Slide 1: Second Quarter 2022 Results
Advancing Materials Innovation NASDAQ: GSM Second Quarter 2022 Results August 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: Q2 Business Review
Q2 Business Review
Slide 4: Business Highlights
OPENING REMARKS 4 BUSINESS HIGHLIGHTS Record setting sales, Adj. EBITDA, net income, earnings, and cash flow generation $841 million SALES 18% QoQ increase $303 million ADJ. EBITDA 26% QoQ growth 36% ADJ. EBITDA MARGIN 234 bps increase QoQ $185 million NET INCOME $0.98 EPS (diluted) 23% increase QoQ
Slide 5: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 5 Volume trends Index pricing trends ($/mt) Sequential quarters EBITDA evolution ($m) • Avg. realized price up 1.7% QoQ (excl. JV shipments, avg. realized price down -1.4% QoQ) outperforming the broader market • Volumes increased 11.8%: end market demand stren
Slide 6: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 6 Volume trends Index pricing trends ($/mt) Sequential quarters EBITDA evolution ($m) 42,449 57,351 61,604 65,222 55,863 60,078 57,594 57,658 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 • Avg. realized selling price up 11.3% primarily due to product
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 Volume trends Index pricing trends ($/mt) Sequential quarters EBITDA evolution ($m) 53,980 78,611 72,609 68,323 76,454 97,053 75,082 97,007 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 • Avg. realized selling price up 3.2% QoQ • Volumes increased
Slide 8: Q2 Financial Review
Q2 Financial Review
Slide 9: Income Statement Summary Q2-22 vs. Q1-22
INCOME STATEMENT SUMMARY Q2-22 VS. Q1-22 9 • Record top line driven primarily by higher volumes and pricing across the portfolio • Continued improvement in raw materials as a percentage of sales despite inflationary impact on raw materials • Other operating expense increase attributable the mark-to-
Slide 10: Adjusted EBITDA Bridge Q2-22 vs Q1-22
ADJUSTED EBITDA BRIDGE Q2-22 vs Q1-22 ($m) 10 • Average selling price across core products increased 1.8%: Silicon Metal (+1.7%), Silicon-based alloys (+11.3%) and Mn-based alloys (+3.2%) • Volume across core products increased 15.1%: Silicon Metal (+11.8)%, Si-based alloys (+0.1)% and Mn-based allo
Slide 11: Balance Sheet Summary
BALANCE SHEET SUMMARY 11 1. Unaudited Financial Statements 2. Adjusted gross debt excludes bank borrowings on factoring program at Jun. 30, 2022 & Mar. 31, 2022, and on the A/R securitization at Mar. 31, 2021 3. Cash and restricted cash includes the following as at the respective period ends: ― Jun.
Slide 12: Cash and Debt Evolution
CASH AND DEBT EVOLUTION 12 464 498 513 518 500 358 403 397 342 194 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Gross Debt Net Debt 106 95 116 176 307 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Cash trends ($m) Adjusted gross and net debt ($m) • Adjusted gross debt decreased as a result of the open-market repurchase of $19.9 m
Slide 13: Cash Flow Summary
CASH FLOW SUMMARY 13 (1) Free cash flow is calculated as operating cash flow plus investing cash flow ($’000) Q2-22 Q1-22 Q4-21 Q3-21 Q2-21 EBITDA 285,483 232,239 80,434 35,231 31,943 Non-cash items 1,072 2,124 (6,477) 1,250 65 Changes in Working capital (90,835) (167,768) (55,626) (71,518) (33,994)
Slide 14: Financing Update
FINANCING UPDATE 14 Asset-Based Revolving Credit Facility Closing • On June 30th, 2022 Ferroglobe US and Canadian subsidiaries entered in new ABL program with Bank of Montreal. ─ five-year, up to $100m financing guaranteed by accounts receivable and inventories in the US and Canada ─ interest of SOF
Slide 15: Corporate Update
Corporate Updateb
Slide 16: General Corporate Update
GENERAL CORPORATE UPDATE 16 Transformation plan delivering ahead of schedule • Increasing run-rate cost savings/EBITDA targets across all focus areas • $225 million by 2024, up from initial target of $180 million Committed to ESG • Published inaugural ESG report increasing transparency and highlight
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 22 06 22 34 38 86 241 303 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Adjusted EBITDA Quarterly Sales $ millions Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Silicon Metal 115 124 140 158 152 187 313 356 Silicon Alloys 65 88 104 119 111 1
Slide 20: Adjusted Gross Debt
ADJUSTED GROSS DEBT As of June 30, 2022 20 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 funding received in France wit
Slide 21: Delivering Ahead of Plan with New Pockets of Enhancements
DELIVERING AHEAD OF PLAN WITH NEW POCKETS OF ENHANCEMENTS BEING DISCOVERED 21 Commercial Excellence Footprint Optimization / SG&A Continuous Operational Improvement Centralized Procurement Working Capital $70 million $180 million One-off liquidity event $40 million $50 million $70 million $75 millio
Slide 22: Thank You
THANK YOU www.ferroglobe.com 22