Slide 1: Third Quarter 2022 Results
Advancing Materials Innovation NASDAQ: GSM Third Quarter 2022 Results November 16th, 2022
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: Q3 Business Review
Q3 Business Review
Slide 4: Opening Remarks: Business Highlights
OPENING REMARKS 4 BUSINESS HIGHLIGHTS $593 million SALES 29% Q/Q decrease $185 million ADJ. EBITDA 39% Q/Q decrease 31% ADJ. EBITDA MARGIN 5% decrease Q/Q $99 million NET INCOME $0.52 EPS 47% decrease Q/Q $194 million NET DEBT (9/30/22) Flat Q/Q Q3 FINANCIAL HIGHLIGHTS $237 million CASH EQUIV (9/30/
Slide 5: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 5 Volume trends Sequential quarters Adj. EBITDA evolution ($m) Index pricing trends ($/mt) Avg. realized price down 7.6% Q/Q (excl. JV shipments, avg. realized price down 4.7% Q/Q). Market index was (18)% US, (22)% EU Volumes decreased 19.8% Q/Q due to challen
Slide 6: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 6 Volume trends Sequential quarters Adj. EBITDA evolution ($m) Index pricing trends ($/mt) Avg. realized selling price declined 10.8% Q/Q. Market prices for ferrosilicon down from peak levels but still high in historical context. Market Index was (18)%
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 Volume trends Sequential quarters Adj. EBITDA evolution ($m) Index pricing trends ($/mt) Avg. realized selling price down 20.2% Q/Q. Price pressure due to large imports from India and Asia Volumes decreased 36.5% Q/Q. Q3 Demand normalized after an e
Slide 8: Q3 Financial Review
Q3 Financial Review
Slide 9: Income Statement Summary Q3-22 vs. Q2-22
INCOME STATEMENT SUMMARY Q3-22 vs. Q2-22 9 Strong third quarter results despite difficult energy markets, especially in Spain with temporary shutdowns Limited increase in raw materials as a percentage of sales despite inflationary impact on raw materials and energy costs Other operating expense decr
Slide 10: Adjusted EBITDA Bridge Q3-22 vs Q2-22
ADJUSTED EBITDA BRIDGE Q3-22 vs Q2-22 ($m) 10 Average selling price across core products decreased (10.1)%: Silicon Metal (7.6)%, Silicon-based alloys (10.8)% and Mn-based alloys (20.2)% Volume across core products decreased (21.8)%: Silicon Metal (19.8)%, Si-based alloys (15.1)% and Mn-based alloys
Slide 11: Cash and Debt Evolution
CASH AND DEBT EVOLUTION 11 Adjusted gross and net debt ($m) Cash trends ($m) Adjusted gross debt decreased by $69 million primarily driven by the $60 million of 9% super senior notes redeemed in July 2022 and coupon payment Net debt has remained flat as during the quarter the cash generated was rein
Slide 12: Balance Sheet Summary
BALANCE SHEET SUMMARY 12 Unaudited Financial Statements Adjusted gross debt excludes bank borrowings on factoring program at Sep. 30, 2022, Jun. 30, 2022 & Sep. 30, 2021 Cash and restricted cash includes the following as at the respective period ends: Sep. 30, 2021 - Unrestricted cash of $99.9 milli
Slide 13: Cash Flow Summary
CASH FLOW SUMMARY 13 (1) Free cash flow is calculated as operating cash flow plus investing cash flow ($’000) Q3-22 Q2-22 Q1-22 Q4-21 Q3-21 EBITDA 174,143 285,483 232,239 80,434 35,231 Non-cash items (20,050) 1,072 2,124 (6,477) 1,250 Changes in Working Capital (86,640) (90,835) (167,768) (55,626) (
Slide 14: Financing Update
FINANCING UPDATE 14 9% Super Senior Notes In Q3, successfully redeemed 100% of the super senior notes at par value to the bond holders for a total amount of $60 million Moody’s credit upgrade Moody’s upgraded the 9.375% senior notes due 2025 to B3 in Q3
Slide 15: b
b Corporate Update
Slide 16: General
GENERAL CORPORATE UPDATE 16 France Energy contract for 2023 Proactive cost & cash management Reduce exposure against volatile & higher spot energy cost in France Idle production in the first quarter of 2023, in order manage our rates to be similar to 2022 No market supply disruption anticipated, tha
Slide 17: Q&A
Q&A
Slide 18: Appendix ─ Supplemental Information
Appendix ─ Supplemental Information
Slide 19: Quarterly Sales and Adjusted EBITDA
QUARTERLY SALES AND ADJUSTED EBITDA 19 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 from discontinued operations and therefore these results are also excluded from adjusted EBITDA Adjusted
Slide 20: Adjusted Gross Debt
ADJUSTED GROSS DEBT As of September 30, 2022 20 Notes: Operating leases are excluded for comparison purposes and to align to the balance sheet prior to IFRS16 adoption LBP and Bankinter Factoring excluded for comparison purposes Other bank loans relates to COVID-19 funding received in France with a
Slide 21: Thank You
THANK YOU www.ferroglobe.com 21