DJ Third quarter 2022 results
Aperam S.A. / Key word(s): Quarter Results Third quarter 2022 results 10-Nov-2022 / 07:15 CET/CEST
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Third quarter 2022 results1
"Solid earnings and free cash flow despite market headwind in Europe"
Luxembourg, November 10, 2022 (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 ended September 30, 2022.
Highlights
-- Health and Safety: LTI frequency rate of 1.0x in Q3 2022 compared to 2.1x in Q2 2022 -- Shipments of 508 thousand tonnes in Q3 2022, 20% decrease compared to shipments of 635 thousand tonnes in Q2 2022 -- EBITDA of EUR 235 million in Q3 2022, compared to EBITDA of EUR 402 million in Q2 2022 -- Adjusted Net income of EUR 96 million in Q3 2022, compared to EUR 317 million in Q2 2022 -- Adjusted Basic earnings per share of EUR 1.31 in Q3 2022, compared to EUR 4.16 in Q2 2022 -- Free cash flow before dividend and share buy-back amounted to EUR 209 million in Q3 2022, compared to EUR 170 million in Q2 2022 -- Net financial debt of EUR 482 million, as of September 30, 2022, compared to EUR 571 million as of June 30, 2022
Strategic initiatives
-- Leadership Journey®?2 Phase 4:? Gains reached EUR 17 million in Q3 2022 and a cumulative EUR 97 million compared to target gains of EUR 150 million over the period 2021 to 2023, including positive results sourcing gains and alloys underlying EBITDA growth.
Cash deployment
-- 2022 share buyback of EUR 200 million has been completed. First tranche of EUR 100 million / 2.31 million shares completed in April. Second tranche of 3.5 million shares / EUR 94.2 million was completed in October.
Prospects
-- Q4 2022 EBITDA is expected to decrease versus Q3 2022 -- We guide for lower Q4 2022 net financial debt Timoteo Di Maulo, CEO of Aperam, commented: "Aperam's differentiated value chain and stable operations in Brazil enabled us to generate solid results and considerable free cash flow in the third quarter. We achieved this despite a pronounced inventory cycle and energy challenges in Europe and have, as usual with NWC discipline, begun our cash release immediately as markets started to turn, in particular in Europe. Our de-levered balance sheet, the good progress of the Leadership Journey® Phase 4 that contributes towards our 2025 targets and our unique synergistic value chain, make us confident in addressing the challenges ahead."
Financial Highlights (on the basis of financial information prepared under IFRS)
(in millions of Euros, unless otherwise stated) Q3 22 Q2 22 Q3 21 9M 22 9M 21 Sales 1,818 2,457 1,257 6,540 3,706 Operating income 187 356 241 809 616 Net income attributable to equity holders of the parent 121 317 201 625 530 Basic earnings per share (EUR) 1.66 4.16 2.53 8.23 6.65 Diluted earnings per share (EUR) 1.64 4.15 2.53 8.19 6.63 Free cash flow before dividend and share buy-back 209 170 90 276 235 Net Financial Debt (at the end of the period) 482 571 59 482 59 Adj. EBITDA 235 402 278 1,000 715 Exceptional items - - - (53) 9 EBITDA 235 402 278 947 724 Adj. EBITDA/tonne (EUR) 463 633 660 551 513 EBITDA/tonne (EUR) 463 633 660 521 519 Shipments (000t) 508 635 421 1,816 1,395
Health & Safety results
Health and Safety performance based on Aperam personnel figures and contractors' lost time injury frequency rate was 1.0x in the third quarter of 2022 compared to 2.1x in the second quarter of 2022.
Financial results analysis for the three-month period ending September 30, 2022
Sales for the third quarter of 2022 decreased by 26% at EUR 1,818 million compared to EUR 2,457 million for the second quarter of 2022. Shipments decreased from 635 thousand tonnes in the second quarter of 2022 to 508 thousand tonnes in the third quarter of 2022, due to pronounced destocking by customers in Europe.
EBITDA decreased during the quarter to EUR 235 million from EUR 402 million due to negative inventory valuation, lower volumes and a price/cost squeeze.
