Acerinox Sa · BME:ACX
Acerinox Sa — Investor Day (November 2010)
30 slides from Acerinox Sa's investor day presentation, Nov 23, 2010
Slide 1: Acerinox Group: Spain Investors Day
ACERINOX GROUP: NOVEMBER 2010 Miguel Ferrandis CFO of Acerinox Group Spain Investors Day Hotel Ritz, Madrid 22-23th November 2010
Slide 2: World Production of Stainless Steel
ACERINOX GROUP: Spain Investors Day WORLD PRODUCTION OF STAINLESS STEEL Thousand Mt. 30,000 28,000 26,000 24,000 22,000 20,000 18,000 Compound annual growth rate 16,000 Years 1950-2009: +5.5% 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 50 60 70 80 90 00 09 Source: VALE INCO e ISSF
Slide 3: Stainless Steel Real Demand by Sectors
ACERINOX GROUP: Spain Investors Day STAINLESS STEEL REAL DEMAND BY SECTORS Year 2008 Appliances and consumer electronics Household equipment 8% 15% Catering equipment 11% Food industry Other application 9% 3% Other transportation 3% Industrial machinery & Process Automotive 11% 9% Energy 7% Building
Slide 4: Growth of Stainless Steel and Alternative Metallic Materials
ACERINOX GROUP: Spain Investors Day GROWTH OF STAINLESS STEEL AND ALTERNATIVE METALIC MATERIALS (Years 1995-2009) Compound annual growth in % per year Lead 3.06 Copper 3.52 Zinc 2.49 Aluminium 3.06 Steel without 4.69 stainless steel Stainless steel 5.03 Average 3.36 Source: ISSF
Slide 5: Official Nickel Price in the L.M.E. (1991-October 2010)
ACERINOX GROUP: Spain Investors Day OFFICIAL NICKEL PRICE IN THE L.M.E. (1991-October 2010) Monthly average values (USD/Mt. Ni.) 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 Average 1990–2005: 8,062 USD/Mt. Ni 15,000 10,000 5,000 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Slide 6: Stainless Steel Cold Rolled Sheet Prices AISI 304 2.0 mm
ACERINOX GROUP: Spain Investors Day STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (2001 – October 2010) USD/Mt, final price, alloy surcharge included 7,000 6,500 6,000 5,500 5,000 USA 4,500 4,000 GERMANY 3,500 ASIA (since year 2008; 3,000 average of China,Taiwan and South Korea) 2,500 2,
Slide 7: Stainless Steel Cold Rolled Sheet Prices: German Market
ACERINOX GROUP: Spain Investors Day STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (2001 – October 2010) €/Mt, German market 5,000 SOURCE: MBR 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 01 02 03 04 05 06 07 08 09 10 Base Price Alloy Surcharge
Slide 8: Stainless Steel Cold Rolled Sheet Prices: North American Market
ACERINOX GROUP: Spain Investors Day STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (2001 – October 2010) USD/Mt, North American market 7,000 6,500 SOURCE: MBR 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 01 02 03 04 05 06 07 08 09 10 Base Price Alloy Surcharge
Slide 9: Results After Taxes and Minorities. Acerinox Consolidated Group
ACERINOX GROUP: Spain Investors Day RESULTS AFTER TAXES AND MINORITIES. ACERINOX CONSOLIDATED GROUP Million € 250 210 201 200 150 88 100 67 71 50 13 19 16 6 10 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -29 -50 -100 -93 -112 -150 -136 -162 -200 2007 2008 2009 2010
Slide 10: Condensed Profit & Loss Account. Acerinox Consolidated Group
ACERINOX GROUP: Spain Investors Day CONDENSED PROFIT & LOSS ACOUNT. ACERINOX CONSOLIDATED GROUP January-September Million € 1º Q. 10 2º Q. 10 3º T.10 2010 2009 Variation Net sales 999,39 1.172,80 1.176,40 3.348,59 2.501,45 33,9% Gross margin 262,56 382,62 290,74 935,92 393,88 137,6% % over sales 26,
Slide 11: Traditional Financial Strengths
ACERINOX GROUP: Spain Investors Day TRADITIONAL FINANCIAL STRENGTHS Strong balance sheet Prudent leverage Well balanced debt Diversified bank pool
Slide 12: Condensed Balance Sheet of Acerinox Consolidated Group
ACERINOX GROUP: Spain Investors Day CONDENSED BALANCE SHEET OF ACERINOX CONSOLIDATED GROUP September 2010 ASSETS LIABILITIES Million € Sep-10 2009 Variation Million € Sep-10 2009 variation Non-current assets 2,256.21 2,002.06 12.7% Equity 1,969.43 1,752.52 12.4% Current assets 2,142.09 1,615.72 32.6
Slide 13: Debt Structure
ACERINOX GROUP: Spain Investors Day DEBT STRUCTURE September 2010 Credit lines Net debt Total existing lines: Net debt:1,275.94 million € 1,992 mill. € 30% Available 51% credit facilities 49% Long term 70% debt Short term Used credit debt (*) facilities (*) Treasury has been deducted of the short te
Slide 14: Financial Achievements in a Worldwide Recession
