November 12, 2021 – Third quarter 2021 results

Third quarter 2021 results1

"Third set of record earnings in a row"

Luxembourg, November 12, 2021 (07:00 CET) - Aperam (referred to as "Aperam" or the "Company") (Amsterdam, Luxembourg, Paris, Brussels: APAM, NYRS: APEMY), announced today results for the three months ended September 30, 2021.

Highlights

• Health and Safety: LTI frequency rate of 1.8x in Q3 2021 compared to 2.3x in Q2 2021
• Steel shipments of 421 thousand tonnes in Q3 2021, 12% decrease compared to steel shipments of 481 thousand tonnes in Q2 2021
• Adj EBITDA of EUR 278 million in Q3 2021, compared to EUR 262 million in Q2 2021
• Net income of EUR 201 million in Q3 2021, compared to EUR 213 million in Q2 2021
• Basic earnings per share of EUR 2.53 in Q3 2021, compared to EUR 2.67 in Q2 2021
• Cash flow from operations amounted to EUR 110 million in Q3 2021, compared to EUR 115 million in Q2 2021
• Free cash flow before dividend and share buy-back of EUR 90 million in Q3 2021, compared to EUR 87 million in Q2 2021
• Net financial debt of EUR 59 million as of September 30, 2021, compared to EUR 1 million as of June 30, 2021

Strategic initiatives

• Leadership Journey​®2 Phase 4:​Gains reached EUR 11 million in Q3 2021. Aperam realized cumulative gains of EUR 34 million in the first 9 months of the program. This compares to cumulative target gains of EUR 150 million over the period 2021 to 2023.
• Completion of the 2021 share-buyback: 1.96 million shares have been bought back for EUR 99.96 million. Number of
  issued shares less treasury shares as of September 30, 2021: 77.90 million shares.
• ResponsibleSteel™: Aperam Stainless Europe operations have been successfully certified to be operating at the ResponsibleSteel™ Standard by independent auditors.

Prospects

• Adj EBITDA in Q4 2021 is expected at a slightly higher level versus Q3 2021
• We guide for slightly higher free cash flow in Q4 2021

Timoteo Di Maulo, CEO of Aperam, commented:

"In Aperam's seasonal trough I am happy to present another set of record results this year - the third in a row. Market trends remain positive. Strong demand expresses itself in a solid order book and supportive pricing combined with the first results from our Leadership Journey​® Phase 4. We expect a slightly higher Q4 result despite the growing impact from higher energy prices and a seasonally lower quarter in Brazil and we look with confidence into the first quarter."

"Regarding sustainability I am proud that Aperam as the first stainless steel company received certification from ResponsibleSteelTM. This demonstrates our sound practices in areas such as health & safety, supply chains, governance and environment matters."

1

Financial Highlights (on the basis of financial information prepared under IFRS)

(in millions of Euros, unless otherwise stated)	Q3 21	Q2 21	Q3 20	9M 21	9M 20
Sales	1,257	1,272	841	3,706	2,708
Operating income	241	235	33	616	81
Net income attributable to equity holders of the parent	201	213	24	530	74
Basic earnings per share (EUR)	2.53	2.67	0.30	6.65	0.93
Diluted earnings per share (EUR)	2.53	2.66	0.30	6.63	0.93
Free cash flow before dividend and share buy-back	90	87	55	235	107
Net Financial Debt (at the end of the period)	59	1	111	59	111
Adj. EBITDA	278	262	65	715	184
Exceptional items	-	9	-	9	-
EBITDA	278	271	65	724	184
Adj. EBITDA/tonne (EUR)	660	545	150	513	148
EBITDA/tonne (EUR)	660	563	150	519	148
Steel shipments (000t)	421	481	432	1,395	1,246

Health & Safety results

Health and Safety performance based on Aperam personnel figures and contractors' lost time injury frequency rate was 1.8x in the third quarter of 2021 compared to 2.3x in the second quarter of 2021.

Financial results analysis for the three-month period ending September 30, 2021

Sales for the third quarter of 2021 decreased by 1% to EUR 1,257 million compared to EUR 1,272 million for the second quarter of 2021. Steel shipments decreased from 481 thousand tonnes in the second quarter of 2021, to 421 thousand tonnes in the third quarter of 2021.

