Earnings Release • Feb 11, 2022
Earnings Release
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Nachricht vom 11.02.2022 | 07:00
Aperam S.A. / Key word(s): Annual Results Full year and fourth quarter 2021 results - 'Closing out a record year with a successful entry into Recycling' 11-Feb-2022 / 07:00 CET/CEST
Luxembourg, February 11, 2022 (07:00 CET) - Aperam (referred to as "Aperam" or the "Company") three months and full year ended December 31, 2021.
Health and Safety: LTI frequency rate of 2.3x in 2021 compared to 1.5x in 2020
Steel shipments of 1,819 thousand tonnes in 2021, 8.5% increase compared to steel shipments of 1,677 thousand tonnes in 2020
EBITDA of EUR 1,186 million in 2021, including an exceptional gain of EUR 126 million, compared to an EBITDA of EUR 343 million in 2020, including a net exceptional gain of EUR 50 million
EBITDA of EUR 462 million in Q4 2021, including an exceptional gain of EUR 117 million2, compared to EUR 159 million in Q4 2020, including a net exceptional gain of EUR 50 million
Net income of EUR 968 million in 2021, compared to EUR 175 million in 2020
Basic earnings per share of EUR 12.21 in 2021, compared to EUR 2.19 in 2020
Cash flow from operations amounted to EUR 550 million in 2021, compared to EUR 303 million in 2020
Free cash flow before dividend and share buy-back of EUR 367 million in 2021, after EUR (30) million paid for the acquisition of ELG, compared to EUR 195 million in 2020
Net financial debt of EUR 466 million, added from the ELG acquisition as of December 31, 2021, compared to EUR 67 million as of December 31, 2020
Leadership Journey(R)3 Phase 4: Gains reached EUR 7 million in Q4 2021. Aperam realized cumulative gains of EUR 40 million in the first year of the program. This compares to cumulative target gains of EUR 150 million over the period 2021 to 2023
In coherence to is Financial Policy, Aperam is announcing:
2022 Dividend: increase from €1.75 per share to €2.00 per share (subject to AGM approval)
2022 Share Buyback: up to €100 million
Q1 2022 adj. EBITDA is expected at a slightly higher level versus the record Q4 2021 base
We guide for slightly higher Q1 2022 net financial debt
Timoteo Di Maulo, CEO of Aperam, commented:
"In the fourth quarter we realized the fourth record results in a row. This is a reflection
of the positive market environment, but also proof of the substantial improvements that we have realized over the past years. We have opened the next chapter in Aperam's transformation with the acquisition of ELG - a leading recycling company for stainless steel scrap and superalloys. Looking ahead, our long order book signals a good first half. This allows us to invest in realizing Aperam's growth & improvement strategy to 2025 and sustaining attractive shareholder returns at the same time."
| Full year and fourth quarter 2021 results - 'Closing out a record year wi of the positive market environment, but also proof of the substantial improvements that we have realized over the past years. We have opened the next chapter in Aperam's transformation superalloys. Looking ahead, our long order book signals a good first half. This allows us to invest in realizing Aperam's growth & improvement strategy to 2025 and sustaining attractive shareholder returns at the same time." |
https://www.dgap.de/dgap/News/corporate/full-year-and-fourth-quarter | ||||
|---|---|---|---|---|---|
| Financial Highlights (on the basis of financial information prepared under IFRS) | |||||
| (in millions of Euros, unless otherwise stated) | Q4 21 | Q3 21 | Q4 20 | 12M 21 | 12M 20 |
| Sales | 1,396 | 1,257 | 916 | 5,102 | 3,624 |
| Operating income Net income attributable to equity holders of the parent |
426 438 |
241 201 |
118 101 |
1,042 968 |
199 175 |
| Basic earnings per share (EUR) | 5.56 | 2.53 | 1.26 | 12.21 | 2.19 |
| Diluted earnings per share (EUR) | 5.53 | 2.53 | 1.26 | 12.16 | 2.19 |
| Free cash flow before dividend and share buy-back | 132 | 90 | 88 | 367 | 195 |
| Net Financial Debt (at the end of the period) | 466 | 59 | 67 | 466 | 67 |
| Adj. EBITDA | 345 | 278 | 109 | 1,060 | 293 |
| Exceptional items | 117 | - | 50 | 126 | 50 |
| EBITDA | 462 | 278 | 159 | 1,186 | 343 |
| Adj. EBITDA/tonne (EUR) | 814 | 660 | 253 | 583 | 175 |
