result 2014: March 27, 2015

Number of shares issued: 39,819,039

ISIN: AT000676903

Dividend per share: € 0,75

* Joint voting rights

RHI share performance

Established brands

The RHI brand comprises a series of successfully established trade marks:

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RHI history

Veitsch-Radex

1830 – 1900 1900 – 2000 2000 – today

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2013: Acquisition of

69.6% stake in

ORL/IN

In 1881 Carl Spaeter discovered a magnesite

deposit in Veitsch (Austria) and founded Veitscher

Magnesitwerke Actien-Gesellschaft in 1899.

In 1908 Emil Winter acquired the mining rights for a

magnesite deposit at Millstätter Alpe (Austria) and founded

the “Austro-American Magnesite Company“ (later Radex

Austria).

In 1834 Friedrich Ferdinand Didier founded

the factory Chamottefabrik F. Didier in

Podejuch near Stettin, then Prussia. Didier

thus became one of the first producers

of refractory bricks in Germany.

1993: Merger Veitsch-Radex

AG, today Veitsch-Radex

GmbH & Co OG is a 100%

subsidiary of RHI AG

2001: Deconsolidation

of GIT/Harbison-Walker,

NARCO

2006: Heraklith

sold

Since 1998: RHI AG,

previously Radex-Heraklith

Industriebeteiligungs AG

1995 RHI acquired a

majority holding in

Didier-Werke AG

1966: Acquisition

STOPINC

1989: Acquisition

NARCO

1993: Acquisition

REFEL

1993 RHI acquired a majority holding

of Dolomite Franchi.

1999: Takeover of

GIT/Harbison-Walker

2011: Acquisition

ZAO Podolsk/RU

Premier Periclase Ltd./IRL

SMA AS/NOR

2010: 100% acquisition of

Didier-Werke AG

2012: 100% acquisition

of Stopinc AG/CH

Founded in 1919 by Attilio Franchi.

2007: Integration

Monofrax

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RHI Purchasing Volume 2014 total: 955.036.309 Euro

-Volume: based on purchase orders from SAP Legal Entities;

-Travelmanagement: projection (basis Europe)

Raw Material 419.988.309

43,98%

Packaging 23.107.277

2,42%

Energy 135.547.284

14,19%

Supplies 39.791.664

4,17%

Freight Inbound 38.555.484

4,04%

Freight Outbound 99.614.747

10,43%

Investment 61.726.833

6,46%

Resale 56.308.326

5,90%

Services 72.697.357

7,61% Travel Management

7.699.028 0,81%

Purchasing Volume 2014

955.036.309 Euro

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SCM Raw Materials - tasks

The global economic cycles are getting shorter and worldwide availability of raw-

materials is more and more tight. This demands full-scale and dynamic Planning and

Scheduling of the main expanses for RHI – the raw-materials.

Logistics &

Inventory Mgmt.

Raw Mat. OML

Raw Materials Supply

OM

Purchasing Raw-

Materials

OMP

Plant Cluster Raw

Materials

OMR

Sales Raw-

Materials

OMS

• Demand Planning

• Dissolution/Explosition

• Raw Material Planning

• Disposition

• Inventory-Mgt.

• FC Inv. & Demands-

Inventory-Mgmt.

• Purchasing

• Supplier Development

• Purchasing Strategies

• Actions Primary R.

• FC MPV

• …

• Breitenau, Hochfilzen,

Eskisehir, Erzurum *‘),

Dashiquao, Drogheda,,

Porsgrunn,

MCC Raw Materials

Raw Material Qualität

Technics Raw Materials

• Sales Raw Materials

• FC Sales VE12

• …

Secondary Raw

Materials

OMM

B. Goliasch

• Global Purchasing of

SEK RM

• Securing the demands

for SEK RM

• Supplier Development

•Strategies / Projects

concerning use and

processing of SEK RM

•Inventory Mgmt.

17 B. Goliasch

Raw Material Explosion Captive Production – Budget 2014 (incl. ext. Sales)

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Material Price Variance

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Was messen wir?

• Einsparungen, Einsparungen,…

• Abweichungen zum Budget (Materialpreis, Energiepreis,…..)

• Anliefergenauigkeit der Rohstofflieferanten

• Qualität, Reklamationsreport

• Auslastung in Rohstoffwerken

• Forecast Genauigkeit

• Lagerstände Rohstoffe zentral, Werke

• Rezeptabweichungen (Material lt. Budget vs. ACTUAL eingesetztes

Material)

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Wie messen wir?

• Schlüssel zum Erfolg: Group Controlling

• SAP Extract -> Visualisierung in Excel, PPT

• Monatlich, quartalsweise abhängig vom Report

• Schlüssel zum Erfolg: Messen ohne Aktion und Nachverfolgung nützt

nichts

• Detail Reporting muss mit Group Reporting übereinstimmen

• „glaube keine Statistik, die du nicht selbst gemacht hast“ – stimmt nicht!!

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Einkaufserfolge intern kommunizieren

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Danke für Ihre Aufmerksamkeit!

www.rhi-ag.com

Important notice:

These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of RHI AG

(“RHI”), which are expressed in good faith and, in their opinion, reasonable. Theses statements may be identified by words such as

“expectation” or “target” and similar expressions, or by their context. Forward-looking statements involve known and unknown risks,

uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of RHI to differ materially

from the results, financial condition, performance or achievements express or implied by such forward-looking statements. Given these risks,

uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. RHI

disclaims any obligation to update these forward-looking statements to reflect future events or developments. All personal identifications are

valid for both sexes.

RHI AG, Group Raw Material Supply

Bernhard Goliasch

Wienerbergstraße 9, 1100 Vienna, Austria

Tel: +43(0) 50213-5404, E-Mail: bernhard.goliasch@rhi-ag.com

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