Slide 1: Third Quarter 2021 Results
Advancing Materials Innovation NASDAQ: GSM Third Quarter 2021 Results November 17th 2021 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 Q3 2021 Business Review Q3 2021 Financial Review Update on the Strategic Plan Appendix ─ Supplemental Information
Slide 4: Opening Remarks
OPENING REMARKS 4 Continued momentum in spot prices to unprecedented levels on the heels of tightness in the market Higher pricing in Q3 partially offset by higher input costs, coupled with operational and supply chain disruptions ─ solid execution of the turnaround plan mitigating some cost impact
Slide 5: I. Q3 Business Review
I. Q3 Business Review
Slide 6: Key Highlights and Key Drivers
KEY HIGHLIGHTS 6 KEY DRIVERS Increasing prices in silicon metals, silicon alloys and manganese alloys driven by strong demand Unprecedented energy costs in Spain Inflationary cost pressures from several key inputs Operational disruptions at several facilities resulting in loss production and higher
Slide 7: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 7 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Average realized price up 5.1% during the quarter Volume decreased by 8.3% due to a planned outage in the US (Alloy), as well as furnace shutdown in Spain (Sabon) Higher ener
Slide 8: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 8 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Average realized selling price up 8.8% Volume decrease by 14.3% primarily in ferrosilicon and foundry due to (i) lower production in Spain, (ii) maintenance downtime i
Slide 9: Product Category Snapshot: Manganese-Based Alloys
Product Category Snapshot Manganese-Based Alloys 9 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Average realized selling price up 11.3% Volume increased by 11.9%; higher contribution from furnace restart at Mo I Rana (Norway) Costs adversely impacted by energy
Slide 10: II. Q3 Financial Review
II. Q3 Financial Review
Slide 11: Income Statement Summary
INCOME STATEMENT SUMMARY Q3-21 vs. Q2-21 11 Sales relative flat quarter over quarter; higher prices offset with lower volumes Cost of sales as a % of sales increase due to higher energy prices in Spain and higher input costs (coal, coke) Other operating income and Other operating expense includes th
Slide 12: Adjusted EBITDA Bridge Q3-21 to Q2-21
ADJUSTED EBITDA BRIDGE Q3-21 to Q2-21 ($m) 12 Volume decreased 3% across main product categories: Silicon (8)%, Si-based alloys (14)% and Mn-based alloys 12%. Average selling price increased 6% across the main product categories: Silicon 5%, Silicon-based alloys 9% and Mn-based alloys 11%. Cost incr
Slide 13: Balance Sheet Summary
BALANCE SHEET SUMMARY 13 Unaudited Financial Statements Gross debt excludes bank borrowings on factoring program at Sep. 30, 2021 and 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: Mar. 31, 2021 – Unre
Slide 14: Cash Flow Summary
CASH FLOW SUMMARY 14 Operating cash flow was negative in the quarter driven by the significant investment in working capital. Simplified Cash Flows $’000 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 EBITDA (12,242) (630) (18,898) 31,943 35,231 Non-cash items 1 33,379 2,014 36,563 65 1,250 Changes in Working capita
Slide 15: Financing Update
FINANCING UPDATE 15 Refinancing Completed July 30th marked the “Transaction Effective Date” under the lock-up agreement date March 27th Completion of the following financing transactions: Extension of the maturity of the prior Senior Notes from March 31, 2022 to December 31, 2025. 98.588% of the pri
Slide 16: III. Update on Strategic Plan
III. Update on Strategic Plan
Slide 17: Strategic Plan Delivery YTD 9/30
strategic plan DELIVERY ─ YTD 9/30 Footprint Optimization ─ closed Niagara facility sale ─ agreement with French government on future of asset footprint in France Centralized Procurement ─ new organization working well ─ focus on operations initiatives (consumables, packing, parts, subcontracting, a
Slide 18: Q&A
Q&A
Slide 19: IV. Appendix - Supplemental Information
IV. Appendix ─ Supplemental Information
Slide 20: Quarterly Sales and Adjusted EBITDA
APPENDIX Quarterly sales and Adjusted EBITDA 20 Note: The amounts for prior periods have been restated to show the results of the Company’s Spanish hydroelectric plants within (Loss) profit for the period from discontinued operations and therefore these results are also excluded from adjusted EBITDA
Slide 21: Gross Debt at September 30, 2021
APPENDEX Gross debt at September 30, 2021 21 ($’000) Current Non-current Total balance sheet Less operating leases (1) Less LBP Factoring(2) Gross debt Bank borrowings 86,262 3,998 90,261 (84,523) 5,737 Lease liabilities 9,255 11,199 20,455 (19,702) 753 Debt instruments 25,823 405,172 430,995 430,99
Slide 22: Qtr/Qtr Gross Debt Evolution
QTR/QTR GROSS DEBT EVOLUTION Refinancing Impact 22 Gross debt ($m) Q2-21 FX 2nd Tranche Super Senior Coupon accrual Issuance costs1 FV2 Q3-21 Bank borrowings 5.1 0.6 - - - - 5.7 Lease liabilities 0.7 0.1 - - - - 0.8 Other financial liabilities 61.3 0.4 - - - - 61.8 Debt instruments 396.9 - 20.0 10.1
Slide 23: Thank You
THANK YOU www.ferroglobe.com 23