Acerinox Sa · BME:ACX
Acerinox Sa — FY2003 Earnings Presentation
34 slides from Acerinox Sa's earnings presentation, Feb 27, 2004
Slide 1: Business Year 2003 Results
SPANISH ANALISTS ASOCIATION BUSINESS YEAR 2003 RESULTS Madrid, Madrid, 27 27 February February 2004 2004
Slide 2: Evolution of GDP. Years 1998–2003e
EVOLUTION OF GDP. YEARS 1998 – 2003e 10 9 8 CHINA 7 6 WORLD % 5 USA 4 3 EUROPEAN 2 UNION (15) 1 0 1998 1999 2000 2001 2002 2003e Source : International Monetary Fund (IMF) and Fortis Bank
Slide 3: Official Nickel Price in the L.M.E.
OFFICIAL NICKEL PRICE IN THE L.M.E. (Monthly Average Values) 1984 - 2003 US$/Mt. Ni. 19,000 19.000 17,000 17.000 16,610 Ending 15,000 15.000 2003 13,000 13.000 11,000 11.000 9,000 9.000 7,000 7.000 7,110 Beginning 5,000 5.000 2003 3,000 3.000 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02
Slide 4: Ferrochrome Price
FERROCHROME PRICE (Metal Bulletin) USD / Lb. Cr. 1.20 1,20 1,20 1,00 1.00 1,00 0.80 0,80 0,80 0.57 0.60 0,60 0,60 Ending 2003 0.40 0,40 0,40 0.34 Beginning 0.20 0,20 0,20 2003 0 0,00 89 90 91 92 93 94 95 96 97 98 01 99 00 01 02 03
Slide 5: Molybdenum Price
MOLYBDENUM PRICE (Metal Bulletin) USD / Lb. Mo. 18 16 14 12 10 8 7.6 Ending 6 2003 4 3.2 2 Beginning 2003 0 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
Slide 6: Apparent World Consumption Cold Rolled Flat Products
APPARENT WORLD CONSUMPTION COLD ROLLED FLAT PRODUCTS ASIA CLAIMS HALF OF WORLD CONSUMPTION, CHINA ONE QUARTER 1 3 . 5 0 0 13,500 ‘000 Mt 1 2 . 0 0 0 12,000 anual1990 TasaCAGR -2003(e) -2003(e) crecimiento1990- crecimiento1990 9% WORLD MUNDO : 6.7% : 6,7% 1 0 . 5 0 0 10,500 11% · China · China : 26.6
Slide 7: Stainless Steel Sheet Prices AISI 304 Year 2003
STAINLESS STEEL SHEET PRICES AISI. 304 2,0 mm YEAR 2003 US$/Mt, final price, alloy surcharge included 3,750 3.750 3,500 3.500 3,250 3.250 3,000 3.000 USA 2,750 2.750 2,500 2.500 GERMANY 2,250 2.250 2,000 2.000 HONG KONG 1,750 1.750 1,500 1.500 1,250 1.250 1,000 SOURCE: Metal Bulletin 1.000 Research
Slide 8: Evolution of the Euro, Asian Currency and South African Rand vs USD
EVOLUTION OF THE €, ASIAN CURRENCY AND SOUTH AFRICAN RAND VS USD 40 % 36 32 RAND +30.3 28 24 € +20.4 20 JPY +10.9 16 Japan 12 8 CNY +0.0024 China 4 0 KRW - 0.6 South Korea -4 -8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Reuters
Slide 9: Flat Product Productions of the Acerinox Group
FLAT PRODUCT PRODUCTIONS OF THE ACERINOX GROUP (´000 Mt) 2.250 MELTING SHOP 2.250 HOT ROLLING 2. 250 COLD ROLLING 2,250 2,250 2,250 2.2 mill. mill. tons. tons. 2.1 mill. mill. tons. tons. 2.000 2.000 2,000 2. 000 2,000 2,000 +24.6% +10.4% 1.750 1,750 1.750 1,750 1. 750 1,750 1.500 1,500 1.500 1,500
Slide 10: Long Product Productions of the Acerinox Group
