Amg Critical Materials N.v. · EURONEXT:AMG

Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (July 2012)

24 slides from Amg Critical Materials's investor presentation, July 2012

  1. Slide 1: Investor Presentation July 2012

    Investor Presentation July 2012

  2. 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

  3. Slide 3: Overview

    Overview Listed: NYSE-Euronext Amsterdam: AMG Founded: 2006 2011 Revenues: $1,351.3M 2011 EBITDA: $110.1M Employees: 3,154 Facilities: Netherlands, Germany, UK, USA, Brazil, France, China, Belgium, Turkey, Poland, India, Sri Lanka, Czech Republic Market cap: €182M ($231M) Shares outstanding: 27.5M 5

  4. Slide 4: Business Units, Products, and End Markets

    Business Units, Products, and End Markets Advanced Materials Engineering Systems Graphit Kropfmühl AMG Mining  67% of Q1 2012 revenue  21% of Q1 2012 revenue  12% of Q1 2012 revenue  Creating new reporting  62% of Q1 2012 EBITDA  14% of Q1 2012 EBITDA  24% of Q1 2012 EBITDA segment in 2012 

  5. Slide 5: Why Invest in AMG

    Why Invest in AMG Revenue EBITDA 2009 – 2011 2009 – 2011 24.8% Advancing 26.2% CAGR productivity CAGR and technology 2011: 2011: $ 1,351.3 million $ 110.1 million + 36% over 2010 + 30% over 2010 Increase Shareholder Value Horizontal Vertical ROCE Consolidation Integration EPS 2009 – 2011 Strong grow

  6. Slide 6: Critical Raw Materials Matrix

    Critical Raw Materials Matrix ■ USA, Germany, UK and EU have each identified critical materials – common factors include supply risks, economic importance and technology demand ■ AMG mines or processes 13 of those critical materials 6

  7. Slide 7: Advanced Materials

    Advanced Materials End Input & Critical Material Key Everyday Sample Markets Raw Materials Science Products Applications Customers  Conversion  Specialty alloys Property for titanium Modification  Coatings for wear resistance A Boeing 787 Aerospace Surface Dreamliner contains  Recycling Coating

  8. Slide 8: Engineering Systems

    Engineering Systems End Input & Critical Material Key Everyday Sample Markets Raw Materials Science Products Applications Customers  Technology  Vacuum Melting Property and Re-melting Modification Systems  Precision Casting All modern turbine Aerospace Surface and Coating engines use titanium Coa

  9. Slide 9: Graphit Kropfmühl

    Graphit Kropfmühl End Input & Critical Material Key Everyday Sample Markets Raw Materials Science Products Applications Customers  Mining  Natural graphite Property for heat insulation Modification materials for building Improving energy Infrastructure  Conversion construction efficiency in build

  10. Slide 10: Financial Highlights

    Financial Highlights 10

  11. Slide 11: Financial Highlights

    Financial Highlights Revenue 2011 Gross Profit LTM: $1,357.3 (in USD millions) LTM: $231.6 (in USD millions) $324.0 $53.4 $368.3 $69.0 $356.4 Up $59.8 $58.7 Down $318.0 $308.6 2% $50.5 11% YoY YoY - - - - - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 EBITDA Adjusted EPS LTM: $105.8 (

  12. Slide 12: Capital Base

    Capital Base Cash and Debt Cash Debt ( in USD millions) ■ Net debt: $206.4 million ■ Debt to capitalization: 0.55x ■ Net Debt to LTM EBITDA: 1.95x ■ Revolver availability: $47.9 million ■ Total liquidity: $129.1 million $287.6 $267.1 $278.5 $274.9 $268.6 ■ AMG’s primary debt facility is a $377 milli

  13. Slide 13: Key Products

    Key Products Revenue Gross Profit ( in USD millions) ( in USD millions) Q1 2012: $324.0 Q1 2012: $53.4 $300 $60 $250 $50 $200 $40 $150 $30 $100 $20 $50 $10 $- $- YTD Q1 2011 YTD Q1 2012 YTD Q1 2011 YTD Q1 2012 Vacuum Furnaces Ti Master Alloys and Coatings Vacuum Furnaces Ti Master Alloys and Coating

