Acerinox Sa · BME:ACX
Acerinox Sa — Q3 2021 Earnings Presentation
34 slides from Acerinox Sa's earnings presentation, Nov 3, 2021
Slide 1: Q3 2021 Results Presentation
Q3 2021 Results Presentation 03 November 2021 1
Slide 2: Forward-looking statements disclaimer
Q3 2021 Results Presentation 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
Slide 3: We are progressing well with our sustainability goals
Q3 2021 Results Presentation Scope 1+2 Emissions Energy intensity Specific water Accident Frequency intensity GJ/tons produced withdrawal intensity Index Metric tons of CO2e/Tons produced m3/ tons produced (Number of LTIFR incidents/Number of hours)*1000k 3.65 -4% 8.58 -2% 8.40 1.11 -13% 1.07 3.19 7
Slide 4: EBITDA of 671 million EUR, 166% higher year on year
Q3 2021 Results Presentation Million EUR Net Sales 4,769 3,451 38% EBITDA of 671 million Solid Balance Sheet Adjusted EBITDA 671 267 152% EUR, 166% higher with net debt at 764 million EUR, down 9% Adjusted EBITDA margin 14% 8% year on year and the best 9 months since year on year despite EBITDA 671
Slide 5: Market Highlights and Acerinox Highlights
Q3 2021 Results Presentation Market Highlights Acerinox Highlights Conditions remain very strong in all markets Q3 Production: Cost inflation impacting right through the value chain • -4% melting production QoQ Freight costs and availability contributing to more • +20% melting production YoY regiona
Slide 6: Q3 showed a further acceleration in EBITDA growth
Q3 2021 Results Presentation Million EUR 2019 2020 2021 Q3 showed a further acceleration in EBITDA growth Q3 EBITDA was the best quarter in 14 years 293 217 A strong contribution from 161 both divisions has 131 structurally improved the 90 97 103 87 74 85 80 Group performance Q1 2019 Q2 2019 Q3 2019
Slide 7: Q3 EBITDA of 293 million EUR up 35% QoQ, and 235% YoY
Q3 2021 Results Presentation Million EUR Net Sales 1,703 1,625 1,120 5% 52% Adjusted EBITDA 293 217 87 35% 235% Adjusted EBITDA margin 17% 13% 8% Q3 EBITDA of 293 Net debt of 764 million million EUR up 35% EUR down 9% QoQ EBITDA 293 217 87 35% 235% QoQ, and 235% YoY and 9% YoY despite EBITDA margin
Slide 8: Stainless Steel: very strong EBITDA margin of 18%
Q3 2021 Results Presentation Million EUR Melting production 629 654 524 -4% 20% (thousand Mt) Net sales 1,493 1,425 935 5% 60% Very strong EBITDA margin Adjusted EBITDA 272 201 86 36% 217% of 18% Adjusted EBITDA 18% 14% 9% margin EBITDA 272 201 86 36% 217% Q3 EBITDA of 272 million EBITDA margin 18%
Slide 9: High Performance Alloys: expected recovery evident in P&L and FCF
Q3 2021 Results Presentation Million EUR The expected recovery is now evident in the P&L and FCF Melting production 19 22 14 -11% 35% (thousand Mt) Net sales 211 201 185 5% 14% Adjusted EBITDA 21 16 2 27% 1,251% HPA has returned to pre-covid levels with 21 million EUR EBITDA Adjusted EBITDA 10% 8% 1
Slide 10: Operating CF of 184 million EUR in 9 months
Q3 2021 Results Presentation Million EUR 293 Operating CF of 184 million EUR in 9 months and 77 million EUR in Q3 despite the headwind of NWC investment 671 • Capitalallocation focused on NWC, shareholder returns and debt reduction • Net debt 74 million EUR lower in Q3 and will fall further at year
Slide 11: Q3 2021 Results Presentation ACERINOX 2020 RESULTS PRESENTATION
Q3 2021 Results Presentation 11 ACERINOX 2020 RESULTS PRESENTATION
Slide 12: Appendix
Q3 2021 Results Presentation 03 November 2021 12
Slide 13: Q3 2021 Results Presentation
Q3 2021 Results Presentation 13
Slide 14: Value creation for all stakeholders
Value creation for all stakeholders 14 ACERINOX 2020 RESULTS PRESENTATION
Slide 15: Sales in America, US market share and GDP growth
Value creation for all stakeholders • Build a Modern Infrastructure of our sales in America • Achieve a Carbon Pollution-Free Power Sector by 2035 • Make Dramatic Investments in Energy Efficiency in Buildings, including Completing 4 Million Retrofits and Building 1.5 Million New Affordable Homes • P
Slide 16: Market share in the EU and worldwide, GDP growth
Value creation for all stakeholders Market share in the EU Market share worldwide GDP growth 2021e Market share: Year 2020 e estimated I GDP growth: annual percent change Source: IMF, October 2021 16 ACERINOX 2020 RESULTS PRESENTATION
Slide 17: Stainless steel properties
Value creation for all stakeholders Profitable Aesthetic Corrosion resistant Reusable Hygienic 100% recyclable Long lasting Efficient & Versatile (mechanical qualities) 17 ACERINOX 2020 RESULTS PRESENTATION
Slide 18: Stainless Steel: High Performance Alloys demand
Value creation for all stakeholders Stainless Steel: High Performance Alloys Construction Others Aerospace Mechanical Engineering Automotive Motor Vehicles Electrics / Electrical Machinery Electronics Other Transport Chemical Metal Process Oil / Gas Industry products Sources: ISSF; SMR; 1 Calculated
Slide 19: Stainless steel applications and uses
