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1© Aperam 1

Global Steel and Mining Conference, Credit Suisse

Timoteo Di Maulo – Chief Executive Officer

September 12th, 2016

2

Disclaimer

Forward-Looking Statements

This document may contain forward-looking information and statements about Aperam and its subsidiaries. These

statements include financial projections and estimates and their underlying assumptions, statements regarding

plans, objectives and expectations with respect to future operations, products and services, and statements

regarding future performance. Forward-looking statements may be identified by the words “believe,” “expect,”

“anticipate,” “target” or similar expressions. Although Aperam’s management believes that the expectations

reflected in such forward-looking statements are reasonable, investors and holders of Aperam’s securities are

cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many

of which are difficult to predict and generally beyond the control of Aperam, that could cause actual results and

developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-

looking information and statements. These risks and uncertainties include those discussed or identified in

Aperam’s filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de

Surveillance du Secteur Financier). Aperam undertakes no obligation to publicly update its forward-looking

statements or information, whether as a result of new information, future events, or otherwise.


Aperam’s fundamentals

4

Solid and diversified sources of profitability

Aperam is number 1 in South America, number 2 in Europe in stainless steel

and world number 4 in Nickel Alloys

Source: Aperam


Aperam EBITDA breakdown (FY 2015)

Stainless &

Electrical Steel

Stainless &

Electrical Steel -

Brazil

37%

Services &

Solutions

8%

Alloys &

Specialties

8%

Aperam sales breakdown by destination (FY 2015)

Europe

65%

Brazil & Latin

America

18%

Asia & Africa

10%

USA

7%

Europe

46%

5

0

100

200

300

400

500

600

7 500

8 000

8 500

9 000

9 500

10 000

10 500

A restructured and efficient European footprint able

to seize market opportunities


Aperam is well positioned in the core markets in Europe, with optimal loading of its most efficient assets

* Full time equivalent excluding Bioenergia

** Quarterly average

HAP 3

CR 4 CR 3CR 2

CAP 1 BALCAP2

Skin 3 Skin 1

HAP 3

CR 2

Skin

CR 1

CAP 2

LC2I

RD 79

CR 2 CR 4CR 3 CR 5 CR 6

CAP10 BA 6 BA 8

Skin 3 Skin 1

BA 11

Skin 2

HA&P

lines

CR mills

CA&P/

BA lines

Skins Skin 2

GENK ISBERGUES GUEUGNON

Long term

suspension

Mothballing

& Swing

Combination of RD7 and

HAP9 and investment

Aperam downstream rationalization in EU from 29 tools to 17 tools

Core

Markets

Capital goods,

chemicals & energy

Auto, distribution &

1st transformation

Decoration trim, heat exchanges

& white goods

On-going investments focused on performance improvement

Aperam productivity evolution, average

Q4

2010

av.

2011

av.

2012

av.

2013

av.

2014

Number of employees* (LHS) Shipments** in kt (RHS)

av.

2015

6

Unique asset base in South America well adapted to the market


The sole stainless steel producer in South America with a complete range of products incl Electrical and Special

Carbon Steel and flexibility between production routes to adapt to market needs

Montevideo (Uruguay)

Ribeirão Pires

Buenos Aires (Argentina)

Range of products

Grain oriented electric steel

(GO & HGO) has the

magnetic properties optimized

in the rolling direction, aiming

its use in stationary machines

such as transformers.

South American Footprint

A complete range of

stainless steel grades

(austenitics, ferritics,

duplex, martensitics)

Stainless steel

Grain oriented

electrical steel

Non-grain

oriented electrical

steel

Special carbon

steel

Non-grain oriented electric steel

(NGO) has similar magnetic

properties in all directions,

aiming its use in electric motors

and generators with moving

parts.

Completing product portfolio

with alloyed, high, medium

other special carbon steel.

