2017 BUSINESS YEAR RESULTS M a d r i d 2 8 F e b r u a r y 2 0 1 8 - - PowerPoint PPT Presentation

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2017 BUSINESS YEAR RESULTS M a d r i d 2 8 F e b r u a r y 2 0 1 8 - - PowerPoint PPT Presentation

2017 BUSINESS YEAR RESULTS M a d r i d 2 8 F e b r u a r y 2 0 1 8 0 D I S C L A I M E R This document may contain forward-looking information and statements about ACERINOX, S.A., its subsidiaries and/or its management. These forward-looking


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SLIDE 1

2017 BUSINESS YEAR RESULTS

M a d r i d 2 8 F e b r u a r y 2 0 1 8

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SLIDE 2

1

D I S C L A I M E R

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 intent, belief or current expectations or forecasts of ACERINOX, S.A. and/or its management, as well as statements regarding future performance, plans, objectives,

  • perations, business, strategy, capital expenditures, results of operations, markets and products. These forward-looking statements or forecasts may also

include assumptions regarding future economic and other conditions, such as future nickel or chrome prices and, in general, are subject to risks, uncertainties and variables beyond ACERINOX’s control that can adversely affect them. These forward-looking statements and information do not constitute historical facts and can generally be identified by the use of terms such as “expects”, “anticipates”, “believes”, “plans”, “estimates” and similar expressions. ACERINOX, S.A. believes they all are reasonable but are not a guarantee of future performance, prices, results of operations, benefits or dividend payout policies. ACERINOX, S.A. future financial condition, financial ratios, business, results of

  • perations and dividends could differ materially from those expressed or implied in or projected by such forward-looking statements, information and forecasts.

All forward-looking statements included herein are based on information available on the date hereof. Except as required by applicable law, ACERINOX, S.A. does not undertake any obligation to publicly update or revise any forward-looking statements and information, even in the event of new information being published or new events occurring. Investors, holders of ACERINOX, S.A. securities and shareholders in ACERINOX, S.A. are cautioned not to place undue reliance on the forward-looking statements and information, which speak only as of the date they were made. All subsequent oral or written forward-looking statements or information attributable to ACERINOX, S.A. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by this cautionary statement. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever for any loss arising from any use of this document, or its contents, or otherwise arising in connection with this document. Moreover, this document nor any part of it constitutes a contract, nor may it be used for incorporation into or interpretation of any contract or other type or agreement. The points contained in this disclaimer must be taken fully into account by all persons or entities obliged to take decisions or to draw up or to publish opinions

  • n securities issued by ACERINOX, S.A., in particular, by the analysts and investors reading this document. All the aforesaid persons are invited to consult the

public documentation and information that ACERINOX, S.A. reports to or files with the bodies responsible for supervising the main securities market and, in particular, with the Spanish National Securities Market Commission (CNMV in its Spanish initials).

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SLIDE 3

2

2 0 1 7 : M A I N F I N A N C I A L F I G U R E S

2017 2016 Variation

Net Sales 4,627 3,968 17% EBITDA 489 329 49% EBIT 318 157 102%

Results before Taxes and Minorities

299 128 134%

Results after Taxes and Minorities

234 80 192%

Net Financial Debt

609 620

  • 2%

Net Financial Debt / EBITDA

1.2 1.9

  • 34%

Net Financial Debt / Equity

31% 29% 8%

M i l l i o n E U R

2 0 1 7 : B e s t y e a r o f t h e d e c a d e

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SLIDE 4

3

A C E R I N O X E B I T D A E V O L U T I O N

1 7 1

  • 1 9 1

3 8 1 3 4 1 1 9 8 2 2 8 4 5 4 2 8 6 3 2 9 4 8 9

3 . 4 %

  • 6 . 4 %

8 . 5 % 7 . 3 % 4 . 3 % 5 . 8 % 1 0 . 4 % 6 . 8 % 8 . 3 % 1 0 . 6 %

  • 1
. % . % 1 . % 2 . %
  • 3
  • 2
  • 1
1 2 3 4 5

2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

M i l l i o n E U R ( % o v e r s a l e s )

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SLIDE 5

4

A C E R I N O X A C C I D E N T R AT E E V O L U T I O N T a r g e t : z e r o a c c i d e n t s

9 . 5 7 . 5 5 . 4 5 . 8 5 . 0 3 . 3 3 . 3 2 . 6

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

  • A c c i d e n t r a t e = t o t a l n o . i n j u r i e s a n d i l l n e s s e s * 2 0 0 , 0 0 0 / n o . w o r k e d h o u r s
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SLIDE 6