EBITDA increased during the quarter to EUR 278 million from EUR 271 million (including exceptional gains of EUR 9 million made of PIS/Cofins tax credits related to prior periods recognised in Brazil) for the second quarter of 2021. The improvement was mainly driven by Brazil and higher inventory valuation gains compared to the previous quarter.

Depreciation and amortisation was EUR (37) million for the third quarter of 2021.

Aperam had an operating income for the third quarter of 2021 of EUR 241 million compared to an operating income of EUR 235 million for the previous quarter.

Financing costs, net, including the FX and derivatives result for the third quarter of 2021 were positive at EUR 10 million, including cash cost of financing of EUR (1) million.

Income tax expense for the third quarter of 2021 was EUR (49) million.

The Company recorded a net income of EUR 201 million for the third quarter of 2021.

2

Cash flows from operations for the third quarter of 2021 were positive at EUR 110 million, despite a working capital increase of EUR 175 million. CAPEX for the third quarter was EUR (21) million.

Free cash flow before dividend and share buyback for the third quarter of 2021 amounted to EUR 90 million.

During the third quarter of 2021, the cash returns to shareholders amounted to EUR 135 million, consisting of EUR 100 million of share buy-back and EUR 35 million of dividend. Total cash returned to shareholders during the first nine months of 2021 amounted to EUR 211 million consisting of EUR 105 million of share buy-back3 and EUR 106 million of dividend (of which EUR 1 million paid to non-controlling interests).

Operating segment results analysis

Stainless & Electrical Steel (1)

(in millions of Euros, unless otherwise stated)	Q3 21	Q2 21	Q3 20	9M 21	9M 20
Sales	1,065	1,078	664	3,120	2,123
EBITDA	226	212	42	578	138
Depreciation & amortisation	(31)	(30)	(26)	(91)	(84)
Operating income	195	182	16	487	54
Steel shipments (000t)	409	472	417	1,364	1,207
Average steel selling price (EUR/t)	2,525	2,209	1,536	2,219	1,699

1. Amounts are shown prior to intra-group eliminations

The Stainless & Electrical Steel segment had sales of EUR 1,065 million for the third quarter of 2021. This represents a 1% decrease compared to sales of EUR 1,078 million for the second quarter of 2021. Steel shipments during the third quarter were

409 thousand tonnes, a decrease of 13% compared to shipments of 472 thousand tonnes during the previous quarter. Volumes in Europe decreased seasonally while volumes in Brazil normalized from an extremely high level in the second quarter. Average steel selling prices for the Stainless & Electrical Steel segment increased by 14% compared to the previous quarter.

The segment generated EBITDA of EUR 226 million for the third quarter of 2021 compared to EUR 212 million for the second quarter of 2021. Profitability increased due to higher prices, and higher inventory valuation gains which compensated lower volumes and higher input costs.

Depreciation and amortisation expense was EUR (31) million for the third quarter of 2021.

The Stainless & Electrical Steel segment had an operating income of EUR 195 million for the third quarter of 2021 compared to an operating income of EUR 182 million for the second quarter of 2021.

3

Services & Solutions(1)

(in millions of Euros, unless otherwise stated)	Q3 21	Q2 21	Q2 20	9M 21	9M 20
Sales	561	542	372	1,634	1,132
Adjusted EBITDA	53	50	10	148	24
Exceptional items	-	9	-	9	-
EBITDA	53	59	10	157	24
Depreciation & amortisation	(3)	(3)	(3)	(9)	(10)
Operating income	50	56	7	148	14
Steel shipments (000t)	171	189	165	568	483
Average steel selling price (EUR/t)	3,167	2,761	2,184	2,769	2,248

1. Amounts are shown prior to intra-group eliminations

The Services & Solutions segment had sales of EUR 561 million for the third quarter of 2021, representing an increase of 4% compared to sales of EUR 542 million for the second quarter of 2021. For the third quarter of 2021, steel shipments were 171 thousand tonnes compared to 189 thousand tonnes during the previous quarter. The Services & Solutions segment had higher average steel selling prices during the period compared to the previous period.

