Aperam S.A. — Interim / Quarterly Report 2023

Feb 9, 2024

• Health and Safety: LTI frequency rate of 2.3x in 2023 compared to 2.5x in 2022[1]a
• Shipments of 2,198 thousand tonnes in 2023, a 5% decrease compared to shipments of 2,309 thousand tonnes in 2022
• Adjusted EBITDA of EUR 304 million in 2023, compared to Adjusted EBITDA of EUR 1,129 million in 2022
• Adjusted EBITDA of EUR 55 million in Q4 2023, compared to EUR 19 million in Q3 2023 and EUR 129 million in Q4 2022
• Net income of EUR 203 million in 2023, compared to EUR 625 million in 2022
• Basic earnings per share of EUR 2.81 in 2023, compared to EUR 8.33 in 2022
• Free cash flow before dividend and share buy-back amounted to EUR 168 million in 2023, compared to EUR 345 million in 2022
• Net financial debt of EUR 491 million, as of December 31, 2023, compared to EUR 468 million as of December 31, 2022

(in millions of Euros, unless otherwise stated)	Q4 23	Q3 23	Q4 22	12M 23	12M 22
Sales	1,551	1,463	1,616	6,592	8,156
Operating income / (loss)	(10)	(36)	81	89	890
Net income / (loss) attributable to equity holders of the parent	70	(42)		203	625
Basic earnings per share (EUR)	0.97	(0.59)		2.81	8.33
Diluted earnings per share (EUR)	0.96	(0.58)		2.79	8.29
Free cash flow before dividend and share buy- back	217	(135)	ਦਰੇ	168	345
Net Financial Debt (at the end of the period)	491	646	468	491	468
Adj. EBITDA	ਟ ਦ	19	129	304	1,129
Exceptional items	(11)			(11)	(23)
EBITDA	44	19	129	293	1,076

(in millions of Euros, unless otherwise stated)	Q4 23	Q3 23	Q4 22	12M 23	12M 22
Sales	1,015	931	1,158	4,229	5,510
Adjusted EBITDA	(34)	(6)	38	92	791
Exceptional items	(11)			(11)
EBITDA	(45)	(6)	38	81	791

shipments
(000t)
Average steel	2,390	2,414	3,035	2,626	3,358
selling price
(EUR/t)

which was higher than volume increase and inventory valuation effect

(in millions of Euros, unless otherwise stated)	Q4 23	Q3 23	Q4 22	12M 23	12M 22
Sales	રે રે જે ર	510	518	2,255	2,779
EBITDA	17	1	(4)	24	ਰੇਤੋ
Depreciation & amortization	(4)	(3)	(4)	(14)	(14)
Operating	13	(2)	(8)	10	79

(in millions of Euros, unless otherwise stated)	Q4 23	Q3 23	Q4 22	12M 23	12M 22
Sales	242	177	184	889	665
EBITDA	19	2	12	49	53
Depreciation & amortization	(1)	(3)	(1)	(a)	(a)
Operating income / (loss)	18	(1)	11	40	44
Steel shipments (000t)	9	б	7	33	27
Average steel selling price	25,000	28,684	24,619	25,527	23,518

(in millions of Euros, unless otherwise stated)	Q4 23	Q3 23	Q4 22	12M 23	12M 22
Sales	456	430	437	1,977	2,428
Adjusted EBITDA	ર ર	17	25	156	139
Exceptional items					(23)
EBITDA	ર ર	17	ਟ ਦ	1 56	86
Depreciation, amortization and impairment	(20)	(21)	(15)	(72)	(ટવ)
Operating income / (loss)	45	(4)	40	84	27

• On December 5, 2023, Aperam announced that long-time customer BSH Hausgeräte GmbH, a leader in the home appliance industry, will use Aperam infinite™ near-zero carbon premium stainless steel for the first time in its dishwasher production.
• On December 14, 2023, Aperam announced that Nexa Resources advanced in the acquisition of 10,000 tons of bio-oil from Aperam BioEnergia to reduce emissions when producing zinc oxide.
• On January 8, 2024, Aperam announced its financial calendar for 2024.

On February 9, 2024, Aperam announced its dividend payment schedule for 2024.

Date	New York	ondon	Luxembour^

(in million of EURO)	December 31,	September 30,	December 31,
ASSETS	2023	2023	2022
Cash & cash equivalents (C)	443	285	457

A+B-C)	491	646	468
Net Financial Debt (D =
Total Liabilities and Shareholders' Equity (excluding Trade Payables)	5,084	5,077	5,082
Total Equity	3,450	3,409	3,392
Non-controlling interest	00	00	7
Equity attributable to the equity holders of the parent	3,442	3,401	3,385
Total Liabilities (excluding Trade Payables)	1,634	1,668	1,690
Other long-term liabilities	71	62	72
Deferred tax liabilities	115	132	131
benefits	153	137	136
Long-term debt, net of current portion (A) Deferred employee	574	591	667
(excluding Trade Payables)	721	746	ર્દિકન
Total Current Liabilities
Accrued expenses and other current liabilities	361	406	426
Short-term debt and current portion of long- term debt (B)	360	340	258
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade Payables)	5,084	5,077	5,082
Other non-current assets Total Assets (net of	131	119	122
Deferred tax assets	213	106	101
Investments in associates, joint ventures and other	8	3	3
Property, plant and equipment (incl. Biological assets)	2,111	2,003	1,910

