Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (June 2018)
24 slides from Amg Critical Materials's investor presentation, June 2018
Slide 1: AMG Advanced Metallurgical Group N.V. June 2018 Investor Update
AMG ADVANCED METALLURGICAL GROUP N.V. JUNE 2018 INVESTOR UPDATE 1
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 is a Critical Materials Company
GLOBAL TRENDS CO2 emission reduction, population growth, increasing affluence, and energy efficiency DEMAND Innovative new products that are lighter, stronger, and resistant to higher temperatures AMG IS A SUPPLY AMG sources, processes, CRITICAL and supplies the critical materials that the market M
Slide 4: AMG at a Glance
A M G AT A G L A N C E Q1 2018 REVENUE BY SEGMENT: BY END MARKET: BY REGION: 39% Transportation 46% Europe 81% Critical Materials 22% Specialty Metals 33% North America & Chemicals 19% Engineering 29% Infrastructure 16% Asia 10% Energy 5% ROW AMG IS A GLOBAL SUPPLIER OF CRITICAL MATERIALS TO: ENERGY
Slide 5: Strategic History
S T R AT E G I C H I S T O R Y 2012 2013 2014 2015 2016 - 2017 COST SUPPLY CHAIN SCALING PRODUCT MIX TARGETED W/C REDUCTION EXCELLENCE PROFITABLE OPTIMIZATION & DEBT LEVELS GROWTH Cost-reduction and Competitive advantage Properly positioned, Streamlined operations Further reduction capex discipline
Slide 6: Current Strategy
C U R R E N T S T R AT E G Y MISSION STATEMENT To increase long term value through industry leadership, operational expertise and efficient deployment of capital STRATEGIC OBJECTIVE Identifying long term trends and leveraging those trends through technological excellence and innovations in the indis
Slide 7: Critical Materials – Market Trends
C R I T I C A L M AT E R I A L S – M A R K E T T R E N D S CRITICAL MATERIALS MAJOR END MARKETS MARKET TRENDS MAJOR CUSTOMERS AMG ANTIMONY ANTIMONY TRIOXIDE FLAME RETARDANTS PLASTICS ANTIMONY MASTERBATCHES ANTIMONY PASTES COMMUNICATIONS & AMG BRAZIL MICRO CAPACITORS, ELECTRONICS TANTALUM & NIOBIUM S
Slide 8: Critical Materials – Market Trends
C R I T I C A L M AT E R I A L S – M A R K E T T R E N D S CRITICAL MATERIALS MAJOR END MARKETS MARKET TRENDS MAJOR CUSTOMERS AMG ALUMINUM ALUMINUM MASTER ALLOYS AEROSPACE, AUTOMOTIVE FUEL EFFICIENCY ALUMINUM POWDERS AMG VANADIUM INFRASTRUCTURE FERROVANADIUM INFRASTRUCTURE GROWTH FERRONICKEL-MOLYBDE
Slide 9: Engineering – Market Trends
ENGINEERING – MARKET TRENDS CRITICAL MATERIALS MAJOR END MARKETS MARKET TRENDS MAJOR CUSTOMERS AMG ENGINEERING AEROSPACE, FUEL EFFICIENCY CAPITAL GOODS AUTOMOTIVE ELECTRONICS (VACUUM FURNACES) AMG ENGINEERING AEROSPACE, VACUUM HEAT FUEL EFFICIENCY AUTOMOTIVE TREATMENT SERVICES ENERGY TRANSPORTATION
Slide 10: Lithium & Vanadium Growth Projects
LITHIUM & VANADIUM GROWTH PROJECTS
Slide 11: Lithium & Tantalum Buildout – June 18 Status
L I T H I U M & TA N TA L U M B U I L D O U T – J U N E 2 0 1 8 S TAT U S 2017 2018 2019 2020 2021 Tantalum PRODUCTION EXPANDED PRODUCTION CAPEX SPEND Spodumene SP I CAPEX SPEND PRODUCTION SP II CAPEX SPEND PRODUCTION Structured, sequenced approach to maximizing the value of our Mibra Mine asset
Slide 12: Lithium Project Phases
LITHIUM PROJECT PHASES PHASE I & PHASE II PHASE III LITHIUM CHEMICAL LITHIUM CONCENTRATE PRODUCTION PRODUCTION LITHIUM CONCENTRATE LITHIUM CONCENTRATE LITHIUM CHEMICAL PLANT I PLANT II PLANTS Construction of a lithium Construction of second Construction of lithium concentrate plant to produce lithiu
Slide 13: Operating Costs for Spodumene Production