Depreciation and amortization expense was EUR (48) million for the third quarter of 2022.
Aperam had an operating income for the third quarter of 2022 of EUR 187 million compared to an operating income of EUR 356 million for the previous quarter.
Financing costs, net, including the FX and derivatives result for the third quarter of 2022 were EUR (65) million. Cash cost of financing was nil during the quarter as interest expenses paid have been offset by interest income received on cash and cash equivalents.
Income tax result was a benefit of EUR 1 million during the third quarter of 2022, notably due to EUR 25 million additional deferred tax assets recognized on tax losses carried forward.
The Company recorded a net income of EUR 121 million for the third quarter of 2022, compared to EUR 317 million for the second quarter of 2022.
Cash flows from operations for the third quarter of 2022 were at EUR 267 million, including a working capital decrease of EUR 36 million. CAPEX for the third quarter was EUR (58) million.
Free cash flow before dividend and share buyback for the third quarter of 2022 amounted to EUR 209 million, compared to EUR 170 million for the second quarter of 2022.
During the third quarter of 2022, cash returns to shareholders amounted to EUR 123 million, consisting of EUR 86 million of share buy-back and EUR 37 million of dividend.
Operating segment results analysis
Stainless & Electrical Steel (1)
(in millions of Euros, unless otherwise stated) Q3 22 Q2 22 Q3 21 (2) 9M 22 9M 21 (2) Sales 1,186 1,643 1,057 4,352 3,109 EBITDA 153 328 223 753 567 Depreciation & amortization (25) (25) (25) (75) (73) Operating income 128 303 198 678 494 Steel shipments (000t) 352 432 409 1,229 1,364 Average steel selling price (EUR/t) 3,271 3,709 2,525 3,455 2,219
(1) Amounts are shown prior to intra-group eliminations
(2) Due to the transfer of the entity Aperam Bioenergia from the segment 'Stainless & Electrical Steel' to the segment 'Recycling & Renewables' starting Q1 2022, segmented figures for Q3 2021 and 9M 2021 have been recast for the sake of comparison.
The Stainless & Electrical Steel segment had sales of EUR 1,186 million for the third quarter of 2022. This represents a 28% decrease compared to sales of EUR 1,643 million for the second quarter of 2022. Steel shipments during the third quarter were 352 thousand tonnes, a decrease of 19% compared to shipments of 432 thousand tonnes during the previous quarter. Shipments in Brazil were seasonally normal and remained at a high level but customers' destocking impacted Europe in the seasonal trough quarter. Average steel selling prices for the Stainless & Electrical Steel segment decreased by 12% compared to the previous quarter.
The segment generated an EBITDA of EUR 153 million for the third quarter of 2022 compared to EUR 328 million for the second quarter of 2022. EBITDA decreased due to lower volumes, negative inventory valuation and a price/cost squeeze despite a slight seasonal increase in shipments in Brazil.
Depreciation and amortization expense was EUR (25) million for the third quarter of 2022.
The Stainless & Electrical Steel segment had an operating income of EUR 128 million for the third quarter of 2022 compared to an operating income of EUR 303 million for the second quarter of 2022.
Services & Solutions(1)
(in millions of Euros, unless otherwise stated) Q3 22 Q2 22 Q3 21 9M 22 9M 21 Sales 584 832 561 2,261 1,634 Adjusted EBITDA (21) 45 53 97 148 Exceptional items - - - - 9 EBITDA (21) 45 53 97 157 Depreciation & amortization (4) (3) (3) (10) (9) Operating income / (loss) (25) 42 50 87 148 Steel shipments (000t) 138 172 171 509 568 Average steel selling price (EUR/t) 4,113 4,645 3,167 4,282 2,769
(1) Amounts are shown prior to intra-group eliminations
The Services & Solutions segment had sales of EUR 584 million for the third quarter of 2022, representing a decrease of 30% compared to sales of EUR 832 million for the second quarter of 2022. For the third quarter of 2022, steel shipments were 138 thousand tonnes compared to 172 thousand tonnes during the previous quarter. Average steel selling prices for the Services & Solutions' segment were 11% lower during the third quarter of 2022 compared to the second quarter of 2022.