Exceptional items (D)	(11)			(11)	(23)
EBITDA (C = A- B)	44	19	129	293	1,076
EBITDA marqin (%)	2.8%	1.3%	8.0%	4.4%	13.2%
Depreciation, amortization and impairment (B)	(54)	(22)	(48)	(204)	(186)
Operating income / (loss) (A)	(10)	(36)	81	89	890
Operating margin (%)	(0.6%)	(2.5%)	5.0%	1.4%	10.9%
Results from associates and other investments	(1)			(2)	(1)
Financing income / (costs), (net)	(37)	(19)	(116)	30	(137)
Income / (loss) before taxes and non- controlling interests	(48)	(22)	(35)	117	752
Income tax benefit / (expense)	118	13	35	87	(126)
Effective tax rate %	248.7%	23.7%	99.7%	(73.9)%	16.7%
Net income / (loss) including non-controlling interests	70	(42)		204	626
Non-controlling interests				(1)	(1)
Net income / (loss) attributable to equity holders of the parent	70	(42)		203	625
Basic earnings per share (EUR)	0.97	(0.59)		2.81	8.33
Diluted earnings per share (EUR)	0.96	(0.58)		2.79	8.29
Weighted average common shares outstanding (in thousands)	72,249	72,249	72,194	72,222	75,062

		Three Months Ended			Twelve Months Ended
(in million of EURO)	December 31, 2023	September 30, 2023	December 31, 2022	December 31, 2023	December 31, 2022
Operating income / (loss)	(10)	(36)	81	89	390
Depreciation, amortization and impairment	54	ਦੇ ਦੇ	48	204	186
Change in working capital	289	(21)	197	248	(258)
Income tax paid	(3)	(2)	(31)	(34)	(118)
Interest paid, (net)	3	(4)	5	(5)	3
Exceptional items	11			11	53
Other operating activities (net)	(26)	(40)	(91)	(42)	(114)
Net cash provided by (used in) operating activities (A)	318	(48)	209	471	642
Purchase of PPE and intangible assets (CAPEX)	(93)	(ટર)	(137)	(250)	(285)
Purchase of biological assets and other investing activities (net)	(8)	(32)	(3)	(23)	(12)
Net cash used in investing activities (B)	(101)	(87)	(140)	(303)	(297)
Proceeds from / (Payments to) to banks and long term debt	5	38	(16)	8	(୧୦)
Purchase of treasury stock (share buy back)			(8)		(194)
Dividends paid	(36)	(37)	(36)	(145)	(151)
Other financing activities (net)	(3)	(4)	(4)	(15)	(14)

(C = A+B)
-----------

			Appendix 1a – Health & Safety statistics

	Three Months Ended
Health & Safety Statistics	December 31, 2023	September 30, 2023	June 30, 2023
Frequency Rate	2.1	1.4	2.8

Year Ending December 31, 2023	Stainless & Electrical Steela, b	Services & Solutions	Alloys & Specialties	Recycling & Renewable S	Others & Eliminatio ns	Total
Operation al informatio ח
Shipment (000t)	1,550	647	33	1,373	(1,405)	2,198
Average selling price (EUR/ t)	2,626	3,345	25,527	1,440		2,999

EDITUH
Exceptional items	(11)					(11)
EBITDA	81	24	49	156	(17)	293
Depreciatio n & amortizatio n	(106)	(14)	(9)	(72)	(3)	(204)
Operating income / (loss)	(25)	10	40	84	(20)	89

Year Ending December 31, 2022	Stainless & Electrical Steela,b	Services & Solutions	Alloys & Specialties	Recycling & Renewable S	Others & Eliminatio ns	Total
Operation al informatio n
Shipment (000t)	1,600	642	27	1,358	(1,318)	2,309
Average selling price (EUR/ t)	3,358	4,164	23,518	1,788		3,532

EDITUH
Exceptional items				(23)		(23)
EBITDA	791	ਰੇਤੋ	53	86	ਟ ਤੋ	1,076
Depreciatio n, amortizatio n & impairment	(102)	(14)	(a)	(בנ)	(2)	(186)
Operating income	689	79	44	27	51	890

Quarter Ending December 31, 2023	Stainless & Electrical Steel	Services & Solutions	Alloys & Specialties	Recycling & Renewable S	Others & Eliminatio ns	Total
Operation al informatio n
Shipment (000t)	407	160	9	337	(372)	541
Average selling price (EUR/ t)	2,390	3,157	25,000	1,353		2,867

EDITUH
Exceptional items	(11)					(11)
EBITDA	(45)	17	19	୧୮	(12)	44
Depreciatio n & amortizatio n	(28)	(4)	(1)	(20)	(1)	(54)
Operating income / (loss)	(73)	13	18	45	(13)	(10)

Quarter Ending Septembe r 30, 2023	Stainless & Electrical Steel	Services & Solutions	Alloys & Specialties	Recycling & Renewable S	Others & Eliminatio ปร	Total
Operation al informatio n
Shipment (000t)	371	157	6	310	(328)	516
Average selling price (EUR/ t)	2,414	3,125	28,684	1,387		2,835

Depreciatio
n &	(27)	(3)	(3)	(21)	(1)	(ટર)
amortizatio
n
Operating
income	(33)	(2)	(1)	(4)	4	(36)
(loss)

		Three Months Ended	Twelve Months Ended
(in million of EURO)	December 31, 2023	September 30, 2023	December 31, 2022	December 31, 2023	December 31, 2022
Net income / (loss)	70	(42)		203	625
Exceptional items	11			11	53
Net recognition of deferred tax assets on tax losses carried forward and other tax benefits	(101)		(17)	(101)	(21)
Deferred tax effect on exceptional items	(3)			(3)	(12)
Adjusted Net income / (loss)	(23)	(42)	(17)	110	615
Basic earnings per share (EUR)	0.97	(0.59)		2.81	8.33
Adjusted Basic earnings per share (EUR)	(0.32)	(0.59)	(0.23)	1.52	8.19

Ⓡ

2022 LTI frequency rate has been recast including Aperam Recycling.

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