6-K
Ferroglobe PLC (GSM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of May 2023
Commission File Number: 001-37668
FERROGLOBE PLC
(Name of Registrant)
13 Chesterfield Street,
London W1J 5JN, United Kingdom
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F ☒ | Form 40-F ☐ |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
This Form 6-K consists of the following materials, which appear immediately following this page:
| ● | Press release dated May 9, 2023 announcing results for the quarter ended March 31, 2023 |
|---|---|
| ● | First quarter 2023 earnings call presentation |
| --- | --- |
This Form 6-K is being furnished for the purpose of incorporating by reference the information in this Form 6-K into (a) Registration Statement No. 333-208911 on Form S-8, (b) Registration Statement No. 333-259445 on Form F-3, (c) Registration Statement No. 333-258254 on Form F-3 and (d) Registration Statement No. 333-255973 on Form F-3 and related prospectuses, as such registration statements and prospectuses may be amended from time to time.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: May 9, 2023 | |
|---|---|
| FERROGLOBE PLC | |
| by | /s/ Marco Levi |
| Name: Marco Levi | |
| Title: Chief Executive Officer (Principal Executive Officer) |
****
Ferroglobe Reports First Quarter 2023 Financial Results
LONDON, May 9, 2023 (GLOBE NEWSWIRE) – Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announced financial results for the first quarter 2023.
FINANCIAL HIGHLIGHTS
| ● | Q1 2023 revenue of $400.9 million, down 11% over the prior quarter |
|---|---|
| ● | Q1 2023 adjusted EBITDA of $44.8 million, down 66% over the prior quarter |
| --- | --- |
| ● | Q1 2023 adjusted EBITDA margins were down at 11.2% versus 29.1% in the prior quarter and 33.7%% in Q1 2022 |
| --- | --- |
| ● | Q1 2023 Adjusted EPS was $.05 versus $.39 in Q4 and $.88 in Q1-22 |
| --- | --- |
| ● | Gross debt declined to $400 million, down from $450 million in Q4 and $518 in Q1-22 |
| --- | --- |
| ● | Net debt declined to $55 million, down from $127 million in Q4 and $342 in Q1-22 |
| --- | --- |
| ● | $100 million available from our ABL facility completely undrawn in Q1 |
| --- | --- |
| ● | Total cash increased to $344 million, up from $323 million in Q4-22 and $176 million in Q1-22 |
| --- | --- |
BUSINESS HIGHLIGHTS
| ● | Finalizing two multi-year power contracts in Spain to provide competitive source of renewable energy to ramp up Spanish footprint |
|---|---|
| ● | Investing in expansion of quartz mine in Spain to secure additional source of high quality quartz |
| --- | --- |
| ● | Signed letter of intent to acquire additional quartz mine |
| --- | --- |
| ● | Ready to start the third furnace in Polokwane resulting in total plant capacity of 55,000 tons |
| --- | --- |
| ● | Continue to focus on battery and solar opportunities |
| --- | --- |
Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “We ended the first quarter with the lowest net debt level in the Company’s history and are on target to achieve a positive net cash position in the next couple of quarters. This achievement was a result of well planned execution and our continued focus on optimizing our working capital. Ferroglobe is at its strongest financial position since its inception.
“While the current macroeconomic environment is challenging, we are successfully managing through it and focused on positioning the Company for long-term success. Vertical integration is an important part of our overall strategy, positioning Ferroglobe with a competitive advantage, enhancing our ability to control our supply chain and ensure access to quality materials. In line with this strategy, we are currently in the process of expanding our capacity of high quality quartz reserves. We are expanding our quartz mine in Spain and we have also signed a letter of intent to acquire a new high quality quartz mine. High quality quartz is the most important raw material used in the production of high purity silicon metal.
“We are finalizing two multi-year energy contracts that will provide us with access to 100% renewable energy at competitive rates. These contracts affirm our commitment to clean energy as well as enabling us to ramp up production in Spain.
“As we discussed on our fourth quarter earnings call, the market has weakened in the first quarter and we believe it is currently at trough levels. Global economic conditions remain challenging with weak overall pricing and soft demand. We expect some improvement in the second quarter, continuing into the second half, in line with our 2023 estimations. Accordingly, we are reiterating our guidance for the full year of adjusted EBITDA of $270 to $300 million,” concluded Dr. Levi.
First Quarter 2023 Financial Highlights
| | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Quarter Ended | Quarter Ended | | Quarter Ended | | % | | % | | | Twelve Months Ended | | ||||||||
| $,000 (unaudited) | | March 31, 2023 | | December 31, 2022 | | March 31, 2022 | | Q/Q | | Y/Y | | | December 31, 2022 | | ||||||
| | | | | | | | | | | | | | | | | | | | | |
| Sales | | $ | 400,868 | | $ | 448,625 | | $ | 715,265 | | | (11%) | | | (44%) | | | $ | 2,597,916 | |
| Raw materials and energy consumption for production | | $ | (255,036) | | $ | (289,572) | | $ | (340,555) | | | (20%) | | | (25%) | | | $ | (1,285,086) | |
| Energy consumption for production (PPA impact) | | | 23,193 | | | — | | | — | | | | | | | | | | — | |
| Operating profit (loss) | | $ | 44,454 | | $ | 29,696 | | $ | 211,130 | | | 50% | | | (79%) | | | $ | 660,547 | |
| Operating margin | | | 11.1% | | | 6.6% | | | 29.5% | | | | | | | | | | 25.4% | |
| Adjusted net income<br>attributable to the parent | | $ | 7,807 | | $ | 75,896 | | $ | 165,303 | | | (90%) | | | (95%) | | | $ | 572,630 | |
| Adjusted diluted EPS | | $ | 0.05 | | $ | 0.39 | | $ | 0.88 | | | | | | | | | $ | 3.04 | |
| Adjusted EBITDA | | $ | 44,767 | | $ | 130,442 | | $ | 241,119 | | | (66%) | | | (81%) | | | $ | 860,006 | |
| Adjusted EBITDA margin | | | 11.2% | | | 29.1% | | | 33.7% | | | | | | | | | | 33.1% | |
| Operating cash flow | | $ | 134,532 | | $ | 118,059 | | $ | 65,908 | | | 14% | | | 104% | | | $ | 405,018 | |
| Free cash flow^1^ | | $ | 117,240 | | $ | 103,507 | | $ | 56,783 | | | 13% | | | 106% | | | $ | 353,244 | |
| | | | | | | | | | | | | | | | | | | | | |
| Working Capital | | $ | 582,344 | | $ | 705,888 | | $ | 613,187 | | | (18%) | | | (5%) | | | $ | 705,888 | |
| Cash and Restricted Cash | | $ | 344,197 | | $ | 322,943 | | $ | 176,022 | | | 7% | | | 96% | | | $ | 322,943 | |
| Adjusted Gross Debt^2^ | | $ | 399,723 | | $ | 449,711 | | $ | 518,093 | | | (11%) | | | (23%) | | | $ | 459,620 | |
| Equity | | $ | 658,490 | | $ | 756,813 | | $ | 475,477 | | | (13%) | | | 38% | | | $ | 756,813 | |
| (1) | Free cash flow is calculated as operating cash flow plus investing cash flow | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| (2) | Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 at December 31, 2022 March 31, 2023 & March 31, 2022 | |||||||||||||||||||
| --- | --- |
Sales
In the first quarter of 2023, Ferroglobe reported net sales of $400.8 million, a decrease of 11% over the prior quarter and a decrease of 44% over the year-ago period. The decrease in our first quarter results is primarily attributable to lower volumes across our product portfolio, and lower pricing in our main products. The $48 million decrease in sales over the prior quarter was primarily driven by silicon metal, which accounted for $23 million of the decrease, and manganese-based alloys, which accounted for $29 million, partially offset by an increase in silicon-based alloys, which accounted for $9 million.
