Aperam S.a. · EURONEXT:APAM
Aperam — ESG Presentation (2021)
36 slides from Aperam's sustainability presentation, 2021
Slide 1: Aperam ESG Presentation
APERAM ESG PRESENTATION Best i in Class i in ESG
Slide 2: Disclaimer
IG DISCLAIMER Forward-Looking Statements This document may contain forward-looking information and statements about Aperam SA and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations w
Slide 3: Content
CONTENT
Slide 4: 6% 10% 27% 17% 18% 21% 8% 24% 68%
6% 10% 27% 17% 18% 21% 8% 24% 68% 3 4 5 6
Slide 5: Aperam Approaches ESG Holistically
eperam Responsible Low-GHG Stainless Steel Producer ESG OVERVIEW Aperam Approaches ESG Holistically ENVIRONMENT > Best in class CO; footprint > Clear improvement targets - Waste - Air - Water - Energy > Production is based on recycled materials > FSC® certified forest provides renewable energy > Com
Slide 6: Superior Product in a Sustainable and Responsible Way
Io aperam SUPERIOR PRODUCT RENEWABLE ENERGY RECYCLING PRODUCT & PROCESS Aperam Produces a Superior Product ina Sustainable and Responsible Way M@ Very long useful life Mi Corrosion resistant Wi Abrasion resistant 100% recyclable Acid resistant Bi Aesthetic @ Non toxic Fire proof Mi Mechanically stro
Slide 7: We Are Part of the Solution
eperam e-Mobility solutions Clean air Cryogenic applications Sustainable water supply Solar power Renewable energy The hydrogen economy PRODUCTS operom We Are Part of the Solution Aperam’s solutions enable e-vehicle components such as converters, inverters, onboard-charges, motors, EPS, cooling syst
Slide 8: Workforce in Renewables and Recycling Post ELG Acquisition
: ICs RAW MATERIAL op! rom Ss 9 oq i) ~30% of Aperam’s Workforce will Create Value from Working in Renewables and Recycling Upstream Post the ELG Acquisition* ESG Leadership Cost Benefit & Growth * Subject to regulatory approvals
Slide 9: UN SDGs
UN SDGs operon Aperam supports the United Nations’ Sustainable Development goals, in particular: Gender balance ranks highly on our) a | ) is eee e i Lowering fresh water consumption Health & Safety is Aperam’s primary Management Aperam established specific and improving the quality of discharge are
Slide 10: ESG Status & Targets
aperam A best in class footprint’ IG ESG STATUS & TARGETS gperom CRITERIA 2030 TARGET APERAM 2020 vs 2015 Energy intensity* 7.3Gj/t -11% vs 2015 7.8 GJ/t -5% @) CO, intensity** 0.39 t/t -30% vs 2015 0.47 t/t -14% © Water consumption 5.8m3/t -40% vs 2015 11.6 m3/t +14% © Dust intensity 70g/t -70% vs
Slide 11: ESG summary: products, process, climate, social, governance
Products Non toxic, long lifespan and 100% infinitely recyclable without loss of quality Process We have ambitious ESG targets and a convincing track record Sustainability We are recycling champion and >33% of our energy intake is renewable Climate change We have a best in class CO2 footprint in the
Slide 12: Social
s 2 g fm is) ICs operon Social “Our People are our greatest asset. Their Safety is our priority, their development is the key to our success”. > LTIFR: 1.5 (vs. 1.7 in 2019) - target to become a zero-accident company. > Absenteeism: 2.9 - target at 2 > 2019 Performance review: 99% of Exempts, 67% of
Slide 13: Our Values
LEADERSHIP AGILITY INGENUITY SOCIAL operom Our Values We seek to be bold and courageous in our approach, while remaining relevant to the marketplace, and to promote sustainable solutions We recognize the need to move quickly, adapt to changing market conditions, as well as to be flexible enough to m
Slide 14: Health & Safety
