Aperam published its Q2 2022 results

Second quarter 2022 results (1)

“Sixth Record Quarter Marks the Cyclical Peak”. Luxembourg, July 29, 2022 (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 June 30, 2022.

Highlights

• Health and Safety: LTI frequency rate of 2.1x in Q2 2022 compared to 2.4x in Q1 2022
• Shipments of 635 thousand tonnes in Q2 2022, 6% decrease compared to shipments of 673 thousand tonnes in Q1 2022
• Adjusted EBITDA of EUR 402 million in Q2 2022, compared to Adjusted EBITDA of EUR 363 million in Q1 2022
• Adjusted Net income of EUR 317 million in Q2 2022, compared to EUR 219 million in Q1 2022
• Adjusted Basic earnings per share of EUR 4.16 in Q2 2022, compared to EUR 2.83 in Q1 2022
• Cash flow from operations amounted to EUR 223 million in Q2 2022, compared to cash flow used by operations of EUR (57) million in Q1 2022
• Free cash flow before dividend and share buy-back amounted to EUR 170 million in Q2 2022, compared to EUR (103) million in Q1 2022
• Net financial debt of EUR 571 million, as of June 30, 2022, compared to EUR 666 million as of March 31, 2022

Strategic initiatives

• Leadership Journey® (2) Phase 4: Gains reached EUR 26 million in Q2 2022 and a cumulative EUR 80 million compared to target gains of EUR 150 million over the period 2021 to 2023, including from Brazil electrical steel investment by accelerating the 2025 growth plan.

Cash deployment

• Previously announced share buyback of EUR 200 million continues. First tranche of EUR 100 million completed in April 2022 and second tranche of EUR 100 million to be started following the end of the silent period for Q2 earnings release.

Prospects

• Q3 2022 Adj. EBITDA is expected at a lower level versus the record Q2 2022 base
• We guide for lower Q3 2022 net financial debt

Timoteo Di Maulo, CEO of Aperam, commented: ““We achieved the sixth consecutive set of record results despite an increasingly challenging market environment. While Brazil is stable at a high level, adverse market conditions have increased in Europe. Our focus on cash enabled us to reduce debt in Q2, ahead of the curve. We expect more positive cash flow over the coming quarters coherent with the market development. As we continue to implement our Strategy 2025, we trust our agile and resilient business model to continue to deliver
benchmark cash returns for our investors in today’s markets.”

Read our Press Releases:

(1) The financial information in this press release and Appendix 1 has been prepared in accordance with the measurement and recognition criteria of International Financial Reporting Standards (“IFRS”) as adopted in the European Union. While the interim financial information included in this announcement has been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standard 34, “Interim Financial Reporting”. Unless otherwise noted the numbers and information in the press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers.

(2) The Leadership Journey® is an initiative launched on December 16, 2010, and subsequently accelerated and increased, to target management gains and profit enhancement. The fourth phase of the Leadership Journey® is targeting EUR 150 million gains for the period 2021 – 2023 via a combination of cost, growth and mix improvement measures. The next phase, Phase 5, of the Leadership Journey® is currently being defined, while some investments, as announced in 2021, have been accelerated to achieve earnings growth already in 2022.