Aperam S.A.

Earnings Release • Aug 1, 2024

• Health and Safety: LTI frequency rate of 2.0x in Q2 2024 compared to 1.5x in Q1 2024
• Shipments of 583 thousand tonnes in Q2 2024 remained broadly stable versus shipments of 585 thousand tonnes in Q1 2024
• Adjusted EBITDA of EUR 86 million in Q2 2024, compared to Adjusted EBITDA of EUR 55 million in Q1 2024
• Net income of EUR 59 million in Q2 2024, compared to net loss of EUR (19) million in Q1 2024
• Basic earnings per share of EUR 0.82 in Q2 2024, compared to EUR (0.26) in Q1 2024
• Free cash flow before dividends amounted to EUR 111 million in Q2 2024, compared to EUR (141) million in Q1 2024
• Net financial debt of EUR 607 million as of June 30, 2024, compared to EUR 674 million as of March 31, 2024

Leadership Journey®² Phase 5: Gains reached EUR 12 million in Q2 2024, the second

(in millions of Euros, unless otherwise stated)	Q2 24	Q1 24	Q2 23	H1 24	H1 23
Sales	1,634	1,657	1,702	3,291	3,578
Operating income / (loss)	19	(3)	54	16	135
Net income / (loss) attributable to equity holders of the parent	ਦੇ ਰੇ	(19)	43	40	175
Basic earnings per share (EUR)	0.82	(0.26)	0.60	0.56	2.43
Diluted earnings per share (EUR)	0.82	(0.26)	0.59	0.56	2.41
Free cash flow before dividend	111	(141)	1	(30)	86
Net Financial Debt (at the end of the period)	607	674	461	607	461
Adj. EBITDA	86	55	103	141	230
Exceptional items	(8)			(8)
EBITDA	78	ਟ ਟ	103	133	230
Adj. EBITDA/ tonne (EUR)	148	94	187	121	202
EBITDA/tonne (EUR)	134	94	187	114	202

Financial results analysis for the three-month period enging June 30, 2024

Sales for the second quarter of 2024 decreased by 1,4% at EUR 1,634 million compared to EUR 1,657 million for the first quarter of 2024. Shipments were broadly stable at 583 thousand tonnes in the second quarter of 2024 compared to 585 thousand tonnes in the first quarter of 2024, due to stable market conditions in Europe while the positive seasonality in Brazil was balanced by the delayed hot rolling mill ramp-up.

Adjusted EBITDA reached EUR 86 million during the second quarter (excluding an exceptional loss of EUR (8) million, related to a voluntary redundancy program) compared to EUR 55 million in the first quarter of 2024. Positive inventory valuation, a better product mix and Leadership Journey® related cost improvements more than compensated for a price/cost squeeze.

Depreciation and amortization expense was EUR (59) million for the second quarter of 2024, including an impairment loss of EUR (3) million.

Aperam had an operating income for the second quarter of 2024 of EUR 19 million compared to an operating loss of EUR (3) million for the previous quarter.

Financing costs, net, including the FX and derivatives result for the second quarter of 2024 were EUR (16) million. Cash cost of financing was EUR (15) million during the quarter.

Income tax benefit was EUR 57 million during the second quarter of 2024, thanks to the recognition of net deferred tax assets on tax losses carried forward for EUR 56 million.

The net result recorded by the Company was an income of EUR 59 million for the second quarter of 2024, compared to a loss of EUR (19) million for the first quarter of 2024.

Cash flows from operations for the second quarter of 2024 were EUR 136 million, including a working capital decrease of EUR 92 million. CAPEX for the second quarter was EUR (26) million.

Free cash flow before dividend for the second quarter of 2024 amounted to EUR 111 million, compared to EUR (141) million for the first quarter of 2024.

During the second quarter of 2024, cash returns to shareholders amounted to EUR 37 million (of which EUR 1 million paid to non-controlling interests), consisting fully of dividend.