The segment generated a negative EBITDA of EUR (21) million for the third quarter of 2022 compared to an EBITDA of EUR 45 million for the second quarter of 2022. EBITDA was substantially impacted by negative inventory valuation and lower volumes that were not compensated by a favorable price / cost development
Depreciation and amortization expense was EUR (4) million for the third quarter of 2022.
The Services & Solutions segment had an operating loss of EUR (25) million for the third quarter of 2022 compared to an operating income of EUR 42 million for the second quarter of 2022.
Alloys & Specialties(1)
(in millions of Euros, unless otherwise stated) Q3 22 Q2 22 Q3 21 9M 22 9M 21 Sales 171 162 112 481 369 EBITDA 5 15 11 41 39 Depreciation & amortization (3) (3) (2) (8) (6) Operating income 2 12 9 33 33 Steel shipments (000t) 6 7 7 20 22 Average steel selling price (EUR/t) 26,165 23,461 16,745 23,119 16,275
(1) Amounts are shown prior to intra-group eliminations
The Alloys & Specialties segment had sales of EUR 171 million for the third quarter of 2022, representing an increase of 6% compared to EUR 162 million for the second quarter of 2022. Steel shipments decreased by 3% during the third quarter of 2022 at 6 thousand tonnes. Average steel selling prices for the Alloys & Specialties' segment were 12% higher during the third quarter.
The Alloys & Specialties segment achieved EBITDA of EUR 5 million for the third quarter of 2022 compared to EUR 15 million for the second quarter of 2022. EBITDA decreased due to the impact of severe weather conditions, seasonally lower volumes and negative inventory valuation.
Depreciation and amortization expense for the third quarter of 2022 was EUR (3) million.
The Alloys & Specialties segment had an operating income of EUR 2 million for the third quarter of 2022 compared to an operating income of EUR 12 million for the second quarter of 2022.
Recycling & Renewables
(in millions of Euros, unless otherwise stated) (1) Q3 22 Q2 22 Q3 21 (2) (3) 9M 22 9M 21 (2) (3) Sales 468 788 535 1,991 1,532 Adjusted EBITDA 31 39 33 84 73 Exceptional items - - - (53) - EBITDA 31 39 33 31 73 Depreciation & amortization (16) (15) (11) (44) (34) Operating income / (loss) 15 24 22 (13) 39 Shipments (000t) 278 363 386 1,036 1,242 Average selling price (EUR/t) 1,683 2,171 1,386 1,922 1,233
(1) Amounts are shown prior to intra-group eliminations
(2) Due to the transfer of the entity Aperam Bioenergia from the segment 'Stainless & Electrical Steel' to the segment 'Recycling & Renewables' starting Q1 2022, segmented figures for Q3 2021 and 9M 2021 have been recast for the sake of comparison.
(3) Pro Forma information including ELG for the sake of comparison.
The Recycling & Renewables segment had sales of EUR 468 million for the third quarter of 2022, representing a decrease of 41% compared to EUR 788 million sales for the second quarter of 2022. Shipments decreased by 23% during the third quarter of 2022 to 278 thousand tonnes. Average selling prices for the Recycling & Renewables' segment were 22% lower during the third quarter.
EBITDA decreased during the quarter to EUR 31 million compared to EBITDA of EUR 39 million in Q2 2022. EBITDA decreased due to seasonality and lower scrap volumes that were not fully offset by better pricing of scrap and cost savings.
Depreciation and amortization expense for the third quarter of 2022 was EUR (16) million.
The Recycling & Renewables segment had an operating income of EUR 15 million for the third quarter of 2022 compared to an operating income of EUR 24 million for the second quarter of 2022.
Investor conference call / webcast
Pre-recorded management comments are available as from publication of this earnings release on our website at www.aperam.com, section Investors > Reports & Presentations > Quarterly results > Q3-2022 (Link).
