BUSINESS YEAR 2009 RESULTS Madrid, 26 February 2010
WORLD PRODUCTION OF STAINLESS STEEL Thousand Mt. 30,000 28,000 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Compound annual growth rate Years 1950-2009: +5.5% 50 60 70 80 90 00 09 Source: VALE INCO e ISSF
OFFICIAL NICKEL PRICE IN THE L.M.E. (Years 2008 2009) Average price: cash / three months USD/Mt. 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 J F M A M J J A S O N D J F M A M J J A S O N D
OFFICIAL NICKEL PRICE IN THE L.M.E. (1990 2009) Monthly average values (USD/Mt. Ni.) 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 Average 1990 2005: 8,062 USD/Mt. Ni 10,000 5,000 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
FERROCHROME QUARTERLY AVERAGE PRICES (Metal Bulletin) US / Lb. Cr. 240 220 200 180 160 140 120 100 80 60 40 20 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (1999 2009) USD/Mt, final price, alloy surcharge included 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 USA GERMANY ASIA (since year 2008; average of China,Taiwan and South Korea) 2,000 1,500 1,000 99 00 01 02 03 04 05 06 07 08 09 SOURCE: Metal Bulletin Research Stainless Steel Monthly
STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (1999 2009) /Mt GERMAN MARKET 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 99 00 01 02 03 04 05 06 07 08 09 Base Price Alloy Surcharge SOURCE: MBR
STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (1999 2009) USD/Mt 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 NORTH AMERICAN MARKET 99 00 01 02 03 04 05 06 07 08 09 Base Price Alloy Surcharge SOURCE: MBR
PRODUCTION OF ACERINOX GROUP Mt Year 2009 FLAT PRODUCTS ACERINOX NAS COLUMBUS TOTAL Variation over 2008 MELTING SHOP 577,861 682,235 546,261 1,806,357-11.6% HOT ROLLING 485,274 605,241 537,718 1,628,233-9.3% COLD ROLLING 374,488 430,814 265,972 1,071,274-17.9% LONG PRODUCTS ROLDAN NAS TOTAL Variation over 2008 HOT ROLLING 78,567 62,525 141,092-30.2% FINISHED PRODUCTS 71,783 56,800 128,582-30.9%
QUARTERLY EVOLUTION OF ACERINOX GROUP PRODUCTIONS MELTING SHOP (Mt) 700,000 600,000 626,340 605,722 527,419 610,867 500,000 400,000 339,574 434,962 420,953 300,000 284,375 200,000 100,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year 2008 Year 2009
EVOLUTION OF ACERINOX GROUP NET SALES Million 7.000 6.500 6.000 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.993 Consolidated Group Trading Companies N.A.S. ACERINOX S.A. 2.000 1.500 1.000 500 0 00 01 02 03 04 05 06 07 08 09 1.510 1.104 984 752 196 Columbus Roldan + Inoxfil
GEOGRAPHICAL DISTRIBUTION OF ACERINOX GROUP NET SALES YEAR 2009 YEAR 2008 Europe Oceania 0.3% 40.8% Oceania 0.1% Europe 44.1% Africa 5.4% Asia 17.7% Americas 35.8% Africa 5.8% Asia 13.6% Americas 36.4%
EVOLUTION OF THE RESULT AFTER TAXES AND MINORITIES. ACERINOX GROUP Million 550 500 450 400 350 300 250 200 150 100 50 0-50 -100-150 -200-250 503.0 312.3 154.5-10.5 2005 2006 2007 2008 2009-229.2
QUARTERLY EVOLUTION OF THE RESULT AFTER TAXES AND MINORITIES. ACERINOX GROUP Million 150 100 50 66.7 87.9 0-50 19.4 6.4 1º T 2º T 3º T 4ºT 1º T 2º T 3º T 4ºT -29.2-100 -93.0-150 -200-135.8-162.0 2008 2009
