6-K 1 form6k2q2017.htm FORM 6-K Q2 2017
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 August, 2017
Commission File Number: 001-37668
FERROGLOBE PLC
(Name of Registrant)
2nd Floor West Wing, Lansdowne House
57 Berkeley Square
London, W1J 6ER
(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): ☐
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

This Form 6-K consists of the following materials, which appear immediately following this page:
• Press release dated August 29, 2017 announcing results for the quarter ended June 30, 2017
• Second quarter earnings call presentation

Ferroglobe Reports Results for Second Quarter 2017

· | Q2 2017 revenue of $425.8 million, up 8% from $396.0 million in Q1 20171

· | Q2 2017 net profit of $1.0 million, or $0.02 per share on a fully diluted basis, up from a net loss of $(8.1) million, or a $(0.04) loss per share on a fully diluted basis, in the prior quarter

· | Q2 2017 adjusted net profit attributable to the parent of $6.0 million, or $0.05 per share on a fully diluted basis, compared to a net loss attributable to the parent of $(4.8) million, or $(0.03) per share on a fully diluted basis

· | Q2 2017 reported EBITDA of $36.8 million, an increase of 19% compared to reported EBITDA of $30.9 million in Q1 2017

· | Q2 2017 adjusted EBITDA of $43.9 million, an increase of 42% compared to $30.9 million adjusted EBITDA in the prior quarter

· | Maintained strong balance sheet with Q2 2017 net debt of $435 million compared to $407 million in Q1 2017

· | Results exceeded expectations with first net profit reported since merger. Strong performance driven by price recovery as a result of reduced inflow of low-priced imports of silicon metal and strong end-market demand

LONDON, August 30, 2017 – Ferroglobe PLC (NASDAQ: GSM), ("Ferroglobe" or the "Company"), one of the world's largest producers of silicon metal and silicon- and manganese-based alloys, today announced results for the second quarter of 2017.
In Q2 2017, Ferroglobe posted a net profit of $1.0 million, or $0.02 per share on a fully diluted basis. On an adjusted basis, Q2 2017 net profit attributable to the parent was $6.0 million, or $0.05 per share on a fully diluted basis.
Q2 2017 reported EBITDA was $36.8 million, up from $30.9 million in the prior quarter. On an adjusted basis, Q2 2017 EBITDA was $43.9 million, up 42% from Q1 2017 adjusted EBITDA of $30.9 million. The Company reported adjusted EBITDA margins of 10.3% for Q2 2017, compared to adjusted EBITDA margins of 7.8% for Q1 2017.
Net sales in Q2 2017 totaled $425.8 million, up 8% from $396.0 million in Q1 2017. Selling prices for Ferroglobe's key products continued to improve over the course of the quarter across both the U.S. and Europe:

· | The average selling price for silicon metal increased by 6.3% from $2,080/MT in Q1 2017 to $2,210/MT in Q2 2017, a significant improvement driven by reduced inflow of low-priced imports particularly in North America;

· | The average selling price for silicon-based alloys increased 7.7% to $1,586/MT in the quarter from $1,473/MT in the prior quarter;

· | The average selling price for manganese-based alloys remained broadly flat at $1,308/MT in Q2 2017 as compared to $1,298/MT in the prior quarter as a result of some pricing pressures, offset by lower manganese ore costs from inventory; and

· | In addition to these pricing trends, Ferroglobe continued to realize average sales prices in excess of the index.

The Company also saw stabilization of demand and volumes across its key products. In terms of sales volumes, silicon metal experienced a 9.4% increase quarter-over-quarter, silicon-based alloys experienced a 5.9% decrease quarter-over-quarter and manganese-based alloys experienced a 1.1% increase quarter-over-quarter.

|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017 |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
Shipments in metric tons: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Silicon Metal |  |  | 82,881 |  |  |  | 75,753 |  |  |  | 85,242 |  |  |  | 158,634 |  |  |  | 175,347 |
Silicon-based Alloys |  |  | 70,913 |  |  |  | 75,386 |  |  |  | 74,786 |  |  |  | 146,299 |  |  |  | 148,259 |
Manganese-based Alloys |  |  | 64,403 |  |  |  | 63,700 |  |  |  | 70,756 |  |  |  | 128,103 |  |  |  | 134,331 |
Total shipments* |  |  | 218,197 |  |  |  | 214,839 |  |  |  | 230,784 |  |  |  | 433,036 |  |  |  | 457,937 |
|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017 |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
Average selling price ($/MT): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Silicon Metal |  | $ | 2,210 |  |  | $ | 2,080 |  |  | $ | 2,230 |  |  | $ | 2,148 |  |  | $ | 2,311 |
Silicon-based Alloys |  | $ | 1,586 |  |  | $ | 1,473 |  |  | $ | 1,430 |  |  | $ | 1,528 |  |  | $ | 1,432 |
Manganese-based Alloys |  | $ | 1,308 |  |  | $ | 1,298 |  |  | $ | 777 |  |  | $ | 1,303 |  |  | $ | 771 |
Total* |  | $ | 1,741 |  |  | $ | 1,635 |  |  | $ | 1,525 |  |  | $ | 1,688 |  |  | $ | 1,574 |
|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017 |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
Average selling price ($/lb.): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Silicon Metal |  | $ | 1.00 |  |  | $ | 0.94 |  |  | $ | 1.01 |  |  | $ | 0.97 |  |  | $ | 1.05 |
Silicon-based Alloys |  | $ | 0.72 |  |  | $ | 0.67 |  |  | $ | 0.65 |  |  | $ | 0.69 |  |  | $ | 0.65 |
Manganese-based Alloys |  | $ | 0.59 |  |  | $ | 0.59 |  |  | $ | 0.35 |  |  | $ | 0.59 |  |  | $ | 0.35 |
Total* |  | $ | 0.79 |  |  | $ | 0.74 |  |  | $ | 0.69 |  |  | $ | 0.77 |  |  | $ | 0.71 |
* Excludes by-products and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

