Aperam S.a. · EURONEXT:APAM
Aperam — Shareholder Meeting (May 2014)
31 slides from Aperam's shareholder meeting presentation, May 8, 2014
Slide 1: Annual General Meeting and Extraordinary General Meeting of Shareholders
Annual General Meeting and Extraordinary General Meeting of Shareholders 8 May 2014
Slide 2: Thank you
Annual and Extraordinary General Meetings of Shareholders 8 May 2014 Thank you 2
Slide 3: Agenda Items General Meetings of Shareholders
Agenda Items General Meetings of Shareholders Annual General Meeting of Shareholders 1. Presentation of the management report of the Board of Directors and the reports of the independent company auditor on the standalone annual accounts of the Company prepared in accordance with the laws and regulat
Slide 4: Message from the Chairman: Key highlights of the year 2013
Message from the Chairman Key highlights of the year 2013 – 2013, a year marked by challenging market conditions for Aperam with pressure on prices of base metals and nickel and weak demand in its key markets – Aperam’s own actions started to yield results with improving operational and financial pe
Slide 5: Group presentation and presentation of the consolidated financial statements and the parent company accounts
Annual General Meeting of Shareholders Group presentation and presentation of the consolidated financial statements and the parent company accounts 8 May 2014
Slide 6: 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 7: Agenda
Agenda • Health & Safety • Aperam’s profit driving pillars • Performance • Consolidated Financial Statements and Parent Company Accounts 7
Slide 8: Health & Safety
Annual General Meeting of Shareholders 8 May 2014 Health & Safety 8
Slide 9: Health & Safety Performance
Health & Safety Performance Lost Time Injury Frequency rate* Key Comments 4.0 – Health and Safety Day on 29 April 2014 – Member of the FSTE4 Good Index 3.0 and the United Nations Global Compact – Sustainability Report 2.0 1.0 0 11 12 12 12 12 13 13 13 13 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10
Slide 10: Aperam's Profit driving pillars
Annual General Meeting of Shareholders 8 May 2014 Aperam’s Profit driving pillars
Slide 11: Strategic priorities maintained allowing to capture new opportunities
Aperam’s profit driving pillars Strategic priorities maintained allowing to capture new opportunities Key strategic priorities 5 profit-driving pillars 1 1 Aiming at “best in cost” with the Leadership Journey® 1 1 Leadership Journey® 1 2 Optimizing portfolio with the Top Line Strategy 1 2 Top Line S
Slide 12: Leadership Journey target
Aperam’s profit driving pillars Leadership Journey® target Cumulated gains (USD million) Leadership Journey® breakdown for 2014 500 SGA cost Productivity 6% 3% 450 Raw Material, Yield & Quality 28% 400 Fixed cost 475 35% 350 369 300 349 324 Technological Fuels 299 8% Others variable cost 250 1% Ener
Slide 13: Further mix improvement expected
Aperam’s profit driving pillars Further mix improvement expected Market segments Shipments of “Top line” products (‘000t) Continue profitable growth Aperam 2012-2013 500 volume change 400 +90kt over 3 years Aust 2M BA HRAP 300 Aust . 2M 2B 2B thin HRAP Aust . 2B thick 200 Ferr BA Aust . LC2i Selecti
Slide 14: Brazilian development
Aperam’s profit driving pillars Brazilian development Stainless steel flat stainless steel consumption per capita (kg/year) South American Stainless steel demand (in kt) 7 800 6 700 600 5 500 4 400 3 300 2 200 1 100 0 0 South America USA Europe China F F F F F 10 11 12 13 14 15 16 17 18 20 20 20 20
Slide 15: Specific markets' prospects to be key
Aperam’s profit driving pillars Specific markets’ prospects to be key Continuously variable Alloys & Specialties sales breakdown LNG* tankers transmission belt by market 7% 8% 24% 10% 12% Special welding 39% Mould for composite Energy / Oil & Gas aircraft fuselage parts Chemical process industries /
Slide 16: Three years of active restructuring
Aperam’s profit driving pillars Three years of active restructuring Key European restructuring milestone European stainless steel industry footprint after restructuring ¾ January 2011: Aperam spin-off and Leadership Journey® Long term suspension of 100kt of downstream capacity in Isbergues (France)
Slide 17: Performance
Annual General Meeting of Shareholders 8 May 2014 Performance © Aperam 17
Slide 18: Performance Full year 2013
