“Earnings improve on the back of tight cost control, our flexible
multi-product business in Brazil and some economic recovery in Europe”
Luxembourg, November 4, 2020 (07:00 CET) - Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg,
Paris, Brussels: APAM and NYRS: APEMY), announced today results for the three months ending September 30, 2020.
Highlights
? Health and Safety: LTI frequency rate of 2.2x in Q3 2020 compared to 0.6x in Q2 2020
? Steel shipments of 432 thousand tonnes in Q3 2020, 15% increase compared to steel shipments of 376 thousand
tonnes in Q2 2020
? EBITDA of EUR 65 million in Q3 2020, compared to EUR 49 million in Q2 2020
? Net income of EUR 24 million in Q3 2020, compared to EUR 21 million in Q2 2020
? Basic earnings per share of EUR 0.30 in Q3 2020, compared to EUR 0.27 in Q2 2020
? Cash flow from operations amounted to EUR 77 million in Q3 2020, compared to EUR 57 million in Q2 2020
? Free cash flow before dividend of EUR 55 million in Q3 2020, compared to EUR 34 million in Q2 2020
? Net financial debt of EUR 111 million as of September 30, 2020, compared to EUR 123 million as of June 30, 2020
Strategic initiatives
? Leadership Journey®
2
Phase 3: The annualized gains reached EUR 13 million in Q3 2020. Aperam realized cumulative
annualized gains of EUR 184 million at the end of Q3 2020, compared to the target of EUR 200 million by the end of 2020
? Leadership Journey® Phase 4: Target of EUR 150 million gains for the period 2021 - 2023 via a combination of cost,
growth and mix improvement measures
Cash deployment
? Share buy back program: Considering the remaining exceptional COVID related uncertainties, the Board of Directors
has decided to cancel the 2020 share buy back program
Prospects
? EBITDA in Q4 2020 is expected to increase versus Q3 2020
? Net financial debt is expected to decline in Q4 2020
Timoteo Di Maulo, CEO of Aperam, commented:
“Business took a first step returning towards normalization in Q3 which we utilized as all our plants were fully operational. Our
results improved due to a strict cost discipline across all segments, a flexible product mix management in Brazil and with higher
volumes in Europe. Still, a challenging competitive environment persists combined with the threat of another COVID related
slowdown and continued price pressure in Europe. Although we expect an improvement in Q4 some positive drivers might only
prevail for the short term. We have used the crisis to sketch out phase 4 of our Leadership Journey® which will support and
accelerate the recovery to a historic normal level.”
1
Financial Highlights (on the basis of financial information prepared under IFRS)
(in millions of Euros, unless otherwise stated) Q3 20 Q2 20 Q3 19 9M 20 9M 19
Sales 841 818 972 2,708 3,240
Operating income 33 14 43 81 148
Net income attributable to equity holders of the parent 24 21 37 74 119
Basic earnings per share (EUR) 0.30 0.27 0.47 0.93 1.46
Diluted earnings per share (EUR) 0.30 0.27 0.47 0.93 1.46
Free cash flow before dividend and share buy-back 55 34 45 107 141
Net Financial Debt (at the end of the period) 111 123 172 111 172
EBITDA 65 49 79 184 255
EBITDA/tonne (EUR) 150 130 189 148 184
Steel shipments (000t) 432 376 418 1,246 1,384
Health & Safety results
Health and Safety performance based on Aperam personnel figures and contractors’ lost time injury frequency rate was 2.2x in
the third quarter of 2020 compared to 0.6x in the second quarter of 2020.
Financial results analysis for the three-month period ending September 30, 2020
Sales for the third quarter of 2020 increased by 3% to EUR 841 million compared to EUR 818 million for the second quarter of
2020. Steel shipments increased from 376 thousand tonnes in the second quarter of 2020, to 432 thousand tonnes in the third
quarter of 2020.
Volumes in both Europe and Brazil improved from their Q2 lows on the back of the economic recovery.
EBITDA increased during the quarter to EUR 65 million from EUR 49 million for the second quarter of 2020 driven by higher
volumes, strict cost control and our flexible multi-product business in Brazil. Prices in Europe remained under pressure and
amplified by rising raw material costs. This was only partly compensated by the absence of negative inventory valuations.
Depreciation and amortization was EUR (32) million for the third quarter of 2020.
Aperam had an operating income for the third quarter of 2020 of EUR 33 million compared to an operating income of EUR 14
million for the previous quarter.
Financing costs including the FX and derivatives result for the third quarter of 2020 were EUR (4) million, including cash cost of
financing of EUR (3) million.
Income tax expense for the third quarter of 2020 was EUR (5) million.
The Company recorded a net income of EUR 24 million for the third quarter of 2020.

