Ferroglobe Plc · NASDAQ:GSM
Ferroglobe — Q4 2016 Earnings Presentation
18 slides from Ferroglobe's earnings presentation, Mar 17, 2017
Slide 1: Advancing Materials Innovation Fourth Quarter 2016
Advancing Materials Innovation NASDAQ: GSM Fourth Quarter 2016
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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-looking statements are not historical f
Slide 3: Table of contents
Table of contents Q4 overviewSelected financial highlights
Slide 4: 1. Q4 overview
1. Q4 overview ~~ Ferroglobe
Slide 5: Spot prices for key products stabilized in Q4
Source: Company information Silicon metal price of $0.94 per pound, down 0.7% Silicon-based alloys price of $0.61 per pound, down 3.3% Manganese alloys price of $0.40 per pound, up 3.1% Silicon metal (35% of sales): meaningful stabilization of prices Silicon alloy (33% of sales): Sales mix of lower-
Slide 6: Recovery of spot prices for our key commodities in the U.S. and Europe
Recovery of spot prices for our key commodities in the U.S. and Europe Overall, market trends continue to move in our favorBulk ferroalloys (FeSi and Mn alloys) prices above levels one year agoMn alloy margins improved; more than doubled since September 2016 FeSi prices slightly increased in Europe
Slide 7: Positive market outlook for 2017
Positive market outlook for 2017 Signs of meaningful improvements, with spot prices for key products in U.S. and Europe gaining momentum, driven by:Market starting to adjust to increased production costs in importing countries due to increased energy costs and to exchange ratesTight supply condition
Slide 8: Recent business updates
Recent business updates Antidumping and countervailing duty actions filed in the U.S. and Canada against Australia, Brazil, Kazakhstan, Malaysia, Norway and ThailandPetitions outlines deliberate practices by producers from these countries to sell silicon metal at artificially low prices in North Ame
Slide 9: Financial discipline combined with approach to sales delivering results
Reported EBITDA loss of $(23.3) million for the quarter1 Adjusted EBITDA of $9.1 million for the quarterGenerated $20.3 million of free cash flow2 in Q4 2016 and $75.9 million for FY 2016Generated $191 million in working capital synergies for FY 2016, well ahead of original three-year projection of
Slide 10: On Track to Achieve Run-Rate Synergies of $85m
Maintained run-rate synergy attainment: ~$85 million33% above initial estimation of $65 MFast implementation:Achieved $57m for 2016, surpassing expectations, with a run rate of $72m in Q4Continued application of these synergy initiatives in 2017 will result in $28m of incremental savings versus 2016
Slide 11: Opportunities for long-term value creation
Opportunities for long-term value creation Strong balance sheet gives company ability to grow organically and inorganically Generating cash flow, even in down cycle and identifying non-core asset divestitures Strong market position and multiple levers to pull given diversified products, end markets
Slide 12: Selected financial highlights
Selected financial highlights
Slide 13: Q4 key performance indicators and overview
Q4 key performance indicators and overview 1 Free cash flow defined as “Net cash provided by operating activities” minus “Payments for property, plant and equipment.”Source: Company information Key performance indicators FY 2016 Q4 2016 Q3 2016 Pro Forma CY 2015 Sales ($m) 1,580.5 394.4 364.7 2,039.
Slide 14: Quarterly sales volumes (tons) (CY 2016)
Silicon metal sales (ton) FeSi sales (ton) Other Silicon Alloys* sales (ton) Manganese Alloys sales (ton) Quarterly sales volumes (tons) (CY 2016) *Includes CaSi, MgFeSi and Foundry .
Slide 15: Refinancing Update
Refinancing Update Issued senior notes due 2022 bearing 9.375% interest rate$350m aggregate principal amount Issued at 100% nominal value Amendment to GSM’s existing revolving credit facility $200 million aggregate principal amount Expiring in 2018
Slide 16: Balance sheet summary
Balance sheet summary ($mm) 12/31/20161 Q3 20161 12/31/2015 Total Assets 2,263 2,247 2,406 Net Debt2 405 430 393 Book Equity 1,093 1,171 1,295 Net Debt2 / Total Assets 17.9% 19.5% 16.3% Net Debt2 / Capital3 27.0% 27.2% 23.3% Financial results are unauditedNet Debt includes finance lease obligationsC
Slide 17: Q&A
Q&A ~~ Ferroglobe
Slide 18: Advancing Materials Innovation Fourth Quarter 2016
Advancing Materials Innovation NASDAQ: GSM Fourth Quarter 2016