Acerinox S.A. — Investor Presentation 2021

Mar 1, 2021

ACERINOX FY 2020 RESULTS PRESENTATION

1 March 2021

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FY 2020: A very robust year under incredibly challenging circumstances

Million EUR

	2019	2020	Variation
Net Sales	4.754	4,668	$-2\%$
Adjusted EBITDA (1)	402	398	$-1\%$
EBITDA	364	384	5%
EBIT	23	163	620%
Results before Taxes and Minorities	23	132	470%
Results after Taxes and Minorities	$-60$	49	۰
Operating cash flow (before investments)	359	421	17%
Net financial Debt (2)	495	772	56%
Employees	6,605	8,195	24%

Control of business and variabilization of
fixed costs

Delivered a robust EBITDA against a very challenging backdrop

Exceptionally strong operating cash flow generation of 421 million EUR

Net Debt/EBITDA 2.0x

Ongoing integration of VDM

Sustainability / ESG focus

The Group contributes to the 17 United Nations Sustainable Development Goals

ENVIRONMENT SOCIAL

• Leader in Circular Economy
• +90% recycled content rate of our products
• +80% reuse of generated waste
• Fight against Climate Change
• Acerinox committed to achieve carbon neutrality by 2050
• 30% lower direct emissions than stainless steel average

• All factories have the ISO 14001

• High-quality Employment

• 98% of employees have permanent contract
• Promoting Inclusion
• 64 nationalities in +50 countries on 5 continents
• Plants employ 242 people with a disability
• Safety & Health as a priority
• 82.5% decrease in the LTIFR since 2013

GOVERNANCE AND SUSTAINABLE FINANCE SUSTAINABLE STAINLESS STEEL

• Creation of a specific Sustainability Commission within the Board of Directors
• Directors:
• 12 Directors (8 Independent, 3 Proprietary, 1 Executive)
• 33.% women 67% men
• 41 meetings held in 2020

• €240 million financing through green and sustainable loans

• Acerinox business model based on ECO-EFFICIENCY: Producing more with less

• Stainless Steel contributes to Sustainable Development:
• Non-polluting and Non-toxic
• Reusable and 100 % recyclable
• Durable and long useful life
• Withstands fire & acid
• Hygienic and aesthetic
• Corrosion & abrasion resistant

Focus on operations, cash flow and capital allocation

Q4 - signs of recovery have emerged

Million EUR

	Q1 2020	Q2 2020	Q3 2020	Q4 2020
Net Sales	1,159	1,172	1,120	1,217
Adjusted EBITDA (1)	85	94	87	131
EBITDA	85	80	87	131
EBIT	44	$-11$	43	86
Results before Taxes and Minorities	41	$-19$	40	70
Results after Taxes and Minorities	28	$-26$	28	19
Operating Cash Flow (before investments)	$-36$	111	91	254
Net Financial Debt	854 $(2)$	872	841	772
Employees	6,507	8.385	8,331	8.195

Q4 saw a strong recovery into year end

Demonstrated our flexibility - cost control when needed but we are always prepared to take advantage of an improving market

Strong improvement in EBITDA QoQ

Another quarter of strong cash generation

Stainless Group figures Q4 2020 and Full Year

	Stainless Group				Stainless Group
Million euros	Q1 2020	Q 2 2020	Q3 2020	Q4 2020	2019	2020	% Var
Melting production (thousand Mt)	599	420	524	601	2,231	2,144	$-4%$
Net sales	1,159	894	935	1,067	4,754	4,055	$-15%$
Adjusted EBITDA (1)	85	71	86	116	402	358	$-11%$
Adjusted EBITDA margin	7%	8%	9%	11%	8%	9%
EBITDA	85	57	86	116	364	344	$-5%$
EBITDA margin	7%	6%	9%	11%	8%	8%
Amortization and Depreciation	-41	$-40$	$-37$	-38	$-175$	$-155$	$-11%$
EBIT	44	$-26$	49	79	23	147	550%
EBIT margin	4%	$-3%$	5%	7%	$0\%$	4%
Operating cash flow (before) investments)	$-36$	104	27	242	359	337	$-6%$

Focus on cost reductions for much of the year :

• Personnel: 16%
• Operating: 16%

Very strong cash generation, especially in Q4

Sequential improvement in EBITDA in Q4

Our flexibility and agility means we were well positioned to benefit from the rebound in activity towards year end

High Performance Alloys figures Q4 2020 and Full Year

	High Performance Alloys
Million euros	Q2 2020 (1)	Q3 2020	Q4 2020	Mar - Dec 2020
Melting production (thousand Mt)	25	14	13	52
Net sales	279	185	150	614
EBITDA	23	2	15	40
EBITDA margin	8%	1%	10%	6%
Amortization and Depreciation	-7	$-7$	-6	$-20$
EBIT	15	-5	10	20
EBIT margin	6%	$-3%$	6%	3%
Operating cash flow (before investments)		64	12	84

Environment remained challenging from Q2 onwards...