| EBITDA/tonne (EUR) | 1,090 | 660 | 369 | 652 | 205 |
| Steel shipments (000t) | 424 | 421 | 431 | 1,819 | 1,677 |
| Health & Safety results Health and Safety performance based on Aperam personnel injury frequency rate was 2.1x in the fourth quarter of quarter of 2021. For 2021 the lost time injury frequency rate was 2.3x after 1.5x in 2020. Financial results analysis for full year period to December 31, 2021 Sales for the year ended December 31, 2021 increased by 40.8%, at EUR 5,102 million compared to EUR 3,624 million for the year ended December 31, 2020, higher prices. Steel shipments in 2021 increased by 8.5% at 1,819 thousand tonnes compared to 1,677 thousand tonnes in 2020. EBITDA reached EUR 1,186 million for the year ended December 31, 2021 (including exceptional gains of EUR 126 million made of a bargain gain on ELG PIS/Cofins tax credits related to prior periods recognized gains of EUR 50 million made of PIS/Cofins tax credits related to prior periods recognized in |
figures 2021 mainly acquisition in |
and compared due to of Brazil |
contractors' to 1.8x higher EUR for |
in shipments 117 million EUR 9 |
lost time the third and and million), |
EBITDA reached EUR 1,186 million for the year ended December 31, 2021 (including exceptional gains of EUR 126 million made of a bargain gain on ELG acquisition of EUR 117 million and PIS/Cofins tax credits related to prior periods recognized in Brazil for EUR 9 million), compared to EUR 343 million for the year ended December 31, 2020 (including net exceptional gains of EUR 50 million made of PIS/Cofins tax credits related to prior periods recognized in Brazil for EUR 65 million, partly offset by social costs and restructuring charges related to asset optimization in Europe for EUR (15) million). Group Adjusted EBITDA increased by 262% as higher demand supported a pricing recovery in both Europe and South America. Additional contributions were realized from inventory valuation gains. Phase 4 of the Leadership Journey(R) - the Transformation Program - realized EUR 40 million gains in 2021. Aperam had an operating income for the year ended December 31, 2021 of EUR 1,042 million Financing costs including the FX and derivatives result for the year ended December 31, 2021 were positive at EUR 2 million, including cash cost of financing of EUR (7) million and exceptional interest income of EUR 6 million in Brazil for PIS/Cofins tax credits related to
Depreciation, amortization and impairment was EUR (144) million for the year ended December 31, 2021.
compared to an operating income of EUR 199 million for the year ended December 31, 2020.
prior periods.
Income tax expense for the year ended December 31, 2021 was EUR (74) million.
The Company recorded a net income of EUR 968 million for the year ended December 31, 2021.
December 31, 2021 was EUR (152) million.
Free cash flow before dividend and share buy-back for the year 2021 amounted to EUR 367 million.
Cash flows from operations for the year ended December 31, 2021 were positive at EUR 550 million, despite a working capital increase of EUR 485 million. CAPEX for the year ended As of December 31, 2021, total equity amounted to EUR 2,953 million and net financial debt was EUR 466 million, of which EUR 499 million net financial debt was added from the acquisition of ELG. Gross financial debt as of December 31, 2021 was EUR 990 million. Cash & cash equivalents were EUR 524 million. million related to the bargain gain on ELG acquisition) from EUR 278 million for the third quarter of 2021. The underlying improvement was mainly driven by higher volumes and higher
Total cash returns to shareholders in 2021 amounted to EUR 245 million, consisting of EUR 105 million of share buy-back4 and EUR 140 million of dividend (of which EUR 1 million paid to noncontrolling interests).
The Company had liquidity of EUR 932 million as of December 31, 2021, consisting of cash and cash equivalents of EUR 524 million and undrawn credit lines5 of EUR 408 million.
Sales for the fourth quarter of 2021 increased by 11.1% to EUR 1,396 million compared to EUR 1,257 million for the third quarter of 2021. Steel shipments increased from 421 thousand tonnes in the third quarter of 2021, to 424 thousand tonnes in the fourth quarter of 2021.
