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Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (March 2011)
28 slides from Amg Critical Materials's investor presentation, March 2011
Slide 1: Investor Presentation March 2011
Investor Presentation March 2011
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: AMG Advanced Metallurgical Group N.V.
AMG Advanced Metallurgical Group N.V. Listed: NYSE-Euronext Amsterdam: AMG Founded: 2006 Revenues: $990.5M Full Year 2010 Employees: 2,600 Facilities: Netherlands, Germany, UK, USA, Brazil, France, Turkey, Canada, Czech Republic, China, Mexico, Belgium, Poland, India, Sri Lanka Market cap: €345.2M S
Slide 4: Strategic Focus
Strategic Focus ■ Serve growing end markets with high value-added specialty metal products and engineering solutions, related to CO2 reduction and conservation of natural resources ■ Execute through a combination of: ■ Vertical integration ■ Industry consolidation ■ Continuous investment in producti
Slide 5: Products & Markets
Products & Markets Advanced Materials Engineering Systems High-value alloys Capital equipment for high purity Essential raw materials materials Specialty Metals & Energy Aerospace Infrastructure Chemicals 5
Slide 6: Critical Raw Materials
Critical Raw Materials The EU identified 14 critical raw materials(1) to the European economy – focusing on two determinants – economic importance and supply risk AMG currently has raw material sources for 4 of those elements “Critical” raw materials (1) European Commission Annex V to the Report
Slide 7: Critical Raw Materials – AMG's activities
Critical Raw Materials – AMG’s activities 1 AMG manufactures products with these elements 2 H AMG has development projects with these elements He Hydrogen Helium 1.0 4.0 4 5 6 7 8 9 10 3 Li Be B C N O F Ne Beryllium Boron Carbon Nitrogen Oxygen Fluorine Neon Lithium 9.0 10.8 12.0 14.0 16.0 19.0 20.2
Slide 8: Critical Raw Materials
Critical Raw Materials Primary producers of selected critical raw materials Titanium Vanadium Chromium Magnesium Chromium Titanium Antimony Graphite Antimony Magnesium Lithium Magnesium Silicon Titanium Titanium Magnesium Vanadium Graphite Graphite Tantalum Tantalum Niobium Tantalum Lithium Chromi
Slide 9: Recent Developments
Recent Developments ■ Acquired aluminum master alloy producer KB Alloys, LLC for $23.5 million ■ Signed agreements to supply tantalum concentrate production through the end of 2012 ■ Acquired intellectual property and manufacturing assets related to the “Mono2™” suite of solar casting technologies ■
Slide 10: Advanced Materials - Market, Products and Customers
Advanced Materials - Market, Products and Customers Aerospace Infrastructure - FeV Specialty Metals Products Specialty alloys for titanium Ferro-vanadium Chromium Metals Coatings for wear Ferro-nickel molybdenum Tantalum resistance Antimony Aluminium master alloys Competitors Readi
Slide 11: Advanced Materials - Specialty metals pricing
Advanced Materials - Specialty metals pricing $45 Increase from 2009 lows: $40 FeV: 67% Mo: 123% Ni: 173% $35 Price / Pound – V, Mo, Ni $30 $25 $20 $15 $10 AMG IPO $5 $0 2007 2008 2009 2010 2011 Ferro Vanadium Molybdenum Nickel Prices are still below pre-crisis levels; 11 correlated to demand for No
Slide 12: Engineering Systems – Market, Products and Customers
Engineering Systems – Market, Products and Customers Energy - Solar Aerospace Energy - Nuclear Solar silicon melting and Vacuum Melting and Re- Vacuum Sintering Products crystallisation systems- melting Systems Systems for nuclear fuel DSS furnaces Precision Casting and Development project
Slide 13: Graphit Kropfmühl – Market, Products and Customers
Graphit Kropfmühl – Market, Products and Customers Energy - Solar Specialty Metals & Chemicals Products Silicon metal for Natural graphite for polycrystalline for solar insulation, transportation cells and industrial uses Silicon metal for aluminium and silicones Competitors Bluestar Silicon