LONG PRODUCT PRODUCTIONS OF THE ACERINOX GROUP ´000 Mt 160 140 120 100 TOTAL 80 ROLDAN 60 40 NAS 20 0 99 00 01 02 03
Slide 11: Evolution of Net Sales of Acerinox Group
EVOLUTION OF NET SALES OF ACERINOX GROUP Million Euros 3,000 3.000 2,913 2,750 2.750 2,500 2.500 Consolidated Group 2,250 2.250 2,000 2.000 ACERINOX S.A. 1,750 1.750 Trading Companies 1,500 1.500 1,436 1,250 1.250 1,239 N.A.S. 1,000 1.000 852 COLUMBUS 750 750 746 500 500 ROLDAN + INOXFIL 250 250 258
Slide 12: Geographical Distribution of the Acerinox Group. Net Sales Year 2003
GEOGRAPHICAL DISTRIBUTION OF THE ACERINOX GROUP. NET SALES YEAR 2003 YEAR 2002 Europe Europe Oceania 45.1% 45.6% Oceania 0.6% 0.1% Africa Americas 6% Africa 26.1% 5.4% Asia Asia Americas 22.8% 21.3% 27%
Slide 13: Factory of Campo de Gibraltar
FACTORY OF CAMPO DE GIBRALTAR
Slide 14: Evolution of Productions at Campo de Gibraltar Factory (1973–2003)
EVOLUTION OF PRODUCTIONS AT CAMPO DE GIBRALTAR FACTORY (1973 – 2003) ´000 Mt 1.100 1,100 1.000 1,000 1,012 900 838 800 700 600 618 500 Melting Shop 400 300 Hot Rolling 200 Cold Rolling 100 0 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03
Slide 15: Acerinox, S.A. 31st December 2003 Results
31ST DECEMBER, 2003 RESULTS ACERINOX, S.A. Figures in million Euros Year 2003 Year 2002 % Variation NET SALES 1,436.1 1,197.9 +19.9 DEPRECIATION 49.5 52.7 -6.0 PROFIT AFTER TAXES 102.7 93.3 +10.1 NET CASH FLOW 152.2 146.0 +4.3
Slide 16: Factory of Kentucky (U.S.A.)
FACTORY OF KENTUCKY (U.S.A.)
Slide 17: Evolution of Productions at Kentucky Factory
EVOLUTION OF PRODUCTIONS AT KENTUCKY FACTORY ´000 Mt 700 600 500 Melting Shop 400 300 Hot Rolling 200 Cold Rolling 100 0 99 00 01 02 03
Slide 18: NAS Long Products
NAS LONG PRODUCTS
Slide 19: NAS 31st December 2003 Results
31ST DECEMBER, 2003 RESULTS NAS Figures in million USD Year 2003 Year 2002 % Variation NET SALES 852.4 618.4 +37.8 DEPRECIATION 43.9 31.5 +39.5 PROFIT AFTER TAXES 36.8 43.8 -16.0 NET CASH FLOW 80.7 75.3 +7.3
Slide 20: Nº3 Cold Rolling Sendzimir Mill
Nº3 COLD ROLLING SENDZIMIR MILL
Slide 21: Nº3 Annealing and Pickling Line
Nº3 ANNEALING AND PICKLING LINE
Slide 22: Factory of Middelburg (South Africa)
FACTORY OF MIDDELBURG (South Africa)
Slide 23: Evolution of the South African Rand vs USD and Euro
EVOLUTION OF THE SOUTH AFRICAN RAND VS USD AND EURO. YEAR 2003. Daily official data of the ECB 40% 31- 31-Dec- Dec-2002 31- 31-Dec- Dec-2003 35% Exchange rate ZAR / USD : 0.1164 0.1517 Exchange rate ZAR / EUR : 0.1110 0.1201 + 3 0 . 3 % 30% 25% % 20% 15% 10% + 8 . 2 % 5% 0% -5% -10% Jan Feb Mar Apr
Slide 24: South African Apparent Stainless Steel Consumption