EBITDA increased during the quarter to EUR 462 million (including an exceptional gain of EUR 117 prices that outweighed higher energy costs compared to the previous quarter. Cash flows from operations for the fourth quarter of 2021 were positive at EUR 219 million,
Depreciation, amortisation and impairment was EUR (36) million for the fourth quarter of 2021.
Aperam had an operating income for the fourth quarter of 2021 of EUR 426 million compared to an operating income of EUR 241 million for the previous quarter.
| Financing costs, net, including the FX and derivatives result for the fourth quarter of 2021 were EUR (6) million, including cash cost of financing of below EUR 1 million. |
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|---|---|---|---|---|---|
| Income tax benefit for the fourth quarter of 2021 was EUR 19 million. | |||||
| The Company recorded a net income of EUR 438 million for the fourth quarter of 2021. | |||||
| despite a working capital increase of EUR 71 million. CAPEX for the fourth quarter was EUR (58) million. |
|||||
| Free cash flow before dividend and share buyback for the fourth quarter of 2021 amounted to EUR 132 million. |
|||||
| During the fourth quarter of 2021, the cash returns to shareholders amounted to EUR 34 million, consisting fully of dividend. |
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| Operating segment results analysis | |||||
| Stainless & Electrical Steel (1) | |||||
| (in millions of Euros, unless otherwise stated) | Q4 21 | Q3 21 | Q4 20 | 12M 21 | 12M 20 |
| Sales | 1,249 | 1,065 | 774 | 4,369 | 2,897 |
| Adjusted EBITDA | 318 | 226 | 89 | 896 | 227 |
| Exceptional items | - | - | 50 | - | 50 |
| EBITDA | 318 | 226 | 139 | 896 | 277 |
| Depreciation, amortisation & impairment | (31) | (31) | (34) | (122) | (118) |
| Operating income | 287 | 195 | 105 | 774 | 159 |
| Steel shipments (000t) | 432 | 409 | 432 | 1,796 | 1,639 |
| 2,525 | 1,723 | 2,360 | 1,705 | ||
| Average steel selling price (EUR/t) | 2,806 |
The Stainless & Electrical Steel segment had sales of EUR 1,249 million for the fourth quarter of 2021. This represents a 17.3% increase compared to sales of EUR 1,065 million for the third quarter of 2021. Steel shipments during the fourth quarter were 432 thousand tonnes, an increase of 5.6% compared to shipments of 409 thousand tonnes during the previous quarter. Volumes in Europe increased seasonally while volumes in Brazil decreased seasonally quarter on quarter. Average steel selling prices for the Stainless & Electrical Steel segment increased by 11.1% compared to the previous quarter.
The segment recorded EBITDA of EUR 896 million (of which EUR 459 million were generated in Europe and EUR 437 million in South America) for the year 2021 compared to EUR 277 million (of which EUR 88 million from Europe, including EUR (13) million of social costs in France related to asset optimization and EUR 189 million from South America, including EUR 64 million due to PIS/Cofins tax credits related to prior periods and EUR (1) million of social costs in Brazil) for the year 2020. Adjusted EBITDA improved by 295% as both regions benefited from higher prices, higher volumes, inventory valuation gains and the successful implementation of the Top Line strategy and Leadership Journey(R). 226 million for the third quarter of 2021. Profitability increased due to higher prices and The Stainless & Electrical Steel segment had an operating income of EUR 287 million for the
| Europe and EUR 437 million in South America) for the year 2021 compared to EUR 277 million (of which EUR 88 million from Europe, including EUR (13) million of social costs in France related to asset optimization and EUR 189 million from South America, including EUR 64 million due to PIS/Cofins tax credits related to prior periods and EUR (1) million of social costs in Brazil) prices, higher volumes, inventory valuation gains and the successful implementation of the Top Line strategy and Leadership Journey(R). The segment generated EBITDA of EUR 318 million for the fourth quarter of 2021 compared to EUR |
|||||
|---|---|---|---|---|---|
| higher volumes which compensated higher input costs. | |||||
| Depreciation, amortisation and impairment was EUR (31) million for the fourth quarter of 2021. | |||||
| fourth quarter of 2021 compared to an operating income of EUR 195 million for the third quarter of 2021. |
|||||
