Amg Critical Materials N.v. · EURONEXT:AMG

Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (May 2012)

25 slides from Amg Critical Materials's investor presentation, May 2012

  1. Slide 1: Investor Presentation May 2012

    Investor Presentation May 2012

  2. Slide 2: Cautionary Note

    Cautionary Note THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG ADVANCED METALLURGICAL GROUP N.V. (THE “COMPANY”) AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE

  3. Slide 3: Overview

    Overview Listed: NYSE-Euronext Amsterdam: AMG Founded: 2006 2011 Revenues: $1,351.3M 2011 EBITDA: $110.1M Employees: 3,154 Facilities: Netherlands, Germany, UK, USA, Brazil, France, China, Belgium, Turkey, Poland, India, Sri Lanka, Czech Republic Market cap: €193M ($252M) Shares outstanding: 27.5M 5

  4. Slide 4: Business Units, Products, and End Markets

    Business Units, Products, and End Markets Advanced Materials Engineering Systems Graphit Kropfmühl AMG Mining  67% of Q1 2012 revenue  21% of Q1 2012 revenue  12% of Q1 2012 revenue  Creating new reporting  62% of Q1 2012 EBITDA  14% of Q1 2012 EBITDA  24% of Q1 2012 EBITDA segment in 2012 

  5. Slide 5: Why Invest in AMG

    Why Invest in AMG Revenue EBITDA 2009 – 2011 2009 – 2011 Advancing 24.8% productivity 26.2% CAGR and CAGR technology 2011: 2011: $ 1,351.3 million $ 110.1 million + 36% over 2010 + 30% over 2010 Increase Shareholder Value Horizontal Vertical ROCE Consolidati EPS Integration on 2009 – 2011 Strong gro

  6. Slide 6: Critical Raw Materials Matrix

    Critical Raw Materials Matrix ■ USA, Germany, UK and EU have each identified critical materials – common factors include supply risks, economic importance and technology demand ■ AMG mines or processes 13 of those critical materials 6

  7. Slide 7: Advanced Materials

    Advanced Materials End Input & Critical Material Key Everyday Sample Markets Raw Materials Science Products Applications Customers  Conversion  Specialty alloys Property for titanium Modification  Coatings for wear resistance A Boeing 787 Aerospace Surface Dreamliner contains  Recycling Coating

  8. Slide 8: Engineering Systems

    Engineering Systems End Input & Critical Material Key Everyday Sample Markets Raw Materials Science Products Applications Customers  Technology  Vacuum Melting Property and Re-melting Modification Systems  Precision Casting All modern turbine Aerospace Surface and Coating engines use titanium Coa

  9. Slide 9: Graphit Kropfmühl

    Graphit Kropfmühl End Input & Critical Material Key Everyday Sample Markets Raw Materials Science Products Applications Customers  Mining  Natural graphite Property for heat insulation Modification materials for building Improving energy Infrastructure  Conversion construction efficiency in build

  10. Slide 10: Recent Developments

    Recent Developments AMG Mining Focus on improving mining operational efficiencies at AMG's existing antimony and tantalum mines ■ Appointed Mr. Hoy Frakes as President of AMG Mining AMG Aluminum Began the next phase in the coordination of global production sites and global customer service activitie

  11. Slide 11: Financial Highlights

    Financial Highlights 11

  12. Slide 12: Financial Highlights

    Financial Highlights Revenue 2011 Gross Profit LTM: $1,357.3 (in USD millions) LTM: $231.6 (in USD millions) $324.0 $53.4 $368.3 $69.0 $356.4 Up $59.8 $58.7 Down $318.0 $308.6 2% $50.5 11% YoY YoY - - - - - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 EBITDA Adjusted EPS LTM: $105.8 (

  13. Slide 13: Capital Base

    Capital Base Cash and Debt Cash Debt ( in USD millions) ■ Net debt: $206.4 million ■ Debt to capitalization: 0.55x ■ Net Debt to LTM EBITDA: 1.95x ■ Revolver availability: $47.9 million ■ Total liquidity: $129.1 million $287.6 $267.1 $278.5 $274.9 $268.6 ■ AMG’s primary debt facility is a $377 milli

