Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Shareholder Meeting (2018)
22 slides from Amg Critical Materials's shareholder meeting presentation, 2018
Slide 1: AMG 2018 Annual General Meeting CEO Update
AMG ADVANCED METALLURGICAL GROUP N.V. 2018 ANNUAL GENERAL MEETING CEO UPDATE 1
Slide 2: Cautionary Note
CAUTIONARY NOTE THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION 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 PURPOSE
Slide 3: 2017 & Q1 2018 Results
I 2 0 1 7 & Q 1 2 0 1 8 R E S U LT S 2017 2016 % CHANGE Q1 2018 Q1 2017 % CHANGE Gross Profit $214.6 $186.8 15% $70.1 $52.5 34% ($M) EBITDA $125.5 $100.7 25% $44.5 $33.0 35% ($M) Operating Cash Flow $78.5 $56.2 40% $24.8 $17.8 39% (M$) ROCE 21.2% 18.8% 240 bps 28.4% 25.5% 290 bps Diluted Earnings $1
Slide 4: Aerospace: Driving Growth in the Core Business
II A E R O S PA C E : D R I V I N G G R O W T H I N T H E C O R E B U S I N E S S Development of Order Backlog Forecasted Production Levels of Commercial Aircraft Number of aircraft produced OB Airbus in thousand Aircrafts OB Boeing in bn USD Underlying fundamentals point to continued growth in this
Slide 5: 2017 & Q1 2018 Results
III 2 0 1 7 & Q 1 2 0 1 8 R E S U LT S 2017 2016 % CHANGE Q1 2018 Q1 2017 % CHANGE Gross Profit $214.6 $186.8 15% $70.1 $52.5 34% ($M) EBITDA $125.5 $100.7 25% $44.5 $33.0 35% ($M) Operating Cash Flow $78.5 $56.2 40% $24.8 $17.8 39% (M$) ROCE 21.2% 18.8% 240 bps 28.4% 25.5% 290 bps Diluted Earnings
Slide 6: Euronext Award Ceremony
IV EURONEXT AWARD CEREMONY AMG: Winner of the Euronext’s 2017 ‘All Round Best Performer ’ Award
Slide 7: Euronext Opening Gong Celebration
V EURONEXT OPENING GONG C E L E B R AT I O N
Slide 8: Critical Materials Prices: 10-Year Perspective
VI C R I T I C A L M AT E R I A L S P R I C E S : 1 0 Y E A R P E R S P E C T I V E Mar 2018 Position Mar 2017 Position • Metal prices are measured on a scale of 0 to 10, with 10 Highest 0 and 10 representing the Price in minimum and maximum 10 years 8.7 8.6 average quarterly prices 7.7 occurring du
Slide 9: Refinancing
VII REFINANCING COMPREHENSIVE $650M DEBT FACILITY LEAD ARRANGERS CO-MANAGERS $350M 7-year senior secured term-loan B $200M 5-year revolving credit facility $100M 5-year letter of credit The new credit facility secures attractive pricing, while e n h a n c i n g l i q u i d i t y, i m p r o v i n g f
Slide 10: Lithium & Tantalum Buildout – May 2018 Status
VIII L I T H I U M & TA N TA L U M B U I L D O U T – M AY 2 0 1 8 S TAT U S 2017 2018 2019 2020 2021 Tantalum PRODUCTION EXPANDED PRODUCTION CAPEX SPEND Spodumene SP I CAPEX SPEND PRODUCTION SP II CAPEX SPEND PRODUCTION Structured, sequenced approach to maximizing the value of our Mibra mine asset
Slide 11: Our People in Brazil
OUR PEOPLE IN BRAZIL Parabens A MINERAGAO!
Slide 12: Brazil Management Structure
X BRAZIL MANAGEMENT STRUCTURE NETHERLANDS AMG Advanced Metallurgical Group N.V. AMG Mineração B.V. BRAZIL AMG Mineração S.A. Tantalum Concentrate Niobium Oxides Lithium Concentrate Lithium Carbonate
Slide 13: Lithium & Tantalum: 10-Year Price Trend
XI L I T H I U M & TA N TA L U M : 1 0 - Y E A R P R I C E T R E N D $25,000 $140.00 $120.00 Tantalum Concentrate ($ per lb) $20,000 Lithium Carbonate ($ per MT) Tantalum $100.00 Concentrate $15,000 $80.00 $60.00 $10,000 Lithium Carbonate $40.00 $5,000 $20.00 $0 $0.00 1. Prices are shown as monthly
Slide 14: AMG Vanadium Cambridge Expansion
XII AMG VANADIUM CAMBRIDGE EXPANSION This expansion will solidify our existing market position a n d e n a b l e A M G Va n a d i u m to better meet our customers' future requirements
Slide 15: AMG Vanadium: Going Global
XIII A M G VA N A D I U M : G O I N G G L O B A L + Partnership between two market leaders to develop a sustainable 'cradle-to-grave' solution for catalyst supply and reclamation
Slide 16: Ferrovanadium: 5-Year Price Trend
XIV F E R R O VA N A D I U M : 5 - Y E A R P R I C E T R E N D $35 $30 Ferrovanadium ($ per lb) $25 $20 Ferrovanadium $15 $10 $5 $0 1. Prices are shown as monthly averages taken over the period 1 Jan 2013 through 31 Mar 2018, with each horizontal axis label representative of that year’s January mont
Slide 17: Vanadium Demand: Chinese Rebar
XV VA N A D I U M D E M A N D : C H I N E S E R E B A R 50,000 350 45,000 300 V Consumption in China Rebar (MT-V) HS Rebars Production (Million Tons) 40,000 New standard enacted 250 35,000 30,000 200 25,000 150 20,000 15,000 100 10,000 50 5,000 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 18: Vanadium: Market Dynamics
XVI VA N A D I U M : M A R K E T D Y N A M I C S Vanadium Production/Consumption Price Cumulative Vanadium Inventory Change vs FeV Price Metric Tons V per year 9.0 $80.00 Cumulative Inventory Change (Months of Consumption) 150,000 8.0 $70.00 Cumulative Inventory Change 130,000 7.0 $60.00 V2O5 Price
Slide 19: Health and Safety: Sustained Improvement
XVII H E A LT H A N D S A F E T Y: S U S TA I N E D I M P R O V E M E N T LOST TIME INCIDENT RATE TOTAL INCIDENT RATE 2013 1.95 3.30 2014 1.19 2.23 2015 1.12 2.02 2016 1.04 1.68 2017 0.82 1.31
Slide 20: Mission Statement, Strategic Objective and Paths to Growth
XVIII MISSION STATEMENT To increase long term value through industry leadership, operational expertise and efficient deployment of capital STRATEGIC OBJECTIVE Identifying long term trends and leveraging those trends through technological excellence and innovations in the indispensable areas of criti
Slide 21: Long-term Guidance
XIX Long-term Guidance: "We believe we can achieve our goals earlier than previously expected and can commit to turning the present EBITDA level into $200 million, or more, in the fiscal year ending December 31, 2 0 2 0 , o r e a r l i e r. ”
Slide 22: 2018 Guidance
XX 2018 Guidance: “Given the current metal price environment, and as demonstrated in the first quarter of 2018, AMG expects full year 2018 EBITDA to improve considerably compared to t h e p r i o r y e a r. ”
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