Campinas

Timoteo

Caxias do Sul

Peru

Ecuador

Caracas (Venezuela)

Colombia

Rep offices, sales agencies

Melt shop, Hot/Cold rolling

Service Centers

Tubes mills and Cutting centers

Sumaré

7

Services & Solutions Division offers a key competitive advantage to sustain market share and capture

growth opportunities

An industrial footprint in Europe and South America, perfectly

complemented with global service centres and sales network


Sales subsidiaries and representative offices Steel Service CentersSales agenciesFinishing lineSteel making

8

A leading position in nickel alloys

Source: SRM, Aperam

Global nickel alloys producers (kt in 2014)

0

5

10

15

20

25

30

35

40

Sp

ecia

l Me

tals

Alle

gh

en

y

VD

M

Ap

era

m A

&S

Carp

en

ter

Nip

po

n Y

akin

Hayn

es

Hita

ch

i

Su

mito

mo

Daid

o


n

nn

nn

Aperam Alloys & Specialties geographical footprint

Imphy

Meltshop, wire mill, cold

rolling, bars, R&D

Amilly

The magnetic parts company

Rescal

Wire drawing

ICS (JV)

Diversification into industrial

clads

Imhua

Transformation

workshop

World #4 in nickel alloys, the largest on Wire Rods

9

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 H1 2015H1 2016

Strong cash generation throughout the cycle

Aperam has generated positive Free Cash flow in each of the year since its spin-off despite challenging market

conditions and continues to generate strong positive free cash flow


Cumulative free cash flow 2011-H1’16 (USD million) Free cash flow evolution (USD million)

0

100

200

300

400

500

600

700

2011 2012 2013 2014 2015 H1 2016

10

A solid Balance Sheet

A robust balance sheet and debt structure, mainly represented with Convertible Bonds


[1] Assuming convertible bonds 2017 & 2019 reimbursement. BBF fully undrawn at end of Q2 2016.

Total Financial Debt breakdown

as of June 30, 2016 [1]Financial Debt maturity profile (USD million)

as of June 30, 2016 [1]

Convertible bonds BBF Others

0

100

200

300

400

500

600

2016 2017 2018 >2019


Environment and markets

12

Asian stainless steel overcapacity remains

Pace of new production capacities coming onstream is slowing down while demand is expected to continue

growing


Source: CRU and Aperam estimates

-

5

10

15

20

Upstream operational capacity of the Chinese industry

(in million tonnes)

-

10

20

30

40

Downstream operational capacity of the Chinese industry

(in million tonnes)

-

5

10

15

20

Domestic consumption and net exports Overcapacity

-

10

20

30

40

Domestic consumption and net exports Overcapacity

13

European restructuring is completed

European capacity is now adapted to the European stainless steel flat market

Source: CRU and Aperam estimates


3,5

4,0

4,5

2011 2012 2013 2014 2015E 2016F2015

Upstream operational capacity of the European industry

(in million tonnes)

Downstream operational capacity of the European industry

(in million tonnes)

6,5

7,0

7,5

8,0

8,5

2011 2012 2013 2014 2015E 2016F2015

14

European stainless steel apparent demand is improving

European demand is reasonably healthy and level of stocks are fairly balanced

Source: CRU, German distributor and producers


CR stainless steel European apparent consumption

(in million tonnes)

Stocks of CR stainless steel in Germany – quarterly average

(in number of days)

6,5

7,0

7,5

8,0

8,5

2011 2012 2013 2014 2015E 2016F20150

0,5

1,0

1,5

2,0

2,5

3,0

3,5

2012 2013 2014 2015 2016F 2017F

40

45

50

55

60

65

70

75

80

40

45

50

55

60

65

70

75

15

0

1

2

3

4

5

6

7

8

South America USA Western

Europe

China

South American stainless steel apparent demand remains

stable at 2015 level

Demand has stabilized during 2016 while long term growth fundamentals remain promising in South America

Sources: CRU


Stainless steel Brazilian apparent consumption

(in thousand tonnes)

Stainless steel flat stainless steel consumption per capita

(kg/year)