__________________________
1 Q1 2017 income statement has been revised to include Ferroglobe's energy business in Spain as no longer discontinued operations, including sales, net profit and reported and adjusted EBITDA.
1

"Ferroglobe delivered strong performance in Q2 2017 with quarter-over-quarter earnings growth and improved profitability, having delivered positive net income for the first time since the merger. A significant reduction in the flow of low-priced imports of silicon metal resulted in continued pricing improvement particularly in North America and sustained strong end-market demand across all our products continued to drive the stabilization of shipment volumes. We continue to benefit from our diversification strategy, with the business now generating almost equal earnings from our three main products," said CEO Pedro Larrea. "Having focused on carefully managing our cost structure in prior quarters, combined with disciplined execution of our commercial strategy, we have been able to capture the benefits of the market environment with a significant improvement in our margins. We expect prices to continue to improve through the year and we remain focused on sustained performance across all business segments as we move through the remainder of 2017."
Strong cash flow generation continues to support liquidity
Working capital increased by $35.4 million during Q2 2017, primarily a result of the recovery cycle - year-to-date the Company has increased total working capital by $20.3 million. Ferroglobe continued to generate positive cash flows. During the quarter, the Company generated operating cash flow of $20.1 million and free cash flow of $5.8 million.
Ferroglobe's net debt was $435 million at the end of Q2 2017, up by $28 million compared to $407 million at the end of Q1 2017. To further strengthen liquidity, on July 31, 2017 Ferroglobe entered into a $250 million accounts receivable securitization to obtain financing in connection with its receivables generated in the U.S., Canada, Spain and France under one program. This arrangement provides several benefits to the Company, including risk mitigation, liquidity maximization and the ability to replace multiple factoring arrangements with one consolidated, centrally-managed program.
Adjusted EBITDA:

|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017 |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
Profit (loss) attributable to the parent |  | $ | 2,859 |  |  |  | (6,554 | ) |  |  | (42,238 | ) |  |  | (3,695 | ) |  |  | (67,937 | )
Loss attributable to non-controlling interest |  |  | (1,859 | ) |  |  | (1,561 | ) |  |  | (7,080 | ) |  |  | (3,420 | ) |  |  | (13,291 | )
Income tax benefit |  |  | (1,949 | ) |  |  | (1,214 | ) |  |  | (29,038 | ) |  |  | (3,163 | ) |  |  | (28,261 | )
Net finance expense |  |  | 14,547 |  |  |  | 12,970 |  |  |  | 6,908 |  |  |  | 27,517 |  |  |  | 14,523 |
Financial derivatives loss |  |  | 4,071 |  |  |  | - |  |  |  | - |  |  |  | 4,071 |  |  |  | - |
Exchange differences |  |  | (7,263 | ) |  |  | 20 |  |  |  | 276 |  |  |  | (7,243 | ) |  |  | 2,004 |
Depreciation and amortization charges, operating allowances and write-downs |  |  | 26,401 |  |  |  | 27,222 |  |  |  | 24,534 |  |  |  | 53,623 |  |  |  | 67,532 |
EBITDA |  |  | 36,807 |  |  |  | 30,883 |  |  |  | (46,638 | ) |  |  | 67,690 |  |  |  | (25,430 | )
Non-controlling interest settlement |  |  | 1,751 |  |  |  | - |  |  |  | - |  |  |  | 1,751 |  |  |  | - |
Power credit |  |  | (3,696 | ) |  |  | - |  |  |  | - |  |  |  | (3,696 | ) |  |  | - |
Long lived asset charge due to reclassification of discontinued operations to continuing operations |  |  | 2,608 |  |  |  | - |  |  |  | - |  |  |  | 2,608 |  |  |  | - |
Accrual of contingent liabilities related to commercial disputes |  |  | 6,400 |  |  |  | - |  |  |  | - |  |  |  | 6,400 |  |  |  | - |
Impairment loss |  |  | - |  |  |  | - |  |  |  | 58,587 |  |  |  | - |  |  |  | 58,587 |
Transaction and due diligence expenses |  |  | - |  |  |  | - |  |  |  | 5,227 |  |  |  | - |  |  |  | 7,868 |
Globe purchase price allocation adjustments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 10,022 |
Adjusted EBITDA |  | $ | 43,870 |  |  |  | 30,883 |  |  |  | 17,176 |  |  |  | 74,753 |  |  |  | 51,047 |

