Slide 1: Fourth Quarter and Full Year 2022 Results
Advancing Materials Innovation NASDAQ: GSM Fourth Quarter and Full Year 2022 Results February 23rd, 2023
Slide 2: Forward-Looking Statements and non-IFRS Financial Metrics
Forward-Looking Statements and non-IFRS Financial Metrics 2 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-looki
Slide 3: Q4 and Full Year 2022 Business Review
Q4 and Full Year 2022 Business Review
Slide 4: Continued to strengthen the balance sheet
Continued to strengthen the balance sheet Working Capital improved in Q4, expect more in Q1 & Q2 Total cash increased by $86m Q/Q to $323m Net debt decreased by $57m Q/Q to $137m Expect to be net cash positive in 2023 OPENING REMARKS 4 BUSINESS HIGHLIGHTS $449m SALES 24% Q/Q decrease 46% Y/Y increas
Slide 5: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 5 Volume trends Index pricing trends ($/mt) Sequential quarters Adj. EBITDA evolution ($m) 1,500 3,500 5,500 7,500 9,500 11,500 US CRU spot - import EU CRU spot (5.5.3) • Avg. realized price down 10.8% Q/Q. Market indexes declined 22% in US and 8% in Europe •
Slide 6: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 6 Volume trends Index pricing trends ($/mt) Sequential quarters Adj. EBITDA evolution ($m) 500 1,500 2,500 3,500 4,500 5,500 FeSi US CRU spot - import FeSi EU CRU spot • Avg. realized selling price declined by 12.9% Q/Q. Market indexes also declined by
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 Volume trends Index pricing trends ($/mt) Sequential quarters Adj. EBITDA evolution ($m) 800 1,300 1,800 2,300 High-carbon ferromanganese EU CRU spot Silico-manganese EU CRU spot • Avg. realized selling prices declined by 7.4% Q/Q. Market indexes al
Slide 8: Q4 and FY22 Financial Review
Q4 and FY22 Financial Review
Slide 9: Consolidated Income Statement
Consolidated Income Statement (#039;000) Q4-22 Q3-22 Q4-21 vs Q FY-22 FY-21 Y/Y Sales 448,625 593,218 569,771 (24%) 2,597,916 1,778,908 46% Cost of sales (281,303) (285,210) (371,519) 1% (1,276,817) (1,184,896) (8%) Cost of sales % 63% 48% 65% 6% 49% 67% 17% Other operating incomes 78,414 19,711 39,619
Slide 10: Adjusted EBITDA Bridge Q4-22 vs Q3-22
ADJUSTED EBITDA BRIDGE Q4-22 vs Q3-22 ($m) 10 • Average selling prices across core products decreased by 11.2%: Silicon Metal 10.8%, Silicon-based alloys 12.9% and Mn-based alloys 7.4% • Volumes across core products decreased by 15.5%: Silicon Metal 21.9%, and Si-based alloys 18.6% • Cost had a posi
Slide 11: Adjusted EBITDA Bridge Full Year 2022 vs. 2021
ADJUSTED EBITDA Bridge Full Year 2022 vs. 2021 ($m) 11 • Average selling prices across core products increased 58.9%: Silicon Metal 112.3%, Silicon-based alloys 79.5%, and Mn-based alloys 19.2% • Volumes decreased by 12.6%: Silicon Metal 17.6%, Silicon-based alloys 15.9%, and Mn-based alloys 6.0% •
Slide 12: Cash and Debt Evolution
CASH AND DEBT EVOLUTION 12 513 518 500 431 460 397 342 194 194 137 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Gross Debt Net Debt 116 176 307 237 323 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Cash trends ($m) Adjusted gross and net debt ($m) • Projecting a positive net cash position in 2023 • Net debt reduction of $57m was
Slide 13: Cash Flow Summary
CASH FLOW SUMMARY 13 Q1´22, Q2´22 and Q3´22 restated (1) Free cash flow is calculated as operating cash flow plus investing cash flow • Extraordinary cash generation in Q4, driven by working capital release • Free cashflow of $94m in Q4 • Non-cash items includes mainly the mark-to-market earn-out pr
Slide 14: Financing Update: Subsequent Events
FINANCING UPDATE SUBSEQUENT EVENTS 14 Further reducing our gross debt • Partial repayment of $18m of a Spanish Government loan in February-23 • The Ministry of Industry has confirmed that full repayment is no longer required. A new amortization calendar is expected to be received soon from the Minis
Slide 15: Corporate Update
Corporate Updateb
Slide 16: General: Silicon metal for advanced applications
GENERAL CORPORATE UPDATE 16 Ferroglobe’s development of Silicon metal for advanced applications provides significant opportunities for growth • Ferroglobe's global footprint and leading silicon metal position enables it to capitalize on the onshoring of the solar value chain • Key milestone reached
Slide 17: Q&A
Q&A
Slide 18: Appendix ─ Supplemental Information
Appendix ─ Supplemental Information
Slide 19: Quarterly Sales and Adjusted EBITDA
QUARTERLY SALES AND ADJUSTED EBITDA 19 22 34 86 86 241 303 185 130 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Adjusted EBITDA Quarterly Sales $ millions Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Silicon Metal 140 158 152 187 313 356 264 184 Silicon Alloys 104 119 111 166 2
Slide 20: Adjusted Gross Debt
ADJUSTED GROSS DEBT As of December 31, 2022 20 Notes: 1. Operating leases are excluded for comparison purposes and to align to the balance sheet prior to IFRS16 adoption 2. LBP and Bankinter Factoring excluded for comparison purposes 3. Other bank loans relates to COVID-19 relief loan received in Fr
Slide 21: Thank You
THANK YOU www.ferroglobe.com 21