Investor Presentation      May 2011
Cautionary Note    THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG ...
Overview                     Listed: NYSE-Euronext Amsterdam: AMG                  Founded: 2006                  Revenues...
Strategy    ■   Serve growing end markets with high value-added specialty metal        products and engineering solutions,...
Products & Markets    Advanced Materials        Engineering Systems                Graphit Kropfmühl High-value alloys   ...
End Markets – by the Numbers      2011 Q1 Revenue          2011 Q1 Gross Profit       $318.0 million              $59.8 mi...
Critical Raw Materials – AMG’s activities                                           AMG manufactures products with these e...
Critical Raw Materials     The EU identified 14 critical raw materials(1) to the European economy –      focusing on two ...
Critical Raw Materials     Primary producers of selected critical raw materials                                          ...
Business Units10
Advanced Materials - Market, Products and Customers                                Aerospace                    Infrastruc...
Significant Metals Prices     ■     Tantalum price movements are driven by demand for smart           phones     ■     Ant...
Advanced Materials     Financial Summary   Highlights     ( in millions)                         ■ Q1 2011 revenue up 50% ...
Engineering Systems – Market, Products and Customers                                Energy - Solar                Aerospac...
Engineering Systems     Financial Summary   Highlights     ( in millions)                          Q1 2011 revenue was fl...
Graphit Kropfmühl – Market, Products and Customers                                   Energy - Solar            Specialty M...
Graphit Kropfmühl     Financial Summary   Highlights       ( in millions)                           Q1 2011 revenue up 41...
Financial Overview
Financial Highlights     Revenue      (in millions)                                                                    Hig...
Financial Highlights                   2011 Q1 Revenue   2011 Q1 Gross Profit                    $318.0 million       $59....
Revenue by Geography                   2011 Q1 Revenue                      2010 Full Year Revenue21   AMG generated less ...
Capital Base     Cash and Debt – March 31, 2011   Summary      ( in millions)                                        ■ Cas...
Recent Developments     ■ Acquired aluminum master alloy producer KB Alloys, LLC for $23.5       million     ■ Signed agre...
Outlook     ■ Advanced Materials         ■ Increasing demand and pricing for chromium, antimony and tantalum         ■ Ant...
Appendix25
Consolidated Balance Sheet     Balance Sheet                                     Actual     FYE in                        ...
Consolidated Income Statement Summary Financials                            Actual For the three months ended March 31   2...
Consolidated Statement of Cash Flows              Cash Flow Statement                                           Actual    ...
Houlihan Lokey Global Industrials Conference, New York, May 2011
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Houlihan Lokey Global Industrials Conference, New York, May 2011

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Houlihan Lokey Global Industrials Conference, New York, May 2011

  1. 1. Investor Presentation May 2011
  2. 2. 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. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries nor should it or any part of it, nor the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This presentation has been prepared by, and is the sole responsibility of, the Company. This document, any presentation made in conjunction herewith and any accompanying materials are for information only and are not a prospectus, offering circular or admission document. This presentation does not form a part of, and should not be construed as, an offer, invitation or solicitation to subscribe for or purchase, or dispose of any of the securities of the companies mentioned in this presentation. These materials do not constitute an offer of securities for sale in the United States or an invitation or an offer to the public or form of application to subscribe for securities. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or the opinions contained herein. The Company and its advisors are under no obligation to update or keep current the information contained in this presentation. To the extent allowed by law, none of the Company or its affiliates, advisors or representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Certain statements in this presentation constitute forward-looking statements, including statements regarding the Companys financial position, business strategy, plans and objectives of management for future operations. These statements, which contain the words "believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of the management board of directors of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the achievement of the anticipated levels of profitability, growth, cost and synergy of the Company’s recent acquisitions, the timely development and acceptance of new products, the impact of competitive pricing, the ability to obtain necessary regulatory approvals, and the impact of general business and global economic conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. This document has not been approved by any competent regulatory or supervisory authority.2
  3. 3. Overview Listed: NYSE-Euronext Amsterdam: AMG Founded: 2006 Revenues: $1,072M LTM March 2011 EBITDA: $89.0M LTM March 2011 Employees: 2,600 Facilities: Netherlands, Germany, UK, USA, Brazil, France, Turkey, Canada, Czech Republic, China, Mexico, Belgium, Poland, India, Sri Lanka Market cap: €412M Shares outstanding: 27.5M 52 week range: €6.25–€16.76 Recent share price: €14.99 (May 10, 2011)  Sustainable Metals Technology Products:  High purity raw materials, metals and complex metal products  Vacuum furnaces used to produce high purity metals3
  4. 4. Strategy ■ Serve growing end markets with high value-added specialty metal products and engineering solutions, related to CO2 reduction and conservation of natural resources ■ Execute through a combination of: ■ Vertical integration ■ Industry consolidation ■ Continuous investment in productivity and technology ■ Serve the end markets of: ■ Responsible energy production and use ■ Emerging market infrastructure ■ Aerospace and light weight materials ■ Specialty metals and chemicals4
  5. 5. Products & Markets Advanced Materials Engineering Systems Graphit Kropfmühl High-value alloys  Capital equipment for  Silicon metal Critical raw materials high purity materials  Natural graphite Specialty Metals & Energy Aerospace Infrastructure Chemicals5
  6. 6. End Markets – by the Numbers 2011 Q1 Revenue 2011 Q1 Gross Profit $318.0 million $59.8 million6
  7. 7. Critical Raw Materials – AMG’s activities AMG manufactures products with these elements 1 AMG has development projects with these elements 2 H He Hydrogen Helium 1.0 4.0 4 5 6 7 8 9 10 3 Li Be B C N O F Ne Beryllium Boron Carbon Nitrogen Oxygen Fluorine Neon Lithium 9.0 10.8 12.0 14.0 16.0 19.0 20.2 6.9 11 12 13 14 15 16 17 18 Na Mg Al Si P S Cl Ar Sodium Magnesium Aluminum Silicon Phosphorus Sulfur Chlorine Argon 23.0 24.3 27.0 28.1 31.0 32.1 35.5 40.0 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 K Ca Sc Ti V Cr Mn Fe Co Ni Cu Zn Ga Ge As Se Br Kr Potassium Calcium Scandium Titanium Vanadium Chromium Manganese Iron Cobalt Nickel Copper Zinc Gallium Germanium Arsenic Selenium Bromine Krypton 39.1 40.1 45.0 47.9 50.9 52.0 54.9 55.9 58.9 58.7 63.5 65.4 69.7 72.6 74.9 79.0 79.9 83.8 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Rb Sr Y Zr Nb Mo Tc Ru Rh Pd Ag Cd In Sn Sb Te I Xe Rubidium Strontium Yitrium Zirconium Niobium Molybdenum Technetium Ruthenium Rhodium Palladium Silver Cadmium Indium Tin Antimony Tellurium Iodine Xenon 85.5 87.6 88.9 91.2 92.9 95.9 99 101.0 102.9 106.4 107.9 112.4 114.8 118.7 121.8 127.6 126.9 131.3 55 56 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 Cs Ba 57-71 Hf Ta W Re Os Ir Pt Au Hg Tl Pb Bi Po At Rn Caesium Barium Hafnium Tantalum Tungsten Rhenium Osmium Iridium Platinum Gold Mercury Thallium Lead Bismuth Polonium Astatine Radon 132.9 137.4 178.5 181.0 183.9 186.2 190.2 192.2 195.1 197.0 200.6 204.4 207.2 209.0 210.0 210.0 222.0 87 88 104 105 106 107 108 109 110 111 112 113 114 115 116 Fr Ra 89-103 Rf Db Sg Bh Hs Mt Ds Rg Uum Uut Uuq Uup Uuh Francium