…But operating cash flow generation was very strong at 84 million EUR

And now positive signs that order books are recovering in early 2021 with an expected lag to stainless steel

VDM integration remains on track and should accelerate in 2021

Strong cash flow allows optimal capital allocation

Million EUR

Focus on FCF generation to enable us to allocate capital in the best possible way for the core business, for profitable growth and for shareholder returns

• ★ We control the controllables of our business to generate the maximum possible profitability
• ★ In 2020 we maintained strong but prudent capex for the core business
• ★ We paid a 7% dividend yield based on average share price of the year
• ★ We covered 60 percent of the purchase price of VDM with FCF post capex and dividend

We maintain very strong liquidity and balance sheet even post VDM

Long term maturities: 1,578 million EUR

Objectives for 2021

Control: running the business to maximise profitability and accelerate the integration of VDM

Cashflow: to generate the maximum possible free cashflow from the profits we generate

Capital allocation: optimise capital allocation between the existing business, selective growth, balance sheet (net debt) and shareholder returns

Long term focus: continued and ongoing review of all parts of the business and intense focus on the strategic plan to take Acerinox forward into the next 50 years

Our vision: to accelerate the transformation of Acerinox from high quality stainless steel company to an innovative and sustainable provider of stainless steel and high performance alloys for a global market

Our sustainable long term goals

Emissions: CO2 tonnes / tonne

	2015	2020	2030
Reduction in GHG emissions	1.19	1.11	0.95
intensity (Scope 1&2) by 2030 from 2015 baseline		-6.72 % vs 2015	-20 % vs 2015

Energy: GJ / tonne

	2015	2020	2030
Reduction in energy intensity by 2030 from 2015 baseline	8.71	8.59	8.05
		-1.38 %	-7.5 %
		vs 2015	vs 2015

Water: m3 / tonne

	2015	2020	2030
Reduction in fresh water intensity consumption by 2030	4.18	3.65	3.34
from 2015 baseline		-12.68 %	-20%
		vs 2015	vs 2015

Waste: (%) tonnes to landfill / generated tonnes

	2019	2020	2030
Reduction of waste to landfill by	28.70%	22.00%	2.20%
2030 from 2020 baseline		-23.34 % vs 2019	-90 % vs 2020

Safety: Lost Time Injury Frequency Rate (LTIFR)

10% year on year reduction on Lost Time Injury Frequency Rate	- 62.0 % since 2015
---------------------------------------------------------------------------------------------	---------------------------

Inclusion

Acerinox is committed to promote women's careers, with an increase of 19.6% in the percentage of women hired compared to 2019.

Outlook

• Base price increase achieved in the US
• Green shoots of recovery in high performance alloys
• Q1 2021 EBITDA should be slightly higher than in Q4 2020

Conclusions

• In 2020 we reacted fast to the extraordinary challenges presented by the COVID driven crisis
• We focused on control: safety, liquidity, supply chains and variabilising fixed costs to maintain profitability
• Flexible, agile and ready to rapidly benefit from a recovery
• Consistently focus on profitability and to generate the best possible FCF to enable optimal capital allocation for the business and shareholders
• Our long term strategy remains dynamic and intact. VDM will be a big part of this but this is just the beginning
• We will continue to fundamentally reshape Acerinox in the years ahead

VALUE CREATION FOR ALL STAKEHOLDERS

Acerinoxa value for the future

A Global Leader in Stainless Steel and High Performance Alloys Highest Quality Standards Solid Long Term Strategy Attractive Resilient Investment Opportunity Diversification Strategy resulting in High Growth and Significant Value Added B C D E Acerinox Investment Opportunity: A Value for the Future

Clear Leader in Stainless Steel in USA

President Biden Plan to Build a Modern, Sustainable Infrastructure and an Equitable Clean Energy Future could represent impressive demand for our products:

