Q1 2020 results

6 May 2020

The sustainable top yielding company in Euro Materials

1

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 of which are difficult to predict and generally beyond the control of Aperam, in particular, the length and severity of the recent COVID-19 (coronavirus) outbreak, including its impacts in the sector, macroeconomic conditions and in Aperam's principal local markets, 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.

2

Content

1.

Q1 2020 highlights

page

4

2.

Financial results

page

11

3.

Value Strategy

page

16

4.

ESG

page

25

5.

Business Overview

page

37

Group Segments & corporate structure

page

38

Stainless & Electrical Steel Europe

page

44

Stainless & Electrical Steel South America

page

48

Services & Solution

page

54

Alloys & Specialties

page

57

Appendix

page

61

Musée des Confluences in Lyon, France. Architect: Coop Himmelb(l)au ©

Sergio Pirrone. Stainles steel used: Aperam 316L/1.4404 with Uginox Met

3

Health & Safety

Performance

Health & Safety frequency rate of 1.9 in Q1 2020

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

07 1Q

07 3Q

08 1Q

08 3Q

09 1Q

09 3Q

10 1Q

10 3Q

11 1Q

11 3Q

12 1Q

12 3Q

13 1Q

13 3Q

14 1Q

14 3Q

15 1Q

15 3Q

16 1Q

16 3Q

17 1Q

17 3Q

18 1Q

18 3Q

19 1Q

19 Q3

20 1Q

Health & Safety of our people is our prime objective

4

Q1 2020 Operational highlights

Q1 was a seasonally normal quarter till the second half of March when COVID related disruptions resulted in extra costs

Q1 2020 key developments

adj EBITDA was impacted by COVID related costs and higher inventory valuation effects. Solid cash flow despite seasonal increase in working capital

All major plants are operational post the Q1 stop for the

H&S upgrade. Capacity is fully aligned with demand

Leadership Journey© gains are on track with EUR23m additional annualized gains in Q1 (cum. total EUR146m)

Anti-dumping duties on HR from China, Indonesia and

Taiwan since April. Countervailing duty case progesses

Stainless prices remained under pressure despite the seasonal volume increase

Order book started to reflect COVID induced demand drop towards the end of the quarter

Aperam is fully prepared to master the COVID impact

5

Q1 2020 Financial highlights

Inventory devaluation and COVID costs caused qoq adj EBITDA decrease

Solid free cash flow despite seasonally higher working capital

EURm

Q1 20

Q4 19

qoq

Q1 19

yoy

Sales

1,049

1,000

5%

1,178

-11%

adj. EBITDA

70

85

-18%

81

-14%

EBITDA

70

102

-31%

81

-14%

Basic EPS (EUR)

0.36

0.36

-1%

0.30

20%

Steel shipments (000t)

438

402

9%

501

-13%

adj EBITDA/tonne (EUR)

160

211

-24%

162

-1%

adj EBITDA margin

6.7%

8.5%

-21%

6.9%

-3%

Operating cash flow

63

162

-61%

71

-11%

CAPEX

-45

-52

-13%

-47

-4%

Other investing CF**

0

30

NM

0

NM

Free cash flow*

18

140

-87%

24

-25%

Dividends paid

-32

-35

-9%

-33

-3%

Net financial debt

108

75

44%

106

2%

Q1 key comments

  • Seasonal pick up in shipments was supported by full import quotas
  • Adj EBITDA decreases qoq due to neg inventory valuation and COVID related production disruptions
  • Stable EPS qoq due to a EUR26m deferred tax asset impairment in Q4
  • Strong operating cash flow with 90% EBITDA cash conversion despite seasonal working capital build
  • Q1 CAPEX in line with the guidance. Genk project is on track
  • Very strong balance sheet with 0.3x NFD/EBITDA despite slight increase in net financial debt
  • Comfortable liquidity position ~EUR600m (~50% cash / 50% RCF)

Reliable strong cash generator in the sector with a strong balance sheet

*before dividend and share buyback

6

**divestment of Gerdau stake in Q4-19

Aperam is a resilient company

Our solid balance sheet forms the basis for weathering the pandemic

Convincing financial scorecard

  • Solid balance sheet with 0.3x NFD/EBITDA
  • No earnings related covenants in any financing arrangement
  • First major debt redemption in 2023 only
  • Liquidity on hand ~EUR600m end of Q1
  • Progressive dividend policy was confirmed by the AGM
  • Share buyback postponed by 6 months

Aperam was FCF positive in every year since 2008

500

10%

9%

8%

12%

400

6% 6%

6% 5%

300

4%

281

71

200

EURm

85

241

260

211

100

163

190

106

30

108

0

58

-100

-200

-300

-400

2008

2010

2012

2014

2016

2018

Capex

∆ WC

FCF

FCF yield

Balance sheet has been cleaned up

2.1 10.9

2.6

1,018

984

799

2.4

3.7

501

442

290

679

619

48

75

108

2.3

1.1

0.6

0.3 -0.1

0.1

0.2

0.3

147 -63

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

20 Q1

Net debt (m€)

Net debt / LTM EBITDA

High liquidity on hand and favorable debt maturity profile

700

600

500No credit arrangement contains

400any earnings related covenant

300

200

100

0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

EIB loan

Leasing & other

Schuldschein

Com. Paper & other

Cash & equiv.

RCF

7

Environment & markets

Market share of imports has contracted but remains elevated. Inventory and price premium versus Asia are both in normal range

Market share of imports drops to 24.6% - stable CR, clearly lower HR

450,000

40%

350,000

20%

tonnes

250,000

0%

150,000

50,000

-20%

-50,000

16-Q3

17-Q1

17-Q3

18-Q1

18-Q3

19-Q1

19-Q3

20-Q1

-40%

16-Q1

Indonesia

All other

YoY %

Market share %

Nickel spike has completely reversed and stainless price followed

3,500

17,000

3,000

12,000

2,500

7,000

2,000

Jan14

Jul14

Jan15

Jul15

Jan16

Jul16

Jan17

Jul17

Jan18

Jul18

Jan19

Jul19

Jan20

Nickel LME (USD/t)

CR 304 Europe (USD/t, RHS)

Inventory in (t) is seasonally normal and

Stainless price premium vs Asia is in the normal range

inventory days have normalized

90,000

90

85,000

85

80

80,000

75

75,000

70

70,000

65

60

65,000

55

60,000

50

16 Q1

16 Q2

16 Q3

16 Q4

17 Q1

17 Q2

17 Q3

17 Q4

18 Q1

18 Q2

18 Q3

18 Q4

19 Q1

19 Q2

19 Q3

19 Q4

20 Q1

German distributors inventory (t)

