Amg Critical Materials N.v. · EURONEXT:AMG

Amg Critical Materials — AMG Advanced Metallurgical Group — Q4 2019 Earnings Presentation

13 slides from Amg Critical Materials's earnings presentation, February 2020

  1. Slide 1: Enabling CO2 Reduction – Investor Presentation Fourth Quarter 2019

    ENABLING CO2 REDUCTION INVESTOR PRESENTATION FOURTH QUARTER 2019 AMG ADVANCED METALLURGICAL GROUP N.V.

  2. 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

  3. Slide 3: Financial Highlights

    FINANCIAL HIGHLIGHTS NET (LOSS) INCOME ATTRIBUTABLE TO SHAREHOLDERS REVENUE (IN MILLIONS OF US DOLLARS) (IN MILLIONS OF US DOLLARS) $29.0 $344.4 $346.5 $303.6 $269.9 $268.6 REVENUE $14.8 ADJUSTED DECREASE NET INCOME DUE TO A WAS A ($5.8) SIGNIFICANT MILLION LOSS METAL PRICE ($14.2) IN Q4 ‘19 DECLINE

  4. 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) $221.5 $228.6 $50.2 $198.5 $45.7 $165.2 $170.2 REVENUE LOWER PRICES $41.5 DECREASED OFFSET BY VOLUME $31.2 LARGELY DUE $22.6 $21.7 INCREASES I

  5. 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 $117.9 $36.3 $105.1 $104.6 $98.4 $29.5 $26.2 $21.0 $22.2 REVENUE 39% $21.3 $19.3 DECREASED YoY $15.6 20% VS. Q4 ‘18 $11.4 $9.7 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q4 '18

  6. 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) $9.2 $37.4 $35.1 $37.2 $35.1 $33.8 $6.9 $6.8 $15.9 $17.4 $5.9 $6.1 $19.0 $15.9 $15.5 SG&A EXPENSES 12% INCREASED BY 6% VS. YoY $21.5 $17.9 $19.6 $19.8 $16.1 Q4 ‘18 Q4 '18 Q1 '

  7. 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 $55.5 $162.9 $154.0 SHARE BUYBACK $108.7 PROGRAM, 10% DIVIDENDS, & CAPITAL $6.9 YoY EXPENDITURES INCREASED NET DEBT $14.6 ($4.9) ($11.0) Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19

  8. Slide 8: Critical Materials – Quarterly Revenue Drivers

    CRITICAL MATERIALS – QUARTERLY REVENUE DRIVERS SEGMENT Q4 ‘19 REV Q4 ‘18 REV VOLUME PRICE ($M) ($M) • AMG Critical Material’s total revenue decreased Vanadium $37.3 $61.0 in the fourth quarter by $51.3 million, or 23%, to Aluminum $32.1 $38.0 $170.2 million • The decrease was Chrome $33.5 $38.7 larg

  9. Slide 9: Appendix

    APPENDIX 9

  10. Slide 10: Critical Materials – Average Quarterly Market Prices

    CRITICAL MATERIALS – AVERAGE QUARTERLY MARKET PRICES Q4 ‘19 VS. Q4 ‘19 VS. Q4 Q1 Q2 Q3 Q4 MATERIALS Q4 ‘18 % Q3 ‘19 % 2018 2019 2019 2019 2019 CHANGE CHANGE Ferrovanadium ($/lb) 1 $52.64 $39.75 $21.38 $15.36 $11.50 (78%) (25%) Molybdenum ($/lb) $12.04 $11.82 $12.17 $11.84 $9.63 (20%) (19%) Nickel ($

  11. Slide 11: Critical Materials – Full Year and Current Spot Prices

    CRITICAL MATERIALS – FULL YEAR AND CURRENT SPOT PRICES AVG AVG FEB 21, 2020 AVG ‘19 VS. AVG SPOT VS. AVG ‘19 MATERIALS 2018 2019 SPOT ‘18 % CHANGE % CHANGE Ferrovanadium ($/lb) 1 $38.70 $22.00 $13.93 (43%) (37%) Molybdenum ($/lb) $11.94 $11.43 $9.85 (4%) (14%) Nickel ($/MT) $13,118 $13,933 $12,438 6

  12. Slide 12: Net (Loss) Income to EBITDA Reconciliation

    NET (LOSS) INCOME TO EBITDA RECONCILIATION (000’s USD) Q4 2019 Q4 2018 FY 2019 FY 2018 Net (loss) income (14,083) 29,671 (48,586) 94,781 Income tax expense (benefit) 938 5,849 (5,119) 44,971 Net finance cost * 5,920 6,839 27,626 22,949 Equity-settled share-based 1,422 2,889 5,514 7,499 payment trans

  13. Slide 13: Net (Loss) Income Adjusted for Non-Cash Impairments

    NET (LOSS) INCOME ADJUSTED FOR NON-CASH IMPAIRMENTS (000’s USD) Q4 2019 Q4 2018 FY 2019 FY 2018 Net (loss) income (14,083) 29,671 (48,586) 94,781 Inventory cost adjustment, net of tax 8,966 – 65,442 – Asset impairment expense, net of tax (696) 87 2,949 2,284 Adjusted net (loss) income (5,813) 29,758

AMG Advanced Metallurgical Group — Q4 2019 Earnings Presentation on 6ix