BUSINESS YEAR 2005 RESULTSBUSINESS YEAR 2005 RESULTSBUSINESS YEAR 2005 RESULTS
OFFICIAL NICKEL PRICE AND INVENTORY LEVEL IN THE L.M.E. (1990 – 2005)
Monthly average values. (USD/Mt. Ni.) Thousand Mt.
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
11.000
12.000
13.000
14.000
15.000
16.000
17.000
18.000
19.000
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
19019,000
18,000
17,000
16,000
15,000
14,000
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Average 1990–2005: 8,062 USD/Tm. Ni
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
11.500
12.000
12.500
13.000
13.500
14.000
14.500
15.000
15.500
16.000
16.500
17.000
17.500
18.000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
OFFICIAL NICKEL PRICE IN L.M.E.
Daily values. (USD/Mt. Ni.)
18,000
17,500
17,000
16,500
16,000
15,500
15,000
14,500
14,000
13,500
13,000
12,500
12,000
11,500
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Transactions
Production
Consumption
19 Million Mt
1.29 Million Mt
1.26 Million Mt
Million Mt
NICKEL: L.M.E. TRANSACTIONS COMPARED WITH
PRODUCTION AND CONSUMPTION WORLDWIDE
USA
GERMANY
HONG KONG
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20051.000
1.250
1.500
1.750
2.000
2.250
2.500
2.750
3.000
3.250
3.500
3.750
STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (1995 – 2005)
SOURCE: Metal BulletinResearch “Stainless SteelMonthly”
USD/Mt, final price, alloy surcharge included
3,750
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (1995 – 2005)
0000
500500500500
1.0001.0001.0001.000
1.5001.5001.5001.500
2.0002.0002.0002.000
2.5002.5002.5002.500
Base Price Alloy Surcharge
€/Mt GERMAN MARKET
2,500
2,000
1,500
1,000
500
0
SOURCE: MBR
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
STAINLESS STEEL COLD ROLLED SHEET PRICES AISI. 304 2.0 mm (1995 – 2005)
0000
500500500500
1.0001.0001.0001.000
1.5001.5001.5001.500
2.0002.0002.0002.000
2.5002.5002.5002.500
3.0003.0003.0003.000
3.5003.5003.5003.500
Base Price Alloy Surcharge
USD/Mt NORTH AMERICAN MARKET
3,500
3,000
2,500
2,000
1,500
1,000
500
0
SOURCE: MBR
909,101 767,624 564,877 2,241,602 -3.8%
780,070 708,962 523,378 2,012,410 -2.9%
609,999 537,429 322,550 1,469,978 +7.6%
PRODUCTION OF ACERINOX GROUP. YEAR 2005
Metric Tonnes
129,727 67,059 196,786 +4.6%
ACERINOX NAS COLUMBUS TOTAL FLAT PRODUCTSVariationover 2004
ROLDANLONG PRODUCTS NAS TOTAL Variationover 2004
MELTING SHOP
HOT ROLLING SHOP
COLD ROLLING SHOP
HOT ROLLING SHOP
EVOLUTION OF NET SALES OF ACERINOX GROUP
Millones Millones Millones Millones de Eurosde Eurosde Eurosde EurosMillion Million €€
4,214
1,7791,6031,590
911
380
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
96 97 98 99 00 01 02 03 04 05
Consolidated Group
Trading companies
ACERINOX S.A.
N.A.S.
COLUMBUS
ROLDAN + INOXFIL
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
GEOGRAPHICAL DISTRIBUTION OF ACERINOX GROUP NET SALES
YEAR 2005YEAR 2005
Europe Europe
43.2%43.2%
AmericasAmericas
35.4%35.4%AsiaAsia
16.1%16.1%
AfricaAfrica
4.9%4.9%
OceaniaOceania
0.4%0.4%
YEAR 2004YEAR 2004
Europe Europe
42%42%
AmericasAmericas
38.5%38.5%AsiaAsia
14.3%14.3%
AfricaAfrica
4%4%
OceaniaOceania
1.2%1.2%
ACERINOX, S.A. : FACTORY OF CAMPO DE
GIBRALTAR
ACERINOX, S.A.ACERINOX, S.A.ACERINOX, S.A.ACERINOX, S.A.
