AMG Critical Materials N.V.

Good day and welcome to AMG's first quarter 2020 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Michelle Fisher. Please go ahead, ma'am.

Welcome to AMG's first quarter 2020 earnings call. Joining me on this call are Dr. Hein Schimmelbusch, the Chairman of the Management Board and Chief Executive Officer, Mr. Jackson Dunkel, the Chief Financial Officer, and Mr. Eric Jackson, the Chief Operating Officer. AMG's first quarter 2020 earnings press release issued today is on AMG's website. Today's call will begin with a review of the first quarter 2020 business highlights by Dr. Schimelbusch. Mr. Dunkel will comment on AMG's financial results, and Mr. Jackson will discuss operations. At the completion of Mr. Jackson's remarks, Dr. Schimelbusch will comment on strategy and outlook. We will then open the call to take your questions. Before I pass the call to Dr. Schimmelbusch, I would like to comment on forward-looking statements. This conference call could contain forward-looking statements about AMG Advanced Immunological Group. Forward-looking statements are not historical facts but may include statements concerning AMG's plans, expectations, future revenues or performance, financing needs, plans and intentions related to acquisition, AMG's competitive strengths and weaknesses, reserves, financial position, and future operations and development. AMG's business strategy and the trends AMG anticipates in, the industries, and the political and legal environment in which it operates and other similar or different information that is not historical information. When used in this conference call, the words expect, believe, anticipate, plan, may, will, should, and similar expressions and negatives thereof are intended to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that any predictions, forecasts, or similar projections contained by such forward-looking statements will not be achieved. These forward-looking statements speak only at the date of this conference call. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any changes in AMG's expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based. I will now pass the floor to Dr. Shimabushi, AMG's Chairman of the Management Board and Chief Executive Officer.

Thank you, Michelle. I'm pleased to report that out of 3,200 total AMG's employees, in 33 sites, and 15 countries, AMG has only had one employee test positive for COVID-19. The employee has since fully recovered and has returned to work. We have presently only five active self-quarantine cases. However, as a result for the coronavirus crisis, some of our production facilities are operating below capacity, reflecting reduced demand levels. Our financial results reflect the lowest price environment we are experiencing, and we continue to operate in an austerity mode and focus on things we can control, such as operational efficiency, capital expenditures, and overhead costs. The focus on expenditures will help to preserve our solid liquidity position. Despite our intense focus on cash flow, we continue to progress our key strategic programs, the construction of the plant in Saintsville, Ohio, which essentially will double our recycling capacity for refinery residues, and that is proceeding as planned, utilizing the funds raised from our municipal bond issue. Basic engineering of the new lithium hydroxide production facility in Germany is expected to be completed by year-end. Shell and AMG Recycling BV has started to operate and will pursue refinery residue recycling opportunities globally. We had an excellent order intake in 2019 of 240 units. $9 million and $104 million in the first quarter of 2020, representing in that quarter a strong 1.3 times book-to-bill ratio. But the unfortunate foreseeable depressed conditions in the aerospace industry due to COVID-19 has forced us to postpone the pursuit of a public offering of EMG technologies. I would now like to pass the floor to Jackson Dunkel, AMG's Chief Financial Officer.