Days

800

600

400

200

0

Jan14

Jul14

Jan15

Jul15

Jan16

Jul16

Jan17

Jul17

Jan18

Jul18

Jan19

Jul19

Jan20

CR304 Europe vs Asia (USD/t)

Source: Bloomberg, Metal Bulletin, Edelstahlhandelsvereinigung, Eurofer

8

*Countries with a SS Hot Rolled quota: China, S. Korea, Taiwan, USA

Countries with a SS CR quota: S. Korea, Taiwan, India, USA, Turkey, Malaysia, Vietnam

all other countries if not exempt fall under the residual quota

Outlook & COVID response

Quick & decisive action has been taken

Operational & financial measures

  • Health & safety measure in all plants to keep our employees safe
  • Capacity is aligned with demand. All production plants are operating without bottlenecks
  • Raw material supply is fully secured
  • Maximum of costs are being variablized (temp. unemployment in all plants & headquarter / termination of temp. contracts). Fixed cost reduction in line with volume development
  • All non-essential & discretionary expenses have been frozen
  • Capex has been frozen. New 2020 guidance ~EUR100m (was EUR110-120m) of which half is for Genk and the Leadership Journey

Q2 2020 outlook

  • Q2 2020 shipments are expected to further contract by up to 25% qoq. Order book is holding up well considering the environment.
  • Adj EBITDA is expected to decrease and to include again a negative inventory valuation effect
  • Net financial debt is expected to increase slightly despite positive free cash flow

Aperam is prepared to withstand a worse than GFC scenario

9

Corporate Access

Post Q1 2020 schedule

12. May

Investor calls France

Oddo

12. May

2020 Global Metals, Mining and Steel conf.

Bank of America

13. May

2020 Global Metals, Mining and Steel conf.

Bank of America

14. May

Investor calls France

Oddo

15. May

Investor calls UK & Ireland

JP Morgan

18. May

Investor calls Germany, Switzerland & Italy

Exane

19. May

Investor calls Benelux & Spain

Degroof Petercam

28. May

SG Nice conference

Societe Generale

We are looking forward to keep up the dialogue with you

10

Financial Results

Middle East Training Center, Beirut Rafic Hariri International Airport, Lebanon - Khatib & Alami Executed using grade316L with Uginox Méca 8ND fini

11

Financial results

Q1 2020: Negative inventory valuation and COVID costs conceal a good start to the year

Stainless & Electrical Steel

Services & Solutions

Alloys & Specialties

177

124

109

adj EBITDA*

(EURm)

71

adj EBITDA/t

52

53

(€)

Q1 19

Q4 19

Q1 2020

  • Shipments increased seasonally qoq from a low base despite of soft demand and destocking in Europe & Brazil
  • QoQ: Europe adj EBITDA reflects higher volumes and a margin expansion that overcompensated by inventory valuation losses and COVID costs. Brazil declined seasonally
  • YoY: comparable adj EBITDA as a price/ cost expansion compensated for COVID costs and lower volumes

75

48

28

adj EBITDA*

(EURm)

16

adj EBITDA/t

9

(€)

4

Q1 19

Q4 19

Q1 2020

  • Shipments increased seasonally qoq and full quotas turned distributors towards domestically produced material
  • QoQ higher adj EBITDA qoq reflects increasing volumes that more than compensated for a neg valuation effect and COVID costs
  • YoY: lower adj EBITDA due to lower volumes and COVID related costs

1,489

1,237

989

adj EBITDA*

(EURm)

12

14

adj EBITDA/t

(€)

9

Q1 19

Q4 19

Q1 2020

  • Shipments remained stable qoq
  • QoQ & YoY: lower adj EBITDA was driven by significant COVID related costs and negative inventory valuation effects

Adj. EBITDA of 160 EUR/t in Q1 2020 flat yoy due to COVID-19 related costs

* Difference with total Aperam's quarterly adj EBITDA due to Others & Eliminations line

12

Financial results

Q1 2020: Volumes rebound seasonally but price pressure remained high and COVID shutdown added costs

Shipments rebound seasonally and benefitted

Q1 adj. EBITDA reflects negative inventory valuation

517

from quota restrictions

508501

480

467465

438

418

402

and COVID-19 related costs

12.3%

11.6%

150 11.0%

141

123

8.7%

8.5%

8.0%

8.1%

6.9%

95

6.7%

90

81

85

79

70

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Shipments (thousand metric tonnes)

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Adj. EBITDA (m€)

Adj. EBITDA as % of Sales

Q1 2020 underlying profitability improved qoq

13

Financial results

Q1 2020: Upstream reflects COVID related plant shutdown costs and neg valuation. S&S benefits from higher volumes

One-off items hide a good start to the year

EPS: taxes balanced lower EBITDA

adj. EBITDA (EURm)

0.99

0.94

0.99

0.87

0.69

71

0.47

53

85

80

72

0.36

0.36

0.30

57

49

25

37

29

29

9

14

9

4

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Q4 19

Q1 2020

Q4 19

Q1 2020

Q4 19

Q1 2020

S&E

S&S

A&S

Net result (m€)

EPS (€)

Pricing remained below the historic seasonal average

*Q4 2018: Financial results includes a EUR18m gain related to the convertible bond due to the expiry of put option by bondholders

*Q1 2019: Financial results includes a EUR11m charge related to the convertible bond due to accelerated amortization of the premium (reversal of the Q4-18 gain)14

*Q4 2019: Income tax expense contains a EUR26m impairment of the deferred tax asset

Financial results

Q1 2020: Solid cash generation with 90% cash conversion. Seasonally higher working capital in line with higher volumes

Solid FCF despite volume driven working capital build

EURm

200

140

100

72

62

35

45

0

15

24

18

-100

-4

-200

18 Q1

18 Q2

18 Q3

18 Q4

19 Q1

19 Q2

19 Q3

19 Q4

20 Q1

Change in working capital

Capex

Free Cash Flow

Minor net debt increase due to increase in working capital

and dividend payment

Aperam's dividend rests on a solid balance sheet and a structurally high FCF generation

* Includes interest, taxes and other items

15

Value Strategy

Adobe stock

16

Investment case & value strategy

Guiding principle: Being a sustainable safe and profitable company

Aperam foundation

Lowest cost footprint

Industry leading

in Europe

cash flow &

& sole producer

financial discipline

in S. America

Strong balance sheet

& highest dividend Self help strategy

yield

(Leadership Journey©)

Solid cash generation with strong shareholders' return.