Aperam management will host a conference call / webcast for members of the investment community to discuss the third quarter 2022 financial performance at the following time:
Date New York London Luxembourg
Thursday,
05:00 10:00 11:00
10 November 2022
Link to the webcast: https://channel.royalcast.com/landingpage/aperam/20221110_1/
The dial-in numbers for the call are: France: +33 (0) 1 7037 7166; USA: +1 212 999 6659; UK: +44 (0) 33 0551 0200
The conference password is Aperam.
Contacts
Company Secretary / Julia Eisenmann +352 661 527 279; julia.eisenmann@aperam.com
Investor Relations / Thorsten Zimmermann: +352 661 570 250; thorsten.zimmermann@aperam.com
About Aperam
Aperam is a global player in stainless, electrical and specialty steel and recycling, with customers in over 40 countries. Starting from 1 January 2022, the business is organized in four primary reportable segments: Stainless & Electrical Steel, Services & Solutions, Alloys & Specialties and Recycling & Renewables.
Aperam has a flat Stainless and Electrical steel capacity of 2.5 million tonnes in Brazil and Europe and is a leader in high value specialty products. In addition to its industrial network, spread over six production facilities in Brazil, Belgium and France, Aperam has a highly integrated distribution, processing and services network and a unique capability to produce low carbon footprint stainless and special steels from biomass, stainless steel scrap and high performance alloys scrap. With Bioenergia and its unique capability to produce charcoal made from its own FSC-certified forestry and with ELG, a global leader in collecting, trading, processing and recycling of stainless steel scrap and high performance alloys, Aperam's places sustainability at the heart of its business, helping customers worldwide to excel in the circular economy.
In 2021, Aperam had sales of EUR 5,102 million and steel shipments of 1.82 million tonnes.
For further information, please refer to our website at www.aperam.com.
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 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
September 30, June 30, September 30,
(in million of EURO)
2022 2022 2021
ASSETS
Cash & cash equivalents (C) 467 485 359
Inventories, trade receivables and trade payables 2,090 2,100 1,032
Prepaid expenses and other current assets 152 307 101
Total Current Assets & Working Capital 2,709 2,892 1,492
Goodwill and intangible assets 458 454 427
Property, plant and equipment (incl. Biological assets) 1,806 1,780 1,512
Investments in associates, joint ventures and other 3 3 4
Deferred tax assets 96 102 88
Other non-current assets 124 112 62
Total Assets (net of Trade Payables) 5,196 5,343 3,585
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term debt and current portion of long-term debt (B) 269 292 38
Accrued expenses and other current liabilities 472 568 370
Total Current Liabilities (excluding Trade Payables) 741 860 408
Long-term debt, net of current portion (A) 680 764 380
Deferred employee benefits 154 148 147
Deferred tax liabilities 127 149 115
Other long-term liabilities 75 76 45
Total Liabilities (excluding Trade Payables) 1,777 1,997 1,095
Equity attributable to the equity holders of the parent 3,411 3,339 2,486
Non-controlling interest 8 7 4
Total Equity 3,419 3,346 2,490
Total Liabilities and Shareholders' Equity (excluding Trade Payables) 5,196 5,343 3,585
Net Financial Debt (D = A+B-C) 482 571 59
APERAM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended Nine Months Ended
(in million of EURO)
September 30, June 30, September 30, September 30, September 30,
2022 2022 2021 2022 2021
Sales 1,818 2,457 1,257 6,540 3,706
Adjusted EBITDA (E = C-D) 235 402 278 1,000 715
Adjusted EBITDA margin (%) 12.9% 16.4% 22.1% 15.3% 19.3%
Exceptional items (D) - - - (53) 9
EBITDA (C = A-B) 235 402 278 947 724
EBITDA margin (%) 12.9% 16.4% 22.1% 14.5% 19.5%
Depreciation & amortization (B) (48) (46) (37) (138) (108)
Operating income (A) 187 356 241 809 616
Operating margin (%) 10.3% 14.5% 19.2% 12.4% 16.6%
Results from associates and other investments (1) - (1) (1) (1)
Financing costs, (net) (65) 68 10 (21) 8
Income before taxes and non-controlling interests 121 424 250 787 623
