Acerinox Sa · BME:ACX
Acerinox Sa — Q1 2019 Earnings Presentation
28 slides from Acerinox Sa's earnings presentation, May 13, 2019
Slide 1: Q1 2019 Results Presentation
Q1 2019 RESULTS PRESENTATION 13 MAY 2019
Slide 2: Disclaimer
Q1 2019 RESULTS PRESENTATION 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 reg
Slide 3: First Quarter Performance
Q1 2019 RESULTS PRESENTATION FIRST QUARTER PERFORMANCE Q1 MARKET HIGHLIGHTS Q1 ACERINOX HIGHLIGHTS Improvement of market activity Quick reaction in Q4 allowed us to Alloy surcharge recovers from March, recover margins in Q1: after 7 months of decline +56% EBITDA vs Q4 X -24% EBITDA vs Q1 N
Slide 4: Raw Material Prices
Q1 2019 RESULTS PRESENTATION R AW M AT E R I A L P R I C E S NICKEL Years 2017 - 2019, up to May 9 m o n t h s 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 J A S O N D J F M A M FERROCHROME 165 A v e r a
Slide 5: Stainless Steel Cold Rolled Coil Prices
Q1 2019 RESULTS PRESENTATION S TA I N L E S S S T E E L C O L D R O L L E D COIL PRICES AISI 304 2.0 MM USD/mt, final price, alloy surcharge included 3,300 3,100 2,900 2,700 2,710 U S A 2,500 2,474 G E R M A N Y 2,300 2,100 1,900 1,932 T A I W A N S o u r c e : 1,700 C R U 1,500 J F M A M J JL A S O
Slide 6: Stainless Steel Inventories
Q1 2019 RESULTS PRESENTATION 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 90 Days of stock A v e r a g e 2 0 1 5 - M a r 2 0 1 9 : 7 7 , 6 0 0 m t 80 80 S o u r c e : E H V 60 70 G e r m a n y 40 60 INVENTORIES OF 20 50 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
Slide 7: Main Financial Figures
Q1 2019 RESULTS PRESENTATION Q1 2019: MAIN FINANCIAL FIGURES Q1 Q1 Q4 Variation Variation 2019 2018 2018 Net Sales 1,202 1,254 -4% 1,139 6% EBITDA 90 118 -24% 58 56% Figures in million € EBIT 45 76 -40% 16 176% Results before Taxes and 45 76 -41% 17 164% Minorities Results after Taxes and Minorities
Slide 8: Quarterly Performance
Q1 2019 RESULTS PRESENTATION Q U A R T E R LY P E R F O R M A N C E MELTING PRODUCTION EBITDA 180 668 639 160 151 154 617 628 140 118 Thousand tons 516 120 100 90 Million € 58 80 60 40 20 0 Q1 Q2 Q3 Q4 Q119 Q1 Q2 Q3 Q4 Q119 FREE CASH FLOW NET FINANCIAL DEBT (Before dividends) 114 114 667 666 537 552
Slide 9: Cash Flow
Q1 2019 RESULTS PRESENTATION CASH FLOW 9
Slide 10: Balance Sheet
Q1 2019 RESULTS PRESENTATION BALANCE SHEET ASSETS LIABILITIES Million € Mar-19 2018 Mar-18 Variation Million € Mar-19 2018 Mar-18 Variation Non-current assets 2,150.46 2,133.77 2,088.76 0.8% Equity 2,150.39 2,119.30 1,966.63 1.5% Current assets 2,588.94 2,473.82 2,387.43 4.7% Non-current liabilities
Slide 11: The Next Step: Excellence 360º
Q1 2019 RESULTS PRESENTATION THE NEXT STEP: EXCELLENCE 360º 11
Slide 12: Excellence 360º
Q1 2019 RESULTS PRESENTATION EXCELLENCE 360º 12
Slide 13: Excellence 360º: Roadmap
Q1 2019 RESULTS PRESENTATION 125 MM€ 100% EXCELLENCE 360º: ROADMAP 112 MM€ 89% 86 MM€ 69% 59 MM€ 47% 24 MM€ 19% 360º 2019 2020 2021 2022 2023 EXCELLENCE 360º TARGET = EUR125 MILLION IN 2023 (RECURRENT) 13
Slide 14: Outlook
Q1 2019 RESULTS PRESENTATION OUTLOOK Inventories in Europe and the United States are at reasonable levels Q2 EBITDA IS Imports are expected to EXPECTED TO remain controlled in Europe BE HIGHER and the United States THAN IN Q1 19 Market conditions remain very competitive The competitiveness of
Slide 15: Thank You Q&A
Q1 2019 RESULTS PRESENTATION THANK YOU Q&A
Slide 16: Appendix