Raw materials and energy consumption for production
Raw materials and energy consumption for production was $231.8 million in the first quarter of 2023 versus $289.6 million in the prior quarter, a decrease of 20%. As a percentage of sales, raw materials and energy consumption for production was 58% in the first quarter of 2023 versus 65% in the prior quarter. This variance was mainly due to the change in the fair value of a short-term power purchase agreement (PPA) that finalized on April 30, 2023 to hedge energy prices in Spain.
Net Income (Loss) Attributable to the Parent
In the first quarter of 2023, net profit attributable to the parent was $21.0 million, or $0.11 per diluted share, compared to a net profit attributable to the parent of $6.2 million, or $0.03 per diluted share in the fourth quarter.
Adjusted EBITDA
In the first quarter of 2023, adjusted EBITDA was $44,8 million, or 11% of sales, a decrease of 66% compared to adjusted EBITDA of $130.4 million, or 29% of sales in the fourth quarter of 2022. The decrease in the first quarter of 2023 adjusted EBITDA as a percentage of sales decrease is primarily attributable to a decrease in sales volumes, prices, and the indirect CO2 and energy compensation in France in December 2022.
Total Cash
The total cash balance was $344.2 million as of March 31, 2023, up $21.3 million from $322.9 million as of December 31, 2022.
During the first quarter of 2023, we generated positive operating cash flow of $134.8 million, had negative cash flow from investing activities of $17.3 million, and $96.2 million in negative cash flow from financing activities.
Total Working Capital
Total working capital was $582.3 million at March 31, 2023, decreasing from $705.9 million at December 31, 2022. The $123.5 million decrease in working capital during the quarter was due to a decrease in trade and other receivables by $113.0 million and inventories by $83.0 million, partially offset by an increase in trade and other payables by $72.5 million.
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “During the first quarter, we followed through on our commitment to optimize working capital, with a total release of $131 million, driven by inventories and trade receivables. We continued to strengthen our balance sheet in the first quarter, achieving the lowest leverage in the company’s history with net debt of just $55 million. We expect continued improvement to our balance sheet and project to get to net debt positive in the next couple of quarters. With a strong balance sheet and improved cash flows, we are actively reviewing actions to optimize our capital structure and begin returning value to shareholders,” concluded Mrs. Garcia-Cos.
Product Category Highlights
Silicon Metal
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Quarter Ended | Quarter Ended | | | Quarter Ended | | | | Twelve Months Ended | | |||||||
| | | March 31, 2023 | | December 31, 2022 | | % Q/Q | | March 31, 2022 | | % Y/Y | | December 31, 2022 | | ||||
| Shipments in metric tons: | | | 36,942 | | | 39,459 | | (6.4)% | | | 56,349 | | (34.4)% | | | 209,342 | |
| Average selling price ($/MT): | | | 4,351 | | | 4,655 | | (6.5)% | | | 5,552 | | (21.6)% | | | 5,332 | |
| | | | | | | | | | | | | | | | | | |
| Silicon Metal Revenue ($,000) | | | 160,735 | | | 183,682 | | (12.5)% | | | 312,850 | | (48.6)% | | | 1,116,212 | |
| Silicon Metal Adj.EBITDA ($,000) | | | 31,120 | | | 89,064 | | (65.1)% | | | 151,661 | | (79.5)% | | | 529,355 | |
| Silicon Metal Adj.EBITDA Mgns | | | 19.4% | | | 48.5% | | | | | 48.5% | | | | | 47.4% | |
Silicon metal revenue in the first quarter was $160.7 million, a decrease of 12.5% over the prior quarter. The average realized selling price decreased by 6.5%, primarily due to a pricing market decline of 6.5% in the US and 8% in Europe. Total shipments decreased due to self-constraint of our European assets in response to the general demand slowdown. Adjusted EBITDA for silicon metal decreased to $31.1 million during the first quarter, a decrease of 65.1% compared with $89.1 million for the prior quarter. EBITDA margin in the quarter decreased mainly driven by the energy compensation in France in the fourth quarter of 2022.
Silicon-Based Alloys
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Quarter Ended | Quarter Ended | | | Quarter Ended | | | | Twelve Months Ended | | |||||||
| | | March 31, 2023 | | December 31, 2022 | | % Q/Q | | March 31, 2022 | | % Y/Y | | December 31, 2022 | | ||||
| Shipments in metric tons: | | | 49,100 | | | 39,847 | | 23.2% | | | 57,594 | | (14.7)% | | | 204,076 | |
| Average selling price ($/MT): | | | 2,756 | | | 3,182 | | (13.4)% | | | 3,680 | | (25.1)% | | | 3,694 | |
| | | | | | | | | | | | | | | | | | |
| Silicon-based Alloys Revenue ($,000) | | | 135,320 | | | 126,793 | | 6.7% | | | 211,946 | | (36.2)% | | | 753,857 | |
| Silicon-based Alloys Adj.EBITDA ($,000) | | | 21,924 | | | 37,102 | | (40.9)% | | | 78,411 | | (72.0)% | | | 257,144 | |
| Silicon-based Alloys Adj.EBITDA Mgns | | | 16.2% | | | 29.3% | | | | | 37.0% | | | | | 34.1% | |
Silicon-based alloy revenue in the first quarter was $135.3 million, an increase of 6.7% over the prior quarter. The shipments increase by 23.2%, triggered by the restart of blast furnaces taking advantage of low energy prices. Adjusted EBITDA for the silicon-based alloys portfolio decreased to $21.9 million in the first quarter of 2023, a decrease of 40.9% compared with $37.1 million for the prior quarter. EBITDA margin decreased in the quarter mainly due to the decrease in sale prices.
