Acerinox Sa · BME:ACX
Acerinox Sa — Q1 2023 Earnings Presentation
47 slides from Acerinox Sa's earnings presentation, 2023
Slide 1: Q1 2023 Results Presentation
1 Q1 2023 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 or
Slide 3: Q1 2023 at a Glance
Q1 2023 Results Presentation 3 Q1 2023 at a Glance Q1 EBITDA (226 million EUR) clearly better than Q4, even though market conditions remained challenging in Europe Solid strategy: control the controllables and focus on our sustainability commitments Outlook: Q2 EBITDA slightly higher than Q1 ACERINO
Slide 4: Strong Contributor to the Circular Economy
Q1 2023 Results Presentation Strong Contributor to the Circular Economy 4 Key ESG Targets - Acerinox establishes 6 sustainability targets with a vision to 2030 associated with the pillars of the 360º Positive Impact Plan. - The Group seeks to reduce, reuse and recycle the resources used as possible
Slide 5: Q1 2023: The Trough Is Behind Us
Q1 2023 Results Presentation 5 Q1 2023: The Trough Is Behind Us MARKET HIGHLIGHTS CONSOLIDATED RESULTS % Q1 23 / % Q1 23 / Million EUR Q1 2023 Q1 2022 Q4 2022 Q1 22 Q4 22 STAINLESS STEEL Melting production 534 668 397 -20% 34% Destocking process in the market (thousands of metric tons) Energy prices
Slide 6: Q1 2023: The Trough Is Behind Us – Quarterly EBITDA
Q1 2023 Results Presentation 6 Q1 2023: The Trough Is Behind Us Quarterly EBITDA Million EUR
Slide 7: Stainless Steel Highlights
Q1 2023 Results Presentation 7 Stainless Steel Highlights % Q1 23 / % Q1 23 / Million EUR Q1 2023 Q1 2022 Q4 2022 Q1 22 Q4 22 Melting production (thousands of 515 646 379 -20% 36% metric tons) Net sales 1,476 2,006 1,351 -26% 9% Robust EBITDA of 197 million EUR, with 13% margin EBITDA 197 398 70 -51
Slide 8: High-Performance Alloys Highlights
Q1 2023 Results Presentation 8 High-Performance Alloys Highlights % Q1 23 / % Q1 23 / Million EUR Q1 2023 Q1 2022 Q4 2022 Q1 22 Q4 22 Melting production 19 22 19 -13% +2% (thousands of metric tons) Strong EBITDA contribution Net sales 305 281 341 9% -11% of 29 million EUR EBITDA 29 24 21 22% 38% EBI
Slide 9: Focus on capital allocation
Q1 2023 Results Presentation 9 Focus on capital allocation Million EUR Q1 We continue to make capital allocation decisions focused on what is best all around for the business and stakeholders Operating CF -19 million EUR in Q1 2023 Capital allocation: ● Q1 saw a -173 million EUR investment in OWC, m
Slide 10: Conclusions & Outlook
Q1 2023 Results Presentation 10 Conclusions & Outlook 01 02 03 The trough is behind us. Q1 Operating cash flow Uncertainties remain: saw a strong start to the (OCF) of -19 million EUR geopolitical tensions, energy year, even though market due to 173 million EUR prices, and inflation in most conditions
Slide 11: ACERINOX 2020 RESULTS PRESENTATION
11 ACERINOX 2020 RESULTS PRESENTATION
Slide 12: Q&A
12 Q&A
Slide 13: Acerinox investment case
1 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 14: Contents
2 Contents 1. Investment Opportunity 2. The Sustainable Global Leader 3. Growth and Strategies 4. More about us
Slide 15: Investment Case
3 1. Investment Case The opportunity
Slide 16: Acerinox at a Glance
4 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 31% market share. 50% of in every aspect of life. Highest quality the Group’s sales in the USA. standards, and with no ot
Slide 17: Our ESG Model is a Commitment to the Future
5 Our ESG Model is a Commitment to the Future SAFETY, our Committed to the long-term, number 1 priority 2030 objectives Lost Time Injury Frequency Rate LTIFR x 1.000k reduction 28% in 2022 Hard-to-abate, A reference in circular economy, ready to adapt product 100% recyclable Efficiency at all levels
Slide 18: Investment Case. The Opportunity
6 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 market
Slide 19: The Sustainable Global Leader
7 7 2. The Sustainable Global Leader
Slide 20: One of the World's Largest Stainless Steel and HPA Groups
8 One of the World’s Largest Stainless Steel and HPA Groups 12,821 8,201 Customers Employees +80 +18,000 Countries Solutions for VDM (5) supplied customers´ request VDM (2) NAS Acerinox Europa Roldán Inoxfil Bahru +20 +90 Sales agents Certifications Columbus of quality 13 +50 25 Factories Commercial W
Slide 21: We Produce and Sell the Most Efficient Materials
9 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 Profitable Aesthetic Corrosion resistant Construction Aerospace Reusable Hygienic 100% recyclable Motor Vehicles
Slide 22: Our Products are Essential, Sustainable, Versatile and Efficient
10 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 23: ESG: Integral to Acerinox's DNA – 2030 Goals
11 ESG: Integral to Acerinox’s DNA Greater efficiency leads to fewer costs & a lower environmental impact, thus mitigating the effects of climate change 2030 Goals 90% Energy & Greenhouse Gas reduction Valorisation of waste 20% Sent to Landfill Increase use of Electrode Doping Natural Deep artificial i
Slide 24: ESG: Integral to Acerinox's DNA – Social Responsibility
12 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 Go
Slide 25: ESG: Governance and Ethics, Board of Directors
13 ESG: Integral to Acerinox’s DNA Governance and Ethics as our Understanding of the Business Board of directors 36% 64% 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 26: We Deliver Solid Revenues and Earnings Growth Consistently