| Services & Solutions(1) | |||||
| (in millions of Euros, unless otherwise stated) | Q4 21 | Q3 21 | Q4 20 | 12M 21 | 12M 20 |
| Sales | 578 | 561 | 381 | 2,212 | 1,513 |
| Adjusted EBITDA | 51 | 53 | 14 | 199 | 38 |
| Exceptional items | - | - | 1 | 9 | 1 |
| EBITDA | 51 | 53 | 15 | 208 | 39 |
| Depreciation & amortisation | (3) | (3) | (3) | (12) | (13) |
| Operating income | 48 | 50 | 12 | 196 | 26 |
| Steel shipments (000t) | 158 | 171 | 163 | 726 | 646 |
| Average steel selling price (EUR/t) | 3,471 | 3,167 | 2,224 | 2,922 | 2,242 |
| (1) Amounts are shown prior to intra-group eliminations The Services & Solutions segment had sales of EUR 578 million for the fourth quarter of 2021, representing an increase of 3.0% compared to sales of EUR 561 million for the third quarter of 2021. For the fourth quarter of 2021, steel shipments were 158 thousand tonnes compared to 171 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 recorded EBITDA of EUR 208 million for the year 2021, including EUR 9 million in Brazil due to PIS/Cofins tax credits related to prior periods, compared to EUR 39 million for the year 2020, including EUR 1 million in Brazil due to PIS/Cofins tax credits related to prior periods. The higher result was mainly attributable inventory valuation gains. The segment generated EBITDA of EUR 51 million for the fourth quarter of 2021 compared to EBITDA of EUR 53 million for the third quarter of 2021. Higher prices and higher inventory valuation gains did not fully compensate for seasonally lower volumes. |
to higher |
shipments, | higher | prices and |
|
| Depreciation, amortisation and impairment was EUR (3) million for the fourth quarter of 2021. | |||||
The segment recorded EBITDA of EUR 208 million for the year 2021, including EUR 9 million in Brazil due to PIS/Cofins tax credits related to prior periods, compared to EUR 39 million for the year 2020, including EUR 1 million in Brazil due to PIS/Cofins tax credits related to prior inventory valuation gains. The Services & Solutions segment had an operating income of EUR 48 million for the fourth quarter of 2021 compared to an operating income of EUR 50 million for the third quarter of
2021.
Alloys & Specialties(1)
| https://www.dgap.de/dgap/News/corporate/full-year-and-fourth-quarter | |||||
|---|---|---|---|---|---|
| (in millions of Euros, unless otherwise stated) | Q4 21 | Q3 21 | Q4 20 | 12M 21 | 12M 20 |
| Sales | 149 | 112 | 103 | 518 | 511 |
| EBITDA | 19 | 11 | 15 | 58 | 45 |
| Depreciation & amortisation | (2) | (2) | (2) | (8) | (9) |
| Operating income | 17 | 9 | 13 | 50 | 36 |
| Steel shipments (000t) | 8 | 7 | 7 | 30 | 31 |
| Average steel selling price (EUR/t) | 17,464 | 16,745 | 15,122 | 16,600 | 16,061 |
| (1) Amounts are shown prior to intra-group eliminations The Alloys & Specialties segment had sales of EUR 149 million for the fourth quarter of 2021, representing an increase of 33.0% compared to EUR 112 million for the third quarter of 2021. |
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| Steel shipments increased by 26.2% during the fourth Average steel selling prices were higher during the quarter. |
quarter | of | 2021 at 8 |
thousand | tonnes. |
| contribution | from | inventory | |||
| year 2020. The increase is mainly attributable, |
a | positive | |||
| The segment recorded EBITDA of EUR 58 million for the year 2021 compared to EUR 45 million for the valuation gains and cost savings through the Leadership Journey(R). The Alloys & Specialties segment achieved EBITDA of EUR 19 million for the fourth quarter of 2021 compared to EUR 11 million for the third quarter of 2021. The EBITDA increase was mainly driven by higher volumes, higher prices and higher inventory valuation gains. Depreciation and amortisation expense for the fourth quarter of 2021 was EUR (2) million. The Alloys & Specialties segment had an operating quarter of 2021 compared to an operating income of EUR 9 million for the third quarter of 2021. |
income | of EUR 17 |
million | for the |
fourth |
| Recent developments during the quarter |
On December 7, 2021, Aperam announced its financial calendar for 2022.
On December 27, 2021, Aperam announced the completion of the acquisition of ELG. The acquisition of ELG received all necessary regulatory approvals and will further strengthen Aperam's competitiveness and ESG (Environmental-Social-Governance) leadership position in the industry.
