Acerinox Sa · BME:ACX
Acerinox Sa — Q2 2021 Earnings Presentation
35 slides from Acerinox Sa's earnings presentation, Jul 29, 2021
Slide 1: Q2 2021 Results Presentation, 29 July 2021
Q1 2021 Results Presentation 29 July 2021 1
Slide 2: Forward-looking statements disclaimer
Q2 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 projects
Q2 2021 Results Presentation • +90% recycled content • 98% of employees have rate of our products permanent contract • +80% reuse of generated waste Intensity of CO2 emissions (scope • 64 nationalities in +50 countries 1 + 2) has been reduced by 5% on 5 continents compared to the first semester of •
Slide 4: Emissions, energy, water and accident indices
Q2 2021 Results Presentation Scope 1+2 Emissions Energy intensity Specific water Accident Frequency intensity GJ/tons produced withdrawal intensity Index Metric tons of CO2e/Tons produced m3/ tons produced (Number of LTIFR incidents/Number of hours)*1000k 3.65 9.41 1.11 -6% 8.63 -3% -18% -45% 8.35 1
Slide 5: EBITDA of 378 million EUR in H1 2021
Q2 2021 Results Presentation Million EUR Net Sales 3,066 2,331 32% EBITDA of 378 Net debt under control Adjusted EBITDA 378 179 111% million EUR, 165 at 838 million EUR, million EUR in H1 notwithstanding the Adjusted EBITDA margin 12% 8% 2020, and already increase in NWC, EBITDA 378 165 130% almost
Slide 6: Market Highlights and Acerinox Highlights
Q2 2021 Results Presentation Market Highlights Acerinox Highlights Strong and improving market conditions Q2 Production: High Performance Alloys (HPA) recovery accelerating • +1% melting production QoQ Stainless demand continues to improve in all markets: • +54% melting production YoY Q2 EBITDA, 217
Slide 7: Q2 EBITDA is the best in 14 years
Q2 2021 Results Presentation Million EUR Q2 EBITDA is the best in 14 years 217 161 131 97 103 90 85 80 87 74 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 7
Slide 8: EBITDA of 217 million EUR in Q2
Q2 2021 Results Presentation Million EUR Net Sales 1,625 1,441 1,172 13% 39% EBITDA of 217 Net debt remains Adjusted EBITDA 217 161 94 35% 131% million EUR the under control at 838 Adjusted EBITDA margin 13% 11% 8% strongest since Q2 million EUR, despite 217 80 171% EBITDA 161 35% 2007 the dividend
Slide 9: Stainless Steel: very strong EBITDA of 201 million EUR in Q2
Q2 2021 Results Presentation Million EUR Melting production 654 650 420 1% 56% (thousand Mt) Net sales 1,425 1,273 894 12% 59% Very strong EBITDA Adjusted EBITDA 201 152 71 32% 182% Adjusted EBITDA of 201 million EUR in 14% 12% 8% margin Q2 EBITDA 201 152 57 32% 252% EBITDA margin 14% 12% 6% Amortiz
Slide 10: High Performance Alloys: VDM integration continues successfully
Q2 2021 Results Presentation Million EUR Melting production 40 22 18 37 6% (thousand Mt) Net sales 201 167 368 413 -11% Adjusted EBITDA 16 10 26 33 -22% EBITDA of 16 million EUR versus 10 Adjusted EBITDA 7% million EUR in Q1 8% 6% 8% margin EBITDA 16 10 26 33 -22% Operating FCF -14 million EUR impac
Slide 11: Operating cash flow, dividend payment and net debt
Q2 2021 Results Presentation Million EUR 217 378 • Strong operating cash flow despite increase in NWC • Dividend payment of 135 million EUR • CAPEX discipline retained • We maintain a very comfortable net debt position despite the temporary cash outflows for NWC build and the dividend payment 11
Slide 12: Excellence 360º
Q2 2021 Results Presentation Excellence Plan VI Excellence 360º Estimated savings of 29 million EUR in the first half of 2021, representing an achievement of 68% compared to the target set Incorporation of HPA in the Excellence 360º, adding 15 million EUR to the estimated savings until 2023 Excellen
Slide 13: Appendix
Q2 2021 Results Presentation 13 ACERINOX 2020 RESULTS PRESENTATION
Slide 14: 29 July 2021
Q1 2021 Results Presentation 29 July 2021 14
Slide 15: Results Presentation
Q1 2021 Results Presentation 15
Slide 16: Value creation for all stakeholders
Value creation for all stakeholders 16 ACERINOX 2020 RESULTS PRESENTATION
Slide 17: US market and GDP growth
Value creation for all stakeholders • Build a Modern Infrastructure of our sales in America • Achieve a Carbon Pollution-Free Power Sector by 2035 • Make Dramatic Investments in Energy Efficiency in Buildings, including Completing 4 Million Retrofits and Building 1.5 Million New Affordable Homes • P
Slide 18: Market share in the EU and worldwide, GDP growth
Value creation for all stakeholders Market share in the EU Market share worldwide GDP growth 2021e Market share: Year 2020 e estimated I GDP growth: annual percent change Source: IMF, 23 July, 2021 18 ACERINOX 2020 RESULTS PRESENTATION
Slide 19: Stainless steel properties
Value creation for all stakeholders Profitable Aesthetic Corrosion resistant Reusable Hygienic 100% recyclable Long lasting Efficient & Versatile (mechanical qualities) 19 ACERINOX 2020 RESULTS PRESENTATION
Slide 20: 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 21: 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 22: Nickel alloys and stainless steel applications
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 23: 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 24: 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 25: 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 26: 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 27: 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 28: Safety, cost reduction, refinancing and supply chain
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 29: 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 30: Production sites
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 31: 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 32: 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 33: 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 34: 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 35: Results Presentation
Q1 2021 Results Presentation 35