Slide 1: Advancing Materials Innovation Second Quarter 2016
Advancing Materials Innovation NASDAQ: GSM Second Quarter 2016
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical f
Slide 3: Table of contents
Table of contents I. Q2 overview II. Selected financial highlights
Slide 4: I. Q2 overview
I]. Q2 overview
Slide 5: Challenging pricing environment persisted in Q2 but has stabilized
Challenging pricing environment persisted in Q2 but has stabilized Silicon metal price of Silicon-based alloys Manganese alloys $1.01 per pound, price of $0.65 per pound, price of $777/MT, down 7% flat up 2% Silicon metal (37% of sales): recent sale prices above indexes, and demand remains solid Sil
Slide 6: Ongoing cost management initiatives achieving results
Ongoing cost management initiatives achieving results Reduced costs Product and geographic diversification Realization of EBITDA synergies Nimble asset decisions Source: Company information Cost reduction of $11 million versus Q1 2016; primarily derived from improved energy prices, operational effic
Slide 7: Continuing to generate positive free cash flow
Continuing to generate positive free cash flow Generated free cash flow1 of $43.9 million in H1 2016, of which $8.6 million was generated in Q2 2016 Generated $96.5 million in working capital synergies year-to-date – $41.2 million improvement in working capital in Q2 2016 – $169.9 million in working
Slide 8: Opportunities for long-term value creation
Opportunities for long-term value creation Generating cash Strong market Strong balance sheet flow, even in position and multiple gives company down cycle and levers to pull given ability to grow identifying non- diversified products, organically and core asset end markets & inorganically divestitur
Slide 9: II. Selected financial highlights
II. Selected financial highlights - 8 -
Slide 10: Q2 key performance indicators and overview
Q2 key performance indicators and overview Six months Key performance ended June 30, Q2 2016 Q1 2016 Pro Forma CY 2015 indicators 2016 Sales ($m) 821.4 398.0 423.5 2,039.6 Operating Profit ($m) -93.0 -71.2 -21.8 -44.2 Profit Attributable to the -67.9 -42.2 -25.7 -96.6 Parent ($m) Adjusted EBITDA ($m
Slide 11: Sales volumes evolution (ton)
Sales volumes evolution (ton) (Q1 2015 thru Q2 2016) Silicon metal sales (ton) 92,449 96,667 87,471 96,768 90,105 85,242 120,000 100,000 80,000 57,132 61,099 54,165 52,685 60,000 50,945 51,668 40,000 20,000 38,285 39,536 36,525 35,668 37,420 33,574 0 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 GSM GFA FeSi
Slide 12: Balance sheet summary ($mm)
Balance sheet summary ($mm) Q2 20161 Q1 20161 12/31/2015 Total Assets 2,283 2,359 2,406 Net Debt2 413 421 393 Book Equity 1,220 1,272 1,295 Net Debt2 / Total Assets 18.1% 17.8% 16.3% Net Debt2 / Capital3 25.3% 24.9% 23.3% 1 Financial results are unaudited 2 Net Debt includes finance lease obligation
Slide 13: Q&A
Q&A - 12 -
Slide 14: Advancing Materials Innovation Second Quarter 2016
Advancing Materials Innovation NASDAQ: GSM Second Quarter 2016 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: August 25, 2016 FERROGLOBE PLC By: