Aperam S.A. · EURONEXT:APAM
Aperam — BPI Iberian Conference 2015
29 slides from Aperam's conference presentation, Sep 11, 2015
Slide 1: BPI Iberian Conference
BPI Iberian Conference September 11, 2015 Sandeep Jalan – Chief Financial Officer © 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: Aperam's fundamentals
Second quarter 2015 roadshow Aperam’s fundamentals © Aperam 3
Slide 4: Solid and diversified sources of profitability
Aperam’s fundamentals Solid and diversified sources of profitability Aperam sales breakdown by destination (FY 2014) Aperam EBITDA breakdown (FY 2014) USA Alloys & Asia & Africa 6% Services & Specialties 7% Solutions 10% 15% Stainless & Electrical Steel Europe Brazil & Latin 36% America 25% Europe 6
Slide 5: A restructured and efficient footprint in Europe
Aperam’s fundamentals A restructured and efficient footprint in Europe able to seize market opportunities Aperam downstream rationalization in EU from 29 tools to 17 tools Aperam productivity evolution, average GENK ISBERGUES GUEUGNON 10,500 500 450 HA&P 10,000 HAP 3 HAP 3 RD 79 400 lines 350 CR mil
Slide 6: Brazilian protections against unfair market behaviour
Aperam’s fundamentals Brazilian protections against unfair market behaviour Type of products Import duties status Anti-dumping status Normal import duties are 14% AD duties starting October 4th, 2013 for 5 years from 236 USD/t to 1,077 USD/t. The case involves CR 304 and 430, in thicknesses betw
Slide 7: Definitive European anti-dumping duties on China and Taiwan
Aperam’s fundamentals Definitive European anti-dumping duties on China and Taiwan stainless steel imports from August 27, 2015 Anti-dumping development • On May 13, 2014, Eurofer filed an antidumping complaint to “China and Taiwan have a structural European Commission overcapacity problem, and have
Slide 8: An industrial footprint in Europe and South America
Aperam’s fundamentals An industrial footprint in Europe and South America, perfectly complemented with global services centres and sales network Steel making Finishing line Sales subsidiaries and representative offices Sales agencies Steel Service Centers A key competitive advantage to maintaining m
Slide 9: A leading position in nickel alloys
Aperam’s fundamentals A leading position in nickel alloys Global nickel alloys producers (kt) Aperam Alloys & Specialties geographical footprint Rescal Amilly Imhua Wire drawing The magnetic parts company 40 35 � � Transformation � workshop 30 25 � 20 Imphy ICS (JV) 15 10 5 Meltshop, wire mill
Slide 10: Environment and markets
Second quarter 2015 roadshow Environment and markets © Aperam 10
Slide 11: Stainless steel prices under pressure
Environment and markets Stainless steel prices under pressure 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 20 000 3 500 15 000 3 000 10 000 2 500 5 000 2 000 Chinese prices European prices With the recent fall i
Slide 12: European demand improving but still under pressure
Environment and markets European demand improving but still under pressure Stainless steel slab equivalent European demand Stocks of flat stainless steel in EU-27 for distribution (in million tonnes) (‘000t) 5,5 1–2% 320 300 280 5,0 260 240 4,5 220 200 4,0 180 2011 2012 2013 2014 2015F 2016F The inv
Slide 13: South American stainless steel apparent demand impacted by slowdown in Brazil
Environment and markets South American stainless steel apparent demand impacted by slowdown in Brazil South American Stainless steel apparent demand (in kt) Stainless steel flat stainless steel consumption per capita (kg/year) 700 8 7 600 6 500 5 4 400 3 2 300 1 200 0 2011 2012 2013 2014 2015F South
Slide 14: Aperam performance
Second quarter 2015 roadshow Aperam performance © Aperam 14
Slide 15: Year on Year evolution of profitability
Performance and prospects Year on Year evolution of profitability Ebitda evolution (mUSD) Net result evolution (mUSD) 11,4% 120 1,39 10,3% 350 100 300 80 0,70 250 60 108 5,5% 40 200 4,7% 20 55 150 293 288 - 100 -20 - 40 - 39 131 146 50 -40 -60 -0,51 -0,51 - 146 131 H1 2012 H1 2013 H1259 2014 H1 2015
Slide 16: Second quarter operating performance
Aperam performance Second quarter operating performance Shipments (‘000t) Q2 2015 EBITDA per division (USD million) [1] 486 466 469 139 439 433 110 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 EBITDA (USD million) 164 155 137 133 117 18 14 14 13 Q1 2015 Q2 2015 Q1 2015 Q2 2015 Q1 2015 Q2 2015 Q2 2014 Q3