The segment generated EBITDA of EUR 53 million for the third quarter of 2021 compared to EBITDA of EUR 59 million, including EUR 9 million in Brazil due to PIS/Cofins tax credits related to prior periods, for the second quarter of 2021. Higher prices and higher inventory valuation gains did not fully compensate for the omission of the exceptional PIS/Cofins gains and seasonally lower volumes.

Depreciation and amortisation was EUR (3) million for the third quarter of 2021.

The Services & Solutions segment had an operating income of EUR 50 million for the third quarter of 2021 compared to an operating income of EUR 56 million for the second quarter of 2021.

Alloys & Specialties(1)

(in millions of Euros, unless otherwise stated)	Q3 21	Q2 21	Q3 20	9M 21	9M 20
Sales	112	132	111	369	408
EBITDA	11	16	10	39	30
Depreciation & amortisation	(2)	(2)	(3)	(6)	(7)
Operating income	9	14	7	33	23
Steel shipments (000t)	7	8	7	22	24
Average steel selling price (EUR/t)	16,745	15,039	16,320	16,275	16,314

1. Amounts are shown prior to intra-group eliminations

The Alloys & Specialties segment had sales of EUR 112 million for the third quarter of 2021, representing a decrease of 15% compared to EUR 132 million for the second quarter of 2021. Steel shipments decreased by 23% during the third quarter of 2021 at 7 thousand tonnes. Average steel selling prices were higher during the quarter.

The Alloys & Specialties segment achieved EBITDA of EUR 11 million for the third quarter of 2021 compared to EUR 16 million for the second quarter of 2021. The EBITDA decrease was mainly driven by lower volumes.

Depreciation and amortisation expense for the third quarter of 2021 was EUR (2) million.

4

The Alloys & Specialties segment had an operating income of EUR 9 million for the third quarter of 2021 compared to an operating income of EUR 14 million for the second quarter of 2021.

Recent developments during the quarter

• On August 12, August 25 and September 13, 2021, Aperam announced shareholding notifications by M&G plc for respectively crossing downwards, upwards, and downwards the 5% voting rights threshold with reference to Transparency Law.
• On September 23, 2021, Aperam announced that its Stainless Europe operations had been successfully certified to be operating at the ResponsibleSteel™ Standard by the independent auditors AFNOR. The ResponsibleSteel™ initiative is the first global sustainability certification programme for the steel sector and its certification follows a stringent audit of the company's practices. Aperam became the first stainless steel company to earn a ResponsibleSteel™ certification.
• On September 28, 2021, Aperam announced the completion of its share buyback program previously announced on July 30, 2021. In aggregate, 1,959,592 shares were bought under this program, representing an equivalent amount of EUR 99.96 million.

Investor conference call / webcast

Pre-recorded management comments are available as from publication of this earnings release on our website at www.aperam.com, section Investors > Reports & Presentations > Quarterly results > Q3-2021 (Link).

Aperam management will host a conference call / webcast for members of the investment community to discuss the third quarter

2021 financial performance at the following time:

Date	New York	London	Luxembourg
Friday,	08:00 am	01:00 pm	02:00 pm
November 12, 2021

Link to the webcast:https://channel.royalcast.com/landingpage/aperam/20211112_1/

The dial-in numbers for the call are: France : [phone]; USA: [phone]; UK: [phone]

The conference password is Aperam.

Contacts

Corporate Communications / Laurent Beauloye: [phone]; [e-mail]

Investor Relations / Thorsten Zimmermann: [phone]; [e-mail]

About Aperam

Aperam is a global player in stainless, electrical and specialty steel, with customers in over 40 countries. The business is organised in three primary operating segments: Stainless & Electrical Steel, Services & Solutions and Alloys & Specialties.

Aperam has a flat Stainless and Electrical steel capacity of 2.5 million tonnes in Brazil and Europe and is a leader in high value specialty products. In addition to its industrial network, spread over six production facilities in Brazil, Belgium and France, Aperam has a highly integrated distribution, processing and services network and a unique capability to produce stainless and special steels from low cost biomass (charcoal made from its own FSC-certified forestry).

In 2020, Aperam had sales of EUR 3,624 million and steel shipments of 1.68 million tonnes.

For further information, please refer to our website at www.aperam.com.

5