0

50

100

150

200

250

300

350

2012 2013 2014 2015 2016F0

50

100

150

200

250

300

350

400

2012 2013 2014 2015 2016F

16

Chinese marginal cost

FOB, CIF, clearance and

transportation costs

Imports duty

Anti-dumping Chinese landed cost in Brazil

Chinese marginal cost

FOB, CIF, clearance and

transportation costs

Anti-dumping Chinese landed cost in Europe

Both domestic markets of Aperam have tariff measures

Anti-dumping in both Europe and Brazil against unfair market behaviour were announced for a period of 5 years

Source: SBB/Platts, Steelfirst, http://www.eurofer.be/News%26Media/Press%20releases/20150827%20antidumping%20SSCR%20China%20Taiwan.fhtml


Chinese marginal cost player to landed costs in Brazil

(USD/t)

Chinese marginal cost player to landed costs in Europe

(USD/t)

• 14% of imports duties on all products categories of Aperam.

• Anti-dumping ranging from 133 up to 1077USD/t on Stainless

and non-grain oriented electrical steel products

• Anti-dumping duty rates of up to 25.3% on SSCR imports from

China, and up to 6.8% on imports from Taiwan.

17

0

100

200

300

400

500

2013 2014 2015 H1'16E run rate

5 000

7 000

9 000

11 000

13 000

15 000

17 000

19 000

21 000

Diminishing raw material advantage of Chinese players

NPI and Ferro Nickel supplies are tightening, affecting China cost competitiveness


Breakdown of Chinese nickel imports

(in kt)

Price equivalent of Nickel contained in NPI vs. LME Nickel price

(USD/t)

Source: LME, Ferroyalloys.net, China customs, Aperam, estimates

Price equivalent of Nickel contained in NPI LME Nickel price

5 000

7 000

9 000

11 000

13 000

15 000

17 000

19 000

21 000

0

100

200

300

400

500

2013 2014 2015 H1'16E run rate

Chinese NPI production Ferronickel imports (Ni content)

18

0%

10%

20%

30%

2012 2013 2014 2015 H1 2016

European stainless steel prices have shown the best resilience

Source: SBB, SPAS, Eurofer and Aperam estimates

* Q2 16 estimate based on Eurofer figures


Chinese versus European CR 304 2B 2mm coil transaction

price (USD/t)

Thanks to a healthy supply demand situation in Europe, prices show resilience to Chinese prices

1500

2000

2500

3000

3500

4000

4500

5000

CR stainless steel products imports in Europe

(in %)

Chinese prices European prices


Aperam’s performance

20

Health & Safety performance

Profit improvement in Q1 due to market and internal initiatives but Q2 expected to be more challenging

Lost Time Injury Frequency rate*

Health & Safety frequency rate of 2.1 in Q2 2016

* WorldSteel-standard: Fr = lost time Injuries per 1.000.000 worked hours; based on own personnel and contractors


0

1.0

2.0

3.0

4.0

21

Solid evolution of profitability

Aperam continues to improve its profitability despite the current domestic market headwinds


Ebitda evolution

(USD million)

42

66

31 33

49 53

0,54

0,85

0,40 0,42

0,630,68

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

-5

5

15

25

35

45

55

65

75

85

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

X Basic EPS (USD)Ebitda from operations Total Ebitda as % of Sales

133155

108 105 112123

10,6%

12,3%

9,7% 9,7%10,4% 11,0%

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Net result evolution

(USD million)

155

108 105 112123

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

22

Second quarter operating performance

[1] Difference with total Aperam’s quarterly Ebitda comes from the Others & Eliminations division.

Q2 2016 EBITDA per division (USD million) [1]

Stainless & Electrical Services & Solutions Alloys & Specialties

Shipments (‘000t)

EBITDA of 237 USD/t in Q2 2016 compared to 232 USD/t in Q1 2016

9590

8

19

8 6

Q4 2015 Q1 2016 Q4 2015 Q1 2016 Q4 2015 Q1 2016

EBITDA (USD million)


90

101

19

27

6 7

Q1 2016 Q2 2016 Q1 2016 Q2 2016 Q1 2016 Q2 2016

Stainless & Electrical Services & Solutions Alloys & Specialties

486

455

476483

520

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

23

Continuous solid progress on the Leadership Journey reaching USD 497 million at the end of June 2016

