Group overview September 2016
Antonio Marcegaglia Chairman Chief Executive Officer Emma Marcegaglia Vice Chairman Chief Executive Officer Founded in 1959 and fully owned by the Marcegaglia family, the group is headquartered in Gazoldo degli Ippoliti, Mantova. Focusing on downstream processing within its extended value chain, Marcegaglia develops the world s widest range of customer tailored steel semi-products and finished goods. Steno Marcegaglia, Founder (1930-2013) The Marcegaglia business model relies on: a combination of high flexibility and economy of scale high diversification of products/markets/industry segments capillary network in sale, international network in purchasing. September 2016 2
Marcegaglia at a glance MARCEGAGLIA TODAY 5,4 million ton processed yearly (2015) 6% OTHERS* 4,1 billion euro sales (2015) 6,500 employees 1 st product range in the world, in terms of width and variety 94% STEEL 43 plants, 60 sales offices 210 representatives 15,000 customers 6,000,000 sqm manufacturing areas * Others include metal solution for building industry, components for the Appliances Industry, Tourism and Real Estate GROUP OVERVIEW September 2016 3
Marcegaglia at a glance WORLDWIDE PRESENCE Bremen Düsseldorf Praszka Kluczbork Dudley Yangzhou Lyon Barcelona Munhall Garuva Vladimir Istanbul Pune Gazoldo degli Ippoliti HEADQUARTERS Gazoldo degli Ippoliti Boltiere Lomagna Lainate Dusino San Michele Corsico Gazoldo degli Ippoliti San Giorgio di Nogaro Contino Gazoldo degli Ippoliti Tezze sul Brenta Casalmaggiore Albignasego Forlì Outsourcing inox Osteria Grande Ravenna GROUP OVERVIEW September 2016 4
Marcegaglia key features Ownership 100% Marcegaglia family Strong market presence (more than 15,000 customers) Strong company values Wide range of products Focus on quality, service, innovation High diversification of markets Obsession with growth, constant and self-financed throughout 50 years Economies of scale + production flexibility Unique strategic positioning GROUP OVERVIEW September 2016 5
Marcegaglia key features OBSESSION FOR GROWTH Turnover Production 8.000.000 5.000.000 4.500.000 Compound annual growth rate = ~8.2% (year 2002-2014) euro/000 7.000.000 6.000.000 4.000.000 3.500.000 5.000.000 3.000.000 4.000.000 2.500.000 3.000.000 2.000.000 1.500.000 2.000.000 1.000.000 Recovery from crisis lows = +62% (year 2014 vs 2009) 1.000.000 500.000 0 4.320.825 3.821.874 2.526.612 4.244.885 3.939.407 3.460.232 2.699.332 2.603.361 1.987.547 1.694.817 4.100.000 4.090.000 4.127.000 4.190.000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 YEAR 1959 1980 1990 2000 2002 2004 2006 2008 2010 2012 2013 2014 2015 TONS 1000 4.600.000 5.300.000 4.500.000 3.510.000 2.985.000 2.650.000 1.100.000 350.000 5.400.000 5.300.000 5.100.000 5.000.000 GROUP OVERVIEW September 2016 6
Marcegaglia key features UNIQUE STRATEGIC POSITIONING While not really involved in the upstream, Marcegaglia covers the entire downstream steel value chain. PRIMARY STEEL PRODUCTION IRON MAKING STEEL MAKING CASTING HOT ROLLING FIRST TRANSFORMATION PICKLING COLD ROLLING GALVANISING COATING INTERMEDIATION TUBE WELDING SECOND TRANSFORMATION PROFILING DISTRIBUTION CUTTING and SLITTING FINISHING and DISTRIBUTION STAMPING END USERS MARKET GROUP OVERVIEW September 2016 7