New projects and Leadership Journey© will further improve Aperam's profitability

17

Investment case & value strategy

Financial policy: Strong balance sheet, investment in long term growth & sustainability and solid cash returns to shareholders

Financial Policy

2020

Company Sustainability, Upgrade and Transformation

Value accretive growth & M&A

min IRR 15%

~EUR50m maintenance

~EUR15m Leadership Journey©

~EUR35m capex in Genk

new CRM & APL

Sequence

Dividend

Dividend of EUR 1.75

=ෝ EUR140m

base dividend, anticipated to progressively increase over time*

Maintain a strong balance sheet consistent with Investment Grade ratios

Target NFD/EBITDA ratio of <1x (through the cycle)

Utilize remaining excess cash in most optimal way

Share buyback

up to

EUR100m / 3.8m shares

Well positioned for value accretive opportunities while maintaining a solid financial policy

with attractive cash payout to shareholders

*Base dividend review in the (unlikely) event that NFD/EBITDA exceeds 1x.

18

Investment case & value strategy

Leadership Journey© Self help has turned Aperam into

a

resilient, profitable and cash generative company

Phase 1 (USD350m):

Phase 2 (USD225m):

Phase 3 (EUR200m):

2011-13 Restructuring

2014-17 Asset upgrade

2018-20 Transformation

Realized cost savings

Number of production lines

Headcount

700

EURm

600

500

400

300

200

100

0

-26%

2011

2019

Base price

Adj EBITDA

EURm

-32%

368340

-9%

2011

2019

Free cash flow

EURm

165%

281

106

2014

2019

2014

2019

2014

2019

Source: CRU (base price), Aperam accounting data

19

Investment case & value strategy

Track record: Aperam a solid performer even in challenging times

Solid operating performance despite market headwind

Transformation yields a positive net income even

in a recessionary market environment

11.8%

12.7%

2.47

4.00

3.39

10.6%

10.8%

1.99

1.82

0.91

8.9%

567

8.0%

320

5.7%

504

286

455

-1.08

-0.96

193

451

155

148

4.1%

368

71

340

-86

-74

168

220

2012

2013

2014

2015

2016

2017

2018

2019

2012

2013

2014

2015

2016

2017

2018

2019

Adj. EBITDA (m€)

adj. EBITDA margin

Net result (m€)

EPS (€)

A strong balance sheet is corporate policy

26%

23%

20%

14%

6%

2%

3%

619

-2%

501

442

290

147

-63

48

75

2012 2013 2014 2015 2016 2017 2018 2019

Net debt (m€)

Gearing (%)

2019 volumes reflect soft real demand in both EU and Brazil

and trade war induced imports

1,683

1,728

1,813

1,886

1,917

1,936

1,972

1,786

2012 2013 2014 2015 2016 2017 2018 2019

Aperam shipments (kt)

20

Investment case & value strategy

Resilience: Strong balance sheet, high liquidity and low maintenance capex

A strong balance sheet forms a solid base

Low maintenance capex + solid investment

in a volatile industry*

in growth improvement

3.7

200

2.3

175

1.1

150

47

84

0.6

125

61

0.3

619

0.1

0.2

100

44

34

501

-0.1

442

75

~50

117

290

108

48

75

50

75

84

90

147

-63

25

~50

0

2015

2016

2017

2018

2019

2020e

Net debt (m€)

Net debt

/ LTM EBITDA

Replacement capex (EURm)

Growth / Improvement

Balanced maturity profile & ample liquidity

Flexible mix and broad range of financing instruments2

Com. Paper &

700

other

600

500

No credit arrangement contains

Leasing &

400

Schuldschein

other

any earnings related covenant

300

200

100

0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

EIB loan

Leasing & other

Schuldschein

EIB loan

Com. Paper & other

Cash & equiv.

RCF

*Aperam intends to maintain a strong balance sheet that is consistent with investment grade ratios

2Financing documentation is in line with investment grade standards and

contains no pledges of assets or earnings covenants

21

Investment case & value strategy

Shareholder focus: We care about investors and can support it due to a high & stable FCF

Solid cash generation through the cycle

High profitability

Low cash taxes*

Low cash interest

126%

85%

112%

69%

78%

67%

59%

45%

354

377

374

400

295

212

152

184

2012

2013

2014

2015

2016

2017

2018

2019

Cash-flow from operations (m€)

Cash flow conversion

Solid average 8% free cash flow yield*

500

10%

9%

8%

12%

400

6%

6%

6%

5%

300

281

200

EURm

85

241

260

211

100

58

106

108

0

-100

-200

-300

-400

2012 2013 2014 2015 2016 2017 2018 2019

Capex

∆ WC

FCF

FCF yield

Best in class cash distribution to shareholders

(EURm)

70

93

100

90

87

106

130

142

140

2016

2017

2018

2019

2020e

Dividends

Share buy backs

*at year end 2019 the recognized deferred tax asset on tax losses amounted to EUR144m and the unrecognized deferred tax asset amounted to EUR438m

22

Investment case & value strategy

Portfolio improvement: Top line strategy

Constant innovation to shift portfolio into attractive growth / margin segments

Growth

New products in sales

130

125

120

Niches

2015=100

115

Margin management /

110

demand driven

105

Index

100

95

New Asian

90

competition

85

Margin

80

2015

2016

2017

2018

Guiding principle: strengthen product & service differentiation

  • Increase competitiveness against other materials by improving existing solutions
  • Innovate and apply existing solutions to new target markets
  • Develop innovative new products
  • Optimize product & customer mix
  • Redefine distribution channels

Aperam product areas (size indicates volumes)

23

Investment case & value strategy

ESG excellence: Take a look at Aperam from an ESG perspective

Our mission is to produce reliable, 100% recyclable, green stainless steel

Products

Non toxic, long lifespan and 100% indefinitely recyclable without loss of quality

Climate change

We have the lowest CO2 footprint in the stainless industry globally

Environment

We are recycling champion and 33% of our energy intake is renewable

Process

We have ambitious ESG targets and a convincing track record

Social

We value our diverse workforce, invest in training & 86% rate us a good employer

Governance

The majority of our board is independent

Compliance

We have a robust compliance framework and a zero tolerance policy

Please find our complete ESG presentation & report at: www.aperam.com/sustainability

24

ESG

Silène luminaris sive Muflier de Borges, Miguel Chevalier Fondation Clément, Le François, Martinique - France Fabrication : Serrurerie La Parette, Roquefort-la Bédoule