Q1 2019 RESULTS PRESENTATION APPENDIX Acerinox Europa AP Line NAS BA Line 16
Slide 17: Acerinox: Global Player
Q1 2019 RESULTS PRESENTATION A C E R I N O X : G L O B A L P L AY E R • Spanish multinational company • Fully dedicated to stainless steel • Net sales: EUR 5,011 million (2018) • Among largest producers in the world with 3.5 million tons of melting capacity • 6 factories in 4 continents • 6,709 prof
Slide 18: History and Main Shareholders
Q1 2019 RESULTS PRESENTATION H I S T O RY 1970, incorporation of ACERINOX, S.A.(Spain) 1 9 9 0 , i n c o r p o r a t i o n o f N O RT H A M E R I C A N S TA I N L E S S ( U S A ) 100% Acerinox S.A. Acerinox, S.A. 76% 2 0 0 2 , i n c o r p o r a t i o n o f C O L U M B U S S TA I N L E S S ( S o u t
Slide 19: Acerinox Principles and Values
Q1 2019 RESULTS PRESENTATION A C E R I N O X P R I N C I P L E S A N D VA L U E S 19
Slide 20: Acerinox Production Capacity
Q1 2019 RESULTS PRESENTATION A C E R I N O X P R O D U C T I O N C A PA C I T Y Million mt (*) Once it’s completed ACERINOX EUROPA FULLY INTEGRATED PLANT Melting 1.1 Hot Rolling 0.9 Cold Rolling 0.7 NORTH AMERICAN STAINLESS Long Prod. 0.2 FULLY INTEGRATED PLANT Melting 1.4 Hot Rolling 1.2 BAHRU STAI
Slide 21: Stainless Steel World Production
Q1 2019 RESULTS PRESENTATION S TA I N L E S S S T E E L W O R L D P R O D U C T I O N 55,000 World production of 50,000 Stainless Steel in 45,000 2018e: 40,000 50.7 million mt 35,000 (+5.5% over 2017) 30,000 25,000 Compound annual growth rate 1950 – 2018e: 20,000 15,000 + 5.9% 10,000 5,000 0 50 60 7
Slide 22: Stainless Steel World Production
Q1 2019 RESULTS PRESENTATION S TA I N L E S S S T E E L W O R L D P R O D U C T I O N China accounts for 52% of world production in 2018 50 40 30 Others Japan 20 India China 10 USA Europe 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 22
Slide 23: Production: Melting Shop, Hot Rolling, Cold Rolling
Q1 2019 RESULTS PRESENTATION PRODUCTION Thousand mt 652 637 611 668 605 615 631 668 639 617 628 601 611 562 546 575 516 M E LT I N G S H O P +22% over Q4 2018 -6% over Q1 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 572 547 593 535 542 560 577 561 524 536
Slide 24: Working Capital
Q1 2019 RESULTS PRESENTATION W O R K I N G C A P I TA L 2,000 1,500 1,000 500 Million € 0 -500 -1,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Mar-19 Inventories Trade Debtors Trade Creditors Working Capital 24
Slide 25: Net Financial Debt
Q1 2019 RESULTS PRESENTATION NET FINANCIAL DEBT 1,200 1,000 800 Million € 600 1,075 1,084 400 887 711 582 616 620 609 552 573 529 200 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mar 19 Gearing 61.3% 56.3% 47.1% 33.9% 34.1% 33.2% 35.1% 28.6% 30.9% 26.0% 26.6% NFD / LTM -5.63 2.84 2.60 2.94 2.
Slide 26: Cash Flow
Q1 2019 RESULTS PRESENTATION CASH FLOW Jan - Mar Apr - Jun Jul - Sep Oct-Dec Jan - Dec Jan - Mar Millones EUR 2018 2018 2018 2018 2018 2019 EBITDA 118 151 154 58 480 90 Changes in working capital -103 17 -102 101 -87 4 Changes in operating working capital -106 9 -95 118 -74 -47 - Inventories -3 -56
Slide 27: Excellence Plan V
Q1 2019 RESULTS PRESENTATION EXCELLENCE PLAN V 2017-2018 EXCELLENCE PLAN V Focused on operational excellence Target : 50 million EUR Achieved: 55%, 27 million EUR Best practices in each business unit 5 chapters: Operations, Working Capital, Management and control tool Personnel, Commercial and
Slide 28: Thank You
Q1 2019 RESULTS PRESENTATION THANK YOU