Amg Critical Materials N.v. · EURONEXT:AMG

Amg Critical Materials — AMG Advanced Metallurgical Group — Q2 2010 Earnings Presentation

25 slides from Amg Critical Materials's earnings presentation, 2010

  1. Slide 1: Investor Presentation 2nd Quarter 2010

    Investor Presentation 2nd Quarter 2010 AMG Advanced Metallurgical Group N.V.

  2. Slide 2: Disclaimer

    Disclaimer 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. FAI

  3. Slide 3: Introduction

    Introduction  Listed on NYSE-Euronext Amsterdam (Euronext: AMG)  Products  High purity metals and complex metal products  Vacuum furnaces used to produce high purity metals  2010 Q1 2010 March 31  Revenues - $235.8 million  EBITDA - $22.0 million  Net debt - $104.1 million  Capital Investme

  4. Slide 4: Financial Highlights - First Quarter 2010

    Financial Highlights - First Quarter 2010 ■ Revenue: $235.8 million ■ EBITDA: $22.0 million, 9.3% EBITDA margin ■ Increases in Advanced Materials sales prices ■ Advanced Materials profitability improved substantially in Q4 ■ Engineering Systems order intake remained low ■ EPS, excluding Timminco and

  5. Slide 5: Macroeconomic Trends and Markets

    Macroeconomic Trends and Markets ■ AMG participates in the macro economic trend of: ■ Growing demand for natural resources in context of the need for sustainable environmental demands including: ■ CO2 reduction ■ Emerging market infrastructure ■ Aerospace and light weight materials ■ Specialty metal

  6. Slide 6: Products & End Markets

    Products & End Markets Advanced Materials Vacuum Furnaces  High-value alloys  Capital equipment for high purity  Essential raw materials materials Specialty Metals & Energy Chemicals Infrastructure Aerospace AMG ADVANCED METALLURGICAL GROUP N.V. 6

  7. Slide 7: End Markets

    End Markets AMG Advanced Metallurgical Group N.V. Specialty Metals & Aerospace Infrastructure Energy Chemicals Titanium Alloys Structural Steel Solar Vacuum Furnaces Silicones Superalloys Specialty Steel Superalloys Paints & Pigments Turbine Coatings Building Materials Solar - Silicon Metal Glass, T

  8. Slide 8: End Products

    End Products Aerospace Infrastructure – Recycling Ti alloys (includes VAl) Superalloys High purity stainless steel Typical aerospace jet engine Energy – Solar & Nuclear Specialty Metals & Chemicals Stackable Graphite Blocks Tantalum based capacitor Paints and pigments Vacuum furnaces for solar ingot

  9. Slide 9: Markets & Products

    Markets & Products Q1 2010 Revenue by End Q1 2010 Revenue by Market Product FeV & FeNiMo Chromium 5% Metal 8% Antimony 10% Tantalum & Aerospace 26% Niobium Si metal 3% 11% Graphite 4% Energy - Solar & Nuclear 26% Infrastructure - Al Master Recycling 14% Alloys 14% Vacuum Furnaces Specialty 28% Metal

  10. Slide 10: Global Operations

    Global Operations AMG Advanced Metallurgical Group N.V. (Netherlands) 79.5(2) 42.5%(1) Advanced Materials Division Engineering Systems Division Graphit Kropfmühl Timminco Germany US UK Brazil France Germany US/Mexico Germany Canada  Specialty alloys  Ferrovanadium  Aluminium  Tantalum oxide  An

  11. Slide 11: Financial Highlights - by Business Unit

    Financial Highlights - by Business Unit In USD millions 2010 Q1 Revenues 2010 Q1 EBITDA $1.5 $30.0 $30.0 $8.5 $65 $65.3.3 $12.0 $140.5 $140.5 Advanced AdvancedMaterials Materials Engineering EngineeringSystems Systems GK GK Advanced Materials Engineering Systems GK 2010 Q1 Free Cash Flow ($2.5) $ in

  12. Slide 12: Financial Highlights

    Financial Highlights Revenue Highlights ($ in millions)  Q1 Revenue: $235.8 million  Up 9% from Q1 2009  Q1 EBITDA: $22.0 million $231.4 $235.8  Up 39% from Q1 2009 $215.7 $214.9 $205.4  Balance sheet highlights at Mar 31, 2010  Cash: $98.9 million Q1 09 Q2 09 Q3 09 Q4 09 Q1 10  Debt: $203.0

