Aperam S.a. · EURONEXT:APAM
Aperam — Baader Investment Conference 2019
10 slides from Aperam's conference presentation, Sep 26, 2019
Slide 1: The sustainable top yielding company in Euro Materials
Baader Investment Conference 26 September 2019 The sustainable top yielding company in Euro Materials 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: Value strategy
Value strategy Being a sustainable safe and profitable company Guiding principles Lowest cost footprint Industry leading in Europe cash flow & & sole producer financial discipline in S. America Strong balance sheet & highest dividend Self help strategy yield Solid cash generation with strong shareho
Slide 4: Financial results
Financial results EBITDA reflects weak demand an unusual import pressure EBITDA reflects the unusual market environment With high import pressure into Europe since S232 450,000 13.4% 400,000 12.3% 11.7% 350,000 11.2% 11.6% 11.0% 300,000 154 150 141 250,000 tonnes 8.7% 130 8.0% 123 200,000 115 6.9% 1
Slide 5: Market environment
Market environment Nickel spike does not trigger restocking as inventory is elevated Nickel spiked in early September… …but weak consumption limits restocking potential 20,000 80 17,500 70 15,000 60 12,500 50 10,000 40 7,500 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1
Slide 6: Self help: The Leadership Journey
Self help: The Leadership Journey© Very good progress on accelerated Leadership Journey© to defend Aperam’s position as lowest cost producer in Europe Progress & target phase 3 (recurring annualized gains) Target savings composition 200 180 Leadership Journey gains (EURm) matic Sche- 160 Cumulated 1
Slide 7: Self help: The Leadership Journey
Self help: The Leadership Journey© Self help has turned Aperam into a resilient, profitable and cash generative company Phase 1 (USD350m) : Phase 2 (USD225m): Phase 3 (EUR200m): Restructuring Asset upgrade Cost & Transformation 700 EURm 600 Realized annual cost savings 500 400 300 200 100 0 2011 201
Slide 8: Financial policy
Financial policy Strong Balance Sheet, investment in long term growth & sustainability and solid cash returns to shareholders Financial Policy 2019 ~EUR90m maintenance Company Sustainability, Upgrade and Transformation ~EUR20m Leadership Journey ~EUR40m capex in Genk 3 Value accretive growth & M&A n
Slide 9: Track record
Track record Aperam has been a solid performer even in challenging times Benefit from self help is clearly visible in earnings Delevered balance sheet provides a solid base 12.5% 29% 11.8% 10.6% 10.8% 26% 26% 10.0% 23% 20% 559 504 451 455 14% 5.7% 4.1% 368 799 6% 220 679 619 168 501 2% 442 290 -2% 1
Slide 10: ESG excellence
ESG excellence Take a look at Aperam from an ESG perspective Our mission is to produce reliable, 100% recyclable, green stainless steel Products Non toxic, long lifespan and 100% recyclable without loss of quality Climate change We have the lowest CO2 footprint in the stainless industry globally Env