Ferroglobe Plc · NASDAQ:GSM
Ferroglobe — FY2020 Earnings Presentation
25 slides from Ferroglobe's earnings presentation, Mar 1, 2021
Slide 1: Advancing Materials Innovation: Fourth Quarter and Full Year 2020
Advancing Materials Innovation NASDAQ: GSM Fourth Quarter and Full Year 2020 March 2, 2021 1
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: Table of Contents
TABLE OF CONTENTS Q4 and Full Year 2020 Business Review Q4 and Full Year 2020 Financial Review Update on Strategic Plan Appendix — Supplemental Information
Slide 4: Opening Remarks
OPENING REMARKS 4 Q4 marked the ending to a challenging 2020 driven by the pandemic. Positive end market demand and pricing momentum into 2021 Successful cash management supported by various cost cutting initiatives and refinancing. New financing proposal supports full turnaround plan Strategic plan
Slide 5: Q4 and Full Year 2020 Business Review
Q4 and Full Year 2020 Business Review I.
Slide 6: Full Year 2020 and Q4-20 results
Full Year 2020 results: Sales of $1.14 billion, compared to $1.6 billion in FY19 Net loss of ($194.1) million including a goodwill impairment charge of $36.8 million, compared to net loss of ($285.6)million in 2019 Adjusted EBITDA of $32.8 million compared to ($29.2) million in 2019 Return to positi
Slide 7: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 7 Sequential quarters EBITDA evolution ($m) Commentary Volume trends Pricing trends ($/mt) Average realized price up 0.5% during the quarter — lag impact US and European indices up 2.6% and 7.5%, respectively Volumes increased by 7.2% — end market pick-up and
Slide 8: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 8 Sequential quarters EBITDA evolution ($m) Commentary Volume trends Pricing trends ($/mt) Average realized selling price down 0.4%; improved ferrosilicon pricing offset by calcium silicon and foundry product pricing Ferrosilicon index pricing improved
Slide 9: Product Category Snapshot: Manganese Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Alloys 9 Sequential quarters EBITDA evolution ($m) Commentary Volume trends Pricing trends ($/mt) Average realized selling price up 2.2% Index pricing for ferromanganese up4.4% and for silicomanganese up 1.7% Volume improvement of 58% in ferromanganese and 37% in
Slide 10: Q4 and Full Year 2020 Financial Review
Q4 and Full Year 2020 Financial Review II.
Slide 11: Income Statement Summary
Increased sales (quarter-over-quarter) offset by higher cost of sales (some one-off) the accrual for the purchase of CO2 emission rights, the realized benefit in Q3 2020 from an R&D project in France, and the increase in commercial expenses resulting from higher sales volume and an increase in opera
Slide 12: Adjusted EBITDA Bridge Q4-20 vs Q3-20
ADJUSTED EBITDA BRIDGE Q4-20 vs Q3-20 ($m) 12 Volume: 23% increase in shipments across all products vs prior quarter driven by a pick-up in activity across all major end markets Price: Average realized selling price increased 2% vs prior quarter, primarily driven by ferrosilicon ($1.6 million) and f
Slide 13: Adjusted EBITDA Bridge Full Year 2020 vs Full Year 2019
ADJUSTED EBITDA BRIDGE Full Year 2020 vs. Full Year 2019 ($m) 13 Volume: 29% decline in year-over-year shipments due to impact of COVID-19 and scaling back of the operating footprint Significant pricing decline across all major products selling prices as the pace of demand deterioration outpaced sup
Slide 14: Balance Sheet Summary
BALANCE SHEET SUMMARY 14 Notes: Financial results are unaudited Gross debt excludes bank borrowings on the A/R securitization at Dec. 31, 2020, Sep. 30, 2020 and factoring at Dec. 31, 2020 Cash and restricted cash includes the following as at the respective period ends: Dec. 31, 2019 – Unrestricted
Slide 15: Cash Flow Summary
CASH FLOW SUMMARY Q4 and Full Year 2020 15 Note: Free cash flow is defined as ‘Cash Flow From Operating Activities’ less ‘Payments for Capital Expenditure’ Simplified Cash Flows $’000 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 EBITDA (48,482) (20,205) 22,093 (12,242) (630) (10,984) Non cash items 2,048 1
Slide 16: Working Capital and Cash
Cash trends WORKING CAPITAL AND CASH Quarterly Evolution ($m) 16 Working capital trends The decrease in working capital in Q4 is mainly due to a reduction in inventories and the strengthening of the Euro vs the US dollar While total cash decreased to $132 million as of December 31, 2020, the unrestr
Slide 17: Gross and Net Debt
GROSS AND NET DEBT Quarterly Evolution ($m) 17 The increase in gross debt is driven by the accrual of the semi-annual bond coupon payable under the senior unsecured notes, and the impact of the Tribunal Superior de Galicia decision 481 442 451 442 473 358 299 300 295 341 Q4-19 Q1-20 Q2-20 Q3-20 Q4-2
Slide 18: Financing Update
Successful refinancing of existing A/R program (closed October 2, 2020) More favourable terms and lower cost Release of cash at closing ($19.7 million) Proposed financing addresses the existing unsecured notes and new capital injection positive discussions continue FINANCING UPDATE 18
Slide 19: Update on Strategic Plan
Update on Strategic Plan III.
Slide 20: Strategic Plan Update
STRATEGIC PLAN UPDATE 20 All value creation areas transitioned from planning phase to execution phase — bottom-up analysis concluded to reconfirm value potential First round of positive financial impact being realized across all areas Ramp-up in execution beginning Q2
Slide 21: Q&A
Q&A
Slide 22: Appendix — Supplemental Information
Appendix — Supplemental Information IV.
Slide 23: Quarterly Sales and Adjusted EBITDA
APPENDIX Quarterly sales and Adjusted EBITDA 23 Note: The amounts for prior periods have been restated to show the results of the Company’s Spanish hydroelectric plants within (Loss) profit for the period from discontinued operations and therefore these results are also excluded from adjusted EBITDA
Slide 24: Gross Debt at December 31, 2020
APPENDIX Gross Debt at December 31, 2020 24 ($’000) Gross debt Bank borrowings: Asset-Based Loan (3) 27,237 Trade letters of credit - Other bank loans (4) 5,525 32,762 Finance leases: Hydro leases - Other finance leases 17,837 17,837 Debt instruments: Principal Senior Notes 350,000 Debt issuance cos
Slide 25: Thank You
THANK YOU Web www.ferroglobe.com 25