Income tax benefit / (expense) 1 (107) (49) (161) (93)
Effective tax rate % (1.0)% 25.2% 19.7% 20.4% 14.9%
Income including non-controlling interests 122 317 201 626 530
Non-controlling interests income (1) - - (1) -
Net income attributable to equity holders of the 121 317 201 625 530
parent
Basic earnings per share (EUR) 1.66 4.16 2.53 8.23 6.65
Diluted earnings per share (EUR) 1.64 4.15 2.53 8.19 6.63
Weighted average common shares outstanding (in 74,900 75,693 79,805 76,029 79,691
thousands)
Diluted weighted average common shares 75,241 76,034 80,123 76,370 80,009
outstanding (in thousands)
APERAM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Three Months Ended Nine Months Ended
(in million of EURO)
September 30, June 30, September 30, September 30, September 30,
2022 2022 2021 2022 2021
Operating income 187 356 241 809 616
Depreciation & amortization 48 46 37 138 108
Change in working capital 36 (122) (175) (455) (414)
Income tax paid (45) (21) (8) (87) (14)
Interest paid, (net) (1) - (2) (2) (5)
Exceptional items - - - 53 (9)
Other operating activities (net) 42 (36) 17 (23) 49
Net cash provided by (used in) operating 267 223 110 433 331
activities (A)
Purchase of PPE, intangible and biological (58) (49) (21) (153) (94)
assets (CAPEX)
Other investing activities (net) - (4) 1 (4) (2)
Net cash used in investing activities (B) (58) (53) (20) (157) (96)
Proceeds (payments) from payable to banks and (108) (61) (1) (44) (14)
long term debt
Purchase of treasury stock (share buy back) (86) (26) (100) (186) (105)
Dividends paid (37) (39) (35) (115) (106)
Other financing activities (net) (4) (3) (3) (10) (7)
Net cash used in financing activities (235) (129) (139) (355) (232)
Effect of exchange rate changes on cash 8 (6) (9) 22 (2)
Change in cash and cash equivalent (18) 35 (58) (57) 1
Free cash flow before dividend and share 209 170 90 276 235
buy-back (C = A+B)
Appendix 1a - Health & Safety statistics
Three Months Ended
Health & Safety Statistics September 30, June 30, March 31,
2022 2022 2022
Frequency Rate 1.0 2.1 2.4
Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.
Appendix 1b - Key operational and financial information
Quarter Ending Stainless & Electrical Services & Alloys & Recycling & Others &
Steel Solutions Specialties Renewables Eliminations Total
September 30, 2022
Operational
information
352 138 6 278 (266) 508
Shipment (000t)
Average
3,271 4,113 26,165 1,683 3,579
selling price (EUR/t)
Financial information
(EURm)
Sales 1,186 584 171 468 (591) 1,818
Adjusted EBITDA 153 (21) 5 31 67 235
Exceptional items - - - - - -
EBITDA 153 (21) 5 31 67 235
Depreciation & (25) (4) (3) (16) - (48)
amortization
Operating income / 128 (25) 2 15 67 187
(loss)
Quarter Ending Stainless & Electrical Services & Alloys & Recycling & Others &
Steel Solutions Specialties Renewables Eliminations Total
June 30, 2022
Operational
information
432 172 7 363 (339) 635
Shipment (000t)
Average
3,709 4,645 23,461 2,171 3,869
selling price (EUR/t)
Financial information
(EURm)
Sales 1,643 832 162 788 (968) 2,457
Adjusted EBITDA 328 45 15 39 (25) 402
Exceptional items - - - - - -
EBITDA 328 45 15 39 (25) 402
Depreciation & (25) (3) (3) (15) - (46)
amortization
Operating income / 303 42 12 24 (25) 356
(loss)
Appendix 2 - Adjusted Net Income and Adjusted Basic Earnings per Share
Three Months Ended Nine Months Ended
(in million of EURO) September June September September September
30,
30, 2022 30, 2021 30, 2022 30, 2021
2022
Net income 121 317 201 625 530
Exceptional items - - - 53 (9)
Reversal of provision for liabilities and charges - - - - (3)
(Recognition) / derecognition of deferred tax assets on tax losses (25) - 6 (34) (26)
carried forward
Deferred tax effect on exceptional items - - - (12) 3
Adjusted Net income 96 317 207 632 495
Basic earnings per share (EUR) 1.66 4.16 2.53 8.23 6.65
Adjusted Basic earnings per share (EUR) 1.31 4.16 2.60 8.31 6.21
Appendix 3 - Terms and definitions3
Unless indicated otherwise, or the context otherwise requires, references in this earnings release report to the following terms have the meanings set out next to them below:
Adjusted EBITDA: operating income before depreciation and amortization expenses and exceptional items.
