Acerinox Sa · BME:ACX
Acerinox Sa — Q2 2022 Earnings Presentation
44 slides from Acerinox Sa's earnings presentation, 2022
Slide 1: Q2 2022 Results presentation
1 Q2 2022 Results presentation
Slide 2: Disclaimer
2 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 regarding the intent, belief o
Slide 3: Strong Contributor to the Circular Economy
Q2 2022 Results Presentation 3 Strong Contributor to the Circular Economy Main KPIs performance during the first six months of 2022: Circular economy Environment Social WASTE REDUCTION GHG EMISSIONS SAFETY PERFORMANCE TARGET 90% valorisation of waste by TARGET 20% reduction in GHG emissions TARGET 1
Slide 4: H1 2022: Record EBITDA of 945 million EUR
Q2 2022 Results Presentation 4 H1 2022: Record EBITDA of 945 million EUR EBITDA of 945 Net debt remains % H1 22 / Million EUR H1 2022 H1 2021 H1 21 million EUR a new well under control Group record at 574 million EUR Melting production (‘000 Mt) 1,290 1,344 -4% with EBITDA with gearing of Net Sales
Slide 5: Europe / The best performance in the history of the Group
Q2 2022 Results Presentation 5 The best performance in the history of the Group Q2 Market Highlights Q2 Acerinox Highlights Restocking process Ongoing price increases Q2 Production of 622 thousand tonnes down due to in stainless steel various operational issues: Positive impact of raw • -7% melting
Slide 6: Q2 2022: EBITDA an all time record
Q2 2022 Results Presentation 6 Q2 2022: EBITDA an all time record Q2 Q1 Q2 % Q2 22 % Q2 22 Million EUR / Q2 21 / Q1 22 2022 2022 2021 Melting production (‘000 Mt) 622 668 675 -8% -7% Net Sales 2,535 2,287 1,625 56% 11% EBITDA 523 422 217 141% 24% EBITDA margin 21% 18% 13% EBIT 473 375 173 174% 26% 5
Slide 7: Stainless Steel: The Outstanding Performance Continues in Q2
Q2 2022 Results Presentation 7 Stainless Steel: The Outstanding Performance Continues in Q2 % Q2 22 / % H1 22 / Million EUR Q2 2022 Q1 2022 Q2 2021 H1 2022 H1 2021 Q2 21 H1 21 Melting production Exceptionally strong EBITDA 601 646 654 1,247 1,304 -8% -4% (‘000 Mt) of 481 million EUR with margin 2,23
Slide 8: High Performance Alloys: Record EBITDA since the acquisition of VDM
Q2 2022 Results Presentation 8 High Performance Alloys: Record EBITDA since the acquisition of VDM % Q2 22 / % H1 22 / Million EUR Q2 2022 Q1 2022 Q2 2021 H1 2022 H1 2021 Q2 21 H1 21 EBITDA of 41 million EUR in Melting production 21 22 22 44 40 -1% 10% (‘000 Mt) the quarter, the strongest since the
Slide 9: Cashflow again impacted by significant investment in NWC
Q2 2022 Results Presentation 9 Cashflow again impacted by significant investment in NWC Million EUR Q2 523 Flexible capital allocation decisions focused on what is best all round for the business and stakeholders Operating Cash Flow of 2 million EUR in Q2 and 77 million EUR in H1 2022 Conversion EBI
Slide 10: Conclusions & Outlook
Q2 2022 Results Presentation 10 Conclusions & Outlook 01 02 03 Exceptional second quarter Our focus on controlling Cash flow once again and record first half, but costs and structurally impacted by significant challenging market improving the business investment in working conditions remain continue
Slide 11: Acerinox: in the best shape in its history
Q2 2022 Results Presentation 11 Acerinox: in the best shape in its history Regionalization trend will attract more purchases in local markets and will contribute to 01 increasing stainless steel consumption. It is a unique opportunity to bring industry back to USA and Europe 02 Trade defense measure
Slide 12: Q2 2022 Results presentation
12 Q2 2022 Results presentation
Slide 13: Acerinox investment case
13 Acerinox investment case Acerinox is a global leader in stainless steel and high performance alloys, creating the most efficient materials for a sustainable future, maximising benefits for society and building value for our stakeholders
Slide 14: Contents
14 Contents 1. Investment Opportunity 2. The Sustainable Global Leader 3. Growth and Strategies 4. More about us
Slide 15: Investment Case
15 1. Investment Case The opportunity
Slide 16: Acerinox at a Glance
16 Acerinox at a Glance A Sustainable Global Leader in Stainless Steel and High Performance Alloys • #1 in stainless steel in the USA, Highly sustainable products and present with 35% market share. 50% of in every aspect of life. Highest quality the Group’s sales in the USA. standards, and with no o