Performance Full year 2013 Shipments (‘000t) EBITDA per Division (USD million) 1,958 1,741 1,749 1,683 1,728 1,447 212 2008 2009 2010 2011 2012 2013 121 EBITDA (USD million) Brazil 106 Brazil 136 930 60 Europe 15 Europe 76 56 410 21 399 292 9 226 217 2012 2013 2012 2013 2012 2013 2008 2009 2010 2011
Slide 19: First Quarter 2014 – Key highlights
Performance First Quarter 2014 – Key highlights Highlights: • Health and Safety frequency rate of 1.0x in Q1 2014 compared to 1.0x in Q4 2013. • Shipments of 475 thousand tonnes in Q1 2014, a 8% increase compared to shipments of 441 thousand tonnes in Q4 2013. • EBITDA of USD 129 million in Q1 2014,
Slide 20: Consolidated Financial Statements and Parent Company Accounts
Annual General Meeting of Shareholders 8 May 2014 Consolidated Financial Statements and Parent Company Accounts
Slide 21: Results 2013 – Consolidated Statements of Operations
Results 2013 – Aperam Group Consolidated Statements of Operations (USDm) 2012 * 2013 Sales 5 261 5 120 EBITDA 217 292 Depreciation and impairment 320 303 2013 versus 2012 : Operating loss (103) (11) – Sales decreased by 3%. - Operating margin % -2,0% -0,2% Income from investments, associates and joi
Slide 22: Results 2013 – Consolidated Statements of Cash Flows
Results 2013 – Aperam Group Consolidated Statements of Cash Flows (USDm) 2012 * 2013 Net loss (111) (100) Non-controlling interests - 1 Depreciation and impairment 320 303 Changes in working capital 156 (18) 2013 versus 2012 : Other (87) 18 – Cash generated by operations Net cash provided by operati
Slide 23: Results 2013 – Consolidated Statements of Financial Position
Results 2013 – Aperam Group Consolidated Statements of Financial Position (USDm) 2012 * 2 013 Non current assets 4 006 3 709 December 31, 2013 versus December 31, Intangible assets 859 808 Property, plant and equipment (PPE) 2 609 2 388 2012 : Investments & Other 538 513 – Net financial debt decreas
Slide 24: Parent Company Accounts – Agenda item 4
Parent Company Accounts Agenda item 4 Proposal of the Board of Directors for the allocation of the results of the Parent Company Accounts in relation to the financial year 2013 (in USD): Parent Company Accounts for the financial period 2013 Loss for the financial year (57,220,541) Profit brought for
Slide 25: Slides on Agenda Items
Annual General Meeting and Extraordinary General Meeting of Shareholders 8 May 2014 Slides on Agenda Items
Slide 26: Agenda item 6: Election of members of the Board of Directors
Annual General Meeting 8 May 2014 Agenda item 6 • Election of members of the Board of Directors Aperam places a strong emphasis on corporate governance. Aperam has four independent directors on its seven members of the Board of Directors. Mr. Lakshmi N. Mittal is the Chairman of the Board of Directo
Slide 27: Resolution VI: Re-election of Laurence Mulliez
Annual General Meeting 8 May 2014 Agenda item 6 • Election of members of the Board of Directors - Resolution VI: The General Meeting re-elects Laurence Mulliez as director of Aperam for a three-year mandate that will automatically expire on the date of the annual general meeting of shareholders to b
Slide 28: Resolution VII: Election of Joseph Greenwell
Annual General Meeting 8 May 2014 Agenda item 6 • Election of members of the Board of Directors - Resolution VII: The General Meeting elects Joseph Greenwell as director of Aperam for a three-year mandate that will automatically expire on the date of the annual general meeting of shareholders to be
Slide 29: Agenda item 8: Authorisation of grants of share based incentives
Annual General Meeting 8 May 2014 Agenda item 8 • Authorisation of grants of share based incentives - Grants of Performance Share Units to the Aperam Management Committee (“MC”) members. - Main objective: effective performance enhancing scheme based on the achievement of Aperam’s strategy aimed at c
Slide 30: Extraordinary General Meeting – Agenda item 1
Extraordinary General Meeting 8 May 2014 Agenda item 1 • Decision to increase the authorised share capital of the Company by an amount equal to 23.3% of the current issued share capital, to authorise the Board of Directors to limit or suppress the preferential subscription right of existing sharehol
Slide 31: Question & Answer Session
Annual General Meeting and Extraordinary General Meeting of Shareholders 8 May 2014 Question & Answer Session