Leadership Journey®

Cumulated gains (USD million)


466 478 487 497 510

575

250

300

350

400

450

500

550

600

Q3 2015 Q4 2015 Q1 2016 Q2 2016 End of 2016

End of 2017

Tranche 1

USD52m of Capex

2014 - 2015

Asset upgrade program launched on best performing assets

Tranche 1

USD52m of Capex

2014 – 2015

Tranche 2

USD30m of Capex

2015 – 2016

Tranche 3

USD30m of Capex

2015 – 2017

• Productivity improvement of the downstream

facilities in Genk (CAP2), Gueugnon (CAP10)

and Timoteo (Sendzimir Mill #1).

• Upgrade of the Wire Rod mill in Imphy

• Upgrade of GO operations in Timoteo with

development of High Grain Oriented (Electrical)

• Breakthrough on productivity increase:

Upgrading further CAP 2 in Genk

Upgrading LC2i in isbergues

• Efficiency and competitiveness improvement

of the lines CR6 and BA8 in Gueugnon

• Upgrade of compact box annealing furnaces

of the Wire Rod mill in Imphy

Status

On track

On track

Completed

24

Financial results

Sustainable cash flow from operations

Profit improvement in Q1 due to market and internal initiatives but Q2 expected to be more challengingSustainable cash flow generation and net debt to EBITDA ratio

Aperam net debt and gearing[1] evolution

(USD million)

Aperam Net Debt / Ebitda evolution, x

[1] Debt Gearing defined as Net Debt divided by Equity.

Net Debt / EBITDA is equal to Net Debt at end of the years divided by last 12 month rolling EBITDA

2,60

2,20

3,76

2,36

0,98

0,63 0,63

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2010 2011 2012 2013 2014 2015 H1 2016

1066

878816

690

536

316 280

29%

26% 26%

23%

20%

14%

11%

0%

5%

10%

15%

20%

25%

30%

0

200

400

600

800

1 000

1 200

2010 2011 2012 2013 2014 2015 H1 2016

Net debt Gearing

51

33

9

8

17

13

0

10

20

30

40

50

60

70

H1 14 H1 15 H1 16

Net cash interests Other cash financing costs

25

Financial results

Steep reduction in net interest and financing costs

Profit improvement in Q1 due to market and internal initiatives but Q2 expected to be more challengingNet interest and financing cost strongly reduced by 60% in H1’16 compared to H1’14, while cash interest and

financing costs were reduced by more than 80%.

Net interest & financing costs (USD million) Aperam Debt restructuring actions

Strong decrease of net interest and financing costs, especially

cash interest costs, thanks to the financing restructuring actions

taken since 2014, adding to further strong momentum on EPS

and Free cash flow generation capacity of Aperam:

Convertible Bond Ornane of USD300m issued in June

2014 at coupon of 0.625% and premium of 32.5%

Borrowing Base Facility fully undrawn

High Yield Bonds of USD250m with coupon of 7.375%,

maturing in 2016 reimbursed as of 1st October 2014

3 notches rating improvement since end of 2014

Financing facility of €50m from European Investment

Bank towards R&D and upgrade of Chatelet &

Isbergues

59

50

22

Cash interest and

financing costs

Amortization of convertible bonds

premium and arrangement fees

26

Financial results

Credit Rating: one of the fastest re-rating

Profit improvement in Q1 due to market and internal initiatives but Q2 expected to be more challengingOne of the fastest re rating reaching crossover with both rating agencies with stable outlook.

Aperam is one notch away from Investment Grade

Aperam rating evolution with S&P Aperam rating evolution with Moody’s

0

1

2

3

4

5

De

c-1

0

Ju

n-1

1

De

c-1

1

Ju

n-1

2

De

c-1

2

Ju

n-1

3

De

c-1

3

Ju

n-1

4

De

c-1

4

Ju

n-1

5

De

c-1

5

Moody's

Baa3

Ba1

Ba2

Ba3

B1

B20

1

2

3

4

5

De

c-1

0

Ju

n-1

1

De

c-1

1

Ju

n-1

2

De

c-1

2

Ju

n-1

3

De

c-1

3

Ju

n-1

4

De

c-1

4

Ju

n-1

5

De

c-1

5

S&P

BBB-

BB+

BB

BB-

B+

B

10%11% 10%

7%

4%

3%

0%

2%

4%

6%

8%

10%

12%

0

100

200

300

400

500

600

700

FY 2014 FY2015 FY 2014 FY2015 FY 2014 FY2015

Aperam Competitor 1 Competitor 2*

27

Profit improvement in Q1 due to market and internal initiatives but Q2 expected to be more challengingAperam has the most solid ratio in the industry

