Aurubis Shares on the Capital Market

High volatility on stock markets due to Greek debt crisis and uncertainties about economic developments

Prices on the stock markets were highly volatile in fiscal year 2014/15. After a restrained start in October 2014, fiscal policy measures from the European issuing banks, positive growth data from the US and prospective interest rate increases by the US Federal Reserve led to price increases. The DAX rose to an all-time high of 12,375 points on April 10, 2015 as a result. Uncertainty among market participants about a solution to the Greek debt crisis sent stock markets into a tailspin in the following months, however. After an agreement about a bailout for Greece, fear of an economic slump in China triggered a price slide on the capital markets in late July. The DAX fell to 9,648 points on August 24, 2015. Prices for copper and oil also fell. Economic support measures from the Chinese central bank and renewed speculation about the timing of the interest rate turnaround in the US somewhat brightened the mood on the stock markets until mid-September. The Volkswagen scandal and subsequent fear of repercussions in the German economy caused leading stock indices to decrease significantly again. The DAX fell to a 2014/15 fiscal year low of 9,428 points on September 24, 2015.

Aurubis shares outperform leading stock indices

Because of the good earnings prospects, Aurubis shares developed very positively during the fiscal year and, with a 45 % increase in value, clearly outperformed the MDAX (+21 %) and the DAX, which remained behind the second-tier stocks with an increase of just 2 %. Aurubis shares ended ­fiscal year 2013/14 at € 39.16 (Xetra closing price as at September 30, 2014) and initially fell to the year’s low of € 36.43 on October 8, 2014. Nevertheless, they didn’t react very strongly to the nervousness that dominated the capital markets due to fears about an economic slowdown in the EU. With the improvement in the general market mood in November 2014, the shares took off and reached the high of the fiscal year, € 59.68, on May 4, 2015 due to the positive profit warning on April 29, 2015. They lost ground afterwards until early July due to stock market volatility caused by the Greek debt dispute. Despite the difficult market environment, the share price recovered until the end of the fiscal year, thanks in large part to the publication of very good quarterly figures, and ended the fiscal year at € 56.90 on September 30, 2015. Market capitalization therefore increased to € 2,558 million as at fiscal year-end from € 1,761 million in the previous year.

Aurubis share performance compared with the DAX and MDAX, from 1, 2014 to September 30, 2015

indexed to 100%

Aurubis thus isn’t only an attractive investment for 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 shares had a portfolio value of € 7,635 at the end of September 2015. This is a 664 % increase in value or a total annual return of 12.53 %. The MDAX recorded a 308 % increase in value during the same period.

Trading volume of Aurubis shares nearly reaches high prior-year volume

At 193,641 shares, the average daily Xetra trading volume was slightly below the high trading level of 198,490 shares during the previous year. The 2 % decline was likely due first and foremost to market participants’ uncertainty in the ­volatile market environment.

Aurubis shareholder structure still stable, well diversified

According to an evaluation in December 2014, the proportion of share capital held by institutional investors was 40 % and retail investors accounted for 35 %, just like last year. Salzgitter AG continued to hold 25 % of the share capital.

Most of the institutional investors are based outside of ­Germany: 13.4 % of the share capital is held in Germany, 11.0 % in Europe (excluding Germany), 10.4 % in North ­America, 4.7 % in UK/Ireland and 0.5 % in other regions.

Executive Board and Supervisory Board suggest dividend increase to € 1.35

Aurubis AG is traditionally known for its shareholder-­friendly dividend policy. We would like for our shareholders to participate in the Company’s success adequately again this year as well. The Executive Board and Supervisory Board will therefore recommend a dividend of € 1.35 per share at the Annual General Meeting on February 24, 2016. This corresponds to a payout ratio of 53 % of Aurubis AG’s earnings (51 % in the previous year). The return on the share based on the closing price as at September 30, 2015 amounts to 2.4 % (2.6 % in the previous year).

Prompt, continuous communication with institutional and retail investors

The Company’s good earnings trend in the volatile market environment led to a high demand for information among capital market participants in fiscal year 2014/15. We informed our institutional and retail investors as well as other interested individuals promptly, continuously and ­purposefully about our business trends and our strategy.