  14. Slide 14: End Markets

    End Markets Revenue Gross Profit ( in USD millions) ( in USD millions) Q1 2012: $324.0 Q1 2012: $53.4 Aerospace Aerospace 32.4% 33.5% Infrastructure 14.2% Energy Energy 19.6% Infrastructure 14.3% 17.8% Specialty Metals Specialty Metals & Chemicals & Chemicals 39.1% 29.1% Aerospace + 26% Infrastructu

  15. Slide 15: Advanced Materials

    Advanced Materials Financial Summary ■ Q1 2012 revenue up 3% from Q1 2011 ( in USD millions) $280.0 Revenue EBITDA $235.6 $230.0 $210.8 $226.8 $216.5 $21.0 ■ Titanium master alloys revenue up $198.7 $17.5 83% $180.0 $14.6 $13.7 $16.0 ■ Antimony revenue down 6% $12.3 $130.0 $11.0 ■ FeV revenue down 5

  16. Slide 16: Engineering Systems

    Engineering Systems Financial Summary  Q1 2012 revenue up 5% from Q1 2011 ( in USD millions) $105.0 Revenue EBITDA $20.0 $89.8 $86.3 $85.0  Heat treatment revenue up 128% $72.9 $64.9 $68.0 $15.0  Remelting furnace revenue up 45% $65.0 $11.8  Solar DSS revenue down 88% $9.3 $45.0 $7.7 $10.0  Q1

  17. Slide 17: Graphit Kropfmühl

    Graphit Kropfmühl Financial Summary  Q1 2012 revenue down 7% from Q1 ( in USD millions) $50.0 Revenue EBITDA $42.3 $42.9 $43.3 $45.0 $39.5 2011 $40.0 $37.0 $35.0 $11.0  Natural graphite revenue down 11% $30.0  Silicon metal revenue down 4% $25.0 $7.0 $6.3 $6.2 $6.2 $20.0 $5.2 $15.0 $6.0  Q1 2012

  18. Slide 18: Outlook

    Outlook

  19. Slide 19: Outlook

    Outlook Advanced Materials Engineering Systems Graphit Kropfmühl AMG Mining  Aerospace remains  Heat Treatment  Silicon metal prices  Formed AMG strong Services business locked in for 2012 Mining AG and  Market and pricing providing more stable  Graphite demand is announced squeeze are general

  20. Slide 20: Appendix

    Appendix 20

  21. Slide 21: Consolidated Balance Sheet

    Consolidated Balance Sheet Balance Sheet ($’000) Actual As of 31-Dec-11 31-Mar-12 Fixed assets 263.6 273.8 Goodwill and intangibles 38.1 38.9 Other non-current assets 63.4 65.4 Inventories 228.9 232.5 Receivables 188.1 223.0 Other current assets 39.1 47.1 Cash 79.6 81.2 TOTAL ASSETS 900.8 961.9 TOTA

  22. Slide 22: Consolidated Income Statement

    Consolidated Income Statement Income Statement ($’000) Actual For the three months ended 31-Mar-11 31-Mar-12 Revenue 318.0 324.0 Cost of sales 258.2 270.6 Gross profit 59.8 53.4 Selling, general & admin. 42.9 39.1 Asset impairment & restructuring 0.3 2.8 Environmental 0.1 0.7 Other income (0.9) (0.5

  23. Slide 23: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows Cash Flow Statement ($’000) Actual For the three months ended 31-Mar-11 31-Mar-12 EBITDA 26.2 21.9 +/- Change in operating assets/liabilities (22.1) (19.4) -Interest paid, net (1.2) (3.1) Other operating cash flow (0.3) 0.8 Cash flows from operations before taxes

  24. Slide 24: Slide 24

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