2005200520052005 2004200420042004% over % over % over % over
2004200420042004
NET SALES 1,603.3 1,724.3 -7.0
RESULTS BEFORE TAXES 80.9 148.8 -45.6
DEPRECIATION 29.2 45.8 -36.3
RESULT AFTER TAXES 71.5 103.2 -30.7
NET CASH FLOW 100.7 149.0 -32.4
Million €
31st DECEMBER 2005 RESULTS
NORTH AMERICAN STAINLESS : FACTORY OF KENTUCKY (U.S.A.)
EVOLUTION OF PRODUCTIONS IN N.A.S.
Thousand Mt.
768
709
537
0
100
200
300
400
500
600
700
800
900
2001 2002 2003 2004 2005
Melting Shop
Hot Rolling Shop (flat products)
Cold Rolling Shop
768
709
537
NASNASNASNAS
2005200520052005 2004200420042004% over % over % over % over
2004200420042004
NET SALES 1,981.3 1,708.0 +16.0
RESULT BEFORETAXES 212.0 267.2 -20.7
DEPRECIATION 64.5 54.5 +18.4
RESULT AFTER TAXES 133.6 168.3 -20.7
NET CASH FLOW 198.1 222.8 -11.1
31st DECEMBER 2005 RESULTS
Million USD
NAS COMMERCIAL NETWORK EXPANSION
ATLANTA (GEORGIA)
AGUA MANSA (CALIFORNIA)MINOOKA (ILLINOIS)
TORONTO (CANADA)
COLUMBUS STAINLESS : FACTORY OF
MIDDELBURG (South Africa)
-10%
0%
10%
20%
30%
40%
50%
60%
EVOLUTION OF THE SOUTH AFRICAN RAND VS USD AND EURO (Years 2002 – 2005)
Source: Central Bank
2002 2003 2004 2005
Percentage data
28-Dec-2001 31-Dec-2002 31-Dec-2003 31-Dec-2004 30-Dec-2005
Exchange rate ZAR / USD : 11.835 8.591 6.594 5.645 6.327
Exchange rate ZAR / EUR : 10.430 9.009 8.328 7.690 7.464
ZAR/EURO ZAR/USD
+ 27.4 %
+ 13.6 %
+ 23.2 %
+ 14.4 %
+ 7.7 %
+ 7.6 %
- 12.1 %
+ 2.9 %
+46.5
+28.4
COLUMBUSCOLUMBUSCOLUMBUSCOLUMBUS
2005200520052005 2004200420042004% over % over % over % over
2004200420042004
NET SALES 911.2 1,061.0 -14.1
RESULT BEFORE TAXES -17.8 72.4 ----
DEPRECIATION 28.7 21.7 +32.4
RESULT AFTER TAXES -11.7 51.7 ----
NET CASH FLOW 17.0 73.4 -76.8
Million €
31st DECEMBER 2005 RESULTS
EVOLUTION OF COLUMBUS RESULT AFTER TAXES
22.7
-15.4 -11.7
51.7
-20
0
20
40
60
02 03 04 05
Million €
ROLDAN, S.A. : FACTORY OF PONFERRADA
2005200520052005 2004200420042004% over % over % over % over
2004200420042004
NET SALES 321.7 302.2 +6.5
RESULT BEFORE TAXES 10.8 20.6 -47.7
DEPRECIATION 6.2 8.3 -25.0
RESULT AFTER TAXES 7.0 13.5 -47.9
NET CASH FLOW 13.3 21.8 -39.1
ROLDAN, S.A.ROLDAN, S.A.ROLDAN, S.A.ROLDAN, S.A.
