Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (November 2013)
27 slides from Amg Critical Materials's investor presentation, November 2013
Slide 1: Investor Presentation November 2013
Investor Presentation November 2013
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: Overview
Overview Listed: NYSE-Euronext Amsterdam: AMG Founded: 2006 LTM Revenues: $1,149.6M LTM EBITDA: $81.6M Employees: 3,145 Facilities: Netherlands, Germany, France, Czech Republic, Poland, UK, USA, Brazil, Mexico, China, India, Sri Lanka, Turkey, Zimbabwe, Mozambique Market Cap: €243M ($305M) Enterpris
Slide 4: Business Units, Products and Markets
Business Units, Products and Markets AMG Processing AMG Mining AMG Engineering AMG’s conversion and Integrated AMG’s mine AMG’s vacuum systems and recycling based businesses based businesses services business High-value metals & alloys Critical raw materials Capital equipment & service
Slide 5: Critical Raw Materials
Critical Raw Materials The EU identified 14 critical raw materials* to the European economy – focusing on two determinants – economic importance and supply risk Materials mined or processed by AMG, or treated in AMG vacuum REE systems Materials treated by AMG vacuum systems Nb Sb C Ta Cr Li V Mo S
Slide 6: Business Units – AMG Processing
Business Units – AMG Processing AMG Processing – conversion and recycling operations Value Proposition Key Products Major Applications Aluminum grain refiners and master alloys for high performance materials in aerospace, automotive and infrastructure applications Ferrovanadium for high strength
Slide 7: Business Units – AMG Mining
Business Units – AMG Mining AMG Mining – mine based value chains Value Proposition Key Products Major Applications Antimony trioxide and master batches for flame retardant on electronics, paints, and plastics Conflict-free tantalum concentrate for tantalum capacitors used on portable electronics
Slide 8: Business Units – AMG Engineering
Business Units – AMG Engineering AMG Engineering – vacuum systems and services Value Proposition Key Products Major Applications Vacuum melting and re- melting furnaces for high- performance titanium, steel and alloys, and purification of rare metals and alloys Vacuum heat treatment furnaces and
Slide 9: Recent Developments – Operations Update
Recent Developments – Operations Update AMG is improving operational performance and cash flow 2013 Objectives Progress Update Reduce SG&A ■ YTD Q3‘13 SG&A reduced by 7.9%, or $8.8M, compared to YTD by 5% Q3’12, in excess of the 2013 target ■ YTD Q3’13 Gross Margin 15.6%, down 0.8% compared to YTD I
Slide 10: Recent Developments – Operations Update
Recent Developments – Operations Update AMG Processing ■ AMG Aluminum ■ Improved product mixed and reduced costs, resulting improved margins ■ AMG Superalloys and AMG Titanium Alloys & Coatings ■ Implementing fixed cost reduction programs ■ AMG Vanadium ■ Expansion ramp up on schedule, increasing vo
Slide 11: Financial Highlights
Financial Highlights 11
Slide 12: Financial Highlights
Financial Highlights Revenue Gross Profit LTM: $1,149.6 (in USD millions) LTM: $178.1 (in USD millions) $286.4 $39.8 $296.9 $296.5 $291.5 Down $47.7 $48.3 $48.6 $275.2 4% $41.4 Down YoY 16% YoY - - - - - Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 EBITDA Adjusted EPS LTM: $81.6 (in U
Slide 13: Capital Base
Capital Base Cash and Debt ■ Net debt: $163.6M ( in USD millions) Cash Debt $315.8 ■ A reduction of $16.4 million in Q3’13 Net Debt $268.6 $279.9 ■ Debt to capitalization: 0.67x $237.1 ■ Net Debt to LTM EBITDA: 2.01x ■ Revolver availability: $73.7M $189.0 $194.2 ■ Total liquidity: $190.0M $163.6 $14
Slide 14: Financial Highlights
Financial Highlights Revenue Gross Margin YTD September 2013 Revenue: $874.4 (in USD millions) YTD September 2013 Gross Margin: 15.6% 24.6% AMG Engineering $193.2 15.7% 11.6% AMG Mining $245.5 AMG Processing $435.7 AMG Processing AMG Mining AMG Engineering EBITDA Capital Expenditure YTD September 20
Slide 15: Key Products
Key Products Revenue Gross Profit ( in USD millions) ( in USD millions) YTD September 2013: $874.4 YTD September 2013: $136.7 15
Slide 16: End Markets
End Markets Revenue Gross Profit ( in USD millions) ( in USD millions) YTD September 2013: $874.4 YTD September 2013: $136.7 Aerospace Aerospace 40.7% 45.4% Energy Energy Infrastructure 17.2% 18.1% 12.2% Infrastructure 9.8% Specialty Metals Specialty Metals & Chemicals & Chemicals 29.0% 27.6 Aerospa
Slide 17: AMG Processing
AMG Processing Financial Summary ■ Q3’13 revenue down 6% from Q3’12 $180.0 Revenue ■ AMG Aluminium up 2% EBITDA ( in USD millions) $160.0 $146.9 $138.1 ■ Significant price declines in vanadium $140.0 $16.0 and titanium alloy products $120.0 ■ AMG Vanadium down 28% $100.0 $11.0 $9.1 $80.0 ■ Q3’13 gro
Slide 18: AMG Mining
AMG Mining Financial Summary Q3’13 revenue up 4% from Q3’12 $100.0 Revenue EBITDA ( in USD millions) Volumes increased for most products $90.0 $82.3 $80.0 $78.8 Prices were mixed – Tantalum up 12%, $70.0 $11.0 Graphite up 5%, Antimony down 11%, $60.0 $8.9 and Silicon metal down 9% $50.0 $40.0
Slide 19: AMG Engineering
AMG Engineering Financial Summary Q3’13 revenue down 7% from Q3’12 $8.0 Revenue EBITDA ( in USD millions) $80.0 Nuclear furnaces up 55% $71.2 $70.0 $66.1 Turbine blade coating furnaces up $60.0 843% $50.0 $5.8 Sintering furnaces down 51% $40.0 Remelting furnaces down 32% $30.0 $4.2 Q3’13
Slide 20: Outlook
Outlook
Slide 21: Outlook
Outlook AMG Processing AMG Mining AMG Engineering Continued significant Improved margins through Order Intake is expected to declines in metal prices are cost reductions improve in Q4 impacting revenues and Natural graphite volume is Continued investment in new profitability expected to be
Slide 22: Appendix
Appendix 22
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet ($’000) Actual As of 31-December-12* 30-September-13 (restated) Fixed assets 288,269 258,211 Goodwill and intangibles 38,722 36,539 Other non-current assets 77,710 78,178 Inventories 211,531 185,569 Receivables 177,232 161,310 Other current assets 33,667 36,4
Slide 24: Consolidated Income Statement
Consolidated Income Statement Income Statement ($’000) Actual For the three months ended 30-September-12* 30-September-13 (restated) Revenue 296,851 286,415 Cost of sales 249,314 246,623 Gross profit 47,537 39,792 Selling, general & admin. 34,411 32,343 Asset impairment & restructuring 476 1,753 Env
Slide 25: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Cash Flow Statement ($’000) Actual For the nine months ended 30-September-12* 30-September-13 (restated) EBITDA 64,286 62,084 +/- Change in operating assets/liabilities (10,773) 27,369 -Interest paid, net (10,030) (11,331) Other operating cash flow 1,644 (9,260)
Slide 26: AMG Global Locations
AMG Global Locations area enlarged above Offices 26
Slide 27: Slide 27
AMG Advanced Metallurgical Group — Investor Presentation (November 2013) on 6ix