5

Million EUR

Accumulated 2017

2017

Variation over Consensus

SALES 4,627 4,419 5% EBITDA 489 443 10%

% over sales 11% 10%

EBIT 318 282 13%

% over sales 7% 6%

RESULTS BEFORE TAXES 299 232 29% PRO FORMA RESULTS AFTER TAXES AND MINORITIES (without US Tax Reform) 208 180 16% RESULTS AFTER TAXES AND MINORITIES 234 180 30%

CONSENSUS 1 YEAR AGO

A C E R I N O X v s C O N S E N S U S

C o n s e n s u s c o m p i l e d b y A c e r i n o x a t J a n u a r y 2 6 t h , 2 0 1 7

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SLIDE 7

6

191 126 53 119

0. 00 20. 00 40. 00 60. 00 80. 00 100. 00 120. 00 140. 00 160. 00 180. 00 200. 00

Q1 Q2 Q3 Q4

A C E R I N O X E B I T D A

M i l l i o n E U R

A v e r a g e : 1 2 2 M i l l E U R + 5 6 %

  • 5 6 %

2017 : 489 Mill EUR ( +49% over 2016)

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SLIDE 8

7

R AW M AT E R I A L P R I C E S

A v e r a g e p r i c e : c a s h / t h r e e m o n t h s U S D / m t ( L M E ) U S ¢ / L b . C r ( M e t a l B u l l e t i n )

N i c k e l F e r r o c h r o m e

11 0 1 6 5 1 5 4 11 0 1 3 9 11 8

Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018

V o l a t i l i t y

  • f r a w

m a t e r i a l p r i c e s

8 , 0 0 0 1 0 , 0 0 0 1 2 , 0 0 0 1 4 , 0 0 0 1 6 , 0 0 0

O N D J F M A M J J A S O N D J F

2 0 1 6 2 0 1 7 2 0 1 8

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SLIDE 9

8

S TA I N L E S S S T E E L P R I C E S , 2 0 1 7

A I S I 3 0 4 2 . 0 m m . U S D / m t , c o i l f i n a l p r i c e , a l l o y s u r c h a r g e i n c l u d e d

P o s i t i v e t r e n d

1,500 1,700 1,900 2,100 2,300 2,500 2,700 2,900 3,100

J F M A M J JL A S O N D J F M

U S E U A s i a

S o u r c e : P l a t t s a n d A c e r i n o x

2 0 1 7 2 0 1 8

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SLIDE 10

9

R E A L G D P G R O W T H

R e a l G D P g r o w t h ( 2 0 1 3 = 1 0 0 ) 100 110 120 130 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

C h i n a

S o u r c e : I M F

100 110 120 130 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

S o u t h A f r i c a

100 110 120 130 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

S p a i n

100 110 120 130 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

U n i t e d S t a t e s

100 110 120 130 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

A S E A N - 5

100 110 120 130 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

E u r o a r e a

G r o w t h i n a l l r e g i o n s

+ 2 . 4 %

  • v e r

2 0 1 6

+ 0 . 9 %

  • v e r

2 0 1 6

+ 3 . 1 %

  • v e r

2 0 1 6

+ 5 . 3 %

  • v e r

2 0 1 6

+ 2 . 3 %

  • v e r

2 0 1 6

+ 6 . 8 %

  • v e r

2 0 1 6

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SLIDE 11

1 0

S E C T O R I N D I C AT O R S

E u r o f e r ´ s e s t i m a t e f o r 2 0 1 7

V e h i c l e p r o d u c t i o n C o n s t r u c t i o n H o u s e h o l d a p p l i a n c e s

+3.7% +4.3%

E u r o f e r ´ s e s t i m a t e f o r 2 0 1 7

+3.7%

E u r o f e r ´ s e s t i m a t e f o r 2 0 1 7 Y e a r t o D e c e m b e r S o u r c e : W a r d s A u t o

  • 2.5%

+3.8%

Y e a r t o D e c e m b e r S o u r c e : U S C e n s u s B u r e a u

+5.8%

Y e a r t o D e c e m b e r S o u r c e : A H A M Y e a r t o D e c e m b e r S o u r c e : C A A M

+3.9% +7.0%

Y e a r t o D e c e m b e r S o u r c e : N B S

+10.9%

Y e a r t o D e c e m b e r S o u r c e : N B S

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SLIDE 12

1 1

America Euro + Africa China Asia without China

E S T I M AT E D G R O W T H O F A P PA R E N T C O N S U M P T I O N

WORLD

S o u r c e : I S S F O c t o b e r 2 0 1 7 / C S S C e : e s t i m a t e s f : f o r e c a s t