Operating segment results analysis

(in millions of Euros, unless otherwise stated)	Q2 24	Q1 24	Q2 23	H1 24	H1 23
Sales	1,058	1,022	1,050	2,080	2,283
Adjusted EBITDA	ਟਰੇ	6	52	୧୮	132

Stainless & Electrical Steel (1)

Operating	23	(21)	26	2	81
income / (loss)
Steel shipments (OOOE)	419	415	373	834	772
Average steel selling price (EUR/t)	2,412	2,358	2,713	2,385	2,852

(in millions of Euros, unless otherwise stated)	Q2 24	Q1 24	Q2 23	H1 24	H1 23
Sales	638	616	ਦੇ ਤੇਰੇ	1,254	1,210
EBITDA	16	15	(7)	31	6
Depreciation & amortization	(3)	(4)	(4)	(7)	(7)

Average steel	3,113	2,936	3,467	3,023	3,542
selling price
(EUR/t)

(in millions of Euros, unless otherwise stated)	Q2 24	Q1 24	Q2 23	H1 24	H1 23
Sales	238	282	259	520	470
EBITDA	21	24	17	45	28
Depreciation, amortization & impairment	(2)	(3)	(2)	(8)	(5)
Operating income	16	21	15	37	23
Steel shipments (000t)	9	11	9	20	18
Average steel selling price	23,820	25,483	26,654	24,573	24,760

(in millions of Euros, unless otherwise stated)	Q2 24	Q1 24	Q2 23	H1 24	H1 23
Sales	ટર્ટ ર	483	529	1,039	1,091
EBITDA	20	18	29	38	74
Depreciation & amortization	(22)	(24)	(16)	(46)	(31)
Operating income / (loss)	(2)	(6)	13	(8)	43
Shipments (OOOF)	397	343	351	740	726
Average selling price (EUR/t)	1,401	1,408	1,507	1,404	1,503

On May 29, 2024, Aperam announced the cancellation of shares. 4,852,118 shares have been canceled in line with its financial policy. This cancellation takes into account shares already purchased under the 2.5 million share buyback program announced on February 11, 2022 under the authorization given by the annual general meeting of shareholders held on May 7, 2019 (and under renewal of such authorization at the May 4, 2022 annual general meeting of shareholders) and shares purchased under the 3.5 million additional share buyback program announced on May 6, 2022 under the authorization given by the annual general meeting of shareholders held on May 4, 2022. As a result of this cancellation, Aperam will have 73,184,570 shares in issue (compared to 78,036,688 before the cancellation).

• On June 10 and June 12, 2024, Aperam announced shareholding notifications by Bank of America for respectively crossing upwards and downwards the 5% voting rights threshold with reference to Transparency Law.
• On July 1, 2024, in preparation of the quarterly results release scheduled for August 1, 2024, Aperam reminded market participants of the standing guidance, earnings drivers and events that should be considered.
• On July 2, 2024, IperionX Limited and Aperam Recycling, through its American entity ELG Utica Alloys, signed an agreement for an innovative titanium processing and product manufacturing program. This partnership will demonstrate IperionX's fully circular and sustainable titanium supply chain solution, turning titanium scrap into high-performance titanium products for advanced industries.

Date	New York	London	Luxembourg
Thursday, 1 August 2024	07:00	12:00	13:00

(in million of EURO)	June 30, 2024	March 31, 2024	June 30, 2023
ASSETS
Cash & cash equivalents (C)	279	207	479
Inventories, trade receivables and trade
payables Prepaid expenses and other current assets	1,571 163	1,690 148	1,888 160
Total Current Assets & Working Capital	2,013	2,045	2,477
Goodwill and intangible assets	436	449	456
Property, plant and equipment (incl. Biological assets)	2,058	2,114	1,984
Investments in associates, joint ventures and other	7	8	3
Deferred tax assets	263	217	90
Other non-current assets	131	134	119
Total Assets (net of Trade Payables)	4,908	4,967	5,129

