Jacquet Metals : Activity report, as of September 30th, 2021

2021

Activity report

September 30, 2021

A European leader in the distribution of specialty steels

Table of content

pages

04 Press release November 17, 2021 - Results as of September 30, 2021

1. The Group
2. 1 A leading distributor of specialty steels
3. 2 Brand management
4. 3 Stock market information and shareholder structure
5. 4 Financial communication schedule
6. Activity report - September 30, 2021
7. 1 Group's sales and earnings

17 2 Sales and earnings by division

21	3 Consolidated financial position

PRESS RELEASE

Results as of September 30, 2021

November 17, 2021 - 6.00 PM

Sales: €1,443m (+38.9% vs September 30, 2020)

EBITDA: €145m (10.1% of sales)

Net income (Group share): €82m

Solid performances

The Group's business and profitability benefited from both a well oriented demand with sold volumes increased by +4.1% compared to September 30, 2019, and by +22.6% compared to September 30, 2020, and the increase in raw materials prices which continued during the 3rd quarter.

Compared to September 30, 2020, consolidated sales increased by +38.9% to €1,443 million (+62% in the 3rd quarter to €506 million) and the gross margin by +65.7% to €389 million, representing 26.9% of sales, compared to 22.6% a year earlier.

In this context, EBITDA amounted to €145 million, representing 10.1% of sales (12.7% in the 3rd quarter at €64 million) versus 3.1% as of September 30, 2020.

Net income (Group share) amounted to €82 million (of which €39 million in the 3rd quarter).

Having generated €50 million of operating cash flow in 9 months, the net debt to equity ratio (gearing) amounted to 25% as of September 30, 2021, compared to 28% at 2020 year-end.

The Group pursued its development and consolidation on key markets via a sustained capital expenditure policy (€24 million as of September 30, 2021).

Market conditions at the beginning of Q4 stayed in line with the Q3 trend.

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On November 17, 2021, the Board of Directors, chaired by Éric Jacquet, approved the consolidated financial statements for the period ended September 30, 2021.

€m	Q3 2021	Q3 2020	30.09.21	30.09.20
9 months	9 months
Sales	506	312	1,443	1,039
Gross margin	141	73	389	235
% of sales	27.9%	23.4%	26.9%	22.6%
EBITDA1	64	13	145	32
% of sales	12.7%	4.2%	10.1%	3.1%
Adjusted operating income / (loss) 1	54	0.1	117	(3)
% of sales	10.6%	0.0%	8.1%	-0.3%
Operating income / (loss)	54	0.2	115	(7)
Net income / (loss) (Group share)	39	(4)	82	(19)

1 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them. The report is available at jacquetmetals.com.

Results as of September 30, 2021

Consolidated sales amounted to €1,443 million, up +38.9% compared to September 30, 2020, including the following effects:

• volumes: +22.6% (Q3 +24.8%);
• prices: +16.3% (Q3 +37.2% vs Q3 2020 and +12.6% vs Q2 2021).

Gross margin amounted to €389 million representing 26.9% of sales (Q3 €141 million representing 27.9% of sales) compared to €235 million as of September 30, 2020 (22.6% of sales).

After taking into account savings of €4 million, current operating expenses* amounted to €243 million compared to €202 million as of September 30, 2020. This increase is mainly due to the growth in volumes sold and profitability.

* excluding depreciation, amortization and provisions.

EBITDA amounted to €145 million and represented 10.1% of sales (Q3 12.7%) compared to €32 million as of September 30, 2020 (3.1% of sales).

Adjusted operating income amounted to €117 million (8.1% of sales).

In this context, net income (Group share) amounted to €82 million compared to a loss of €19 million as of September 30, 2020.

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