The Group structure The Group has reorganized his activities by clearly separating the core business (steel) from the diversified activities and creating three different Newcos within the Steel (Marcegaglia Carbon Steel, Marcegaglia Specialties and Marcegaglia Plates) to better pursue dedicated growth opportunities in each segment. FIN. MAR. MARFIN Staff Corporate MARCEGAGLIA HOLDING MARCEGAGLIA STEEL MARCEGAGLIA INVESTMENTS MARCEGAGLIA CARBON STEEL MARCEGAGLIA SPECIALTIES MARCEGAGLIA PLATES Building Marcegaglia Buildtech M. Gulf Italia M. Gulf Qatar FLAT PRODUCTS WELDED TUBES STAINLESS STEEL PRODUCTS COLD-DRAWN BARS HEAVY PLATES M. Romania Dalmine LS HEADQUARTERS GAZOLDO DEGLI IPPOLITI HEADQUARTERS GAZOLDO DEGLI IPPOLITI 1 PLANT ITALY San Michele 3 PLANTS ITALY 4 PLANTS ITALY 2 PLANTS ITALY 1 PLANT ITALY San Giorgio di Nogaro Home Products 3 WAREHOUSES ITALY Oskar PLANTS & SALES OFFICES MARCEGAGLIA CHINA MARCEGAGLIA DO BRASIL MARCEGAGLIA POLAND MARCEGAGLIA UK PLANTS & SALES OFFICES Mariven MARCEGAGLIA RU MARCEGAGLIA TURKEY MARCEGAGLIA USA Imat Energy ETA CO.GE.AM EuroEnergy Group Others particip. Others particip. MARCEGAGLIA BENELUX Engineering Elet.Ca MARCEGAGLIA DEUTSCHLAND Made HSE SALES OFFICES MARCEGAGLIA FRANCE MARCEGAGLIA IBERICA Tourism & Real estate Albarella Others particip. MARCEGAGLIA INDIA Gaia Turismo Others particip. MARCEGAGLIA NORTH EUROPE Palazzo Agricoltura Gabetti Property Solution OTHERS PARTICIPATIONS Metal Interconnector Fontana SIM Consorzio ABSOLUTE Consorzio Absolute Others participations GROUP OVERVIEW September 2016 8
Marcegaglia flat capacities summary CARBON STEEL STAINLESS STEEL k ton/y capacity n. of lines Pickled and Oiled 3.500 3 Cold rolled 2.500 8 Annealing/Skinpass 1.200 75 Hot Dip Galvanized 1.800 4 Pre-painted 570 2 Service center 2.500 5 (plants) Heavy plates 400 1 Tubes and pipes 3.000 ~100 k ton/y capacity n. of lines A/P lines (HR/CR) 500-300 2 Cold rolled 250 2 Tubes and pipes 500 ~100 GROUP OVERVIEW September 2016 9
Marcegaglia key features GLOBAL FIGURES 2013-2015 k ton 2014 2015 Actual 2016 Budget Total Steel 5.300 5.400 5.700 Carbon Steel Flat Products 2.500 2.550 2.700 Carbon Steel Welded Tubes 1.500 1.550 1.650 Carbon Steel Heavy Plates 350 350 350 Stainless Steel Products 380 400 450 Carbon Steel Drawn Bars 200 200 200 Others 370 350 350 GROUP OVERVIEW September 2016 10
The growth guidelines MORE VOLUME, WITH FOCUS ON SPECIALITIES Carbon Steel Products Semi-processed Silicon Steel Dual Phase Grades High Strength Steels Pre-painted Steels Galvanized Steels ERW Carbon Steel Precision Tubes Cold-Drawn Tubes as replacement for Seamless Tubes Specialty Quarto Plate for end-users GROUP OVERVIEW September 2016 11
The growth guidelines MORE VOLUME, WITH FOCUS ON SPECIALITIES Stainless Steel Products FOCUS ON PROJECTS/END USERS AUTOMOTIVE TUBES growing presence in the automotive market in countries with high growth potential PROCESS PIPES - Heat Exchangers - Feedwater Heaters - Power Plant Evaporators - Boiler Tubes - Press Fitting - Thin Wall Small Tubes in Ferritic - Duplex and Exotic Grades GROUP OVERVIEW September 2016 12
The growth guidelines MORE INVESTMENTS, WITH WIDER INTERNATIONAL PRESENCE INVESTMENTS ABROAD up to 2008: 200 million euro Munhall, Usa 10 million euro Kluczbork, Poland 150 million euro Vladimir, Russia 40 million euro New 2009-2014: 460 million euro Total invest. abroad: 660 million euro Dudley, UK 10 million euro TURNOVER 2010 Total 3.765 million euro Produced abroad 8% Yangzhou, China 180 million euro TURNOVER 2014 Total 4.1 million euro Garuva, Brazil 60 million euro Produced abroad 12% Corlu, Turkey 10 million euro GROUP OVERVIEW September 2016 13
GAZOLDO DEGLI IPPOLITI (ITALY) HEADQUARTERS AND PLANT
RAVENNA (ITALY) PLANT
via Bresciani, 16 46040 Gazoldo Ippoliti, Mantova - Italy www.marcegaglia.com