Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Day (June 2017)
17 slides from Amg Critical Materials's investor day presentation, June 2017
Slide 1: AMG Advanced Metallurgical Group N.V. Capital Markets Day June 2017
AMG Advanced Metallurgical Group N.V. Capital Markets Day June 2017
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
Slide 3: Health and Safety Focus
HEALTH AND SAFETY FOCUS LEADING SAFETY INDICATORS • The number of safety improvement items reported in Q1 2017 was 35% lower compared to the Q1 2016. These are essential in order to avoid potential injuries. • Safety training hours increased 18% in Q1 2017. • At the end of Q1 2017, lost time inciden
Slide 4: AMG Is a Critical Materials Company
GLOBAL TRENDS AMG IS A CRITICAL CO2 emission reduction, MATERIALS COMPANY population growth, increasing affluence, and energy efficiency DEMAND Innovative new products that are lighter, stronger, and resistant to higher temperatures SUPPLY AMG sources, processes, and supplies the critical materials
Slide 5: Leader in Advanced Technologies to Address CO2 Reduction
LEADER IN ADVANCED TECHNOLOGIES AMG: MITIGATING TECHNOLOGIES TO ADDRESS CO2 REDUCTION Products and processes saving raw materials, energy and CO2 emissions during manufacturing CO REDUCTION 2 (i.e., recycling of Ferrovanadium) A GLOBAL IMPERATIVE FOR THE 21ST CENTURY AMG: ENABLING TECHNOLOGIES Produ
Slide 6: AMG at a Glance
AMG AT A GLANCE Q1 2017 REVENUE BY SEGMENT: BY END MARKET: BY REGION: 40% Transportation 43% Europe 75% Critical Materials 23% Specialty Metals 33% North America & Chemicals 25% Engineering 24% Infrastructure 19% Asia 13% Energy 5% ROW AMG IS A GLOBAL SUPPLIER OF CRITICAL MATERIALS TO: ENERGY TRANSP
Slide 7: Critical Materials Prices: 10 Year Perspective
CRITICAL MATERIALS PRICES: 10 YEAR PERSPECTIVE • Metal prices are Mar 2017 Position Mar 2016 Position measured on a scale Highest 10 Price in of 0 to 10, with 0 and 10 10 years representing the minimum and maximum average quarterly prices occurring 7.5 during the past 10 years • The positions demons
Slide 8: Strong Capital Structure, Free of Net Debt, Positioned for Growth
STRONG CAPITAL STRUCTURE, FREE OF NET DEBT, POSITIONED FOR GROWTH Optimized Disciplined organic Initiated dividend capital structure growth and payments acquisitions • Refinanced credit facility in 2016, • Dividend growth rate to be • Rigorous process to review providing a stable capital base balanc
Slide 9: Excellent Platform for Organic and Acquisition Led Growth
EXCELLENT PLATFORM FOR ORGANIC AND ACQUISITION LED GROWTH MISSION STATEMENT To increase long-term value through industry leadership, operational expertise and efficient deployment of capital STRATEGIC OBJECTIVE Identifying long-term trends and leveraging those trends through technological excellence
Slide 10: AMG Group Financial Performance – Annual
AMG GROUP FINANCIAL PERFORMANCE – ANNUAL 2016 2015 % CHANGE Gross Profit ($M) $186.8 $160.0 17% EBITDA ($M) $100.7 $75.6 33% Operating Cash Flow ($M) $79.2 $76.3 4% ROCE 18.8% 12.0% 57% Earnings per Share $1.32 $0.40 230% Dividend per Share €0.27 €0.21 29% Note: OCF metric is prior to one-time $23m
Slide 11: 5 Year Trend – EBITDA & ROCE
5 YEAR TREND – EBITDA & ROCE EBITDA (IN MILLIONS OF US DOLLARS) • 2016 EBITDA is up 33% $100.7 due to product mix and $83.5 $85.7 operational improvements $72.6 $75.6 in Critical Materials as well FY ‘16 EBITDA as a very strong UP 33% VERSUS FY ‘15 performance by Engineering due to an increase in de
Slide 12: 5 Year Trend – Net Debt & Operating Cash Flow
5 YEAR TREND – NET DEBT & OPERATING CASH FLOW NET DEBT (CASH) (IN MILLIONS OF US DOLLARS) • Net debt: $7.3 million o $186.9 million reduction of net $194.2 debt since December 31, 2012 $160.5 o Net Debt to LTM EBITDA: 0.07x $187M $87.8 REDUCTION • AMG’s primary debt IN NET DEBT facility is a $400 mi
Slide 13: Q1 2017 Financial Highlights
Q1 2017 FINANCIAL HIGHLIGHTS REVENUE (IN MILLIONS OF US DOLLARS) GROSS PROFIT * (IN MILLIONS OF US DOLLARS) $258.0 $53.3 $52.5 $248.3 $247.5 $237.4 $237.9 $46.3 $44.2 $43.0 9% 19% YoY YoY Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 EBITDA (IN MILLIONS OF US DOLLARS) ORDER INTAKE (IN
Slide 14: Lithium Project Status
LITHIUM PROJECT STATUS Status Construction AMG approved construction of lithium concentrate plant at the AMG Approval Mibra mine, with annual production of 90,000 tons Complete EPC Contract AMG awarded EPC contract to Outotec (Finland) for turnkey delivery of lithium concentrate plant Complete Award
Slide 15: AMG Lithium – Project Strengths
AMG LITHIUM – PROJECT STRENGTHS 1) Existing management and mining infrastructure – not a new mine project 2) Strong understanding of the mine geology 3) Mining infrastructure already in place and operational 4) Ore extraction and crushing costs absorbed by profitable tantalum operation 5) Spodumene
Slide 16: First Spodumene Plant
FIRST SPODUMENE PLANT Grinding / Mag Separation Feed Flotation Filtration 16
Slide 17: Lithium Resource Map
LITHIUM RESOURCE MAP Tailings Volta Grande A 17.7M tons Volta Grande C 6.6M tons 17
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