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Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (February 2011)
24 slides from Amg Critical Materials's investor presentation, February 2011
Slide 1: Investor Presentation February 2011
Investor Presentation February 2011
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: AMG Advanced Metallurgical Group N.V.
AMG Advanced Metallurgical Group N.V. Listed: NYSE-Euronext Amsterdam: AMG Founded: 2006 Revenues: $951.1M TTM Employees: 2,500 Facilities: Netherlands, Germany, UK, USA, Brazil, France, Turkey, Czech Republic, China, Mexico, Belgium, Sri Lanka Market cap: €364.1M Shares outstanding: 27.5M 52 week r
Slide 4: Macroeconomic Trends and Markets
Macroeconomic Trends and Markets ■ AMG participates in the macro economic trend of: ■ Growing demand for natural resources in context of CO2 reduction and sustainable environmental demands for: ■ Responsible energy production and use ■ Emerging market infrastructure ■ Aerospace and light weight mate
Slide 5: Critical Raw Materials
Critical Raw Materials The EU identified 14 critical raw materials(1) to the European economy – focusing on two determinants – economic importance and supply risk AMG currently produces 4 of those elements “Critical” raw materials (1) European Commission Annex V to the Report of the Ad-hoc Worki
Slide 6: Products & Markets
Products & Markets Advanced Materials Engineering Systems High-value alloys Capital equipment for high purity Essential raw materials materials Specialty Metals & Energy Aerospace Infrastructure Chemicals 6
Slide 7: Critical Raw Materials
Critical Raw Materials Primary producers of critical raw materials Titanium Vanadium Magnesium Chromium Titanium Antimony Graphite Antimony Magnesium Lithium Magnesium Silicon Titanium Titanium Magnesium Vanadium Graphite Graphite Tantalum Tantalum Niobium Tantalum Lithium Chromium Tantalum Vanadi
Slide 8: Advanced Materials - Market, Products and Customers
Advanced Materials - Market, Products and Customers Aerospace Infrastructure - FeV Specialty Metals Products Specialty alloys for titanium Ferro-vanadium Chromium Metals Coatings for wear Ferro-nickel molybdenum Tantalum resistance Antimony Aluminium master alloys Competitors Readi
Slide 9: Advanced Materials - Specialty metals pricing
Advanced Materials - Specialty metals pricing $45 Increase from 2009 lows: $40 FeV: 59% Mo: 117% Ni: 142% $35 Price / Pound – V, Mo, Ni $30 $25 $20 $15 $10 AMG IPO $5 $0 2007 2008 2009 2010 2011 Ferro Vanadium Molybdenum Nickel Prices are still below pre-crisis levels; 9 tied to demand for carbon an
Slide 10: Engineering Systems - Market, Products and Customers
Engineering Systems - Market, Products and Customers Energy - Solar Aerospace Energy - Nuclear Solar silicon melting and Vacuum Melting and Re- Vacuum Sintering Products crystallisation systems melting Systems Systems (DSS furnaces) Precision Casting and Coating Systems Heat Treatment with
Slide 11: Financial Overview
Financial Overview 11
Slide 12: Markets & Products – by the Numbers
Markets & Products – by the Numbers YTD 2010 Revenue by YTD 2010 Revenue by End Market Product Tantalum & Graphite 5% Niobium 4% Chromium Metal 8% Aerospace 26% Vacuum Furnaces 25% Specialty Metals & Chemicals 36% Antimony 11% FeV & FeNiMo Energy - Solar & 8% Nuclear 22% Al Master Alloys 14% Si Meta
Slide 13: Financial Highlights – YTD September 2010
Financial Highlights – YTD September 2010 2010 YTD Revenue 2010 YTD EBITDA $719.8 $64.7 5.1 94.4 178.0 27.5 32.1 447.4 Revenue by Geography Advanced Materials Engineering Systems Advanced Materials Engineering Systems Graphit Kropfmühl Graphit Kropfmühl North America 21% Asia 18% Europe 56% South Am
Slide 14: Financial Highlights
Financial Highlights Revenue (in millions) Highlights Q3 Revenue: $240.4 million Up 17% from Q3 2009 $243.5 $240.4 Q3 EBITDA: $18.8 million $231.4 $235.8 Up 1% from Q3 2009 $205.4 Q3 EPS: $0.11 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Up from ($0.50) in Q3 2009 EBITDA YTD Revenue: $719.8 million
Slide 15: Advanced Materials
Advanced Materials Financial Summary Highlights ( in millions) Revenue EBITDA ■ Infrastructure - ferrovanadium $152.0 $154.9 ■ Reference prices increased 18% v. Q3 $140.5 2009 ■ Volumes improved 32% v. Q3 2009 $124.3 ■ Ferronickel-molybdenum demand $95.9 decreased 43% v. Q3 2009 ■ Aerospace – master
Slide 16: Engineering Systems
Engineering Systems Financial Summary Highlights Q3 revenue decreased 14% v. Q3 2009 ( in millions) Revenue EBITDA $73.8 Solar silicon DSS furnace revenues $65.3 $61.6 decreased 44% in Q3 2010 v. Q3 2009 $59.5 $53.2 Q3 EBITDA decreased 33% v. Q3 2009 September 30, 2010 Backlog improved to $1
Slide 17: Graphit Kropfmühl
Graphit Kropfmühl Financial Summary Highlights ( in millions) Revenue EBITDA Q3 revenue decreased 4% v. Q3 2009 $33.7 Decrease in silicon metal revenues due to $33.3 $32.1 $32.4 $29.9 production issues Silicon metal down 7% Natural graphite up 37% Q3 EBITDA decreased 23% v. Q3 2009 Lower
Slide 18: Capital Base
Capital Base Cash and Debt – September 30, 2010 Summary ( in millions) ■ Cash: $90.2 million Cash Debt $234.8 ■ Total debt: $234.8 million $202.3 $203.8 $203.0 $204.3 ■ Net debt: $144.6 million ■ Revolver availability: $61.3 million $124.4 ■ Total liquidity $151.5 million $117.0 $98.9 $90.2 $84.6 Q3
Slide 19: Outlook
Outlook ■ Advanced Materials ■ Markets are improving ■ Antimony, tantalum and titanium alloys and coatings will drive growth in 2011 ■ Engineering Systems ■ Backlog is increasing; renewed interest in solar silicon furnaces ■ Order intake driven by titanium, solar and specialty steel markets ■ Graphi
Slide 20: Appendix
Appendix 20
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet December 31, 2009 September 30, 2010 Fixed assets 211,022 212,440 Goodwill and intangibles 28,253 38,924 Other non-current assets 78,209 54,848 Inventories 193,378 202,318 Receivables 147,787 177,586 Other current assets 35,313 48,903 Cash 117,016 90,213 TOTAL ASSETS 810,9
Slide 22: Consolidated Income Statement
Consolidated Income Statement Q3 2009 Q3 2010 Revenue 205,406 240,427 Cost of sales 165,457 198,325 Gross profit 39,949 42,102 Selling, general and admin. 31,876 31,682 Asset impairment and restructuring 5,302 - Environmental 4,075 257 Other income (1,194) (270) Operating profit (110) 10,433 Net fin
Slide 23: Consolidated Cash Flows
Consolidated Cash Flows Nine months ended Nine months ended September 30, 2009 September 30, 2010 Cash Flows from Operations (6,033) (13,903) Capital Expenditures (20,755) (19,054) Other Investing Activities (55,796) (26,622) Cash Flows from Investing Activities (76,551) (45,676) Cash Flows from Fin
Slide 24: Slide 24
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