Luxembourg, May 5, 2015 - Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris: APAM and NYRS: APEMY), today announced results for the three month period ending March 31, 2015

Timoteo Di Maulo, CEO of Aperam, commented:
“With the best quarterly net result since the spin-off, the first quarter reflects Aperam’s successful implementation of the Leadership Journey®5 and the Top Line strategy.

Looking forward, despite uncertainties regarding the current economic environment and the nickel price, we are convinced that we will continue to deliver solid set of performance.”

Highlights
Health and Safety frequency rate2 of 1.3x in Q1 2015 compared to 1.8x in Q4 2014.
Shipments of 469 thousand tonnes in Q1 2015 compared to shipments of 439 thousand tonnes in Q4 2014.
EBITDA3 of USD 133 million in Q1 2015, compared to EBITDA of USD 117 million in Q4 2014.
Net Income of USD 42 million in Q1 2015, compared to Net Income of USD 19 million in Q4 2014.
Basic earnings per share of USD 0.54 in Q1 2015.
Cash flow from operations amounted to USD 80 million in Q1 2015.
Net debt4 of USD 508 million on March 31, 2015, representing a gearing of 22% compared
to a net debt of USD 536 million on December 31, 2014.

Prospects
EBITDA in Q2 2015 is expected to increase compared to EBITDA in Q1 2015.
Net debt to slightly decrease in Q2 2015.

Leadership Journey update

Announcement of additional Leadership Journey® gains target of USD 100 million to reach USD 575 million by the end of 2017.
Financial Highlights (on the basis of IFRS)
(USDm) unless otherwise stated Q1‘15 Q4’14 Q1‘14
Sales 1,258 1,291 1,394
EBITDA 133 117 129
Operating income 86 53 54
Net income 42 19 19

Steel shipments (000t) 469 439 475
EBITDA/tonne (USD) 284 267 272
Basic earnings per share (USD)m 0.54 0.24 0.24

Health & Safety results analysis

Health and Safety performance based on Aperam personnel figures and contractors lost time injury frequency rate2, was 1.3x in the first quarter of 2015 compared to 1.8x in the fourth quarter of 2014.

Financial results analysis

Sales in the first quarter of 2015 decreased by 3% to USD 1,258 million compared to USD 1,291 million in the fourth quarter of 2014. Shipments in the first quarter of 2015 were at 469 thousand tonnes compared to 439 thousand tonnes in the fourth quarter of 2014.

EBITDA was USD 133 million in the first quarter of 2015 compared to EBITDA of USD 117 million in the fourth quarter of 2014. Despite increasing pressure on selling prices, EBITDA increased quarter on quarter as a result of better activity in Europe and the contribution of the Leadership Journey® and the Top Line strategy. The Leadership Journey® has continued to progress over the quarter and has contributed a total amount of USD 440 million to EBITDA since the beginning of 2011.

Depreciation and amortization expense in the first quarter of 2015 was USD 47 million.

Aperam had an operating income in the first quarter of 2015 of USD 86 million compared to USD 53 million in the previous quarter.

Net interest expense and other net financing costs in the first quarter of 2015 were USD 35 million, including USD 12 million of financing costs and USD 14 million of non-recurring expenses. These extraordinary items were related to the early redemption of the USD 250 million Bonds due 2018 on April 1, 2015 and the early amortization of arrangement fees of the High Yield Bonds 2018 and the USD 400 million borrowing base facility which has been replaced with a new facility of USD 500 million in March 2015. Realized and unrealized foreign exchange and derivative gains were USD 3 million in Q1 2015.

The Company recorded a net income of USD 42 million, inclusive of an income tax expense of USD 12 million, in the first quarter of 2015.

Cash flows from operations in the first quarter of 2015 were USD 80 million, with a working capital increase of USD 43 million. CAPEX in the first quarter was USD 34 million.

As of March 31, 2015, shareholders’ equity was USD 2,276 million and net financial debt4 was USD 508 million (gross financial debt as of March 31, 2015 was USD 784 million and cash and cash equivalents were USD 276 million).

The Company had liquidity of USD 776 million as of March 31, 2015, consisting of cash and cash equivalents of USD 276 million and undrawn credit lines6 of USD 500 million.

