Acerinox Sa · BME:ACX
Acerinox Sa — Non-Deal Roadshow (March 2023)
48 slides from Acerinox Sa's roadshow presentation, March 2023
Slide 1: FY 2022 Results presentation
1 FY 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 or
Slide 3: Acerinox: The Best Shape in its History
FY 2022 RESULTS PRESENTATION 3 Acerinox: The Best Shape in its History Supply chain issues and trade defense measures continue to make imports less 01 attractive Regionalization trend will attract more purchases in local markets and will contribute 02 to increasing stainless steel consumption. It is
Slide 4: Acerinox: 2022 a Record Year
FY 2022 RESULTS PRESENTATION 4 Acerinox: 2022 a Record Year Financial & operating Strategy ESG Record Net Sales Value Added: Diversification through HPA of €8.7 billion Highest recognition in ● VDM record EBITDA of Sustainability, the €125 million Incorporation of 122 Platinum award, Record EBITDA of
Slide 5: Strong Contributor to the Circular Economy
FY 2022 RESULTS PRESENTATION 5 Strong Contributor to the Circular Economy Key ESG Targets 2022 Acerinox establishes 6 sustainability targets with a 2030 vision associated with the pillars of the 360º Positive Impact Plan. The Group seeks to reuse, reduce and recycle as many of the resources used as
Slide 6: FY 2022 Record Results in a challenging year
FY 2022 RESULTS PRESENTATION 6 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
Slide 7: Q4 Results: Weaker EBITDA but Outstanding FCF
FY 2022 RESULTS PRESENTATION 7 Q4 Results: Weaker EBITDA but Outstanding FCF Q4 Q3 Q4 % Q4 22 / % Q4 22 / Million EUR 2022 2022 2021 Q3 22 Q4 21 Q4 Market Highlights Melting production 397 502 627 -21% -37% (‘000 Mt) HPA DIVISION Net sales 1,693 2,175 1,937 -22% -13% Strong HPA market despite the ty
Slide 8: Stainless Steel Division Highlights
FY 2022 RESULTS PRESENTATION 8 Stainless Steel Division Highlights Highlights Q4 Q3 Q4 FY FY % Q4 22 / % FY 22 / Million EUR 2022 2022 2021 2022 2021 Q4 21 FY 21 FY Melting production Record Net Sales 379 482 608 2,108 2,541 -38% -17% (‘000 Mt) Highest EBITDA ever Net sales 1,351 1,838 1,709 7,426 5
Slide 9: High Performance Alloys Highlights
FY 2022 RESULTS PRESENTATION 9 High Performance Alloys Highlights FY Highlights Million EUR Q4 Q3 Q4 FY FY % Q4 22/ % FY 22/ 2022 2022 2021 2022 2021 Q4 21 FY 21 Record year in production and results: ● Production 82 thousand tones Melting production 19 20 19 82 78 -2% 5% ● Net sales: €1.3 billion (
Slide 10: FY operating FCF €544 million, 23% of Market Cap
FY 2022 RESULTS PRESENTATION 10 FY operating FCF €544 million, 23% of Market Cap at December 31st 2022 FY Million EUR FY Highlights Operating cash flow €544 million in the full year FY shareholder returns of €336 million (14% of market cap at December 31st 2022) We have once again demonstrated our fle
Slide 11: Conclusions & Outlook
FY 2022 RESULTS PRESENTATION 11 Conclusions & Outlook 01 02 03 04 A further deterioration of Q4 results also impacted The Group continues to deploy Stainless market conditions in HPA contributed well with all programmes it has in place negatively by a material Q4 due to accelerated EBITDA currently
Slide 12: FY 2022 Results Presentation
FY 2022 RESULTS PRESENTATION 12 ACERINOX 2020 RESULTS PRESENTATION
Slide 13: Q&A
13 Q&A
Slide 14: 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 15: Contents
2 Contents 1. Investment Opportunity 2. The Sustainable Global Leader 3. Growth and Strategies 4. More about us
Slide 16: Investment Case
3 1. Investment Case The opportunity
Slide 17: 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 18: 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 19: 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 20: The Sustainable Global Leader
7 7 2. The Sustainable Global Leader
Slide 21: 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 22: 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 23: 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 24: 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 25: ESG: Social Responsibility with the Entire Community
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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: Growth Opportunities and Strategy
19 3. Growth Opportunities and Strategy
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: Preparing for future shifts: 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 41: 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 42: More about us
29 4. More about us
Slide 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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