Adjusted net profit (loss) attributable to Ferroglobe:

|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017 |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
Profit (loss) attributable to the parent |  | $ | 2,859 |  |  |  | (6,554 | ) |  |  | (42,238 | ) |  |  | (3,695 | ) |  |  | (67,937 | )
Tax rate adjustment |  |  | (1,645 | ) |  |  | 1,771 |  |  |  | (3,964 | ) |  |  | 126 |  |  |  | 6,775 |
Non-controlling interest settlement |  |  | 1,191 |  |  |  | - |  |  |  | - |  |  |  | 1,191 |  |  |  | - |
Power credit |  |  | (2,513 | ) |  |  | - |  |  |  | - |  |  |  | (2,513 | ) |  |  | - |
Long lived asset charge due to reclassification of discontinued operations to continuing operations |  |  | 1,773 |  |  |  | - |  |  |  | - |  |  |  | 1,773 |  |  |  | - |
Accrual of contingent liabilities related to commercial disputes |  |  | 4,352 |  |  |  | - |  |  |  | - |  |  |  | 4,352 |  |  |  | - |
Impairment loss |  |  | - |  |  |  | - |  |  |  | 39,839 |  |  |  | - |  |  |  | 39,839 |
Transaction and due diligence expenses |  |  | - |  |  |  | - |  |  |  | 3,555 |  |  |  | - |  |  |  | 5,351 |
Globe purchase price allocation adjustments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,815 |
Adjusted profit (loss) attributable to the parent |  | $ | 6,017 |  |  |  | (4,783 | ) |  |  | (2,808 | ) |  |  | 1,234 |  |  |  | (9,157 | )

Adjusted diluted profit (loss) per share:

|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017 |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
Diluted profit (loss) per ordinary share |  | $ | 0.02 |  |  |  | (0.04 | ) |  |  | (0.25 | ) |  |  | (0.02 | ) |  |  | (0.40 | )
Tax rate adjustment |  |  | (0.01 | ) |  |  | 0.01 |  |  |  | (0.01 | ) |  |  | 0.00 |  |  |  | 0.05 |
Non-controlling interest settlement |  |  | 0.01 |  |  |  | - |  |  |  | - |  |  |  | 0.01 |  |  |  | - |
Power credit |  |  | (0.01 | ) |  |  | - |  |  |  | - |  |  |  | (0.01 | ) |  |  | - |
Long lived asset charge due to reclassification of discontinued operations to continuing operations |  |  | 0.01 |  |  |  | - |  |  |  | - |  |  |  | 0.01 |  |  |  | - |
Accrual of contingent liabilities related to commercial disputes |  |  | 0.03 |  |  |  | - |  |  |  | - |  |  |  | 0.03 |  |  |  | - |
Impairment loss |  |  | - |  |  |  | - |  |  |  | 0.23 |  |  |  | - |  |  |  | 0.23 |
Transaction and due diligence expenses |  |  | - |  |  |  | - |  |  |  | 0.02 |  |  |  | - |  |  |  | 0.03 |
Globe purchase price allocation adjustments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0.04 |
Adjusted diluted profit (loss) per ordinary share |  | $ | 0.05 |  |  |  | (0.03 | ) |  |  | (0.01 | ) |  |  | 0.02 |  |  |  | (0.05 | )

2

Recent developments
The favorable demand environment has allowed Ferroglobe to return to close to full capacity utilization. The Selma facility (Alabama, US) restarted one of its two furnaces. Ferroglobe's European and other North American plants are now running at full capacity. Facilities in Argentina and South Africa are currently at 50% and 65% utilization, respectively, in Q2 2017 as a result of unfavorable local conditions. Ferroglobe's plant in Venezuela has halted operations since May 2017, as the Company awaits further developments in the country.
Regarding the ongoing trade cases that Ferroglobe filed in the United States, the Department of Commerce (the "DOC") issued preliminary determinations on August 7, 2017 imposing countervailing duties on silicon metal imports from Australia, Brazil and Kazakhstan. The duties imposed ranged from 3.69% to 120%, with more than 54% of silicon metal imports into the United States being subject to cash deposit requirements. The Company has also filed antidumping cases against imports from Australia, Brazil, and Norway to address unfairly low import pricing. The DOC is expected to make preliminary determinations in the antidumping cases on October 4, 2017, which may result in the imposition of additional duties.
Ferroglobe Executive Chairman, Javier López Madrid, commented, "We are confident that the affirmative preliminary determinations issued on August 7, 2017 will be the first step in ensuring a more competitive and fair silicon metal market in the U.S., and we look forward to receiving a favorable outcome in the ongoing antidumping investigations."
Regarding the ongoing trade case filed in Canada, the Canadian Border Services Agency (the "Agency") issued its preliminary determinations on July 5, 2017. The Agency found dumping and/or subsidy margins for Brazil, Kazakhstan, Laos, Malaysia, Norway and Thailand. It terminated its investigation against Russia on the basis of insufficient import volumes. The final determination of the Agency's investigations is expected to be issued on October 3, 2017. The Canadian International Trade Tribunal hearing is scheduled to take place on October 2, 2017, with a final finding expected to be issued on November 2, 2017.
The Company announced on July 26, 2017 that it has not received the required regulatory approvals to divest hydro-electric operations in Spain. The Company will continue to explore all options, including further efforts to gain formal approval for the divestiture of these non-core assets to capture the assets full value.
Conference Call
Ferroglobe will review the results for the second quarter of 2017 during a conference call at 9:00 a.m. Eastern Time on Wednesday, August 30, 2017.
The dial-in number for the call for participants in the United States is 877-293-5491 (conference ID 69657476). International callers should dial 914-495-8526 (conference ID 69657476). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at http://edge.media-server.com/m/p/xyge3xid.
About Ferroglobe
Ferroglobe PLC is one of the world's largest producers of silicon metal and silicon- and manganese-based alloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is headquartered in London. For more information, visit http://investor.ferroglobe.com.
Forward-Looking Statements
This release 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 facts but are based on certain assumptions of management and describe the company's future plans, strategies and expectations. Forward-looking statements generally can be identified by the use of forward-looking terminology, including, but not limited to, "may," "could," "seek," "guidance," "predicts," "potential," "likely," "believe," "will," "expect," "anticipate, "estimate," "plan," "intends" or "forecast," variations of these terms and similar expressions, or the negative of these terms or similar expressions.
Forward-looking statements contained in this press release are based on information presently available to the company and assumptions that we 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.
You are cautioned that all such statements involve risks and uncertainties, including, without limitation, risks that the legacy businesses of Globe and FerroAtlántica will not be integrated successfully or that we will not realize estimated cost savings, value of certain tax assets, synergies and growth, or that such benefits may take longer to realize than expected. Important factors that may 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) Ferroglobe's 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 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 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 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 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 controls; and (xvii) the potential for international unrest, economic downturn or effects of currencies, tax assessments, tax adjustments, anticipated tax rates, raw material costs or availability or other regulatory compliance costs. The foregoing list is not exhaustive. 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 Reports on Form 6-K and other documents we file from time to time with the United States Securities and Exchange Commission. Ferroglobe does not give any assurance (1) that the company will achieve its expectations or (2) 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, business strategies, earnings or revenue trends or future financial results. 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 presented herein or any future periods.
All information in this press release is as of the date of its release. Ferroglobe does not undertake or assume any obligation to update publicly any of the forward-looking statements in this press release to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements. If the company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. The company cautions you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release.
3