On January 7, 2022, Aperam announced a shareholding notification with reference to Transparency Law.
On February 11, 2022, Aperam announced having entered into a 5+1+1 years sustainably linked senior unsecured revolving credit facility of EUR 500 million with a syndicate of 16 banks. Such facility replaces the existing senior unsecured revolving credit facility of EUR 300 million signed in June 2017. In addition, Aperam announced having entered into a 6 years sustainably linked amortizing fixed rate term facility of EUR 300 million with a syndicate of 10 banks. The revolving credit facility is for general corporate purposes and the term loan is dedicated to the refinancing of maturing debts of ELG. BNP Paribas, ING Bank N.V. and Intesa Sanpaolo S.p.A. arranged the new facilities, with Credit Agricole Corporate & Investment Bank acting as Sustainability and Facility Agent.
On February 11, 2022 Aperam announced its detailed dividend payment schedule for 2022. The Company proposes to increase its base dividend from €1.75 per share to €2.00 per share, subject to shareholder approval at the 2022 Annual General Meeting. The schedule is available on Aperam's website www.aperam.com under Investors > Equity Investors > Dividends.
On February 11, 2022, Aperam announced a share buyback program of up to EUR 100 million, and a maximum of 2.5 million shares under the authorization given by the annual general meeting of shareholders held on 7 May 2019. Such shareholder resolution is to be renewed at the May 4, 2022 annual general meeting of shareholders.The details of the program are available in a separate Press Release
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 > Q4-2021 (Link).
Aperam management will host a conference call / webcast for members of the investment community to discuss the full year and fourth quarter 2021 financial performance at the following time:
| Friday, | ||
|---|---|---|
Date New York London Luxembourg February 11, 2022 08:00 am 01:00 pm 02:00 pm Link to the webcast https://channel.royalcast.com/landingpage/aperam/20220211_1/ The dial-in numbers for the call are: France : +33 (0) 1 7037 7166; USA: +1 212 999 6659; UK: +44 (0) 33 0551 0200
The conference password is Aperam.
Corporate Communications / Laurent Beauloye: +352 27 36 27 103; [email protected] Investor Relations / Thorsten Zimmermann: +352 27 36 27 304; [email protected]
Aperam is a global player in stainless, electrical and specialty steel, with customers in over 40 countries. As from 31 December 2021, the business is organised in four primary reportable Recycling.
segments: Stainless & Electrical Steel, Services & Solutions, Alloys & Specialties and 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). With ELG, Aperam is also a global leader in collecting, trading, processing and recycling of stainless steel scrap and high performance alloys, delivering~ 1.2 m tonnes of materials annually.
In 2021, Aperam had sales of EUR 5,102 million and steel shipments of 1.82 million tonnes.
For further information, please refer to our website at www.aperam.com.
This document may contain forward-looking information and statements about Aperam and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "target" or similar expressions. Although Aperam's management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Aperam's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of Aperam, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in Aperam's filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier). Aperam undertakes no obligation to publicly update its forward-looking statements or information, whether as a result of new information, future events, or otherwise. In particular, the length and severity of the COVID-19 (coronavirus) outbreak, including its impacts in the sector, macroeconomic conditions and in Aperam's principal local markets may cause our actual results to be materially different than those expressed in our forward-looking statements.