14 We Deliver Solid Revenues and Earnings Growth Consistently Consolidated Group figures Million EUR Revenues EBITDA Net Financial Debt
Slide 27: With a Strong Cash Generation and Efficient Capital Allocation
15 …With a Strong Cash Generation and Efficient Capital Allocation Consolidated Group figures Operating Cash Flow CAPEX Return to Shareholders Million EUR Million EUR € / share * * *2020: Includes €313 million of VDM acquisition *2022: €0.50/share dividend and €0.78 SBB programs
Slide 28: 2022: a new record in a very challenging market
16 2022: a new record in a very challenging market was achieved €8,688 million €1,276 million €544 million Total Revenues EBITDA Operating Cash Flow 2,108 kMT Stainless Steel production €440 million €556 million 0.35x Net Financial Debt Net Profit Debt Financial Debt /EBITDA 82 kMT ratio High Perform
Slide 29: With a Robust Balance Sheet
17 With a Robust Balance Sheet Liquidity remains best in class, covering fully all maturities Million EUR Net Debt Robust balance sheet 2,345 AVAILABLE LINES Net Financial of which 100% Debt of is free of covenants 979 LONG TERM MATURITIES: EUR 1,571 MILLION €440 on results million Weighted Cost Imm
Slide 30: FY 2022 Record Results in a challenging year
18 FY 2022 Record Results in a challenging year Million EUR 2022 2021 % 2022 / 2021 2022 First Half positive market behaviour Melting production (‘000 Mt) 2,190 2,619 -16% Second part of the year affected by the destocking Net Sales 8,688 6,706 30% due to a deterioration in market sentiment EBITDA 1
Slide 31: Growth Opportunities and Strategy
19 3. Growth Opportunities and Strategy
Slide 32: A Solid Long-Term Strategy that Remains Intact
20 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 33: An Attractive & Resilient Investment Opportunity
21 An Attractive & Resilient Investment Opportunity Excellence Value Strong Sustainability added balance sheet • Safety: number 1 priority • VDM integration • Efficient capital allocation: • Firm commitment to on track NAS Capacity Increase $244 sustainability and contribution million to 2030 Agenda.
Slide 34: Corporate Strategy: Our 2022-2025 Targets
22 Corporate Strategy: Our 2022-2025 Targets EBITDA INTEGRATION SAFETY MARGIN SYNERGIES LTIFR (Lost Time Injury Frequency Rate) reduction: 10% / year >+10% €17 million (2022) (2022: 4.1) (2022: 15%) (2022: €25 million) (-28% vs 2021) NFD/ SAVINGS EBITDA 360º <1.2x €122 million (2022) (2022: 0.35x) (
Slide 35: Corporate Strategy in 2022: Excellence 360º
23 Corporate Strategy in 2022: Excellence 360º Efficiency was affected by a multitude of many incidents that affected the production during 2022 Million Euros In addition, the Group had planned maintenance stoppages in critical assets during summer that will bear fruit when the market conditions reco
Slide 36: Corporate Strategy in 2022 - NAS Capacity increase
24 Corporate Strategy in 2022 - NAS Capacity increase Scope of the Project 1. Increase +20% capacity to ensure keeping our leadership in NAFTA and market share 2. Focus on higher added value flat products such as BA (Bright Annealing), thin gauges and steels with special compositions. 3. New Cold rol
Slide 37: Corporate Strategy in 2022 - VDM Integration
25 Corporate Strategy in 2022 - VDM Integration The third year of integration has been completed Achieved synergies of €25 million (152% achievement) Successfully incorporated 13 new finished goods in 9 different alloys into our portfolio. The development of a joint commercial strategy is allowing us
Slide 38: Acerinox: A Forward-Thinking Investment Opportunity
26 Acerinox: A Forward-Thinking Investment Opportunity 2020 - 2021 . ACQUISITION AND FOCUS INTEGRATION OPEN TO NEW VDM-METALS INVESTMENT OPPORTUNITIES Acerinox, S.A. 100% • Always analysing companies • Enhancement of product mix, less that can complement or cyclical earnings stream improve our effici
Slide 39: Acerinox: A Forward-Thinking Investment Opportunity 2023-2024 Challenges
27 Acerinox: A Forward-Thinking Investment Opportunity Preparing for future shifts CEO’s Vision “Acerinox is in the best moment of its history thanks to the market conditions and its capacity to adapt, to the geographical and strategic diversification through high performance alloys with 2023 - 2024
Slide 40: Investor Relations Team
28 Investor Relations Team Carlos Lora-Tamayo Villacieros María Uclés Ruz Borja Riestra Marín Chief Investor Relations & Communication Officer Investor Relations Investor Relations Calle Santiago de Compostela, 100 – 28035 Madrid, España Teléfono: +34 91 398 52 38 / +34 91 398 51 56 / +34 91 398 53 0
Slide 41: More about us
29 4. More about us
Slide 42: Production Sites
30 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 43: ESG, Integral to Acerinox's DNA
31 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 44: Acerinox is Present in Every Aspect of Life
32 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 in mechanical performance. modern design (cutlery). Food & Healthcare & beverages ph
Slide 45: Stainless Steel and High Performance Alloys: Sustainable products
33 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 46: Sophisticated Products Require Best In Class Materials
34 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 47: Acerinox investment case
35 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: investor.relations@acerinox.com