  14. Slide 14: Key Products

    Key Products Revenue Gross Profit ( in USD millions) ( in USD millions) Q1 2012: $324.0 Q1 2012: $53.4 $300 $60 $250 $50 $200 $40 $150 $30 $100 $20 $50 $10 $- $- YTD Q1 2011 YTD Q1 2012 YTD Q1 2011 YTD Q1 2012 Vacuum Furnaces Ti Master Alloys and Coatings Vacuum Furnaces Ti Master Alloys and Coating

  15. Slide 15: End Markets

    End Markets Revenue Gross Profit ( in USD millions) ( in USD millions) Q1 2012: $324.0 Q1 2012: $53.4 Aerospace Aerospace 32.4% 33.5% Infrastructure 14.2% Energy Energy 19.6% Infrastructure 14.3% 17.8% Specialty Metals Specialty Metals & Chemicals & Chemicals 39.1% 29.1% Aerospace + 26% Infrastructu

  16. Slide 16: Advanced Materials

    Advanced Materials Financial Summary ■ Q1 2012 revenue up 3% from Q1 2011 ( in USD millions) $280.0 Revenue EBITDA $235.6 $230.0 $210.8 $226.8 $216.5 $21.0 ■ Titanium master alloys revenue up $198.7 $17.5 83% $180.0 $14.6 $13.7 $16.0 ■ Antimony revenue down 6% $12.3 $130.0 $11.0 ■ FeV revenue down 5

  17. Slide 17: Engineering Systems

    Engineering Systems Financial Summary  Q1 2012 revenue up 5% from Q1 2011 ( in USD millions) $105.0 Revenue EBITDA $20.0 $89.8 $86.3 $85.0  Heat treatment revenue up 128% $72.9 $64.9 $68.0 $15.0  Remelting furnace revenue up 45% $65.0 $11.8  Solar DSS revenue down 88% $9.3 $45.0 $7.7 $10.0  Q1

  18. Slide 18: Graphit Kropfmühl

    Graphit Kropfmühl Financial Summary  Q1 2012 revenue down 7% from Q1 ( in USD millions) $50.0 Revenue EBITDA $42.3 $42.9 $43.3 $45.0 $39.5 2011 $40.0 $37.0 $35.0 $11.0  Natural graphite revenue down 11% $30.0  Silicon metal revenue down 4% $25.0 $7.0 $6.3 $6.2 $6.2 $20.0 $5.2 $15.0 $6.0  Q1 2012

  19. Slide 19: Outlook

    Outlook

  20. Slide 20: Outlook

    Outlook Advanced Materials Engineering Systems Graphit Kropfmühl AMG Mining  Challenging start to  Heat Treatment  Voluntary Tender  Antimony expansion 2012 Services business completed is progressing on plan  Aerospace is strong providing more stable  Silicon metal prices  Tantalum demand is

  21. Slide 21: Appendix

    Appendix 21

  22. Slide 22: Consolidated Balance Sheet

    Consolidated Balance Sheet Balance Sheet ($’000) Actual As of 31-Dec-11 31-Mar-12 Fixed assets 263.6 273.8 Goodwill and intangibles 38.1 38.9 Other non-current assets 63.4 65.4 Inventories 228.9 232.5 Receivables 188.1 223.0 Other current assets 39.1 47.1 Cash 79.6 81.2 TOTAL ASSETS 900.8 961.9 TOTA

  23. Slide 23: Consolidated Income Statement

    Consolidated Income Statement Income Statement ($’000) Actual For the three months ended 31-Mar-11 31-Mar-12 Revenue 318.0 324.0 Cost of sales 258.2 270.6 Gross profit 59.8 53.4 Selling, general & admin. 42.9 39.1 Asset impairment & restructuring 0.3 2.8 Environmental 0.1 0.7 Other income (0.9) (0.5

  24. Slide 24: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows Cash Flow Statement ($’000) Actual For the three months ended 31-Mar-11 31-Mar-12 EBITDA 26.2 21.9 +/- Change in operating assets/liabilities (22.1) (19.4) -Interest paid, net (1.2) (3.1) Other operating cash flow (0.3) 0.8 Cash flows from operations before taxes

  25. Slide 25: Slide 25

AMG Advanced Metallurgical Group — Investor Presentation (May 2012) on 6ix