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Q1 2019 RESULTS PRESENTATION 13 MAY 2019 Q1 2019 RESULTS - - PowerPoint PPT Presentation

Q1 2019 RESULTS PRESENTATION 13 MAY 2019 Q1 2019 RESULTS PRESENTATION DISCLAIMER 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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Q1 2019 RESULTS PRESENTATION

13 MAY 2019

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2

DISCLAIMER

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). Q1 2019 RESULTS PRESENTATION

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3

FIRST QUARTER PERFORMANCE

Q1 MARKET HIGHLIGHTS Improvement of market activity Alloy surcharge recovers from March, after 7 months of decline Normalization of inventory levels in EU and USA Europe Import pressure going down Final safeguards measures Historically low base price USA Volume increase Stable base prices Asia Oversupply Pressure on prices Quick reaction in Q4 allowed us to recover margins in Q1: +56% EBITDA vs Q4

  • 24% EBITDA vs Q1

NAS strong performance Lower contribution from the

  • ther

plants Production improvement vs Q4 2018: +22% melting production vs Q4

  • 6% melting production vs Q1

Positive cash generation Debt remains controlled despite the share buyback programme Q1 ACERINOX HIGHLIGHTS

X X X

  

X

Q1 2019 RESULTS PRESENTATION

     

X

 

X

  

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5,000 10,000 15,000 20,000

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

4

RAW MATERIAL PRICES

Y e a r s 2 0 1 7 - 2 0 1 9 , u p t o M a y 9

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 A v e r a g e q u a r t e r l y p r i c e U S ¢ / L b . C r

F E R R O C H R O M E N I C K E L

S o u r c e : L M E S o u r c e : M e t a l B u l l e t i n

Q1 2019 RESULTS PRESENTATION

108 108 108 104 92 82 98 110 165 154 110 139 118 142 138 124 112 120

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

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5

STAINLESS STEEL COLD ROLLED COIL PRICES AISI 304 2.0 MM

Q1 2019 RESULTS PRESENTATION

S o u r c e : C R U

U S D / m t , 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

2,710 2,474 1,932

1,500 1,700 1,900 2,100 2,300 2,500 2,700 2,900 3,100 3,300 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 2017 2018 2019

U S A G E R M A N Y T A I W A N

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6

STAINLESS STEEL INVENTORIES

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

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 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 50 60 70 80 90 2 0 1 5 D a y s

  • f s t o c k

100 200 300 400 500

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

M o n t h s

  • f s t o c k
T h o u s a n d m t A v e r a g e 2 0 1 5 - M a r 2 0 1 9 4 6 6 , 0 0 0 m t A v e r a g e 2 0 1 5 - M a r 2 0 1 9 3 0 9 , 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 - M a r 2 0 1 9 : 7 7 , 6 0 0 m t

I N V E N T O R I E S O F C O L D - R O L L E D 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 I N V E N T O R I E S A T W U X I & F O S H A N

S o u r c e : E H V G e r m a n y S o u r c e : M S C I S o u r c e : 5 1 b x g

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

Q1 2019 RESULTS PRESENTATION

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7

Q1 2019: MAIN FINANCIAL FIGURES

Q1 2019 Q1 2018 Variation Q4 2018 Variation

Net Sales 1,202 1,254

  • 4%

1,139 6% EBITDA 90 118

  • 24%

58 56% EBIT 45 76

  • 40%

16 176%

Results before Taxes and Minorities

45 76

  • 41%

17 164%

Results after Taxes and Minorities

33 58

  • 44%

16 103%

Free Cash Flow (before dividends)

