Slide 1: Fourth Quarter and Full Year 2023 Results
Advancing Materials Innovation NASDAQ: GSM Fourth Quarter and Full Year 2023 Results February 22, 2024
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: Q4 and Full Year 2023 Business Review
Q4 and Full Year 2023 Business Review
Slide 4: Opening Remarks: Operational and Financial Accomplishments
$1.65B – SALES, down 36% Y/Y $315M – ADJ EBITDA, down 63% Y/Y 729kt – Shipments, down 13% Y/Y STRENGTHENED BALANCE SHEET THROUGH STRONG OPERATING CASH FLOWS • Redeemed remaining $148M of Senior Secured Notes in February 2024 • Net cash positive post-redemption of Senior Secured Notes POSITIONING THE
Slide 5: Product Category Snapshot: Silicon Metal
5 Sequential quarters Adj. EBITDA evolution ($m) Index pricing trends ($/mt) Volume trends PRODUCT CATEGORY SNAPSHOT Silicon Metal • Silicon metal generated $22 million of adjusted EBITDA, down from $81 million in the third quarter • Volumes declined by 13% due to slow demand • Prices remained under
Slide 6: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 6 • Silicon-based alloys generated $35 million of adjusted EBITDA, up from $25 million in the third quarter • Volumes remained flat in the fourth quarter • Realized prices remained under pressure during the quarter, falling by 7% • Cost positively impac
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 • Manganese-based alloys generated $24 million adjusted EBITDA, up from $11 million in the third quarter • Volumes increased by 9% due to lower imports from Asia • Realized prices remained under pressure during the quarter, falling by 6% • Cost posi
Slide 8: Q4 & FY 2023 Financial Review
Q4 & FY 2023 Financial Review
Slide 9: Income Statement Summary
INCOME STATEMENT SUMMARY Q4-23 VS. Q3-23 FY 2023 VS. FY 2022 9 • Despite declining index prices, we posted solid Adj. EBITDA of $60 million in 4Q and $315 million for the full year 2023 • Raw materials and energy consumption includes the French energy agreement benefit • Impairment charge of $24 mil
Slide 10: Adjusted EBITDA Bridge Q4-23 vs. Q3-23
ADJUSTED EBITDA BRIDGE Q4-23 VS. Q3-23 ($m) 10 • Average selling prices across core products decreased 8.8%: Silicon metal -3.2%, silicon-based alloys -7.1% and Mn-based alloys -5.8% • Total volume decreased 1.4% : Silicon metal -12.7%, silicon-based alloys 0.0% and Mn-based alloys +8.9% • Costs rem
Slide 11: Adjusted EBITDA Bridge FY 2023 vs. FY 2022
ADJUSTED EBITDA Bridge FY 2023 VS. FY 2022 ($m) 11 • Average selling prices across core products decreased 28.9%: Silicon Metal -30.3%, Silicon-based alloys -30.6%, and Mn-based alloys -35.8% • Total volumes decreased 13.5%: Silicon Metal -7.1%, Silicon-based alloys -6.2%, and Mn-based alloys -23.1%
Slide 12: Cash and Debt Evolution
450 400 400 237 239 127 55 37 71 101 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Adj. Gross Debt Net Debt 323 344 363 166 138 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Cash trends ($m) Adjusted gross and net debt ($m) CASH AND DEBT EVOLUTION 12 • Cash balance of $138 million as of Dec. 31, 2023: ― Bolstered by an early, part
Slide 13: Key Cash Flow Highlights
13 • Generated $93 million of free cash flow in 2023 ― Includes $56 million early partial payment from French energy agreement • Released $154 million of working capital in 2023 • 2023 non-cash items include the benefit from the French energy agreement Key cash flow highlights (1) Free cash flow is
Slide 14: Corporate Update
Corporate Updateb
Slide 15: Corporate Update: Net Cash Positive, Capital Allocation, EV Battery Partnerships
15 Net cash positive for first time in Company's history after receipt of payment from French Energy Agreement ― Net cash positive after the $148 million redemption of remaining Senior Secured Notes in February ― Full redemption of the Senior Secured Notes reduces annual interest expense by $32 mill
Slide 16: Q&A
Q&A
Slide 17: Appendix ─ Supplemental Information
Appendix ─ Supplemental Information
Slide 18: Quarterly Sales and Adjusted EBITDA
QUARTERLY SALES AND ADJUSTED EBITDA 18 241 303 185 130 45 106 104 60 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Adjusted EBITDA Quarterly Sales $ millions Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Silicon Metal 313 356 264 184 161 195 198 168 Silicon Alloys 212 236 179 127
Slide 19: Adjusted Gross Debt Dec-23
Adjusted gross debt Dec-23 19 Notes: 1. Operating leases are excluded for comparison purposes and to align to the balance sheet prior to IFRS16 adoption 2. LBP excluded for comparison purposes 3. NMTC program is a federal tax credit to help economically distressed communities attract private capital
Slide 20: Thank You
THANK YOU www.ferroglobe.com 20