Aperam S.a. · EURONEXT:APAM
Aperam — Investor Day (November 2013)
22 slides from Aperam's investor day presentation, Nov 27, 2013
Slide 1: Investor Day – Genk
Investor Day – Genk November 27, 2013 Julien Onillon – Chief Financial Officer © Aperam 0
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This document may contain forward-looking information and statements about Aperam and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with re
Slide 3: Challenging market conditions since spin-off
Challenging market conditions since spin-off 2
Slide 4: Global stainless steel consumption has slowed due to European crisis
Challenging market conditions since spin-off Global Stainless steel consumption has slowdown due in particular to the European economic crisis Global apparent demand of cold-rolled stainless steel flat products European apparent demand of hot-rolled and cold-rolled ('000t) stainless steel flat produ
Slide 5: Europe faced increasing imports and de-stocking
Challenging market conditions since spin-off In addition to real consumption decline, Europe has faced increasing imports and de-stocking Imports market share in Europe Stocks of flat stainless steel in EU-27 for distribution (% of the EU-27 market) (in number of days) 25% 75 20% 70 15% 65 10% 60 5%
Slide 6: Industry overcapacities have remained amid low demand growth
Challenging market conditions since spin-off In a context of low demand growth, industry overcapacities have remained Stainless steel slab equivalent global utilization rates Chinese capacity and utilization rate for stainless steel slabs (% of capacity) 85% 25 85% 80% 20 80% 75% 15 75% 70% 10 70% 6
Slide 7: Nickel price has fallen due to low cost nickel pig iron
Challenging market conditions since spin-off Nickel price has fallen due to, in particular, low cost nickel pig iron expansion Nickel pig iron production by process (‘000t) Nickel - LME Cash (USD/t) 31,000 400 29,000 350 27,000 300 Rotary Kiln Electric 25,000 Furnace (RKEF*) 250 23,000 200 Electrica
Slide 8: Stainless steel industry has faced strong price pressure
Challenging market conditions since spin-off Stainless steel industry has faced strong price pressure Stainless steel base price in South Europe for CR 430 BA 2mm European stainless steel producers* share price performance coil (EUR//t) (base 100) 1,200 110 100 1,150 90 1,100 80 1,050 70 60 1,000 50
Slide 9: Aperam performance
aperan Aperam performance
Slide 10: Strategy and reactivity to challenging market condition
Aperam performance Strategy and reactivity to challenging market condition Strategic priority Leadership Journey® announcements and targets 1 1 Facing price pressure with End of 2012 250 Initial Leadership Journey® announced at end of 2010 Leadership Journey® Increased and accelerated 2 2 Focusing o
Slide 11: Facing price pressure with Leadership Journey
Aperam performance Facing price pressure with Leadership Journey® Leadership Journey initiatives by typology Cumulated gains (USD million) 349 Launched at the early stage of the program, the restructuring initiatives are focused on the closure of 324 Restructuring 299 non-competitive capacities and
Slide 12: Focusing on high margin products with Top line strategy
Aperam performance Focusing on high margin products with Top line strategy Market segments Shipments of “Top line” products (‘000t) 500 Ferritics Specialties 400 +90kt over 3 years Potential Specialties 300 Niches 200 Standard 100 Ferritics Mass commodities 0 Margin Brazil European 2010 2011 2012 20
Slide 13: Generating positive cash-flow through working capital and CAPEX management
Aperam performance Generating positive cash-flow through active working capital and CAPEX management Working capital evolution Quarterly net debt of Aperam and average evolution (USDm) 1,400 80 1,150 75 1,200 1,100 70 1,000 1,050 65 60 1,000 800 55 950 600 50 900 400 45 850 40 200 35 800 0 30 750 Q1
Slide 14: Industry and historical comparison
Aperam performance Industry and historical comparison EBITDA margin of Aperam and of the European industry* (USD/t) EBITDA margin of Aperam and stainless steel price 400 350 1500 300 300 1450 200 250 1400 100 200 1350 150 1300 0 100 1250 -100 50 1200 -200 0 1150 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 15: Aperam, a stronger and well positioned company
Aperam, a stronger and well positioned company 14
Slide 16: Solid and diversified sources of revenues
Aperam, a stronger and well positioned company Solid and diversified sources of revenues Aperam sales breakdown in 2012 (by destination) Aperam EBITDA breakdown (9 months 2013) Asia & Africa 7% Alloys & Specialties Stainless & Electrical USA 21% Steel - Europe 6% 27% Services & Solutions Brazil & La
Slide 17: A unique position in Brazil
Aperam, a stronger and well positioned company A unique position in Brazil Aperam shipments 2013E breakdown from Brazil (in volume) Chinese price to landed price in Brazil (USD/t) Special carbon steel 22% Electrical steel Stainless Steel GO 51% 7% Electrical steel NGO Chinese FOB +8% and Imports dut
Slide 18: A global leader on the high margin Nickel alloys niche business
Aperam, a stronger and well positioned company A global leader on the high margin Nickel alloys niche business Price, cost and margin of some key Ni Alloys products EBITDA margin 40 12% 35 10% 30 8% USD/Kg 25 20 6% 15 4% 10 2% 5 0 0% Product 1 Product 2 Product 3 Product 4 2007 2008 2009 2010 2011 2
Slide 19: An optimized industrial configuration in Europe
Aperam, a stronger and well positioned company An optimized industrial configuration in Europe European downstream rationalization from 29 tools to 17 tools Cold phase capacity utilization (%) ISBERGUES GUEUGNON 90 GENK 88 86 HA&P HAP 3 HAP 3 RD 7 HAP 9 lines 84 82 CR mills CR 4 CR 2 CR 3 LC2I CR 1
Slide 20: Solid financial ratio
Aperam, a stronger and well positioned company Solid financial ratio Profitability ratio Debt ratio 200 6% 12.0 200% 5.4% N/A N/A 5.2% 5% 180% 4.3% 150 10.0 160% 4.1% 4% 160% 140% 100 3% 8.0 107% 120% 2% 50 6.0 100% 1% 80% 0 0% 4.0 52% 60% -1% 34% 40% -50 2.0 27% 27% -1.8% -2% -1.9% 20% -100 -3% 0.0
Slide 21: Diversified funding structure & low refinancing risk
Aperam, a stronger and well positioned company Diversified funding structure & low refinancing risk Gross debt breakdown (as of September 30, 2013) Debt maturity profile (USD millions and as of September 30, 2013) Subsidiary debt 10% 700 BBF & Other corporate bank Convertible 600 debt bond 31% 14% 5
Slide 22: Q&A
aperan O&A