Slide 17: Our ESG Model is a Commitment to the Future
17 Our ESG Model is a Commitment to the Future SAFETY, our Committed to the long-term, number 1 priority 2030 objectives Lost Time Injury Frequency Rate LTIFR x 1.000k reduction -31.82% in 2021 Hard-to-abate, A reference in circular economy, ready to adapt product 100% recyclable Efficiency at all l
Slide 18: Investment Case. The Opportunity
18 Investment Case. The Opportunity Long-term sector growth stimulated by the exponential increase in the Stainless steel and high-performance alloys uses in high added value sectors. Reference in the Circular Economy. Strategic location of the 13 production plants on 4 continents and a Global marke
Slide 19: The Sustainable Global Leader
19 19 2. The Sustainable Global Leader
Slide 20: One of the World's Largest Stainless Steel and HPA Groups
20 One of the World’s Largest Stainless Steel and HPA Groups 13,700 +8,206 Customers Employees 86 +18,000 VDM (5) Countries Solutions for supplied customers´ request VDM (2) NAS Acerinox Europa Roldán Inoxfil Bahru 24 +90 Sales agents Certifications of quality Columbus 13 53 25 Factories Commercial
Slide 21: We Produce and Sell the Most Efficient Materials
21 We Produce and Sell the Most Efficient Materials for the future, with no alternative substitute Sophisticated products… …with high growth potential Stainless Steel High Performance Alloys 12% 4% 1% 15% 22% 29% 8% Profitable Aesthetic Corrosion resistant 8% 5% 38% 24% 34% Construction Aerospace Re
Slide 22: Our Products are Essential, Sustainable, Versatile and Efficient
22 Our Products are Essential, Sustainable, Versatile and Efficient Stainless steel and high Acerinox is present in performance alloys: Sophisticated products require every aspect of life sustainable products best-in-class materials Transport Household & Daily Life Electrical Infrastructure Energy &
Slide 23: ESG: Integral to Acerinox's DNA
23 ESG: Integral to Acerinox’s DNA Greater efficiency leads to fewer costs & a lower environmental impact, thus mitigating the effects of climate change Energy & Greenhouse Gas reduction 2030 Goals 90% 20% Valorisation Increase use of Electrode Doping Natural Deep artificial intelligence Air leaks R
Slide 24: ESG: Integral to Acerinox's DNA
24 ESG: Integral to Acerinox’s DNA Social Responsibility with the Entire Community Acerinox acting as local Acerinox guiding the community partner industry as an employer Safety, our first priority Responsible tax action ICAP Programme* • Co-operative and multilateral process of tax risk Long-term G
Slide 25: ESG: Integral to Acerinox's DNA
25 ESG: Integral to Acerinox’s DNA Governance and Ethics as our Understanding of the Business Board of directors 33% 66% 4 6.8 Women Independent Board Years average (40% in 2024) directors committees Director tenure • Succession planning in place for key positions. • The 4 independent committees are
Slide 26: We Deliver Solid Revenues and Earnings Growth Consistently
26 We Deliver Solid Revenues and Earnings Growth Consistently Consolidated Group figures Million EUR Revenues EBITDA Net Financial Debt 989 772 6,706 609 5,011 552 578 4,627 4,754 4,668 495 489 480 364 384 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Slide 27: With a Strong Cash Generation and Efficient Capital Allocation
27 …With a Strong Cash Generation and Efficient Capital Allocation Consolidated Group figures Operating Cash Flow CAPEX Return to Shareholders Million EUR 421 Million EUR 412 (*) € / share 388 0.50 0.50 0.50 366 359 326 185 155 0.45 0.45 128 90 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017
Slide 28: 2021: a new record in a very challenging market was achieved
28 2021: a new record in a very challenging market was achieved €6,706m €989m €388m 2,619 kMT Total Revenues EBITDA Operating Cash Flow Stainless Steel production €578m €572m 0.58x 78 kMT Net Debt Net Profit Debt/EBITDA High Performance ratio Alloys production
Slide 29: With a Robust Balance Sheet
29 With a Robust Balance Sheet Liquidity remains best in class, covering fully all maturities Net Debt 2,004 Robust balance sheet AVAILABLE LINES Net Financial of which 97% is 729 Debt of free of covenants on LONG TERM MATURITIES: EUR 1,554 MILLION €578m results Weighted Cost Immediate liquidity CAS
Slide 30: H1 2022 A Record Net Profit
