Slide 1: Calvert site visit
Calvert site visit Tamara Weinert – President, BA Americas Carmen Pino – SVP, Commercial Joachim Stolz – SVP, Operations US site tour for Finnish institutional investors, arranged by Nordea September 20, 2022
Slide 2: Outlining milestones to reach full potential
Outlining milestones to reach full potential Tamara Weinert – President, BA Americas US site tour for Finnish institutional investors, arranged by Nordea September 20, 2022
Slide 3: Calvert is a modern integrated stainless site with unique customer reach
Calvert is a modern integrated stainless site with a unique customer reach and a competitive cost structure Trusted supplier Secured and Efficient, reliable High performing in one of the sustainable and cost competitive and flexible strongest markets supply chain production work force in the world i
Slide 4: Turnaround projects have set up BA Americas
2017 2018 2019 2020 2021 2022 Turnaround June YTD projects have set 297 up BA Americas EBITDA (€ million) 226 to take advantage 21 -5 -27 55 of the strong Deliveries (kt) 742 762 601 588 742 market 362 Headcount 2,162 2,061 2,010 1,880 1,895 1,894 4 | September 20, 2022
Slide 5: Phase 1 successfully completed – we are ready for Phase 2
Phase 1 successfully completed – we are ready for Phase 2 Sustainability Growth from Customer-focused • Target significant CO2 productivity steering reduction • Increase cold roll volume by • Improved supply chain • Optimized raw material 80kt with 6 small planning practices and tools mix investment
Slide 6: ESG initiatives in action
ESG initiatives in action Environmental Social Governance Increased recycled content Substantial improvement in safety Improved insight into supply chain performance and supplier governance Internally sourced FeCr Successful diversity, equity and Stricter controls around supplier inclusion (DEI) ini
Slide 7: Phase 2 deliverables: Target 80kt growth and $200M EBITDA level
Phase 2 deliverables: Target 80kt growth and $200M EBITDA level Phase 2 summary Phase 2 target • Objective to strengthen • 80kt volume growth sustainability position • Supporting $200 million and unlock volume EBITDA in normalized growth through market conditions productivity improvements 7 | Septem
Slide 8: BA Americas is prepared to grow in the undersupplied USMCA market
BA Americas is prepared to grow in the undersupplied USMCA market Carmen Pino – SVP, Commercial US site tour for Finnish institutional investors, arranged by Nordea September 20, 2022
Slide 9: USMCA stainless steel market remains coveted for its growth and protected trade
USMCA stainless steel market remains coveted for its growth and protected trade Stainless steel flat consumption in kg per capita – 2021/2022 outlook • US market consists of large private and publicly traded distributors • Highly competitive with high USA Europe China 2021: 6.5 2021: 6.6 2021: 10.0
Slide 10: BA Americas is well positioned to serve various customers in the USMCA market
BA Americas is well positioned to serve various customers in the USMCA market Diverse Distribution BA Americas’ sales split portfolio serving focused per customer segment (kt) multiple market business sectors with strong customer Distributor relationships Appliance Other Poised to Significantly Auto
Slide 11: Market outlook continues to be positive, supporting Phase 2 strategy implementation
Market outlook continues to be positive, supporting Phase 2 strategy implementation USMCA cold rolled stainless steel demand (Mt) Growth drivers • Recent US +3% p.a. infrastructure bill 2.1 2.1 supports growth 2.0 2.1 1.9 1.9 • Localization of supply 1.5 chains • Robust consumer demand • Demand for
Slide 12: Our Calvert operations are prepared to serve a growing market
Our Calvert operations are prepared to serve a growing market Joachim Stolz – SVP, Operations US site tour for Finnish institutional investors, arranged by Nordea September 20, 2022
Slide 13: Calvert integrated mill
Capacity Employees Size of the area Calvert integrated mill Melt shop 900kt 980 own employees 1,100 acres of which Hot rolling 900kt* 368 contractors 2,000,000 sft are Cold rolling 550kt covered with buildings River Passive Annealing Cold Slab Hot Strip Hot Annealing Melt Scrap Cold Annealing Termin
Slide 14: Calvert's streamlined production flow
Calvert’s streamlined production flow AOD Converter Continuous Slab Caster Hot Rolling Mill* Electric Arc Furnace Hot Band Slitter CRM 74” CRM 64” CRM 54” Hot Annealing And Pickling Line Finishing/Polishing Cold Annealing and Pickling In-line SPM CPL CMPL STLs CTLs Line 14 | September 20, 2022 *hot
Slide 15: Safety is our priority in everything we do
Safety is our priority in everything we do BA Americas’ total recordable injury frequency rate (TRIFR) Number of total recordable injuries per million working hours Significant improvement in 4.0 3.2 safety performance 2.6 achieved during the 1.5 1.6 1.8 past few years 1.3 2016 2017 2018 2019 2020 2
Slide 16: Deep-dive: Targeted productivity improvements yielding 80kt volume uplift
Deep-dive: Targeted productivity improvements yielding 80kt volume uplift Phase 2 productivity improvements 2022 2023 2024 2025 30kt 50kt 80kt Cumulative volume increase Calvert investments De-bottleneck Calvert with productivity investments Increase Mexinox cold rolling capacity Mexinox investments
Slide 17: Phase 2: Capacity increases by 80kt
Phase 2: Capacity increases by 80kt Melt shop AM/NS* Hot strip mill Calvert & Mexinox cold rolling works CR prime CMP prime Phase 1 Hot Annealing And Cold Annealing And Pickling Line Pickling Line Electric Arc AOD Continuous Hot Rolling Mill Furnace Converter Casting Machine 550kt 130kt 900kt 900kt
Slide 18: Improve throughput by 80kt through targeted productivity investments and Lean Six Sigma
Improve throughput by 80kt through targeted productivity investments and Lean Six Sigma Ambitious but Strong starting point Clear strategic priorities realistic target • Systematic work • Improve throughput by de-bottlenecking • 80kt volume growth in past years to through 6 targeted productivity inv
Slide 19: Thank you!
Thank you!