| December | September | December | ||
|---|---|---|---|---|
| 31, | 30, | 31, | ||
| (in million of EURO) | 2021 6 | 2021 | 2020 |
| Adjusted EBITDA margin (%) Exceptional items (D) |
24.7% 117 |
- | 50 | 126 | 50 |
|---|---|---|---|---|---|
| 22.1% | 11.9% | 20.8% | 8.1% | ||
| Adjusted EBITDA (E = C-D) | 345 | 278 | 109 | 1,060 | 293 |
| Sales | 1,396 | 1,257 | 916 | 5,102 | 3,624 |
| (in million of EURO) | December 31, 2021 |
September30, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
| Three Months Ended | Twelve Months Ended | ||||
| APERAM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||
| Net Financial Debt (D = A+B-C) | 466 | 59 | 67 | ||
| Total Liabilities and Shareholders' Equity (excluding Trade Payables) |
4,711 | 3,585 | 3,255 | ||
| Non-controlling interest Total Equity |
8 2,953 |
4 2,490 |
4 2,204 |
||
| Equity attributable to the equity holders of the parent | 2,945 | 2,486 | 2,200 | ||
| Total Liabilities (excluding Trade Payables) | 1,758 | 1,095 | 1,051 | ||
| Other long-term liabilities | 68 | 45 | 44 | ||
| Deferred tax liabilities | 132 | 115 | 117 | ||
| Deferred employee benefits | 186 | 147 | 148 | ||
| Long-term debt, net of current portion (A) | 719 | 380 | 372 | ||
| Total Current Liabilities (excluding Trade Payables) | 653 | 408 | 370 | ||
| Accrued expenses and other current liabilities | 382 | 370 | 317 | ||
| Short-term debt and current portion of long-term debt (B) |
271 | 38 | 53 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Total Assets (net of Trade Payables) | 4,711 | 3,585 | 3,255 | ||
| Other non-current assets | 101 | 62 | 83 | ||
| Deferred tax assets | 135 | 88 | 94 | ||
| Property, plant and equipment (incl. Biological assets) Investments in associates, joint ventures and other |
1,726 4 |
1,512 4 |
1,522 2 |
||
| Goodwill and intangible assets | 439 | 427 | 429 | ||
| Total Current Assets & Working Capital | 2,306 | 1,492 | 1,125 | ||
| Inventories, trade receivables and trade payables Prepaid expenses and other current assets |
1,688 94 |
1,032 101 |
616 151 |
||
| Cash & cash equivalents (C) | 524 | 359 | 358 | ||
| ASSETS |
| Total Liabilities and Shareholders' Equity (excluding | |||||
|---|---|---|---|---|---|
| APERAM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | Three Months Ended | Twelve Months Ended | |||
| December | September30, | December | December | December | |
| (in million of EURO) Sales |
31, 2021 1,396 |
2021 1,257 |
31, 2020 916 |
31, 2021 5,102 |
31, 2020 3,624 |
| Adjusted EBITDA (E = C-D) | 345 | 278 | 109 | 1,060 | 293 |
| Adjusted EBITDA margin (%) | 24.7% | 22.1% | 11.9% | 20.8% | 8.1% |
| Exceptional items (D) | 117 | - | 50 | 126 | 50 |
| EBITDA (C = A-B) | 462 | 278 | 159 | 1,186 | 343 |
| EBITDA margin (%) | 33.1% | 22.1% | 17.4% | 23.2% | 9.5% |
| Depreciation, amortisation & impairment (B) |
(36) | (37) | (41) | (144) | (144) |
| Operating income (A) | 426 | 241 | 118 | 1,042 | 199 |
| Operating margin (%) | 30.5% | 19.2% | 12.9% | 20.4% | 5.5% |
| Results from associates and other investments |
- | (1) | (1) | (1) | (1) |
| (6) | 10 | 42 | 2 | 40 |
| Full year and fourth quarter 2021 results - 'Closing out a record year wi | https://www.dgap.de/dgap/News/corporate/full-year-and-fourth-quarter | ||||
|---|---|---|---|---|---|
| Income before taxes and non controlling interests |
420 | 250 | 159 | 1,043 | 238 |
| Income tax benefit (expense) | 19 | (49) | (58) | (74) | (63) |
| Effective tax rate % | (4.5)% | 19.7% | 35.8% | 7.1% | 26.2% |
| Income before non-controlling interests |
439 | 201 | 101 | 969 | 175 |
| Non-controlling interests | (1) | - | - | (1) | - |
| Net income attributable to | |||||
| equity holders of the parent | 438 | 201 | 101 | 968 | 175 |
| Basic earnings per share (EUR) | 5.56 | 2.53 | 1.26 | 12.21 | 2.19 |
| Diluted earnings per share (EUR) |
5.53 | 2.53 | 1.26 | 12.16 | 2.19 |
| Weighted average common shares | 78,723 | 79,805 | 79,895 | 79,241 | 79,836 |
| outstanding (in thousands) Diluted weighted average common shares outstanding (in |
79,040 | 80,123 | 80,204 | 79,557 | 80,145 |
| Diluted earnings per share | |||||
|---|---|---|---|---|---|
| Weighted average common shares | |||||
| Diluted weighted average common shares outstanding (in thousands) |
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| APERAM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||
| Three Months Ended | Twelve Months Ended | ||||
| (in million of EURO) | December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