30 … and We Continue to Build on Our Success: H1 2022 A Record Net Profit EBITDA of 945 Net debt remains % H1 22 / Million EUR H1 2022 H1 2021 H1 21 million EUR a new well under control Group record at 574 million EUR Melting production (‘000 Mt) 1,290 1,344 -4% with EBITDA with gearing of Net Sales
Slide 31: Growth Opportunities and Strategy
31 3. Growth Opportunities and Strategy
Slide 32: A Solid Long-Term Strategy that Remains Intact
32 A Solid Long-Term Strategy that Remains Intact Sustainability Excellence Core of our Improving due to business model digitalisation and 360º planning, cost reduction Acerinox is committed programmes and to the Circular Economy optimising the commercial network Added value Strong balance sheet Enh
Slide 33: An Attractive & Resilient Investment Opportunity
33 An Attractive & Resilient Investment Opportunity Excellence Value Strong Sustainability added balance sheet • Safety: number 1 priority • VDM integration • Efficient capital allocation • Awarded with the Gold Level on track by Ecovadis • Excellence 360º • Consistent shareholder • Synergies beyond
Slide 34: Corporate Strategy: Our 2022-2025 Targets
34 Corporate Strategy: Our 2022-2025 Targets EBITDA INTEGRATION SAFETY MARGIN SYNERGIES LTIFR (Lost Time Injury Frequency Rate) reduction: > +10% €22 m (2023) 10% / year (2021: 32%) (2021: 15%) (2021: €12 m) NFD/ SAVINGS EBITDA 360º <1.2x €140 m (2023) (2021: 0.58x) (2021: €73 m)
Slide 35: Acerinox: A Forward-Thinking Investment Opportunity
35 Acerinox: A Forward-Thinking Investment Opportunity 2020 - 2021 . 2022-2023 ADQUISITION AND FOCUS OPEN TO NEW INTEGRATION VDM-METALS INVESTMENT OPPORTUNITIES Acerinox, S.A. 100% • Always analysing companies • Enhancement of product mix, less that can complement or cyclical earnings stream improve
Slide 36: Acerinox: A Forward-Thinking Investment Opportunity
36 Acerinox: A Forward-Thinking Investment Opportunity Preparing for future shifts CEO’s Vision 2022 - 2023 Challenges Our constant pursuit of competitiveness means we are highly efficient. At Acerinox we foresee efficiency and sustainability as two concepts with a single destination. Because we str
Slide 37: Investor Relations Team
37 Investor Relations Team Carlos Lora-Tamayo Villacieros María Uclés Ruz Head of Investors Relations Investor Relations Calle Santiago de Compostela, 100 – 28035 Madrid, España Teléfono: +34 91 398 52 38 / +34 91 398 51 56 · E-mail: investor.relations@acerinox.com
Slide 38: More about us
38 4. More about us
Slide 39: Production Sites
39 Production Sites High Performance Stainless Steel Division Alloys Division PONFERRADA KENTUCKY & IGUALADA Carrolton, USA León & Barcelona, Spain Flat product Long product Long product Unna, Duisburg, Siegen, Altena & • Melting Shop • Hot Rolling Shop • Hot Rolling Shop Werdohl, Germany • Hot Roll
Slide 40: ESG, Integral to Acerinox's DNA
40 ESG, Integral to Acerinox’s DNA Committed to the United Other awards Nations’ 2030 Agenda and ratings Circular Economy Pact Directly applicable SDGs Carbon Disclosure Project Climate ’B’ Water ‘B’
Slide 41: Acerinox is Present in Every Aspect of Life
41 Acerinox is Present in Every Aspect of Life Transport Household High corrosion resistance, and catering withstands high temperatures Rust resistant, easy to and pressures and offers high clean. Becoming essential mechanical performance. in modern design (cutlery). Food & Healthcare & beverages ph
Slide 42: Stainless Steel and High Performance Alloys: Sustainable products
42 Stainless Steel and High Performance Alloys: Sustainable products Water Electrical Corrosion is minimal, it does not machinery contaminate water and does not Meets durability and corrosion require an additional coating. resistant requirements. Allows for design corrections Environmentally-friendl
Slide 43: Sophisticated Products Require Best In Class Materials
43 Sophisticated Products Require Best In Class Materials Infrastructure & Energy & construction renewables Chosen as a structural steel to Present in the obtaining and prevent both carbonation and distribution of hydrocarbons and chloride corrosion. Nickel alloys biofuels. Essential in the resistan
Slide 44: Acerinox investment case
44 Acerinox investment case Acerinox is a global leader in stainless steel and high performance alloys, creating the most efficient materials for a sustainable future, maximising benefits for society and building value for our stakeholders Contact: investor.relations@acerinox.com