Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Shareholder Meeting (May 2013)
46 slides from Amg Critical Materials's shareholder meeting presentation, May 3, 2013
Slide 1: Annual General Meeting
Annual General Meeting May 3, 2013 Amsterdam, The Netherlands
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: Contents
Contents Critical Raw Materials Organization Management Markets Operations Sustainability Outlook 3
Slide 4: Critical Raw Materials
Critical Raw Materials 4
Slide 5: Critical Raw Materials
Critical Raw Materials The EU identified 14 critical raw materials* to the European economy – focusing on two determinants – economic importance and supply risk Materials mined or processed by AMG, or melted by AMG vacuum systems Highlighted materials melted REE by AMG vacuum systems Nb Sb C Ta Cr
Slide 6: Price Trends – Q1 2011 to Q1 2013
Price Trends – Q1 2011 to Q1 2013 Market Price 2012 vs. Q1 2013 vs. 50% Materials 2011 Q4 2012 Antimony -13% -10% Chrome -11% -7% 40% Graphite -1% 0% Molybdenum -18% 2% Nickel -23% 2% 30% Silicon -19% -2% Tantalum -9% -2% Vanadium 1% 5% 20% Titanium -26% 3% Average -13% -1% 10% 0% 2011-Q1 2011-Q2 20
Slide 7: Organization
Otsanization=™ ia —
Slide 8: Three Business Units – Core Competencies
Three Business Units – Core Competencies AMG Processing Upgrading and Recycling AMG AMG Engineering Mining Vacuum Furnaces Mining and and Systems Concentrating 8
Slide 9: Processed Materials
Processed Materials AMG Processing Upgrading and Recycling High Alloyed Steels Rare REE Earth AMG AMG Engineering Mining Vacuum Furnaces Mining and and Systems Concentrating Glasses Feldspar 9
Slide 10: Countries One Company
AMG 515 One 3,275 Countries Company Employees 3Continents Segments 10
Slide 11: AMG Global Locations
AMG Global Locations area enlarged above Offices 11
Slide 12: Management
Management 12
Slide 13: AMG Management
AMG Management Chairman & Chief Executive Officer Dr. Heinz Schimmelbusch Compliance & Legal Human Resources Corporate Development & Safety, Health & Investor Relations Environmental (SHE) Chief Operating Officer Chief Financial Officer Mr. Eric Jackson Mrs. Amy Ard AMG Processing AMG Mining AMG Eng
Slide 14: Markets
Markets 14
Slide 15: Markets – AMG Processing
Markets – AMG Processing ■ AMG Processing - the conversion businesses of Advanced Materials ■ Aluminum master alloys ■ Ferrovanadium and alloys ■ Titanium alloys and coatings ■ Superalloys Markets 15
Slide 16: Markets – AMG Mining
Markets – AMG Mining ■ AMG Mining - mine based rare metal & material value chains: ■ Tantalum ■ Antimony ■ Graphite and silicon businesses of Graphit Kropfmühl Markets 16
Slide 17: Markets – AMG Engineering
Markets – AMG Engineering ■ AMG Engineering ■ Metallurgy ■ Heat Treatment Systems and Services Markets 17
Slide 18: Markets – AMG Engineering Globally Installed Customers
Markets – AMG Engineering Globally Installed Customers Asia > 650 systems installed Europe > 750 systems installed North America > 130 systems installed Russia Canada Kazakhstan U.S.A. South Korea Turkey China Egypt Japan Mexico India Taiwan Thailand Brazil Indonesia Australia South Africa Argentina
Slide 19: Markets – Serving The Big Trends
Markets – Serving The Big Trends Mobility – Aerospace and Automobile Thermal Barrier Coatings (TBC) Clean Energy and Energy Savings AMG Processing Ti-Alloys, Al master alloys, and V alloys Upgrading and for light-weight materials Recycling Communications Ta mining and concentrate for Ta
Slide 20: Markets – AMG’s Selective World No.1 Positions
Markets – AMG’s Selective World No.1 Positions #1 AMG Processing #1 AMG Mining #1 AMG Engineering World’s largest World’s largest World’s largest Vanadium recycling Tantalum mining Thermal Barrier facility in the U.S. complex in Brazil Coatings (TBC) High purity Chrome furnaces for turbine M
Slide 21: Operations
Operations 21
Slide 22: Operations Update
Operations Update AMG is focused on improving operational performance and increasing cash flow Objective Progress Update Reduce SG&A ■ Q1‘13 SG&A decreased 8% compared to Q1‘12 ■ AMG Engineering Q1‘13 Gross Margin improved to 25%, Improve Gross from 22% in Q1’12 Margin ■ AMG Mining Q1‘13 Gross Margi
Slide 23: Operating Cash Flow
Operating Cash Flow AMG has improved Operating Cash Flow in each of the last 4 years Cash from Operating Activities $65,000 $55,000 $45,000 $35,000 $25,000 $15,000 $5,000 $(5,000) 2009 2010 2011 2012 23
Slide 24: Sustainability
Sustainability 24
Slide 25: Sustainability – AMG Approach
Sustainability – AMG Approach Economic Growth Socio Eco Efficiency -Economic Sustainability Environmental Social Progress Socio- Stewardship Environmental 25