HEALTH & SAFETY Our Prime Objective CEO STATEMENT Mon code de comportement 7 BS eg The safety of our people is non-negotiable and always our top priority. When we protect each other, we build team spirit and promote proximity and performance at the same time Sef a ©. "The people who work for and wit
Slide 15: Very Good LTIFR paired with low Severity
IG HEALTH & SAFETY Very Good LTIFR paired with low Severity eperam operon ROADMAPS UTIFR IS HALF WITH 3 STRATEGIC AXES OF SS INDUSTRY’ > Prevent and control the risk of fatal and severe accidents rel - Detailed improvement plan ‘ post a H&S audit of each site ‘ - Monthly monitoring . 2016 > Identify
Slide 16: Environmental performance vs 2015
eperam vs.2015to ~ On track for -30% by 2030 0.47/t due to maximal usage of own charcoal vs. 2015, leveraging further vs. 2015 due low production volumes in 2020 (21€lectricity, natural gas and LPG per ton of crude steel energy savings and maximum scrap usage > On track towards our 2030 target at -1
Slide 17: Recycling Content & Renewable Share
aperam GHG operon Recycling Content & Renewable Share puts Aperam in a Best-in-Class Position 4 SCRAP USAGE REDUCES CO2 EMISSIONS SUBSTANTIALLY* Co,/t Integrated producers with @ blast furnaces ee or RKF for NPI (Asia) EAF process route (mostly Europe) 3 e ¢ ee See Scap share i 3Xx 4XX Source: Compa
Slide 18: Plan for Realizing a 30% CO2 Reduction
IG GHG operom Aperam has a Transparent & Realistic Plan for Realizing a 30% CO, eperam APERAM CO2 EMISSION BY SCOPE APERAM C02 EMISSION ROADMAP* MEASURES & CAPEX 0.47 t/t al Global steel 2019 Target: 30% CO, reduction in 2030* w _ ro] Electricity > ~50% are based on energy efficiency g | Globat stai
Slide 19: Aperam's CO2 Footprint
eperam IG Aperam's CO, FOOTPRINT aperam Aperam Stainless Europe aligned with the taxonomy criteria applicable to activities contributing to climate change mitigation Raw materials |[ clecirc eo Taroom S Stalnless scrap ty lauren | evers (= scopes) i Ferronickel Consumables: Ferrochrome J Graphite El
Slide 20: Environment
s [a Q q) is} IG ENVIRONMENT operon Aperam has a convincing environmental track record and clear improvement targets. Low volumes impacted 2019 & 2020 C02 emissions (t/t crude steel)? Aperam has a unique production set-up The steel sector is an energy intensive sectors because the standard steel-mak
Slide 21: Water & Dust Emissions
*target 2073 2013 ENVIRONMENT operom Water & clearly improved dust emissions Dust emissions (g/t crude steel) 20.4 2014 2015 20.5 20.6 20.7 20.8 20.9 2020 Water intake (m?/t) 2016 2017 2018 2019 2020 2030* 5.9 2030* Aperam has a unique production set-up Dust: Almost 90% of Aperam’s total dust emissi
Slide 22: Recycling: Stainless Steel Is Endlessly Re-usable
ICs ENVIRONMENT operon Recycling: Stainless steel is endlessly re-usable without loss of quality = eperam Aperam actively works towards becoming a recycling champion > Steel is an input into our process and our end product > Product recyclability is a unique property, that Aperam is fully committed
Slide 23: Product lifetime and recycling rates by sector
Automotive Construction Other Transport 14 years 50 years 30 years 90% 85% 90% 12% 18% 3% Machinery Appliances, Metal Goods Electronics 25 years 15 years 15 years 90% 80% 80% 29% 8% 29% Revert scrap ~11%, <1 month 23
Slide 24: Stakeholder engagement
IG s © Q a 9 “We lead by example and maintain constant engagement with all our Stakeholders in quest for mutually beneficial solutions” > Best practice in Corporate Governance reflected in our: Board and Committee composition Risk management approach Extensive Compliance plan > Strong Customer & Inn