17

  • 46
  • 114
  • 85%

Net Financial Debt

573 552 4% 667

  • 14%

No of employees

6,768 6,692 1% 6,709 1%

Good cash generation The activity has improved compare to 4Q

Q1 2019 RESULTS PRESENTATION

Quick reaction in Q4 allowed us to recover margins in Q1

Figures in million €

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SLIDE 8

118 151 154 90 2 0 4 0 6 0 8 0 1 0 0 1 2 0 1 4 0 1 6 0 1 8 0

Q1 Q2 Q3 Q4 Q119

8

QUARTERLY PERFORMANCE

668 639 617 516 628 Q1 Q2 Q3 Q4 Q119

  • 46

114

  • 11

114 17 Q1 Q2 Q3 Q4 Q119 667 537 666 552 573 Q1 Q2 Q3 Q4 Q119

MELTING PRODUCTION FREE CASH FLOW NET FINANCIAL DEBT EBITDA

Thousand tons Million € Million € Million €

(Before dividends)

58

Q1 2019 RESULTS PRESENTATION

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9

CASH FLOW

Q1 2019 RESULTS PRESENTATION

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10

BALANCE SHEET

Q1 2019 RESULTS PRESENTATION

ASSETS LIABILITIES Million € Mar-19 2018 Mar-18 Variation Million € Mar-19 2018 Mar-18 Variation Non-current assets 2,150.46 2,133.77 2,088.76 0.8% Equity 2,150.39 2,119.30 1,966.63 1.5% Current assets 2,588.94 2,473.82 2,387.43 4.7% Non-current liabilities 1,205.27 1,226.22 1,206.44

  • 1.7%
  • Inventories

1,051.07 1,018.74 993.68 3.2%

  • Interest-bearing loans and borrowings

992.78 1,026.29 998.44

  • 3.3%
  • Debtors

630.20 589.78 764.94 6.9%

  • Other non-current liabilities

212.50 199.93 208.00 6.3% Trade debtors 575.88 524.69 693.19 9.8% Other debtors 54.32 65.09 71.75

  • 16.5%

Current liabilities 1,383.74 1,262.07 1,303.12 9.6%

  • Cash

881.89 850.11 610.59 3.7%

  • Interest-bearing loans and borrowings

461.74 375.89 278.85 22.8%

  • Other current assets

25.79 15.18 18.22 69.9%

  • Trade creditors

820.28 783.86 895.09 4.6%

  • Other current liabilities

101.71 102.32 129.18

  • 0.6%

TOTAL ASSETS 4,739.40 4,607.59 4,476.19 2.9% TOTAL EQUITY AND LIABILITIES 4,739.40 4,607.59 4,476.19 2.9% Net Financial Debt 572.63 552.07 666.70 Operating Working Capital 806.67 759.57 791.78

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11

THE NEXT STEP: EXCELLENCE 360º

Q1 2019 RESULTS PRESENTATION

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12

EXCELLENCE 360º

Q1 2019 RESULTS PRESENTATION

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13

EXCELLENCE 360º: ROADMAP

2019 2020 2021 2022

112 MM€

89%

EXCELLENCE 360º TARGET = EUR125 MILLION IN 2023 (RECURRENT)

24 MM€

19%

2023

125 MM€

100%

59 MM€

47%

86 MM€

69%

360º

Q1 2019 RESULTS PRESENTATION

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14

OUTLOOK

Q2 EBITDA IS EXPECTED TO BE HIGHER THAN IN Q1 19

  • Imports

are expected to remain controlled in Europe and the United States

  • Market

conditions remain very competitive

  • Inventories in Europe and the

United States are at reasonable levels

The competitiveness of Acerinox will allow to maintain the positive trend of results in Q2