Operating segment results analysis
Stainless & Electrical Steel

The Stainless & Electrical Steel segment had sales of USD 1,021 million in the first quarter of 2015. This represents an increase of 1% compared to sales of USD 1,008 million in the fourth quarter of 2014. Shipments during the first quarter were 462 thousand tonnes compared to shipments of 412 thousand tonnes in the previous quarter. The segment had EBITDA of USD 110 million in the first quarter of 2015, including USD 4 million positive results from sale of electricity surplus in Brazil, compared to USD 94 million in the fourth quarter of 2014, including a positive USD 13 million from the sale of electricity surplus. Despite the impact of the traditional seasonality on volumes in Brazil, the operational profitability improved in South America mainly due to the continuous contribution of the Leadership Journey® and Top Line strategy. The performance in Europe improved mainly as a result of better activity as well as the good progress on Top Line strategy and Leadership Journey® actions. Overall, average steel selling prices for the Stainless & Electrical Steel segment were lower for the quarter.

Depreciation and amortization expense was USD 40 million in the first quarter of 2015.

The Stainless & Electrical Steel segment had an operating income of USD 70 million during the first quarter of 2015 compared to USD 37 million in the fourth quarter of 2014.

Services & Solutions
The Services & Solutions segment had a 10% increase in sales during the quarter, from USD 526 million in the fourth quarter of 2014 to USD 580 million in the first quarter of 2015. In the first quarter of 2015, shipments were 200 thousand tonnes compared to 165 thousand tonnes in the previous quarter. The Services & Solutions segment had lower average selling prices for the period compared to the previous quarter.

The segment had EBITDA in the first quarter of 2015 of USD 18 million compared to EBITDA of USD 13 million in the fourth quarter of 2014. The increase of volumes and the Top Line strategy enabled to more than compensate the negative impact of the nickel price decrease.

Depreciation and amortization expense in the first quarter of 2015 was USD 5 million.

The Services & Solutions segment had an operating income of USD 13 million in the first quarter of 2015 compared to USD 8 million in the fourth quarter of 2014.

Alloys & Specialties
The Alloys & Specialties segment had sales in the first quarter of 2015 of USD 154 million, representing a decrease of 7% compared to USD 165 million in the fourth quarter of 2014. Shipments increased from 9 thousand tonnes in the fourth quarter of 2014 to 10 thousand tonnes the first quarter of 2015, while average selling prices decreased quarter over quarter.

The Alloys & Specialties segment achieved EBITDA of USD 14 million in the first quarter of 2015 compared to USD 11 million in the fourth quarter of 2014. The EBITDA increased over the quarter as a result of operational performance recovery.

Depreciation and amortization expense in the first quarter of 2015 was USD 2 million.

The Alloys & Specialties segment had operating income of USD 12 million in the first quarter of 2015 compared to USD 10 million in the fourth quarter of 2014.

Recent developments
On March 2, 2015, Aperam announced that Bert Lyssens is appointed Head of Sustainability, Human Resources and Communications effective April 1, 2015. Bert is a Member of Aperam’s Leadership Team and reports to Timoteo Di Maulo, CEO of Aperam.
On April 1, 2015, Aperam early redeemed its High Yield Bond USD 250 million, due in 2018.
On April 3, 2015, Aperam announced the publication of the convening notice for its Annual General Meeting of shareholders to be held on May 5, 2015.
On April 8, 2015, Moody's Investors Service upgraded Aperam’s corporate family rating to Ba2 from Ba3. The outlook is positive.
On April 15, 2015, Aperam announced the publication of its “made for life” report for 2014, which constitutes Aperam's sustainability performance report.
On April 30, 2015, Standard & Poor’s Ratings Services upgraded Aperam's long-term corporate credit rating from ‘BB-’ to ‘BB’. The outlook is stable.

New developments
On May 5, 2015, Aperam announces that the Annual General Meeting of Shareholders of Aperam held in Luxembourg on the same day approved all resolutions on the agenda by a large majority.
On May 5, 2015, Aperam announces tranche 2 of its assets base upgrade with an additional USD 30 million CAPEX program to be implemented by 2016.
On May 5, 2015, Aperam announces expansion of its Leadership Journey® program to reach USD 575 million gains by the end of 2017 targeting further improvement of costs competitiveness and productivity.

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