(Evenusmy Trave Payables)	304	633	705
Long-term debt, net of current portion (A)	561	563	630
Deferred employee benefits	152	153	136
Deferred tax liabilities	85	104	133
Other long-term liabilities	63	ਦਰ	62
Total Liabilities (excluding Trade Payables)	1,665	1,577	1,666
Equity attributable to the equity holders of the
parent	3,235	3,382	3,456
Non-controlling interest	8	8	7
Total Equity	3,243	3,390	3,463
Total Liabilities and Shareholders' Equity (excluding Trade Payables)	4,908	4,967	5,129
Net Financial Debt (D = A+B-C)	607	674	461

	Three Months Ended			Six Months Ended
(in million of EURO)	June 30, 2024	March 31, 2024	June 30, 2023	June 30, 2024	June 30, 2023
Sales	1,634	1,657	1,702	3,291	3,578
Adjusted EBITDA (E = C- D)	કર	55	103	141	230
Adjusted EBITDA margin (%)	5.3%	3.3%	6.1%	4.3%	6.4%
Exceptional items (D)	(8)			(8)
EBITDA (C = A- B)	78	55	103	133	230
EBITDA margin (%)	4.8%	3.3%	6.1%	4.0%	6.4%
Depreciation, amortization and impairment (B)	(દવ)	(28)	(49)	(117)	(ਰੇਟ)

income / (Costs), (net)	(16)	(16)		(32)	86
Income / (loss) before taxes and non- controlling interests	2	(19)	53	(17)	220
Income tax benefit / (expense)	57	1	(a)	58	(44)
Effective tax rate %	n/a	3.8%	18.3%	n/a	20.0%
Net income / (loss) including non-controlling interests	59	(18)	44	41	176
Non-controlling interests		(1)	(1)	(1)	(1)
Net income / (loss) attributable to equity holders of the parent	59	(19)	43	40	175
Basic earnings per share (EUR)	0.82	(0.26)	0.60	0.56	2.43
Diluted earnings per share (EUR)	0.82	(0.26)	0.58	0.56	2.41
Weighted average common shares outstanding (in thousands)	72,254	72,249	72,205	72,252	72,195
Diluted weighted average common shares outstanding (in thousands)	72,792	72,628	72,776	72,790	72,776

	Three Months Ended			Six Months Ended
(in million of EURO)		June 30, 2024
Operating income / (loss)	19	(3)	54	16	135
Depreciation, amortization & impairment	59	58	49	117	95

provided by (used in) operating activities (A)	136	(61)	63	75	201
Purchase of PPE and intangible assets (CAPEX)	(26)	(77)	(28)	(103)	(102)
Purchase of biological assets and other investing activities (net)	1	(3)	(4)	(2)	(13)
Net cash used in investing activities (B)	(25)	(80)	(62)	(105)	(115)
(Payments to) / Proceeds from payable to banks and long term debt	8	(54)	25	(46)	(32)
Dividends paid	(37)	(36)	(36)	(73)	(72)
Other financing activities (net)	(4)	(4)	(5)	(8)	(8)
Net cash used in financing activities	(33)	(94)	(16)	(127)	(115)
Effect of exchange rate changes on cash	(6)	(1)	2	(7)	1
Change in cash and cash equivalent	72	(236)	(13)	(164)	(28)
Free cash flow before dividend(C = A+B)	111	(141)	1	(30)	86

Appendix 1a – Health & Safety statistics

	Three Months Ended
Health & Safety Statistics	June 30, 2024	March 31, 2024	December 31, 2023
Frequency Rate	2.0	1.5	2.1

Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.