Q1 2019 RESULTS PRESENTATION

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THANK YOU

Q&A

Q1 2019 RESULTS PRESENTATION

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16

A c e r i n o x E u r o p a A P L i n e N A S B A L i n e

APPENDIX

Q1 2019 RESULTS PRESENTATION

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17

ACERINOX: GLOBAL PLAYER

  • Sp an ish m u lt in at ional co mp an y
  • F u lly d ed icat ed t o st ain less st eel
  • Net sales: EUR 5,011 m illio n ( 2018)
  • Am o n g larg est p ro d u cers in t h e w o rld w it h 3.5

m illio n t o n s o f m elt in g cap acit y

  • 6 f act o ries in 4 co n t in ent s
  • 6,709 p ro f essio n als in 5 co n t in en t s
  • Presen ce in 40 co u n t ries w o rld w ide w it h sales

in 80 co u n t ries

Q1 2019 RESULTS PRESENTATION

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18

HISTORY

1 9 7 0 ,

i n c o r p o r a t i o n o f A C E R I N O X , S . A . ( S p a i n )

1 9 9 0 ,

i n c o r p o r a t i o n o f N O R T H A M E R I C A N S T A I N L E S S ( U S A )

2 0 0 2 ,

i n c o r p o r a t i o n o f C O L U M B U S S T A I N L E S S ( S o u t h A f r i c a )

2 0 0 9 ,

i n c o r p o r a t i o n o f B A H R U S T A I N L E S S ( M a l a y s i a )

A c e r i n o x , S . A . 9 7 % H a n w a ( M e t a l O n e C o r p ) 3 %

M A I N A C E R I N O X S H A R E H O L D E R S

S i n c e : C u r r e n t p o s i t i o n : 2 0 0 1 C o r p o r a c i ó n F i n a n c i e r a A l b a , S . A . 1 8 . 9 6 % 1 9 7 0 N i s s h i n S t e e l H o l d i n g s C o r p . L t d . 1 5 . 4 9 % 1 9 9 8 F e y n m a n C a p i t a l S . L . ( O M E G A ) 9 . 8 8 % 2 0 0 2 I n d u s t r i a l D e v e l o p m e n t C o r p . ( I . D . C . ) 3 . 0 4 %

S o u r c e : C N M V

1 0 0 % A c e r i n o x S . A . A c e r i n o x , S . A . 7 6 % I . D . C . 2 4 % Q1 2019 RESULTS PRESENTATION

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19

ACERINOX PRINCIPLES AND VALUES

Q1 2019 RESULTS PRESENTATION

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20

ACERINOX PRODUCTION CAPACITY

M e l t i n g 1 . 4 H o t R o l l i n g 1 . 2 C o l d R o l l i n g 0 . 8 L o n g P r o d . 0 . 2 M e l t i n g 1 . 1 H o t R o l l i n g 0 . 9 C o l d R o l l i n g 0 . 7 L o n g P r o d . 0 . 2 M e l t i n g 1 . 0 H o t R o l l i n g 1 . 0 C o l d R o l l i n g 0 . 5 M e l t i n g ( * ) 1 . 0 H o t R o l l i n g ( * ) 1 . 0 C o l d R o l l i n g ( * ) 0 . 6

( * ) O n c e i t ’ s c o m p l e t e d

N O R T H A M E R I C A N S T A I N L E S S

F U L L Y I N T E G R A T E D P L A N T

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

F U L L Y I N T E G R A T E D P L A N T

C O L U M B U S S T A I N L E S S

F U L L Y I N T E G R A T E D P L A N T

M i l l i o n m t

B A H R U S T A I N L E S S

Q1 2019 RESULTS PRESENTATION

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21

STAINLESS STEEL WORLD PRODUCTION

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 50 60 70 80 90 00 10 18e

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

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 8 e :

50.7 million mt

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

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 8 e :

+ 5.9%

Q1 2019 RESULTS PRESENTATION

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22

STAINLESS STEEL WORLD PRODUCTION

C h i n a a c c o u n t s f o r 5 2 % o f w o r l d p r o d u c t i o n i n 2 0 1 8

10 20 30 40 50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Others Japan India China USA Europe