Manganese-Based Alloys
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Quarter Ended | Quarter Ended | | | Quarter Ended | | | | Twelve Months Ended | | |||||||
| | | March 31, 2023 | | December 31, 2022 | | % Q/Q | | March 31, 2022 | | % Y/Y | | December 31, 2022 | | ||||
| Shipments in metric tons: | | | 46,867 | | | 61,917 | | (24.3)% | | | 75,082 | | (37.6)% | | | 295,589 | |
| Average selling price ($/MT): | | | 1,316 | | | 1,466 | | (10.2)% | | | 1,925 | | (31.6)% | | | 1,778 | |
| | | | | | | | | | | | | | | | | | |
| Manganese-based Alloys Revenue ($,000) | | | 61,677 | | | 90,770 | | (32.1)% | | | 144,533 | | (57.3)% | | | 525,557 | |
| Manganese-based Alloys Adj.EBITDA ($,000) | | | 2,043 | | | 19,696 | | (89.6)% | | | 20,371 | | (90.0)% | | | 69,966 | |
| Manganese-based Alloys Adj.EBITDA Mgns | | | 3.3% | | | 21.7% | | | | | 14.1% | | | | | 13.3% | |
Manganese-based alloy revenue in the first quarter was $61.7 million, a decrease of 32.1% over the prior quarter. The average realized selling price decreased by 10.2% and total shipments decreased 24.3%. Adjusted EBITDA for the manganese-based alloys portfolio decreased to $2.0 million in the first quarter of 2023, a decrease of 89.6% compared with $19.9 million for the prior quarter. EBITDA margin in the quarter decreased mainly driven by the energy compensation in France in the fourth quarter of 2022.
Russia – Ukraine War
The ongoing war between Russia and Ukraine has disrupted supply chains and caused instability in the global economy, while the United States, United Kingdom and European Union, among other countries, announced sanctions against Russia. The ongoing conflict could result in the imposition of further economic sanctions against Russia. Sanctions imposed on coal and assimilated products such as anthracite and metallurgical coke have obliged Ferroglobe to redirect its sourcing of such products to other. New sourcing of carbon electrodes was put in place in 2022 allowing Ferroglobe to ensure supply continuity to its operations worldwide while maintaining compliance with applicable sanctions.
Conference Call
Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, Eastern Time on May 10, 2023. Please dial-in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast.
To join via phone: Conference call participants should pre-register using this link: https://register.vevent.com/register/BI80b8c060e88c4ab7abcef347366e2149 Once registered, you will receive the dial-in numbers and a personal PIN, which are required to access the conference call.
To join via webcast: A simultaneous audio webcast, and replay will be accessible here: https://edge.media-server.com/mmc/p/xkwnauwt
About Ferroglobe
Ferroglobe PLC is a leading global producer of silicon metal, silicon- and manganese- based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, electronics, automotive, consumer products, construction, and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof.
Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.
Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.
All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.
Non-IFRS Measures
This document may contain summarized, non-audited or non-GAAP financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Adjusted EBITDA, adjusted EBITDA as a percentage of sales, working capital as a percentage of sales, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital, adjusted gross debt and net debt, are non-IFRS financial metrics that management uses in its decision making. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important and useful to investors because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.
INVESTOR CONTACT:
Anis Barodawalla Executive Vice President – Investor Relations Email: investor.relations@ferroglobe.com
MEDIA CONTACT:
Cristina Feliu Roig
Executive Director – Communications & Public Affairs
Email: corporate.comms@ferroglobe.com
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Income Statement
(in thousands of U.S. dollars, except per share amounts)
| | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarter Ended | | Quarter Ended | Quarter Ended | Twelve Months Ended | | | ||||||
| | March 31, 2023 | December 31, 2022 | | March 31, 2022 | | December 31, 2022 | | | ||||||
| Sales | $ | 400,868 | $ | 448,625 | | $ | 715,265 | | $ | 2,597,916 | | | ||
| Raw materials and energy consumption for production | | (255,036) | | (289,572) | | | (340,555) | | | (1,285,086) | | | ||
| Energy consumption for production (PPA impact) | | | 23,193 | | | — | | | — | | | — | | |
| Other operating income | | 14,814 | | 78,414 | | | 23,008 | | | 147,356 | | | ||
| Staff costs | | (67,543) | | (76,431) | | | (81,986) | | | (314,810) | | | ||
| Other operating expense | | (54,145) | | (54,129) | | | (83,176) | | | (346,252) | | | ||
| Depreciation and amortization charges, operating allowances and write-downs | | (17,990) | | (20,547) | | | (21,109) | | | (81,559) | | | ||
| Impairment (losess) gain | | | 246 | | | (56,999) | | | — | | | (56,999) | | |
| Other gain (loss) | | | 47 | | | 335 | | | (317) | | | (19) | | |
| Operating profit | | | 44,454 | | | 29,696 | | | 211,130 | | | 660,547 | | |
| Net finance expense | | (10,980) | | (16,830) | | | (12,455) | | | (58,741) | | | ||
| Exchange differences | | 1,455 | | 4,051 | | | (4,393) | | | (9,995) | | | ||
| Profit before tax | **** | | 34,929 | **** | | 16,917 | | | 194,282 | | | 591,811 | | |
| Income tax (loss) | | (9,461) | | (7,775) | | | (43,495) | | | (147,983) | | | ||
| Profit for the period | | | 25,468 | | | 9,142 | | | 150,787 | | | 443,828 | | |
| Profit (loss) attributable to non-controlling interest | | (4,477) | | (2,943) | | | 376 | | | (3,514) | | | ||
| Profit attributable to the parent | $ | 20,991 | $ | 6,199 | | $ | 151,163 | | $ | 440,314 | | | ||
| | | | | | | | | | | | | | ||
| | | | | | | | | | | | | | | |
| EBITDA | | $ | 62,444 | | $ | 50,243 | | $ | 232,239 | | $ | 742,106 | | |