+6.9 +13.8 +8.0 +2.2 +2.6 +2.2 +3.2 +6.5 +2.2 +5.7 +3.0 +2.5 +9.9 +4.6 +4.1

% 2 0 1 6 % 2 0 1 7 e % 2 0 1 8 f

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SLIDE 13

1 2

Tasa de crecimiento anual

Años 1950 a 2011e: +5,8%

S TA I N L E S S S T E E L W O R L D P R O D U C T I O N

S o u r c e : I S S F a n d A c e r i n o x e : e s t i m a t e s

T h o u s a n d s m t

E s t i m a t e d w o r l d p r o d u c t i o n o f S t a i n l e s s S t e e l i n 2 0 1 7 e :

48.1 million mt

( + 5 . 7 % o v e r 2 0 1 6 )

1 9 5 0 1 9 6 0 1 9 7 0 1 9 8 0 1 9 9 0 2 0 0 0 2 0 1 0 2 0 1 7 e

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

C o m p o u n d a n n u a l g r o w t h r a t e 1 9 5 0 – 2 0 1 7 e :

+ 5.9%

C o m p o u n d a n n u a l g r o w t h r a t e 2 0 0 8 – 2 0 1 7 e :

+ 7.1%

2 0 0 8

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SLIDE 14

1 3

S TA I N L E S S S T E E L I N V E N T O R I E S

2 3 4 100 200 300 400 500 600

J F M A M J JL A S O N D J F M A M J JL A S O N D J F M A M J JL A S O N D

S o u r c e : E H V

I N V E N T O R I E S O F C O L D - R O L L E D

G e r m a n y

20 40 60 80 100

J F M A M J JL A S O N D J F M A M J JL A S O N D J F M A M J JL A S O N D

40 45 50 55 60 65 70

2 0 1 5 2 0 1 6 D a y s

  • f s t o c k

2 0 1 7

100 200 300 400 J F M A M J JL A S O N D J F M A M J JL A S O N D J F M A M J JL A S O N D

2 0 1 5 2 0 1 6 2 0 1 7 I N V E N T O R I E S A T W U X I A N D F O S H A N

S o u r c e : 5 1 b x g S o u r c e : M S C I

M o n t h s

  • f s t o c k

I N V E N T O R I E S A T D I S T R I B U T O R S 2 0 1 5 2 0 1 6 2 0 1 7

T h o u s a n d m t

A v e r a g e 2 0 1 5 - 2 0 1 7 4 6 3 , 0 0 0 m t A v e r a g e 2 0 1 5 - 2 0 1 7 2 8 4 , 0 0 0 m t

T h o u s a n d m t T h o u s a n d m t

A v e r a g e 2 0 1 5 - 2 0 1 7 7 5 , 6 9 2 m t

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SLIDE 15

1 4

Year 2016

Q1 Q2 Q3 Q4 Accumulated Jan-Dec

Melt shop

668 605 615 631 2,519 2,475 1.8%

Hot Rolling

593 535 542 560 2,231 2,209 1.0%

Cold Rolling

438 436 427 437 1,738 1,716 1.3%

Long Product (Hot Rolling)

58 59 54 62 234 224 4.3%

Year 2017 Variation 2017/2016

A C E R I N O X P R O D U C T I O N

N e w r e c o r d i n C o l d R o l l i n g . S e c o n d b e s t y e a r i n M e l t i n g a n d H o t R o l l i n g

2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

M e l t i n g

T h o u s a n d s m t

2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

H o t r o l l i n g

2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

C o l d r o l l i n g

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SLIDE 16

1 5

A C E R I N O X Q U A R T E R LY P R O F I T & L O S S A C C O U N T

Q1 2017 Q2 2017 Q3 2017 Q4 2017

2017 2016 Variation

Net sales 1,252 1,191 1,067 1,116 4,627 3,968 17%

Gross operating result / EBITDA

191 126 53 119 489 329 49% % over sales 15% 11% 5% 11% 11% 8% EBIT 146 81 13 78 318 157 102% % over sales 12% 7% 1% 7% 7% 4% Result before taxes 141 76 9 73 299 128 134% Result after taxes and minorities 98 53 7 77 234 80 192% January-December

M i l l i o n E U R

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SLIDE 17

1 6

A C E R I N O X B A L A N C E S H E E T N e t D e b t / E B I T D A : 1 . 2 x G e a r i n g : 3 1 %

ASSETS LIABILITIES Million € 2017 2016 Variation Million € 2017 2016 Variation Non-current assets 2,147.62 2,357.53

