Slide 1: Advancing Materials Innovation: Fourth Quarter and Full Year 2021
Advancing Materials Innovation NASDAQ: GSM Fourth Quarter and Full Year 2021 March 3, 2022 1
Slide 2: Forward-Looking Statements and non-IFRS Financial Metrics
Forward-Looking Statements and non-IFRS Financial Metrics 2 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-looki
Slide 3: Table of Contents
TABLE OF CONTENTS Q4 2021 Business Review Q4 2021 Financial Review Trading Update Appendix ─ Supplemental Information
Slide 4: I. Q4 Business Review
I. Q4 Business Review
Slide 5: Opening Remarks: Business and Financial Highlights
OPENING REMARKS 5 BUSINESS HIGHLIGHTS Revenue growth in the fourth quarter was driven by strong fundamentals across all three product categories, which is expected to further fuel performance in 2022 Tightness in the market is driving pricing to unprecedented levels, primarily silicon metal and ferr
Slide 6: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 6 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Avg. realized price (non-JV shipments) up 23% in Q4 due to successful pass-through of higher energy costs Volumes increased by 3.2% supported by strong demand from the chemic
Slide 7: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 7 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Average realized selling price up 39.1%, predominantly supported by ferrosilicon and foundry – strong momentum in FeSi index pricing during Q4 Volumes increased by 7.5
Slide 8: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 8 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Average realized selling price up 9.3%, supported by higher prices and product mix Volume increased by 26.9% due to some seasonal spill-over from Q3 Costs adversely
Slide 9: Strategic Plan Delivered Above Target During First Year of Execution
STRATEGIC PLAN DELIVERED ABOVE TARGET DURING FIRST YEAR OF EXECUTION 9 Footprint Optimization ─ sale of Niagara facility in United States ─ rightsizing in Spain ─ final stage of France restructuring Centralized Procurement ─ new organization working well ─ ability to learn from data points across th
Slide 10: II. Q4 Financial Update
II. Q4 Financial Update
Slide 11: Income Statement Summary
INCOME STATEMENT SUMMARY Q4-21 vs. Q3-21 & fy 2021 vs. Fy 2020 11 Sales 33% up versus previous quarter driven by strong demand across all products Cost of sales as a % of sales has improved by 4%, as top-line growth more than offset higher energy and other cost Other operating income / expenses vari
Slide 12: Adjusted EBITDA Bridge Q4-21 vs Q3-21
ADJUSTED EBITDA Bridge Q4-21 vs Q3-21 ($m) 12 Average selling price across core products increased 19.2%: Silicon Metal (+19.3%), Silicon-based alloys (+39.1%) and Mn-based alloys (+9.3%) Volume across core products increased 13.8%: Silicon Metal (+3.2%), Si-based alloys (+7.5%) and Mn-based alloys
Slide 13: Adjusted EBITDA Bridge Full Year 2021 vs. 2020
ADJUSTED EBITDA Bridge Full Year 2021 vs. 2020 ($m) 13 Average selling price across core products increased 28.2%: Silicon Metal (+12.4%), Silicon-based alloys (+35.8%), and Mn-based alloys (+46.0%) Volume across core products increased 21.2%: Silicon Metal (+22.5%), Si-based alloys (+21.3%), and Mn
Slide 14: Balance Sheet Summary
BALANCE SHEET SUMMARY 14 Unaudited Financial Statements Adjusted gross debt excludes bank borrowings on factoring program at Dec. 31, 2021 & Dec. 31, 2020, and on the A/R securitization at Sept. 30, 2020 Cash and restricted cash includes the following as at the respective period ends: ─ Jun. 30, 202
Slide 15: Cash Flow Summary
CASH FLOW SUMMARY 15 Simplified Cash Flows $’000 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY2021 EBITDA (630) (18,898) 31,943 35,231 86,728 135,004 Non-cash items 2,014 36,563 65 1,250 768 38,646 Changes in Working capital 3,320 668 (37,476) (71,518) (62,871) (171,197) Changes in Accounts Receivables (53,604)
Slide 16: Financing Update: SEPI Fund Loans (Spain)
FINANCING UPDATE 16 SEPI Fund Loans (Spain) On February 15, the Spanish Fund for supporting strategic companies, on a proposal of Sociedad Estatal de Participaciones Industriales (“SEPI”), approved a loan of €34.5 million These loans are part of the SEPI fund intended to provide assistance to non-fi
Slide 17: III. Trading Update
III. Trading Update
Slide 18: Trading Update
TRADING UPDATE 18 Estimated (unaudited) Adjusted EBITDA for January 2022 is approximately $74 million ─ portfolio of products benefited from a strong pricing environment in January, particularly with the reset of silicon metal contracts ─ continued uncertainties and cost pressures lingering from hig
Slide 19: Q&A
Q&A
Slide 20: IV. Appendix - Supplemental Information
IV. Appendix ─ Supplemental Information
Slide 21: Appendix: Quarterly Sales and Adjusted EBITDA
APPENDIX Quarterly sales and Adjusted EBITDA 21 Note: The amounts for prior periods have been restated to show the results of the Company’s Spanish hydroelectric plants within (Loss) profit for the period from discontinued operations and therefore these results are also excluded from adjusted EBITDA
Slide 22: Appendix: Adjusted Gross and Net Debt Evolution
APPENDIX Adjusted Gross And Net Debt Evolution 22 Adjusted gross debt increased by $9 million due to the accrual of the Super Senior Notes and reinstated Senior Notes coupon Net debt has decreased by $13 million driven by $21.6 million of cash generated during Q4 456 419 464 499 508 324 334 358 404
Slide 23: Adjusted Gross Debt Breakdown
23 ($’000) Current Non-current Total balance sheet Less operating leases (1) Less LBP Factoring(2) Adjusted. gross debt Bank borrowings 95,297 3,670 98,967 - (93,090) 5,877 Lease liabilities 8,390 9,968 18,358 (17,751) - 607 Debt instruments 35,359 404,938 440,297 - - 440,297 Other financial liabili
Slide 24: Thank You
THANK YOU www.ferroglobe.com 24