| Operating income | 422 | 241 | 118 | 1,038 | 199 |
| Depreciation, amortisation & impairment |
36 | 37 | 41 | 144 | 144 |
| Change in working capital | (71) | (175) | (6) | (485) | (22) |
| Income tax paid | (42) | (8) | (1) | (56) | (4) |
| Interest paid, (net) | 1 | (2) | (1) | (4) | (7) |
| Exceptional items | (117) | - | (50) | (126) | (50) |
| Other operating activities (net) | (14) | 17 | 5 | 35 | 43 |
| Net cash provided by operating activities (A) |
219 | 110 | 106 | 550 | 303 |
| Purchase of PPE, intangible and biological assets (CAPEX) |
(58) | (21) | (19) | (152) | (109) |
| Other investing activities (net) | (29) | 1 | 1 | (31) | 1 |
| Net cash used in investing activities (B) |
(87) | (20) | (18) | (183) | (108) |
| Proceeds (payments) from payable to banks and long term debt |
71 | (1) | (29) | 57 | (37) |
| Purchase of treasury stock (share buy back) |
- | (100) | - | (105) | - |
| Dividends paid | (34) | (35) | (35) | (140) | (139) |
| Other financing activities (net) | (2) | (3) | (2) | (9) | (9) |
| Net cash used in financing activities |
35 | (139) | (66) | (197) | (185) |
| Effect of exchange rate changes on cash |
(2) | (9) | 1 | (4) | (27) |
| Change in cash and cash | 165 | (58) | 23 | 166 | (17) |
| equivalent | 195 |
| Appendix 1a - Health & Safety statistics | |||
|---|---|---|---|
| Three Months Ended | |||
| Health & Safety Statistics | December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
| Appendix 1a - Health & Safety statistics | |||||
|---|---|---|---|---|---|
| Three Months Ended | |||||
| Health & Safety Statistics | December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
||
| Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors. |
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| Appendix 1b - Key operational and financial information | |||||
| Year Ending December 31, 2021 |
Stainless & Electrical Steela,b |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations 7 |
Total |
| Operational information |
|||||
| Steel Shipment (000t) | 1,796 | 726 | 30 | (733) | 1,819 |
| Average steel selling price (EUR/t) |
2,360 | 2,922 | 16,600 | 2,737 | |
| Financial information (EURm) |
|||||
| Sales | 4,369 | 2,212 | 518 | (1,997) | 5,102 |
| Adjusted EBITDA | 896 | 199 | 58 | (93) | 1,060 |
| Exceptional items | - | 9 | - | 117 | 126 |
| EBITDA | 896 | 208 | 58 | 24 | 1,186 |
| Depreciation, amortisation & impairment |
(122) | (12) | (8) | (2) | (144) |
| Operating income | 774 | 196 | 50 | 22 | 1,042 |
| Note a: Stainless & Electrical Steel shipments of 1,796kt of which 626kt were from South America and 1,170kt were from Europe Note b: Stainless & Electrical Steel EBITDA of EUR 896m of which EUR 437m were from South America and EUR 459m were from Europe |
|||||
| Year Ending December 31, 2020 |
Stainless & Electrical Steela,b |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
| Depreciation, amortisation & impairment |
|||||
|---|---|---|---|---|---|
| were from Europe Note b: Stainless & Electrical Steel EBITDA of EUR 896m of which EUR 437m were from South America and EUR 459m were from Europe Year Ending December 31, 2020 |
Stainless & Electrical Steela,b |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
| Operational | |||||
| information Steel Shipment (000t) |
1,639 | 646 | 31 | (639) | 1,677 |
| Average steel selling price (EUR/t) |
1,705 | 2,242 | 16,061 | 2,096 | |
| Financial information (EURm) |
|||||
| 2,897 | 1,513 | 511 | (1,297) | 3,624 | |
| Sales | 38 | 45 | (17) | 293 | |
| Adjusted EBITDA | 227 | ||||
| Exceptional items | 50 | 1 | - | (1) | 50 |
| EBITDA | 277 | 39 | 45 | (18) | 343 |
| Depreciation, amortisation & impairment |
(118) | (13) | (9) | (4) | (144) |
| Full year and fourth quarter 2021 results - 'Closing out a record year wi | https://www.dgap.de/dgap/News/corporate/full-year-and-fourth-quarter | ||||
|---|---|---|---|---|---|
| Quarter Ending December 31, 2021 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations 7 |
Total |
| Operational information |
|||||
| Steel Shipment (000t) | 432 | 158 | 8 | (174) | 424 |
| Average steel selling price (EUR/t) |
2,806 | 3,471 | 17,464 | 3,204 | |
| Financial information (EURm) |
|||||
| Sales | 1,249 | 578 | 149 | (580) | 1,396 |
| Adjusted EBITDA | 318 | 51 | 19 | (43) | 345 |
| Exceptional items | - | - | - | 117 | 117 |
| EBITDA | 318 | 51 | 19 | 74 | 462 |
| Depreciation, amortisation & impairment |
(31) | (3) | (2) | - | (36) |
| Operating income | 287 | 48 | 17 | 74 | 426 |
