Slide 1: Advancing Materials Innovation: Third Quarter 2023 Results
Advancing Materials Innovation NASDAQ: GSM Third Quarter 2023 Results November 8th, 2023
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: Q3 Business Review
Q3 Business Review
Slide 4: Opening Remarks and Q3 Business Highlights
Acquired a high-quality quartz mine in South Carolina near our operations, achieving full backward integration in the US Developing global partnerships and alliances to drive future growth in solar and EV battery markets Confident in long-term growth opportunities, while managing near-term uncertain
Slide 5: Product Category Snapshot: Silicon Metal
1,500 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 11,500 US CRU spot - import EU CRU spot (5.5.3) 5 Sequential quarters Adj. EBITDA evolution ($m) Index pricing trends ($/mt) Volume trends 63,681 56,349 62,988 50,545 39,459 36,942 50,651 57,031 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3
Slide 6: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 6 55,863 60,078 57,594 57,658 48,977 39,847 49,100 49,457 46,427 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 500 1,500 2,500 3,500 4,500 5,500 FeSi US CRU spot - import FeSi EU CRU spot Sequential quarters Adj. EBITDA evolution ($m) Index pric
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 97,053 75,082 97,007 61,583 61,917 46,867 62,573 56,399 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 800 1,300 1,800 2,300 High-carbon ferromanganese EU CRU spot Silico-manganese EU CRU spot Index pricing trends ($/mt) Volume trends Sequential qu
Slide 8: Q3 Financial Review
Q3 Financial Review
Slide 9: Income Statement Summary Q3-23 vs. Q2-23
INCOME STATEMENT SUMMARY Q3-23 VS. Q2-23 9 • Solid sales despite weak pricing and demand in all regions • Improved margins due to competitive energy agreements and lower raw material costs, primarily coal • Adjusted EBITDA remained solid with improved margins relative to historical levels • Finance
Slide 10: Adjusted EBITDA Bridge Q3-23 vs. Q2-23
ADJUSTED EBITDA BRIDGE Q3-23 VS. Q2-23 ($m) 10 • Average selling prices across core products decreased (11.0)% – Silicon metal (9.7)%, silicon-based alloys (8.2)% and Mn-based alloys (16.2)% • Product mix improved due to higher silicon metal shipments – Silicon metal 12.6%, si-based alloys (6.1)% an
Slide 11: Cash and Debt Evolution
431 450 400 400 237 194 127 55 37 71 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Gross Debt Net Debt 237 323 344 363 166 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Cash trends ($m) Adjusted gross and net debt ($m) CASH AND DEBT EVOLUTION 11 • Gross debt decreased $163 million to $237 million, a record low • Redeemed $150 mill
Slide 12: Cash Flow Summary
CASH FLOW SUMMARY 12 ($’000) Q3-23 Q2-23 Q3-22 EBITDA 94,419 102,491(2) 174,143 Non-cash items (44,571) (66,224) (20,050) Changes in Working Capital (51,026) 78,627 (66,900) CO2 and Others 1,595 (16,156) (19,740) Less Cash Tax Payments (9,144) (75,165) (12,481) Operating cash flow (8,727) 23,572 54,
Slide 13: Corporate Update
Corporate Updateb
Slide 14: General Corporate Update
GENERAL CORPORATE UPDATE 14 Completed an additional long-term power agreement in Spain ― Competitive pricing enables Ferroglobe to increase its production in Spain 3 2 1 Acquired a high-quality quartz mine in South Carolina to ensure long-term supply to meet the growing solar and EV battery demand ―
Slide 15: Q&A
Q&A
Slide 16: Appendix ─ Supplemental Information
Appendix ─ Supplemental Information
Slide 17: Quarterly Sales and Adjusted EBITDA
QUARTERLY SALES AND ADJUSTED EBITDA 17 86 241 303 185 130 45 106 104 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Adjusted EBITDA Quarterly Sales $ millions Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Silicon Metal 187 313 356 264 184 161 195 198 Silicon Alloys 166 212 236 179
Slide 18: Adjusted Gross Debt Sep-23
Adjusted gross debt Sep-23 18 ($´000) Current Non-current Total balance sheet Less operating leases1 Less factoring2 NMTC6 Gross debt Bank borrowings 52,071 15,073 67,144 - (51,160) (9,909) 6,075 Lease liabilities 7,058 11,570 18,628 (18,266) - - 362 Debt instruments 2,321 150,167 152,488 - - - 152,
Slide 19: Thank You
THANK YOU www.ferroglobe.com 19