Value creation for all stakeholders High Resistance to Hygienic and Clean Resistance to Rust, ease Corrosion, Withstand High Material, Ideal for the with which it can be Temperatures and Production, Handling and Cleaned, Becoming Stops the spread of bacteria Pressures and High Transport of Food Esse
Slide 20: Nickel alloys and stainless steel applications
Value creation for all stakeholders Present in the Obtaining and Refurbish historic works, Important in the Distribution of turned to this material on construction of buildings Chosen as structural steel to Hydrocarbons and Biofuels. many occasions, and large works. prevent rusting and corrosion Ess
Slide 21: Stainless steel uses in everyday life
Value creation for all stakeholders Minimal corrosion, does not Excellent workability, contaminate the water and corrosion resistance, does not require any extra Needs for longevity, off-site Increasing presence in life formability, weldability for covering. Permits design credibility and potential
Slide 22: Core of our business model
Value creation for all stakeholders Core of our business model Acerinox is committed to the Circular Economy Improving due to digitalization and 360º planning, cost reduction programs and optimizing the commercial network Enhanced by VDM Metals (HPA) and constant review of all the assets of the Grou
Slide 23: Create high performance materials for a sustainable society
Value creation for all stakeholders Safety Sustainability Employer of choice Create high Become a global customer performance materials centric supplier through for a sustainable society innovation in sustainable Stainless Steel and High Performance Integrity Commitment Long-term Alloys solutions fo
Slide 24: Liquidity position and net debt
Value creation for all stakeholders Liquidity Position (€m) Net Debt Liquidity remains best in class, fully covering all maturities Robust balance sheet • Net Financial Debt of €772m Available lines • Weighted Cost of Term Debt of 1.5% • ND / LTM EBITDA of 2.0x LONG TERM MATURITIES: 1,578 MILLION EU
Slide 25: Excellence 360º
Value creation for all stakeholders Production: Quality, melting shop yields and efficiency in production materials Supply chain: Delivery on time Target Actual Excellence 360º • Digitalization and 360º planning • Cost reduction programs • Prioritize quick return investments • Optimize the commercia
Slide 26: Safety, fixed costs reduction and refinancing
Value creation for all stakeholders Safety and Fixed costs reduction Refinancing to anticipate Secured the prevention measures and variabilisation future renewals and supply chain extend maturities Our management Massive liquidity, Operating Strong track record on consistent team took Acerinox 1.8 b
Slide 27: Return to shareholders per share
Value creation for all stakeholders Return to shareholders per share € / share in shareholder remuneration 2015(*) 2016(*) 2017 2018 2019 2020 ( * ) S c r i p d i v i d e n d Year 2020 27 ACERINOX 2020 RESULTS PRESENTATION
Slide 28: Group structure and main shareholders
Value creation for all stakeholders Incorporation of Incorporation of Incorporation of ACERINOX, S.A. COLUMBUS VDM Metals (Spain) STAINLESS (Germany) (South Africa) Acerinox S.A. 76% Acerinox S.A. 100% I.D.C. 24% Main Acerinox Shareholders % Since Corporación Financiera Alba, S.A . 18.96% 2001 Incor
Slide 29: Production plants and processes
Value creation for all stakeholders Kentucky Ponferrada & Igualada Flat product Long product Flat product • Melting Shop • Hot Rolling • Melting Shop • Hot Rolling Shop • Finished Product • Hot Rolling Shop Long product • Cold Rolling Shop • Cold Rolling Shop • Hot Rolling • Finished Product Long pr
Slide 30: Sales by region and plant network
Value creation for all stakeholders 12M 2019 America 12M Asia 2019 Africa Europe Others 12M 2020(1) America Acerinox Plants (6) Acerinox Sales & Services 12M Asia Acerinox Sales Agents 2020 VDM Metal Plants (7) Africa VDM Metals Sales & Services Europe Others VDM Metals Agents Source: 1 Acerinox inc
Slide 31: Acerinox VDM: creating value
Value creation for all stakeholders Acerinox VDM Creating value through Global leader in World’s largest • Enhancement of product mix • Projects and tailor-made solutions stainless steel producer in high • Exceptional R&D capabilities performance alloys • Diversification of geographical earnings • L
Slide 32: Sales, EBITDA and Net Financial Debt 2017-2020
Value creation for all stakeholders Million EUR Sales EBITDA Net Financial Debt 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2019: 38 million EUR for the lay offs in Spain 2020: 398 million EUR of debt related to 2020: 14 million EUR for the expenses of the VDM acquisition purchase of
Slide 33: Cash flow statement
Value creation for all stakeholders Million EUR EBITDA 85 80 87 131 384 364 Changes in working capital -97 63 74 183 223 96 Changes in operating working capital -65 50 65 186 236 44 Inventories 9 95 92 27 223 2 Trade debtors -47 93 -1 38 83 41 Trade creditors -27 -139 -26 122 -70 0 Other adjustments
Slide 34: Q3 2021 Results Presentation
Q3 2021 Results Presentation 34