Aperam S.a. · EURONEXT:APAM
Aperam — Petercam's Benelux Conference 2014
24 slides from Aperam's conference presentation, Sep 16, 2014
Slide 1: Petercam's Benelux Conference
Petercam's Benelux Conference September 16, 2014 Sandeep Jalan – Chief Financial Officer © 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 re
Slide 3: Aperam's fundamentals
Petercam's Benelux Conference Aperam’s fundamentals © Aperam 3
Slide 4: Solid and diversified sources of revenues
Aperam’s fundamentals Solid and diversified sources of revenues Aperam sales breakdown by destination (H1 2014) Aperam EBITDA breakdown (H1 2014) Alloys & USA Specialties Asia & Africa 5% 11% 6% Stainless & Electrical Steel - Services & Europe Solutions 36% Brazil & Latin 17% America 25% Europe 64%
Slide 5: A unique position in Brazil
Aperam’s fundamentals A unique position in Brazil Stainless steel flat stainless steel consumption per capita South American Stainless steel demand (in kt) (kg/year) 7 800 6 700 600 5 500 4 400 3 300 2 200 1 100 0 0 South America USA Europe China 10 11 12 13 F F F F F 14 17 15 16 18 20 20 20 20 20 2
Slide 6: A global distribution network
Aperam’s fundamentals A global distribution network Sales, distribution and steel service centers network, including precision & tubes businesses Sales subsidiaries and representative offices Sales agencies Steel Service Centers A key competitive advantage to maintaining market share and capturing g
Slide 7: A leading position in nickel alloys
Aperam’s fundamentals A leading position in nickel alloys Global nickel alloys producers (kt) Aperam Alloys & Specialties geographical footprint Rescal Amilly Imhua Wire drawing The magnetic parts company 40 35 nn Transformation n workshop 30 25 n n 20 Imphy 15 ICS (JV) 10 5 Meltshop, wire mill, col
Slide 8: Three years of active restructuring for a best in class footprint
Aperam’s fundamentals Three years of active restructuring for a footprint best in class in addressing all the stainless steel markets in Europe Aperam downstream rationalization in EU from 29 tools to 17 tools European stainless steel industry footprint after restructuring GENK ISBERGUES GUEUGNON Fi
Slide 9: Environment and markets
Petercam's Benelux Conference Environment and markets © Aperam 9
Slide 10: European stainless steel market improving but under pressure
Environment and markets European stainless steel market is improving but still under pressure of the imports and the nickel price evolution Nickel - LME Cash (USD/t) Chinese versus European CR 304 2B 2mm coil transaction price 5,000 3,500 35,000 4,500 30,000 3,000 4,000 25,000 20,000 3,500 2,500 15,
Slide 11: European demand recovery underway
Environment and markets European demand recovery underway Stainless steel slab equivalent European demand Stocks of flat stainless steel in EU-27 for distribution (‘000t) (in million tonnes) 5.5 340 320 5.0 300 280 260 4.5 240 220 200 4.0 180 n 3 n 8 n 9 n 0 n 1 n 2 14 p 9 p 0 p 1 p 2 p 3 ay 9 ay 0
Slide 12: Aperam performance
Petercam's Benelux Conference Aperam performance © Aperam 12
Slide 13: Second quarter operating performance
Performance Second quarter operating performance Shipments (‘000t) Q2 2014 EBITDA per division (USD million) [1] 475 466 124 450 441 436 100 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Brazil 58 Brazil 53 Europe 66 EBITDA (USD million) 164 Europe 47 30 23 129 20 15 81 84 62 Q1 2014 Q2 2014 Q1 2014 Q2 20
Slide 14: Leadership Journey
Performance Leadership Journey® Cumulated gains (USD million) Key projects completed since beginning of 2011 • In Brazil, VSS*, switch from LPG to natural gas and conversion of blast furnace number 2 from coke to biomass. 450 • In Europe, - Suspension of traditional cold roll mill in Isbergues 400 -
Slide 15: Balance sheet control
Performance Balance sheet control Working capital evolution Gearing evolution (%) 1,400 80 50% 75 1,200 70 40% 1,000 65 60 800 30% 55 600 50 20% 400 45 40 10% 200 35 0 30 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 14 13 13 14 12 13 13 12 12 12 11 11 10 11 11 20 20 20 20 20 20 20 20 20 20 20 20 20
Slide 16: Diversified funding structure & low refinancing risk
Performance Diversified funding structure & low refinancing risk Equity & net debt (USD million) Debt maturity profile (USD millions and as of October 1st, 2014) [1] 700 600 500 2 935 3 017 3 026 3 149 400 2 958 300 200 100 841 808 690 689 663 - 30/06/13 30/09/13 31/12/13 31/03/14 31/06/2014 2014 20
Slide 17: Plan 2014 - 2015
Petercam's Benelux Conference Plan 2014 - 2015 © Aperam 17
Slide 18: Strategic priority maintained allowing to capture new opportunities
Plan 2014 - 2015 Strategic priority maintained allowing to capture new opportunities Strategic priority 5 profit-driving pillars 1 1 Aiming at “best in cost” with the Leadership Journey® 11 Leadership Journey® 12 Innovation in Stainless & Electrical Steel 12 Top Line Strategy 1 3 Brazilian developme
Slide 19: Aiming at best in cost with the Leadership Journey
Plan 2014 - 2015 Aiming at “best in cost” with the Leadership Journey® Cumulated gains (USD million) New investment announced in 2014 USD 10 million in debottlenecking the finishing line 500 of the Imphy Wire Rod mill. This aims at further February 6 improving competitiveness and increasing revenue
Slide 20: Optimizing portfolio with the Top Line Strategy
Plan 2014 - 2015 Optimizing portfolio with the Top Line Strategy Top line product growth target for 2014 (‘000t) Examples of innovation 45 40 35 30 The Selective Catalytic New ferritics grades for 25 Reduction System Automotive applications 20 15 10 5 0 Brazil Europe Duplex offer Carbon steel substi
Slide 21: Brazilian protections against unfair market behaviour
Plan 2014 - 2015 Brazilian protections against unfair market behaviour Type of products Import duties status Anti-dumping status 9 Normal import duties are 14% 9 AD rights published last year and valid as of October 4th 8 For Cold Rolled Stainless Steel from 0,5 to 3mm, for 5 years from 236 USD/t to
Slide 22: Growing in Alloys specialties
Plan 2014 - 2015 Growing in Alloys specialties Continuously variable Alloys & Specialties sales LNG* tankers transmission belt breakdown by market 7% 8% 24% 10% 12% Special welding 39% Mould for composite Energy / Oil & Gas aircraft fuselage parts Chemical process industries / welding / environment
Slide 23: Sustainable cash flow from operations across the cycles
Plan 2014 - 2015 Sustainable cash flow from operations across the cycles Cumulated net cash provided by operating activities Quarterly net debt of Aperam evolution (USD million) (USD million) 1,000 1,150 Enhanced reduction target on 800 net debt from USD 650 m to 1,050 USD 550 m by end of 2014 600 9
Slide 24: Q&A
Q&A Castelao stadium, Fortaleza – revamped with Aperam Stainless Steel © Aperam 24 Credits: Ceará State Government - Vigliecca Foto: Vigliecca & Associados & Associados