Ferroglobe Plc · NASDAQ:GSM
Ferroglobe — Q1 2020 Earnings Presentation
23 slides from Ferroglobe's earnings presentation, Jun 9, 2020
Slide 1: Advancing Materials Innovation First Quarter 2020
Advancing Materials Innovation NASDAQ: GSM First Quarter 2020
Slide 2: Forward-Looking Statements and non-IFRS Financial Metrics
Forward-Looking Statements and non-IFRS Financial Metrics 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-looking
Slide 3: Opening remarks
Opening remarks Overall improvement in financial results despite challenging operating environment Quick and effective operational and financial management driving cost savings and cash generation to offset uncertainties relating to COVID-19 Progress on new strategic plan — continued focused on retu
Slide 4: I. Q1 2020 Business Review
I. Q1 2020 Business Review
Slide 5: Key highlights
Key highlights Q1 2020 results: Sales of $311.2 million, compared to $376.6 million in Q4 2019 and $447.4 million in Q1 2019 Adjusted EBITDA of ($17.6) million compared to ($30.4) million in Q4 2019 and $3.3 million in Q1 2019 Strong cash generation of $21 million driven by a positive operating cash
Slide 6: Product category snapshot — silicon metal
Volume trends Sequential quarters EBITDA evolution ($m) Commentary Pricing trends ($/mt) Product category snapshot — silicon metal Avg. realized price of $2,212/ton in Q1-20, up 2% from Q4-19 Index price in US increased by 2% and European pricing increased 12% due to capacity curtailments at year-en
Slide 7: Product category snapshot — silicon-based alloys
Volume trends Commentary Sequential quarters EBITDA evolution ($m) Product category snapshot — silicon-based alloys Pricing trends ($/mt) Avg. realized price of $1,474/ton in Q1-20, up 4% from Q4-19 — improvement primarily driven by strong FeSi Production cuts (CHF) at year-end impacting Q1 FeSi shi
Slide 8: Product category snapshot — manganese-based alloys
Volume trends Commentary Sequential quarters EBITDA evolution ($m) Product category snapshot — manganese-based alloys Pricing trends ($/mt) Avg. realized price of $973/t in Q1-20, down 8% from Q4-19 — attributable to a lag in realized prices and change in product mix Overall demand for mn-alloys rem
Slide 9: Progress on new strategic plan
Progress on new strategic plan Operating model re-design Commercial excellence Footprint and product optimization Working capital improvement Continuous plant efficiency improvement, incl. new KTM initiatives Centralized procurement SG&A/corporate overhead reduction overall_0_132355861492781273 colu
Slide 10: II. Q1 2020 Financial Review
II. Q1 2020 Financial Review
Slide 11: Income statement summary — Q1 2020
Income statement summary — Q1 2020 Improvement in cost of sales mainly relate to a reduction in manganese ore cost Staff costs reduction is driven by lower headcount in the French plants due to the temporary shutdown, the downsizing of the London office, and to one-offs costs incurred in 2019 (termi
Slide 12: Adjusted EBITDA bridge – Q4-19 to Q1-20
* Adjusted EBITDA bridge – Q4-19 to Q1-20 ($m) Cost improvement primarily attributable to raw material mix, coupled with a decrease in pricing of key inputs including energy Strong initiative to reduce the cost of raw materials used in production have resulted in considerable improvements in cost of
Slide 13: Balance sheet summary
Balance sheet summary Balance sheet 3/31/20191 6/30/20191 9/30/20191,4,5 12/31/20191,2,4,5 3/31/20201,2,4,5 Cash and Restricted Cash ($m) $216.6 $187.7 $188.0 $123.2 $144.5 Total Assets ($m) $2,083.8 $2,109.2 $1,961.3 $1,734.4 $1,533.3 Gross Debt2 ($m) $636.3 $666.3 $556.3 $481.4 $443.1 Net Debt2 ($
Slide 14: Cash flow summary
Cash flow summary Notes: An amendment to the presentation of the cash flow statement has been applied to present interest paid as ‘Cash-flow from Financing Activities’ as opposed to ‘Cash-flows from Operating Activities’. Prior periods have been restated to reflect this amendment. Free cash flow is
Slide 15: Working capital and cash trends
280 Working capital trends ($m) Cash trends ($m) Continued working capital decrease, and cash increase during the quarter The reduction in working capital by $126 million is driven by a reduction in inventory, A/R and A/P during the quarter Increase in cash flow from operating activities offsetting
Slide 16: Debt Evolution and gross and net debt summary
Debt Evolution ($m) Gross and net debt summary ($m) The decrease in Q1 2020 gross debt due to a $20 million reduction in the ABL, the elimination of the cross-currency swap by $9.6 million and the decease in accrued coupon interest. Net debt also reduced by the positive net cash flow of $21 million
Slide 17: Financing update
Financing update Actively pursuing new financings to bolster cash : COVID-19 related government funding — pursuing funding in countries where Ferroglobe has significant operations Evaluating various sources of incremental capital — additional secured lien capacity under existing debt — significant u
Slide 18: Q&A
Q&A
Slide 19: III. Appendix: supplemental information
III. Appendix: supplemental information
Slide 20: Quarter sales and adjusted EBITDA trends
Quarterly trend – revenue contribution per family of products ($m) Quarterly trend – adjusted EBITDA ($m) Quarter sales and adjusted EBITDA Note: The amounts for prior periods have been restated to show the results of the Company’s Spanish hydroelectric plants within (Loss) profit for the period fro
Slide 21: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation ($m) Note: 1 The amounts for prior periods have been re-presented to show the results of Spanish hydroelectric plants within (Loss) profit for the period from discontinued operations. ($m) Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Silicon metal $43.5 $41.5
Slide 22: Gross debt at March 31, 2020
Gross debt at March 31, 2020 ($’000) Current Non-current Total balance sheet Less operating leases 1 Less AR securitization debt 2 Gross debt Bank borrowings $1,369 $111,583 $112,952 - ($73,981) $38,971 Lease liabilities $8,932 $14,642 $23,574 ($22,684) - $890 Debt instruments $2,820 $344,639 $347,4
Slide 23: Advancing Materials Innovation First Quarter 2020
Advancing Materials Innovation NASDAQ: GSM First Quarter 2020