| Adjusted EBITDA | | $ | 44,767 | | $ | 130,442 | | $ | 241,119 | | $ | 860,006 | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | | | | | | | |
| Basic | | | 187,873 | | | 187,523 | | | 187,408 | | | 187,816 | | |
| Diluted | | | 189,629 | | | 188,949 | | | 188,583 | | | 189,625 | | |
| | | | | | | | | | | | | | | |
| Profit (loss) per ordinary share | | | | | | | | | | | | | | |
| Basic | | $ | 0.11 | | $ | 0.03 | | $ | 0.81 | | $ | 2.34 | | |
| Diluted | | $ | 0.11 | | $ | 0.03 | | $ | 0.80 | | $ | 2.32 | | |
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| | | March 31, | | December 31, | | March 31, | ||||
| | 2023 | 2022 | 2022 | |||||||
| ASSETS | ||||||||||
| Non-current assets | | | | | | | | | | |
| Goodwill | | $ | | 29,702 | | $ | 29,702 | | $ | 29,702 |
| Other intangible assets | | | | 223,447 | | | 111,797 | | | 188,407 |
| Property, plant and equipment | | | | 497,557 | | | 486,247 | | | 548,862 |
| Other non-current financial assets | | | | 14,702 | | | 14,186 | | | 3,977 |
| Deferred tax assets | | | | 7,123 | | | 7,136 | | | 246 |
| Non-current receivables from related parties | | | | 2,915 | | | 1,600 | | | 1,665 |
| Other non-current assets | | | | 19,297 | | | 18,218 | | | 18,819 |
| Non-current restricted cash and cash equivalents | | | | 2,175 | | | 2,133 | | | 2,220 |
| Total non-current assets | | | | 796,918 | | | 671,019 | | | 793,898 |
| Current assets | | | | | | | | | | |
| Inventories | | | | 417,042 | | | 500,080 | | | 362,298 |
| Trade and other receivables | | | | 312,452 | | | 425,474 | | | 499,953 |
| Current receivables from related parties | | | | 2,728 | | | 2,675 | | | 2,784 |
| Current income tax assets | | | | 7,652 | | | 6,104 | | | 408 |
| Other current financial assets | | | | 2 | | | 3 | | | 203 |
| Other current assets | | | | 26,914 | | | 30,608 | | | 11,838 |
| Assets and disposal groups classified as held for sale | | | | 1,088 | | | 1,067 | | | — |
| Current restricted cash and cash equivalents | | | | 2,411 | | | 2,875 | | | — |
| Cash and cash equivalents | | | | 339,611 | | | 317,935 | | | 173,802 |
| Total current assets | | | | 1,109,900 | | | 1,286,821 | | | 1,051,286 |
| Total assets | | $ | | 1,906,818 | | $ | 1,957,840 | | $ | 1,845,184 |
| | | | | | | | | | | |
| EQUITY AND LIABILITIES | ||||||||||
| Equity | | $ | | 658,490 | | $ | 756,813 | | $ | 475,477 |
| Non-current liabilities | | | | | | | | | | |
| Deferred income | | | | 128,125 | | | 3,842 | | | 70,699 |
| Provisions | | | | 50,937 | | | 47,670 | | | 57,858 |
| Bank borrowings | | | | 15,590 | | | 15,774 | | | 3,360 |
| Lease liabilities | | | | 11,744 | | | 12,942 | | | 10,636 |
| Debt instruments | | | | 304,621 | | | 330,655 | | | 404,954 |
| Other financial liabilities | | | | 39,276 | | | 38,279 | | | 38,674 |
| Other Obligations | | | | 36,310 | | | 37,502 | | | 37,241 |
| Other non-current liabilities | | | | 22 | | | 12 | | | — |
| Deferred tax liabilities | | | | 35,272 | | | 35,854 | | | 35,423 |
| Total non-current liabilities | | | | 621,897 | | | 522,530 | | | 658,845 |
| Current liabilities | | | | | | | | | | |
| Provisions | | | | 146,501 | | | 145,507 | | | 159,386 |
| Bank borrowings | | | | 31,462 | | | 62,059 | | | 95,359 |
| Lease liabilities | | | | 7,492 | | | 8,929 | | | 7,869 |
| Debt instruments | | | | 4,688 | | | 12,787 | | | 6,382 |
| Other financial liabilities | | | | 43,950 | | | 60,382 | | | 62,141 |
| Financial Instruments | | | | 79,331 | | | — | | | — |
| Payables to related parties | | | | 2,377 | | | 1,790 | | | 8,685 |
| Trade and other payables | | | | 147,150 | | | 219,666 | | | 249,064 |
| Current income tax liabilities | | | | 48,326 | | | 53,234 | | | 21,208 |
| Other Obligations | | | | 18,790 | | | 9,580 | | | 18,369 |
| Other current liabilities | | | | 96,364 | | | 104,563 | | | 82,399 |
| Total current liabilities | | | | 626,431 | | | 678,497 | | | 710,862 |
| Total equity and liabilities | | $ | | 1,906,818 | | $ | 1,957,840 | | $ | 1,845,184 |
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarter Ended | Quarter Ended | Quarter Ended | | Twelve Months Ended | | | | ||||||
| | March 31, 2023 | | December 31, 2022 | | March 31, 2022 | | December 31, 2022 | | | | |||||
| Cash flows from operating activities: | | | | | | | | | | | | | | | |
| Profit for the period | | $ | 25,468 | | $ | 9,142 | | $ | 150,787 | | $ | 443,828 | | | |
| Adjustments to reconcile net (loss) profit to net cash used by operating activities: | | | | | | | | | | | | | | | |
| Income tax (benefit) expense | | | 9,461 | | | 7,775 | | | 43,495 | | | 147,983 | | | |
| Depreciation and amortization charges, <br>operating allowances and write-downs | | | 17,990 | | | 20,547 | | | 21,109 | | | 81,559 | | | |
| Net finance expense | | | 10,980 | | | 16,830 | | | 12,455 | | | 58,741 | | | |
| Exchange differences | | | (1,455) | | | (4,051) | | | 4,393 | | | 9,995 | | | |
| Impairment losses | | | (246) | | | 56,999 | | | — | | | 56,999 | | | |
| Net loss (gain) due to changes in the value of asset | | | (25) | | | (209) | | | (6) | | | (349) | | | |
| Gain on disposal of non-current assets | | | (22) | | | (120) | | | 302 | | | 459 | | | |
| Share-based compensation | | | 1,905 | | | 1,941 | | | 1,807 | | | 5,836 | | | |
| Other adjustments | | | — | | | (6) | | | 21 | | | (91) | | | |
| Changes in operating assets and liabilities | | | | | | | | | | | | — | | | |
| (Increase) decrease in inventories | | | 86,275 | | | 41,566 | | | (73,611) | | | (220,823) | | | |
| (Increase) decrease in trade receivables | | | 118,714 | | | 14,518 | | | (121,767) | | | (72,558) | | | |
| Increase (decrease) in trade payables | | | (73,864) | | | (130) | | | 40,073 | | | 30,640 | | | |
| Other | | | (44,100) | | | (10,288) | | | (12,463) | | | (56,677) | | | |
| Income taxes paid | | | (16,298) | | | (36,455) | | | (687) | | | (80,524) | | | |
| Net cash provided (used) by operating activities | | | 134,783 | | | 118,059 | | | 65,908 | | | 405,018 | | | |
| Cash flows from investing activities: | | | | | | | | | | | | | | | |
