Aperam : 05/14/2020 Aperam BofA fireside chat

BofA Global Metals, Mining and Steel Conference

12 - 14 May 2020

The sustainable top yielding company in Euro Materials

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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 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.

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Financial policy

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

Financial Policy

Company Sustainability, Upgrade and Transformation

Value accretive growth & M&A

min IRR 15%

2020

~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.

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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

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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
• Fixed cost reduction in line with volume development. Maximum of costs are being variablized (temp. unemployment in all plants & headquarter / termination of temp. contracts).
• 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 15 - 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

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