Acerinox Sa · BME:ACX
Acerinox Sa — Q1 2024 Earnings Presentation
31 slides from Acerinox Sa's earnings presentation, Apr 25, 2024
Slide 1: Results First Quarter 2024
Results First Quarter 2024 Translation of the original in Spanish. In case of any discrepancy, the Spanish version prevails. Results First quarter 20
Slide 2: Presentation of First Quarter 2024 results (conference call)
Results First Quarter 2024 Presentation of First Quarter 2024 results (conference call) Acerinox will present its First Quarter 2024 results today, April 25, at 10:00 a.m. (CEST), led by the Chief Financial Officer, Miguel Ferrandis, who will be accompanied by the Investor Relations team. To join th
Slide 3: First quarter 2024 highlights and outlook
Results First Quarter 2024 First quarter 2024 The Group’s TIR accident rate decreased Operating cash flow was EUR 188 million, by 3% compared to the end of 2023. with a reduction in working capital of EUR 63 million. Melting shop production, at 461,001 tons, decreased by 5% compared to the A
Slide 4: Key economic and financial figures
Results First Quarter 2024 Key economic and financial figures First quarter Consolidated Group Changes 2024 2023 2024/2023 Melting shop production (thousands of tons) 461 534 -14% Net sales (million EUR) 1,481 1,782 -17% EBITDA (million EUR) 111 226 -51% % of sales 7% 13% EBIT (million EUR) 71 182 -
Slide 5: Consolidated Group results
Results First Quarter 2024 Consolidated Group results Data for the first quarter show an improvement over the fourth quarter of 2023, despite the strike at Acerinox Europa. During the first quarter of 2024, Acerinox Europa incurred an EBTIDA loss of EUR 31 million, resulting from the strike and the
Slide 6: Cash generation
Results First Quarter 2024 Cash generation The decrease in operating working capital contributed to a Group operating cash flow of EUR 188 million. Working capital decreased by EUR 63 million as a result of the significant inventory reduction of EUR 89 million, mainly in the high performance alloys
Slide 7: Balance sheet
Results First Quarter 2024 Balance sheet ASSETS LIABILITIES Million EUR Mar 24 2023 Mar 23 Change Million EUR Mar 24 2023 Mar 23 Change Non- current 1,802 1,777 1,902 1% Equity 2,557 2,463 2,604 4% assets Non- Current 4,355 4,322 4,660 1% current 1,623 1,733 1,850 -6% assets liabilities Bank Invento
Slide 8: Stainless Steel Division: stainless steel market
Results First Quarter 2024 Stainless Steel Division Stainless steel market United States Apparent consumption of flat products Inventories at distributors remain low increased by 8% through February, compared to the average of recent years. according to our estimates. Section 232 remains in force an
Slide 9: Stainless Steel Division production and results
Results First Quarter 2024 Stainless Steel Division production The Group’s steel production in both melting shop and cold-rolling decreased compared to the previous quarter and the same period last year, mainly as a consequence of the production shutdown at the Acerinox Europa plant due to the strik
Slide 10: Stainless Steel Division cash flow
Results First Quarter 2024 Jan – Mar Jan – Dec Jan – Mar Million EUR 2024 2023 2023 EBITDA 80 533 197 Changes in working capital 11 206 -10 Corporate income tax -2 -230 -52 Finance costs 3 17 3 Other adjustments 20 -50 -24 OPERATING CASH FLOW 112 475 113 9
Slide 11: High-Performance-Alloys Division
Results First Quarter 2024 High-Performance-Alloys Division High-performance-alloys market The high-performance-alloys market maintained its strength in the first quarter, especially in the oil and gas and aerospace sectors. Demand in the automotive sector recovered in the second half of 2023 and co
Slide 12: High-Performance-Alloys Division results
Results First Quarter 2024 Results Results for the High-Performance-Alloys Division remain at good levels, although margins were impacted by the steady decline in raw material prices. % Q1 24 / % Q1 24 / Q1 2024 Q1 2023 Q4 2023 Million EUR Q1 23 Q4 23 Net sales 378 305 366 24% 3% EBITDA 31 29 46 7%
Slide 13: Sustainability
Results First Quarter 2024 Sustainability 2030 sustainability targets Progress made in the first quarter of 2024 toward the Group’s 2030 sustainability targets is detailed below: Progress Pillar 2030 targets YTD 2024 20% Reduction in CO2 emissions 8% reduction vs. intensity (Scopes 1 and 2) 2015 7.5
Slide 14: Shareholder remuneration, investments in NAS and VDM, Beyond Excellence
Results First Quarter 2024 Shareholder remuneration At the Annual Meeting on April 22, 2024, shareholders approved the proposed distribution of a dividend of EUR 0.62 per share. An interim dividend of EUR 0.31 per share was paid in January and a final dividend of EUR 0.31 per share will be distribut
Slide 15: Acerinox closes an agreement for the acquisition of Haynes International
