Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Shareholder Meeting (May 2019)
26 slides from Amg Critical Materials's shareholder meeting presentation, May 2019
Slide 1: Enabling CO2 Reduction – CEO Update May 2019
ENABLING CO2 REDUCTION CEO UPDATE MAY 2019 AMG ADVANCED METALLURGICAL GROUP N.V.
Slide 2: Agenda
AMG Market Capitalization 4 Vanadium Pricing 5 CO2 Reduction 6 Health & Safety 11 Growth Projects 12 AMG Technologies 18 Long-term Guidance 26
Slide 3: Cautionary Note
CAUTIONARY NOTE THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION AND IS BEING PROVIDED SOLELY FOR INFORMATION PURPOSES BY AMG ADVANCED METALLURGICAL GROUP N.V. (THE “COMPANY”) AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PU
Slide 4: 2015–2019 AMG Market Capitalization
I 2015 – 2019 AMG MARKET CAPITALIZATION 2015 2016 2017 2018 2019 € 1,650 + 201% AMG Market Capitalization in €M € 1,250 Market cap: + 67% €859M € 850 Share - 31% price: €27.40 € 450 + 34% - 1% Share Market price: cap: €6.75 €187M € 50 AMG Market Cap
Slide 5: Recent Vanadium Prices
II RECENT VANADIUM PRICES 2017 2018 2019 $60 + 135% $45 + 71% $ per lb $30 $23/lb - 54% $15 $0
Slide 6: Atmospheric CO2 Accumulation
III ATMOSPHERIC CO2 ACCUMULATION 420 Atmospheric CO2 Level (PPM) 400 380 360 • 2018 CO2 emissions: 37.1 billion MT • An increase of 1.3% over 340 2016 levels 320 Source: U.S. Department of Commerce / National Oceanic & Atmospheric Administration / NOAA Research
Slide 7: Material Science Based Solutions
IV MATERIAL SCIENCE BASED SOLUTIONS Energy Carbon CO2 Population Affluence Intensity Efficiency Emissions (P) (GDP / P) (E / GDP) (CO2 / E) AMG stands for CO2 reduction through energy saving technologies
Slide 8: The AMG Portfolio
V THE AMG PORTFOLIO CO2 Relevance Energy Savings Energy Storage AMG Critical Materials Aluminum Transportation - Graphite Buildings Anodes Silicon - Anodes Vanadium Steel Stationary Batteries Antimony - Batteries Mineração - Lithium Superalloys - Fuel Cells AMG Technologies Titanium Alloys Aero Engi
Slide 9: AMG's Role in CO2 Reduction
VI AMG’S ROLE IN CO2 REDUCTION Enabled CO2 Reduction - 2018 Business Unit Net CO2 Reduction (tons) * Technology / Product Thermal Barrier Coatings & Engineering 43.5 million Turbocharger Wheel Castings Titanium Alloys 5.0 million Titanium Aluminides & Coatings Vanadium 1.2 million Steel Alloying / L
Slide 10: The CO2 Reduction Ratio
VII THE CO2 REDUCTION RATIO Net CO2 Reduction Total Assets CO2 Reduction Business Unit (tons) ($M) Return * Engineering 43.5 million $158 275.3 x Titanium Alloys & Coatings 5.0 million $120 41.6 x Vanadium 1.2 million $177 67.8 x Graphite 1.0 million $94 10.6 x * Measured as ton of CO2 reduction per
Slide 11: Health and Safety
VIII HEALTH AND SAFETY AMG consolidated safety results: 2013 – 2018 3.50 3.30 3.00 2.23 2.50 2.02 2.00 1.68 1.95 1.31 1.50 1.23 1.00 1.19 1.12 1.04 0.50 0.82 0.58 0.00 Lost Time Incident Rate Total Incident Rate
Slide 12: Spodumene I Status
IX SPODUMENE I STATUS Operating Metric Status Feed Rate 90 tons per hour (95% of target) Metallurgical Recovery 90% of target Product Quality ‘in spec’ Production Costs Estimated to be on target
Slide 13: Cambridge, Ohio Recycling Facility
X CAMBRIDGE, OHIO RECYCLING FACILITY