Radium Rutherfordlium Dubnium Seaborgium Bohrium Hassium Meitnerium Darmstadtium Roentgenium Ununbium Ununtrium Ununquadium Ununpentium Ununhexium 223.0 226.0 261 262 263 264 265 266 269 272 277 284 289 288 292 57 58 59 60 61 62 62 64 65 66 67 68 69 70 71 La Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Lanthanum Cerium Praseodymium Neodymium Promethium Samarium Europium Gadolinium Terbium Dysprosium Holmium Erbium Thallium Ytterbium Lutetium 138.9 140.1 140.9 144.2 147.0 150.4 152.0 157.3 158.9 162.5 164.9 167.3 168.9 173.0 175.0 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 Ac Th Pa U Np Pu Am Cm Bk Cf Es Fm Md No Lr Actinium Thorium Protactinium Uranium Neptunium Plutonium Americium Curium Berkelium Californium Einsteinium Fermium Mendelevium Nobelium Lawrencium 132.9 232.0 231.0 238.0 237.0 242.0 243.0 247.0 247.0 251.0 254.0 253.0 256.0 254.0 257.07
  8. 8. 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 has raw material sources for 4 of those elements “Critical” raw materials (1) European Commission Annex V to the Report of the Ad-hoc Working Group on defining critical raw materials8
  9. 9. Critical Raw Materials  Primary producers of selected critical raw materials Titanium Vanadium Chromium Magnesium Chromium Titanium Antimony Graphite Antimony Magnesium Lithium Magnesium Silicon Titanium Titanium Magnesium Vanadium Graphite Graphite Tantalum Tantalum Niobium Tantalum Graphite Lithium Chromium Tantalum Vanadium AMG raw material mines9
  10. 10. Business Units10
  11. 11. Advanced Materials - Market, Products and Customers Aerospace Infrastructure - FeV Specialty Metals Products  Specialty alloys for titanium  Ferrovanadium  Chromium Metals  Coatings for wear  Ferro-nickel molybdenum  Tantalum resistance  Antimony Trioxide  Aluminium master alloys Competitors  Reading Alloys Inc.  Evraz Group S.A. (Highveld  KBM Affilips B.V. Steel & Vanadium)  Evraz Group S.A.  Sunxing Chemical and (Stratcor)  Eramet S.A. (Gulf Chemical Metallurgical Materials Co & Metallurgical Corporation)  Delachaux S.A.  Evraz Group S.A. (Stratcor)  Campine S.A.  Xstrata plc  Chemtura Corporation  Chengde Vanadium &  Twinkling Star Co., Ltd. Titanium Stock Co. Ltd. Sample Customers11
  12. 12. Significant Metals Prices ■ Tantalum price movements are driven by demand for smart phones ■ Antimony and silicon metal price movements are driven by supply12 restrictions in China price per metric ton
  13. 13. Advanced Materials Financial Summary Highlights ( in millions) ■ Q1 2011 revenue up 50% over Q1 2010 ■ KB Alloys acquisition contributed $11.0 million ■ Antimony trioxide revenue up 74% ■ Q1 2011 Gross Margin 15% of revenue ■ Q1 2011 EBITDA up 71% over Q1 2010 ■ 7% of revenue ■ CAPEX ■ $1.1 million investment in hydropower facility in Brazil13
  14. 14. 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 for nuclear fuel DSS furnaces  Precision Casting and  Development project for  Mono2™ technology Coating Systems the safe storage of nuclear waste  Heat Treatment with high pressure gas quenching Competitors  GT Solar International,  Inteco Specialty Melting  No significant competition Inc. Technologies GmbH  PVA TePla AG  Consarc Corporation  Chinese producers  Aichelin GmbH Sample Customers14
  15. 15. Engineering Systems Financial Summary Highlights ( in millions)  Q1 2011 revenue was flat compared to Q1 2010  Solar furnaces 27% of revenue  Own and Operate 15% of revenue  Order backlog increased 7% to $195.9 million at March 31, 2011  Order intake $65.7 million in Q1 2011  1.01x book to bill ratio  Q1 2011 Gross Margin 28% of revenue  Q1 2011 EBITDA down 56% from Q1 2010  8% of revenue15
  16. 16. Graphit Kropfmühl – Market, Products and Customers Energy - Solar Specialty Metals & Chemicals Products  Silicon metal for  Natural graphite for polycrystalline for solar insulation, transportation cells and lithium-ion batteries  Silicon metal for aluminium and silicones Competitors  Bluestar Silicone Materials Ltd.  Asbury Graphite Mills, Inc.  Globe Specialty Metals Inc.  SGL Carbon SE  Grupo FerroAtlantica, S.L.  Qingdao Graphite Company, Ltd  Timminco Limited  Dow Corning Corporation  Wacker Chemie AG Sample Customers16