Results First Quarter 2024 Acerinox closes an agreement for the acquisition of Haynes International Acerinox announced on February 5 the signing of an agreement under which its wholly owned US subsidiary, North American Stainless (“NAS”), will acquire Haynes International (“Haynes”), a US leading de
Slide 16: Update on Bahru Stainless
Results First Quarter 2024 Update on Bahru Stainless In view of the market situation, Bahru Stainless will cease production in the second quarter, and different alternatives are being studied. 15
Slide 17: Alternative Performance Measures
Results First Quarter 2024 Alternative Performance Measures (Definitions) Beyond Excellence: Plan to improve operational excellence and competitiveness of Acerinox through specific objectives for its pillars. 360º Excellence Plan: Estimated efficiency savings for the period of 2019 to 2023 Operating
Slide 18: Disclaimer
Results First Quarter 2024 Disclaimer This document has been drawn up in good faith on the basis of the data and facts available on the day of its publication and should be read together with all the public information provided and/or published by ACERINOX, S.A. This document may contain statements
Slide 19: Q1 2024 Results Presentation
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Slide 20: Disclaimer
Q1 2024 RESULTS PRESENTATION 2 Disclaimer This document may contain forward looking information and statements about ACERINOX, S.A., its subsidiaries and/or its management, including but not limited to financial projections and estimates and their underlying assumptions, and statements regarding the
Slide 21: Q1 2024 at a glance
Q1 2024 RESULTS PRESENTATION 3 Q1 2024 at a glance Satisfactory Q1 EBITDA of €111 million, despite challenging conditions Strong cash generation of €188 million, supported by inventory reduction Net debt at €234 million, 31% lower than that of Q4 2023 Outlook: We expect Q2 EBITDA to be slightly high
Slide 22: Contribution to circular economy and sustainable development
208 Q1 2024 RESULTS PRESENTATION 4 Contribution to circular economy and sustainable development 2030 sustainability targets 360º Positive Impact Plan Eco-efficiency Engaged team, and Most significant culture, diversity, climate change sustainability initiatives and safety mitigation in Q1 2024 GHG emi
Slide 23: Q1 2024: Market Highlights
Q1 2024 RESULTS PRESENTATION 5 Q1 2024: Market Highlights STAINLESS STEEL Apparent demand of flat products up 8% in 2024 through February USA Inventories below historical average Imports of flat products market share: 25% in 2024 through February Apparent demand of flat products down 4% through Februar
Slide 24: Q1 2024: Consolidated group highlights
Q1 2024 RESULTS PRESENTATION 6 Q1 2024: Consolidated group highlights Q1 Q1 % Q1 24 / Q4 % Q1 24 / 2024 2023 Q1 23 2023 Q4 23 Melting production 461 534 -14% 486 -5% (thousands of metric tons) Net sales 1,481 1,782 -17% 1,529 -3% Q1 2024 EBITDA: EBITDA 111 226 -51% 96 15% €111 million EBITDA margin
Slide 25: Q1 2024: Stainless steel highlights
Q1 2024 RESULTS PRESENTATION 7 Q1 2024: Stainless steel highlights Million EUR Q1 Q1 % Q1 24 Q4 % Q1 24 2024 2023 / Q1 23 2023 / Q4 23 Melting production 440 515 -15% 468 -6% (thousands of metric tons) Q1 results impacted Net sales 1,109 1,476 -25% 1,166 -5% by the strike at Acerinox Europa EBITDA 8
Slide 26: Q1 2024: High-performance-alloys highlights
Q1 2024 RESULTS PRESENTATION 8 Q1 2024: High-performance-alloys highlights Million EUR Q1 Q1 % Q1 24 / Q4 % Q1 24 / 2024 2023 Q1 23 2023 Q4 23 Melting production Q1 EBITDA: (thousands of metric tons) 21 19 9% 18 14% €31 million Net sales 378 305 24% 366 3% EBITDA 31 29 7% 46 -33% Operating working c
Slide 27: Q1 2024: Capital allocation
Q1 2024 RESULTS PRESENTATION 9 Q1 2024: Capital allocation Q1 Million EUR Q1 Highlights Solid operating cash flow (OCF): €188 million Dividend payment in Q1: €77 million Strong debt reduction: €107 million ACERINOX 2020 RESULTS PRESENTATION
Slide 28: Acerinox strategy: A new platform in the USA
Q1 2024 RESULTS PRESENTATION 10 Acerinox strategy: A new platform in the USA ✓ USA antitrust: Approved ✓ Haynes special shareholders’ meeting: Approved Other regulatory approval: Pending 1 Strengthening leadership Deal expected to close: Q3 2024 in Alloys Strengthening leadership in America Strength
Slide 29: Conclusions & outlook
Q1 2024 RESULTS PRESENTATION 1111 Conclusions & outlook 01 02 03 Acerinox obtained Increased shareholder return a satisfactory EBITDA Strong cash generation: to €0.62 per share in 2024 in Q1 2024 Net financial debt €234 million (6% dividend yield as of today) 04 05 06 Stainless: Update on Haynes acqu
Slide 30: Alternative Performance Measures (Definitions)
Q1 2024 RESULTS PRESENTATION 12 Alternative Performance Measures (Definitions) Beyond Excellence: Operational excellence program for 2024 to 2026. These initiatives will be based on digital transformation, interdisciplinary collaboration, and a commitment to innovation Excellence 360º Plan: Estimated
Slide 31: Q&A Q1 2024 Results Presentation
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