Non-IFRS Financial Metrics
EBITDA, adjusted EBITDA, adjusted diluted profit (loss) per ordinary share and adjusted profit (loss) attributable to the parent are, we believe, pertinent non-IFRS financial metrics that Ferroglobe utilizes to measure its success.
Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important 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. Reconciliations of these measures to the comparable IFRS financial measures are provided above and in the attached financial statements.
* * *
INVESTOR CONTACT:
Ferroglobe PLC
Joe Ragan, US: +1 917 209 8581, UK: +44 (0) 7827 227 688
Chief Financial Officer
Email: jragan@ferroglobe.com
4

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Income Statement
(in thousands of U.S. dollars, except per share amounts)
|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017* |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
Sales |  | $ | 425,810 |  |  |  | 396,037 |  |  |  | 397,953 |  |  |  | 821,847 |  |  |  | 821,432 |
Cost of sales |  |  | (250,279 | ) |  |  | (241,138 | ) |  |  | (252,764 | ) |  |  | (491,417 | ) |  |  | (534,607 | )
Other operating income |  |  | 4,008 |  |  |  | 1,629 |  |  |  | 3,717 |  |  |  | 5,637 |  |  |  | 6,050 |
Staff costs |  |  | (74,168 | ) |  |  | (66,485 | ) |  |  | (72,050 | ) |  |  | (140,653 | ) |  |  | (139,233 | )
Other operating expense |  |  | (65,009 | ) |  |  | (60,124 | ) |  |  | (64,374 | ) |  |  | (125,133 | ) |  |  | (119,315 | )
Depreciation and amortization charges, operating allowances and write-downs |  |  | (26,401 | ) |  |  | (27,222 | ) |  |  | (24,534 | ) |  |  | (53,623 | ) |  |  | (67,532 | )
Impairment losses |  |  | - |  |  |  | - |  |  |  | (58,587 | ) |  |  | - |  |  |  | (58,587 | )
Other (loss) gain |  |  | (3,555 | ) |  |  | 964 |  |  |  | (533 | ) |  |  | (2,591 | ) |  |  | (1,170 | )
Operating profit (loss) |  |  | 10,406 |  |  |  | 3,661 |  |  |  | (71,172 | ) |  |  | 14,067 |  |  |  | (92,962 | )
Finance income |  |  | 162 |  |  |  | 795 |  |  |  | 442 |  |  |  | 957 |  |  |  | 685 |
Finance expense |  |  | (14,709 | ) |  |  | (13,765 | ) |  |  | (7,350 | ) |  |  | (28,474 | ) |  |  | (15,208 | )
Financial derivatives loss |  |  | (4,071 | ) |  |  | - |  |  |  | - |  |  |  | (4,071 | ) |  |  | - |
Exchange differences |  |  | 7,263 |  |  |  | (20 | ) |  |  | (276 | ) |  |  | 7,243 |  |  |  | (2,004 | )
Loss before tax |  |  | (949 | ) |  |  | (9,329 | ) |  |  | (78,356 | ) |  |  | (10,278 | ) |  |  | (109,489 | )
Income tax benefit |  |  | 1,949 |  |  |  | 1,214 |  |  |  | 29,038 |  |  |  | 3,163 |  |  |  | 28,261 |
Profit (loss) for the period |  |  | 1,000 |  |  |  | (8,115 | ) |  |  | (49,318 | ) |  |  | (7,115 | ) |  |  | (81,228 | )
Loss attributable to non-controlling interest |  |  | 1,859 |  |  |  | 1,561 |  |  |  | 7,080 |  |  |  | 3,420 |  |  |  | 13,291 |
Profit (loss) attributable to the parent |  | $ | 2,859 |  |  |  | (6,554 | ) |  |  | (42,238 | ) |  |  | (3,695 | ) |  |  | (67,937 | )
EBITDA |  | $ | 36,807 |  |  |  | 30,883 |  |  |  | (46,638 | ) |  |  | 67,690 |  |  |  | (25,430 | )
Adjusted EBITDA |  |  | 43,870 |  |  |  | 30,883 |  |  |  | 17,176 |  |  |  | 74,753 |  |  |  | 51,047 |
Weighted average shares outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 171,947 |  |  |  | 171,838 |  |  |  | 171,838 |  |  |  | 171,947 |  |  |  | 171,838 |
Diluted |  |  | 172,047 |  |  |  | 171,838 |  |  |  | 171,838 |  |  |  | 171,947 |  |  |  | 171,838 |
Profit (loss) per ordinary share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.02 |  |  |  | (0.04 | ) |  |  | (0.25 | ) |  |  | (0.02 | ) |  |  | (0.40 | )
Diluted |  |  | 0.02 |  |  |  | (0.04 | ) |  |  | (0.25 | ) |  |  | (0.02 | ) |  |  | (0.40 | )
* Revised data presents the results of Ferroglobe's energy business in Spain as no longer discontinued operations. |  |  |  |  |  |  |  |  |  |  |  |  |

