Acerinox Sa · BME:ACX
Acerinox Sa — Q1 2021 Earnings Presentation
32 slides from Acerinox Sa's earnings presentation, May 11, 2021
Slide 1: Q1 2021 Results Presentation
Q1 2021 Results Presentation 11 May 2021 1
Slide 2: Disclaimer
Q1 2021 Results Presentation 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
Slide 3: Sustainability and stainless steel attributes
Q1 2021 Results Presentation • +90% recycled content • 98% of employees have rate of our products permanent contract • +80% reuse of generated waste • 64 nationalities in +50 countries • Acerinox committed to achieve on 5 continents Producing more with less carbon neutrality by 2050 • Plants employ
Slide 4: Market Highlights and Acerinox Highlights
Q1 2021 Results Presentation Market Highlights Acerinox Highlights Stronger market conditions than in Q4 2020 Q1 Production: Stainless demand continues to improve in all markets • +9% melting production QoQ High Performance Alloys (HPA) recovering • +12 melting production YoY Strongest Q1 EBITDA, 16
Slide 5: EBITDA evolution by quarter
Q1 2021 Results Presentation Million EUR 38 14 161 131 97 103 90 85 80 87 74 Q1 2019 Q2 2019 Q3 2019 Q4 2019 (1) Q1 2020 Q2 2020 (2) Q3 2020 Q4 2020 Q1 2021 (1) 38 million EUR for the lay offs in Spain (2) 14 million EUR for the expenses of the purchase of VDM 5
Slide 6: Group results Q1 2021
Q1 2021 Results Presentation Million EUR Net Sales 1,441 1,159 1,217 24% 18% Our hard work in Operating Cash Adjusted EBITDA 161 85 131 90% 23% 2020 means we are Flow of 23 million Adjusted EBITDA margin 11% 7% 11% well positioned to EUR in Q1 EBITDA 161 85 131 90% 23% benefit from stronger market c
Slide 7: Stainless Steel division results
Q1 2021 Results Presentation Million EUR Melting production (thousand Mt) 650 599 601 9% 8% Net sales 1,273 1,159 1,067 10% 19% Strong EBITDA of 152 million Adjusted EBITDA 152 85 116 80% 31% EUR in Q1 Adjusted EBITDA margin 12% 7% 11% 25 million EUR of operating EBITDA 152 85 116 80% 31% cash flow
Slide 8: High Performance Alloys division results
Q1 2021 Results Presentation Million EUR Melting production (thousand Mt) 18 19 13 -5% 43% Net sales 167 205 150 -18% 12% Adjusted EBITDA 10 20 15 -52% -38% Adjusted EBITDA 6% 10% 10% Order book recovering margin EBITDA 10 20 15 -52% -38% EBITDA of 10 million EUR EBITDA margin 6% 10% 10% Amortizatio
Slide 9: Operating cash flow and net debt
Q1 2021 Results Presentation Million EUR • Operating Cash Flow 23 million EUR • NWC build of 153 million EUR driven by seasonality and improved market conditions • Solid CAPEX of 29 million EUR in Q1 • We remain very comfortable with the Group net debt position and options for capital allocation 9
Slide 10: Acerinox 2020 Results Presentation
Q1 2021 Results Presentation 10 ACERINOX 2020 RESULTS PRESENTATION
Slide 11: Appendix
Q1 2021 Results Presentation 11 May 2021 11
Slide 12: Q1 2021 Results Presentation
Q1 2021 Results Presentation 12
Slide 13: Value creation for all stakeholders
Value creation for all stakeholders 13 ACERINOX 2020 RESULTS PRESENTATION
Slide 14: Sales and market share in America
Value creation for all stakeholders of our sales in America • Build a Modern Infrastructure • Achieve a Carbon Pollution-Free Power Sector by 2035 • Make Dramatic Investments in Energy Efficiency in Buildings, including Completing 4 Million Retrofits and market share in the US Building 1.5 Million N
Slide 15: Market share in the EU and worldwide
Value creation for all stakeholders Market share in the EU Market share worldwide Year 2020 15 ACERINOX 2020 RESULTS PRESENTATION
Slide 16: Stainless steel attributes
Value creation for all stakeholders Profitable Aesthetic Corrosion resistant Reusable Hygienic 100% recyclable Long lasting Efficient & Versatile (mechanical qualities) 16 ACERINOX 2020 RESULTS PRESENTATION
Slide 17: Stainless Steel and High Performance Alloys demand
Value creation for all stakeholders Stainless Steel: High Performance Alloys Construction Others Aerospace Mechanical Engineering Automotive Motor Vehicles Electrics / Electrical Machinery Electronics Other Transport Chemical Metal Process Oil / Gas Industry products Sources: ISSF; SMR; 1 Calculated
Slide 18: Stainless steel applications
Value creation for all stakeholders High Resistance to Hygienic and Clean Resistance to Rust, ease Corrosion, Withstand High Material, Ideal for the with which it can be Temperatures and Production, Handling and Cleaned, Becoming Stops the spread of bacteria Pressures and High Transport of Food Esse
