Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Q3 2019 Earnings Presentation
13 slides from Amg Critical Materials's earnings presentation, Oct 31, 2019
Slide 1: Enabling CO2 Reduction: Investor Presentation Third Quarter 2019
ENABLING CO2 REDUCTION INVESTOR PRESENTATION THIRD QUARTER 2019 AMG ADVANCED METALLURGICAL GROUP N.V.
Slide 2: Cautionary Note
CAUTIONARY NOTE THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION AND IS BEING PROVIDED SOLELY FOR INFORMATION PURPOSES 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 PU
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS NET (LOSS) INCOME ATTRIBUTABLE TO SHAREHOLDERS REVENUE (IN MILLIONS OF US DOLLARS) (IN MILLIONS OF US DOLLARS) $29.9 $29.0 $346.5 $328.1 $344.4 $303.6 $269.9 REVENUE $14.8 ADJUSTED DECREASE NET INCOME DUE TO A WAS A ($2.4) SIGNIFICANT MILLION LOSS METAL PRICE IN Q3 ‘19 DECLINE (
Slide 4: AMG Critical Materials Financial Highlights
AMG CRITICAL MATERIALS FINANCIAL HIGHLIGHTS GROSS PROFIT EXCLUDING EXCEPTIONAL ITEMS REVENUE & EBITDA (IN MILLIONS OF US DOLLARS) (IN MILLIONS OF US DOLLARS) $219.7 $221.5 $228.6 $52.9 $50.2 $198.5 $45.7 $165.2 REVENUE LOWER PRICES $40.8 $41.5 DECREASED OFFSET BY LARGELY DUE VOLUME $31.2 $22.6 $20.4
Slide 5: AMG Technologies Financial Highlights
AMG TECHNOLOGIES FINANCIAL HIGHLIGHTS REVENUE & EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT (IN MILLIONS OF US DOLLARS) $123.0 $36.3 $117.9 $29.5 $26.8 $26.2 $108.4 $21.0 $105.1 $104.6 REVENUE 2% $21.3 DECREASED $18.3 $19.3 YoY $15.6 3% VS. Q3 ‘18 $11.4 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q3 '18
Slide 6: Key Corporate Income Statement Items
KEY CORPORATE INCOME STATEMENT ITEMS SG&A EXPENSES (IN MILLIONS OF US DOLLARS) NET FINANCE COSTS (IN MILLIONS OF US DOLLARS) $37.4 $9.2 $35.6 $35.1 $33.8 $35.1 $6.9 $6.8 $16.1 $15.9 $19.0 $15.9 $15.5 SG&A $5.9 EXPENSES $4.7 25% DECREASED BY 2% VS. YoY $19.6 $21.5 $17.9 $19.6 $16.1 Q3 ‘18 Q3 '18 Q4 '
Slide 7: Cash Flow and Working Capital
CASH FLOW AND WORKING CAPITAL OPERATING CASH FLOW (IN MILLIONS OF US DOLLARS) NET DEBT (CASH) (IN MILLIONS OF US DOLLARS) $50.7 $154.0 SHARE LOWER BUYBACK $108.7 PROFITABILITY PROGRAM, $23.1 LED TO A DIVIDENDS, & DECREASE IN CAPITAL $6.9 OPERATING EXPENDITURES CASH FLOW $32.3 INCREASED NET DEBT $14.
Slide 8: Critical Materials – Quarterly Revenue Drivers
CRITICAL MATERIALS – QUARTERLY REVENUE DRIVERS SEGMENT Q3 ‘19 REV Q3 ‘18 REV VOLUME PRICE ($M) ($M) • AMG Critical Material’s total revenue decreased Vanadium $23.7 $58.8 in the third quarter by $54.4 million, or 25%, to Aluminum $46.6 $53.4 $165.2 million • The decrease was Superalloys $24.6 $21.9
Slide 9: Appendix
APPENDIX 9
Slide 10: Critical Materials – Average Quarterly Market Prices
CRITICAL MATERIALS – AVERAGE QUARTERLY MARKET PRICES Q3 ‘19 VS. Q3 ‘19 VS. Q3 Q4 Q1 Q2 Q3 MATERIALS Q3 ‘18 % Q2 ‘19 % 2018 2018 2019 2019 2019 CHANGE CHANGE Ferrovanadium ($/lb) 1 $40.03 $52.64 $39.75 $21.38 $15.36 (62%) (28%) Molybdenum ($/lb) $11.86 $12.04 $11.82 $12.17 $11.84 – (3%) Nickel ($/MT)
Slide 11: Critical Materials – Full Year and Current Spot Prices
CRITICAL MATERIALS – FULL YEAR AND CURRENT SPOT PRICES AVG AVG OCT 28, 2019 AVG ‘18 VS. AVG SPOT VS. AVG ‘18 MATERIALS 2017 2018 SPOT ‘17 % CHANGE % CHANGE Ferrovanadium ($/lb) 1 $15.41 $38.70 $12.25 151% (68%) Molybdenum ($/lb) $8.25 $11.94 $9.85 45% (18%) Nickel ($/MT) $10,408 $13,118 $16,678 26%
Slide 12: Net (Loss) Income to EBITDA Reconciliation
NET (LOSS) INCOME TO EBITDA RECONCILIATION (000’s USD) Q3 2019 Q3 2018 YTD 2019 YTD 2018 Net (loss) income (18,021) 29,552 (34,503) 65,110 Income tax expense (benefit) 1,541 9,961 (6,057) 39,122 Net finance cost * 6,276 4,789 21,706 16,110 Equity-settled share-based 1,363 1,605 4,092 4,610 payment t
Slide 13: Net (Loss) Income Adjusted for Non-Cash Impairments
NET (LOSS) INCOME ADJUSTED FOR NON-CASH IMPAIRMENTS (000’s USD) Q3 2019 Q3 2018 YTD 2019 YTD 2018 Net (loss) income (18,021) 29,552 (34,503) 65,110 Inventory cost adjustment, net of tax 15,450 – 56,476 – Asset impairment expense, net of tax 197 2,876 3,645 2,197 Adjusted net (loss) income (2,374) 32
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