Slide 25: ResponsibleSteel certification
2 Responsible Steel leases RESPONSIBLE STEEL operon External Certification and Recognition of Corporate Responsibility is part of our strategic plan Nature * Independent, non profit organization + Mission is to enhance the responsible sourcing, production, use & recycling of steel * Independent assu
Slide 26: Community foundation indicators
Indicator Unit 2020 2019 2018 Beneficiaries # > 40,000 >65,000 >64,000 Cultural Events # 94 89 102 Online events - views # >265,000 n/a n/a Social impact events BRLm 1.9 2.3 2.9 Other foundation expenses BRLm 0.8 0.9 n/a Total investment by foundation² BRLm 2.7 3.2 2.9
Slide 27: Governance & Stakeholders: Ethics and Compliance
IG GOVERNANCE & STAKEHOLDERS operon Ethics and Compliance vy Very strong ethical guidelines based on Aperam values that go much ya NB Bcran beyond regulatory required compliance Aperam policies inspired by [i a international references: cain &safety vy Zero tolerance for non-compliant behaviour - In
Slide 28: Board of Directors
IG GOVERNANCE & STAKEHOLDERS operon Board of Directors eperam r Highest Corporate Governance Standards with a majority of BOARD STRUCTURE independent directors > Responsible for strategic direction and oversight of the Our board committees are composed of 100% independent business, as well as for ap
Slide 29: Our Leadership Team
eperam vvvvy IG GOVERNANCE operon Our Leadership Team: Diverse & Experienced r KEY FACTS & COMPENSATION Entrusted with day-to-day management of the Company Appointed by the Board of Directors — a Experience and industry know how ieee Average age: 49 / 6 nationalities aa ky ry CEO: responsible for Ap
Slide 30: Recent Recognition
RECENT RECOGNITION operon Our Commitment to Sustainability is Recognised by Investors, NGOs, and Certification Authorities MSClI Reconfirmed as “AA” (Leadership level) by MSCI DRIVING SUSTAINABLE ECONOMIES. Rated "B” (Management level) by CDP INVESTOR PERSPECTIVE Listed in Excellence registers ISS>
Slide 31: Appendix
Slide 32: Business Overview: Group Segments
eperam STAINLESS & ELECTRICAL STEEL 2.5mt production capacity 1.6mt of gross shipments 77% of group adj EBITDA Amongst the largest global producers of stainless steel > Europe: > 2 Electric Arc Furnaces use scrap as major input material > Stainless steel flat product output > South America: > 2 blas
Slide 33: Main Production Sites
eperam Io BUSINESS OVERVIEW gperom Main Production Sites Chatelet, Belgium Genk, Belgium Location & facts Location & facts Melt shop Melt shop Hot rolling mill Cold-rolling mill Finishing Capacity Capacity Slabs 1,000 kt Slabs 1,000 kt 2 m wide capacity HSM 2,800kt 316 and duplex grades Cold-rolling
Slide 34: Value Chain & Segments
eperam Hot rolling Chatelet 1.0Mt Chatelet 2.8Mt Timoteo Timoteo 0.9Mt 0.88Mt Chatelet ——— Stainless & Electrical Steel Europe BUSINESS OVERVIEW Value chain & Segments Cold rolling / Finishing Isbergues 0.35Mt Stainless flat Gueugnon 0.4Mt Electrical 0.18Mt Electrical flat Stainless Stainless flat 0
Slide 35: Asia & Africa Europe
Asia & Africa Europe Americas
Slide 36: Self-help has transformed the group
IG BUSINESS OVERVIEW aperam Self-help has transformed the group eperam SHIPMENT BY SEGMENT (KT) ADJ. EBITDA BY SEGMENT (EURm) — 917 = 936-1972 559 cng me S85 451455 mm S2S mm 6S mens mmm SRE mmm S86 —— Group Net —— Group Ad Shpments EBITDA 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014