Cash flows from operations for the third quarter of 2020 were positive at EUR 77 million, with a working capital decrease of EUR
42 million. CAPEX for the third quarter was EUR (22) million.
Free cash flow before dividend for the third quarter of 2020 amounted to EUR 55 million.
During the third quarter of 2020, the cash returns to shareholders amounted to EUR 35 million, consisting fully of dividend.
Operating segment results analysis
Stainless & Electrical Steel (1)
(in millions of Euros, unless otherwise stated) Q3 20 Q2 20 Q3 19 9M 20 9M 19
Sales 664 632 771 2,123 2,544
EBITDA 42 43 57 138 188
Depreciation & amortisation (26) (28) (29) (84) (89)
Operating income 16 15 28 54 99
Steel shipments (000t) 417 364 401 1,207 1,320
Average steel selling price (EUR/t) 1,536 1,678 1,861 1,699 1,863
(1) Amounts are shown prior to intra-group eliminations
The Stainless & Electrical Steel segment had sales of EUR 664 million for the third quarter of 2020. This represents a 5%
increase compared to sales of EUR 632 million for the second quarter of 2020. Steel shipments during the third quarter were 417
thousand tonnes, an increase of 15% compared to shipments of 364 thousand tonnes during the previous quarter. Volumes
benefitted from the economic recovery in Europe and our flexible multi-product business in Brazil. Average steel selling prices for
the Stainless & Electrical Steel segment decreased by 8% compared to the previous quarter.
The segment generated EBITDA of EUR 42 million for the third quarter of 2020 compared to EUR 43 million for the second
quarter of 2020. The benefit of higher volumes quarter on quarter and the absence of negative inventory valuation was consumed
by pricing pressure in Europe and higher raw material costs.
Depreciation and amortisation expense was EUR (26) million for the third quarter of 2020.
The Stainless & Electrical Steel segment had an operating income of EUR 16 million for the third quarter of 2020 compared to an
operating income of EUR 15 million for the second quarter of 2020.
Services & Solutions(1)
(in millions of Euros, unless otherwise stated) Q3 20 Q2 20 Q3 19 9M 20 9M 19
Sales 372 310 418 1,132 1,391
EBITDA 10 5 9 24 41
Depreciation & amortisation (3) (4) (2) (10) (8)
Operating income 7 1 7 14 33
Steel shipments (000t) 165 132 166 483 562
Average steel selling price (EUR/t) 2,184 2,212 2,397 2,248 2,358
(1) Amounts are shown prior to intra-group eliminations
The Services & Solutions segment had sales of EUR 372 million for the third quarter of 2020, representing an increase of 20%
compared to sales of EUR 310 million for the second quarter of 2020. For the third quarter of 2020, steel shipments were 165 thousand tonnes compared to 132 thousand tonnes during the previous quarter. The Services & Solutions segment had lower
average steel selling prices during the period compared to the previous period.
The segment generated EBITDA of EUR 10 million for the third quarter of 2020 compared to EBITDA of EUR 5 million in the
second quarter of 2020. EBITDA increased mainly due to a significant 25% increase in volumes quarter on quarter.
Depreciation and amortisation was EUR (3) million for the third quarter of 2020.
The Services & Solutions segment had an operating income of EUR 7 million for the third quarter of 2020 compared to an
operating income of EUR 1 million for the second quarter of 2020.
Alloys & Specialties(1)
(in millions of Euros, unless otherwise stated) Q3 20 Q2 20 Q3 19 9M 20 9M 19
Sales 111 142 128 408 437
EBITDA 10 11 12 30 36
Depreciation & amortisation (3) (1) (3) (7) (7)
Operating income 7 10 9 23 29
Steel shipments (000t) 7 9 8 24 27
Average steel selling price (EUR/t) 16,320 16,038 16,018 16,314 15,796
(1) Amounts are shown prior to intra-group eliminations
The Alloys & Specialties segment had sales of EUR 111 million for the third quarter of 2020, representing a decrease of 22%
compared to EUR 142 million for the second quarter of 2020. Steel shipments decreased by 24% during the third quarter of 2020
at 7 thousand tonnes. Average steel selling prices were higher during the quarter.
The Alloys & Specialties segment achieved EBITDA of EUR 10 million for the third quarter of 2020 compared to EUR 11 million
for the second quarter of 2020. The slightly lower EBITDA was driven by lower volumes. A better mix, strict cost management and
a less negative inventory valuation loss partly compensated for this.
Depreciation and amortisation expense for the third quarter of 2020 was EUR (3) million.
The Alloys & Specialties segment had an operating income of EUR 7 million for the third quarter of 2020 compared to an
operating income of EUR 10 million for the second quarter of 2020.
Recent developments
? On August 11 and August 18, 2020, Aperam announced shareholding notifications by M&G plc for crossing the 5% voting
rights threshold with reference to Transparency Law.
? On September 14, 2020, Aperam announced a change in the organization of the Leadership Team, effective from
September 14, 2020. Ines Kolmsee, CEO of the segment Services & Solutions decided to leave the Company to pursue
other career opportunities. Nicolas Changeur was nominated as CEO of the segment Services & Solutions. Nicolas
Changeur is a member of the Leadership Team, and Chief Marketing Officer for the Group since November 2014.
? On 29 September 2020, 3,700,0000 shares acquired under the 2019 share buyback program were cancelled in line with the
announced purpose of the program. The total number of issued shares as of 29 September 2020 amounts to 79,996,280.
? On September 30, 2020, Aperam strengthened its liquidity profile with the signature of a top-up financing contract where the
EIB will make available to Aperam an amount of EUR 75 million, in addition to the outstanding loan of EUR 100 million, in
relation to the financing of advanced stainless steel manufacturing technologies.

