Slide 1: Second Quarter 2024 Results
Driving innovation of critical materials essential to a sustainable future Second Quarter 2024 Results August 6, 2024 NASDAQ: GSM NASDAQ: GSM
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: Q2 2024 Business Review
Q2 2024 Business Review NASDAQ: GSM
Slide 4: Solid Execution Drives Strong Second Quarter
SOLID EXECUTION DRIVES STRONG SECOND QUARTER Operations and Strategy Improved Financial Performance • U.S. Commerce Department imposes preliminary duties on all • Narrowing adj. EBITDA guidance to $150-$170 million FeSi imports from Russia • Strong sales recovery, driven by SiMe and Mn Alloys • Core
Slide 5: Solid Quarter Over Quarter Improvement
SOLID QUARTER OVER QUARTER IMPROVEMENT Sales of $451M Increase from 1Q Adjusted EBITDA of $58M Increase from 1Q Operating Operatingcash cashflow flowof of$200m $2M Decrease from 1Q Free cash flow of $(20)M Decrease from 1Q NASDAQ: GSM 5
Slide 6: Silicon Metal
SILICON METAL Outlook: U.S. Prices are leveling off with muted demand in the aluminum and auto sectors; European demand remains weak with Chinese imports pressuring prices; chemical grade performing better Silicon Metal Shipments Q/Q by Region Adj. EBITDA Evolution Q/Q ($m) Europe 58% Other 21% N. A
Slide 7: Silicon Based Alloys
SILICON BASED ALLOYS Outlook: Prices are expected to soften in Europe and the U.S. due to weakness in demand; high FeSi inventories in the U.S. likely to impact prices for the next few months until destocking is completed; expect improvement in 2025 Silicon Alloys Shipments Q/Q by Region Adj. EBITDA
Slide 8: Manganese Based Alloys
MANGANESE BASED ALLOYS Outlook: Weak steel production persists in Europe; price increases driven by high grade manganese ore shortage; capitalized on South32 shutdown; expect shipment volume to normalize in the second half Manganese Alloys Shipments Q/Q by Region Adj. EBITDA Evolution Q/Q ($m) (*) E
Slide 9: Q2 2024 Financial Review
Q2 2024 Financial Review NASDAQ: GSM
Slide 10: Improved Top Line and Margins
IMPROVED TOP LINE AND MARGINS Q2 2024 Q1 2024 Q/Q Sales growth driven by price and volume (in USD million, except EPS) increases in silicon and manganese alloys. Lower silicon alloy volumes partially offset by Sales $451.0 $391.9 improved pricing Raw materials & $(264.3) $(257.4) energy for prod. Ra
Slide 11: Adjusted EBITDA Bridge Q2-24 vs. Q1-24
ADJUSTED EBITDA BRIDGE Q2-24 VS. Q1-24 ($m) • Average selling prices across core products increased 2.5%: Silicon metal 2.8%, silicon-based alloys 2.4% and Mn-based alloys 12.9% • Total volume increased 14.8%: Silicon metal 18.2%, silicon-based alloys -8.2% and Mn-based alloys 30.7% • Costs negative
Slide 12: Cash Flow Summary
CASH FLOW SUMMARY Q2 2024 Q1 2024 Q/Q Working capital increased due to restart of (in USD millions) French operations and higher manganese ore purchases EBITDA $67.0 $22.6 Non-cash items & $(11.7) $(1.2) Other CAPEX increased by $4 million to $22 million Energy compensation $0.0 $154.6 Changes in NW
Slide 13: Net Cash and Debt Evolution
NET CASH AND DEBT EVOLUTION Adjusted Gross and Net Cash ($m) $400 Adj. Gross Debt Net Cash • Net cash positive of $63.7 million, as we continue to operate the business with a solid balance sheet • Cash balance of $144.5 million as of June 30, 2024 $237 $239 Minimal leverage $81 $79 $81 $64 0.3x Adj.
Slide 14: Q2 2024 Corporate Update
Q2 2024 Corporate Update NASDAQ: GSM
Slide 15: Key Takeaways
KEY TAKEAWAYS NARROWING ADJUSTED EBITDA GUIDANCE RANGE TO $150M TO $170M Strong second quarter performance • Stronger sales versus first quarter • Adjusted EBITDA grew 124% and margins expanded by 600bps over the prior quarter U.S. Department of Commerce announced preliminary duties on Russian FeSi
Slide 16: Q&A
Q&A NASDAQ: GSM
Slide 17: Appendix - Supplemental Information
Appendix ─ Supplemental Information NASDAQ: GSM
Slide 18: Quarterly Sales and Adjusted EBITDA
QUARTERLY SALES AND ADJUSTED EBITDA Quarterly sales $ million Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Silicon metal 264 184 161 195 198 168 168 204 Silicon-based alloys 179 127 137 133 115 107 112 105 Manganese-based alloys 97 97 62 78 59 60 66 98 Other business 53 40 41 50 4
Slide 19: Investor Relations
Investor Relations Media Inquiries Alex Rotonen Cristina Feliu Roig VP, Investor Relations Executive Director, Communications & Public Affairs investor.relations@ferroglobe.com NASDAQ: GSM corporate.comms@ferroglobe.com NASDAQ: GSM