Aperam S.a. · EURONEXT:APAM
Aperam — Investor Day (November 2012)
24 slides from Aperam's investor day presentation, Nov 21, 2012
Slide 1: Investor Day – Gueugnon
Investor Day – Gueugnon November 21, 2012 Philippe Darmayan – Chief Executive Officer
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This document may contain forward-looking information and statements about Aperam and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with re
Slide 3: The structural challenge of the industry
The structural challenge of the industry
Slide 4: For years, demand growth has justified capacity expansion and volume strategy
The structural challenge of the industry For years, demand growth has justified capacity expansion and volume strategy Stainless steel slab equivalent global demand (in million tonnes) Stainless steel slab capacity expansion (in million tonnes) 35 30 +3% p.a Crisis 12 25 +7% p.a 10 20 8 15 6 10 4 5
Slide 5: Since the crisis, the industry is suffering from overcapacity
The structural challenge of the industry Since the crisis, the industry is suffering from overcapacity Stainless steel slab equivalent global utilization rates (% of capacity) Consequences of overinvestment & overcapacity 100% 95% Competition over volumes 90% instead of a value-oriented 85% strategy
Slide 6: The industry is starting to transform itself
The industry is starting to transform itself
Slide 7: Capacity expansion is slowing down
The industry is starting to transform itself Capacity expansion is slowing down Stainless steel global capacity (Slabs in Mt) Stainless steel slab equivalent global utilization rates (% of capacity) 45 CAGR 40 2011-2017 90% 35 85% 3% 80% 30 25 75% 20 70% 5% 15 65% 10 60% 0% 55% 5 0 50% 2011 2012E 20
Slide 8: Stainless steel specialization, consolidation and restructuring have started
The industry is starting to transform itself Stainless steel specialization, consolidation and restructuring have started Flat product stainless steel producers ranking by slab capacity (mt) Consolidation, spin-off and corporate restructuring announced in 2012 4 November 7th - the merger of Outokump
Slide 9: Constrained by financing, industry is forced to distance itself from previous volume strategy
The industry is starting to transform itself Constrained by financing, industry is forced to distance itself from previous volume strategy New financing constraints for 2013 Average European producer WCR level average in % quarterly sales (backwards) “The Basel III and Solvency II proposals aim to e
Slide 10: Aperam's fundamentals
aperam Aperam’s fundamentals
Slide 11: A leading position in the stainless steel industry
Aperam’s fundamentals A leading position in the stainless steel industry Aperam rankings Aperam sales breakdown in 2011 (by destination) USA Number 1 in South America Asia & Africa 5% 8% Number 2 in Europe Brazil & Latin America 25% Europe Number 6 in the World 62% CAPEXin Well-positioned budget of
Slide 12: A unique position in Brazil
Aperam’s fundamentals A unique position in Brazil Apparent consumption in South America of stainless steel flat Stainless steel consumption per capita pre-crisis (kg/year) product (‘000t) 800 6 +3% 700 5 600 4 500 400 3 300 2 200 1 100 0 0 Other South India Brazil China US America 02 06 10 14 00 04
Slide 13: High quality and cost effective European operations
Aperam’s fundamentals High quality and cost effective European operations European steelmaking restructuring realised in the mid-2000’s Black coil (HRC) European cost curve (base 100) Closure Greenfield/Brownfield Genk brownfield Isbergues Genk Châtelet Greenfield L’Ardoise Competitor 1 Chatelet Com
Slide 14: A global distribution network
Aperam’s fundamentals A global distribution network Sales, distribution and steel service centers network, including precision & tubes businesses Sales subsidiaries and representative offices Sales agencies Steel Service Centers A key competitive advantage to maintaining market share and capturing g
Slide 15: A leading position in nickel alloys
Aperam’s fundamentals A leading position in nickel alloys Global nickel alloys producers (kt)* Aperam Alloys & Specialties geographical footprint Rescal Amilly Imhua Wire drawing The magnetic parts company 40 35 nn Transformation n workshop 30 25 n n 20 Imphy 15 ICS (JV) 10 5 Meltshop, wire mill, co
Slide 16: Aperam's value strategy
aperam Aperam’s value strategy
Slide 17: Health & Safety remains the first priority
Aperam’s value strategy Health & Safety remains the first priority Aperam frequency rate* Aperam and industry frequency rate* 4 8 7 3 6 5 2 4 3 1 2 1 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 YTD2012 ISSF Aperam Profit improvement in Q1Need due to to progress market and internal fur
Slide 18: Achieving Leadership Journey
Aperam’s value strategy Achieving Leadership Journey® Overall estimated cost curve for 304 black coil Leadership Journey® cumulated gains and 2013 target (USD million) (delivered in EU) 90 Genk 350 Chatelet 88 86 84 82 80 78 76 74 72 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Leadership 2011 2011 2011 2011 2012 2012 2
Slide 19: Growing Alloys & Specialties
Aperam’s value strategy Growing Alloys & Specialties Key specific market and customers of Aperam in Alloys EBITDA margin Oil & Gas – LNG Tankers Automotive - CVT EBITDA margins higher than 12% before the crisis 10% 8% 6% Welding - Overlay Aerospace - Mould 4% 2% 0% 2007 2008 2009 2010 2011 2012 Prof
Slide 20: Adding value with Services & Solutions
Aperam’s value strategy Adding value with Services & Solutions From coils… Steel Services Centers …to customers Hot or cold coils Polishing Cutting Packaging Logistics Brushing Eucalyptus plantation From coils… Tube making unit …to customers Forming Welding Expansion Hot or cold coils Cutting Packag
Slide 21: Fully leveraging Aperam's unique product portfolio
Aperam’s value strategy Fully leveraging Aperam’s unique product portfolio Stainless steel product range (not including nickel alloys, electrical steels & specialties) FERRITIC DUPLEX “LOW NICKEL” AUSTENITIC Corrosion 400 series 200 series 300 series resistance 2507 6Mo 2205+ 904 2205 317LNM Capital
Slide 22: Enhancing marketing strategy and promoting high margin products
Aperam’s value strategy Enhancing marketing strategy and promoting high margin products… Market segments Aperam portfolio breakdown in Europe Niches 4% Ferritics Specialties Specialties 26% Mass Potential Specialties commodities 42% Niches Standard Ferritics Ferritics Mass specialities Standard comm
Slide 23: … and catch new opportunities
Aperam’s value strategy … and catch new opportunities Fuel cells stacks Brazed heat exchangers New application for stainless New application for Aperam Selective catalytic reduction system New application for stainless Evaporators in desalination New market for Aperam PV Solar systems New applicatio
Slide 24: Q&A
aperam O&A