• Build a Modern Infrastructure
• Achieve a Carbon Pollution-Free Power Sector by 2035
• Make Dramatic Investments in Energy Efficiency in Buildings, including Completing 4 Million Retrofits and Building 1.5 Million New Affordable Homes
• Pursue a Historic Investment in Clean Energy Innovation
• Advance Sustainable Agriculture and Conservation
• Secure Environmental Justice and Equitable Economy Opportunity

c50%

of our sales in

50% of the US production

Global Leader in Stainless Steel and High Performance Alloys ^A

High Sustainable Products With No Alternative Substitution

Diversified End Users: One Stop Shop

Sophisticated products with high growth potential

Sources: ISSF; SMR; ¹ Calculated for Market Demand of Stainless Steel ² Calculated for Market Demand for Specialty Alloys (excl. Seamless Tube)

Present In Every Aspect Of Life

High Resistance to Corrosion, Withstand High Temperatures and Pressures and High Mechanical Performance

• Containers, tanks and trailer
• Aviation. Aerospace. Nautical
• Exhaust systems of hybrid and plug-in hybrid vehicles

Resistance to Rust, ease with which it can be Cleaned, Becoming Essential in Modern Design (cutlery)

• Washing machines
• Refrigerators
• Pots and pans
• Industrial kitchens
• Cutlery
• HD Disc and electronics

Sources: ISSF; SMR

Transport Food & beverages

Hygienic and Clean Material, Ideal for the Production, Handling and Transport of Food

• Containers, tanks
• Fishing boats
• Conservation
• Manufacturing
• Handling and transportation

Homes and restaurants Medical services & Pharma Industry

Stops the spread of bacteria on its surface. Highly hygienic. To be meticulously disinfected in hospitals and health centers

• Medical equipment and furniture
• Medical components
• Implants, prostheses
• Surgical instruments

Infrastructures and construction

Chosen as structural steel to prevent rusting and corrosion from carbonation. Nickel alloys resistant to high temperatures and corrosion

• Industrial furnaces
• 18-metre cupola of the Louvre in Abu Dhabi
• Ventilation equipment
• Structural elements
• Bridges and structures in contact with water

Present in the Obtaining and Distribution of Hydrocarbons and Biofuels. Essential in Ethanol Production

• Welding additives and consumables for chemical and petrochemical plants
• Photovoltaic panels
• Thermal power plant salt tanks

Refurbish historic works, turned to this material on many occasions, especially in sculpture

• Atomium in Brussels
• Cloud Gate sculpture, Chicago
• Access to the Bilbao Metro (design by Norman Foster)

Energy Architecture

Important in the construction of buildings and large works. Resistance to corrosion and excellent mechanical properties. Low maintenance. Clean

• Urban furniture
• Building facades
• Interior decoration
• Facade and the roof of the new Santiago Bernabéu Stadium

Stainless Steel And High Performance Alloys: Sustainable Products

Minimal corrosion, does not contaminate the water and does not require any extra covering. Permits design corrections and modifications in situ. Adaptable to all kinds of shapes.

• Pumps and valves
• Washing systems
• Tanks
• Chemical treatment operations

Electrical machinery Other

Needs for longevity, off-site credibility and potential corrosion resistance. Environmental friendly.

• Residential energy storage system
• Electrical enclosure
• Modular bus stations

Water Facilitate life and adaptation

Increasing presence in life and becoming essential. Friendly and smooth texture. Hygienic. Easy to clean.

• Sinks and showers
• Beds frames
• Stainless steel handrail
• Chair adapted (swimming pool)
• Lift adapted

Excellent workability, corrosion resistance, formability, weldability for over half a century

• Urban waste sorting/recovery container
• Floors for bumper cars
• Bread moulds
• Stainless weldable sandwich with 3D-profiled core

Sources: ISSF; SMR

Our Long Term Strategy Remains Intact

Strong balance sheet: efficient capital allocation

Improving due to digitalization and 360º planning, cost reduction programs and optimizing the commercial network

Added value enhanced by VDM Metals (HPA) and constant review of all the assets of the Group

Sustainability: core of our business model

Acerinox is committed to the Circular Economy

MISION, VISION, VALUES

Strong Balance Sheet Despite Covid-19 Disruption

Highly Experienced Management Team

Average of More than 20 Years of Experience in the Sector

Rafael Miranda Chairman

Luis Gimeno General Counsel

Fernando Gutiérrez CEO Acerinox Europa

Bernardo Velázquez CEO

Daniel Azpitarte Integration Director

Johan Strydom CEO Columbus

Hans Helmrich COO

Oswald Wolfe Director Institutional Relations, Sustainability and Communication

Mark Davis

Miguel Ferrandis CFO

Cristobal Fuentes CEO NAS

CEO Bahru 28 Dr. Niclas Mueller CEO VDM

Constantly Improving

Production: Quality, melting shop yields and efficiency in production materials Supply chain: Delivery on time