Slide 19: Applications of nickel alloys and stainless steel
Value creation for all stakeholders Present in the Obtaining and Refurbish historic works, Important in the Distribution of turned to this material on construction of buildings Chosen as structural steel to Hydrocarbons and Biofuels. many occasions, and large works. prevent rusting and corrosion Ess
Slide 20: Further stainless steel applications
Value creation for all stakeholders Minimal corrosion, does not Excellent workability, contaminate the water and corrosion resistance, does not require any extra Needs for longevity, off-site Increasing presence in life formability, weldability for covering. Permits design credibility and potential
Slide 21: Core of our business model
Value creation for all stakeholders Core of our business model Acerinox is committed to the Circular Economy Improving due to digitalization and 360º planning, cost reduction programs and optimizing the commercial network Enhanced by VDM Metals (HPA) and constant review of all the assets of the Grou
Slide 22: Create high performance materials for a sustainable society
Value creation for all stakeholders Safety Sustainability Employer of choice Create high Become a global customer performance materials centric supplier through for a sustainable society innovation in sustainable Stainless Steel and High Performance Integrity Commitment Long-term Alloys solutions fo
Slide 23: Liquidity Position and Net Debt
Value creation for all stakeholders Liquidity Position (€m) Net Debt Liquidity remains best in class, fully covering all maturities Robust balance sheet • Net Financial Debt of €772m Available lines • Weighted Cost of Term Debt of 1.5% • ND / LTM EBITDA of 2.0x LONG TERM MATURITIES: 1,578 MILLION EU
Slide 24: Excellence 360º
Value creation for all stakeholders Production: Quality, melting shop yields and efficiency in production materials Supply chain: Delivery on time Target Actual Excellence 360º • Digitalization and 360º planning • Cost reduction programs • Prioritize quick return investments • Optimize the commercia
Slide 25: Safety, cost reduction and refinancing
Value creation for all stakeholders Safety and Fixed costs reduction Refinancing to anticipate Secured the prevention measures and variabilisation future renewals and supply chain extend maturities Our management Massive liquidity, Operating Strong track record on consistent team took Acerinox 1.8 b
Slide 26: Group structure and main shareholders
Value creation for all stakeholders Incorporation of Incorporation of Incorporation of ACERINOX, S.A. COLUMBUS VDM Metals (Spain) STAINLESS (Germany) (South Africa) Acerinox S.A. 76% Acerinox S.A. 100% I.D.C. 24% Main Acerinox Shareholders % Since Corporación Financiera Alba, S.A . 18.96% 2001 Incor
Slide 27: Production plants
Value creation for all stakeholders Kentucky Ponferrada & Igualada Flat product Long product Flat product • Melting Shop • Hot Rolling • Melting Shop • Hot Rolling Shop • Finished Product • Hot Rolling Shop Long product • Cold Rolling Shop • Cold Rolling Shop • Hot Rolling • Finished Product Long pr
Slide 28: Global presence and sales by region
Value creation for all stakeholders 12M 2019 America 12M Asia 2019 Africa Europe Others 12M 2020(1) America Acerinox Plants (6) Acerinox Sales & Services 12M Asia Acerinox Sales Agents 2020 VDM Metal Plants (7) Africa VDM Metals Sales & Services Europe Others VDM Metals Agents Source: 1 Acerinox inc
Slide 29: Acerinox and VDM: creating value
Value creation for all stakeholders Acerinox VDM Creating value through Global leader in World’s largest • Enhancement of product mix • Projects and tailor-made solutions stainless steel producer in high • Exceptional R&D capabilities performance alloys • Diversification of geographical earnings • L
Slide 30: Sales, EBITDA and net financial debt 2017-2020
Value creation for all stakeholders Million EUR Sales EBITDA Net Financial Debt 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2019: 38 million EUR for the lay offs in Spain 2020: 398 million EUR of debt related to 2020: 14 million EUR for the expenses of the VDM acquisition purchase of
Slide 31: Cash flow statement
Value creation for all stakeholders Million EUR EBITDA 85 80 87 131 384 364 Changes in working capital -97 63 74 183 223 96 Changes in operating working capital -65 50 65 186 236 44 Inventories 9 95 92 27 223 2 Trade debtors -47 93 -1 38 83 41 Trade creditors -27 -139 -26 122 -70 0 Other adjustments
Slide 32: Q1 2021 Results Presentation
Q1 2021 Results Presentation 32