5

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
|  | June 30, |  | March 31, |  | December 31,
|  | 2017 |  | 2017 |  | 2016
ASSETS
Non-current assets |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 232,250 |  |  |  | 230,733 |  |  |  | 230,210 |
Other intangible assets |  |  | 60,282 |  |  |  | 56,854 |  |  |  | 62,839 |
Property, plant and equipment |  |  | 888,844 |  |  |  | 790,501 |  |  |  | 781,606 |
Non-current financial assets |  |  | 6,198 |  |  |  | 5,967 |  |  |  | 5,823 |
Non-current financial assets from related parties |  |  | - |  |  |  | - |  |  |  | 9,845 |
Deferred tax assets |  |  | 52,214 |  |  |  | 47,768 |  |  |  | 44,950 |
Non-current receivables from related parties |  |  | 2,282 |  |  |  | 2,139 |  |  |  | 2,108 |
Other non-current assets |  |  | 22,337 |  |  |  | 20,892 |  |  |  | 20,245 |
Total non-current assets |  |  | 1,264,407 |  |  |  | 1,154,854 |  |  |  | 1,157,626 |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Inventories |  |  | 337,555 |  |  |  | 312,757 |  |  |  | 316,702 |
Trade and other receivables |  |  | 229,703 |  |  |  | 214,738 |  |  |  | 209,406 |
Current receivables from related parties |  |  | 3,684 |  |  |  | 5,576 |  |  |  | 11,971 |
Current income tax assets |  |  | 11,272 |  |  |  | 16,614 |  |  |  | 19,869 |
Current financial assets |  |  | 3,661 |  |  |  | 3,640 |  |  |  | 4,049 |
Other current assets |  |  | 12,568 |  |  |  | 10,703 |  |  |  | 9,810 |
Cash and cash equivalents |  |  | 183,561 |  |  |  | 172,647 |  |  |  | 196,931 |
Assets and disposal groups classified as held for sale |  |  | - |  |  |  | 120,094 |  |  |  | 92,937 |
Total current assets |  |  | 782,004 |  |  |  | 856,769 |  |  |  | 861,675 |
Total assets |  | $ | 2,046,411 |  |  |  | 2,011,623 |  |  |  | 2,019,301 |
EQUITY AND LIABILITIES
Equity |  | $ | 906,518 |  |  |  | 902,872 |  |  |  | 892,042 |
Non-current liabilities |  |  |  |  |  |  |  |  |  |  |  |
Deferred income |  |  | 5,960 |  |  |  | 3,656 |  |  |  | 3,949 |
Provisions |  |  | 85,029 |  |  |  | 83,993 |  |  |  | 81,957 |
Bank borrowings |  |  | 62,776 |  |  |  | 78,123 |  |  |  | 179,473 |
Obligations under finance leases |  |  | 72,647 |  |  |  | 1,906 |  |  |  | 3,385 |
Debt instruments |  |  | 338,202 |  |  |  | 339,693 |  |  |  | - |
Other financial liabilities |  |  | 116,492 |  |  |  | 86,962 |  |  |  | 86,467 |
Other non-current liabilities |  |  | 2,449 |  |  |  | 2,317 |  |  |  | 5,737 |
Deferred tax liabilities |  |  | 144,345 |  |  |  | 132,753 |  |  |  | 139,535 |
Total non-current liabilities |  |  | 827,900 |  |  |  | 729,403 |  |  |  | 500,503 |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |
Provisions |  |  | 22,091 |  |  |  | 11,915 |  |  |  | 19,627 |
Bank borrowings |  |  | 1,021 |  |  |  | 1,545 |  |  |  | 241,818 |
Obligations under finance leases |  |  | 12,030 |  |  |  | 586 |  |  |  | 1,852 |
Debt instruments |  |  | 12,537 |  |  |  | 4,156 |  |  |  | - |
Other financial liabilities |  |  | 2,460 |  |  |  | 1,616 |  |  |  | 1,592 |
Payables to related parties |  |  | 8,813 |  |  |  | 10,283 |  |  |  | 30,738 |
Trade and other payables |  |  | 178,602 |  |  |  | 177,015 |  |  |  | 157,706 |
Current income tax liabilities |  |  | 4,673 |  |  |  | 3,616 |  |  |  | 961 |
Other current liabilities |  |  | 69,766 |  |  |  | 63,346 |  |  |  | 64,780 |
Liabilities associated with assets classified as held for sale |  |  | - |  |  |  | 105,270 |  |  |  | 107,682 |
Total current liabilities |  |  | 311,993 |  |  |  | 379,348 |  |  |  | 626,756 |
Total equity and liabilities |  | $ | 2,046,411 |  |  |  | 2,011,623 |  |  |  | 2,019,301 |