Slide 14: Financial Overview
Financial Overview 14
Slide 15: End Markets – by the Numbers
End Markets – by the Numbers 2010 Revenue by End 2010 Gross Margin by Market End Market Aerospace 26% Aerospace 30% Infrastructure - Energy - Solar Energy - Solar Recycling 16% & Nuclear 26% & Nuclear 21% Infrastructure - Recycling 19% Specialty Specialty Metals & Metals & Chemicals 36% Chemicals 24
Slide 16: Revenue by Geography
Revenue by Geography 2010 Revenue 2010 Revenue AMG AMD 2010 Revenue ESD 2010 Revenue GK 16 AMG generated less than 3% of 2010 revenue from Japan
Slide 17: Financial Highlights 2010
Financial Highlights 2010 2010 Revenue $990.5 2010 Gross Profit $178.6 17 in millions
Slide 18: Financial Highlights
Financial Highlights Revenue (in millions) Highlights Q4 Revenue: $270.7 million Up 17% from Q4 2009 $270.7 Q4 EBITDA: $20.2 million $231.4 $235.8 $243.5 $240.4 Up 62% from Q4 2009 Q4 EPS: $0.10 (1) Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Up from $0.03 in Q4 2009 (1) EBITDA YTD Revenue: $990.5 m
Slide 19: Advanced Materials
Advanced Materials Financial Summary Highlights ( in millions) Revenue EBITDA ■ Infrastructure - ferrovanadium ■ Reference prices increased 21% v. Q4 $152.0 $168.9 2009 $154.9 ■ Volumes improved 30% v. Q4 2009 $140.5 ■ Ferronickel-molybdenum demand $95.9 increased 51% v. Q4 2009 ■ Aerospace – master
Slide 20: Engineering Systems
Engineering Systems Financial Summary Highlights Q4 revenue decreased 8% v. Q4 2009 ( in millions) Revenue EBITDA $73.8 Solar silicon DSS furnace revenues $65.3 $67.7 decreased 44% in Q4 2010 v. Q4 2009 $59.5 $53.2 Q4 EBITDA increased 69% v. Q4 2009 December 31, 2010 Backlog improved to $183
Slide 21: Graphit Kropfmühl
Graphit Kropfmühl Financial Summary Highlights ( in millions) Revenue EBITDA Q4 revenue increased 3% v. Q4 2009 $34.2 $33.3 $32.4 Decrease in silicon metal revenues due to $32.1 $29.9 lower contract prices Silicon metal down 3% Natural graphite up 16% Q4 EBITDA increased 105% v. Q4 2009
Slide 22: Capital Base
Capital Base Cash and Debt – December 31, 2010 Summary ( in millions) ■ Cash: $89.3 million Cash Debt $234.8 $237.1 ■ Total debt: $237.1 million $203.8 $203.0 $204.3 ■ Net debt: $147.8 million ■ Revolver availability: $47.8 million ■ Total liquidity $137.1 million $117.0 $98.9 $89.3 $90.2 $84.6 Q4 0
Slide 23: Outlook
Outlook ■ Advanced Materials ■ Rising prices and demand for many products ■ Revenue and earnings growth driven by antimony, tantalum and aluminum alloys ■ Engineering Systems ■ Backlog is increasing; renewed interest in solar silicon furnaces ■ Order intake driven by titanium, solar and specialty st
Slide 24: Appendix
Appendix 24
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet December 31, 2010 December 31, 2009 Fixed Assets 228,612 211,022 Goodwill and Intangibles 27,002 28,253 Other Non-current Assets 80,714 78,209 Inventories 207,204 193,378 Receivables 175,421 147,787 Other Current Assets 46,811 35,313 Cash 89,311 117,016 TOTAL ASSETS 855,07
Slide 26: Consolidated Income Statement
Consolidated Income Statement Q4 2010 Q4 2009 Revenue 270,731 231,388 Cost of sales 221,349 185,034 Gross profit 49,382 46,354 Selling, general and admin. 36,765 42,605 Asset impairment and restructuring 1,019 3,805 Environmental 5,658 (164) Other income (383) (1,732) Operating profit 6,323 1,840 Ne
Slide 27: Consolidated Cash Flows
Consolidated Cash Flows Twelve months ended Twelve months ended December 31, 2010 December 31, 2009 Cash Flows from Operations (1,623) (2,091) Capital Expenditures (32,973) (25,532) Other Investing Activities (29,599) (64,649) Cash Flows from Investing Activities (62,572) (90,181) Cash Flows from Fi
Slide 28: Slide 28
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