Solid financial ratios


Profitability ratio Debt ratio

Source: Company FY 2014 and FY 2015 earning release reports

*EBITDA excluding non recurring items

Ebitda (USDm)

Ebitda from sale of electricity surplus (USDm)

Ebitda margin (%)

20%14%

33%35%

93%

69%

0%

20%

40%

60%

80%

100%

120%

0,0

1,0

2,0

3,0

4,0

5,0

6,0

FY 2014 FY2015 FY 2014 FY2015 FY 2014 FY2015

Aperam Competitor 1 Competitor 2

Net debt / LTM EBITDA (x) Net debt / Equity (%)

N/A N/A


Aperam’s value strategy:

A customer driven company focused on its self-help story

29

0

50

100

150

200

250

2014 2015E 2016F

Unlocking Aperam’s potential through Leadership Journey &

Top line strategy

The Leadership Journey® and the Top line strategy are the two pillars of Aperam strategy

Leadership Journey® initiatives

(Enhancing the potential of best performing assets)

Launched at the early stage of the program, the

restructuring initiatives are focused on the closure or

mothballing of non-competitive capacities and the

reduction of fixed costs through, in particular,

process simplification

Restructuring

Cost cutting

projects

Performance

projects &

upgrading

In parallel to the restructuring initiatives, major cost

cutting investments have been launched with the

goal to improve the industrial footprint and to reduce

the number of tools.

Several performance projects have been launched In

order to reinforce the existing continuous

improvement program and accelerate cost reduction.

In particular, specific action plans have been

implemented for sourcing, IT and SG&A.

Aperam’s value strategy

Top Line development plan (shipment in kt )

(Product & Service Differentiation)

• Commercial development focus on Aperam’s most profitable

product, segment, client or geographical areas.

• Develop niche presence and margin through the development of

innovative products (new products or application development.

30

Leverage Aperam’s unique position in Europe

The closest location to the scrap generating regions in Europe as well as the major stainless consumers


Outokumpu

Acerinox

Aperam

Finishing line

Steel making

Terni

European stainless steel industry footprint after restructuring Key strengths of the European operations of Aperam

Sourcing

Logistics

• The only integrated upstream

operations in the heart of Europe,

with the best access to scrap supply

• Best location to serve the biggest

consumption areas of Europe

• Performant logistics between sites

for a working capital management at

the benchmark of the industry

Production

• Full range of products

• Flexibility and available capacity

• A strategy to be a cost benchmark on

the key products of Aperam

31

Optimise value creation in South America thanks to a perfectly

adapted asset base and flexible sales management

The mitigation plan put in place by Aperam South America has enabled to fully offset the

negative impacts in 2015 and further develop loyalty of domestic customers

Key pillars of the mitigation plan in Brazil

Portfolio

management

Domestic

penetration

• Preferred supplier plan with best in class deliveries,

• Performant logistics with integrated service centers

• Support stainless steel substitution in South

America

Cost

competitiveness

• Ensure full utilisation rate with the best margin

thanks to a wide range of products and

geographical sales optimisation

• Develop new grades with higher added value

(stainless substitution, HGO)

• Benchmark and best practice with European

operations

• Leadership Journey on-going to improve

equipments productivity

• Continuous improvement to at least compensate

the inflation

Aperam’s assets optimisation in South America

Timoteo meltshop

900kt capacity

• Stainless steel

• Electrical steel

• Non grain oriented

• Grain oriented

• High grain oriented *

• Special carbon

Product mix Geographical mix

• Brazilian asset running at optimal utilisation rate with the current demand

• Projects on-going to debottleneck the cold rolling operations

• Upgrade of the Grain Oriented products with the development of HGO

• Continuous margin optimization between products mix and deliveries in South America