6

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands of U.S. dollars)
|  | Quarter Ended June 30, 2017 |  | Quarter Ended March 31, 2017 |  | Quarter Ended June 30, 2016 |  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profit (loss) for the period |  | $ | 1,000 |  |  |  | (8,115 | ) |  |  | (49,318 | ) |  |  | (7,115 | ) |  |  | (81,228 | )
Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income tax benefit |  |  | (1,949 | ) |  |  | (1,214 | ) |  |  | (29,038 | ) |  |  | (3,163 | ) |  |  | (28,261 | )
Depreciation and amortization charges, operating allowances and write-downs |  |  | 26,401 |  |  |  | 27,222 |  |  |  | 24,534 |  |  |  | 53,623 |  |  |  | 67,532 |
Finance income |  |  | (162 | ) |  |  | (795 | ) |  |  | (442 | ) |  |  | (957 | ) |  |  | (685 | )
Finance expense |  |  | 14,709 |  |  |  | 13,765 |  |  |  | 7,350 |  |  |  | 28,474 |  |  |  | 15,208 |
Financial derivatives loss |  |  | 4,071 |  |  |  | - |  |  |  | - |  |  |  | 4,071 |  |  |  | - |
Exchange differences |  |  | (7,263 | ) |  |  | 20 |  |  |  | 276 |  |  |  | (7,243 | ) |  |  | 2,004 |
Impairment losses |  |  | - |  |  |  | - |  |  |  | 58,587 |  |  |  | - |  |  |  | 58,587 |
Loss on disposals of non-current and financial assets |  |  | 1,348 |  |  |  | (558 | ) |  |  | 242 |  |  |  | 790 |  |  |  | 191 |
Other adjustments |  |  | 2,208 |  |  |  | (406 | ) |  |  | 291 |  |  |  | 1,802 |  |  |  | 979 |
Changes in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) decrease in inventories |  |  | (11,943 | ) |  |  | 7,108 |  |  |  | 14,347 |  |  |  | (4,835 | ) |  |  | 57,696 |
Decrease in trade receivables |  |  | 9,456 |  |  |  | 3,765 |  |  |  | 28,439 |  |  |  | 13,221 |  |  |  | 54,236 |
(Decrease) increase in trade payables |  |  | (8,943 | ) |  |  | 18,156 |  |  |  | (10,651 | ) |  |  | 9,213 |  |  |  | (8,741 | )
Other* |  |  | (506 | ) |  |  | (34,545 | ) |  |  | (16,050 | ) |  |  | (35,051 | ) |  |  | (58,901 | )
Income taxes (paid) received |  |  | (3,919 | ) |  |  | (2,297 | ) |  |  | 1,497 |  |  |  | (6,216 | ) |  |  | (11,277 | )
Interest paid |  |  | (4,378 | ) |  |  | (9,729 | ) |  |  | (5,767 | ) |  |  | (14,107 | ) |  |  | (13,469 | )
Net cash provided by operating activities |  |  | 20,130 |  |  |  | 12,377 |  |  |  | 24,297 |  |  |  | 32,507 |  |  |  | 53,871 |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payments due to investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other intangible assets |  |  | - |  |  |  | (410 | ) |  |  | (87 | ) |  |  | (410 | ) |  |  | (523 | )
Property, plant and equipment |  |  | (14,319 | ) |  |  | (12,362 | ) |  |  | (15,676 | ) |  |  | (26,681 | ) |  |  | (42,484 | )
Non-current financial assets |  |  | - |  |  |  | (14 | ) |  |  | (273 | ) |  |  | (14 | ) |  |  | (273 | )
Current financial assets |  |  | - |  |  |  | - |  |  |  | (13,865 | ) |  |  | - |  |  |  | (13,918 | )
Disposals: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intangible assets |  |  | - |  |  |  | - |  |  |  | (30 | ) |  |  | - |  |  |  | - |
Property, plant and equipment |  |  | - |  |  |  | - |  |  |  | (104 | ) |  |  | - |  |  |  | - |
Current financial assets |  |  | - |  |  |  | - |  |  |  | 99 |  |  |  | - |  |  |  | 99 |
Interest received |  |  | 211 |  |  |  | 353 |  |  |  | 466 |  |  |  | 564 |  |  |  | 709 |
Net cash used by investing activities |  |  | (14,108 | ) |  |  | (12,433 | ) |  |  | (29,470 | ) |  |  | (26,541 | ) |  |  | (56,390 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends paid |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (13,747 | )
Payment for debt issuance costs |  |  | (3,078 | ) |  |  | (10,477 | ) |  |  | - |  |  |  | (13,555 | ) |  |  | - |
Proceeds from debt issuance |  |  | - |  |  |  | 350,000 |  |  |  | - |  |  |  | 350,000 |  |  |  | - |
Increase/(decrease) in bank borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings |  |  | 30 |  |  |  | 31,425 |  |  |  | 25,978 |  |  |  | 31,455 |  |  |  | 82,969 |
Payments |  |  | (15,300 | ) |  |  | (372,380 | ) |  |  | 11,623 |  |  |  | (387,680 | ) |  |  | (38,075 | )
Other amounts paid due to financing activities |  |  | (10,694 | ) |  |  | (7,211 | ) |  |  | (3,851 | ) |  |  | (17,905 | ) |  |  | (4,563 | )
Net cash (used) provided by financing activities |  |  | (29,042 | ) |  |  | (8,643 | ) |  |  | 33,750 |  |  |  | (37,685 | ) |  |  | 26,584 |
TOTAL NET CASH FLOWS FOR THE PERIOD |  |  | (23,020 | ) |  |  | (8,699 | ) |  |  | 28,577 |  |  |  | (31,719 | ) |  |  | 24,065 |
Beginning balance of cash and cash equivalents |  |  | 193,031 |  |  |  | 196,982 |  |  |  | 114,019 |  |  |  | 196,982 |  |  |  | 116,666 |
Exchange differences on cash and cash equivalents in foreign currencies |  |  | 13,550 |  |  |  | 4,748 |  |  |  | (6,822 | ) |  |  | 18,298 |  |  |  | (4,957 | )
Ending balance of cash and cash equivalents |  | $ | 183,561 |  |  |  | 193,031 |  |  |  | 135,774 |  |  |  | 183,561 |  |  |  | 135,774 |
* Includes the cash outflow impact of the $32.5M shareholder settlement during the quarter ended March 31, 2016. |  |  |  |  |  |  |  |  |  |  |  |  |

