“Resilient results despite a weak market environment in Europe and a
seasonally weak Brazil”
Luxembourg, May 8, 2019 (07:00 CET) - Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris,
Brussels: APAM, NYRS: APEMY), announced today results for the three months ending March 31, 2019
Highlights
- Health and Safety: LTI frequency rate of 1.1x in Q1 2019 compared to 0.8x in Q4 2018.
- Steel shipments of 501 thousand tonnes in Q1 2019, a 4.4% increase compared to steel shipments of 480 thousand
tonnes in Q4 2018.
- EBITDA of EUR 81 million in Q1 2019, compared to EUR 90 million in Q4 2018.
- Net income of EUR 25 million in Q1 2019, compared to EUR 49 million in Q4 2018.
- Basic earnings per share of EUR 0.30 in Q1 2019, compared to EUR 0.59 in Q4 2018.
- Cash flow from operations amounted to EUR 71 million in Q1 2019, compared to EUR 88 million in Q4 2018.
- Free cash flow before dividend of EUR 24 million in Q1 2019, compared to EUR 35 million in Q4 2018.
- Net financial debt of EUR 106 million as of March 31, 2019, compared to EUR 48 million as of December 31, 2018.
Strategic initiatives
- Leadership Journey ® 2 Phase 3 : annualized gains of EUR 34 million were added during the quarter, bringing the total
annualized gains to EUR 67 million at the end of Q1 2019, compared to the target of EUR 200 million by the end of 2020.
- Investment projects : The investment in a new Cold Rolling and Annealing and Pickling Line in Genk is on track.

Prospects
- EBITDA in Q2 2019 is expected to increase compared to Q1 2019.
- Net financial debt is expected to remain at low levels in Q2 2019.
Timoteo Di Maulo, CEO of Aperam, commented:
“Thanks to our self help measures, we achieved resilient results in the first quarter 2019 despite a weak market environment in
Europe due to the import flood last quarter, and a seasonally weak market environment in Brazil. Looking ahead despite soft
economic conditions in Europe we expect results to improve thanks to the Top Line Strategy and Leadership Journey® gains.
Also further discussions with the European Commission are ongoing to implement necessary fair trade measures for developing countries that are currently exempt from the safeguard, such as Indonesia.”

Financial Highlights (on the basis of financial information prepared under IFRS)
(EURO million) unless otherwise stated Q1 19 Q4 18 Q1 18
Sales 1,178 1,120 1,216
Operating income 46 52 106
Net income attributable to equity holders of the parent 25 49 85
Basic earnings per share (EUR) 0.30 0.59 0.99
Diluted earnings per share (EUR) 0.30 0.37 0.83
Free cash flow before dividend 24 35 (4)
Net Financial Debt / (Net Cash) (at the end of the period) 106 48 (32)
EBITDA 81 90 141
EBITDA/tonne (EUR) 162 188 273
Steel shipments (000t) 501 480 517

Health & Safety results
Health and Safety performance based on Aperam personnel figures and contractors’ lost time injury frequency rate was 1.1x in
the first quarter of 2019 compared to 0.8x in the fourth quarter of 2018.
Financial results analysis for the three-month period ending March 31, 2019
Sales for the first quarter of 2019 increased by 5.2%, at EUR 1,178 million compared to EUR 1,120 million for the fourth quarter of
2018. Steel shipments increased from 480 thousand tonnes in the fourth quarter of 2018, to 501 thousand tonnes in the first quarter of 2019.
EBITDA was EUR 81 million for the first quarter of 2019 compared to EUR 90 million for the fourth quarter of 2018. Group
EBITDA was negatively impacted due to lag effects from the import flood in Europe during Q4 as destocking kept pressure on
base prices, while Brazil declined due to seasonal factors. Also negative inventory valuation effects remained at a high level. The
positive effect from the Leadership Journey®, and the Top Line strategy enabled resilient results over the quarter.
Depreciation and amortization was EUR (35) million for the first quarter of 2019.
Aperam had an operating income for the first quarter of 2019 of EUR 46 million compared to an operating income of EUR 52
million for the previous quarter.
Net interest expense and other financing costs for the first quarter of 2019 were EUR (16) million, including cash cost of financing
of EUR (2) million. During the quarter, the Company booked an exceptional net financial loss of EUR (11) million, mainly related to
the accounting effects linked to the acceptance by bondholders of the invitation to sell their Convertible Bonds 2021 pursuant to a
fixed price tender offer process. Realized and unrealized foreign exchange and derivative gains were EUR 2 million for the first
quarter of 2019.
Income tax expense for the first quarter of 2019 was EUR (7) million.
The Company recorded a net income of EUR 25 million for the first quarter of 2019.
Cash flows from operations for the first quarter of 2019 were positive at EUR 71 million, despite a working capital increase of EUR
(19) million, mainly due to higher prices and activity. CAPEX for the first quarter was EUR (47) million.
Free cash flow before dividend for the first quarter of 2019 amounted to EUR 24 million.
During the first quarter of 2019, the cash returns to shareholders amounted to EUR (33) million, via dividends. During the first
quarter of 2019, the Company repurchased Convertible Bonds 2021 with a nominal amount of USD 72.4 million (EUR 63 million)
for a total consideration of EUR 63 million.

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