Slide 1: Advancing Materials Innovation – First Quarter 2022
Advancing Materials Innovation NASDAQ: GSM First Quarter 2022 May 11, 2022 1
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: Q1 Business Review
Q1 Business Review
Slide 4: Opening Remarks and Business Highlights
OPENING REMARKS 4 BUSINESS HIGHLIGHTS Strong start in 2022 building on the momentum from Q4 Strong pricing across all product categories Operations running well Leveraging vertical integration platform and procuring key inputs from alternative sources due to Russia-Ukraine conflict Capitalizing on u
Slide 5: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 5 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Avg. realized price (non-JV shipments) up 107.8% due to contract resets End market fundamentals remain sound. Volumes decreased primarily due to one-offs (energy in Spain, tr
Slide 6: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 6 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Avg. realized selling price up 32.8% Volume decrease in ferrosilicon and foundry, primarily in Europe due to energy cost in Spain, logistical and operational issue in
Slide 7: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 7 Volume trends Sequential quarters EBITDA evolution ($m) Index pricing trends ($/mt) Avg. realized selling price up 11.9% building on momentum from Q4 Quarterly volumes in-line with expectations Costs adversely impacted by higher raw material prices
Slide 8: Key Focus Areas for 2022
KEY FOCUS AREAS FOR 2022 8 Continued execution of the value creation plan. Targeting incremental EBITDA benefit of $65 million in 2022 through costs savings. Initiation of ESG strategy and goal-setting per project or initiative. Initial ESG Report to be published in 1H-2022. Focus on capability buil
Slide 9: Q1 Financial Review
Q1 Financial Review
Slide 10: Income Statement Summary Q1-22 vs. Q4-21
INCOME STATEMENT SUMMARY Q1-22 vs. Q4-21 10 Consolidated Income Statement (#039;000) Q1-22 Q4-21 QoQ Sales 715,265 569,771 26% Raw materials and energy consumption for production (340,555) (371,519) (8%) Raw materials / sales % 48% 65% (27%) Other operating income 23,008 39,619 (42%) Staff costs (81,98
Slide 11: Adjusted EBITDA Bridge Q1-22 vs Q4-21
ADJUSTED EBITDA BRIDGE Q1-22 vs Q4-21 ($m) 11 Average selling price across core products increased 41.5%: Silicon Metal (+88.6%), Silicon-based alloys (+32.8%) and Mn-based alloys (+11.9%) Volume across core products decreased (11.5)%: Silicon Metal (11.5)%, Si-based alloys (4.1)% and Mn-based alloy
Slide 12: Balance Sheet Summary
BALANCE SHEET SUMMARY 12 Unaudited Financial Statements Adjusted gross debt excludes bank borrowings on factoring program at Mar. 31, 2021 & Dec. 31, 2020, and on the A/R securitization at Mar. 31, 2021 Cash and restricted cash includes the following as at the respective period ends: Mar. 31, 2021 -
Slide 13: Cash Flow Summary
CASH FLOW SUMMARY 13 (1) Free cash flow is calculated as operating cash flow plus investing cash flow Simplified Cash Flows $’000 Q1-22 Q4-21 Q3-21 Q2-21 Q1-21 EBITDA 232,239 80,434 35,231 31,943 (18,898) Non-cash items 2,124 (6,477) 1,250 65 36,563 Changes in Working capital (167,768) (55,626) (71,
Slide 14: Near Term Focus
NEAR TERM FOCUS 14 Prioritization of debt repayment and reinvestment in the assets; funded completely from cash from operations. Assessment of future capital structure; near-term opportunity to repay Super Senior Notes. Advancing on new Asset Based Loan in the North America – target closing in Q2-22
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 Note: The amounts for prior periods have been restated to show the results of the Company’s Spanish hydroelectric plants within (Loss) profit for the period from discontinued operations and therefore these results are also excluded from adjusted EBITDA Adjusted
Slide 18: Debt Evolution
DEBT EVOLUTION 18 Adjusted gross debt remained broadly flat despite the new loan with SEPI ($38m) that was partially offset by the repayment of the coupon of the Super Senior Notes and reinstated Senior Notes coupon Net debt has decreased by $55 million primarily driven by $59.3 million of cash gene
Slide 19: Adjusted Gross Debt (Mar. 31, 2022)
19 ADJUSTED GROSS DEBT (MAR. 31, 2022) Notes: Operating leases are excluded for comparison purposes and to align to the balance sheet prior to IFRS16 adoption LBP Factoring excluded for comparison purposes Other bank loans relates to COVID-19 funding received in France with a supported guarantee fro
Slide 20: Thank You
THANK YOU www.ferroglobe.com 20