7

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: August 29, 2017 |
| FERROGLOBE PLC |
| By: | /s/ Joseph Ragan |
|  | Name: Joseph Ragan |
|  | Title: Chief Financial Officer and Principal Accounting Officer (Principal Financial Officer)

8

Advancing Materials Innovation NASDAQ: GSM Second Quarter 2017

Forward-Looking Statements and non-IFRS Financial Metrics 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 facts but are based on certain assumptions of management and describe our future plans, strategies and expectations. Forward-looking statements can 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," "plan," "intend," "forecast," or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements contained in this presentation are based on information presently available to us and assumptions that we believe 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 guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control. You are cautioned that all such statements involve risks and uncertainties, including without limitation, risks that the businesses of Globe Specialty Metals Inc. and Grupo FerroAtlántica (together, “we,” “us,” “Ferroglobe,” the “Company”) will not be integrated successfully or that we will not realize estimated cost savings, value of certain tax assets, synergies and growth, or that such benefits may take longer to realize than expected. Important factors that may cause actual results to differ include, but are limited to: (i) risks relating to unanticipated costs of integration, including operating costs, customer loss and business disruption being greater than expected; (ii) our 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 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 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 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 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 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 compliance costs. The foregoing list is not exhaustive. 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 Registration Statement on Form F-1, Annual Reports on Form 20-F, Current 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) 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, 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 projections for the periods presented herein or any future periods. 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 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 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.EBITDA, adjusted EBITDA, adjusted diluted profit (loss) per ordinary share and adjusted profit (loss) attributable to the parent are, we believe, pertinent non-IFRS financial metrics that Ferroglobe utilizes to measure its success. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important 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. For additional information, including a reconciliation of the differences between the non-IFRS financial measures and the comparable IFRS financial measures, refer to the press release dated August 30, 2017 accompanying this presentation, which is incorporated by reference herein.

Table of Contents Q2 2017 OverviewSelected Financial Highlights

Q2 2017 Overview Pedro Larrea, Chief Executive Officer

Q2 2017 results exceeded expectations; first net profit since merger Volumes stabilizing in core products (Volume change vs Q1 2017)SiM +9.4%Si alloys -5.9%Mn alloys +1.1% Capturing benefits of improved market environment (ASP increase vs Q1 2017)SiM +6.3%Si alloys +7.7%Mn alloys +0.8% Optimized business platform Successful commercial strategyStreamlining of best practicesDiversified product portfolio Actions underway to optimize production facilities Sales +8% vs Q1 2017 Adjusted EBITDA +42 % vs Q1 2017 Adjusted EBITDA margin improvement of 250 bps to 10.3% Q2 net profit $1.0 million – adjusted net profit $6.0 million* *Adjusted net profit attributable to the parent

Source: Company information Antidumping and Countervailing Duties Sale of Spanish Hydro-Electric Assets Accounts Receivable Securitization Update on corporate matters The U.S. Department of Commerce has issued a preliminary determination imposing countervailing duties ranging from 3.69% to 120% on silicon metal imports from Australia, Brazil and Kazakhstan. The Department of Commerce is expected to make preliminary determinations in the antidumping cases on October 4, 2017Canadian authority determined margins of dumping ranging from 4.2% to 135.3%. Final determination of the Agency’s investigations is expected to be issued on October 3, 2017. The Canadian International Trade Tribunal is expected to issue final findings on November 2, 2017 Announced on July 26, 2017 that Ferroglobe had not received the required regulatory approvals to complete divestitureIntend to continue to explore all options, including further efforts to gain formal approval for the divestiture of these non-core assets in order to capture their full value Entered into $250 million accounts receivable securitization on July 31, to obtain financing in connection with receivables generated in U.S., Canada, Spain and France Provides several benefits, including risk mitigation, liquidity maximization and the ability to replace multiple factoring arrangements with one consolidated, centrally-managed program