Brazilian penetration

Exports


32

Priority on maintaining a strong Balance Sheet consistent with

Investment Grade Financial ratios. Cash resources to be allocated to:

Profit improvement in Q1 due to market and internal initiatives but Q2 expected to be more challengingA financial policy to maximize the long term growth of the company and the value accretion for its shareholders

Invest in sustaining and upgrading the company’s assets base to continuously

reinforce Leadership Journey and Top Line StrategyCompany

sustainability

A base dividend of $1.25/sh (subject to AGM approval), anticipated to progressively

increase over time (as the company continues to benefit from its strategic actions and

capture growth opportunities). The company targets a NFD/EBITDA ratio of <1x

(through the cycle). In the (unlikely) event that NFD/EBITDA exceeds 1x then the

company will suspend the cash dividend.”

Dividend

Policy

Compelling Growth and M&A opportunities with high hurdle rate3Value Accretive

Growth & M&A

Remaining excess cash will be utilized in the most optimal way4Extra Cash

Utilization


34

Brazilian protections against unfair market behaviour

Tariff measures to support fair market environment in Brazil

Sources: SBB/Platts, Steelfirst


Type of products Import duties status Anti-dumping status

Stainless Steel Flat

Products

Normal import duties are 14% AD duties starting October 4th, 2013 for 5 years from

236 USD/t to 1,077 USD/t. The case involves CR 304

and 430, in thicknesses between 0.35mm and 4.75mm

from China, Finland, Germany, Korea, Taiwan and

Vietnam.

Stainless Steel

Welded Tubes

14% of Import duties Stainless Steel welded tubes. AD duties starting July 29th, 2013 for 5 years and up to

911USD/t.

Countries involved are China and Taiwan.

Electrical steel –

Non Grain Oriented

14% of Import duties on NGO. AD duties imposed for NGO on July 17th 2013 with

fixed USD/t values ranging from 133 USD/t to 567

USD/t for 5 years. The countries involved are China,

Korea and Taiwan.

On August 15, 2014, Camex released NGO AD partially,

giving 45Kt of imports in the next 12 months without AD

penalties.

On November 4, 2015, Brazilian authorities decided to

end up the existing quota of imports without AD and

fixed the AD duties from 90 USD/t to 132,5 USD/t

Electrical steel –

Grain Oriented

Normal import duties are also 14%

35

Definitive European anti-dumping duties on China and Taiwan

stainless steel imports from August 27, 2015

Recent anti-dumping measures should create a stable and fair European market environment for next 5 years

Source: http://www.eurofer.be/News%26Media/Press%20releases/20150827%20antidumping%20SSCR%20China%20Taiwan.fhtml

http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52016XC0811%2801%29&from=EN


• On May 13, 2014, Eurofer filed an antidumping complaint to

European Commission

• On June 26, 2014, European Commission started investigation on

CR imports from China and Taiwan

• On March 25, European Commission implemented provisional duties

from 24-25% for China and 10-12% for Taiwan.

Anti-dumping duties were applicable during this period with

regularisation to be done once final decision would be taken.

• On August 27, 2015, the European Commission Implementing

Regulation largely confirmed existing provisional measures and

imposes definitive anti-dumping duty rates of up to 25.3% on SSCR

imports from China, and up to 6.8% on imports from Taiwan.

• On August 11, 2016, the European Commission initiated an

absorption investigation concerning imports of stainless steel cold

rolled flat products from Taiwan

“China and Taiwan have a structural

overcapacity problem, and have been using

the openness of the EU market to shed their

excess production. This dumping has

seriously undermined the profitability of the

European stainless steel industry, and has

ensured that European producers have not

faced a level playing field for their products.”

Said EUROFER Director General Axel

Eggert.

Anti-dumping development

http://www.eurofer.be/News&Media/Press releases/20150827 antidumping SSCR China Taiwan.fhtml

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