Aperam stainless steel used : Aperam 316 Hot Rolled

Aperam produces the greenest stainless steel globally

25

ESG summary

ESG is core at Aperam and starts at the top

Governance & Stakeholders

  • Our high ethical standards are reflected in our robust corporate governance and structured compliance program with a zero tolerance policy for non compliant behavior
  • our Board of directors is composed of a majority of independent directors
  • Board Committees are independent members only
  • We aim to be a partner of choice for our customers and suppliers
  • Our Corporate Responsibility is reflected by local programs and stakeholder engagement

We take E, S and G seriously

Social

  • Our people are colleagues with whom we share values and a common future
    • Their safety is our non-negotiable priority
    • Their motivation and creativity is our greatest asset
    • Their development is a key to our success.
  • We actively promote diversity
  • We believe in a positive dialogue and have collective labour agreements in place throughout Aperam

Environment

  • As an energy-intensive company, we consider environmental consciousness as a necessary prerequisite to our sustainable profitability
  • Recycle: Our products are infinitely recyclable and our main input in Europe is recycled scrap
  • We have an industry leading CO2 footprint with the greenest" stainless steel globally due to our FSC-certified forest in Brazil
  • We have clear targets in place to improve our environmental performance and are a member of Responsible Steel®

26

ESG summary

Our products are environmentally friendly

Our mission is to produce reliable, 100% recyclable, green stainless steel

  • Our stainless & alloy products are 100% recyclable - without any loss of quality
  • Our products have a very long useful life - they support and enable a sustainable global development
  • Our products are non toxic in production and usage
  • We are the only stainless steel mill using 100% charcoal instead of coal based coke in our BFs
  • Our European production is predominantly based on scrap recycling: >80% of raw material
  • Our product is 'Green Steel' because it is produced from a clean and renewable energy source
    By doing so, we maintain a relationship of respect with the surrounding environment

Recycling

Mechanical

Resistance

Corrosion

Cleanability

Aesthetics

properties

to fire

resistance

Steel is an alloy of iron and carbon. Stainless steel additionally contains at least 10.5% chromium. Stainless steels' corrosion resistance and mechanical properties can be further enhanced by adding other elements, (eg nickel, molybdenum, titanium, niobium, manganese, etc) and through mechanical & thermal treatment

27

ESG summary

Aperam produces sustainably and responsibly

Our mission is to produce reliable, 100% recyclable, green stainless steel

Renewable energy

Recycling

In our BioEnergia unit, based in Brazil, we produce charcoal from our FSC-certifiedsustainably cultivated

eucalyptus forests in Minas Gerais

Charcoal is used in our steel-making process as a natural and renewable substitute for fossil fuels (coke). We managed to eradicate entirely the use of coal based coke in our blast furnaces which gives us a sector leading CO2 footprint

In Europe, our main input is recycled scrap (>80%). We truly believe in and work to promote the circular economy

We are true promoters of the circular economy, with a 100%-owned Recyco unit dedicated to the recycling of melting shop dust and sludges in Europe

Best practice forest management, recognized by the Forest Stewardship Council's (FSC®) certification, which standards and principles conciliate ecological protection (flora and fauna, but also water reserves) with social benefits and economic feasibility. Our forests are made of selected cloned saplings which are considered among the best on the market 28 and they are separated by firewalls and strips of natural vegetation to take into account both fire-prevention, biodiversity preservation and local development (beekeeping).

ESG summary

Aperam supports the United Nations' Sustainable

Development Goals

We take broad responsibility: our Products and Environmental and Social action

Health & Safety is Aperam's primary concern and the priority in all our proceedings

More than 30% of Aperam's energy comes from renewables as biomass

(charcoal) and, via pilot projects, wind and solar

Aperam is a recycling champion: We use the maximum amount of

recycled material (not only scrap) in our production and also take good care to leverage wastes and byproducts in line with our zero-waste target

Gender balance is ranked highly on our priority list as from 2017 and has received

a special commitment from management, who decided to set up specific objectives for creating more gender balance in our workforce

Research & Development and innovation are top priorities for Aperam. We

also help our customers adapt their own processes (welding, stamping, etc.) to make the most of their tools

Our BioEnergia cultivated forest produces charcoal which prevents use of met

coal & coke and acts as a FSC certified carbon sink. Our plants are constantly reducing their energy consumption and participate in our climate action plan

In our forestry, located on hydric-stressed areas like our other plants, lowering

water consumption and improving the quality of discharge are key elements of our environmental strategy

Aperam is committed to a sustainable cohabitation with our neighboring

communities, allowing host cities to

thrive and addressing inhabitants' legitimate requests

Ethics are a key component

to Aperam's values. We

comply with all applicable regulations, interact transparently with authorities and support the fight against corruption, money laundering and anti-competitive practices - among others

Environment

Social

Governance

29

ESG summary

Social: Our people are our asset

Criteria

2020 Target

Lost-time injury

<1

frequency rate

Employee satisfaction1

N/A

Diversity

Increase

Training hours/FTE

Increase

Absenteeism

2.0

Aperam 2019 statusSteel industry 2017*

1.7

!

2.93

86%

78%

Women 12% of staff 20% of exempts

35.5

3.1

Safety always comes first at Aperam. We rely on our people to transform our company from a

traditional industry into a connected, agile and innovative organization

* Heavy manufacturing, Worldsteel

1 For the seventh consecutive year, Aperam S America was selected as one of the best companies to work for by Guia Você S/A, in

30

recognition of our work on employee health and wellbeing

ESG summary

Environment: A best in class footprint²

CriteriaTarget 2030Aperam 2019 statusSteel industry 2017

Energy intensity*

12.1 GJ/t -5% vs 2015

13.3 GJ/t +4% !

CO2 intensity**

0.45 t/t

-15% vs 2015

0.48 t/t

-11%

0.95 t/t²

Water consumption

5.9 m3 /t -40% vs 2015

11.8 m3 /t +16% !

