Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (December 2013)
28 slides from Amg Critical Materials's investor presentation, December 2013
Slide 1: Corporate Presentation: Comments on Strategy
Corporate Presentation Comments on Strategy December 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: $1,149.6M LTM EBITDA: $80.4M LTM Operating $89.5M Cashflow: Employees: 3,137 Netherlands, Germany, France, Czech Republic, Poland, UK, Facilities: USA, Brazil, Mexico, China, India, Sri Lanka, Turkey, Zimbabwe, Mozambique Mark
Slide 4: AMG - Three Divisions
AMG - Three Divisions AMG Processing AMG Mining AMG Engineering AMG’s conversion and Integrated AMG’s mine AMG’s vacuum systems and recycling based businesses based businesses services business Metals & alloys Concentrates Capital equipment & service Coating materials for high purity m
Slide 5: Divisions – AMG Processing
Divisions – AMG Processing AMG Processing – conversion and recycling operations Value Proposition Key Products Major Applications Aluminum grain refiners and master alloys for high performance materials in aerospace, automotive and infrastructure applications Ferrovanadium for high strength, low
Slide 6: Divisions – AMG Mining
Divisions – AMG Mining AMG Mining – mine based value chains Value Proposition Key Products Major Applications Antimony trioxide and master batches for flame retardant on electronics, paints, and plastics Tantalum and niobium superalloys for aerospace engines and industrial gas turbines Conflic
Slide 7: Divisions – AMG Engineering
Divisions – AMG Engineering AMG Engineering – vacuum systems and services Value Proposition Key Products Major Applications Vacuum melting and re- melting furnaces for high- performance titanium, steel and alloys, and purification of rare metals and alloys Vacuum heat treatment furnaces and serv
Slide 8: AMG Global Locations
AMG Global Locations area enlarged above 8 Offices
Slide 9: Critical Raw Materials
Critical Raw Materials The EU identified 14 critical raw materials* to the European economy – focusing on two determinants – economic importance and supply risk Materials mined or processed by AMG, or treated in AMG vacuum REE systems Materials treated by AMG vacuum systems Nb Sb C Ta Cr Li V Mo S
Slide 10: Critical Raw Materials – Definition
Critical Raw Materials – Definition* A critical raw material is one whose risk of supply shortage and its impacts on the economy are higher compared with most of the other raw materials Demand for these raw materials is driven by the growth of developing economies and new emerging technologies
Slide 11: Core Competences
Core Competences Input Upgrading Output Cr oxide, Al powder Pyrometallurgy(smelting) Cr Metal AMG Processing V-contained spent catalyst& slag Pyrometallurgy (roasting, smelting) FeV, FeNiMo, and V chemicals Ti, V, Nb, Mo, Al Pyrometallurgy (smelting), Alloying Ti Master Alloys/Ti Alloys Al, Mn, Cr,
Slide 12: AMG's Strategy - The Complexity Issue
AMG’s Strategy - The Complexity Issue Complexity - Vertical Materials Engineering Vacuum Furnaces 96.0 MOLYBDENUM 58.7 NICKEL Complexity - Horizontal 12
Slide 13: AMG's Strategy - The Uniqueness Challenge
AMG’s Strategy - The Uniqueness Challenge High Quality of Strategy Low High Type 1 Type 2 Measurement of Strategy RARE ■ Quality of Strategy ■ Ability to generate cash over the long run ■ Ease of Assessment Ease of Assessment ■ Effort required to estimate Ongoing future performance Strategic Project
Slide 14: AMG's Strategy
AMG’s Strategy AMG is a leader in mining, processing, and upgrading critical materials for the production of high value added specialty metals and alloys. AMG focuses its strategy on building critical mass in materials where AMG possesses a significant market position and potential for long-term gro