Adjusted EBITDA/tonne: calculated as Adjusted EBITDA divided by total shipments.
Adjusted Net Income: refers to reported net income less exceptional items, reversal of provisions for liabilities and charges, recognition of deferred tax assets on tax losses carried forward, reversal of current income tax on interest on PIS/Cofins in Brazil and deferred tax effect on exceptional items.
Adjusted Basic Earnings per Share: refers to Adjusted Net Income divided by Weighted average common shares outstanding.
Average selling prices: calculated as sales divided by shipments.
Average steel selling prices: calculated as steel sales divided by steel shipments.
Cash and cash equivalents: represents cash and cash equivalents, restricted cash and short-term investments.
CAPEX: relates to capital expenditures and is defined as purchase of property plant and equipment, intangible assets and biological assets.
EBITDA: operating income before depreciation and amortization expenses.
EBITDA/tonne: calculated as EBITDA divided by total shipments.
Exceptional items: consists of (i) inventory write-downs equal to or exceeding 10% of total related inventories values before write-down at the considered quarter end (ii) restructuring (charges)/gains equal to or exceeding EUR 10 million for the considered quarter, (iii) capital (loss)/gain on asset disposals equal to or exceeding EUR 10 million for the considered quarter or (iv) other non-recurring items equal to or exceeding EUR 10 million for the considered quarter.
Financing costs, (net): Net interest expense, other net financing costs and foreign exchange and derivative results.
Free cash flow before dividend and share buy-back: net cash provided by operating activities less net cash used in investing activities.
Gross financial debt: long-term debt plus short-term debt.
Liquidity: Cash and cash equivalent and undrawn credit lines.
LTI frequency rate: Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.
Net financial debt: long-term debt, plus short-term debt less cash and cash equivalents.
Net financial debt/EBITDA or Gearing: Refers to Net financial debt divided by last twelve months EBITDA calculation.
Shipments: information at segment and group level eliminates inter-segment shipments (which are primarily between (i) Recycling & Renewables and Stainless & Electrical Steel (ii) Stainless & Electrical Steel and Services & Solutions) and intra-segment shipments, respectively.
Working capital: trade accounts receivable plus inventories less trade accounts payable.
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1 The financial information in this press release and Appendix 1 has been prepared in accordance with the measurement and recognition criteria of International Financial Reporting Standards ("IFRS") as adopted in the European Union. While the interim financial information included in this announcement has been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standard 34, "Interim Financial Reporting". Unless otherwise noted the numbers and information in the press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers.
2 The Leadership Journey® is an initiative launched on December 16, 2010, and subsequently accelerated and increased, to target management gains and profit enhancement. The fourth phase of the Leadership Journey® is targeting EUR 150 million gains for the period 2021 - 2023 via a combination of cost, growth and mix improvement measures. Some additional investments, as announced in 2021 as part of the Strategy 2025 program, have been accelerated to achieve earnings growth already in 2022 contributing to the ongoing Leadership Journey Phase 4.
3 This press release also includes Alternative Performance Measures ("APM" hereafter). The Company believes that these APMs are relevant to enhance the understanding of its financial position and provides additional information to investors and management with respect to the Company's financial performance, capital structure and credit assessment. These non-GAAP financial measures should be read in conjunction with and not as an alternative for, Aperam's financial information prepared in accordance with IFRS. Such non-GAAP measures may not be comparable to similarly titled measures applied by other companies. The APM's used are defined under Appendix 3 "Terms & definitions".
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