Aperam S.a. · EURONEXT:APAM
Aperam — Q3 2015 Earnings Presentation
16 slides from Aperam's earnings presentation, Nov 5, 2015
Slide 1: Third quarter 2015
Third quarter 2015 November 5, 2015 © Aperam 1
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: Introduction & overview
Introduction & overview Highlights: • Health and Safety frequency rate of 1.2x in Q3 2015 compared to 0.8x in Q2 2015. • Shipments of 455 thousand tonnes in Q3 2015, a 6% decrease compared to shipments of 486 thousand tonnes in Q2 2015. • EBITDA of USD 108 million in Q3 2015, compared to EBITDA of U
Slide 4: Health & Safety Performance
Health & Safety Performance Lost Time Injury Frequency rate* 4.0 3.0 2.0 1.0 0 Profit improvement in Q1 due to market Health andfrequency & Safety internal initiatives butin rate of 1.2x Q2Q3 expected 2015 to be more challenging * WorldSteel-standard: Fr = lost time Injuries per 1.000.000 worked hou
Slide 5: Environment and markets
Third quarter 2015 Environment and markets 5
Slide 6: Stainless steel prices
Environment and markets Stainless steel prices Nickel - LME Cash (USD/t) Chinese versus European CR 304 2B 2mm coil transaction price (USD/t) 35 000 5 000 30 000 4 500 25 000 4 000 3 500 20 000 3 000 15 000 2 500 10 000 2 000 5 000 1 500 Chinese prices European prices Chinese prices seem to reach a
Slide 7: Performance and prospects
Third quarter 2015 Performance and prospects 7
Slide 8: Third quarter operating performance
Performance and prospects Third quarter operating performance Shipments (‘000t) Q3 2015 EBITDA per division (USD million) [1] 486 469 455 139 439 433 94 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 EBITDA (USD million) 155 137 133 117 108 14 13 127 129 9 104 2 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q2 2
Slide 9: Leadership Journey
Performance and prospects Leadership Journey® Cumulated gains (USD million) Asset upgrade program launched on best performing assets • Productivity improvement of the downstream 600 facilities in Genk (CAP2), Gueugnon (CAP10) Tranche 1 and Timoteo (Sendzimir Mill #1). 550 USD52m of Capex • Upgrade o
Slide 10: Financial results
Third quarter 2015 Financial results 10
Slide 11: Third quarter P&L highlights
Financial results Third quarter P&L highlights EBITDA to net income (USD million) (41) 108 (21) (7) 67 (8) 39 31 EBITDA Depreciation Operating Net interest & Forex Pre-tax Tax & Net income & impairment income f inancing & derivatives income Non-controlling costs [1] losses interests Profitresults So
Slide 12: Third quarter cash flow highlights
Financial results Third quarter cash flow highlights Free cash flow (USD million) (43) 0 108 (25) 65 40 EBITDA Working capital Net f inancial Cash-f low Capex and other Free cash-f low charges, taxes f rom investing activities & others operations Profit improvement in Q1 due Continued to market focu
Slide 13: Third quarter balance sheet highlights
Financial results Third quarter balance sheet highlights Assets & liabilities (USD million) Equity & net debt (USD million) [1] 21% 22% 20% 19% 19% 640 1 035 2 851 2 676 2276 2449 2 620 2225 2 225 591 536 508 454 419 Assets Liabilities 30/09/2014 31/12/14 31/03/15 30/06/15 30/09/15 Non-current asset
Slide 14: Sustainable cash flow from operations across the cycles
Financial results Sustainable cash flow from operations across the cycles Quarterly net debt evolution Aperam yearly Free Cash Flow, mUSD (USD million) 1 200 200 1 100 1 000 150 900 800 100 700 600 50 500 400 0 2011 2012 2013 2014 YTD 09 2015 Profit improvement Aperaminstrong Q1 duefocus to market a
Slide 15: Financial Policy
Financial Policy Priority on maintaining a strong Balance Sheet consistent with Investment Grade Financial ratios. Cash resources to be allocated to: Company Invest in sustaining and upgrading the company’s assets base to continuously sustainability reinforce Leadership Journey and Top Line Strategy
Slide 16: Q&A
Q&A Temis Innovation, Maison des microtechniques, Besançon - France Project Manager: Lamboley Architectes Office © Nicolas Waltefaugle Executed using grade 304 with UGIBRIGHT finish Joints debout