New developments
? On November 4, 2020, Aperam announced Phase 4 of its Leadership Journey® with a target of EUR 150 million gains for
the period 2021 - 2023 via a combination of cost, growth and mix improvement measures.
? On November 4, 2020, Aperam announced that considering the remaining exceptional COVID related uncertainties, the
Board of Directors has decided to cancel the 2020 share buy back program.
? On November 4, 2020, Aperam announced that the Board of Directors of Aperam has decided to co-opt Mr. Sandeep Jalan
(53 years) as director until Aperam’s next general meeting of shareholders, where Mr. Jalan’s election will be submitted for
confirmation to the shareholders. This decision follows the resignation of Mr. Philippe Darmayan from the Board for personal
considerations effective November 3, 2020. Mr. Lakshmi N. Mittal, Chairman of the Board of Directors, commented “I would
like to express my warmest gratitude and appreciation for Philippe’s contribution to Aperam as CEO during the early years of
Aperam, and as a member of the Board of Directors over the last 6 years. I am also very pleased to welcome Sandeep to
the Board of Directors. He will be a valuable addition due to his extensive industrial knowledge, and former CFO role at
Aperam."
Investor conference call / webcast
Aperam management will host a conference call / webcast for members of the investment community to discuss the third quarter
2020 financial performance at the following time:
Date New York London Luxembourg
Wednesday,
November 4, 2020
08:00 am 01:00 pm 02:00 pm
Link to the webcast: https://channel.royalcast.com/aperam/#!/aperam/20201104_1
The dial-in numbers for the call are: international +44 (0) 20 3003 2666 ; USA +1 212 999 6659. The conference password is
Aperam.

A replay of the conference call will be available for one year at https://channel.royalcast.com/aperam/#!/aperam/20201104_1

see & read more on
https://www.aperam.com/sites/default/files/documents/Q3_2020_ER_Press%20Release_EN_0.pdf

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