Slide 1: Second Quarter 2023 Results
Advancing Materials Innovation NASDAQ: GSM Second Quarter 2023 Results August 15th, 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: Q2 Business Review
Q2 Business Review
Slide 4: Opening Remarks: Q2 Business and Financial Highlights
Anticipate capitalizing on enormous long-term opportunities in the solar and battery markets • Recently US DoE addition of Silicon Metal to critical material list, validating the onshoring trend and highlighting our opportunity in the US market • Beneficiary of strong expected demand for high purity
Slide 5: Product Category Snapshot: Silicon Metal
1,500 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 11,500 US CRU spot - import EU CRU spot (5.5.3) • Silicon metal generated $82 million of adjusted EBITDA driven by resumption of operations in France and cost efficiencies • Volumes up 37.1%, due to restart in France • Average realized pri
Slide 6: Product Category Snapshot: Silicon-Based Alloys
• Silicon-based alloys generated $32 million of adjusted EBITDA primarily driven by cost improvement in France • Volumes remained broadly stable Q/Q • Avg. realized selling prices slightly declined by 2.1% Q/Q as a result of lower pricing, partially offset by product mix improvement • Costs were pos
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 76,454 97,053 75,082 97,007 61,583 61,917 46,867 62,573 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 800 1,300 1,800 2,300 High-carbon ferromanganese EU CRU spot Silico-manganese EU CRU spot • Manganese-based alloys generated $1 million of adjust
Slide 8: Q2 Financial Review
Q2 Financial Review
Slide 9: Income Statement Summary Q2-23 vs. Q1-23
INCOME STATEMENT SUMMARY Q2-23 VS. Q1-23 9 • Solid double digit second quarter sales growth driven by restart in France • Improved margins due to competitive energy agreement and lower raw materials costs • Adjusted EBITDA growth of 136% driven by effective footprint optimization, in-line with our e
Slide 10: Adjusted EBITDA Bridge Q2-23 vs. Q1-23
ADJUSTED EBITDA BRIDGE Q2-23 VS. Q1-23 ($m) 10 • Average selling prices across core products decreased 6.7% – Silicon Metal (11.4)%, Silicon-based alloys (2.1)% and Mn-based alloys (5.2)% • Volume across core products increased 21.1% – Silicon Metal 37.1%, Si-based alloys 0.7% and Mn-based alloys 33
Slide 11: Cash and Debt Evolution
500 431 450 400 400 194 194 127 55 37 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Gross Debt Net Debt 307 237 323 344 363 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Cash trends ($m) Adjusted gross and net debt ($m) CASH AND DEBT EVOLUTION 11 • Reported record cash balance of $363 million as of June 30th • Net debt reduction o
Slide 12: Cash Flow Summary
CASH FLOW SUMMARY 12 (1) Free cash flow is calculated as operating cash flow plus investing cash flow (2) EBITDA excludes the PPA Fair Value ($’000) Q2-23 Q1-23 Q2-22 EBITDA 102,491(2) 39,251 (2) 285,483 Non-cash items (66,224) (37,984) 1,072 Changes in Working Capital 78,627 131,125 (96,490) Others
Slide 13: Corporate Update
Corporate Updateb
Slide 14: Corporate Update: Notes Redemption and Long-term Growth Opportunities
GENERAL CORPORATE UPDATE 14 2 1 Redemption of $150m of Senior Secured Notes in July • --- Gross debt reduced to $250 million as of July 31st • --- Reduced annual cash interest expense by $14 million Enhanced Long-term growth opportunities • --- US Department of Energy designated silicon as a critica
Slide 15: Q&A
Q&A
Slide 16: Appendix - Supplemental Information
Appendix ─ Supplemental Information
Slide 17: Quarterly Sales and Adjusted EBITDA
QUARTERLY SALES AND ADJUSTED EBITDA 17 86 86 241 303 185 130 45 106 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Adjusted EBITDA Quarterly Sales $ millions Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Silicon Metal 152 187 313 356 264 184 161 195 Silicon Alloys 111 166 212 236
Slide 18: Adjusted Gross Debt
Adjusted gross debt Jun-23 18 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 France guaranteed b
Slide 19: Thank You
THANK YOU www.ferroglobe.com 19