  • 8.9%

Equity 1,970.30 2,168.68

  • 9.1%

Current assets 2,256.39 2,097.51 7.6% Non-current liabilities 1,149.38 1,191.17

  • 3.5%
  • Inventories

990.48 887.42 11.6%

  • Interest-bearing loans and borrowings

936.68 936.81 0.0%

  • Debtors

613.20 575.51 6.5%

  • Other non-current liabilities

212.70 254.37

  • 16.4%

Trade debtors 552.06 527.79 4.6% Other debtors 61.14 47.73 28.1% Current liabilities 1,284.34 1,095.20 17.3%

  • Cash

620.54 598.47 3.7%

  • Interest-bearing loans and borrowings

293.08 281.61 4.1%

  • Other current assets

32.17 36.11

  • 10.9%
  • Trade creditors

856.71 712.97 20.2%

  • Other current liabilities

134.55 100.61 33.7% TOTAL ASSETS 4,404.01 4,455.05

  • 1.1%

TOTAL EQUITY AND LIABILITIES 4,404.01 4,455.05

  • 1.1%

2 0 1 7 2 0 1 6 N e t f i n a n c i a l d e b t 6 0 9 6 2 0 O p e r a t i n g w o r k i n g c a p i t a l 6 8 6 7 0 2

M i l l i o n E U R

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SLIDE 18

1 7

F I N A N C I A L S T R E N G T H

N E T F I N A N C I A L D E B T A N D N E T F I N A N C I A L E X P E N S E S N E T D E B T / E B I T D A 5 8 2 5 2 9 6 1 6 7 11 6 2 0 6 0 9

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2.32 1.36 2.48 1.88 1.25

6 6 5 5 5 4 4 4 3 0 1 9

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2.94

M i l l i o n E U R

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SLIDE 19

1 8

F I N A N C I A L S T R AT E G Y

M i l l i o n E U R

7 5 0 m i l l i o n E U R r e f i n a n c e d i n 2 0 1 7 M a t u r i t i e s e x t e n d e d C o s t r e d u c t i o n H i g h q u a l i t y d e b t L o w e s t f i n a n c e e x p e n s e s i n t h e i n d u s t r y 1 9 m i l l i o n E U R i n 2 0 1 7

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SLIDE 20

1 9

3 2 9 3 2 9 2 8 9 2 5 5 2 6 9 111 111 ( 2 7 ) 8 5 1 6 ( 5 6 ) ( 3 5 ) 1 4 ( 1 5 7 ) C A S H F L O W S TAT E M E N T 4 8 9 4 8 9 4 0 7 3 7 9 3 6 6 1 8 1 1 8 1 ( 1 2 4 ) 5 7 1 ( 8 2 ) ( 2 8 ) ( 1 3 ) ( 1 8 5 )

F Y 2 0 1 7 E B I T D A W o r k i n g C a p i t a l T a x e s O p e r a t i n g C a s h F l o w C A P E X F r e e C a s h F l o w O t h e r s F i n a n c i a l c h a r g e s C a s h d i v i d e n d C a s h F l o w a f t e r D i v i d e n d s M i l l i o n E U R F Y 2 0 1 6

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SLIDE 21

2 0

C A S H G E N E R AT I O N 2 0 0 8 - 2 0 1 7

Cash generation for:

  • investments
  • shareholder remuneration
  • debt reduction

Cash generation 3,081

CAPEX 1,771 Return to shareholders 996 Net debt reduction 314

M i l l i o n E U R

UNIQUE CASE

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SLIDE 22

2 1

5 . 2 % 2 6 . 5 %

  • 3 0 %
  • 2 0 %
  • 1 0 %

0 % 1 0 % 2 0 % 3 0 % 4 0 % 5 0 % 6 0 %

I B E X 3 5 A C E R I N O X

S TO C K M A R K E T E V O L U T I O N O F A C E R I N O X , S . A . & I B E X 3 5

D a i l y p e r c e n t a g e d a t a , y e a r 2 0 1 6 a n d 2 0 1 7

2016 2017

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SLIDE 23

2 2

R E T U R N TO S H A R E H O L D E R S

E U R / s h a r e

D i v i d e n d

0 , 3 5 0 , 3 5 0 , 4 3 3 0 , 4 4 9 0 , 4 4 9

0 . 4 3 3 0 . 4 4 9 0 . 4 4 9 0 . 4 4 0 . 4 5

2 0 1 3 ( * ) 2 0 1 4 ( * ) 2 0 1 5 ( * ) 2 0 1 6 ( * ) 2 0 1 7

( * )

