Ferroglobe Plc · NASDAQ:GSM
Ferroglobe — Q1 2021 Earnings Presentation
24 slides from Ferroglobe's earnings presentation, May 17, 2021
Slide 1: Advancing Materials Innovation: First Quarter Results 2021
Advancing Materials Innovation NASDAQ: GSM First Quarter Results 2021 May 18th 2021 1
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 I.Q1 2021 Business Review II.Q1 2021 Financial Review III. Update on Strategic Plan IV. Appendix — Supplemental Information
Slide 4: Opening Remarks
OPENING REMARKS After a challenging year, Q1 marks an inflection point — faster than expected recovery across entire product portfolio Strong pace to the execution phase of the strategic plan across all value creation areas Well positioned operationally and financially to capitalize on the opportuni
Slide 5: Q1 2021 Business Review
I.Q1 2021 Business Review
Slide 6: Key Highlights
I KEY HIGLIGHTS Ferroglobe • Q1-21 results: • • • • Sales of $361.4 million,compared to $320.5 million in Q4-20 and $311.2 million in Q1-20 Adjusted EBITDA of $22.1 million compared to $5.5 million in Q4-20 and ($17.6) million in Q1-20 Net loss of ($68.5) million,compared to a net loss of ($139.8) m
Slide 7: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal Pricing trends ($/mt) Volume trends 62,269 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Commentary Sequential quarters EBITDA evolution ($m) • • • Average realized price of $2,285/ton in Q1-21, up 1% from $2,260/ton in Q4-20 US and European indices up
Slide 8: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY Silicon-Based Alloys Pricing trends ($/mt) SNAPSHOT Volume trends Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Commentary Sequential quarters EBITDA evolution ($m) • • Average realized price of $1,528/ton in Q1-21, up 9% from $1,665/ton in Q4-20 Ferrosilicon index pricing i
Slide 9: Product Category Snapshot: Manganese Alloys
PRODUCT CATEGORY Manganese-Alloys Pricing trends ($/mt) SNAPSHOT Volume trends Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Commentary Sequential quarters EBITDA evolution ($m) • • • • • Average realized selling price of $1,174/ton, up 14% from $1,031/ton in Q4 Index pricing for ferromangan
Slide 10: Q1 2021 Financial Review
II.Q1 2021 Financial Review
Slide 11: Income Statement Summary
INCOME STATEMENT SUMMARY Q1-21 vs. Q4-20 11 Consolidated Income Statement ($'000) Q1-21 Q4-20 vs Q Sales 361,390 320,535 13% Cost of sales (250,165) (272,603) (8%) Other operating incomes 1,913 8,100 (76%) Staff costs (95,267) (54,444) 75% Other operating expense (36,835) (29,143) 26% Depreciation a
Slide 12: Adjusted EBITDA Bridge Q1-21 to Q4-20
ADJUSTED EBITDA BRIDGE Q1-21 to Q4-20 ($m) • Volume: increase of 2% — increased activity in silicon metal and silicon-based alloys, partially offset with decrease in Mn-based alloys • Pricing: average realized pricing increased by 12%, quarter-over-quarter — improved pricing across all product categ
Slide 13: Balance Sheet Summary
BALANCE SHEET SUMMARY 13 Notes: Unaudited Financial Statements Gross debt excludes bank borrowings on factoring program at Mar. 31, 2021 and Dec. 31, 2020 and on the factoring program at Mar. 31, 2020 Cash and restricted cash includes the following as at the respective period ends: Mar. 31, 2020 – U
Slide 14: Cash Flow Summary
CASH FLOW SUMMARY Non cash items 1,392 620 33,379 38,516 36,563 Changes in Working capital Changes in Accounts Receivables 83,832 45,537 (4,731) (53,604) (41,692) Changes in Accounts Payable (25,504) (4,875) (20,359) (4,667) 26,152 Changes in Inventory 51,577 (12,471) 3,725 71,754 11,446 Securitizat
Slide 15: Working Capital and Cash
WORKING CAPTIAL AND CASH Quarterly Evolution ($m) Working capital trends ($m) Cash trends ($m) 152 147 144 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Restricted cash Q3-20 Q4-20 Q1-21 SPV Unrestricted cash • • Working capital stable as a result of the tight control in the level of inventories The cas
Slide 16: Gross and Net Debt
GROSS AND NET DEBT Quarterly Evolution ($m) 456 451 442 442 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Gross Debt Net Debt • The decrease in gross debt is driven by the full repayment of the Asset Based Loan in the United States • Net debt increased by $10 million due to the decline in cash during the quarter.Th
Slide 17: Financing Update
FINANCING UPDATE 17 Key events in Q1 2021 On March 28, 2021, Ferroglobe plc announced an agreement in principle on the terms of a capital raise, extension of bond maturity and entry into a Lock-up Agreement with members of an “Ad Hoc Group” and Tyrus Capital The “Transaction” involves three inter-co
Slide 18: Update on Strategic Plan
III.Update on Strategic Plan
Slide 19: Strategic Plan Delivery During Q1-21
STRATEGIC plan delivery during Q1-21 19 Footprint Optimization - launched process with EWC Continuous Plant Efficiency - initial pilot project in France - cross functional team rolling out plan globally Procurement* - new organization designed and implemented - training of personnel - first series o
Slide 20: Q&A
Q&A
Slide 21: Appendix: Supplemental Information
IIV.Appendix ― Supplemental Information
Slide 22: Quarterly Sales and Adjusted EBITDA
APPENDIX Quarterly sales and Adjusted EBITDA Quarterly Sales Adjusted EBITDA 22 22 22 (18) (30) Q4-19 Q1-19 Q2-19 Q3-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 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
Slide 23: Gross Debt at March 31, 2021
APPENDIX Gross debt at March 31, 2021 Factoring Notes: 1. Operating leases are excluded from the presentation for comparison purposes to align the balance sheet to the balance sheet prior to IFRS16 adoption LBP Factoring signed on October 2, 2020, net of issuance costs of $1 million Other bank loans
Slide 24: Thank You
Web www.ferroglobe.com 24 THANK YOU