Acerinox Sa · BME:ACX
Acerinox Sa — Q1 2022 Earnings Presentation
42 slides from Acerinox Sa's earnings presentation, 2022
Slide 1: Q1 2022 Results presentation
1 Q1 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
Q1 2022 Results Presentation 3 Strong Contributor to the Circular Economy Main KPIs performance during the first three months of 2022: Circular economy Environment Social WASTE REDUCTION GHG EMISSIONS SAFETY PERFORMANCE TARGET 90% valorisation of waste sent TARGET 20% reduction in GHG emissions TARG
Slide 4: Q1 2022: A Record Net Profit
Q1 2022 Results Presentation 4 Q1 2022: A Record Net Profit EBITDA of 422 Net debt under million EUR the control at 628 % Q1 22 / % Q1 22 / second highest Million EUR Q1 2022 Q1 2021 Q4 2021 Q1 21 Q4 21 million EUR ever and the best Net Sales 2,287 1,441 1,937 59% 18% since Q2 2006 Adjusted EBITDA 4
Slide 5: An Excellent But Very Challenging Quarter
Q1 2022 Results Presentation 5 An Excellent But Very Challenging Quarter Q1 Market Highlights Q1 Acerinox Highlights Stainless steel strong Crisis in the Q1 Production: demand continued Nickel market • +7% melting production QoQ • 0% melting production YoY Ongoing price increases Transportation stri
Slide 6: Stainless Steel: An Outstanding Start to 2022
Q1 2022 Results Presentation 6 Stainless Steel: An Outstanding Start to 2022 % Q1 22 / % Q1 22 / Million EUR Q1 2022 Q1 2021 Q4 2021 Q1 21 Q4 21 Melting production (thousand Mt) 646 650 608 -1% 6% Exceptionally strong EBITDA of 398 million EUR Net sales 2,006 1,273 1,709 58% 17% Adjusted EBITDA 398
Slide 7: High Performance Alloys: The Recovery Continues
Q1 2022 Results Presentation 7 High Performance Alloys: The Recovery Continues % Q1 22 / % Q1 22 / Million EUR Q1 2022 Q1 2021 Q4 2021 Q1 21 Q4 21 EBITDA of 24 million EUR, the Melting production (thousand Mt) 22 18 19 23% 15% strongest since the Net sales 281 167 227 68% 24% acquisition Adjusted EB
Slide 8: A Strong Quarter of FCF Despite Investment in NWC
8 A Strong Quarter of FCF Despite Investment in NWC Million EUR Q1 We continue to make capital allocation decisions focused on what is best all round for the business and stakeholders 422 Operating CF 74 million EUR in Q1 2022 Capital allocation: • Q1 saw a 345 million EUR investment in NWC • Q1 als
Slide 9: Conclusions & Outlook
9 Conclusions & Outlook 01 02 03 Q1 saw a record start to FCF has been impacted Uncertainties remain in the year, but against very by a 345 million EUR place: invasion in Ukraine, challenging market investment in NWC energy prices and inflation in conditions all of our raw materials and consumables
Slide 10: Q1 2022 Results presentation
10 Q1 2022 Results presentation
Slide 11: Acerinox investment case
11 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 12: Contents
12 Contents 1. Investment Opportunity 2. The Sustainable Global Leader 3. Growth and Strategies 4. More about us
Slide 13: Investment Case
13 1. Investment Case The opportunity
Slide 14: Acerinox at a Glance
14 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 15: Our ESG Model is a Commitment to the Future
15 Our ESG Model is a Commitment to the Future CIRCULAR 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
Slide 16: Investment Case. The Opportunity
16 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 17: The Sustainable Global Leader
17 17 2. The Sustainable Global Leader
Slide 18: One of the World's Largest Stainless Steel and HPA Groups
18 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 19: We Produce and Sell the Most Efficient Materials
19 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 20: Our Products are Essential, Sustainable, Versatile and Efficient
20 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 21: ESG: Integral to Acerinox's DNA
21 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 22: ESG: Integral to Acerinox's DNA
22 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 23: ESG: Integral to Acerinox's DNA
23 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 24: We Deliver Solid Revenues and Earnings Growth Consistently
24 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 25: With a Strong Cash Generation and Efficient Capital Allocation
25 …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 26: 2021: a new record in a very challenging market
26 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 27: With a Robust Balance Sheet
27 With a Robust Balance Sheet Liquidity remains best in class, covering fully all maturities Net Debt 2,004 Robust balance sheet AVAILABLE LINES 72 Net Financial of which 97% is Debt of free of covenants on 9 €578m results LONG TERM MATURITIES: EUR 1,554 MILLION Weighted Cost Immediate liquidity CA
Slide 28: Q1 2022 A Record Net Profit
28 … and We Continue to Build on Our Success: Q1 2022 A Record Net Profit EBITDA of 422 Net debt under million EUR the control at 628 % Q1 22 / % Q1 22 / second highest Million EUR Q1 2022 Q1 2021 Q4 2021 Q1 21 Q4 21 million EUR ever and the best Net Sales 2,287 1,441 1,937 59% 18% since Q2 2006 Adj
Slide 29: Growth Opportunities and Strategy
29 3. Growth Opportunities and Strategy
Slide 30: A Solid Long-Term Strategy that Remains Intact
30 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 31: An Attractive & Resilient Investment Opportunity
31 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 32: Corporate Strategy: Our 2022-2025 Targets
32 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 33: Acerinox: A Forward-Thinking Investment Opportunity
33 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 34: Acerinox: A Forward-Thinking Investment Opportunity
34 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 35: Investor Relations Team
35 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: inversores@acerinox.com
Slide 36: More about us
36 4. More about us
Slide 37: Production Sites
37 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 38: ESG, Integral to Acerinox's DNA
38 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 39: Acerinox is Present in Every Aspect of Life
39 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 40: Stainless Steel and High Performance Alloys: Sustainable products
40 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 41: Sophisticated Products Require Best In Class Materials
41 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 42: Acerinox investment case
42 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: inversores@acerinox.com