Ferroglobe Plc · NASDAQ:GSM
Ferroglobe — Q1 2017 Earnings Presentation
23 slides from Ferroglobe's earnings presentation, May 22, 2017
Slide 1: Advancing Materials Innovation First Quarter 2017
Advancing Materials Innovation NASDAQ: GSM First Quarter 2017
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 1Q-2017 OverviewSelected Financial Highlights
Slide 4: Q1 Overview
Q1 Overview Pedro Larrea, Chief Executive Officer
Slide 5: First quarter of 2017 confirms expectations
First quarter of 2017 confirms expectations Actions taken delivering results Marketing focusFinancial disciplineProduction allocationSynergies Improving price environment & decisive market leadership (ASP increase vs Q4 2016)Mn alloys +46%Si alloys +10%SiM flat Leveraging diversified product and mar
Slide 6: Update on corporate matters
Source: Company information Antidumping and Countervailing Duties Sale of Spanish Hydro-Electric Assets Internal control Update on corporate matters Favorable first milestones from both the U.S. and Canada cases. Respective government agencies have decided to move forward with their investigations I
Slide 7: Diversified product portfolio maximizes impact of recovery
Diversified product portfolio maximizes impact of recovery Silicon-BasedAlloys30% Mn-Based Alloys21% Other8% Aluminum Silicones Solar Foundry Specialty Steel Steel Qtr / Qtr Revenue Growth by Product Other Source: Company informationEnd market data reflects 2016 sales 2 Business benefits from a dive
Slide 8: Continue to see supportive trends across key end markets
Continue to see supportive trends across key end markets 7 Recent Trends:Crude steel production is up 5.7% in Q1-17 y/yWorld steel capacity utilization reached a two-year high in MarchNorth American crude steel production (+7.1%), while Europe was up (+3.8%) during the quarter Polysilicon / Electron
Slide 9: Revenue level in Q1 2017 remains flat vs previous quarter
Revenue level in Q1 2017 remains flat vs previous quarter Shipments volumes have been affected by “one-off” events, but the recovery in prices has helped maintain revenue levels
Slide 10: Silicon metal snapshot
Silicon metal snapshot Pricing Trends Volume Trends Sequential Quarter Product EBITDA Contribution ($m) Commentary Now-resolved strike at one of the largest customers in U.S. resulting in reduced volumes and a delay in price rebound - expect to gradually recover sales volume in 2Q-17 and benefit fro
Slide 11: Silicon based alloys snapshot
Silicon based alloys snapshot Pricing Trends Volume Trends Commentary Increased steel production and tightening of supply resulted in strong fundamentals for ferrosilicon market.Converted a furnace in Spain from silicon to ferrosilicon during the quarter. Higher power rates in Spain had a negative i
Slide 12: Manganese based alloys snapshot
Manganese based alloys snapshot FeMn EU Index SiMnEU Index Commentary Volatility in manganese ore cost continued, spreads have increased and remain solid into Q2.Deliberate decision to avoid the purchase of high-priced ore in order to maintain margins: negative effect on volumes in Q1.Volume and pri
Slide 13: Significant margin improvement has enhanced operating results
Significant margin improvement has enhanced operating results Ferroglobe Actions Leading to Results Commercial strategy has captured the recovery of the market and should yield additional results in coming quartersFinancial discipline has focused the organization on productivity and cash managementR
Slide 14: EBITDA of $26.6 million for the quarter
EBITDA of $26.6 million for the quarter1: +257% vs adjusted EBITDA of $7.5 million in Q4 2016 Including non-core Energy division, EBITDA would have reached $30.9 million, +368% compared with $6.6 million in 4Q 2016Continued to reduce working capital. Improvement of $18 million in the quarter; total
Slide 15: Selected Financial Highlights
Selected Financial Highlights Joe Ragan, Chief Financial Officer
Slide 16: 1Q-17 key performance indicators and overview
1Q-17 key performance indicators and overview 1 Free cash flow defined as “Net cash provided by operating activities” minus “Payments for property, plant and equipment.”Source: Company information Key performance indicators Q1 2017 Q4 2016 FY 2016 Sales ($m) 388.2 386.8 1,555.7 Operating Profit ($m)
Slide 17: Balance sheet summary
Balance sheet summary ($mm) Q1 20171 12/31/2016 Total Assets 2,012 2,019 Net Debt2 407 405 Book Equity 903 892 Net Debt2 / Total Assets 20% 20% Net Debt2 / Capital3 31% 31% Financial results are unauditedNet Debt includes finance lease obligationsCapital is calculated as book equity plus net debt No
Slide 18: Debt evolution ($m)
Debt evolution ($m) Quarterly debt evolution
Slide 19: Working capital evolution ($m)
Working capital evolution ($m)
Slide 20: Liquidity
Liquidity $100m represents minimum cash required to operate given cash trapped in certain locations
Slide 21: Concluding Remarks
Concluding Remarks Supportive market environment: past inflection Business well-positioned: cost structure and commercial strategy Positive outlook for remainder of 2017
Slide 22: Q&A
Q&A ») Ferroglobe
Slide 23: Advancing Materials Innovation First Quarter 2017
Advancing Materials Innovation NASDAQ: GSM First Quarter 2017