Dust intensity

70 g/t

-70% vs 2015

84 g/t

-65%

Zero Waste target

>97% reused / recycled

94.3%

+0.8pp

Lower production volumes hurt some KPI's in 2019

We aim to exceed environmental legislation and are committed to continuous improvement

*amounts to -11% on electricity & natural gas

**Scope 1+2. An internal CO2

price of €30/t is applied to all investments. We review and adjust this if necessary to maintain

the incentive for CO2 savings

²per ton of slab

31

ESG summary

Environment: Aperam has a convincing environmental track

record and clear improvement targets. Low volumes impacted 2019

CO2 emissions (t/t crude steel)*

0.78

0.70 0.72

0.61

0.58

0.50

0.48

0.54

0.49 0.49 0.48

0.48

0.45

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2030

Energy consumption (GJ/t crude steel)

14.7

14.0

13.8 14.0 13.6 13.6

13.0 12.8

13.3

12.8

12.4

12.5

12.1

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2030

Dust emissions (g/t crude steel)

Water intake (m3/t)

211

213

240

242

11.5 10.7 10.2 10.1 10.1

9.9

11.8

153

5.9

89

84

70

2013 2014 2015 2016 2017 2018 2019

2030

2013 2014 2015 2016 2017 2018 2019

2030

target

Actual

*scope 1 & 2

32

ESG

Aperam's CO2 footprint: Aperam has a industry leading CO2 footprint and produces the greenest stainless steel globally

CO2 t 47.0

Europe

/t*

Aperam has a convincing track record and clear improvement targets set for 2030

Raw materials

Electricity

EU Taxonomy**

Threshold 0.352 t/t

EU ETS (= scope 1)

Stainless scrap

APAM 0.28 t Co2 / t

Ferronickel

Consumables:

Electricity

Ferrochrome

Graphide Electrode

Nat. gas

Electricity

Electricity

Other alloys

Natural gas

Nat. gas

Electric Arc

Molten

Slab

Slab

Furnace

Slab

Hot

HR

Cold

CR

Annealing &

Furnace

metal

Caster

rolling

band

rolling

band

Pickling

Brazil /t* CO2 t 40.0

Raw materials

FSC certified

Raw materials

Iron ore

SS scrap

Consumables

forest

Limestone

Ferronickel

Graphite Electrode

Wood

Ferrochrome

Electricity

Other alloys

Charcoal

Charcoal

Blast

Electric Arc

burning

Furnace

Furnace

Co2 neutral

ironPig

Molten metal

Nat. gas

Electricity

Electricity

Nat. gas

Electricity

Stainless

Raw materials

Metallurgy

metal

Caster

rolling

band

rolling

band

& Pickling

Other alloys

Ferronickel

Ferrochrome

Second

Molten

Slab

Slab

Furnace

Slab

Hot

HR

Cold

CR

Annealing

Electrical

Raw materials

Silicon

Second

Molten

Slab

Slab

Furnace

Slab

Hot

HR

Cold

CR

Decarb.

Metallurgy

metal

Caster

rolling

band

rolling

band

Annealing

Nat. gas

Electricity

High temp. Annealing

Scope 1

Scope 2

Scope 3

Product

Process /

Scope 1 - All Direct Emissions from the activities of an organisation or under their control. Scope 2 - Indirect Emissions from electricity purchased and used by the

organisation. Scope 3 - All Other Indirect Emissions from activities of the organisation, occurring from sources that they do not own or control*per tonne of slab, scope 1 + 2

33

emissions

emissions

emissions

equipment

based on ISO14404 **EU Taxonomy* requires 0.352 t CO2/t scope 1+2 or 90% scrap

ESG summary

Environment: Bio Energia & recycling give Aperam a best in class climate change footprint

Aperam energy mix 2019

2%

29%37%

1%

31%

Aperam's has the smallest CO2 footprint in the industry*

CO2 t/t scope 1+2

1.0

0.5

Aperam

Stainless Industry

CO2 t/t **

Factor

4x

~2

>8

Charcoal

Natural Gas

Coke

Electricity

Other

EU industry

NPI based producers

Our sustainably cultivated forest in Brazil is a unique asset

Source: Aperam estimates & calculation, ISSF data, CRU

*Data is for austenitic HR steel, scope 1+2

**scope 1+ 2 + total raw material emissions and transport

34

ESG summary

Governance: Our leadership team

Key facts & compensation

A diverse & experienced team

  • Entrusted with day-to-day management of the Company
  • Appointed by the Board of Directors
  • Experience and industry know how
  • Average age: 49 / 6 Nationalities
  • CEO: responsible for Aperam's sustainability performance and compliance
  • CTO, is also Head of Health, Safety & Environment
  • Compensation aligned with long term interest of the Company and its stakeholders
    • Multiplier for performance related bonus includes H&S factors (1 year plan)
    • Long term incentive plans based on EPS and TSR evolution (3 year plan) vs relevant peers and index

*

Aperam benefits from the experience and industry know-how of its Leadership Team

*also responsible for environmental & industrial risk on a group wide basis

35

ESG summary

Governance: Board of directors and shareholder structure

Principles of our board

Shareholder structure

  • Responsible for strategic direction and oversight of the business, as well as for appointing senior management
  • Election subject to shareholder approval. Directors are elected for 3 year terms
  • Chairman: Mr. Lakshmi N. Mittal
  • 7 members with a majority of independent directors (4 independent directors out of 7)
  • 2 Board Committees composed of 100% of independent directors and reporting to the Board of Directors:
    • Audit and Risk Management Committee covering also ESG matters; Chair: Ms. Bernadette Baudier
    • Remuneration, Nomination and Corporate Governance Committee; Chair: Mr. Alain Kinsch

8%

19%

7%

4%

5%

8%

6%

4%

39%

N America

France

Benelux

UK

Other Europe

Spain

Mittal Family

Treasury shares

Not identified

Diverse skills, backgrounds, knowledge, experience, geographic locations, nationalities and

gender are reflected on our board and ensure effective governance

Source: IPREO, Bloomberg May 2019

36

Business overview

Musée des Confluences in Lyon, France. Architect: Coop Himmelb(l)au © Sergio Pirrone. Stainles steel used: Aperam 316L/1.4404 with Uginox Me

37

Group segments & corporate structure

Business overview

Group: Segments & corporate structure*

Stainless & Electrical Steel

2.5mt production capacity

1.7mt of gross shipments

73% of group adj EBITDA

One of the largest global producers of stainless steel**

Europe:

2 Electric Arc Furnaces use scrap as major input material

Stainless steel flat product output South America:

2 blast furnace use iron ore and charcoal produced from own forests

2 EAF use recycled scrap

Stainless flat products & electrical steel

Services & Solutions

706kt of gross shipments

13% of group adj EBITDA

Aperam sells and distributes its products through the S&S segment, which provides value added and customized steel solutions through further processing to meet specific customer requirements. S&S core activities:

  • direct sale of Aperam products to end users
  • distribution of Aperam and third party material
  • transformation services, according to specific customer requirements

Alloys & Specialties

40 kt production capacity 36kt of gross shipments 14% of group adj EBITDA

Fourth largest producer of nickel alloys globally

Aperam specializes in nickel alloys and specific stainless steels

Our products take the form of bars, semis, cold-rolled strips, wire and wire rods, and plates, and are offered in a wide range of grades

High value items that are often sold on a kg basis

Aperam covers the complete stainless value chain with industry leading assets

in Europe and Brazil

*gross shipments and adj EBITDA are before eliminations

39

** By production capacity

Business overview

Group: Segments & corporate structure II

Production assets in Europe and South America

Châtelet, Belgium

Genk, Belgium

Location & facts

Location & facts

Melt shop

Melt shop

Hot rolling mill

Cold-rolling mill

Finishing

Capacity

Capacity

Slabs

1,000 kt Slabs

1,000 kt

HSM

2,800 kt

2 m wide capacity

316 and duplex

grades

Cold-rolling

700 kt

Gueugnon, France

Location & facts Cold-rollingmill Finishing

Capacity

Finished

400 kt

Specialized in Bright Annealing (BA) products and stabilized ferritics.

