PRESENTACIONES EN EVENTOS

business unit

recycling/precious metals

in € million operating2010/11 operating2009/10

Revenues 4,548.0 3,399.6

EBT 100.1 49.4 EBIT 108.1 59.3

Capital expenditure * 55.2 47.4

Depreciation and amortisation (14.8) (14.1)

Average number of employees 1,079 999

* on intangible assets and property, plant and equipment

The core activity of BU Recycling/Precious Metals is the production of copper cathodes from a wide range of recycling raw materials. Recycling takes place in the Group at various locations. The main activities take place in the recycling centre in Lünen. In addition to copper scrap, increasing quan- tities of a variety of complex recycling raw materials, such as electronic scrap, are processed here using environmentally friendly and innovative technologies.

Subsidiaries and affiliates, such as Elektro-Recycling NORD GmbH, Hamburg (E.R.N., 70 % investment until 1 Decem- ber 2011, 100 % starting 2 December 2011), CABLO Metall- Recycling & Handel GmbH, Fehrbellin (100 %), and C.M.R. International N.V., Antwerp (50 %), are engaged in commodity trading and the preparation of raw materials.

We also process the by-metals contained in the copper raw materials into products in BU Recycling/Precious Metals. These include above all gold, silver and platinum group metals as well as lead, tin, nickel and other specialty products.

Financial RepoRtGroup ManaGeMent report

The business performance in BU Recycling/Precious Metals is mainly dependent on the availability of recycling raw materi- als, the attainable margins and the efficiency of the recycling processes. The economic trend in this sector is thus exposed to the fluctuations on the copper and precious metals markets as well as the economic situation. The state of the market for other metals also plays a role. Aurubis’ multi-metal recycling, which recovers as much of the valuable metal contents in the raw materials as possible, results in additional contributions to earnings.

good Copper SCrap Supply enSureS high refining ChargeS

BU Recycling/Precious Metals benefited in particular from good material availability in the copper scrap market in fiscal year 2010/11. The economy continued to recover, while the stable exchange prices for copper supported buying activities. As a result, there was a high supply of volumes in the first half of the fiscal year in particular. Metal traders often fulfilled their contractual delivery obligations in advance, and deliver- ies were accordingly high.

The good market situation was evident particularly in Germany and in our most important central European supply markets. Overseas markets also indicated a high level of quantities. Overall, we further expanded our market position in the fiscal year. We were able to improve the purchasing conditions again since China, the strongest competitor in copper scrap procurement, showed only limited buying interest.

We increased copper scrap processing at the various Aurubis smelter sites at good refining charges overall owing to the favourable market environment. The market situation, which was positive for us, continued for almost the whole fiscal year. Only towards the end did falling copper prices lead to uncer- tainty among market participants.

poSitive Market Situation for CoMplex reCyCling raw MaterialS

The recycling of complex secondary raw materials, which mostly contain low amounts of copper, is also an important part of our recycling business. These kinds of materials are processed in the Group, especially at the recycling centre in Lünen. They include electrical and electronic scrap as well as a variety of industrial residues, which we process in an efficient and environmentally sound fashion. They often con- tain precious metals and other metals. Our supply markets for these raw materials were once again located in Germany and bordering European countries, and to an increasing degree in non-European countries as well.

With the completion of the KRS-Plus project in summer 2011, we optimised and significantly expanded the processing of complex secondary raw materials once again.

Cathode output by sites

in thousand t, fiscal year 2010/11

364 213 349 221 400 300 200 100 0

Financial RepoRtGroup manaGement report

full utiliSation of reCyCling CapaCitieS

The recycling capacities in all Aurubis plants were fully utilised. The throughput in the Kayser Recycling System (KRS) at the Lünen site increased by 12 %, from 232,500 t in the prior year to 260,400 t. The modified production methods resulting from the KRS-Plus project were already apparent. The quan- tity of converted copper produced from complex recycling raw materials in the KRS and TBRC (KRS-Plus project) was increased. The copper anode output reached an excellent value again. The copper cathode output in the Lünen plant’s tankhouse amounted to 213,000 t (212,000 t in the prior year) in fiscal year 2010/11.

further voluMe inCreaSe in preCiouS Metal- bearing raw MaterialS

In addition to copper materials, precious metal-bearing raw materials are utilised in Aurubis’ fabrication processes. The volume increased considerably, supported by high precious metal prices. Because of the utilised capacities, there was a concentration on low-content materials that were ideal for the copper recovery processes and contributed positively to the earnings trend, especially when it came to silver.

Based on the good supply situation and high plant utilisation, we reached a peak level with an output of 1,374 t of silver (1,339 t in the prior year). The gold output decreased slightly to 35 t (38 t in the prior year) due to the feed but was still at a very high level.

bu reCyCling/preCiouS MetalS attainS very good reSult

BU Recycling/Precious Metals benefited in large part from the good economic situation in Germany in the past year again. The expectations we expressed in the prior year were completely fulfilled. The copper price level and the market situation for other metals continued to be decisive factors for recycling success.

Operating earnings before interest and taxes (EBIT) rose by € 48.8 million, or 82.3 % compared to the prior year to € 108.1 million. As expected, the good supply of recycling raw materials and the completion of the KRS-Plus project in summer 2011 led to an increase in value added at the Lünen site. In Hamburg a project to increase the electric furnace’s throughput in the secondary smelter was successfully implemented as well.

The BU’s revenues increased from € 3,400 million to € 4,548 million, primarily due to the prices.

The BU had an average of 1,079 employees. gold and silver output

in t 35 1,255 34 1,280 33 38 35 1,230 1,339 1,374 1,600 1,200 800 400 0 06/07 07/08 08/09 09/10 10/11 Gold Silver

Financial RepoRtGroup ManaGeMent report