| Interest and finance income received | | | 668 | | | 257 | | | 68 | | | 1,520 | | | |
| Payments due to investments: | | | | | | | | | | | | | | | |
| Other intangible assets | | | — | | | (918) | | | — | | | (1,147) | | | |
| Property, plant and equipment | | | (17,960) | | | (13,891) | | | (9,193) | | | (52,153) | | | |
| Other | | | — | | | — | | | — | | | 6 | | | |
| Net cash (used) provided by investing activities | | | (17,292) | | | (14,552) | | | (9,125) | | | (51,774) | | | |
| Cash flows from financing activities: | | | | | | | | | | | | | | | |
| Payment for debt and equity issuance costs | | | — | | | (60) | | | — | | | (853) | | | |
| Repayment of debt instruments | | | (26,283) | | | — | | | (4,943) | | | (111,106) | | | |
| Increase/(decrease) in bank borrowings: | | | | | | | | | | | | — | | | |
| Borrowings | | | 109,762 | | | 158,607 | | | 244,164 | | | 898,586 | | | |
| Payments | | | (141,900) | | | (168,230) | | | (237,627) | | | (919,932) | | | |
| Amounts paid due to leases | | | (2,247) | | | (4,383) | | | (2,518) | | | (11,590) | | | |
| Proceeds from other financing liabilities | | | — | | | — | | | — | | | 38,298 | | | |
| Other amounts received/(paid) due to financing activities | | | (17,377) | | | — | | | 38,298 | | | 678 | | | |
| Interest paid | | | (18,192) | | | (3,569) | | | (34,799) | | | (60,822) | | | |
| Net cash (used) provided by financing activities | | | (96,237) | | | (17,635) | | | 2,575 | | | (166,741) | | | |
| Total net cash flows for the period | | | 21,254 | | | 85,872 | | | 59,358 | | | 186,503 | | | |
| Beginning balance of cash and cash equivalents | | | 322,943 | | | 236,789 | | | 116,663 | | | 116,663 | | | |
| Exchange differences on cash and <br>cash equivalents in foreign currencies | | | — | | | 282 | | | 1 | | | (6,506) | | | |
| Ending balance of cash and cash equivalents | | $ | 344,197 | | $ | 322,943 | | $ | 176,022 | | $ | 296,660 | | | |
| Cash from continuing operations | | | 339,611 | | | 317,935 | | | 173,802 | | | 317,935 | | | |
| Current/Non-current restricted cash and cash equivalents | | | 4,586 | | | 5,008 | | | 2,220 | | | 5,008 | | | |
| Cash and restricted cash in the statement of financial position | | $ | 344,197 | | $ | 322,943 | | $ | 176,022 | | $ | 322,943 | | | |
Adjusted EBITDA ($,000):
| | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarter Ended | Quarter Ended | Quarter Ended | | Twelve Months Ended | | ||||||
| | March 31, 2023 | | December 31, 2022 | | March 31, 2022 | | December 31, 2022 | | |||||
| Profit attributable to the parent | | $ | 20,991 | | $ | 6,199 | | $ | 151,163 | | $ | 440,314 | |
| Profit (loss) attributable to non-controlling interest | | | 4,477 | | | 2,943 | | | (376) | | | 3,514 | |
| Income tax expense | | | 9,461 | | | 7,775 | | | 43,495 | | | 147,983 | |
| Net finance expense | | | 10,980 | | | 16,830 | | | 12,455 | | | 58,741 | |
| Exchange differences | | | (1,455) | | | (4,051) | | | 4,393 | | | 9,995 | |
| Depreciation and amortization charges, operating allowances and write-downs | | | 17,990 | | | 20,547 | | | 21,109 | | | 81,559 | |
| EBITDA | | | 62,444 | | | 50,243 | | | 232,239 | | | 742,106 | |
| Impairment | | | (246) | | | 56,999 | | | — | | | 56,999 | |
| Restructuring and termination costs | | | — | | | — | | | 5,909 | | | 9,315 | |
| New strategy implementation | | | 2,049 | | | 4,442 | | | 2,971 | | | 29,032 | |
| Pension Plan buyout | | | — | | | — | | | — | | | — | |
| Subactivity | | | 3,713 | | | 5,653 | | | — | | | 9,449 | |
| PPA Energy | | | (23,193) | | | — | | | — | | | — | |
| Prior periods (loss) | | | — | | | 13,105 | | | — | | | 13,105 | |
| Adjusted EBITDA | | $ | 44,767 | | $ | 130,442 | | $ | 241,119 | | $ | 860,006 | |
Adjusted profit attributable to Ferroglobe ($,000):
| | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarter Ended | Quarter Ended | Quarter Ended | | Twelve Months Ended | | ||||||
| | March 31, 2023 | | December 31, 2022 | | March 31, 2022 | | December 31, 2022 | | |||||
| Profit attributable to the parent | | $ | 20,991 | | $ | 6,199 | | $ | 151,163 | | $ | 440,314 | |
| Tax rate adjustment | | | (599) | | | 4,591 | | | 6,931 | | | 36,604 | |
| Impairment | | | (175) | | | 46,272 | | | — | | | 46,272 | |
| Restructuring and termination costs | | | — | | | — | | | 4,797 | | | 7,562 | |
| New strategy implementation | | | 1,459 | | | 3,606 | | | 2,412 | | | 23,568 | |
| Pension Plan buyout | | | — | | | — | | | — | | | — | |
| Subactivity | | | 2,644 | | | 4,589 | | | — | | | 7,671 | |
| PPA Energy | | | (16,513) | | | — | | | — | | | — | |
| Prior periods (loss) | | | — | | | 10,639 | | | — | | | 10,639 | |
| Adjusted profit attributable to the parent | | $ | 7,807 | | $ | 75,896 | | $ | 165,303 | | $ | 572,630 | |
Adjusted diluted profit per share:
| | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarter Ended | Quarter Ended | Quarter Ended | | Twelve Months Ended | | ||||||
| | March 31, 2023 | | December 31, 2022 | | March 31, 2022 | | December 31, 2022 | | |||||
| Diluted profit per ordinary share | | $ | 0.11 | | $ | 0.03 | | $ | 0.80 | | $ | 2.32 | |
| Tax rate adjustment | | | (0.00) | | | 0.02 | | | 0.04 | | | 0.19 | |
| Impairment | | | (0.00) | | | 0.24 | | | — | | | 0.26 | |
| Restructuring and termination costs | | | — | | | — | | | 0.03 | | | 0.04 | |
| New strategy implementation | | | 0.01 | | | 0.02 | | | 0.01 | | | 0.13 | |
| Subactivity | | | 0.01 | | | 0.02 | | | — | | | 0.04 | |
| PPA Energy | | | (0.09) | | | — | | | — | | | — | |
| Prior periods (loss) | | | — | | | 0.06 | | | — | | | 0.06 | |
| Adjusted diluted profit per ordinary share | | $ | 0.05 | | $ | 0.39 | | $ | 0.88 | | $ | 3.04 | |
| Advancing Materials Innovation<br>NASDAQ: GSM<br>First Quarter 2023<br>Results<br>May 10th, 2023 |
|---|