Slide 14: Spent Catalyst Seeking Recycling Solutions
XI SPENT CATALYST SEEKING RECYCLING SOLUTIONS • IMO 2020 legislation – reduction in sulfur limits GLOBAL from 3.5% to 0.5% REGULATION & GOVERNANCE • Increased industry focus on proper management of waste streams • Shift away from export of crude oil and towards in-region refining and upgrading MIDDL
Slide 15: Cambridge II
XII CAMBRIDGE II Double AMG V’s capacity to process spent vanadium-bearing THE PROJECT catalyst, using the existing conversion process as implemented at the Cambridge site, optimized via technological improvements Construction of a roasting and smelting facility in close proximity PROJECT SCOPE to t
Slide 16: AMG / Criterion Joint Venture
XIII AMG / CRITERION JOINT VENTURE + Partnership between two market leaders to develop a sustainable 'cradle-to-grave' solution for catalyst supply and reclamation
Slide 17: AMG Technologies Pro Forma, 2018
XIV AMG TECHNOLOGIES PRO FORMA, 2018 Furnace Systems Own & Operate Heat Treatment ModulTherm ALD Mexico Metallurgy VIDP furnace AMG Titanium – Titanium Aluminides
Slide 18: AMG Technologies: Technology Highlights
AMG TECHNOLOGIES: TECHNOLOGY HIGHLIGHTS Select technology highlights: • Vacuum melting technologies • Titanium Aluminides (world leader) • Thermal barrier coaters (world leader) • Master alloys for titanium alloys • Ceramic matrix composite (CMC) fiber • Master alloys for Ni-based superalloys coater
Slide 19: Sustained Growth in LEAP Engine Platform – Forecast to 2036
SUSTAINED GROWTH IN LEAP ENGINE PLATFORM – FORECAST TO 2036 Boeing and Airbus new aircraft forecast as of October 2018 results in a total demand for LEAP 1A/B engines for single aisle aircraft of approximately 88,000 units Source: 37,740 new airplanes Airbus Global Market Forecast 2017 – 2036 Boeing
Slide 20: AMG Technologies in the LEAP Engine
AMG TECHNOLOGIES IN THE LEAP ENGINE • Remelting Furnaces e.g. for Ti64 • Atomization Furnaces for Plasma Spray Powder, HIP‘ed Compressor and Forged Parts Applications • Master Alloys for Ti Base Alloys • Plasma Melting Systems for Ti Base Alloys • Equipment for CMC Shrouds • EB-PVD Coaters for Therm
Slide 21: Thermal Barrier Coating Revolution
THERMAL BARRIER COATING REVOLUTION Source: Wadley Research Group, University of Virginia, 2013 21
Slide 22: AMG is the Global Leader in TBC Technology
AMG IS THE GLOBAL LEADER IN TBC TECHNOLOGY 23 of the 24 advanced TBC systems in operation globally developed by AMG 22
Slide 23: AMG is the Global Leader in Titanium Aluminides
AMG IS THE GLOBAL LEADER IN TITANIUM ALUMINIDES 23
Slide 24: AMG Technologies Innovations
AMG TECHNOLOGIES INNOVATIONS – Ceramic Matrix Composite (CMC) fiber coater – development of next- generation aerospace coating technology, permitting higher turbine temperatures while achieving significant weight reductions – FastCast – new, proprietary casting technology which significantly improve
Slide 25: FastCast in Operation
FASTCAST IN OPERATION FastCast: Ti-6Al-4V (250 g) EYe =
Slide 26: Long-term Guidance
XV Long-term Guidance: “Given the strong underlying growth dynamics of the AMG portfolio, the management board is committed to deliver an EBITDA of $350M, or more, in five years or less.”
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