deacero corporate presentationdeacero.com/ecd/matriz/us/deacorppres.pdf · about deacero 04 deacero...

DEACEROCORPORATE PRESENTATIONLeader in Steel Products

April 2015

COMMITTED TO SUSTAINABLE GROWTH

07 MILESTONES OF DEACERO GROUP 17 GLOBAL

PRESENCE

08 COMMERCIAL STRENGTH 18 MARKETS

12 PRODUCTION STRENGTH 19 BRANDS

13 RECYCLING CENTERS 20 VARIETY

OF PRODUCTS

04 ABOUTUS 14 MILLS 26 PRODUCT

LIST

05 MISSION AND VISION 15 FINISHED

PRODUCT PLANTS 27 SUSTAINABILITY

06 VALUES AND PHILOSOPHY 16 OUR

LOCATIONS 28 COMMUNITY

31 OUTLOOK

AboutDeacero

04

Deacero is a steel company strongly committed to a sustainable strategy of growth that benefits our company, the environment, our employees and the communities in which we operate.

We are a fully integrated steel manufacturer focused on providing the best possible service to our customers in many industries around the world. Our production processes meet ASTM and international product quality standards by using state-of-the-art mill technology.

This results in producing quality products reliably, efficiently, safely and in accordance with our sustainability initiative.

At Deacero, our sustainability initiative is the guiding principal to all facets of our operation. It adds social, economic and environmental value to everything we do.

We actively participate in industry associations and organizations supporting sustainability.

Deacero 2015 | Commercial Strategy and Planning | Confidential

Missionand Vision

05

Provide high quality products and services with the purpose of benefiting our customers, suppliers, employees and community, while continuing to be the innovative leader in the markets in which we participate. At the same time, assuring our position in the marketplace, safeguarding our sustainability standards in our operations while maintaining a professional, active, result oriented, and efficient mindset.


Values andPhilosophy

06

In short, our philosophy is to continue to develop the best practices in the industry in terms of organizational structure, management, costs, innovations, quality and professionalism. We strive to lead by example and be ahead of the curve on technology.

in all aspects of business operations and processes.

EXCELLENCE

relationships inside and out of the company.

NURTURE

and integrity.

TRANSPARENCY

teamwork and productivity.

PERFORMANCE

committed to professional growth and development of employees.

STABILITY


Milestones ofDeacero Group

Mr. Cesar Gutiérrez founds a modest workshop with no more than a dozen emplo-yees to install steel wire fences in Monterrey, Mexico. That same year the company starts fabricating its own chain link and barbed wire.

Sales offices open in Mexico City. A steel wire production plant is opened in Monte-rrey, expanding their line of products and increasing production capacity.

Sales offices open in Guadalajara. Deacero continues expansion southward opening a wire plant in the city of Puebla serving central and south Mexico, Latin America and the Caribbean.

Further expansion for Deacero, another steel wire production plant is opened in Saltillo, Mexico. Ramos Arizpe steel mill starts operations, producing wire rods and their derivatives including billets.

Deacero moves its headquarters to San Pedro Garza García, N.L. Opens the first warehouse in U.S.A. in Laredo, Texas. Celaya mill starts operations with a capacity of two million tons per year. Deacero acquires a competitor in México, Aceros Nacionales, and Alprosa. Deacero launches first U.S.A. brand: Range-master.

Guadalupe wire plant, Ramos Arizpe mill and other recycled centers start operations throughout the country. The company continues growing, acquiring other companies Lemac, Cablesa, and Acerocentro in Mexico, Automat in Spain and Wright, Washington Wire Rope, Staytuff and Mid Continent nails in the U.S.A.

07

1952

70’s

90’s NEWMILLENNIUM

80’s

60’s


CommercialStrength

08

DIVERSITY

Products More than 3,800 different products within 82 product lines.

Clients More than 10,000 active customers.

Market Sectors

Relationships with different sectors and sub-sectors with opposite cyclical behavior.

Market Presence in more than 20 countries worldwide.

Added value

Our customer base is very diversified; no single customer represents more than 2.5% of our total sales.

Mix of products with added value/ economies of scale .


CommercialStrength

09

Over the last 50 years the company has developed its own commercial structure.

Sales are made directly to customers with no middleman.

Global coverage

Our products and our diverse customer base align to create an efficient logistics network and an optimal mix of products in each shipment based on weight and volume.

Creates intangible value by reaching viable sales goals and margins, at the same time strengthening our capabilities to commercialize new products.

COMMERCIALSTRUCTURE


CommercialStrength

10

Continuous improvement of existing products, new product innovation and the development of substitute products.

Focus on current market consolidation, as well as on the development of new and more profitable markets.

Well positioned brands both in the domestic (Deacero, ANSA, Acerocentro)and international markets (Deacero, Buildmaster, Designmaster, Rangemaster, Wright, Magnum, Stay Tuff, DWR).

A careful marketing sales strategy of products that compete with the imports.Satisfy the market’s changing needs and develop customer loyalty by creating a wide variety of products.

PRODUCTSTRATEGY


11

Detailed knowledge of the market

Concentrate marketing strategy on expansion of customers, markets, geographic areas and products.

Detailed research on customer needs in order to focus our development of new products.

Decision making based on real market information and strategic marketing.

TARGETEDMARKETING

CommercialStrength


ProductionStrength

12

Possesses its own advanced technology for recycling steel scrap and converting it into steel products.

All manufacturing processes focus on efficiency, safety, reliability and sustainability.

Deacero group excels because of its production capacity and strength.