| Forward-Looking Statements and<br>non-IFRS Financial Metrics<br>2<br>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,<br>as amended. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe our future plans, strategies and expectations. Forward-looking statements can<br>generally be identified by the use of forward-looking terminology, including, but not limited to, "may," “could,” “seek,” “guidance,” “predict,” “potential,” “likely,” "believe," "will," "expect," "anticipate," "estimate,"<br>"plan," "intend," "forecast," “aim,” “target,” or variations of these terms and similar expressions, or the negative of these terms or similar expressions.<br>Forward-looking statements contained in this presentation are based on information presently available to Ferroglobe PLC (“we,” “us,” “Ferroglobe,” the “Company” or the “Parent”) and assumptions that we believe<br>to be reasonable, but are inherently uncertain. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not<br>guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control.<br>You are cautioned that all such statements involve risks and uncertainties, including without limitation, risks that Ferroglobe will not successfully integrate the businesses of Globe Specialty Metals, Inc. and Grupo<br>FerroAtlántica SAU, that we will not realize estimated cost savings, value of certain tax assets, synergies and growth, and/or that such benefits may take longer to realize than expected. Important factors that may<br>cause actual results to differ include, but are not limited to: (i) risks relating to unanticipated costs of integration, including operating costs, customer loss and business disruption being greater than expected; (ii) our<br>organizational and governance structure; (iii) the ability to hire and retain key personnel; (iv) regional, national or global political, economic, business, competitive, market and regulatory conditions including, among<br>others, changes in metals prices; (v) increases in the cost of raw materials or energy; (vi) competition in the metals and foundry industries; (vii) environmental and regulatory risks; (viii) ability to identify liabilities<br>associated with acquired properties prior to their acquisition; (ix) ability to manage price and operational risks including industrial accidents and natural disasters; (x) ability to manage foreign operations; (xi) changes<br>in technology; (xii) ability to acquire or renew permits and approvals; (xiii) changes in legislation or governmental regulations affecting Ferroglobe; (xiv) conditions in the credit markets; (xv) risks associated with<br>assumptions made in connection with critical accounting estimates and legal proceedings; (xvi) Ferroglobe's international operations, which are subject to the risks of currency fluctuations and foreign exchange<br>controls; and (xvii) the potential of international unrest, economic downturn or effects of currencies, tax assessments, tax adjustments, anticipated tax rates, raw material costs or availability or other regulatory<br>compliance costs. The foregoing list is not exhaustive.<br>You should carefully consider the foregoing factors and the other risks and uncertainties that affect our business, including those described in the “Risk Factors” section of our, Annual Reports on Form 20-F, Current<br>Reports on Form 6-K and other documents we file from time to time with the United States Securities and Exchange Commission. We do not give any assurance (1) that we will achieve our expectations or (2)<br>concerning any result or the timing thereof, in each case, with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, consent decree, cost reductions,<br>business strategies, earnings or revenue trends or future financial results. Forward- looking financial information and other metrics presented herein represent our key goals and are not intended as guidance or<br>projections for the periods presented herein or any future periods.<br>We do not undertake or assume any obligation to update publicly any of the forward-looking statements in this presentation to reflect actual results, new information or future events, changes in assumptions or<br>changes in other factors affecting forward-looking statements. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other<br>forward-looking statements. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this presentation.<br>Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital, adjusted gross debt and net debt, are non-IFRS financial metrics that, we believe, are pertinent measures of<br>Ferroglobe’s success. The Company has included these financial metrics to provide supplemental measures of its performance. We believe these metrics are important because they eliminate items that have less<br>bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.<br>For additional information, including a reconciliation of the differences between such non-IFRS financial measures and the comparable IFRS financial measures, refer to the press release dated May 9, 2023<br>accompanying this presentation, which is incorporated by reference herein. |
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| Q1 Business Review |
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| OPENING REMARKS<br>4<br>BUSINESS HIGHLIGHTS<br>$401 million<br>SALES<br>11% Q/Q decrease<br>$45 million<br>ADJ. EBITDA<br>66% Q/Q decrease<br>11%<br>ADJ. EBITDA MARGIN<br>18% decrease Q/Q<br>$25 million<br>NET INCOME<br>$0.11 EPS<br>267% increase Q/Q<br>$55 million<br>NET DEBT<br>57% decrease Q/Q<br>Q1 FINANCIAL HIGHLIGHTS<br>$344 million<br>CASH EQUIVALENTS<br>7% increase Q/Q<br>REITERATE 2023 ADJUSTED EBITDA GUIDANCE<br>$270 – $300 MILLION Implemented targeted actions to generate strong free cash flow<br>Released $131 million in working capital driven by efficient management of<br>inventories and trade receivables<br>Approaching net cash positive<br>Continued improvement to balance sheet with cash increasing to $344 million<br>and net debt declining to $55 million, down 57% Q/Q<br>Finalizing long-term power agreements in Spain<br>Competitive multi-year power agreements will enable resumption of full<br>operations in Spain utilising 100% renewable energy<br>Well positioned to capitalize on strong growth prospects in<br>battery and solar opportunities<br>• Onshoring trend continues to drive criticality of high purity silicon metal outside<br>of China used in the production of Solar technology and batteries<br>• Silicon metal increasingly replacing graphite in electric vehicle batteries<br>PROACTIVELY EXECUTING IN CHALLENGING MARKET ENVIRONMENT |