SOUTH AFRICAN APPARENT STAINLESS STEEL CONSUMPTION ´000 Mt 160 150 . 7 % 140 : +7 T H OW 130 GR UAL 120 NN D A UN 110 P O OM 100 C 90 80 1996 1997 1998 1999 2000 2001 2002 2003e
Slide 25: Columbus Stainless Production
p g o g n h n i l S i l l l o g o R n i R t l t d l e o o M H C COLUMBUS STAINLESS PRODUCTION ) e ( 5 0 0 2 ) e ( 4 0 0 2 3 0 0 2 +22.8% 2 0 0 +24.6% 2 ´000 Mt 1 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 7 6 5 4 3 2 1
Slide 26: Columbus 31st December 2003 Results
31ST DECEMBER, 2003 RESULTS COLUMBUS Figures in million Euros Year 2003 Year 2002 % Variation NET SALES 746.2 569.0 +31.1 DEPRECIATION 16.6 9.0 +84.3 PROFIT AFTER TAXES -15.4 22.7 ---- NET CASH FLOW 1.1 31.7 -96.4
Slide 27: Foundations of Nº3 Sendzimir Mill
FOUNDATIONS OF Nº3 SENDZIMIR MILL
Slide 28: Acerinox Group 31st December 2003 Results
31ST DECEMBER, 2003 RESULTS ACERINOX GROUP Figures in million Euros Year 2003 Year 2002 % Variation NET SALES 2,913.2 2,499.8 +16.5 DEPRECIATION 127.7 111.6 +14.5 PROFIT AFTER TAXES 125.6 175.5 -28.4 NET CASH FLOW 253.3 287.1 -11.7
Slide 29: Evolution of R.O.E. and R.O.C.E.
EVOLUTION OF R.O.E. AND R.O.C.E. ACERINOX CONSOLIDATED GROUP R.O.E. (%) R.O.C.E. (%) Average value : 8.5 Average value : 11.1 11.0 7.6 16.2 6.9 7.7 9.4 01 02 03 01 02 03
Slide 30: Evolution of Net Investments and Gearing
EVOLUTION OF NET INVESTMENTS AND GEARING ACERINOX CONSOLIDATED GROUP NET INVESTMENTS GEARING (million euros) (%) 452 232 (*) 269 282 39.5 22.2 220 17.9 01 02 03 01 02 03 (*) 232 million € concern to the acquisition of the 64% of Columbus Stainless
Slide 31: Return to Shareholders
RETURN TO SHAREHOLDERS Euros per share 1,25 1.25 1.14 1.08 1.08 1,00 1.00 0.90 Complementary 0.78 Dividend 0.72 0,75 0.75 0.78 0.78 0,60 Interim Dividend 1.08 0.46 0.48 0.48 0,50 0.50 0.48 0.90 Dividends 0.36 0.48 0.48 Issue Premiun Refund 0,25 0.25 0.36 0.30 0.30 0.30 0.30 0.24 0.12 0,00 0 94 95 96
Slide 32: Evolution of the Stock Exchange Market and USD. Year 2003
EVOLUTION OF THE STOCK EXCHANGE MARKET AND USD. YEAR 2003. Daily percentage data 3 0 % 2 8 . 1 % 2 5 % 2 0 % 1 5 % 1 0 % 6 . 8 % 5 % 0 % - 5 % - 1 0 % - 1 5 % - 1 7 . 0 % - 2 0 % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec USD/EURO (Official data of the IBEX 35 ACERINOX European Central Bank) Ba
Slide 33: Monthly Evolution of Acerinox, S.A. and IBEX-35 (1999–2003)
IBEX 35= 9,836.6 IBEX 35= 7,737.2 +88.2% -21.3% 3 DDDD 0 3 SSSS 0 MONTHLY EVOLUTION OF ACERINOX, S.A. AND 3 JJJJ 0 31-12-98 ACX= 19.9 30-12-03 ACX= 37.4 3 MMMM 0 2 DDDD 0 2 SSSS 0 2 JJJJ 0 2 MMMM 0 5 3 1 DDDD 0 X E 1 B I SSSS 0 1 JJJJ 0 1 MMMM 0 0 DDDD 0 IBEX-35 (1999-2003) 0 SSSS 0 X 0 JJJJ 0 O N I
Slide 34: World Wide Presence of the Acerinox Group
WORLD WIDE PRESENCE OF THE ACERINOX GROUP Flat Product Factory Long Product Factory