S c r i p d i v i d e n d

4 3 % 4 9 % 4 1 % 2 3 %

C A S H :

1 0 0 %

C o n s i s t a n t r e m u n e r a t i o n t o s h a r e h o l d e r s B a c k t o c a s h i n 2 0 1 7

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SLIDE 24

2 3

F i n a n c i a l S t r e n g t h G l o b a l P r e s e n c e O p e r a t i o n a l E x c e l l e n c e S u s t a i n a b i l i t y L e a d i n g p r o d u c t

O p e r a t i o n a l E x c e l l e n c e O p t i m i z i n g c a p a c i t y u t i l i z a t i o n Q u i c k - r e t u r n i n v e s t m e n t s F i n a n c i a l S t r e n g t h C a s h f l o w g e n e r a t i o n

S T R AT E G I C P L A N

S T R AT E G I C P L A N 2 0 1 6 - 2 0 2 0

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SLIDE 25

2 4

E X C E L L E N C E P L A N

2 0 1 7 - 2 0 1 8 EXCEL L ENCE PL AN V

Tar get : 50 million EUR

5 c h a p t e r s : O p e r a t i o n s , W o r k i n g C a p i t a l , P e r s o n n e l , C o m m e r c i a l a n d S u p p l y C h a i n

P e r f o r m a n c e t o D e c e m b e r 2 0 1 7 : 4 9 % ( 2 4 . 6 m i l l i o n E U R )

  • R e d u c t i o n o f i n v e n t o r i e s ( m t )
  • E f f i c i e n c y
  • R e l i a b i l i t y
  • S e r v i c e c e n t e r o p t i m i z a t i o n
  • P r o d u c t i v i t y

9 7 5 2 5 3 5 0

Excel Plan I 2009-2010 Excel Plan II 2011-2012 Excel Plan III 2013-2014 Excel Plan IV 2015-2016 P E R F O R M A N C E ( m i l l i o n E U R ) ( % o v e r t h e t a r g e t )

7 3 % 5 9 % 8 8 % 7 4 %

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SLIDE 26

2 5

C A P E X 9 4 1 7 3 1 7 3

2 0 1 5 2 0 1 6 2 0 1 7 M i l l i o n E U R

C o n s t r u c t i o n A P 5 , A c e r i n o x E u r o p a B A , N A S

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SLIDE 27

2 6

N o r t h A m e r i c a n S t a i n l e s s ( N A S )

B r i g h t A n n e a l i n g l i n e ( B A ) a n d S e n d z i m i r M i l l ( Z M )  S t a r t u p : s e c o n d q u a r t e r 2 0 1 7  S u c c e s s f u l r a m p u p  G o o d a c c e p t a n c e f r o m c u s t o m e r s  C u r r e n t c a p a c i t y u t i l i z a t i o n a b o v e 8 0 %  H i g h v a l u e - a d d e d p r o d u c t  M a i n a p p l i c a t i o n s : A p p l i a n c e s ( w a s h e r s a n d d r y e r s ) , t a n k t r a i l e r s , a u t o m o t i v e t r i m s , k i t c h e n e q u i p m e n t

C A P E X

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SLIDE 28

2 7

A n n e a l i n g a n d P i c k l i n g l i n e ( A P ) a n d S e n d z i m i r M i l l ( Z M ) A c e r i n o x E u r o p a

C A P E X

G o a l s :

h i g h v a l u e - a d d e d p r o d u c t s s a l e s i n c r e a s e t o e n d u s e r s c a p a c i t y u t i l i z a t i o n i m p r o v e m e n t c o s t s a v i n g s a n d e m i s s i o n r e d u c t i o n

P a y b a c k : < 5 y e a r s S t a r t u p : M a r c h 2 0 1 8 1 4 0 m i l l i o n E U R

C o n s t r u c t i o n A P 5 , A c e r i n o x E u r o p a

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SLIDE 29

2 8  E c o n o m i c g r o w t h : i n c r e a s e i n c o n s u m p t i o n  E f f i c i e n c y i m p r o v e m e n t s  R a m p u p o f n e w i n v e s t m e n t s  F i n a n c i a l s t r e n g t h

O U T L O O K 2 0 1 8 O P P O R T U N I T I E S C H A L L E N G E S

  • O v e r c a p a c i t y
  • V o l a t i l i t y o f r a w m a t e r i a l p r i c e s
  • T r a d e a c t i o n s
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SLIDE 30

2 9

Q U E S T I O N S A N D A N S W E R S

T o r r e E u r o p a , M a d r i d

slide-31
SLIDE 31

3 0

THANK YOU