June 7 th , 2017 Bernard Hallemans Chief Operating Officer Europe - - PowerPoint PPT Presentation

june 7 th 2017
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June 7 th , 2017 Bernard Hallemans Chief Operating Officer Europe - - PowerPoint PPT Presentation

Site visit 2017 Genk plant June 7 th , 2017 Bernard Hallemans Chief Operating Officer Europe Gert Heylen Head of Genk Plant 1 Disclaimer Forward-Looking Statements This document may contain forward-looking information and statements


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Bernard Hallemans – Chief Operating Officer Europe June 7th, 2017

Site visit 2017 – Genk plant

Gert Heylen – Head of Genk Plant

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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 respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target” or similar expressions. Although Aperam’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Aperam’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many

  • f which are difficult to predict and generally beyond the control of Aperam, that could cause actual results and

developments to differ materially and adversely from those expressed in, or implied or projected by, the forward- looking information and statements. These risks and uncertainties include those discussed or identified in Aperam’s filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier). Aperam undertakes no obligation to publicly update its forward-looking statements or information, whether as a result of new information, future events, or otherwise.

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Aperam Operations Europe

Site visit 2017 – Genk plant

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Aperam Operations Europe Material flows between Stainless Europe plants in Europe

Full ownership of the entire flow of the stainless steel production

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Steel plant Châtelet Steel plant GENK Hot rolling mill Châtelet Cold Rolling Mill GUEUGNON Cold Rolling Mill ISBERGUES Cold Rolling Mill GENK

Ferro alloys Scraps

C U S T O M E R S

Scraps Final Products Slabs Coils Slabs/Coils Final Products Coils Coils Final Products Production flow of Aperam Stainless & Electrical division in Europe (excluding Precision)

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Decoration trim, heat exchanges & white goods Auto, distrib. & 1st transformation

Good loading of most efficient assets benefiting from well-advanced restructuring

3 years of active restructuring for a footprint best in class Aperam Operations Europe

HAP 3 CR 4 CR 3 CR 2 CAP 1 BAL CAP 2 Skin 3 Skin 1 HAP 3 CR 2 Skin CR 1 CAP 2 LC2I CR 2 CR 4 CR 3 CR 5 CR 6 CAP 10 BA 6 BA 8 Skin 3 Skin 1 BA 11 Skin 2

HA&P lines CR mills CA&P/ BA lines Skins

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GENK ISBERGUES GUEUGNON RD 79 Suspension Swing Investment

From 29 to 17 tools by focusing on the most efficient tools and investing “a state of the art” HAP line in Gueugnon

HAP 3 CR 4 CR 3 CR 2 CAP 1 BAL CAP 2 Skin 3 Skin 1 LC2I CR 4 CR 3 CR 5 CR 6 CAP 10 BA 6 BA 8 Skin 3 Skin 1 BA 11

HA&P lines CR mills CA&P/ BA lines Skins GENK ISBERGUES GUEUGNON Core Markets Capital goods, chemicals & energy

RD 79

Swing Investment

Focusing Capex on the most efficient tools and using swing tools to manage demand variation 5

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Aperam Genk

Site visit 2017 – Genk plant

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Aperam Genk Genk: One site, two plants located in the heart of Europe Cold rolling plant Steel plant

Ideally located at 2h drive from German Ruhr area - Europe’s best customer market & scrap generation areas

Outokumpu Acerinox Aperam

Finishing line Steel making

Terni European stainless steel industry footprint Genk plant 7

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Aperam Genk From scrap to finished product

With Châtelet HRM, Genk is forming an integrated site to produce stainless steel flat products Finishing synergies have been developed with integrated SSC Benelux nearby the plant

Steel plant Cold rolling plant Genk Genk Hot rolling mill Châtelet

First A&P Cold Rolling Final A (&P) Finishing (excl. SSC Benelux) Melting Refining

  • Cont. Casting Grinding

( )

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Aperam Genk Different worldwide process innovations have been introduced in Genk

Cold Rolling up to 2m at MKW2 Steel Plant – casting up to 2m and twin casting 9

Most of the process equipments are at state-of-the-art productivity

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80% 100% 120% 140% 160% 2011 2012 2013 2014 2015 2016 2017 SP CRM 90% 100% 110% 120% 2014 2015 2016 2017 BUL3 AOD

Aperam Genk Leadership journey, launched in 2011, leads to high rhythm of

  • perational efficiency improvement

Genk largely contributes to Aperam strategy for competitiveness

Labor productivity improves by 5-7% per year, independent

  • f volume and despite more difficult mix

Ton/act FTE (Ref 2011) Steel Plant Cold Rolling Mill

Labor productivity evolution in Genk Steel Plant and Cold Rolling Mill Genk plant line productivity evolution - example Continuous improvement continues, including on equipment (e.g. AOD, BUL3) that is at best-in-class productivity

Operational efficiency (t/day) BUL3 AOD

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Aperam Genk An optimal mix between top line and complexity with strong culture of support to the development and growth of top line products

A well balanced portfolio Top line product development in close collaboration between production and sales teams

Production of the mill Top line product growth is faster than average growth in commodities

Product 1 Product 2 Product 3

Sales evolution of top line products from Genk Throughput and capacity optimized thanks to the closed monitoring of mix and Top Line volumes under the constraint

  • f technical complexity

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100% 110% 120% 130% 140% 150% 160% 170% 2012 2013 2014 2015 2016