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| 1,500<br>2,500<br>3,500<br>4,500<br>5,500<br>6,500<br>7,500<br>8,500<br>9,500<br>10,500<br>11,500<br>US CRU spot - import EU CRU spot (5.5.3)<br>• Silicon metal generated $31 million adjusted EBITDA by proactively<br>managing assets in a challenging market<br>• Volumes down 6.4%, due to shutdown in France as a result of our French<br>energy agreement. Expect volumes to increase significantly as France<br>resumes operations; and new incremental sales to Asia and Middle East<br>• Average realized price down 6.5%, driven by lower market indexes in US<br>and Europe<br>• Costs were negatively impacted by lower energy compensation and<br>increased idling costs<br>• Positive signals in automotive. Chemical sector facing challenges driven<br>by weak macroeconomic environment and oversupply in China<br>5<br>Sequential quarters Adj. EBITDA evolution ($m)<br>Index pricing trends ($/mt) Volume trends<br>67,322<br>61,713 63,681 56,349 62,988<br>50,545<br>39,459 36,942<br>Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23<br>PRODUCT CATEGORY SNAPSHOT<br>Silicon Metal |
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| • Silicon-based alloys generated $22 million adjusted EBITDA driven by<br>higher volumes<br>• Weak demand in standard grades offset by strong specialty grades<br>and foundry sales as a result of our strong leadership position<br>• Volumes increased by 23.2% Q/Q as a result of steel manufacturers<br>restarting capacity and growth in electrical steel<br>• Avg. realized selling prices declined by 13.4% Q/Q due to a change in<br>the product mix and the lag in the index price, primarily in the US<br>• Costs were negatively impacted by lower energy and CO2<br>compensation<br>• Continued caution in steel due to weak fundamentals in construction<br>PRODUCT CATEGORY SNAPSHOT<br>Silicon-Based Alloys<br>6<br>65,222 55,863 60,078 57,594 57,658 48,977 39,847 49,100<br>Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23<br>500<br>1,500<br>2,500<br>3,500<br>4,500<br>5,500<br>FeSi US CRU spot - import FeSi EU CRU spot<br>Sequential quarters Adj. EBITDA evolution ($m)<br>Index pricing trends ($/mt) Volume trends |
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| PRODUCT CATEGORY SNAPSHOT<br>Manganese-Based Alloys<br>7<br>68,323 76,454<br>97,053<br>75,082<br>97,007<br>61,583 61,917<br>46,867<br>Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23<br>800<br>1,300<br>1,800<br>2,300<br>High-carbon ferromanganese EU CRU spot Silico-manganese EU CRU spot<br>• Manganese-based alloys generated $2 million adjusted EBITDA by<br>proactively managing assets in a challenging market (despite the<br>narrowing in Mn spreads)<br>• Volumes decreased 24.3% Q/Q due to shutdown in France as a result<br>of our French energy agreement. Volumes expected to increase as<br>France resumes operations<br>• Avg. realized selling price declined 10.2% Q/Q due to low costs Indian<br>imports and weak demand<br>• Costs were negatively impacted by the earn-out provision, lower<br>energy and CO2 compensation, partially offset by raw material costs<br>• Continued caution in steel due to weak fundamentals in construction<br>Index pricing trends ($/mt) Volume trends<br>Sequential quarters Adj. EBITDA evolution ($m) |
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| Q1 Financial Review |
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| INCOME STATEMENT SUMMARY<br>Q1-23 VS. Q4-22<br>9<br>• Solid adjusted EBITDA margins relative to<br>historical levels, in-line with our<br>expectations for 2023<br>• Other operating income declined in Q1<br>vs. Q4-22 due to lower income from<br>energy compensation in France<br>• Lower production in France is driving a<br>reduction in staff related expenses<br>• Energy consumption reflects fair value<br>gains on short term energy hedging<br>instruments<br>• Finance expense continues to decrease<br>as a result of lower debt levels<br>Consolidated Income Statement ($'000) Q1-23 Q4-22 Q1-22 Q1/ Q4<br>Sales 400,868 448,625 715,265 (11%)<br>Raw materials and energy consumption for production (255,036) (289,572) (340,555) 12%<br>Energy consumption (PPA impact) 23,193 - - -<br>Raw materials / sales % (excluding PPA) 64% 63% 163% 112%<br>Raw materials / sales % 58% - - -<br>Other operating incomes 14,814 78,414 23,008 (81%)<br>Staff costs (67,543) (76,431) (81,986) 12%<br>Other operating expense (54,145) (54,129) (83,176) (0%)<br>Depreciation and amortization (17,990) (20,547) (21,109) 12%<br>Impairment loss (gain) 246 (56,999) - 100%<br>Operating profit/(loss) before adjustments 44,407 29,361 211,447 51%<br>Others 47 335 (317) (86%)<br>Operating profit/(loss) 44,454 29,696 211,130 50%<br>Net finance expense (10,980) (16,830) (12,455) 35%<br>FX differences & other gains/losses 1,455 4,051 (4,393) (64%)<br>Profit (loss) before tax 34,929 16,917 194,282 106%<br>Income tax (9,461) (7,775) (43,495) (22%)<br>Profit (loss) 25,468 9,142 150,787 179%<br>Profit/(loss) attributable to non-controlling interest (4,477) (2,943) 376 (52%)<br>Profit (loss) attributable to the parent 20,991 6,199 151,163 239%<br>EBITDA 62,444 50,243 232,239 24%<br>Adjusted EBITDA 44,767 130,442 241,119 (66%)<br>Adjusted EBITDA % 11% 29% 34% |
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| ADJUSTED EBITDA BRIDGE<br>Q1-23 VS. Q4-22 ($m)<br>10<br>• Average selling prices across core products decreased (4.5)%<br>– Silicon Metal (6.5)%, Silicon-based alloys (13.4)% and Mn-based alloys (10.2)%<br>• Volume across core products decreased (5.8)%<br>– Silicon Metal (6.4)%, Si-based alloys 23.2% and Mn-based alloys (24.3)%<br>• Cost impacted by lower energy and CO2 compensation $(40) million, an increase in idling costs due to lower production in France during Q1 $(9)<br>million and annual maintenance $(10) million, partially offset by lower raw material costs of $18 million |