■ al informatio n
Shipment (000t)	419	195	9	397	(437)	583
Average selling price (EUR/ t)	2,412	3,113	23,820	1,401		2,803
Financial informatio n (EURm)
Sales	1,058	638	238	ટર્દિ	(856)	1,634
Adjusted EBITDA	ਟਰੇ	16	21	20	(30)	86
Exceptional items	(8)					(8)
EBITDA	51	16	21	20	(30)	78
Depreciatio n, amortizatio n & impairment	(28)	(3)	(5)	(22)	(1)	(ટતે)
Operating income / (loss)	23	13	1 ୧	(2)	(31)	19

Operation al informatio n
Shipment (000t)	415	201	11	343	(382)	ર જિટ
Average selling price (EUR/ t)	2,358	2,936	25,483	1,408		2,832
Financial informatio n (EURm)
Sales	1,022	616	282	483	(746)	1,657
EBITDA	6	15	24	18	(8)	ਦੇ ਦ
Depreciatio n & amortizatio n	(27)	(4)	(3)	(24)		(28)
Operating income / (loss)	(21)	11	21	(6)	(8)	(3)

	Three Months Ended			Six Months Ended
(in million of EURO)		June 30, 2024 March 31, 2024 June 30, 2023		June 30, 2024	June 30. 2023
Net income / (loss)	59	(19)	43	40	175

Adjusted Net income / (loss)	の	(23)	43	(14)	1775
Basic earnings per share (EUR)	0.82	(0.26)	0.60	0.56	2.43
Adjusted Basic earnings per share (EUR)	0.13	(0.32)	0.60	(0.19)	2.43

Appendix 3 - Terms and definitions

Unless indicated otherwise, or the context otherwise requires, references in this earnings release report to the following terms have the meanings set out next to them below:

Adjusted EBITDA: operating income before depreciation expenses, impairment losses and exceptional items.

Adjusted EBITDA/tonne: calculated as Adjusted EBITDA divided by total shipments.

Adjusted Net Income: refers to reported net income / (loss) less exceptional items, recognition of deferred tax assets on tax losses carried forward and deferred tax effect on exceptional items. Adjusted Basic Earnings per Share: refers to Adjusted Net Income divided by Weighted average common shares outstanding.

Average selling prices: calculated as sales divided by shipments.

Average steel selling prices: calculated as steel sales divided by steel shipments.

Cash and cash equivalents: represents cash and cash equivalents, restricted cash and short-term investments.

CAPEX: relates to capital expenditures and is defined as purchase of property, plant and equipment and intangible assets.

EBITDA: operating income before depreciation and amortization expenses and impairment losses. EBITDA/tonne: calculated as EBITDA divided by total shipments.

Exceptional items: consists of (i) inventory write-downs equal to or exceeding 10% of total related inventories values before write-down at the considered quarter end (ii) restructuring (charges)/gains equal to or exceeding EUR 10 million for the considered quarter, (iii) capital (loss)/gain on asset disposals equal to or exceeding EUR 10 million for the considered quarter or (iv) other non-recurring items equal to or exceeding EUR 10 million for the considered quarter.

Financing costs, (net): Net interest expense, other net financing costs and foreign exchange and derivative results

Free cash flow before dividend: net cash provided by operating activities less net cash used in investing activities.

Gross financial debt: long-term debt plus short-term debt.

Liquidity: Cash and cash equivalent and undrawn credit lines.

LTI frequency rate: Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.

Net financial debt: long-term debt, plus short-term debt less cash and cash equivalents.

Net financial debt/EBITDA or Gearing: Refers to Net financial debt divided by last twelve months EBITDA calculation.

Shipments: information at segment and group level eliminates inter-segment shipments (which are primarily between (i) Recycling & Renewables and Stainless & Electrical Steel (ii) Stainless & Electrical Steel and Services & Solutions) and intra-segment shipments, respectively.

Working capital: trade accounts receivable plus inventories less trade accounts payable.

1 The financial information in this press release and Appendix 1 has been prepared in accordance with the measurement and recognition criteria of International 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 decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that

The outlook for the quarter depends on the future development of metal and product prices. Both are assumed as constant at their current level.