QUARTERLY CONDENSED PROFIT & LOSS ACCOUNT ACERINOX CONSOLIDATED GROUP Year 2009 Million 1º Q. 09 2º Q. 09 3º T.09 4ºT.09 2009 2008 Variation Net sales 617.00 674.94 918.45 783.02 2,993.41 5,050.57-40.7% Gross margin 70.35-37.14 261.96 244.00 539.17 1,008.18-46.5% % over sales 11.4% -5.5% 28.5% 31.2% 18.0% 20.0% EBITDA (*) -97.97-184.19 62.29 54.86-165.01 299.68-155.1% % over sales -15.9% -27.3% 6.8% 7.0% -5.5% 5.9% Gross operating result -97.97-209.88 62.29 54.86-190.69 171.27-211.3% % over sales -15.9% -31.1% 6.8% 7.0% -6.4% 3.4% EBIT -128.24-240.83 30.71 19.20-319.16 47.97-765.3% % over sales -20.8% -35.7% 3.3% 2.5% -10.7% 0.9% Result before taxes January-December -141.22-247.83 25.68 14.79-348.58-16.75 1981.5% Result after taxes and minorities -92.98-161.99 19.36 6.40-229.21-10.45 2092.4% Depreciation 29.19 30.78 31.57 33.54 125.09 121.86 2.7% Net cash flow -63.79-131.21 50.93 39.94-104.12 111.40-193.5% (*) EBITDA is defined as the operating result excluding depreciation and provisions
CONDENSED BALANCE SHEET ACERINOX CONSOLIDATED GROUP Year 2009 ASSETS LIABILITIES Million 2009 2008 Variation Million 2009 2008 variation Non-current assets 2,002.06 1,844.84 8.5% Equity 1,752.52 2,020.55-13.3% Current assets 1,615.72 1,881.89-14.1% Non-current liabilities 800.07 912.35-12.3% - Inventories 1,154.45 1,388.38-16.8% - Interest-bearing loans and borrowings 543.18 615.76-11.8% - Debtors 371.19 373.37-0.6% - Other non-current liabilities 256.89 296.59-13.4% Trade debtors 304.17 294.60 3.3% Other debtors 67.01 78.77-14.9% Current liabilities 1,065.19 793.84 34.2% - Cash and other current assets 90.09 120.14-25.0% - Interest-bearing loans and borrowings 604.63 402.76 50.1% - Trade creditors 306.15 245.08 24.9% - Other current liabilities 154.42 146.00 5.8% TOTAL ASSETS 3,617.79 3,726.73-2.9% TOTAL EQUITY AND LIABILITIES 3,617.79 3,726.73-2.9%
31 st DECEMBER 2009 RESULTS CONSOLIDATED GROUP 2009 2008 Variation Net Sales 2,993,409 5,050,571-40.7% EBITDA (*) -165,007 299,684 --- EBIT (**) -319,158 47,971 --- Profit before taxes and minorities -348,582-16,746 1981.5% Depreciation 125,090 121,859 2.7% Gross Cash Flow -223,492 105,113 --- Profit after taxes and minorities -229,206-10,455 2092.4% Net Cash Flow -104,116 111,404 --- (*) EBITDA is defined as the operating result excluding depreciation and provisions (**) EBIT is defined as the net operating result
MAIN RATIOS AND MAGNITUDES OF THE CONSOLIDATED GROUP CONSOLIDATED GROUP 2009 2008 Cash Flow per share -0.42 0.44 Earning per share -0.92-0.04 Gross margin 18.0% 20.0% EBITDA margin (*) -5.5% 5.9% Operating margin EBIT -10.7% 0.9% ROE -13.1% -0.5% ROCE -11.3% 1.6% GEARING 61.3% 46.5% Net Debt / EBITDA -6.51 3.13 Book Value at 31-Dec 7.03 7.95 (*) EBITDA is defined as the operating result excluding depreciation and provisions
