Acerinox S A : Results First quarter 2024

Translation of the original in Spanish. In case of any discrepancy, the Spanish version prevails.

Results

First quarter

20

(conference call)

Results First Quarter 2024

Presentation of First Quarter 2024 results

Acerinox will present its First Quarter 2024 results today, April 25, at 10:00 a.m. (CEST), led by the Chief Financial Officer, Miguel Ferrandis, who will be accompanied by the Investor Relations team.

To join the presentation by telephone, please connect 5-10 minutes before the event by using one of the following numbers:

From Spain:	From the US:
919 01 16 44. PIN: 497548	1 646 664 1960. PIN: 497548
From the United Kingdom (local):	All other countries:
020 3936 2999. PIN: 497548	[phone]. PIN: 497548

You can watch the presentation through the Shareholders and Investorssection of the Acerinox website (www.acerinox.com).

Both the presentation and all audiovisual material will be available on the Acerinox website.

Highlights

"Acerinox improved its quarterly results and achieved a significant reduction in debt compared to the last quarter of 2023."

1

Results First Quarter 2024

First quarter 2024

• The Group's TIR accident rate decreased by 3% compared to the end of 2023.
• Melting shop production, at 461,001 tons, decreased by 5% compared to the 4th quarter of 2023 (14% down on the 1st quarter of 2023) due to the strike that began at Acerinox Europa in early February.
• Revenue, EUR 1,481 million, decreased by 3% compared to the 4th quarter of 2023 (17% below the 1st quarter of 2023).
• EBITDA, which totaled EUR 111 million, was 15% higher than in the 4th quarter of 2023 (51% below the 1st quarter of 2023).

• Operating cash flow was EUR 188 million, with a reduction in working capital of EUR 63 million.
• Acerinox paid an interim dividend of EUR 0.31/share for fiscal year 2023 on January 26, 2024.
• The Group's net financial debt, totaling
  EUR 234 million, decreased by EUR 107 million with respect to December 31, 2023.
• On April 16, Haynes International's shareholders approved North American
  Stainless's proposed acquisition of Haynes.

Outlook

The American market and the high-performance-alloys market remain stable, while that in Europe has not improved even with the reduction in supply.

Despite the company's efforts to resolve the conflict at Acerinox Europa, there are no guarantees that it will be resolved in the short term.

Given these circumstances, and in view of our order book, we expect EBITDA to be slightly higher in the second quarter than in the first.

2

Results First Quarter 2024

Key economic and financial figures

Consolidated Group

First quarter

2024 2023 Changes 2024/2023

Melting shop production (thousands of tons)	461	534	-14%
Net sales (million EUR)	1,481	1,782	-17%
EBITDA (million EUR)	111	226	-51%
% of sales	7%	13%
EBIT (million EUR)	71	182	-61%
% of sales	5%	10%
Profit/loss before tax and non-controlling interests (million EUR)	71	179	-60%
Profit/loss after tax and non-controlling interests (million EUR)	53	136	-61%
Depreciation and amortization (million EUR)	41	43	-4%
No. of employees at period-end	8,245	8,286	0%
Net financial debt (million EUR)	234	605	-61%
Gearing ratio (%)	9%	23%	-61%
No. of shares (millions)	249	260	-4%
Shareholder remuneration (per share)	0.31	0.30	3%
Average daily volume of trading (millions of shares)	0.82	1.24	-34%
Income/loss per share after tax and minority interests	0.21	0.52	-59%

				First quarter
		Consolidated		High-	Consolidated
			performance
		Group		Group
			alloys
Million EUR
Melting shop production (thousands of tons)	440	21	461
Net sales	1,109	378	1,481
EBITDA		80		31	111
EBITDA margin		7%		8%	7%
Depreciation and amortization	-32	-7	-41
EBIT	49	25	71
EBIT margin	4%	7%	5%

3

Results First Quarter 2024

Consolidated Group results

Data for the first quarter show an improvement over the fourth quarter of 2023, despite the strike at Acerinox Europa.

During the first quarter of 2024, Acerinox Europa incurred an EBTIDA loss of EUR 31 million, resulting from the strike and the market situation.

Revenue in the first quarter, EUR 1,481 million, was 3% lower than the previous quarter due to fewer shipments.

The following table shows the most important figures:

	Q1	Q1	Q4		% Q1 24	% Q1 24
Million EUR	2024		2023		2023			/ Q1 23	/ Q4 23
Melting shop production (thousands of tons)	461		534		486		-14%		-5%
Net sales	1,481		1,782		1,529			-17%		-3%
EBITDA	111		226		96			-51%		15%
EBITDA margin	7%		13%		6%
Depreciation and amortization	-41		-43		-44			-4%		-6%
Adjusted EBIT (1)	71		182		52		-61%		38%
Adjusted EBIT margin (1)	5%		10%		3%
EBIT	71		182		-105		-61%		---
EBIT margin	5%		10%		-7%
Profit/loss before tax	71		179		-111		-60%		---
Income/loss after tax and non-controlling	53		136		-119			-61%		---
interests
Operating cash flow	188		-19		260			---		-28%

Net financial debt

234

605

341

-61%

-31%

1. Does not include the impairment of assets at Bahru Stainless amounting to EUR 156 million in Q4 2023.

Quarterly EBITDA, which totaled EUR 111 million, was 15% higher than that of the previous quarter. EBITDA margin was 7%.

Profit after tax and non-controlling interests amounted to EUR 53 million (in the fourth quarter of 2023, after impairment of Bahru Stainless's assets, it was EUR -119 million).

There was a noteworthy debt reduction of EUR 107 million (-31%) compared to December 31, 2023.

4

Results First Quarter 2024

Cash generation

The decrease in operating working capital contributed to a Group operating cash flow of EUR 188 million.