Slide 26: Sustainability – 2012 Highlights
Sustainability – 2012 Highlights SCOPE SAFETY ■ Increased from 23 to 33 locations ■ No Fatalities ■ Successfully integrated GK facilities ■ Continued LTI Rate & Severity Improvement AMG Lost Time Incident Rate 4.2 3.3 3.0 2.3 2009 2010 2011 2012 GREENHOUSE GAS EMISSIONS ■ Absolute increase due to si
Slide 27: Sustainability – Life Cycle Assessment
Sustainability – Life Cycle Assessment Primary Mining and Processing ‡ Base Generates 78 kg CO2 Technology /kg V 50,000 mt CO2/year FeV Enables 90,000 mt Production CO2 Savings/Year, Contributing Savings of Almost Twice of Own Emissions 140,000 mt CO2/year Pyrometallurgical Recycling Enhanced Reduce
Slide 28: Outlook
Outlook 28
Slide 29: Outlook
Outlook AMG Processing AMG Mining AMG Engineering ■ AMG’s markets, particularly for the European centric businesses, remain challenging ■ Cost reductions and operational improvements targeted to increase EBITDA and cash flow in 2013 29
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Slide 31: Annual General Meeting Financial Presentation
Annual General Meeting Financial Presentation May 3, 2013 Amsterdam, The Netherlands
Slide 32: 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 33: Agenda
Agenda ■ 2012 Financial Review ■ Consolidated Results ■ Capital Base ■ Key Products and End Markets ■ Segment Results ■ Q1 2013 Financial Review 3
Slide 34: 2012 Financial Review
2012 Financial Review 4
Slide 35: Financial Highlights
Financial Highlights Revenue Gross Profit 2012: $1,215.6 (in USD millions) 2012: $196.5 (in USD millions) $1,351.3 $238.0 $1,215.6 $196.5 $990.5 $165.6 $178.6 $867.4 - - - - - - - - 2009 2010 2011 2012 2009 2010 2011 2012 EBITDA Adjusted EPS 2012: $84.8 (in USD millions) ■ 2012 full year EPS: $0.09
Slide 36: Capital Base
Capital Base Cash and Debt Cash Debt ( in USD millions) ■ Net debt: $194.2 million ■ Debt to capitalization: 0.59x ■ Net Debt to LTM EBITDA: 2.29x ■ Revolver availability: $50.8 million ■ Total liquidity: $172.4 million $315.8 $268.6 $237.1 $203.8 ■ AMG’s primary debt facility is a $377 $121.6 milli
Slide 37: Key Products
Key Products Revenue Gross Profit ( in USD millions) ( in USD millions) 2012: $1,215.6 2012: $196.5 7
Slide 38: End Markets
End Markets Revenue Gross Profit ( in USD millions) ( in USD millions) 2012: $1,215.6 2012: $196.5 Aerospace Aerospace 32.7% 38.2% Infrastructure 14.1% Energy Infrastructure Energy 15.8% 15.0% 14.1% Specialty Metals Specialty Metals & Chemicals & Chemicals 39.1% 31.0% Aerospace is AMG’s highest marg
Slide 39: Advanced Materials
Advanced Materials Financial Summary ■ 2012 revenue down 9% from 2011 Revenue EBITDA $100.0 ■ Decreases in average selling prices and ( in USD millions) $95.0 $1,000.0 $90.0 $872.0 $85.0 volumes for antimony and aluminium $791.3 $80.0 $800.0 $75.0 $70.0 master alloys $600.0 $65.0 $60.0 ■ Decreases i
Slide 40: Engineering Systems
Engineering Systems Financial Summary 2012 revenue down 13% from 2011 $400.0 Revenue EBITDA ( in USD millions) $350.0 $76.0 $71.0 Remelting furnaces up 16% $313.8 Heat Treatment Services up 8% $66.0 $300.0 $273.8 $61.0 DSS furnaces down 83% $56.0 $250.0 $51.0 $46.0 $200.0 $34.0 $41.0 $36.0
Slide 41: Graphit Kropfmühl
Graphit Kropfmühl Financial Summary 2012 revenue down 9% from 2011 $200.0 Revenue EBITDA ( in USD millions) $180.0 $165.5 $46.0 Lower silicon metal and natural $160.0 $150.5 $41.0 graphite pricing and volume $140.0 $36.0 $120.0 $31.0 2012 gross margin 15% of revenue $25.8 $100.0 $26.0 Lower
Slide 42: Q1 2013 Financial Review
Q1 2013 Financial Review 12
Slide 43: New Business Units, Products and Markets
New Business Units, Products and Markets AMG Processing AMG Mining AMG Engineering AMG’s conversion and Integrated AMG’s mine AMG’s vacuum systems recycling based businesses based businesses and services business High-value metals & alloys Critical raw materials Capital equipment & servi
Slide 44: Q1 2013 Financial Highlights
Q1 2013 Financial Highlights ■ Revenue: $296.5 million ■ 8% decrease from the same period in 2012 ■ LTM revenue: was $1,188.1 million ■ EBITDA: $22.2 million ■ 1% increase over the same period in 2012 ■ LTM EBITDA: $85.1 million ■ EPS: $0.09 ■ 31% decrease from the same period in 2012 ■ Cash Flow fr
Slide 45: Q1 2013 Financial Highlights
Q1 2013 Financial Highlights ■ AMG Processing: ■ Revenue: $153.1 million ■ EBITDA: $8.7 million ■ AMG Engineering ■ Revenue: $60.5 million ■ EBITDA $5.6 million ■ AMG Mining ■ Revenue: $82.9 million ■ EBITDA: $7.9 million ■ As of March 31, 2013 ■ Cash: $106.7 million ■ Net debt: $200.7 million ■ Deb
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