31st DECEMBER 2005 RESULTS
Million €
EVOLUTION OF THE CONSOLIDATED GROUP (E.B.I.T.D.A.)
511.6
209.4
164.2
238.8
158.3
232.7
407.7
638.7
310.6
415.4
0
100
200
300
400
500
600
700
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
(IAS)
Million € (% over sales)
14.617.7
12.916.7
26.2
11.5
16.3
10.7
15.8
9.9
31st DECEMBER 2005 RESULTS
CONSOLIDATED GROUP 2005
Thousand Euros IAS Spanish GAAP IAS Spanish GAAP IAS
Net Sales 4,213,559 4,041,044 4,035,769 +4.3% +4.4%
Gross Operating Result (EBITDA) 415,418 638,749 633,386 -35.0% -34.4%
Net Operating Result (EBIT) 257,928 501,705 503,370 -48.6% -48.8%
Result Before Taxes and Minorities 228,214 490,226 496,510 -53.4% -54.0%
Depreciation 111,774 135,144 129,212 -17.3% -13.5%
Gross Cash Flow 339,989 625,370 625,722 -45.6% -45.7%
Result After Taxes and Minorities 154,468 302,913 313,360 -49.0% -50.7%
Net Cash Flow 266,242 438,057 442,572 -39.2% -39.8%
2004 Variation
Million Million EurosEuros
PROVISION TO ADJUST THE INVENTORIES VALUE
TO THE NET REALIZABLE VALUE
Net Operating Result (EBIT)
Result Before Taxes and Minorities
257.9
228.2
299.5
269.8
CONSOLIDATED GROUP
PublishedDecember, 31st 2005
Hypothesis without provision
41.6
41.6
Difference
CONTRIBUTION TO THE RESULT AFTER TAXES AND MINORITIES (%)
YEAR 2005
-6.4
-4.9
6.6
35.9
-0.4
69.3
-10 0 10 20 30 40 50 60 70
Overseas Trading
Companies
Columbus
Domestic Trading
Companies
Roldan e Inoxfil
Acerinox
NAS
FIVE YEARS EVOLUTION OF THE ACERINOX SHARE AND THE INDEX IBEX-35
-60
-45
-30
-15
0
15
30
45
60
75
%
+51.3%
+17.8%
29-12-00 : ACX= 8.12 IBEX 35= 9,109.8
30-12-05 : ACX= 12.29 IBEX 35= 10,733.9
2001 2002 2003 2004 2005
Percentage Data
ACERINOX IBEX 35
0,00
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
96 97 98 99 00 01 02 03 04 05
RETURN TO SHAREHOLDERS
0.34
0.2850.270.27
0.225
0.195
0.18
0.15
0.285
0.12 0.12 0.12
0.225
0.27
0.1950.21 0.21
0.260.03 0.03
0.030.075
0.0750.075 0.075
0.08
0.34
0.26
0.08Reduction of
Share Capital
Issue Premium
Refund
Dividend
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
€ / share
0
500
1.000
1.500
2.000
2.500
3.000
3.500
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
MARKET CAPITALIZATION OF ACERINOX, S.A.
1996 - 2005
Million €
CompoundCompound AnnualAnnual GrowthGrowth : 10.3%: 10.3%
3,500
3,000
2,500
2,000
1,500
1,000
500
0
REASONS FOR THE MEDIUM TERM OPTIMISM
- The stainless steel consumption will return to grow at the
historical rate of 6% (last 55 years), when raw materials prices
decrease to reasonable levels.
- Less competitive factories and facilities will continue been closed
- Some announced projects of capacity increase will be cancelled
or delay.
- Consumption per capita in countries such as China, India and
other countries with big population, will grow with very high rates.
- Normal prices of raw materials will allow to develop new
applications and to resume the substitution process of other
alternatives materials