Slide 1: Advancing Materials Innovation: First Quarter 2023 Results
Advancing Materials Innovation NASDAQ: GSM First Quarter 2023 Results May 10th, 2023
Slide 2: Forward-Looking Statements and non-IFRS Financial Metrics
Forward-Looking Statements and non-IFRS Financial Metrics 2 This presentation contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looki
Slide 3: Q1 Business Review
Q1 Business Review
Slide 4: Opening Remarks: Business and Financial Highlights
OPENING REMARKS 4 BUSINESS HIGHLIGHTS $401 million SALES 11% Q/Q decrease $45 million ADJ. EBITDA 66% Q/Q decrease 11% ADJ. EBITDA MARGIN 18% decrease Q/Q $25 million NET INCOME $0.11 EPS 267% increase Q/Q $55 million NET DEBT 57% decrease Q/Q Q1 FINANCIAL HIGHLIGHTS $344 million CASH EQUIVALENTS 7%
Slide 5: Silicon Metal Product Category Snapshot
1,500 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 11,500 US CRU spot - import EU CRU spot (5.5.3) • Silicon metal generated $31 million adjusted EBITDA by proactively managing assets in a challenging market • Volumes down 6.4%, due to shutdown in France as a result of our French energy ag
Slide 6: Product Category Snapshot: Silicon-Based Alloys
• Silicon-based alloys generated $22 million adjusted EBITDA driven by higher volumes • Weak demand in standard grades offset by strong specialty grades and foundry sales as a result of our strong leadership position • Volumes increased by 23.2% Q/Q as a result of steel manufacturers restarting capa
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 68,323 76,454 97,053 75,082 97,007 61,583 61,917 46,867 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 800 1,300 1,800 2,300 High-carbon ferromanganese EU CRU spot Silico-manganese EU CRU spot • Manganese-based alloys generated $2 million adjusted
Slide 8: Q1 Financial Review
Q1 Financial Review
Slide 9: Income Statement Summary Q1-23 vs. Q4-22
INCOME STATEMENT SUMMARY Q1-23 VS. Q4-22 9 • Solid adjusted EBITDA margins relative to historical levels, in-line with our expectations for 2023 • Other operating income declined in Q1 vs. Q4-22 due to lower income from energy compensation in France • Lower production in France is driving a reductio
Slide 10: Adjusted EBITDA Bridge Q1-23 vs. Q4-22
ADJUSTED EBITDA BRIDGE Q1-23 VS. Q4-22 ($m) 10 • Average selling prices across core products decreased (4.5)% – Silicon Metal (6.5)%, Silicon-based alloys (13.4)% and Mn-based alloys (10.2)% • Volume across core products decreased (5.8)% – Silicon Metal (6.4)%, Si-based alloys 23.2% and Mn-based all
Slide 11: Cash and Debt Evolution
518 500 431 450 400 342 194 194 127 55 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Gross Debt Net Debt 176 307 237 323 344 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Cash trends ($m) Adjusted gross and net debt ($m) CASH AND DEBT EVOLUTION 11 • Aiming a positive net cash position in the next couple of quarters • Net debt redu
Slide 12: Cash Flow Summary
CASH FLOW SUMMARY 12 (1) Free cash flow is calculated as operating cash flow plus investing cash flow (2) EBITDA excludes the PPA Fair Value ($’000) Q1-23 Q4-22 Q1-22 EBITDA 39,251 (2) 50,243 232,239 Non-cash items (37,984) 20,815 2,204 Changes in Working Capital 131,125 55,954 (155,305) CO2 and Oth
Slide 13: Corporate Update
Corporate Updateb
Slide 14: General: Power Agreements, Quartz Capacity, Strategy Execution
GENERAL CORPORATE UPDATE 14 Ferroglobe is in the final stages of completing new long-term power agreements in Spain utilizing 100% renewable energy • --- A major step towards our goal of reducing our carbon footprint • --- Competitive pricing enables Ferroglobe to restart its Spanish operations, pro
Slide 15: Q&A
Q&A
Slide 16: Appendix: Supplemental Information
Appendix ─ Supplemental Information
Slide 17: Quarterly Sales and Adjusted EBITDA
QUARTERLY SALES AND ADJUSTED EBITDA 17 34 86 86 241 303 185 130 45 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Adjusted EBITDA Quarterly Sales $ millions Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Silicon Metal 158 152 187 313 356 264 184 161 Silicon Alloys 119 111 166 212 2
Slide 18: Adjusted Gross Debt March-23
Adjusted gross debt March-23 18 Notes: 1. Operating leases are excluded for comparison purposes and to align to the balance sheet prior to IFRS16 adoption 2. LBP and Bankinter Factoring excluded for comparison purposes 3. Other bank loans relates to COVID-19 relief loan received in France guaranteed
Slide 19: Thank You
THANK YOU www.ferroglobe.com 19