Slide 17: Leadership Journey
Aperam performance Leadership Journey® Cumulated gains (USD million) Key projects completed since beginning of 2011 • In Brazil, VSS*, switch from LPG to natural gas and conversion of blast furnace number 2 from coke to biomass. • In Europe, 600 - Suspension of traditional cold roll mill in Isbergue
Slide 18: Balance sheet strengthening and debt restructuring
Aperam performance Balance sheet strengthening and debt restructuring Quarterly net debt evolution Net interest expense and other financing costs evolution (USD million) (USD million) 1 150 140 1 050 120 950 100 850 80 750 60 650 40 550 20 450 - 2013 2014 Q2 2015 runrate Profit improvement Interest
Slide 19: Aperam's value strategy
Second quarter 2015 roadshow Aperam’s value strategy © Aperam 19
Slide 20: Aperam Top Line strategy
Aperam’s value strategy Aperam Top Line strategy 2014 2015 2016 2017 2018 Current positioning Future positioning Aperam 2014-2016 strategy Markets Volume / Channels / Customers Distribution channels Commercial Prices & Marketing Aperam positioning Contracts/Spot environment Competition Mix Raw mater
Slide 21: Unlocking value of Aperam's best performing assets
Aperam’s value strategy Unlocking value of Aperam’s best performing assets Leadership Journey initiatives since 2011 by typology Upgrade program launched on best performing assets since 2014 Launched at the early stage of the program, the • Productivity improvement of the downstream restructuring in
Slide 22: New projects underway as part of Leadership Journey
Aperam’s value strategy New projects underway as part of Leadership Journey® Genk – CAP2* upgrade Gueugnon – CAP10* upgrade Timoteo - Sendzimir Mill #1 upgrade Upgrade of Motors, drives and Debottlenecking by increasing the Upgrade of electrical equipments and accumulators of CAP2*, which is t
Slide 23: New projects underway as part of Top Line strategy and Leadership Journey
Aperam’s value strategy New projects underway as part of Top Line strategy and Leadership Journey® A&S Division (Imphy - Wire Rod mill) HGO project Capex: USD10m Capex: USD17m Imphy is presently a cost leader on Nickel Alloys Wire Rods, due Produce High Permeability Grain Oriented (HGO) to a uni
Slide 24: New projects underway: Tranche 2, USD 30m Capex
Aperam’s value strategy New projects underway as part of Leadership Journey® Tranche 2, totalling USD 30 m Capex Genk – CAP2* upgrade tranche 2 Isbergues – LC2i (continuous integrated line) upgrade Furnace and cooling extension and optimisation, improving operational performance and competitiveness
Slide 25: New projects underway: Tranche 3, USD 30m Capex
Aperam’s value strategy New projects underway as part of Leadership Journey® Tranche 3, totalling USD 30 m Capex Gueugnon – CR6 to be upgraded Gueugnon – BA8 to be upgraded Upgrade of the lines CR6 and BA8, improving their efficiency, quality and sustainability On July 29, 2015, the Company announce
Slide 26: Unique asset base adapted to the South American market
Aperam’s value strategy Unique asset base perfectly adapted to the South American market Stainless steel and Electrical Steel demand in Brazil, kt Aperam’s assets optimisation in South Amercia Product mix Geographical mix 700 Export to Timoteo meltshop Americas 600 900kt capacity 500 • Stainless ste
Slide 27: Services & Solutions to support continuous activity for the mills
Aperam’s value strategy Services & Solutions to support continuous activity for the mills with positive contribution Services & Solutions quarterly shipments, ‘000 tonnes EBITDA margin of Services & Solutions, USD/t 160 30 000 250 25 000 200 120 20 000 150 80 15 000 65 USD/t 100 10 000 40 5 000 50 0
Slide 28: Aperam unique strengths in Nickel Alloys
Aperam’s value strategy Aperam unique strengths in Nickel Alloys Gains from past investments on the upstream enhancement On-going investment on downstream debottlenecking Capex totalling USD 29 million Capex of USD 16 million[1] One additional induction furnace with secondary metallurgy to : – Deb
Slide 29: Q&A
Q&A Musée des Confluences in Lyon, France Architect: Coop Himmelb(l)au © Sergio Pirrone 600t of 3mm stainless steel sheets were used for the façade and 50t of 3mm stainless steel sheets for the interior 29 decoration; in total over 17.000 sheets of stainless steel were used for this project.