Q1 2019 RESULTS PRESENTATION

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23

PRODUCTION

+ 2 2 % o v e r Q 4 2 0 1 8

  • 6 % o v e r Q 1 2 0 1 8

MELT ING SHO P HO T RO L L ING CO L D RO L L ING

T h o u s a n d m t

601 611 562 546 575 652 637 611 668 605 615 631 668 639 617 516 628

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

524 536 498 481 526 563 572 547 593 535 542 560 577 561 524 458 531

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

395 430 393 390 418 428 429 441 438 436 427 437 462 471 443 377 422

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 Q1 2019 RESULTS PRESENTATION

+ 1 6 % o v e r Q 4 2 0 1 8

  • 8 % o v e r Q 1 2 0 1 8

+ 1 2 % o v e r Q 4 2 0 1 8

  • 8 % o v e r Q 1 2 0 1 8
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24

WORKING CAPITAL

  • 1,000
  • 500

500 1,000 1,500 2,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Mar-19 I n v e n t o r i e s T r a d e D e b t o r s T r a d e C r e d i t o r s W o r k i n g C a p i t a l

Million €

Q1 2019 RESULTS PRESENTATION

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25

NET FINANCIAL DEBT

1,075 1,084 887 582 529 616 711 620 609 552 573

200 400 600 800 1,000 1,200

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mar 19

61.3% 56.3% 47.1% 33.9% 34.1% 33.2% 35.1% 28.6% 30.9% 26.0% 26.6%

  • 5.63

2.84 2.60 2.94 2.32 1.36 2.48 1.88 1.25 1.15 1.27 Gearing NFD / LTM EBITDA

Million €

Q1 2019 RESULTS PRESENTATION

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26

CASH FLOW

Q1 2019 RESULTS PRESENTATION

Millones EUR

Jan - Mar 2018 Apr - Jun 2018 Jul - Sep 2018 Oct-Dec 2018 Jan - Dec 2018 Jan - Mar 2019 EBITDA 118 151 154 58 480 90 Changes in working capital

  • 103

17

  • 102

101

  • 87

4 Changes in operating working capital

  • 106

9

  • 95

118

  • 74
  • 47
  • Inventories
  • 3
  • 56
  • 73

104

  • 28
  • 32
  • Trade debtors
  • 141

25 10 133 27

  • 51
  • Trade creditors

38 40

  • 33
  • 119
  • 73

36 Others 3 8

  • 7
  • 17
  • 14

51 Income tax

  • 22
  • 27
  • 27
  • 5
  • 81
  • 26

Financial expenses

  • 4
  • 3
  • 8
  • 1
  • 15

Others 5 9 16 30

  • 21

OPERATING CASH FLOW

  • 12

143 26 169 326 47 Payments for investments on fixed assets

  • 34
  • 29
  • 37
  • 55
  • 155
  • 30

FREE CASH FLOW

  • 46

114

  • 11

114 171 17 Dividends and treasury shares

  • 1
  • 124
  • 2
  • 128
  • 49

CASH FLOW AFTER DIVIDENDS

  • 47

114

  • 135

112 43

  • 32

Conversion differences

  • 11

16 6 2 14 11 Variation in net financial debt

  • 57

130

  • 129

114 57

  • 21
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27

EXCELLENCE PLAN V

  • Focused on operational excellence
  • Best practices in each business unit
  • Management and control tool

97 52 53 50 27 20 40 60 80 100 120 140

PE I 2009 - 2010 PE II 2011 – 2012 PE III 2013 – 2014 PE IV 2015 – 2016 PE V 2017 – 2018 PE VI 2019 – 2020 M€

58% 73% 88% 74% 55%

133MM€ 90MM€ 60MM€ 67MM€ 50MM€ 45MM€

Achieved 2 0 1 7 - 2 0 1 8 E X C E L L E N C E P L A N V

T a r g e t : 5 0 m i l l i o n E U R A c h i e v e d : 5 5 % , 2 7 m i l l i o n E U R

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

Q1 2019 RESULTS PRESENTATION

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THANK YOU

Q1 2019 RESULTS PRESENTATION