Ferroglobe Plc · NASDAQ:GSM
Ferroglobe — Q2 2017 Earnings Presentation
21 slides from Ferroglobe's earnings presentation, Aug 30, 2017
Slide 1: Advancing Materials Innovation Second Quarter 2017
Advancing Materials Innovation NASDAQ: GSM Second Quarter 2017
Slide 2: Forward-Looking Statements and non-IFRS Financial Metrics
Forward-Looking Statements and non-IFRS Financial Metrics This presentation contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking
Slide 3: Table of Contents
Table of Contents Q2 2017 OverviewSelected Financial Highlights
Slide 4: Q2 2017 Overview
Q2 2017 Overview Pedro Larrea, Chief Executive Officer
Slide 5: Q2 2017 results exceeded expectations; first net profit since merger
Q2 2017 results exceeded expectations; first net profit since merger Volumes stabilizing in core products (Volume change vs Q1 2017)SiM +9.4%Si alloys -5.9%Mn alloys +1.1% Capturing benefits of improved market environment (ASP increase vs Q1 2017)SiM +6.3%Si alloys +7.7%Mn alloys +0.8% Optimized bus
Slide 6: Update on corporate matters
Source: Company information Antidumping and Countervailing Duties Sale of Spanish Hydro-Electric Assets Accounts Receivable Securitization Update on corporate matters The U.S. Department of Commerce has issued a preliminary determination imposing countervailing duties ranging from 3.69% to 120% on s
Slide 7: Diversified portfolio provides exposure to improved pricing across key products
Diversified portfolio provides exposure to improved pricing across key products Silicon-BasedAlloys26% Mn-Based Alloys20% Other11% Aluminum Silicones Solar Foundry Specialty Steel Steel Qtr / Qtr Revenue Growth by Product Other Source: Company informationEnd market data reflects FY 2016 sales Busine
Slide 8: Q2 2017 revenues up 8% vs previous quarter
Q2 2017 revenues up 8% vs previous quarter Improvement in prices and volumes for silicon metal as well as prices for silicon-based alloys are the key drivers in the quarter
Slide 9: Silicon metal snapshot
Silicon metal snapshot Volume Trends Sequential Quarter Product EBITDA Contribution ($m) Commentary Silicon metal EBITDA more than doubled due to higher realized prices and increased volumes from new orders, especially in North AmericaSilicon metal prices:Continue to increase in North America as a r
Slide 10: Silicon-based alloys snapshot
Silicon-based alloys snapshot Volume Trends Commentary Silicon-based alloys cost increase attributable to technical issues at Bridgeport facility and the conversion of one furnace at SabonFerrosilicon prices remain at historically strong levels and gained traction during August, especially in North
Slide 11: Manganese-based alloys snapshot
Manganese-based alloys snapshot Commentary Manganese-based alloys faced with pricing pressure, offset with lower manganese ore costs from inventoryMarket prices came down in Q2 2017 from historical highs. Prices are gaining momentum again in Q3 2017Volumes were up slightly compared to Q1 2017 – with
Slide 12: Pricing momentum continues to drive performance
Pricing momentum continues to drive performance Ferroglobe Actions Leading to Results Commercial strategy has captured the recovery of the market Continue to optimize business platform: Actions underway to optimize production facilities: minimizing the impact of idled facilities: streamlining produc
Slide 13: Reported EBITDA of $36.8 million; Adjusted EBITDA of $43.9 million
Reported EBITDA of $36.8 million. Adjusted EBITDA of $43.9 million for the quarter +42% vs reported EBITDA of $30.9 million in Q1 2017 Net profit of $1.0 million, or $0.02 per share on a fully diluted basis. Adjusted net profit attributable to the parent of $6.0 million, or $0.05 per share on a full
Slide 14: Selected Financial Highlights
Selected Financial Highlights Joe Ragan, Chief Financial Officer
Slide 15: Q2 2017 key performance indicators and overview
Q2 2017 key performance indicators and overview 1 Free cash flow defined as “Net cash provided by operating activities” minus “Payments for property, plant and equipment.”Source: Company information Key performance indicators Q2 2017 Q1 2017 FY 2016 Sales ($m) 425.8 396.0 1,555.7 Operating Profit ($
Slide 16: Balance sheet summary
Balance sheet summary ($mm) Q2 20171 Q1 20171 12/31/2016 Total Assets 2,046 2,012 2,019 Net Debt2 435 407 405 Book Equity 907 903 892 Net Debt2 / Total Assets 21% 20% 20% Net Debt2 / Capital3 32% 31% 31% Financial results are unauditedNet Debt includes finance lease obligationsCapital is calculated
Slide 17: Debt evolution ($m)
Debt evolution ($m) Quarterly debt evolution
Slide 18: Working capital evolution ($m)
Working capital evolution ($m) +$26m Inventory+$10m A/R
Slide 19: Concluding remarks
Concluding remarks Improved market environment: recovery trend continues across key products Business well-positioned: cost structure and commercial strategy Positive outlook for remainder of 2017
Slide 20: Q&A
Q&A
Slide 21: Advancing Materials Innovation Second Quarter 2017
Advancing Materials Innovation NASDAQ: GSM Second Quarter 2017