Ferroglobe Plc · NASDAQ:GSM
Ferroglobe — Q3 2017 Earnings Presentation
22 slides from Ferroglobe's earnings presentation, Nov 28, 2017
Slide 1: Advancing Materials Innovation Third Quarter 2017
Advancing Materials Innovation NASDAQ: GSM Third Quarter 2017
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: Table of Contents
Table of Contents Q3 2017 OverviewSelected Financial Highlights
Slide 4: I. Q3 2017 Overview
I. Q3 2017 Overview Pedro Larrea, Chief Executive Officer
Slide 5: Q3 2017 results confirm recovery trend
Q3 2017 results confirm recovery trend Continued volumes recovery in most core products (Volume change vs Q2 2017)Si Metal +0.7%Si alloys -5.7%Mn alloys +14.3% Disciplined execution of commercial strategy (ASP increase vs Q2 2017)Si Metal +5.4%Si alloys +3.7%Mn alloys +3.1% Normalized business platf
Slide 6: Q3 2017 results confirm recovery trend
Q3 2017 results confirm recovery trend Best two consecutive quarters since the creation of FerroglobeFlexible commercial and industrial strategy has allowed to adapt to market circumstancesEvolving towards full capacity utilizationHaving been able to generate cash flow even in the worst quarters Adj
Slide 7: Trade Actions and Update on corporate matters
Source: Company information Trade Actions Update on corporate matters On November 2, 2017 the Canadian International Trade Tribunal (CITT) determined that there is no injury from dumping and subsidized imports. Ferroglobe reviewing the CITT statement of reasons to evaluate next steps On October 5, 2
Slide 8: Diversified portfolio provides exposure to improved pricing across key products
Diversified portfolio provides exposure to improved pricing across key products Qtr / Qtr Revenue Growth by Product Other Source: Company information Business benefits from a diversified portfolio, now generating balanced earnings from the three main product segments Revenue Contribution by Product
Slide 9: Q3 2017 revenues up 6.1% vs previous quarter
Q3 2017 revenues up 6.1% vs previous quarter Silicon metal prices and Mn alloys volumes improvements were the key drivers in the quarter
Slide 10: Silicon metal snapshot
Silicon metal snapshot Volume Trends Sequential Quarter Product EBITDA Contribution ($m) Commentary Silicon prices remain robust — North American pricing showing steady increases on the back of trade related determinations; — European prices benefited from higher Chinese pricing in the quarter — Fav
Slide 11: Silicon-based alloys snapshot
Silicon-based alloys snapshot Volume Trends Commentary Prices for Silicon-based alloys continue to remain at historically strong levels. Prices and costs were affected by appreciation of EUR against USD. Sequential Quarter Product EBITDA Contribution ($m) Pricing Trends
Slide 12: Manganese-based alloys snapshot
Manganese-based alloys snapshot Commentary Mn-based alloys provided the biggest contribution improvement with stronger pricing and volumes, offsetting the higher ore costsVolumes improved 14.3% over Q2-17. Steady increases in volumes back to 2015 levelsPrices continue to remain healthy supported by
Slide 13: Pricing momentum continues to drive performance
Pricing momentum continues to drive performance Ferroglobe Actions Leading to Results Commercial strategy proves to be right capturing the continued recovery of the market Continue to optimize business platform: Actions underway to optimize production facilities: minimizing the impact of idled facil
Slide 14: Reported EBITDA of $54.3 million, +47.6% vs Q2 2017
Reported EBITDA of $54.3 million, +47.6 % vs reported EBITDA of $36.8 million in Q2 2017. Adjusted EBITDA of $56.1 million for the quarter.Net loss of -5.0 million, or $-0.02 per share on a fully diluted basis. Adjusted net profit attributable to the parent of $9.2 million, or $0.05 per share on a f
Slide 15: Selected Financial Highlights
Selected Financial Highlights Joe Ragan, Chief Financial Officer
Slide 16: Q3 2017 key performance indicators and overview
Q3 2017 key performance indicators and overview 1 Free cash flow defined as “Net cash provided by operating activities” minus “Payments for property, plant and equipment.”Source: Company information2 Does not include securitization program $120 m Key performance indicators Q3 2017 Q2 2017 FY 2016 Re
Slide 17: Balance sheet summary
Balance sheet summary ($mm) Q3 20171 Q2 20171 12/31/2016 Total Assets 2,162.9 2,046.4 2,019.3 Net Debt2 394.33 434.6 405.0 Book Equity 915.8 906.5 892.0 Net Debt2 / Total Assets 18.2% 21.2% 20.1% Net Debt2 / Capital4 30.1% 32.4% 31.2% Financial results are unauditedNet Debt includes finance lease ob
Slide 18: Debt evolution
Debt evolution ($m) Quarterly debt evolution1 Debt does not include $120m of securitization program Notes
Slide 19: Working capital evolution
Working capital evolution ($m) Working capital does not include $120m of securitization program Notes 1
Slide 20: Concluding remarks
Concluding remarks Improved Market Environment Contracting Season Well Underway Strong 2018 Expected
Slide 21: Q&A
Q&A
Slide 22: Forward-Looking Statements and non-IFRS Financial Metrics
Advancing Materials Innovation NASDAQ: GSM Third Quarter 2017 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 State