O P E R AT I N G C O S T S F O R S P O D U M E N E P R O D U C T I O N Operating costs for spodumene production, 2017 ($/mt) 300 Market price: ~$1,000/mt 250 200 150 AMG ($134/mt) 100 50 0 Talison - Greenbushes Pilbara - Pilgangoora Altura - Pilgangoora Galaxy Resources Process Minerals (Australia)
Slide 14: AMG Vanadium: Ohio Expansion
A M G VA N A D I U M : O H I O E X PA N S I O N Summary • $35M investment to expand total spent catalyst roasting capacity by 30%, or 9,000 tons, in Cambridge, Ohio facility • Increase in roasting capacity to gold-standard recycling process – 99% of solids produced throughout process are saleable ma
Slide 15: AMG Vanadium: Going Global
A M G VA N A D I U M : G O I N G G L O B A L + Partnership between two market leaders to develop a sustainable 'cradle-to-grave' solution for catalyst supply and reclamation
Slide 16: Vanadium: Inventory Change vs FeV Price
VA N A D I U M : I N V E N T O R Y C H A N G E V S F E - V P R I C E 9.0 $80 Cumulative Inventory Change 8.0 $70 V2O5 Price (US$/pound V2O5) Cumulative Inventory Change 7.0 (Months of Consumption) $60 6.0 $50 5.0 $40 4.0 Metal Bulletin Fe-V Price $30 3.0 $20 2.0 1.0 $10 - $- 2003 2004 2005 2006 2007
Slide 17: Ferrovanadium: Price Trend
F E R R O VA N A D I U M : 5 - Y E A R P R I C E T R E N D $35 $30 Ferrovanadium ($ per lb) $25 $20 Ferrovanadium $15 $10 $5 $0 1. Prices are shown as monthly averages taken over the period 1 Jan 2013 through 31 Mar 2018, with each horizontal axis label representative of that year’s January monthly
Slide 18: Financial Highlights & Outlook
FINANCIAL HIGHLIGHTS & OUTLOOK
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE (IN MILLIONS OF US DOLLARS) GROSS PROFIT (IN MILLIONS OF US DOLLARS) $308.4 $70.1 $280.7 $258.0 $262.0 $258.9 $54.3 $56.5 $52.5 $51.3 20% 34% YoY YoY Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 EBITDA (IN MILLIONS OF US DOLLARS) NET DEBT (CASH) (IN MILLIO
Slide 20: AMG Critical Materials
A M G C R I T I C A L M AT E R I A L S REVENUE & EBITDA (IN MILLIONS OF US DOLLARS) • Q1 2018 revenue of $248.4 $248.4 million was 28% higher than Q1 2017 $214.0 $194.5 $202.6 $203.4 • EBITDA increased by $11.4 $37.1 Q1 2018 EBITDA million over Q1 2017 to $37.1 $25.7 $23.9 $23.5 $26.9 million in Q1
Slide 21: AMG Critical Materials – Quarterly Revenue Drivers
A M G C R I T I C A L M AT E R I A L S – Q U A R T E R LY R E V E N U E DRIVERS KEY PRODUCT Q1 ‘18 REV Q1 ‘17 REV VOLUME PRICE ($M) ($M) • AMG Critical Materials’ revenue in the first quarter FeV & FeNiMo $55.2 $27.0 increased by $53.8 million, or 28%, to $248.4 million Al Master Alloys & Powders $5
Slide 22: AMG Engineering
AMG ENGINEERING REVENUE & EBITDA (IN MILLIONS OF US DOLLARS) • EBITDA increased by $66.7 $0.1 million in Q1 2018 versus $63.5 $60.1 $59.4 $55.6 Q1 2017 REVENUE DECLINED • Revenue in the quarter was BY 5% VS. Q1 2017 adversely by timing effects, $8.0 $7.4 $7.3 namely early stage $6.1 DUE TO TIMING $4
Slide 23: Aerospace: Driving Growth in the Core Business
A E R O S PA C E : D R I V I N G G R O W T H I N T H E C O R E B U S I N E S S Development of Order Backlog Forecasted Production Levels of Commercial Aircraft Number of aircraft produced OB Airbus in thousand Aircrafts OB Boeing in bn USD Underlying fundamentals point to continued growth in this cr
Slide 24: 2018 Outlook & Lithium Project Update
2 0 1 8 O U T L O O K & L I T H I U M P R O J E C T U P D AT E OUTLOOK L I T H I U M P R O J E C T U P D AT E We believe we can achieve our goals earlier Project is progressing in-line with expectations – production has than previously expected and can commit to commenced as of May 15, 2018. turning
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