Amg Critical Materials N.v. · EURONEXT:AMG

Amg Critical Materials — AMG Advanced Metallurgical Group — Q2 2019 Earnings Presentation

13 slides from Amg Critical Materials's earnings presentation, August 2019

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

    ENABLING CO2 REDUCTION INVESTOR PRESENTATION SECOND 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 INCOME ATTRIBUTABLE TO SHAREHOLDERS REVENUE (IN MILLIONS OF US DOLLARS) (IN MILLIONS OF US DOLLARS) $329.3 $328.1 $344.4 $346.5 $29.9 $29.0 $303.6 $17.3 $14.8 ADJUSTED NET INCOME 8% WAS $6.0 YoY MILLION IN Q2 ‘19 ($31.1) Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q2 '18 Q3 '18 Q4 '1

  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) $223.8 $219.7 $221.5 $228.6 $51.5 $52.9 $50.2 $198.5 $45.7 $40.8 $41.5 REVENUE $36.6 $31.2 $22.6 56% DECREASED 11% VS. Q2 ‘18 YoY $12.4 Q2 '18

  5. Slide 5: AMG Technologies Financial Highlights

    AMG TECHNOLOGIES FINANCIAL HIGHLIGHTS REVENUE & EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT EXCLUDING EXCEPTIONAL ITEMS (IN MILLIONS OF US DOLLARS) $123.0 $36.8 $117.9 $31.2 $31.3 $27.6 $108.4 REVENUE $23.4 $105.5 $105.1 WAS STABLE $21.3 15% $19.3 AT $105.1M YoY $18.3 $14.2 VS. $105.5M $11.4 IN

  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) $37.2 $37.4 $9.2 $35.6 $35.1 $33.8 $6.9 $6.8 $16.3 $16.1 $15.9 $19.0 $15.9 SG&A $5.3 EXPENSES $4.7 28% DECREASED YoY $20.9 $19.6 $21.5 BY 9% VS. $17.9 $16.1 Q2 ‘18 Q2 '18 Q3 '

  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 $108.7 SHARE BUYBACK $23.1 PROGRAM, DIVIDENDS, & 821% CAPITAL $6.9 $34.8 $32.3 EXPENDITURES YoY INCREASED NET $14.6 DEBT ($1.2) ($11.0) ($0.5) Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q

  8. Slide 8: Critical Materials – Quarterly Revenue Drivers

    CRITICAL MATERIALS – QUARTERLY REVENUE DRIVERS SEGMENT Q2 ‘19 REV Q2 ‘18 REV VOLUME PRICE ($M) ($M) • AMG Critical Material’s total revenue decreased in Vanadium $36.6 $55.9 the second quarter by $25.3 million, or 11%, to $198.5 million Aluminum $50.2 $55.1 • The decrease was largely driven by lower

  9. Slide 9: Appendix

    APPENDIX 9

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

    CRITICAL MATERIALS – AVERAGE QUARTERLY MARKET PRICES Q2 ‘19 VS. Q2 ‘19 VS. Q2 Q3 Q4 Q1 Q2 MATERIALS Q2 ‘18 % Q1 ‘19 % 2018 2018 2018 2019 2019 CHANGE CHANGE Ferrovanadium ($/lb) $34.28 $39.68 $53.80 $39.96 $21.82 (36%) (45%) Molybdenum ($/lb) $11.59 $11.86 $12.04 $11.82 $12.17 5% 3% Nickel ($/MT) $1

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

    CRITICAL MATERIALS – FULL YEAR AND CURRENT SPOT PRICES AVG AVG JUL 29, 2019 AVG ‘18 VS. AVG SPOT VS. AVG ‘18 MATERIALS 2017 2018 SPOT ‘17 % CHANGE % CHANGE Ferrovanadium ($/lb) $15.30 $38.95 $16.00 155% (59%) Molybdenum ($/lb) $8.25 $11.94 $12.00 45% 1% Nickel ($/MT) $10,408 $13,118 $13,988 26% 7% A

  12. Slide 12: Net Income to EBITDA Reconciliation

    NET INCOME TO EBITDA RECONCILIATION (000’s USD) Q2 2019 Q2 2018 YTD 2019 YTD 2018 Net (loss) income (31,185) 17,225 (16,482) 35,558 Income tax (benefit) (13,474) 19,456 (7,598) 29,161 expense Net finance cost * 6,578 4,743 15,430 11,321 Equity-settled share-based 1,611 1,371 2,729 3,005 payment tran

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

    NET INCOME ADJUSTED FOR NON-CASH IMPAIRMENTS (000’s USD) Q2 2019 Q2 2018 YTD 2019 YTD 2018 Net (loss) income (31,185) 17,225 (16,482) 35,558 Inventory cost adjustment, net of tax 33,690 – 41,026 - Asset impairment expense, net of tax 3,448 (679) 3,448 (679) Adjusted net income 5,953 16,456 27,992 34

AMG Advanced Metallurgical Group — Q2 2019 Earnings Presentation on 6ix