Aperam S.a. · EURONEXT:APAM
Aperam — Q1 2017 Earnings Presentation
24 slides from Aperam's earnings presentation, May 11, 2017
Slide 1: First quarter 2017
First quarter 2017 May 11th, 2017 © Aperam 1
Slide 2: 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 3: Introduction & overview
Introduction & overview Highlights: • Health and Safety: LTI frequency rate of 1.1x in Q1 2017 compared to 0.8x in Q4 2016. • Steel Shipments of 486 thousand tonnes in Q1 2017, a 7% increase compared to steel shipments of 457 thousand tonnes in Q4 2016. • EBITDA of USD 171 million in Q1 2017, compar
Slide 4: Health & Safety Performance
Health & Safety Performance Lost Time Injury Frequency rate* 4.0 3.0 2.0 1.0 0 Health & Safety frequency rate of 1.1x in Q1 2017 * WorldSteel-standard: Fr = lost time Injuries per 1.000.000 worked hours; based on own personnel and contractors 4
Slide 5: Environment and markets
First quarter 2017 Environment and markets 5
Slide 6: Stainless steel prices
Environment and markets Stainless steel prices Nickel - LME Cash Chinese versus European CR 304 2B 2mm coil transaction price* (USD/t) (USD/t) 35 000 5000 4500 30 000 4000 25 000 3500 20 000 3000 2500 15 000 2000 10 000 1500 5 000 1000 Chinese prices European prices Stainless steel selling prices sh
Slide 7: Performance and prospects
First quarter 2017 Performance and prospects 7
Slide 8: Solid evolution of profitability
Financial results Solid evolution of profitability Quarterly adjusted EBITDA[1] evolution (USD m.) Quarterly Net income evolution (USD m.) 13,7% 13,7% 100 100 1,20 1,40 1,40 13,4% 13,4% 12,2% 12,2% 90 90 1,20 1,20 11,0% 1,20 10,4% 11,0% 10,4% 80 80 1,00 1,00 0,75 70 70 0,68 0,69 0,63 0,80 0,80 0,75
Slide 9: First quarter operating performance
Performance and prospects First quarter operating performance Shipments (‘000t) Q1 2017 adjusted EBITDA* per division (USD million) [1] 520 483 486 144 457 457 117 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Adjusted EBITDA* (USD million) 171 144 123 124 112 33 23 12 12 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q
Slide 10: Leadership Journey
Performance and prospects Leadership Journey® Cumulated gains (USD million) Asset upgrade program launched on best performing assets Status • Productivity improvement of the downstream 600 facilities in Genk (CAP2), Gueugnon (CAP10) Tranche 1 and Timoteo (Sendzimir Mill #1). 550 USD52m of Capex •
Slide 11: Financial results
First quarter 2017 Financial results 11
Slide 12: First quarter P&L highlights
Financial results First quarter P&L highlights EBITDA to net income (USD million) (38) (38) (12) (12) 00 (28) (28) 171 171 133 133 121 121 93 93 EBITDA EBITDA Depreciation, Depreciation, Operating Operating Net Net interest interest && Forex Forex Pre-tax Pre-tax Tax Tax && Net Net income income amo
Slide 13: First quarter cash flow highlights
Financial results First quarter cash flow highlights Free cash flow (USD million) (153) (153) 171 9 27 (42) (42) (15) (15) EBITDA EBITDA Working Working capital capital Net ffinancial inancial Cash-f low Cash-flow Capex Capex and and other other Free Free cash-f low bef cash-flow ore before charges,
Slide 14: Net debt and financial ratios
Financial results Net debt and financial ratios Net debt and gearing[1] evolution Net Debt / EBITDA[2] evolution (USD million) 1 200 29% 30% 4,0 3,76 1 150 26% 26% 1 050 1 000 23% 25% 950 20% 3,0 850 2,60 800 20% 2,36 750 2,20 14% 600 650 15% 2,0 1066 550 878 9% 400 816 6% 10% 450 690 0,98 1,0 350 5
Slide 15: Aperam's value proposition
First quarter 2017 Aperam’s value proposition 15
Slide 16: Aperam value strategy
Aperam value strategy A solid and growing value, sustainably profitable • Diminishing raw material advantages in China 1. Attractive • European stainless steel market restructured outlook • Tariff measures in both Brazil and Europe • Brazilian growth potential 2. Cost • Optimized industrial footprin
Slide 17: Q&A
Q&A Rotterdam Central, Pays Bas Team CS: Benthem Crouwel Architekten, Amsterdam MVSA Meyer en Van Schooten Architecten, A’dam West 8, Rotterdam © Jannes Linders Nuance 316L d’aspect Uginox Mat
Slide 18: Appendix
First quarter 2017 Appendix 18
Slide 19: Aperam's value strategy: A customer driven company
First quarter 2017 Aperam’s value strategy: A customer driven company focused on its self-help story
Slide 20: Unlocking value through the Leadership Journey
Aperam value strategy Unlocking value of Aperam’s best performing assets through the Leadership Journey® Leadership Journey® initiatives: Enhancing the potential of Asset upgrade program launched on best performing assets best performing assets Status Launched at the early stage of the program, the
Slide 21: Strengthening differentiation through the Top Line strategy
Aperam value strategy Strengthening product and service differentiation through the Top Line strategy Shipments of Top Line products developments in kT 350 300 • Toplines are commercial projects focusing on 250 Top Line development of Aperam’s most profitable product, mindset segment, client or geog
Slide 22: Leverage Aperam's unique position in Europe
Aperam value strategy Leverage Aperam’s unique position in Europe European stainless steel industry footprint after restructuring Key strengths of the European operations of Aperam Finishing line • The only integrated upstream Steel making Sourcing operations in the heart of Europe, with the best ac
Slide 23: Optimise value creation in South America
Aperam value strategy Optimise value creation in South America thanks to a perfectly adapted asset base and flexible sales management Key pillars of the mitigation plan in Brazil Aperam’s assets optimisation in South America • Ensure full utilisation rate with the best margin Product mix Geographica
Slide 24: Aperam value strategy: financial policy
Aperam value strategy A financial policy to maximize the long term growth of the company and the value accretion for its shareholders while maintaining a strong Balance Sheet consistent with Investment Grade Financial ratios. Financial Policy 2017 CAPEX 2017 Company Invest in sustaining and upgradin