ACERINOX GROUP: Spain Investors Day FINANCIAL ACHIEVEMENTS IN A WORLDWIDE RECESSION Ongoing capex program Keeping retribution to shareholders Flexibility to manage a volatile working capital
Slide 15: Investments in the Consolidated Group
ACERINOX GROUP: Spain Investors Day INVESTMENTS IN THE CONSOLIDATED GROUP Thousand € 2009 2008 2007 2006 2005 - ACERINOX, S.A. 40,859 92,669 52,273 37,530 45,787 - NAS 45,996 164,845 99,428 99,365 125,078 - COLUMBUS 29,784 54,808 26,065 18,501 28,195 - BAHRU STAINLESS 101,977 --- --- --- --- - ROLDA
Slide 16: Return to Shareholders
ACERINOX GROUP: Spain Investors Day RETURN TO SHAREHOLDERS € / share 0.55 0.50 0.48 0.45 0.03 0.45 0.45 0.40 0.10 0.10 0.10 0.34 0.34 0.35 Attendance bonus 0.30 0.08 AGM 0.08 Issue Premium 0.25 Refund 0.20 0.35 0.35 0.35 Dividend 0.15 0.26 0.26 0.10 0.05 0.00 05 06 07 08 09
Slide 17: Evolution of the Working Capital
ACERINOX GROUP: Spain Investors Day EVOLUTION OF THE WORKING CAPITAL Million € 2.250 2.000 1.750 1.500 1.250 Inventories Trade debtors 1.000 Trade creditors 750 500 250 0 00 01 02 03 04 05 06 07 08 09 Sep 10
Slide 18: Strategic Plan 2008-2020
ACERINOX GROUP: Spain Investors Day STRATEGIC PLAN 2008 - 2020 Well Defined Production Strategy Excellence Plan Global Expansion
Slide 19: Strategic Plan 2008-2020: Capacity
ACERINOX GROUP: Spain Investors Day STRATEGIC PLAN 2008 - 2020 Bahru Stainless Capacity Melting Hot rolling Cold rolling 1,100,000 mt/year 900,000 mt/year 670,000 mt/year 1,400,000 mt/year 1,200,000 mt/year 850,000 mt/year 1,000,000 mt/year 1,000,000 mt/year 545,000 mt/year 1,000,000 mt/year 1,000,0
Slide 20: Bahru Stainless: Strategic Location
ACERINOX GROUP: Spain Investors Day STRATEGIC PLAN 2008 - 2020 Bahru Stainless: Strategic Location PACIFIC OCEAN THAILAND PHILIPPINES MALACCA STRAIT MALAYSIA VIETNAM MALAYSIA INDIAN OCEAN INDONESIA SINGAPORE JOHOR PORT TANJUNG PELEPAS PORT SINGAPORE PORT
Slide 21: ASEAN Zone Stainless Steel Market
ACERINOX GROUP: Spain Investors Day ASEAN ZONE STAINLESS STEEL MARKET Data referred to year 2009 Population Total flat consumption SS production Consumption per ASEAN Countries (million) of SS (Mt/year) (Mt/year) capita (kg/year) Thailand 66 250.000 200.000 3,8 Malaysia 26 220.000 --- 8,4 Singapore
Slide 22: Bahru Stainless: New Mill in Malaysia
ACERINOX GROUP: Spain Investors Day STRATEGIC PLAN 2008 - 2020 Bahru Stainless • Development of a new integrated 1 million mt/year stainless steel mill in Malaysia in phases. • Current investment for phases 1 & 2: EQUIPMENTS PRODUCTION (mt/year) (000,000 US$) PHASE I ZM-1 + AP-1 + Finishing lines 37
Slide 23: Bahru Stainless: Main Advantages
ACERINOX GROUP: Spain Investors Day STRATEGIC PLAN 2008 - 2020 Bahru Stainless: Main advantages Strategic Location at the seaside Competitive costs Strong and growing local markets in Malaysia and Singapore Developed commercial presence in the region of Acerinox Malaysia: Stable and developed countr
Slide 24: Bahru Stainless. General Plant Lay-out: Phase I
ACERINOX GROUP: Spain Investors Day BAHRU STAINLESS. GENERAL PLANT LAY-OUT: PHASE I
Slide 25: Bahru Stainless. General Plant Lay-out: Phase II
ACERINOX GROUP: Spain Investors Day BAHRU STAINLESS. GENERAL PLANT LAY-OUT: PHASE II
Slide 26: Bahru Stainless. General Plant Lay-out: Phase III
ACERINOX GROUP: Spain Investors Day BAHRU STAINLESS. GENERAL PLANT LAY-OUT: PHASE III
Slide 27: Bahru Stainless. General Plant Lay-out: Phase IV
ACERINOX GROUP: Spain Investors Day BAHRU STAINLESS. GENERAL PLANT LAY-OUT: PHASE IV
Slide 28: ASEAN Market and Forecasted Development
ACERINOX GROUP: Spain Investors Day ASEAN MARKET AND FORECASTED DEVELOPMENT ‘000 Mt 2,000 1,750 1,500 Estimated CAGR : +6% 1,250 1,000 750 500 250 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Consumption Production
Slide 29: Production Capacity of the Group and World Consumption per Areas
ACERINOX GROUP: Spain Investors Day PRODUCTION CAPACITY OF THE GROUP AND WORLD CONSUMPTION PER AREAS Million Mt. Melting 1.4 Melting 1.1 Hot Rolling 1.2 Hot Rolling 0.9 Cold Rolling 0.8 Cold Rolling 0.7 Long Prod. 0.2 Long Prod. 0.2 Melting 1.0 Melting 1.0 Hot Rolling 1.0 Hot Rolling 1.0 Cold Rollin
Slide 30: Why Global?
ACERINOX GROUP: Spain Investors Day WHY GLOBAL? Risk mitigation: Commercial Financial Strategic Operational Proximity to markets Global supplier for global customers Excellence through cultural and technical exchange Unique benchmarking opportunity