Isbergues, France

Location & facts Cold-rollingmill Finishing

Capacity

Finished

350 kt

LC2i: integrated line

Timóteo, Brazil

Imphy, France

Location & facts

Location & facts

Melt shop

Melt shop

Cold-rolling mill

Cold-rolling mill

Finishing

Finishing

Capacity*

Capacity

Slabs

900kt

EAF

60kt

Stainless finished

1 VIM, 2 VAR,

350kt

Rotary continuous

Electrical CR:

Caster for long

Grain oriented

60kt

products

Non GO

170kt

Wire hot rolling mill:

SP Carbon

200kt

40kt

*some

lines

are

flexibly

6 Cold rolling mills

used

for

different

products

40

Business overview

Group: Segments & corporate structure III

Aperam's value chain

Slabs

Hot rolling

Cold rolling / Finishing

Isbergues

Châtelet

0.35Mt

1.0Mt

Châtelet

Stainless

Genk

2.8Mt

0.7Mt

flat

Genk

1.0Mt

Gueugnon

0.4Mt

Electrical

Timoteo

Timoteo

0.18Mt

Electrical flat

0.9Mt

0.88Mt

Stainless

Stainless flat

0.35Mt

Imphy

Chatelet

Ni alloys &

Imphy

0.06Mt

specialties

Imphy

Service

Direct

Sale

Service

Center

Direct

Sale

Service

Steel service

Center

centers

Transformation

Direct

Sale

Service

Center

Direct

Sale

Service

Center

customers End

Stainless & Electrical Steel Europe

Alloys & Specialties

Stainless & Electrical Steel South America}Stainless & Electrical Steel

Services & Solutions

41

Business overview

Group: A balanced risk profile and customer structure

Shipment split by segment 2019*

Adj EBITDA contribution by segment 2019*

13%

29%

S&E Europe

S&E Europe

45%

S&E S. America

14%

42%

S&E S. America

1%

A&S

A&S

S&S

S&S

25%

31%

Revenue by region 2019

Asia &

Brazil

7%

Africa

US

Europe

Other Americas

66%

Germany

27%

Italy

Americas

France

Other Europe

Revenue by customer industry 2019

5%

Building & Construction

12%

24%

Catering & Appliances

General Industry

16%

Automotive

22%

Energy & Chemicals

21%

Transport

* Calculated on segmental data before eliminations

42

Business overview

Group: Self help has transformed the group. Higher cash generation and profitability even in adverse market conditions

Adj EBITDA by segment (EURm)

Shipment by segment (kt)

600

559

504

451

455

500

368

400

340

300

168

220

200

100

-

2012

2013

2014

2015

2016

2017

2018

2019

S&E

A&S

S&S

Group Adj. EBITDA

1,886

1,917

1,936

1,972

1,813

1,786

1,683

1,728

2012

2013

2014

2015

2016

2017

2018

2019

S&E

A&S

S&S

Group Net Shipments

Adj EBITDA/t (EUR)

1,500

1,000

289

237

256

203

239

190

500

127

100

-

2012

2013

2014

2015

2016

2017

2018

2019

S&E

A&S

S&S

Group Adj. EBITDA/t

Adj EBITDA margin

11.8%

12.5%

10.6%

10.8%

8.9%

8.0%

5.7%

4.1%

2012

2013

2014

2015

2016

2017

2018

2019

S&E

A&S

S&S

Group adj EBITDA margin

43

Stainless & Electrical Steel

Europe

Business overview

S&E Steel Europe: Self-help measures yield a robust operational performance despite a price and volume squeeze

Major adj EBITDA contributor 2019

Robust profitability capitalizing on restructuring

13%

S&E Europe

14%

42%

S&E S. America

A&S

S&S

31%

11.1%

12.8%

9.1%

8.8%

352

6.7%

6.0%

2.7%

258

260

0.5%

220

153

150

12 57

2012

2013

2014

2015

2016

2017

2018

2019

Adj. EBITDA (m€)

Adj. EBITDA margin (%)

European shipments reflect import pressure, destocking

and weak real demand

European stainless steel demand came under cyclical pressure in 2019

6.0

4.0

Pre-crisis level (2007)

994 1,004 1,082

1,190 1,241 1,253 1,267 1,113

2.0

0.0

2012 2013 2014 2015 2016 2017 2018 2019

EU S&E Shipments (kt)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Stainless European ap. consumption (mt - slab equivalent)

45

Business overview

S&E Steel Europe: Leverage Aperam's unique position

European stainless steel industrial footprint

Aperam key competitive advantage

Finishing line

Steel making

Sourcing

Outokumpu

The only integrated upstream

operations in the heart of Europe

Superior access to scrap supply

Best location to serve the biggest

consumption areas of Europe

Aperam

AcerinoxTerni

Logistics

Production

Efficient logistics between sites

results in industry leading working

capital management

Full range of products with flexible

capacity

Increase scrap recycling to minimize

environmental impact

Aim to become cost leader in the key

products

Located in the heart of European scrap generation and stainless consumption

46

EU trade action update

Further actions against unfair trade have been initiated in

addition to the existing Safeguard

NEW

Safeguard

Anti-dumping (AD)

Countervailing duties (CVD)

affected

Countries Impact MeasureAim

  • Maintain traditional trade flows
  • Volume focused
  • All countries globally (if not explicitly exempt)
  • Effective since February 2019 (Indonesia included from 1 Oct. 2019)
  • HR quota 354kt pa* CR quota 836kt pa*
  • Largest importers have a country quota. A residual quota for all others
  • 25% duty for shipments > quota
  • HR imports: FY 2018: 470 kt