Diversified portfolio provides exposure to improved pricing across key products Silicon-BasedAlloys26% Mn-Based Alloys20% Other11% Aluminum Silicones Solar Foundry Specialty Steel Steel Qtr / Qtr Revenue Growth by Product Other Source: Company informationEnd market data reflects FY 2016 sales Business benefits from a diversified portfolio, now generating almost equal earnings from three main product segments Revenue Contribution by Product and Market (Q2 2017) 1

Q2 2017 revenues up 8% vs previous quarter Improvement in prices and volumes for silicon metal as well as prices for silicon-based alloys are the key drivers in the quarter

Silicon metal snapshot Volume Trends Sequential Quarter Product EBITDA Contribution ($m) Commentary Silicon metal EBITDA more than doubled due to higher realized prices and increased volumes from new orders, especially in North AmericaSilicon metal prices:Continue to increase in North America as a result of the preliminary rulings in ongoing trade cases Upward trend in China: +500 $/t since mid-JulyFirst signs of European recovery during AugustVolumes were up 9.4% in Q2 2017 vs Q1 2017 Pricing Trends

Silicon-based alloys snapshot Volume Trends Commentary Silicon-based alloys cost increase attributable to technical issues at Bridgeport facility and the conversion of one furnace at SabonFerrosilicon prices remain at historically strong levels and gained traction during August, especially in North America. Actively looking to fill up order book to take advantage of current levelsVolumes were down 5.9% Sequential Quarter Product EBITDA Contribution ($m) Pricing Trends

Manganese-based alloys snapshot Commentary Manganese-based alloys faced with pricing pressure, offset with lower manganese ore costs from inventoryMarket prices came down in Q2 2017 from historical highs. Prices are gaining momentum again in Q3 2017Volumes were up slightly compared to Q1 2017 – with plants running at full capacity Volume Trends Pricing Trends Sequential Quarter Product EBITDA Contribution ($m)

Pricing momentum continues to drive performance Ferroglobe Actions Leading to Results Commercial strategy has captured the recovery of the market Continue to optimize business platform: Actions underway to optimize production facilities: minimizing the impact of idled facilities: streamlining production plans to increase utilization rates; including the conversion of furnaces to capture market opportunitiesStreamlining of best practicesDiversified product portfolio Sequential Quarter EBITDA Contribution ($m)

Reported EBITDA of $36.8 million. Adjusted EBITDA of $43.9 million for the quarter +42% vs reported EBITDA of $30.9 million in Q1 2017 Net profit of $1.0 million, or $0.02 per share on a fully diluted basis. Adjusted net profit attributable to the parent of $6.0 million, or $0.05 per share on a fully diluted basis.Working capital increased by $35.4 million during the quarter, primarily a result of the recovery cycle - total working capital increase year-to-date of $20.3 millionOperating cash flow of $20.1 million and free cash flow of $5.8 millionBalance sheet strength maintained:Net debt of $435 million at end of Q2; up compared to $407 at the end of Q1Liquidity of $320 million at end of Q2 Net Debt to EBITDA metrics have improved dramatically Conservative capital structure — company positioned to pursue growth opportunitiesSuccessful refinancing has simplified the debt structure and improved the solvency with regard to covenantsFocus on deleveraging the balance sheetLeverage target of below 2xContinue to focus on managing cost structure through technical performance, portfolio optimization and streamlining of SG&ABusiness decisions, including M&A and CapEx, are made with a focus on financial metrics – targeting immediately accretive transactions Delivering value for shareholders and positioning for the long term Q2 2017 Performance Remain Focused on Delivering Long-Term Value

Selected Financial Highlights Joe Ragan, Chief Financial Officer

Q2 2017 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 Q2 2017 Q1 2017 FY 2016 Sales ($m) 425.8 396.0 1,555.7 Operating Profit ($m) 10.4 3.7 -375.6 Profit Attributable to the Parent ($m) 2.9 -6.6 -338.4 Adjusted EBITDA ($m) 43.9 30.9 70.4 Adjusted EBITDA Margin 10.3% 7.8% 4.5% Working Capital ($m) 388.7 353.3 368.4 Free Cash Flow1 ($m) 5.8 - 43.4 Notes

Balance sheet summary ($mm) Q2 20171 Q1 20171 12/31/2016 Total Assets 2,046 2,012 2,019 Net Debt2 435 407 405 Book Equity 907 903 892 Net Debt2 / Total Assets 21% 20% 20% Net Debt2 / Capital3 32% 31% 31% Financial results are unauditedNet Debt includes finance lease obligationsCapital is calculated as book equity plus net debt Notes

Debt evolution ($m) Quarterly debt evolution

Working capital evolution ($m) +$26m Inventory+$10m A/R

Concluding remarks Improved market environment: recovery trend continues across key products Business well-positioned: cost structure and commercial strategy Positive outlook for remainder of 2017

Q&A

Advancing Materials Innovation NASDAQ: GSM Second Quarter 2017