Slide 15: Strategy - Industry Consolidation Horizontal – Aluminum
Strategy - Industry Consolidation Horizontal – Aluminum AMG acquired KB Alloys in February 2011 AMG was the market leader in Europe and South America KB Alloys was the market leader in North America Combination created the #1 global player Grain Primary Aluminum Bauxite Refiners & Aluminum A
Slide 16: Financial Highlights
Financial Highlights 16
Slide 17: Financial Highlights – 5 Year
Financial Highlights – 5 Year Revenue Gross Profit (in USD millions) (in USD millions) $238.0 $1,351.3 $1,215.6 $196.5 $1,149.6 $178.6 $178.1 $165.6 $990.5 $867.4 2009 2010 2011 2012 LTM 2009 2010 2011 2012 LTM 2013 2013 EBITDA ROCE 15.1% $110.1 (in USD millions) $84.8 11.9% $84.9 $81.6 10.5% 9.5% $
Slide 18: Financial Highlights - 2013
Financial Highlights - 2013 Revenue Gross Margin YTD September 2013 Revenue: $874.4 (in USD millions) YTD September 2013 Gross Margin: 15.6% 24.6% AMG Engineering $193.2 15.7% 11.6% AMG Mining $245.5 AMG Processing $435.7 AMG Processing AMG Mining AMG Engineering EBITDA Capital Expenditure YTD Septe
Slide 19: Capital Base
Capital Base Net Debt ■ Net debt: $163.6M ( in USD millions) ■ A reduction of $16.4 million in Q3’13 ■ Debt to capitalization: 0.67x ■ Net Debt to LTM EBITDA: 2.01x $189.0 $194.2 ■ Revolver availability: $73.7M ■ Total liquidity: $190.0M $163.6 ■ AMG’s primary debt facility is a $370 $147.2 million
Slide 20: End Markets
End Markets Revenue Gross Profit ( in USD millions) ( in USD millions) YTD September 2013: $874.4 YTD September 2013: $136.7 Aerospace Aerospace 40.7% 45.4% Energy Energy Infrastructure 17.2% 18.1% 12.2% Infrastructure 9.8% Specialty Metals Specialty Metals & Chemicals & Chemicals 29.0% 27.6 Aerospa
Slide 21: Appendix: AMG's Critical Materials for Aerospace & Critical Materials Prices
Appendix: AMG’s Critical Materials for Aerospace & Critical Materials Prices
Slide 22: AMG - Aerospace
AMG - Aerospace ■ AMG’s Aerospace Revenue consists of a diversified mix of high value added products and services Revenue by End Market Aerospace Revenue by Division Energy Superalloys Ferrovanadium 18.1% 3.7% Aluminum 2.5% Alloys 9.3% Aerospace Specialty Metals 40.7% Ti Alloys & & Chemicals Coating
Slide 23: AMG – Aerospace
AMG – Aerospace Example Ti-64 Ti-6246 Ti-834 Ni-based TiAl Superalloys Operating temperature [°C] up to 400 up to 550 up to 600 1,230 - 730 up to 730 23
Slide 24: AMG – Aerospace
AMG – Aerospace COMPRESSOR BLADES COMPRESSOR DISCS LP TURBINE BLADES HP TURBINE DISCS EXHAUST Cobalt Cobalt Cobalt Cobalt Cobalt Chromium Chromium Chromium Chromium Chromium Niobium Hafnium Niobium Tantalum Rare Earths Tantalum Tungsten Tantalum Tantalum Tungsten Titanium Titanium Tungsten Tungsten
Slide 25: AMG – Aerospace
AMG – Aerospace 25 New AMG Product: Vacuum-coated transducers are applied to the bolts on the 3 Bearing Swivel Module of the Joint Strike Fighter F-35B
Slide 26: 5 Year Price Trends
5 Year Price Trends Tantalum Concentrate 140 (Ta2O5 Contained) 70 Niobium Pentoxide 35 Molybdenum 120 60 30 100 50 25 Price in $/kg Price in $/lb Price in $/lb 80 40 20 123.6 62.6 60 112.7 30 15 28.9 55.2 40 85.0 20 41.3 40.0 10 64.4 32.4 15.7 15.5 45.9 11.1 12.7 20 38.9 10 5 9.7 0 0 0 2008 2009 201
Slide 27: 5 Year Price Trends
5 Year Price Trends 35 Ferrovanadium 3,000 Aluminum 1,000 Carbon Steel 900 30 2,500 800 25 700 2,000 Price in $/mt Price in $/mt Price in $/lb 20 600 1,500 500 30.9 933 15 2,567 400 2,173 2,395 1,000 2,018 635 700 10 1,670 1,817 300 582 530 523 14.5 14.8 14.9 200 10.9 12.3 500 5 100 0 0 0 2008 2009
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