Acerinox Sa · BME:ACX
Acerinox Sa — Q2 2019 Earnings Presentation
30 slides from Acerinox Sa's earnings presentation, Jul 26, 2019
Slide 1: Q2 2019 Results Presentation
Q2 2019 RESULTS PRESENTATION 26 JULY 2019
Slide 2: Disclaimer
Q2 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: Second Quarter Performance
Q2 2019 RESULTS PRESENTATION SECOND QUARTER PERFORMANCE Q2 MARKET HIGHLIGHTS Q2 ACERINOX HIGHLIGHTS Stabilization of market activity Slight improvement vs Q1: X Raw material prices remain volatile +7% EBITDA QoQ X Macro uncertainties prevail X -36% EBITDA YoY Europe X Downward inventory adjustme
Slide 4: Market Performance
Q2 2019 RESULTS PRESENTATION MARKET PERFORMANCE NICKEL FERROCHROME S o u r c e : M e t a l B u l l e t i n 20,000 m o n t h s A v e r a g e q u a r t e r l y p r i c e 2017 2018 2019 165 154 139 142 138 124 118 112 120 104 U S ¢ / L b . C r 15,000 110 p r i c e : c a s h / t h r e e S o u r c e : U
Slide 5: Stainless Steel Inventories
Q2 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 - J u n 2 0 1 9 : 7 7 , 1 9 6 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 6: Main Financial Figures
Q2 2019 RESULTS PRESENTATION Q2 2019: MAIN FINANCIAL FIGURES Q1 Q2 H1 H1 Variation Variation 2019 2019 2018 2019 Net Sales 1,202 1,240 3% 2,588 2,442 -6% EBITDA 90 97 7% 268 186 -30% Figures in million € EBIT 45 54 19% 184 100 -46% Results before Taxes and 45 53 17% 182 98 -46% Minorities Results af
Slide 7: Quarterly Performance
Q2 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 180 668 639 160 151 154 617 628 570 140 118 Thousand tons 516 120 97 100 90 Million € 80 58 60 40 20 0 Q118 Q218 Q318 Q418 Q119 Q219 Q118 Q218 Q318 Q418 Q119 Q219 FREE CASH FLOW NET FINANCIAL DEBT (Before d
Slide 8: Q2 Cash Flow
Q2 2019 RESULTS PRESENTATION Q2 CASH FLOW Million € 8
Slide 9: Cash Flow
Q2 2019 RESULTS PRESENTATION CASH FLOW Jan - Mar Apr - Jun Jan - Jun Jan - Dec Jan - Jun Millones EUR 2019 2019 2019 2018 2018 EBITDA 90 97 186 480 268 Changes in working capital 4 8 11 -87 -86 Changes in operating working capital -47 8 -39 -74 -97 - Inventories -32 8 -24 -28 -59 - Trade debtors -51
Slide 10: Excellence 360º: Roadmap
Q2 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) Target achieved until June: EUR24 million 10
Slide 11: Outlook
Q2 2019 RESULTS PRESENTATION OUTLOOK Prices remain low in Europe and Asia Macro uncertainties and weak Q3 EBITDA IS visibility EXPECTED TO BE SIMILAR TO Q2 19 Seasonal slowdown in Europe US market conditions remain robust Despite a challenging global market and the weaker summer period Q3 EB
Slide 12: Thank You Q&A
Q2 2019 RESULTS PRESENTATION THANK YOU Q&A
Slide 13: Appendix
Q2 2019 RESULTS PRESENTATION APPENDIX Acerinox Europa AP Line NAS BA Line 13
Slide 14: Acerinox: Global Player
Q2 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 15: History and Main Shareholders
Q2 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 16: Acerinox Principles and Values
Q2 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 16
Slide 17: Acerinox Production Capacity
Q2 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 18: Stainless Steel World Production
Q2 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 Thousand mt 55,000 World production of 50,000 Stainless Steel in 45,000 2018: 40,000 50.7 million mt 35,000 (+5.5% over 2017) 30,000 25,000 Compound annual growth rate 1950 – 2018: 20,000 15,000 + 5.9% 10,000 5,000
Slide 19: Stainless Steel Use per Sector
Q2 2019 RESULTS PRESENTATION S TA I N L E S S S T E E L U S E P E R S E C T O R , 2 0 1 8 Other transport 5% Electrical Machinery 8% Metal products Motor vehicles 9% 38% Construction 12% Mechanical engineering 29% Source: ISSF 19
Slide 20: Stainless Steel World Production
Q2 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 Thousand mt China accounts for 55% of world production in 2018 50 40 Others Japan 30 India China 20 USA Europe 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Others:
Slide 21: Acerinox Production
Q2 2019 RESULTS PRESENTATION ACERINOX PRODUCTION Thousand mt 652 637 611 668 605 615 631 668 639 617 628 601 611 562 546 575 516 570 M E LT I N G S H O P -9% over Q1 2019 -11% over Q2 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 593 524 536 498 481 526 56
Slide 22: Balance Sheet
Q2 2019 RESULTS PRESENTATION BALANCE SHEET ASSETS LIABILITIES Million € Jun-19 2018 Jun 18 Variation Million € Jun-19 2018 Jun 18 Variation Non-current assets 2,144.25 2,133.77 2,131.28 0.5% Equity 2,019.70 2,119.30 2,014.62 -4.7% Current assets 2,572.42 2,473.82 2,603.53 4.0% Non-current liabilitie
Slide 23: Working Capital
Q2 2019 RESULTS PRESENTATION W O R K I N G C A P I TA L 2,000 1,500 1,000 Million € 500 0 -500 -1,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Jun-19 Inventories Trade Debtors Trade Creditors Working Capital 23
Slide 24: Net Financial Debt
Q2 2019 RESULTS PRESENTATION NET FINANCIAL DEBT 1,200 1,000 800 600 Million € 1,075 1,084 887 400 711 582 616 620 609 642 529 552 200 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jun 2019 Gearing 61.3% 56.3% 47.1% 33.9% 34.1% 33.2% 35.1% 28.6% 30.9% 26.0% 31.8% NFD / LTM -5.63 2.84 2.60 2.94
Slide 25: H1 Cash Flow
Q2 2019 RESULTS PRESENTATION H1 CASH FLOW Million € 25
Slide 26: Capital Allocation
Q2 2019 RESULTS PRESENTATION C A P I TA L A L L O C AT I O N CAPEX RETURN TO SHAREHOLDERS 173 173 (*) Scrip dividend 0.50 144 0.44 0.45 0.45 94 € / share Million € 2015 2016 2017 2018 2016 (*) 2017 2018 2019 CAPEX IN PROGRESS: • Coil build up line - NAS DIVIDEND INCREASE 11% • Ladle furnace - Acerin
Slide 27: Excellence Plan V
Q2 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, Personnel, Commercial Management and control tool and
Slide 28: The Next Step: Excellence 360º
Q2 2019 RESULTS PRESENTATION THE NEXT STEP: EXCELLENCE 360º 28
Slide 29: Excellence 360º
Q2 2019 RESULTS PRESENTATION EXCELLENCE 360º 29
Slide 30: Thank You
Q2 2019 RESULTS PRESENTATION THANK YOU