Breaking Down Aperam S.A. Financial Health: Key Insights for Investors

Aperam S.A., born from the 2011 spin-off of ArcelorMittal, stands as a global leader in stainless and specialty steel with operations across Europe and South America, organized into four business segments-Stainless & Electrical Steel, Services & Solutions, Alloys & Specialties, and Recycling & Renewables-and a workforce of approximately 12,000 employees and listings in Amsterdam, Brussels, Paris, Madrid and Luxembourg; its mission to deliver affordable, long-lasting and fully recyclable steel is backed by targeted investments in innovation including €23.7 million in R&D reported for 2024 and a broader strategic commitment cited as roughly €50 million annually to advance product quality and sustainability, while aiming for a 30% reduction in carbon footprint per ton by 2030 versus 2018 and striving to be a top-five global stainless player with about 10% market share in Europe (2023)-all underpinned by core values where safety drives a Total Recordable Injury Rate of 4.66, sustainability yields a 2024 CO₂ footprint of 0.34 tCO₂e/tcs, and integrity, agility and ingenuity propel initiatives that target >90% customer satisfaction and 100% compliance across subsidiaries.

Aperam S.A. (APAM.AS) - Intro

• Founded: 2011 (spin‑off from ArcelorMittal).
• Core business: stainless and specialty steels, with integrated operations across Europe and South America.
• Organizational segments: Stainless & Electrical Steel; Services & Solutions; Alloys & Specialties; Recycling & Renewables.
• Employees: approximately 12,000 worldwide.
• Listed on: Amsterdam, Brussels, Paris, Madrid, Luxembourg.

• To be the leading value creator in the circular economy for infinite, world‑changing materials - delivering high‑performance stainless and specialty steels while maximizing resource efficiency, reuse and recycling.
• Operational focus: integrate low‑carbon production routes, expand recycling flows and capture premium margins through higher‑value alloys and service offerings.

• Be recognized as the reference in sustainable stainless and specialty steel, driving decarbonization and circularity across customers and supply chains.
• Grow Services & Solutions and Alloys & Specialties to raise the company's revenue mix toward higher‑margin, lower‑carbon products and long‑term partnerships.

• Sustainability & Circularity - prioritize recycled content, energy efficiency and closed‑loop systems.
• Safety & People - protect the workforce (c.12,000 employees) and invest in skills to support advanced alloys and digital services.
• Customer orientation - deliver fit‑for‑purpose stainless and specialty solutions, backed by logistics and technical services.
• Operational excellence - optimize integrated mills in Europe and South America to reduce costs and emissions intensity.

• Drive recycled content: expand internal recycling flows and purchased scrap to increase the share of recycled raw materials in melt shops.
• Reduce CO2 intensity: continuous investments in energy efficiency, electrification and lower‑carbon routes to reduce scope 1 and 2 emissions intensity (target trajectories publicized in corporate sustainability reporting).
• Circular business models: grow the Services & Solutions and Recycling & Renewables segments to monetize end‑of‑life material streams and prolong product lifecycles.

• Stainless & Electrical Steel: bulk production and commodity stainless grades serving construction, appliances and industry.
• Services & Solutions: processing, logistics, technical support and aftermarket services - higher margin, recurring revenue potential.
• Alloys & Specialties: niche, high‑value alloys for automotive, aerospace and hi‑tech applications - strategic for margin improvement.
• Recycling & Renewables: scaling scrap processing and energy transition projects to close material loops and lower CO2 footprint.

• Listed across five European exchanges, Aperam profiles as a mid‑cap industrial with exposure to stainless cycles, alloy premiumization and green transition investments.
• Value drivers for investors: margin expansion via higher‑value alloys and services, decarbonization investments that lower future regulatory and energy costs, and increasing recycled content that hedges raw material volatility.

Aperam S.A. (APAM.AS) - Overview

• Mission focus: affordable, durable and 100% recyclable stainless and specialty alloys for multiple end-markets.
• Technology & customer enablement: push limits of metallurgy, surface treatments and digital service (e-business, EDI) to help customers lead in their segments.
• Continuous improvement: higher new-product introduction rates and expanded service offerings across ordering, logistics and digital integration.
• R&D investment: €23.7 million allocated in 2024 to design the future of steel and alloys, including low‑carbon processes and advanced high-performance grades.
• Sustainability commitment: production of fully recyclable products and a corporate objective to deliver the best carbon footprint within the sector.

• Strategic implications: investment in R&D and digital service translates into product differentiation (higher-value grades, tailored alloys), improved customer retention through seamless ordering and logistics, and measurable reductions in cradle‑to‑gate environmental impact.
• Operational levers: process electrification, scrap‑based production routes, alloy design for longer life and recyclability, and integration of e‑commerce/EDI to reduce lead times and transaction costs.

Aperam S.A. (APAM.AS) - Mission Statement

• Mission focus: Produce high-quality, low-carbon stainless steel and specialty alloys while maximizing material circularity and resource efficiency.
• Strategic priority: Embed sustainability into operations, supply chains, and product lifecycles to create differentiated customer value.
• Stakeholder commitment: Deliver attractive returns for shareholders, safe workplaces for employees, and measurable environmental benefits for society.

• Carbon ambition: Reduce carbon footprint by 30% per ton of steel produced by 2030 versus 2018 baseline.
• R&D investment: Approximately €50 million invested annually in research & development to improve product performance and sustainability.
• Customer focus: Target customer satisfaction score exceeding 90% (goal set for 2024).
• Market positioning: Aim to be a top-five global stainless steel player; circa 10% market share in Europe as of 2023.

• Safety & Respect: Zero-tolerance for unsafe behaviors; continuous improvement in health and safety metrics.
• Integrity & Transparency: Compliance with governance standards and transparent ESG reporting.
• Innovation: Sustained R&D to drive material performance, process efficiency, and circular-business models.
• Sustainability: Prioritize lifecycle emissions reduction, recycling, and energy efficiency across operations.
• Customer Excellence: Rapid responsiveness, tailored solutions, and quality assurance to meet >90% satisfaction targets.

• Energy mix and decarbonization: Shift toward lower-carbon electricity, increased scrap-based melting, and process electrification to meet the -30%/t target.
• Product portfolio and circularity: Design-for-reuse and high-recycled-content grades to close material loops and boost value per ton.
• R&D and digitalization: Allocate ~€50m/year to advanced metallurgy, process controls, digital operations, and product lifecycle analytics.
• Customer partnerships: Co-development agreements and service offerings to secure >90% satisfaction and long-term contracts.
• Capital allocation: Invest in modernization, low-carbon technologies, and capacity adjustments consistent with market share goals.

Aperam S.A. (APAM.AS) - Vision Statement

• Safety: Zero-accident ambition grounded in shared vigilance and continuous improvement - Total Recordable Injury Rate (TRIR) of 4.66.
• Sustainability: Targeting leadership in low-carbon stainless production - CO₂ footprint of 0.34 tCO₂e/tcs in 2024.
• Innovation: Sustained technology and product development - €24.3 million invested in R&D in 2024.
• Integrity: Robust governance and ethical standards - 100% compliance certification coverage across subsidiaries.
• Agility: Rapid commercial and operational responsiveness to market changes and customer-specific requirements.
• Ingenuity: A culture that fosters employee-led creative solutions and technical advancements to accelerate competitive differentiation.