Supportive Recommendation from Analysts on the back of Strong Estimates

Attractive Sales, EBITDA and Net Profit Estimates

	ESTIMATES 2021 (€m) 1				ESTIMATES 2022 (€m) 1
Sales	EBITDA	Net Profit	Sales	EBITDA	Net Profit
5,335	470	185	5,715	537	232
Growth YoY			7.1%	14.1%	25.4%

¹ estimates from 21 analysts covering Acerinox

Agile Measures to the COVID Outbreak Have Ensured Resiliency

We Prepared Early and Acted Decisively

Safety and prevention measures

Our management team took Acerinox through 2008/2009 successfully and efficiently

Fixed costs reduction and variabilisation

Massive liquidity, 1.8 billion euros, covering maturities until 2029

Refinancing to anticipate future renewals and extend maturities

Secured the supply chain

Operating performance, cost control, capital allocation and FCF focus

Strong track record on consistent financial performance, over-performing our main European peers in 12M 2020:

• +37% adjusted EBITDA than peer 1
• +26% adjusted EBITDA than peer 2

Ongoing Growth

Production Sites

Stainless Steel Division Stainless Steel Division

Flat product Melting Shop Hot Rolling Shop Cold Rolling Shop Campo de Gibraltar Long product Hot Rolling Finished Product Flat product Melting Shop Hot Rolling Shop Cold Rolling Shop Kentucky Ponferrada

Long product Hot Rolling Finished Product

Flat product Melting Shop Hot Rolling Shop Cold Rolling Shop

High Performance Alloys

Flat product Melting Shop Hot Rolling Shop Cold Rolling Shop Long product Hot Rolling Finished Product

Strong Global Presence

Combined Global Footprint and Sales by Region

A Leader In Stainless And HPA

Creating value through:

• Enhancement of product mix
• Projects and tailor-made solutions
• Exceptional R&D capabilities
• Diversification of geographical earnings
• Less cyclical earnings stream
• Immediate synergy opportunities
• Significant new pathways for earnings growth

Solid Revenue And Earnings Growth

CONSOLIDATED GROUP FIGURES

2019: 38 million EUR for the lay offs in Spain 2020: 398 million EUR of debt related to

2020: 14 million EUR for the expenses of the purchase of VDM

VDM acquisition

Strong Cash Generation

CONSOLIDATED GROUP FIGURES

Million EUR	2020	Jan - Mar Apr - Jun Jul - Sep 2020	2020	Oct - Dec 2020	Jan-Dec 2020	Jan-Dec 2019
EBITDA	85	80	87	131	384	364
Changes in working capital	$-97$	63	74	183	223	96
Changes in operating working capital	$-65$	50	65	186	236	44
∫-Inventories	9	95	92	27	223	$\overline{2}$
l- Trade debtors	$-47$	93	$-1$	38	83	41
└ Trade creditors	$-27$	$-139$	$-26$	122	$-70$	0
Other adjustments to working capital	$-32$	13	9	$-3$	$-13$	52
- Acerinox Europa lay-offs	$-26$	$\Omega$	0	$\Omega$	$-26$
- Others	$-6$	13	9	$-3$	13	52
Income tax	$-23$	$-3$	$-49$	$-24$	$-99$	$-116$
Financial expenses	$-3$	-9	$-13$	$-11$	$-36$	$-15$
Other adjustments to the result	3	$-20$	$-8$	$-26$	$-51$	29
OPERA TING CASH FLOW	$-36$	111	91	254	421	359
Payments for VDM acquisition	$-313$	$\Omega$	$\Omega$	0	$-313$	---
Payments for investments on fixed assets	$-23$	$-27$	$-29$	$-19$	$-99$	$-128$
FREE CASH FLOW	$-373$	84	62	235	8	231
Dividends and treasury shares	0	$\Omega$	$\mathbf{0}$	$-135$	$-135$	$-184$
	$-373$	84	62	100	$-127$	47
Conversion differences	13	$-16$	$-31$	$-35$	$-70$	10
Grants and others	0	0	0	4	4	0
Net financial debt acquired from VDM	0	-85	0	0	$-85$	---
Variation in net financial debt	$-360$ $*$	$-17$ $\uparrow$	$31\sqrt{ }$	68 ₩	$-278$ $\uparrow$	$57 \sqrt{ }$