Acerinox Sa · BME:ACX
Acerinox Sa — H1 2018 Earnings Presentation
18 slides from Acerinox Sa's earnings presentation, 2018
Slide 1: Acerinox 2018 First Half Results
ACERINOX 2018 F I R S T H A L F R E S U LT S
Slide 2: Disclaimer
DISCLAIMER This document may contain forward-looking information and statements about ACERINOX, S.A., its subsidiaries and/or its management. These forward-looking statements include financial projections and estimates and their underlying assumptions, and statements regarding the intent, belief or
Slide 3: Main Financial Figures of Acerinox
MAIN FINANCIAL FIGURES OF ACERINOX Million EUR Q2 Q2 Variation H1 H1 Variation 2018 2017 Q2 2018/Q2 2017 2018 2017 H12018/H12017 NET SALES 1,334 1,191 12.0% 2,588 2,444 5.9% EBITDA 151 126 20.0% 268 317 -15.4% EBIT 108 81 33.2% 184 227 -19.1% RESULT BEFORE TAXES 105 76 38.8% 182 217 -16.1% RESULT AF
Slide 4: Acerinox Accident Rate Evolution
A C E R I N O X A C C I D E N T R AT E E V O L U T I O N Target: zero accidents 5.0 3.3 3.3 2.6 2.3 2014 2015 2016 2017 Jun '18 • Accident rate = total no. injuries and illnesses * 200,000 / no. worked hours ACERINOX 4 2018, FIRST HALF RESULTS
Slide 5: Raw Material Prices
R AW M AT E R I A L P R I C E S NICKEL m o n t h s Years 2017 and 2018, up to July 25 20,000 p r i c e : c a s h / t h r e e 15,000 U S D / m t S o u r c e : 10,000 A v e r a g e L M E 5,000 J F M A M J J A S O N D J F M A M J Jl A S O N D FERROCHROME 165 A v e r a g e q u a r t e r l y p r i c e 15
Slide 6: Sector Indicators
S E C T O R I N D I C AT O R S Auto Construction Home Production Appliances +2.5% +3.2% +1.7% Eurofer data/estimates Eurofer data/estimates for Eurofer data/estimates for 2018 (updated July) 2018 (updated July) for 2018 (updated July) -1.9% +4.3% -0.1% Year to June Year to May Year to June Source: W
Slide 7: Stainless Steel Inventories
S TA I N L E S S S T E E L I N V E N T O R I E S Thousand mt 100 80 Days of stock A v e r a g e 2 0 1 4 - J u n 2 0 1 8 7 6 , 0 4 8 m t 80 70 S o u r c e : E H V 60 G e r m a n y 60 40 50 INVENTORIES OF 20 COLD-ROLLED 0 J F M A M J JL A S O N D J F M A M J JL A S O N D J F M A M J JL A S O N D J F M
Slide 8: Stainless Steel Cold Rolled Coil Prices
S TA I N L E S S S T E E L C O L D R O L L E D C O I L P R I C E S AISI 304 2.0 mm 4,000 USD/mt, final price, alloy surcharge included USA 3,000 NORTH EUROPE ASIA 2,000 S o u r c e : P L A T T S 1,000 2014 2015 2016 2017 2018 up to June ACERINOX 8 2018, FIRST HALF RESULTS
Slide 9: Production
PRODUCTION Thousand mt 617 634 611 652 637 611 668 605 615 631 668 639 558 516 601 562 546 575 M E LT I N G S H O P +5.6% over Q2 2017 +2.7% over H1 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 542 552 563 572 547 593 535 542 560 577 561 491 464 524 536 4
Slide 10: Geographical Distribution of Sales
GEOGRAPHICAL DISTRIBUTION OF SALES June 2018 Europe 37.0% Oceania 0.5% Africa 4.9% Asia 12.9% America 44.8% ACERINOX 10 2018, FIRST HALF RESULTS
Slide 11: Quarterly Evolution of Acerinox's EBITDA
Q U A R T E R LY E V O L U T I O N O F A C E R I N O X ' S E B I T D A Million EUR 200 191 25 % 151 140 20 % 150 124 126 119 118 101 103 101 103 106 15% 15 % 100 89 12% 11% 79 10% 11% 11% 11% 10% 9% 9% 10 % 9% 9% 9% 41 41 41 8% 53 50 5% 4% 5% 5% 4% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 12: Costs Remain Under Control
COSTS REMAIN UNDER CONTROL Personnel Operating +1.3% -0.2% 321 325 200 199 H1 2017 H1 2018 H1 2017 H1 2018 Depreciation Net financial result Ta x e s -6.8% -30.6% 89 83 -82.7% 73 10 50 2 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 ACERINOX 12 2018, FIRST HALF RESULTS
Slide 13: Balance Sheet
BALANCE SHEET Million EUR Jun 2018 Dec 2017 Mar 2017 Working Capital 783 686 8 11 Net financial Debt 537 609 601 ACERINOX 13 2018, FIRST HALF RESULTS
Slide 14: Working Capital Quarterly Evolution
W O R K I N G C A P I TA L Q U A R T E R L Y E V O L U T I O N Million EUR 2,000 1,500 1,000 783 500 537 0 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 -500 -1,000 Inventories Trade Debtors Trade Creditors
Slide 15: Condensed Cash Flow Statement
C O N D E N S E D C A S H F L O W S TAT E M E N T Million EUR Jan - Mar Apr - Jun Jan - Jun Jan - Dec Jan - Jun Million EUR 2018 2018 2018 2017 2017 EBITDA 118 151 268 489 317 Changes in working capital -103 17 -86 1 -180 Income tax -22 -27 -49 -82 -52 Financial expenses -4 -3 -7 -28 -14 Others 0 5
Slide 16: Excellence Plan
EXCELLENCE PLAN 2017-2018 EXCELLENCE PLAN V Target : 50 million EUR 5 chapters: Operations, Working Capital, Personnel, Commercial and Supply Chain PERFORMANCE % over the target Performance to June 2018: Quarter Accumulated 57% (29 million EUR) 81% 66% 67% Reduction of inventories (mt) 54% 51% E
Slide 17: Opportunities & Challenges
OPPORTUNITIES & CHALLENGES OPPORTUNITIES Strength of our main market, USA Trade actions Contribution of new investments Efficiency improvements CHALLENGES o Strong competition due to overcapacity o Price situation in Asia and Europe o Vo l a t i l i t y o f r a w m a t e r i a l p r i c e s
Slide 18: Acerinox Q&A
ACERINOX Q&A 2018 F I R S T H A L F R E S U LT S