  13. Slide 13: 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

  14. Slide 14: Infrastructure - Pricing

    Infrastructure - Pricing Significant price trends – 10 years $60 $250 $50 Price / Pound – V, Mo, Ni $200 $40 $150 $30 $100 $20 $10 $50 $0 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ferro Vanadium Molybdenum Nickel Prices are still below pre-crisis levels AMG ADVANCED METALLURGICA

  15. Slide 15: Advanced Materials

    Advanced Materials Financial Summary Highlights ( in millions) Revenue EBITDA ■ Infrastructure - ferrovanadium ■ Reference prices increased 18% v. Q1 „09 $140.5 ■ Volumes declined 12% v. Q1 ‟09 $124.3 ■ Aerospace – master alloys volumes declined $110.1 51% compared to Q4 2009 $95.9 $96.5 ■ Year over

  16. Slide 16: 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 (DSS furnaces)  Precision Casting and Coating Systems  Heat Treatment with

  17. Slide 17: Engineering Systems

    Engineering Systems Financial Summary Highlights  Revenue: $65.3 million, 30% decrease QoQ ( in millions) Revenue EBITDA  Solar silicon DSS furnace revenues $96.2 $91.2 decreased 47% in Q1 „10 v. Q1 „09  EBITDA: $12 million $73.8 $65.3  Backlog declined from $162 million at $61.6 December 31 200

  18. Slide 18: Graphit Kropfmühl

    Graphit Kropfmühl Financial Summary Highlights ( in millions) Revenue EBITDA  Revenue: $29.9 million; 27% increase QoQ $33.7  increases in natural graphite revenue $33.3 $29.9 $27.3  EBITDA: $1.5 million $23.6  Improved from Q1 „09 due to cost containment measures in graphite and increased reven

  19. Slide 19: Capital Base

    Capital Base Cash and Debt Highlights – March 31 2010 ( in millions) ■ Cash: $98.9 million Cash Debt ■ Total debt: $203.0 million $202.3 $203.8 $203.0 $193.9 ■ Net debt: $104.1 million $180.3 ■ Revolver availability: $92.0 million ■ Total liquidity $190.9 million $117.5 $124.4 $117.0 $108.8 $98.9 Q1

  20. Slide 20: Outlook

    Outlook ■ Advanced Materials ■ Prices have rebounded from historic lows and demand is beginning to improve; 2010 revenues and EBITDA will improve significantly ■ Engineering Systems ■ Order intake continues to be sluggish; ■ Lower order backlog will result in lower 2010 revenues and EBITDA ■ Graphit

  21. Slide 21: Appendix

    Appendix AMG ADVANCED METALLURGICAL GROUP N.V. 21

  22. Slide 22: Consolidated Balance Sheet

    Consolidated Balance Sheet $ in thousands December 31, 2009 March 31, 2010 Fixed Assets 211,022 204,977 Goodwill and Intangibles 28,253 26,351 Other Non-current Assets 78,209 67,526 Inventories 193,378 180,630 Receivables 147,787 175,078 Other Current Assets 35,313 37,182 Cash 117,016 98,857 TOTAL A

  23. Slide 23: Consolidated Income Statement

    Consolidated Income Statement $ in thousands Q1 2009 Q1 2010 Revenue 215,719 235,793 Cost of sales 181,859 193,209 Gross profit 33,860 42,584 Selling, general and admin. 29,039 30,614 Asset impairment and restructuring 198 7 Environmental 5 257 Other income (1,691) (81) Operating profit 6,309 11,787

  24. Slide 24: Consolidated Cash Flows

    Consolidated Cash Flows $ in thousands Q1 2009 Q1 2010 Cash Flows from Operations (1,062) (14,921) Capital Expenditures (11,967) (5,146) Other Investing Activities (25,982) (791) Cash Flows from Investing Activities (37,949) (5,937) Cash Flows from Financing Activities 24,437 7,643 Net increase (dec

  25. Slide 25: AMG Advanced Metallurgical Group N.V.

    AMG Advanced Metallurgical Group N.V.

AMG Advanced Metallurgical Group — Q2 2010 Earnings Presentation on 6ix