FY 2019: 499 kt

  • CR imports: FY 2018: 1,044 kt FY 2019: 931 kt
  • Duty on imports that are priced below fair market value**
  • Price focused
  • Hot rolled: preliminary duties set against China, Indonesia, Taiwan
  • since 8 April 2020
  • Hot rolled duty on every tonne entering the European market

China: 14.5% - 18.9%

  • Indonesia: 17.0%
  • Taiwan: 6.0% - 7.5%
  • LTM HR share of imports: China 59%, Indonesia 13%, Taiwan 8%
  • Q1 2020 HR imports from affected countries - 76% qoq
  • Neutralize effect of subsidies that benefit certain imports
  • Price focused
  • Hot rolled: Case opened by EU commission in October 2019 against China, Indonesia
  • Decision expected by mid 20202
  • Hot rolled: duty to be determined according to unfair advantage granted
  • Registration of HR imports from China & Indonesia since 25 Jan
  • HR: impact to be determined
  • LTM HR share of imports: China 59%, Indonesia 16%

Existing AD on cold rolled against China (25.3% duty) and Taiwan (6.8% duty) since 2015:

China CR import share dropped from 32% in 2014 to negligible post AD was imposed

We expect new measures against unfair trade to become effective during Q2

*Effective quota from 1 July 2019 to 30 June 2020. Quota relaxes by 3% on 1 July 2020 / annual for country quotas, quarterly for residual / SS Hot Rolled country quotas:

47

China, S. Korea, Taiwan, USA

SS CR: country quotas S. Korea, Taiwan, India, USA, Turkey, Malaysia, Vietnam **could be difference between domestic market price

and export price or cost based

2preliminary duties

Stainless & Electrical Steel

South America

Business overview

S&E Steel South America: A flexible, agile and highly profitable asset

A significant adj EBITDA contributor 2019 despite

Earnings reflect weak domestic economic environment

demanding conditions

13%

S&E Europe

14%

42%

S&E S. America

A&S

S&S

31%

17%

19%

14%

17%

13%

176

13%

13%

167

162

8%

120

113

118

109

82

2012

2013

2014

2015

2016

2017

2018

2019

Adj. EBITDA (m€)

Adj. EBITDA margin (%)

Stable shipments due to mix of domestic and exports

Weak economic growth continues to weigh on stainless steel consumption in Brazil

617

649

654

652

656

638

656

610

0.5

0.4

0.4

0.3

0.3

0.2

Pre-crisis level (2014)

2012 2013 2014 2015 2016 2017 2018 2019

Brazil A&S shipments (kt)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Stainless BRA ap. consumption (mt - slab equivalent)

49

Business overview

S&E Steel South America: Our Brazil asset is unique - the only stainless steel producer in South America

Aperam South America footprint

Caracas (Venezuela)

Colombia

Ecuador

Peru

Timoteo

Sumaré

Campinas

Ribeirão Pires

Caxias do Sul

Montevideo (Uruguay)

Buenos Aires (Argentina)

Melt shop, Hot/Cold rolling

Service Centers

Tubes mills and Cutting centers

Rep offices, sales agencies

Upstream integration

Cost competitive & environmentally

friendly charcoal from own

Bio Energia cultivated forests is used to heat the blast furnace

Range of products

A complete range of stainless steel

Stainless Steel grades (austenitics, ferritics, duplex, martensitics)

Grain oriented

Grain oriented electric steel* for

use eg in stationary machines eg

electrical steel

transformers

Non grain

Non-grain oriented electric steel**

oriented

for use in electric motors and

electrical steel

generators

Special

Alloyed, high, medium & other

special carbon steel are completing

carbon steel

product portfolio

The sole flat stainless steel producer in South America

with a complete range of products, and a flexible production set-up

*Grain oriented steel (GO & HGO) has the magnetic properties optimized in one direction during hot rolling.

50

**Non-grain oriented steel (NGO) has identical magnetic properties in all directions

Business overview

S&E Steel South America: Brazil can switch flexibly between products and markets to maximize profitability

Key pillars

Aperam's asset optimization in South America

Portfolio management

Domestic share gains

Cost competitive

  • A wide range of products and geographical sales enables further optimization of capacity utilization and product mix
  • Upgrade product portfolio: Develop new grades with higher value added (stainless substitution, HGO)
  • Preferred supplier plan with best in class deliveries
  • Performant logistics with integrated service centers
  • Support stainless steel usage in S. America
  • Sustain the cost benchmark in its main markets
  • Leadership Journey® on-going to improve productivity
  • Continuous improvement to at least compensate the inflation

Flexible product mix

Flexible regional mix

Exports

meltTimoteoshop

capacity900kt

Stainless steel

(incl S America)

Electrical steel

• Non grain oriented

Brazilian

• Grain oriented

High grain oriented

share gains

Special Carbon

  • Running Brazilian asset at optimal utilizationrate
  • On-goingdebottleneckingof the cold rolling operations
  • UpgradeGrain Oriented products via the development of HGO
  • Continuous margin optimization between product mixand deliveries in South America

Sustained solid double digit adj EBITDA margin proves the flexibility & agility

of our operations in Brazil

51

Business overview

S&E Steel South America: Brazil offers ample opportunity for both cyclical and structural growth

Brazil consumes substantially below the global trend line

10

China

(kg)

per capita

8

Poland

consumption

6

EU

Vi etnam

Asia

Thailand

World

4

Turkey

N America

CR

Malaysia

Stainless

2

S. Africa

India

S.E Asia

Mexico

S. Asia

Indonesia

Brazil

Russia

Egypt

L America

Romania

UkraineIran

Middle East

0

Africa

Argentina

1,000

6,000

11,000

16,000

GDP per capita (USD)

Brazil opportunities

  • Short term: reviving the normal investment cycle in the economy. Large scale infrastructure & energy projects have been missing
  • Medium term: Tax reform, followed by a change of import duties Reforms that put our customers in a position to compete on a global level will drive volume and yield a positive mix effect
  • Long term: Higher standard of living will drive stainless steel consumption. Currently Brazil at 1.4kg / capita vs China >9kg/capita and a GDP implied consumption of >3.5kg/capita

Examples of stainless steel solutions in the Agrobusiness:

Equipment for the

Equipment for

Slats of metallic

transport and

washing gases

conveyor belt for

sterilization of Palm

from biomass

the transport of

fruits

burning

sugarcane

Largest global producer of:

Largest global exporter of:

Coffee

Orange

Meat

Poultry

Sugarcane and sugar

Sugar

Ethanol

Brazil has tremendous potential for volume & mix improvement

Source: IMF, CRU, Aperam

52

Business overview

S&E Steel South America: Brazilian protections against unfair market behaviour

Type of products

Import duties status

Anti-dumping status

Stainless Steel Flat

China, Taiwan

Normal import duties are 14%

AD duties starting October 4th, 2019 for 5 years

Products

China USD175/t - USD629/t, Taiwan USD93/t - USD705/t

China and Taiwan: AD duties since July 29th, 2013 for 5 years and up

Stainless Steel

Normal import duties are 14%

to USD911/t. Renewal investigation launched on July 16th, 2018

Welded Tubes

Malaysia, Thailand and Vietnam: AD duties starting June 13, 2018, for

5 years from USD367/t up to USD888/t

China, South Korea, Taiwan, Germany: AD duties from 15 July 2019

Electrical steel -

Normal import duties are 14%

for 5 years from USD90/t - USD166.3/t

Non Grain Oriented

Re-evaluation after 12 months

Electrical steel -

Normal import duties are 14%

Grain Oriented

Tariff measures to support fair market environment in Brazil

Sources: SBB/Platts, Steelfirst

53

Services & Solutions

Business overview

Services & Solutions: stronger partnership with customers enhances margins

A significant adj EBITDA contributor 2019 despite trough

A profitable Services & Solutions thanks to its focus on

conditions

service oriented customers

100

19,000

13%

80

17,000

83

15,000

S&E Europe

65

60

70

13,000

14%

42%

S&E S. America

40

43

45

11,000

A&S

38

20

9,000

16

S&S

0

7

7,000

31%

2012

2013

2014

2015

2016

2017

2018

2019

EBITDA €m

Nickel LME price (RHS)

Increasing focus on downstream value added services

and solutions

A majority of "in house" exposure to end users to best serve their needs and provide best services & solutions

799

818

819

721

746

706

Aperam

679

Stainless

Aperam

661

End-

&

Services &

users

Solutions

Electrical

2012

2013

2014

2015

2016

2017

2018

2019

Steel

Independent

S&S shipments (kt)

distributors

and other

55

Business overview

Services & Solutions: Adding value downstream

Services & Solutions value chain

Input

- - - - - - Service Centers - - - - - -

Hot rolled coil /

Cutting/

Polishing

Packaging

Cold rolled coil

Slitting

Brushing

&

Slit

Slit /

Machined

Square

deburred

deburred

- - - - - - - Tube making - - - - - - -

Forming

Expanding

Hot rolled coil /

Welding

Cutting

Packaging

Cold rolled coil

Pickling

Bending

Annealing

Logistics Customer

Round

Logistics Customer

56

Alloys & Specialties

Business overview

Alloys & Specialties: attractive niche market with high margins

Aperam's high value-added segment 2019

13%

S&E Europe

14%

42%

S&E S. America

A&S

S&S

31%

High profitability due to end products & end user

orientation

1,191

1,219

1,264

1,147

1,407

1,278

1,385

43

44

44

864

46

46

50

39

26

2012

2013

2014

2015

2016

2017

2018

2019

Adj. EBITDA (m€)

Adj. EBITDA/t

Stable shipments but markedly improved mix

36

36

35

34

30

33

36

36

A&S shipments (kt)

Nickel Alloys a growing and premium niche market

400

350

CAGR 2.7% pa

300

250

kt

200

150

100

50

0

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

Source: SMR, Aperam

58

Business overview

Alloys & Specialties: attractive niche market with high margins

Aperam is global top player in nickel alloys and strong in

long products (kt)

Aperam Alloys & Specialties geographical footprint

Rescal

Amilly

Imhua

Wire

The magnetic parts

company

drawing

n

n

n

n

n

Imphy

ICS (JV)

Melt shop, wire rod mill,

Diversification into

cold rolling,bars, R&D

industrial clads

Alloys & Specialties sales by industry 2019

Marine

6%

18%

Oil & Gas

16%

Chemical industry /

welding / environment

Aerospace

6%

33%

E&E

19%

Automotive /

Transportation

Others

Major products

Downstream Upstream

Source: SMR, Aperam

59

*PCC (Special Metals) NYK (Nippon Yakin Kogyo)

Business overview

Alloys & Specialties: Specialty alloys add stability and profitable growth element

Innovation is key for premium

…to cater for highly sophisticated

…yielding growth opportunities and

specialties…

and evolving needs…

margin stability

R&D intensive industry

High growth end market applications

Less exposed to commodity cycles

Substantial market entry barriers

"Kilogram" market: unique products

Cost of raw materials passed through to

Benchmark customers in advanced

designed to enable precision and high-

customers

industries require tailored, certified and

tech solutions globally

Long-standing client relationships

highly sophisticated solutions

Highly diversified end-markets

Good visibility on volumes with high

proportion of recurring revenue

Key R&D figures (based on 2019)

Cooperation contracts

26

Total registered patents

341

Sales of new products

14%

Key end-markets / application types

Heating

LNG tankers,

resistance,

special welding

watches

Gearbox,

fasteners,

Gas turbines,

turbo

heat

chargers

exchangers

Smart

Fasteners,

phones,

landing gears,

LED TV,

Electrical

turbine

seals

safety,

engines

sensors

EBITDA margins by Aperam division

14% 12% 10% 8% 6% 4% 2% 0%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

S&S

A&S

S&E

A very profitable, growing and stable niche market

60

Appendix

Résidence Hôtelière du Rail, Montparnasse station, Paris - France - aasb_agence d'architecture suzelbrout - Executed using grade 304L, with Uginox Mat finish

Appendix

Key stainless product categories by alloy content

Martensitic

Ferritic (400 series)

<0.1%

<0.1%

17%

10.5-

30%

<1.5%

<4.5%

Car exhausts, conveyor chains, cooking utensils,

Cutlery, cutting tools, construction tools…

boilers, electrical appliances, trim, dishware,

heating, tanks, tubes…

Austenitic (300 series)

<0.1%

16-21%

6-26%

<7%

Boiler, aeronautics, electronic components, railway equipment, tubes, chemical tanks, food vats, marine applications, furnace, heating…

Austenitic with Manganese (200 series)

4-16%<1%

15-19%

1-6%

<2%

Asphalt tankers, tubes, food containers, silos,

conveyor chains, safety soles…

Austeno-ferritics (Duplex)

<1%

21-26%

1-7% <4%

Oil & gas equipment, papermaking, pulp,

desalination sector, chemical plants…

By weight Iron Molybdenum, Al, Cu Nickel

Chromium

Manganese Carbon

62

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Disclaimer

Aperam SA published this content on 06 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2020 05:23:01 UTC