  17. 17. Graphit Kropfmühl Financial Summary Highlights ( in millions)  Q1 2011 revenue up 41% over Q1 2010  34% increase in silicon metal revenue due to lower contract prices  Natural graphite revenue up 57%  Q1 2011 Gross Margin 21% of revenue  Q1 2011 EBITDA up 332% over Q1 2010  15% of revenue  CAPEX  $1.2 million primarily for high purity graphite milling expansion17
  18. 18. Financial Overview
  19. 19. Financial Highlights Revenue (in millions) Highlights (in millions) ■ Q1 Revenue: $318.0 million ■ Up 35% from Q1 2010 ■ Q1 Gross Profit: $59.8 million ■ Q1 EBITDA: $26.2 million ■ Up 19% from Q1 2010 ■ Q1 EPS: $0.41 (1) EBITDA ■ Up from $0.11 in Q1 2010 (1) ■ TTM Q1 2011 ■ Revenue: $1072.7 million ■ EBITDA: $89.0 million ■ Operating Income: $48.9 million ■ EPS: $0.82 (1)19 (1) Excluding the equity losses from AMG’s 42.5% ownership in Timminco Limited
  20. 20. Financial Highlights 2011 Q1 Revenue 2011 Q1 Gross Profit $318.0 million $59.8 million20 in millions
  21. 21. Revenue by Geography 2011 Q1 Revenue 2010 Full Year Revenue21 AMG generated less than 3% of revenue from Japan
  22. 22. Capital Base Cash and Debt – March 31, 2011 Summary ( in millions) ■ Cash: $66.1 million ■ Total debt: $267.1 million ■ Net debt: $201.0 million ■ Debt to capitalization: 0.52x ■ Net Debt to TTM EBITDA: 2.26x ■ Revolver availability: $37.1 million ■ Total liquidity $103.2 million ■ AMG secured a new $300 million term loan and revolving credit facility in April ■ 5 year term22
  23. 23. Recent Developments ■ Acquired aluminum master alloy producer KB Alloys, LLC for $23.5 million ■ Signed agreements to supply tantalum concentrate production through the end of 2012 ■ AMG installed a 200,000 kwh solar power facility at its Ferrovanadium production facility ■ AMG completed a new $300 million term debt and revolving credit facility that does not expire until April 201623
  24. 24. Outlook ■ Advanced Materials ■ Increasing demand and pricing for chromium, antimony and tantalum ■ Antimony mine ramp up is on schedule for H2 2011 ■ Engineering Systems ■ Backlog is gradually improving ■ Own and Operate business is growing and will be a significant contributor ■ Graphit Kropfmühl ■ Improved silicon metal pricing; strong demand and pricing for natural graphite ■ AMG EBITDA growth in 2011 in excess of 20%24
  25. 25. Appendix25
  26. 26. Consolidated Balance Sheet Balance Sheet Actual FYE in December 31, 2010 March 31, 2011 Fixed assets 228.6 244.7 Goodwill and intangibles 27.0 36.6 Other non-current assets 80.7 81.9 Inventories 207.2 244.9 Receivables 175.4 206.2 Other current assets 46.9 50.9 Cash 89.3 66.1 TOTAL ASSETS 855.1 931.3 TOTAL EQUITY 234.0 248.3 Long-term debt 187.8 211.0 Pension liabilities 88.4 95.0 Other long-term liabilities 52.9 56.0 Current debt 49.3 56.0 Accounts payable 102.3 115.9 Advance payments 49.6 53.5 Accruals 43.3 55.7 Other current liabilities 47.5 39.9 TOTAL LIABILITIES 621.1 683.0 TOTAL LIABILITIES & EQUITY 855.1 931.326 in thousands
  27. 27. Consolidated Income Statement Summary Financials Actual For the three months ended March 31 2010 2011 Revenue 235.8 318.0 Cost of sales 193.2 258.2 Gross profit 42.6 59.8 Selling, general & admin. 30.6 42.9 Asset impairment & restructuring - 0.3 Environmental 0.3 0.1 Other income (0.1) (0.9) Operating profit 11.8 17.4 Net finance costs 3.6 0.5 Share of loss of associates 4.4 4.4 Profit before income taxes 3.8 12.5 Income tax expense 3.9 5.0 (Loss) profit for the period (0.1) 7.6 Attributable to: Shareholders of the Company (0.1) 7.0 Non-controlling interest (0.0) 0.6 Adjusted EBITDA 22.0 26.227 in thousands
  28. 28. Consolidated Statement of Cash Flows Cash Flow Statement Actual For the three months ended March 31, 2010 March 31, 2011 EBITDA 22.0 26.2 +/- Change in operating assets/liabilities (23.6) (22.1) -Interest paid, net (1.6) (1.2) Other operating cash flow 0.4 (0.3) Cash flows from operations before taxes (2.8) 2.6 Income tax paid (12.1) (16.3) (14.9) (13.7) Total cash flows from operations (5.1) (8.2) Capital expenditures (0.8) (24.7) Other investing activities (5.9) (32.9) Cash flows from investing activities 7.6 19.4 Cash flows from financing activities Net increase (decrease) in cash (13.2) (27.2) 117.0 89.3 Beginning cash Effects of exchange rates on cash (4.9) 4.0 98.9 66.1 Ending cash28 in thousands

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