Shareholder structure

Chart: Shareholder structure

Communication with institutional investors has high priority for Aurubis. At 28 capital market conferences and roadshows at the main financial centers in Europe and North America, institutional investors and financial analysts even had several opportunities to speak directly with our top management. Furthermore, the Executive Board informed investors and analysts promptly about the quarterly results and further outlook for the fiscal year in conference calls. We also welcomed investors at our sites in Hamburg and Lünen as well, giving them a direct glimpse into our operating processes.

Aurubis AG is observed by a number of international financial analysts. A total of 22 financial institutions regularly published recommendations and analyses about Aurubis AG during fiscal year 2014/15. Their ratings were as follows at the end of the fiscal year:

Overview of analyst recommendations

Chart: Overview of analyst recommendations

At two very well attended dialogue events in Hamburg, we offered our retail investors the opportunity to get to know the Hamburg site and to receive information about the Group’s current development and economic environment in discussions with the Executive Board and other employees. We also held additional presentations for retail shareholders at events organized by private shareholder associations.

We informed the capital markets about certain developments with ad hoc announcements. These included a positive profit warning on April 29, 2015 as well as an announcement on October 2, 2015 about the appointment of Mr. Jürgen Schachler as the new Executive Board Chairman of the Aurubis Group.

Interest in the shares was strong again overall in fiscal year 2014/15, as evidenced by the fact that Exane BNP Paribas, an additional renowned international bank, began analyzing the shares for the first time. Participation in our Annual General Meeting on March 19, 2015 was high yet again with about 1,300 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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    2014/15 2) 2013/14 2) 2012/13 2) 2011/12 2) 2010/11 2) 3)
Closing price as at fiscal year-end 1) in € 56.90 39.16 44.80 45.35 38.19
Year high (close) 1) in € 59.68 49.49 57.24 46.60 45.85
Year low (close) 1) in € 36.43 36.19 38.68 35.44 33.60
Market capitalization as at            
fiscal year-end 1) in € million 2,558 1,761 2,014 2,039 1,717
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 € 1.35 1.00 1.10 1.35 1.20
Payout ratio in % 53 51 46 54 51
Operating earnings per share in € 5.68 2.17 2.06 4.58 4.79
Operating price/earnings ratio as at fiscal year-end   10.02 18.05 21.75 9.90 7.97
             
1) Xetra disclosures.
2) Values “operationally” adjusted by valuation results from the use of the average cost method in accordance with IAS 2, by copper price-related valuation effects on inventories and by effects from the purchase price allocation, mainly property, plant and equipment, from fiscal year 2010/11 onwards.
3) Including Luvata RPD as of September 1, 2011.
Certain prior-year figures have been adjusted.

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: Official trading in Frankfurt am Main and Hamburg; unofficial market in Düsseldorf, Stuttgart, Berlin/Bremen
Market segment: Prime Standard
Issue price: € 12.78
Average daily trading volume: 193,641 shares in Xetra trading
Deutsche Börse code: NDA
Reuters code: NAFG
Bloomberg code: NDA_GR

Analyst coverage 2014/15

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Baader Bank Christian Obst
Bankhaus Lampe Marc Gabriel
Bank of America/Merrill Lynch Cedar Ekblom
Commerzbank Ingo-Martin Schachel
Deutsche Bank Katja Filzek
Dr. Kalliwoda Research GmbH Dr. Norbert Kalliwoda
DZ Bank Dirk Schlamp
Exane BNP Paribas Daniel Lurch
Goldman Sachs Eugene King
Haspa Ingo Schmidt
Hauck & Aufhäuser Henning Breiter
HSBC Thorsten Zimmermann
Independent Research GmbH Sven Diermeier
Kepler Cheuvreux Rochus Brauneiser
LBBW Jens Münstermann
Macquarie Research Alon Olsha
Morgan Stanley Alain Gabriel
NordLB Holger Fechner
Quirin Bank AG Klaus Soer
SRH Alster Research AG Oliver Drebing
Steubing AG Michael Broeker
M.M. Warburg Eggert Kuls