Working capital decreased by EUR 63 million as a result of the significant inventory reduction of EUR 89 million, mainly in the high performance alloys division..

Following investment payments of EUR 36 million, free cash flow amounted to EUR 152 million. An interim dividend was paid for financial year 2023 in the amount of EUR 77 million.

Cash flow (million EUR)

	Jan - Mar	Jan - Dec	Jan - Mar
	2024	2023	2023
EBITDA	111	703	226
Changes in working capital	63	79	-173
Corporate income tax	-1	-233	-53
Finance costs	-2	-4	-1
Other adjustments	18	-65	-18
OPERATING CASH FLOW	188	481	-19
Payments for investments	-36	-175	-43
FREE CASH FLOW	152	307	-62
Dividends and treasury shares	-77	-152	-75
CASH FLOW AFTER DIVIDENDS	75	155	-137
Translation differences	33	-56	-27
Subsidies and other	-1	0	-1
Changes in net financial debt	107	99	-165

5

Results First Quarter 2024

Balance sheet

ASSETS	LIABILITIES

Million EUR Mar 24 2023 Mar 23 Change

Million EUR Mar 24 2023 Mar 23

Change

Non-
current	1,802	1,777	1,902	1%
assets

Equity	2,557	2,463	2,604	4%

Current		4,355		4,322		4,660		1%
assets

Non-
current	1,623	1,733	1,850	-6%
liabilities

Inventories		1,772		1,861		2,297		-5%		Bank		1,171		1,291		1,419		-9%
					borrowings
		625		618		769		1%		Other non-		452		442		431		2%
Receivables						current
										liabilities
Customers		565		560		687		1%
Other		60		58		82		5%		Current		1,977		1,902		2,108		4%
receivables						liabilities
Cash on		1,912		1,794		1,563		7%		Bank		975		844		749		16%
hand and in
					borrowings
banks
Other										Trade		765		787		1,098		-3%
									payables
current		46		50		31		-7%
					Other
financial							236		272		260		-13%
									current
assets
									liabilities

Total	6,157	6,099	6,562	1%
assets

Total
equity	6,157	6,099	6,562	1%
and

liabilities

The Group's net financial debt decreased significantly in the first quarter of the year. It was reduced by 31% (EUR 107 million) to EUR 234 million. This is the lowest level of debt since 2001 and it reflects the Group's strategy of maintaining both the pace of investments (organic and inorganic) and shareholder remuneration, both funded by cash generated.

As of March 31, 2024, Acerinox's liquidity amounted to EUR 2,608 million. Of these, EUR 1,912 million were in cash, and EUR 696 million were in financing.

6

Results First Quarter 2024

Stainless Steel Division

Stainless steel market

United States

Apparent consumption of flat products increased by 8% through February, according to our estimates.

Also according to our estimates, the share of flat product imports stabilized at around 25%.

Inventories at distributors remain low compared to the average of recent years.

Section 232 remains in force and there is no expectation of a reduction in protectionist measures.

Europe

The European market continues to be weak and has not experienced the expected recovery. Apparent consumption of flat products fell by 4% through February, per our estimates.

Imports decreased by 24% compared to the same period last year and accounted for 15% of the total market.

Inventory levels remain below the average of recent years.

7

Results First Quarter 2024

Stainless Steel Division production

The Group's steel production in both melting shop and cold-rolling decreased compared to the previous quarter and the same period last year, mainly as a consequence of the production shutdown at the Acerinox Europa plant due to the strike. The rest of the factories have increased their production compared to the first and fourth quarter of last year.

			2023			2024	Change
	Q1	Q2	Q3	Q4	12	Q1	Q1 24 /	Q1 24 /
Thousands of tons	months	Q1 23	Q4 23
Melting shop	515	465	422	468	1,869	440	-15%	-6%
Cold-rolling	311	304	283	328	1,225	283	-9%	-14%
Long products	42	36	32	28	138	32	-22%	14%
(hot-rolling)

Stainless Steel Division results

					Q1 2024			Q1 2023		Q4 2023			% Q1 24 /		% Q1 24 /
Million EUR								Q1 23		Q4 23
Melting shop production (thousands		440			515		468		-15%		-6%
of tons)
Net sales		1,109			1,476		1,166		-25%		-5%
	EBITDA				80				197			50				-59%			59%
	EBITDA margin				7%				13%			4%
Depreciation and amortization		-32			-35		-35		-8%		-8%
Adjusted EBIT (1)		49			161		15		-70%		219%
Adjusted EBIT margin (1)		4%			11%		1%
	EBIT				49				161			-141				-70%			---
	EBIT margin				4%				11%			-12%
	Operating cash flow				112				113			179				-1%			-37%
	(before investments)

1. Does not include the impairment of assets at Bahru Stainless amounting to EUR 156 million in Q4 2023.

The figures for the first quarter of 2024 were affected by the circumstances at Acerinox Europa mentioned above.

First quarter revenue of EUR 1,109 million fell 5% compared to the previous quarter.

Quarterly EBITDA was EUR 80 million, with a margin on sales of 7%. During the first quarter of 2024, Acerinox Europa incurred an EBITDA loss of EUR 31 million, resulting from the strike and the market situation.

Operating cash flow this quarter amounted to EUR 112 million.

Working capital decreased by EUR 11 million, thanks to the reduction of inventories and trade debtors.

8

Results First Quarter 2024

Million EUR

EBITDA

Jan - Mar

2024

80

Jan - Dec	Jan - Mar
2023	2023
533	197

Changes in working capital	11	206	-10
Corporate income tax	-2	-230	-52
Finance costs	3	17	3
Other adjustments	20	-50	-24

OPERATING CASH FLOW

112

475113

9