Aperam S.a. · EURONEXT:APAM
Aperam — Q4 2010 Earnings Presentation
16 slides from Aperam's earnings presentation, Feb 8, 2011
Slide 1: Fourth quarter and annual results 2010
Fourth quarter and annual results 2010 8 February 2011 © Aperam 1
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
Slide 3: Introduction and overview
Introduction and overview • Highlights: – Health and Safety frequency rate of 2.1x in 2010 (1.8x in 2009) and 1.0x in Q4 2010 – Shipments of 1,741 thousand tonnes in 2010 (1,447 thousand tonnes in 2009) and 366 thousand tonnes in Q4 2010 – EBITDA of USD 410 million in 2010 (USD 226 million in 2009)
Slide 4: Health & Safety
Fourth quarter and annual results 2010 Health & Safety © Aperam 4
Slide 5: Health & Safety Performance
Health & Safety Performance Frequency rate* 4 3 2 1 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 New initiatives put in place following deterioration of Health & Safety performance * IISI-standard: Fr = Lost Time Injuries per 1.000.000 worked hour
Slide 6: Environment and markets
Fourth quarter and annual results 2010 Environment and markets © Aperam 6
Slide 7: After a weak 4th quarter, stainless steel prices are rebounding
Environment and markets After a weak 4th quarter, stainless steel prices are rebounding China - CR 304 2B 2mm coil price (USD/t)* Southern Europe - CR 304 2B 2mm coil base price (€/t)* 5 000 1 250 4 500 1 200 1 150 4 000 1 100 1 050 3 500 1 000 3 000 950 900 2 500 850 2 000 800 O 8 O 9 O 0 Ap 08 Ap
Slide 8: Performance and prospects
Fourth quarter and annual results 2010 Performance and prospects © Aperam 8
Slide 9: Performance and prospects: Operations
Performance and prospects Operations Shipments (‘000t) Q4 2010 EBITDA per segment (USD million) 482 460 436 366 +48 1Q 10 2Q 10 3Q 10 4Q 10 +26 EBITDA (USD million) Brazil +62 178 Europe Brazil +12 144 (14) +17 +10 Europe +7 +9 +3 66 22 3Q 10 4Q 10 3Q 10 4Q 10 3Q 10 4Q 10 Stainless & Services & Allo
Slide 10: Performance and prospects: Leadership Journey
Performance and prospects Leadership Journey • Targeting USD 250m over the next two years • Forest expansion and biomass development Variable cost – Biomass (charcoal) production doubling to permit full upstream integration in Brazil USD100m – Connection to natural gas in Brazil, yield and quality p
Slide 11: Performance and prospects: Profitability drivers
Performance and prospects Profitability drivers EBITDA in millions of USD Annual profitability key drivers for 2011 – Leadership Journey 1,178 • USD 250 million over the next two years resulting from fixed cost reductions, variable cost reductions and increasing productivity 930 – Volume Average 200
Slide 12: Pro forma financial results
Fourth quarter and annual results 2010 Pro forma financial results © Aperam 12
Slide 13: Fourth quarter P&L highlights
Pro forma financial results Fourth quarter P&L highlights EBITDA to pro forma net income (USD million) +22 +20 +10 EBITDA -10 Net Income -75 Pre-Tax Tax -77 +120 Depreciation -24 Impairment Operating income -53 Financial Financial non- charges & recurring* Other Earnings per share of USD 0.13 * Fina
Slide 14: Fourth quarter cash flow highlights
Pro forma financial results Fourth quarter cash flow highlights Free cash flow (USD millions) -50 -21 -46 +23 -27 -40 +161 +137 +97 +22 +22 EBITDA Working Financial Cash-flow CAPEX Free Cash- Capital charges, tax from flow before & other operation dividend Cash flow from operations of USD 137m © Ape
Slide 15: Balance sheet highlights
Pro forma financial results Balance sheet highlights Assets & liabilities (USD millions)* Equity and net debt (USD million) 3 917 3 776 3 599 959 1 540 4 498 26% 26% 22% 3 917 Asset Liabilities 31/12/2009 30/06/2010 31/12/2010 Non-current Asset Shareholders' equity Working capital Other net liabilit
Slide 16: Q&A
Fourth quarter and annual results 2010 Q&A © Aperam 16