Jacquet Metals : Activity report as of March 31st, 2022

2022

Activity report

March 31, 2022

A European leader in the distribution of specialty steels

Table of content

pages

• 04 Press release dated May 11, 2022 - First quarter 2022 results

• 09 The Group

• 10 1 A leading distributor of specialty steels

• 11 2 Brand management

• 12 3 Stock market information and shareholder structure

• 13 4 Financial communication schedule

• 14 Activity report - March 31, 2022

• 15 1 Group's sales and earnings

• 18 2 Sales and earnings by division

• 21 3 Consolidated financial position

PRESS RELEASE

First quarter 2022 results

11.05.2022 - 6.00 PM

Sales: €724m (+62.6% vs Q1 2021)

EBITDA: €102m (14% of sales) Net income (Group share): €63m

In Q1 2022, the Group benefited from an environment marked by a well oriented demand and the increase in raw materials prices.

Compared to Q1 2021, volumes sold rose +8.9% and average sale prices were +53.7% higher (+14.5% com-pared to Q4 2021).

Sales increased by +62.6% to €724 million and the gross margin by +71% to €200 million, representing 28% of sales, compared to 26% a year earlier.

At the beginning of Q2, market conditions remained favorable with however an inflexion in volumes sold.

In this context, EBITDA as of March 31, 2022 amounted to €102 million, representing 14% of sales versus 7.8% as of March 31, 2021.

Net income (Group share) amounted to €63 million compared to €16 million in 2021 a year earlier.

In Q1, operating working capital increased and represented 28.5% of sales at the end of March 2022 com-pared to 26.4% at the end of December 2021.

During the period, the Group generated operating cash flow of €2 million and strengthened its financing structure with a shareholders' equity of €562 million and a net debt to equity ratio (gearing) of 33% (35% at 2021 year-end).

Capital expenditures amounted to €6 million in Q1.

In addition, in early May the Group acquired the Canadian company Fidelity PAC Metals (annual sales: €33 mil- lion) specializing in master distribution of stainless steel long products and operating 3 logistics centers in Toronto, Montreal and Vancouver. Fidelity PAC Metals will strengthen the JACQUET division's positioning in North America.

The Board of Directors will propose a dividend of €1.00 per share to the General Meeting of shareholders on June 24, 2022.

On May 11, 2022, the Board of Directors, chaired by Éric Jacquet, approved the consolidated financial statements for the period ended March 31, 2022.

€m	Q1 2022	Q1 2021
Sales	724	445
Gross margin	200	116
% of sales	27.6%	26.1%
EBITDA 1	102	35
% of sales	14.0%	7.8%
Adjusted operating income / (loss) 1	90	28
% of sales	12.4%	6.2%
Operating income / (loss)	90	27
Net income / (loss) (Group share)	63	16
1 Adjusted for non-recurring items.
Q1 2022 Results

Consolidated sales amounted to €724 million, up +62.6% compared to March 31, 2021, including the following effects:

- volumes: +8.9%;

- prices: +53.7% (+14.5% vs Q4 2021).

Gross margin amounted to €200 million representing 27.6% of sales compared to €116 million as of March 31, 2021 (26.1% of sales).

Current operating expenses* amounted to €98 million (13.5% of sales) compared to €82 million a year earlier (18.4% of sales).

* excluding depreciation, amortization and provisions €(12) million.

EBITDA amounted to €102 million and represented 14% of sales compared to €35 million as of March 31, 2021 (7.8% of sales).

Adjusted operating income amounted to €90 million (12.4% of sales) compared to €28 million as of March 31, 2021 (6.2% of sales).

In this context, net income (Group share) amounted to €63 million compared to €16 million in Q1 2021.