| Quarter Ending September 30, 2021 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
| Financial information (EURm) |
|||||
|---|---|---|---|---|---|
| Depreciation, amortisation & impairment |
|||||
| Quarter Ending September 30, 2021 |
Stainless & Electrical Steel |
Services & Solutions |
Alloys & Specialties |
Others & Eliminations |
Total |
| Operational information |
|||||
| Steel Shipment (000t) |
409 | 171 | 7 | (166) | 421 |
| Average steel selling price (EUR/t) |
2,525 | 3,167 | 16,745 | 2,928 | |
| Financial information (EURm) |
|||||
| Sales | 1,065 | 561 | 112 | (481) | 1,257 |
| EBITDA | 226 | 53 | 11 | (12) | 278 |
| Depreciation & Amortisation |
(31) | (3) | (2) | (1) | (37) |
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, amortisation and impairment expenses and exceptional items.
Adjusted EBITDA/tonne: calculated as Adjusted EBITDA divided by total steel 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 tangible assets, intangible assets and biological assets.
EBITDA: operating income before depreciation, amortisation and impairment expenses. EBITDA/tonne: calculated as EBITDA divided by total steel 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 income (costs): Net interest expense, other net financing costs and foreign exchange and derivative results. Free cash flow before dividend and share buy-back: 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 Stainless & Electrical Steel and Services & Solutions) and intra-segment shipments, respectively. Working capital: trade accounts receivable plus inventories less trade accounts payable. in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient certain percentages presented in the tables in this press release reflect calculations based upon the
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 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, 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. ELG contribution: €169 million of property, plant & equipment, €580 million of working capital and €499
2 The exceptional gain of EUR 117 million in Q4 2021 relates to a bargain purchase gain on ELG acquisition. This includes a net amount of EUR 36 million after tax related to revalued inventory at closing prices. This will negatively impact the EBITDA in Q1 2022.
3 The Leadership Journey(R) 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(R) is targeting EUR 150 million gains for the period 2021 - 2023 via a combination of cost, growth and mix improvement measures.
4 EUR 105 million of share buy-back during the year 2021 is composed of (1) EUR 100 million related to the share buy-back program announced on July 30, 2021 and completed during the third quarter of 2021 with the acquisition of 1.96 million shares and (2) EUR 5 million related to the acquisition of 0.10 million shares from a related party during the second quarter of 2021.
5 Includes a revolving credit facility of EUR 300 million at Aperam S.A.level and undrawn committed credit lines of EUR 108 million at ELG level.
6 Aperam condensed consolidated statement of financial position as of 31 December 2021 includes the following million of net financial debt.
7 As announced on December 27, 2021, ELG has been fully consolidated into the Aperam Group's statement of financial position as of December 31, 2021 under a new segment "Recycling". The bargain gain of EUR 117 million accounted for by the Company as of December 31, 2021 was the only transaction considered as an exceptional item recognized in the operating income of this new segment "Recycling". As a consequence, we have included it in the segment "Others & Eliminations". The performance of the new segment "Recycling" will be disclosed as from the first quarter of 2022.
8 This press release also includes Alternative Performance Measures ("APM" hereafter). The Company believes that these APMs are relevant to enhance the understanding of its financial position and provides additional information to investors and management with respect to the Company's financial performance, capital structure and credit assessment. These non-GAAP financial measures should be read in conjunction with and not as an alternative for, Aperam's financial information prepared in accordance with IFRS. Such non-GAAP measures may not be comparable to similarly titled measures applied by other companies. The APM's used are defined under Appendix 2 "Terms & definitions".
Dissemination of a Financial Wire News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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