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| 518 500<br>431 450<br>400<br>342<br>194 194<br>127<br>55<br>Q1-22 Q2-22 Q3-22 Q4-22 Q1-23<br>Gross Debt Net Debt<br>176<br>307<br>237<br>323 344<br>Q1-22 Q2-22 Q3-22 Q4-22 Q1-23<br>Cash trends ($m) Adjusted gross and net debt ($m)<br>CASH AND DEBT EVOLUTION<br>11<br>• Aiming a positive net cash position in the next couple of quarters<br>• Net debt reduction of $72 million, as a result of cash generated in the quarter<br>• Adjusted gross debt decreased by $50 million, driven by incremental buyback of Senior Notes and partial repayment of a Spanish<br>Government loan |
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| CASH FLOW SUMMARY<br>12<br>(1) Free cash flow is calculated as operating cash flow plus investing cash flow<br>(2) EBITDA excludes the PPA Fair Value<br>($’000) Q1-23 Q4-22 Q1-22<br>EBITDA 39,251 (2) 50,243 232,239<br>Non-cash items (37,984) 20,815 2,204<br>Changes in Working Capital 131,125 55,954 (155,305)<br>CO2 and Others 18,689 27,502 (12,543)<br>Less Cash Tax Payments (16,298) (36,455) (687)<br>Operating cash flow 134,783 118,059 65,908<br>Cash-flow from Investing Activities (17,292) (14,552) (9,125)<br>Cash-flow from Financing Activities (96,237) (17,635) 2,575<br>Net cash flow 21,254 85,872 59,358<br>Total cash * (Beginning Bal.) 322,943 236,789 116,663<br>Exchange differences on cash and cash equivalents in foreign currencies - 282 1<br>Total cash * (Ending Bal.) 344,197 322,943 176,022<br>Free cash flow (1) 117,491 103,507 57,123<br>• Strong operating and free cash flow driven by working capital releases<br>• Debt reduction strategy continued through the quarter with additional $26 million of 9 3/8% Senior Notes buyback and<br>a partial repayment of $17m of a Spanish Government loan<br>• Non-cash items includes the mark-to-market earn-out provision for the Mn-alloys segment and other provisions<br>Key cash flow highlights |
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| Corporate Updateb |
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| GENERAL CORPORATE UPDATE<br>14<br>Ferroglobe is in the final stages of completing new long-term power agreements in Spain utilizing 100% renewable energy<br>• --- A major step towards our goal of reducing our carbon footprint<br>• --- Competitive pricing enables Ferroglobe to restart its Spanish operations, providing stable energy prices<br>3<br>2<br>1<br>New vertically integrated quartz capacity underway<br>• --- Signed Letter of Intent to acquired new quartz mine<br>• --- 300 Kt expansion of extremely high quality quartz at Serrabal mine in Spain<br>Strategy Execution: Winning as One Ferroglobe<br>• --- Engaging with Top 400 leaders over the past two months on strategy and culture transformation<br>• --- Successful in engaging the workforce and positioning the company to accelerate strategy as One Ferroglobe |
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| Q&A |
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| Appendix ─ Supplemental Information |
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| QUARTERLY SALES AND ADJUSTED EBITDA<br>17<br>34 86 86<br>241<br>303<br>185 130<br>45<br>Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23<br>Adjusted EBITDA<br>Quarterly Sales<br>$ millions Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023<br>Silicon Metal 158 152 187 313 356 264 184 161<br>Silicon Alloys 119 111 166 212 236 179 127 137<br>Mn Alloys 97 121 167 144 193 97 97 62<br>Other Business 45 43 50 46 56 53 40 41<br>Total Revenue 419 429 570 715 841 593 448 401 |
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| Adjusted gross debt<br>March-23<br>18<br>Notes:<br>1. Operating leases are excluded for comparison purposes and to align to the balance sheet prior to<br>IFRS16 adoption<br>2. LBP and Bankinter Factoring excluded for comparison purposes<br>3. Other bank loans relates to COVID-19 relief loan received in France guaranteed by the French<br>Government<br>4. Other government loans include primarily COVID-19 relief loan received in Canada from the<br>Government for $5.0 million<br>5. SEPI loans are part of the SEPI fund intended to provide assistance to non-financial companies<br>operating in strategically important sectors within Spain in the wake of the COVID-19 pandemic<br>6. NMTC program is a federal tax credit to help economically distressed communities attract private<br>capital. Ferroglobe invested $9 million in the funding vehicle and net position is presented above<br>($´000)<br>Current Non-current Total balance sheet Less operating leases1 Less LBP Factoring2 Less Bankinter Factoring3 Netting NMTC Gross debt<br>Bank<br>borrowings 31,462 15,590 47,052 - (23,537) (6,848) (9,909) 6,758<br>Lease liabilities 7,492 11,744 19,236 (18,805) - - - 431<br>Debt<br>instruments 4,688 304,621 309,309 - - - - 309,309<br>Other financial<br>liabilities 43,950 39,276 83,226 - - - - 83,226<br>Total 166,923 371,231 538,154 (18,805) (23,537) (6,848) (9,909) 399,723<br>($´000) Gross debt Nominal<br>Bank borrowings:<br>PGE (3) 3,292 3,292<br>NMTC (6) 3,321 3,321<br>Others 145 145<br>6,758 6,758<br>Finance leases:<br>Other finance leases 431 431<br>431 431<br>Debt instruments:<br>Reinstated Senior<br>Notes 349,359 345,057<br>Repurchase Bond (44,738) (44,738)<br>Accrued coupon<br>interest Repurchase<br>Bond<br>(704) (704)<br>Accrued coupon<br>interest 5,392 5,392<br>309,309 305,007<br>Other financial<br>liabilities:<br>Reindus loan 42,760 42,760<br>SEPI (5) 35,117 35,117<br>Canada an others<br>loans (4) 5,349 5,349<br>83,226 83,226<br>Total 399,723 395,422 |
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| THANK<br>YOU<br>www.ferroglobe.com<br>19 |
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