Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (March 2013)
24 slides from Amg Critical Materials's investor presentation, March 2013
Slide 1: Investor Presentation March 2013
Investor Presentation March 2013
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: Overview
Overview Listed: NYSE-Euronext Amsterdam: AMG Founded: 2006 LTM Revenues: $1,215.6M LTM EBITDA: $84.8M Employees: 3,275 Facilities: Netherlands, Germany, France, Czech Republic, Poland, UK, USA, Brazil, Mexico, China, India, Sri Lanka, Turkey, Zimbabwe, Mozambique Market cap: €182M ($235M) Shares ou
Slide 4: New Business Units, Products and Markets
New Business Units, Products and Markets AMG Processing AMG Engineering AMG Mining AMG’s conversion and Consistent with the New reporting segment effective on January 1, 2013 recycling based businesses segment in 2012 Integrated AMG’s mine based business High-value metals & alloys Capita
Slide 5: Recent Developments – Segment Realignment
Recent Developments – Segment Realignment ■ AMG reorganized its specialty metals businesses into three operating units based upon their core competency effective January 1 2013 ■ More effective operational management and functional responsibility ■ Increased reporting transparency ■ AMG Processing -
Slide 6: Recent Developments – Operations Goals
Recent Developments – Operations Goals AMG is committed to improving operational performance and cash flow generation ■ Process begun in Q3 with implementation of a clear and direct management structure throughout the organization ■ Objectives ■ Reduce SG&A by 5% ■ Improve Gross Margin by 2.5% and l
Slide 7: Recent Developments – Operations Update
Recent Developments – Operations Update AMG is focused on improving operational performance and increasing cash flow ■ Revised management structure in H2 2012 ■ Implemented a number of operational improvement initiatives in Q4 ‘12 Objective Progress Update Reduce SG&A ■ Q4 ‘12 SG&A decreased 20% com
Slide 8: Critical Raw Materials Matrix
Critical Raw Materials Matrix ■ USA, Germany, UK and EU have each identified critical materials – common factors include supply risks, economic importance and technology demand ■ AMG mines or processes 13 of those critical materials 8
Slide 9: Financial Highlights
Financial Highlights 9
Slide 10: Financial Highlights
Financial Highlights Revenue Gross Profit 2012: $1,215.6 (in USD millions) 2012: $196.5 (in USD millions) $41.4 $275.2 $50.5 $53.4 $54.0 $324.0 $319.6 $47.7 Down $308.6 $296.9 Down 18% 11% YoY YoY - - - - - Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 EBITDA Adjusted EPS 2012: $84.8 (
Slide 11: 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 $309.9 $315.8 $305.9 $287.6 $268.6 $121.6 ■ AMG’s primary debt facility is a $37
Slide 12: Key Products
Key Products Revenue Gross Profit ( in USD millions) ( in USD millions) 2012: $1,215.6 2012: $196.5 12
Slide 13: 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 + 3% Energy - 50% vs.
Slide 14: Advanced Materials
Advanced Materials Financial Summary ■ Q4 ‘12 revenue down 12% from Q4 ‘11 Revenue EBITDA ■ Tantalum up 61% ( in USD millions) $250.0 $216.5 $211.7 $200.0 $198.7 $189.2 $21.0 ■ Ferrovanadium down 30% $174.0 $14.5 $16.0 ■ Chrome down 26% $13.7 $150.0 $12.1 $10.0 $11.0 ■ Q4 ‘12 gross margin 13% of rev
Slide 15: Engineering Systems
Engineering Systems Financial Summary Q4 ‘12 revenue down 5% from Q4 ‘11 $90.0 ( in USD millions) Casting and sintering furnaces up 32% $20.0 Revenue EBITDA $80.0 $72.9 $68.0 $71.1 $69.2 Remelting furnaces up 1% $70.0 $65.4 $15.0 $60.0 $11.8 DSS furnaces down 91% $50.0 Heat Treatment furna
Slide 16: Graphit Kropfmühl
Graphit Kropfmühl Financial Summary Q4 ‘12 revenue down 14% from Q4 ‘11 ( in USD millions) $50.0 Revenue EBITDA Silicon metal down 20% $45.0 $42.5 $40.0 $37.0 $39.5 $10.0 Natural graphite down 2% $36.5 $35.0 $31.9 $7.0 $30.0 Q4 ‘12 gross margin 6% of revenue $5.4 $25.0 $5.2 Lower shipments
Slide 17: Outlook
Outlook
Slide 18: Outlook
Outlook AMG Processing AMG Engineering AMG Mining Improved margins and Slight growth expected in Long term tantalum supply earnings through cost 2013 contract will drive growth reductions Backlog will be stable Silicon metal and natural Aerospace alloys demand is Heat Treatment Service
Slide 19: Appendix
Appendix 19
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet ($’000) Actual As of 31-December-11 31-December-12 Fixed assets 263.6 288.3 Goodwill and intangibles 38.1 38.7 Other non-current assets 63.4 67.2 Inventories 228.9 211.5 Receivables 188.1 177.2 Other current assets 39.1 43.4 Cash 79.6 121.6 TOTAL ASSETS 900.8
Slide 21: Consolidated Income Statement
Consolidated Income Statement Income Statement ($’000) Actual For the three months ended 31-December-11 31-December-12 Revenue 308.6 275.2 Cost of sales 258.1 233.8 Gross profit 50.5 41.4 Selling, general & admin. 42.5 34.0 Asset impairment & restructuring (1.9) 4.9 Environmental 5.5 1.2 Other incom
Slide 22: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Cash Flow Statement ($’000) Actual For the year ended 31-December-11 31-December-12 EBITDA 110.1 84.8 +/- Change in operating assets/liabilities (13.8) 8.8 -Interest paid, net (12.1) (18.6) Other operating cash flow (5.0) 3.2 Cash flows from operations before tax
Slide 23: AMG Global Locations
AMG Global Locations area enlarged above 23
Slide 24: Slide 24
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