EVOLUTION OF THE CONSOLIDATED GROUP EBITDA (*) Million (% over sales) 1,000 900 800 700 600 500 400 300 200 100 0-100 -200-300 457.0 10.8 962.7 17.1 752.2 10.9 Average 2005 2009: 461.3 (9.3%) 299.7 5.9 2005 2006 2007 2008 2009-5.5-165.0 (*) EBITDA is defined as the operating result excluding depreciation and provision
INVESTMENTS IN THE CONSOLIDATED GROUP Valores Thousand medios mensuales (USD/Tm. Ni.) Tm. en miles 2009 2008 - ACERINOX, S.A. 40,859 92,669 - NAS 45,996 164,845 - COLUMBUS 29,784 54,808 - BAHRU 101,977 --- - ROLDAN and INOXFIL 1,682 8,506 - SPANISH TRADING COMPANIES 138 1,301 - OVERSEAS TRADING COMPANIES 10,449 20,121 TOTAL 230,886 342,250
EVOLUTION OF THE STOCK EXCHANGE MARKET ACERINOX, S.A. AND IBEX 35 Daily percentage data, year 2009 40% 30% 20% +29.8% +27.8% IBEX 35 10% 0% ACERINOX -10% -20% -30% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
EVOLUTION OF THE STOCK EXCHANGE MARKET ACERINOX, S.A. AND IBEX 35 Weekly percentage data 150% 100% ACERINOX 50% 46.8% IBEX 35 0% 2.6% -50% -100% 00 01 02 03 04 05 06 07 08 09
MARKET CAPITALIZATION OF ACERINOX, S.A. 2000-2009 Figures in million 7,000 6,000 5,000 4,000 3,622 3,000 2,000 1,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
RETURN TO SHAREHOLDERS / share 0.55 0.50 0.45 0.45 0.48 0.03 0.45 0.40 0.35 0.34 0.34 0.10 0.10 0.10 Attendance bonus AGM 0.30 0.25 0.08 0.08 Issue Premium Refund 0.20 0.35 0.35 0.35 Dividend 0.15 0.26 0.26 0.10 0.05 0.00 05 06 07 08 09
EXCELLENCE PLAN 2009 2010 Valores medios mensuales (USD/Tm. Ni.) Tm. en miles 10 chapters Internal benchmarking Realistic targets Recurrent savings: 133 million Already achieved: 64% (85 million )
HUMAN RESOURCES Valores medios mensuales (USD/Tm. Ni.) Tm. en miles 2009 2008 Variation - ACERINOX, S.A. 2,576 2,667-3.41% - NAS 1,340 1,377-2.69% - COLUMBUS 1,736 1,920-9.58% - BAHRU STAINLESS 24 0 --- - ROLDAN and INOXFIL 586 626-6.39% - SPANISH TRADING COMPANIES 411 461-10.85% - OVERSEAS TRADING COMPANIES 655 459 42.70% TOTAL GROUP 7,328 7,510-2.42%
STRATEGIC PLAN 2008-2020
COMMERCIAL NETWORK OF ACERINOX GROUP Flat Products Facility (3) Long Products Facility (3) Service Centre (23) Warehouses (36) Commercial Office (30)
BAHRU STAINLESS
STRATEGIC LOCATION
LAND OF THE BAHRU STAINLESS FACTORY
GENERAL PLANT LAY-OUT
GENERAL PLANT LAY-OUT: 1st & 2nd PHASE
BAHRU STAINLESS: PIER
BAHRU STAINLESS: PIER
BAHRU STAINLESS
BAHRU STAINLESS
PRODUCTION CAPACITY OF THE GROUP AND WORLD CONSUMPTION PER AREAS (Million Mt) Melting Hot Rolling Cold Rolling Long Prod. 1.4 1.2 0.8 0.2 Melting Hot Rolling Cold Rolling Long Prod. 1.1 0.9 0.7 0.2 Melting Hot Rolling Cold Rolling Long Prod. 3.5 3.1 2.1 0.4 Melting Hot Rolling Cold Rolling 1.0 1.0 0.5 Melting Hot Rolling Cold Rolling 1.0 1.0 0.6 CONSUMPTION AMERICA 2.5 CONSUMPTION EUROPE + AFRICA 7.2 CONSUMPTION ASIA + OCEANIA 13.2
COMPARISON BETWEEN GDP AND STAINLESS STEEL CONSUMPTION PER CAPITA Year 2008 Source: Vale Inco, FMI 50 45 UK USA France Canada Germany 40 Japan Italy 35 Spain GDP ( 000 USD/capita) 30 25 20 15 10 5 0 South Korea Taiwan Mexico Russia Malaysia Brasil South Africa Indonesia Thailand India China Vietnam 0 10 20 30 40 Stainless consumption kg/capita