DEACERO GROUP IS FOCUSED ON CONTINUOUS IMPROVEMENTAND BEST PRACTICES WITHIN THE INDUSTRY.


RecyclingCenters

13

3.6 million tons per year.

Deacero is one of the largest scrap metal recycler in Mexico.

Collect, sort, shear, compact and shred.

17 collection centers, 16 in Mexico and 1 in the USA.5 shredding centers.

RECYCLINGCENTERS

CONSUMPTIONCAPACITY

THE PROCESS

THE FACILITIES


Mills

14

4.5 million tons per year

Deacero is one of the main producers of long steel products in Mexico.

Billet in electric furnace as well as rebar, wire rod, rounds, squares, angles, channels and beams produced in rolling mill.

Three mills located in Mexico.

Steel scrap, pig iron and steel wool.

MILLS

PRODUCTION CAPACITY

PRODUCTS

FACILITIES

RAW MATERIAL


Finished Product Plants

15

1,400,000 tons per year.

Deacero is one of the largest wire and galvanized wire product manufacturer in the world.

Variety of fabrication processes depending on the product.

11 plants in Mexico and 2 plants in the USA.

High and low carbon wire rod.

PLANTS

CAPACITY

PROCESS

FACILITIES

RAW MATERIAL


OurLocations

16

. FINISHED PRODUCT PLANTS

. MÉXICO

. Mexicali, BCN

. Saltillo, COAH

. Monterrey, NL

. Guadalupe, NL

. Celaya, GTO

. Tlalnepantla, EDO MEX

. Puebla, PUE

. USA. Houston, TX. Poplar Bluff, MO

. MILLS

. MÉXICO

. Ramos Arizpe, COAH

. Saltillo, COAH

. Celaya, GTO

..INDUSTRIAL WIRE PLANTS

. MÉXICO

. Morelia, MICH

. Celaya, GTO

. Querétaro, QUE

. León, GTO

. RECYCLING CENTERS

MÉXICO. Ensenada, BCN. Mexicali, BCN. Tijuana, BCN. Mérida, YUC. Guadalajara, JAL. Hermosillo, SON. Puebla, PUE. Cuernavaca, MOR. Tlalnepantla, EDO MEX. Tepeyac, EDO MEX. Tultitlán, EDO MEX. Saltillo, COAH. Matamoros, TAMPS. San Luis Potosí, SLP. Guadalupe, NL. San Nicolás, NL

. USA

. Corpus Christi, TX (H&H)

. SALES OFFICES

MÉXICO. Monterrey, NL. Guadalajara, JAL. Tlalnepantla, EDO MEX. Puebla, PUE

. USA

. New Braunfels, TX

. Phoenix, AZ

. DISTRIBUTION CENTERS

. MÉXICO

. Tijuana, BCN

. Cualiacán, SIN

. Guadalajara, JAL

. Veracruz, VER

. Mérida, YUC

. Tapachula, CHIA

. Chihuahua, CHIH

. Villahermosa, TAB

. La Chontalpa, TAB

. USA

. Laredo, TX

. Chicago, IL

. Spokane, WA

. Fontana, CA

. Birmingham, AL

. Chambersburg, PA


GlobalPresence

17

Deacero has a global business vision and is always searching for new horizons and opportunities to offer better alternatives in markets all around the world.


Markets

18

FENCECustomers in the fencing market desire a high level of protection, durabi-lity and effectiveness; keeping this in mind, Deacero offers a variety of fencing and mesh products.

CONSTRUCTIONDeacero provides different commodities for concrete reinforcement from the standard materials on light building projects to highly specialized on complex applications and specs.

HARDWAREThis market is serviced by a variety of mesh, wire and nails. Its variety, versatility and cost efficiency are the key to market success. We offer an infinite number of options for any particular need.

INDUSTRIALWith a variety of wire and specialized cables we can accommodate our customers in machinery and other industrial markets.

FARM & RANCHCompany serves the farm & ranch market with a wide variety of fence meshes, wires, nails and hardware for their daily needs.


Brands

19

Triple Nudo

M A L L A G R A D U A D A


Variety of productsFence and Mesh

20

Deacero offers agricultural, commercial and residential markets with high quali-ty fencing systems.

Designmaster and fixed-knot fence are fencing systems designed specifically to combine beauty, functionality and durabi-lity. For the customer looking for added security measures, we also offer a variety of welded mesh and barbed wire.


Variety of productsIndustrial and commercial wire

21

Deacero produces industrial and com-mercial wire for many different uses and applications.

We offer a variety of wire for multiple proces-sing industries ranging from bright basic, galvanized, high or low carbon and other highly specialized products.


Variety of ProductsNails

22

Deacero produces a variety of nails for construction and residential uses.

We offer standard nails like galvanized and bright basic, as well as others like concrete, box, roofing, finishing and casing nails. As well as a variety collated nails and staples.


Variety of ProductsRebar and wire rod

23

Deacero produces a variety of grade 42 and 60 rebar for concrete reinforcement.

Deacero rebar is produced according to all local and international standards where it is sold. Our priority as a company is to manu-facture this way in order to provide the architect and builder with confidence.


Variety of ProductsCables

24

Deacero produces mechanical and electromechanical cables for various uses.

Deacero cables are produced using the latest technology and ASTM standards. Deacero cables supply many in the electrical, communication, transportation, mining, fishing and oil industries.


Variety of ProductsMerchant Bars, Shapes & Beams

25

Deacero produces a variety of merchant bars, shapes and beams for different construction applications.

Deacero has a vast selection of round and square bars, angles, channels, wide and stan-dard I-beams; all meet ASTM construction market standards.


ProductList

26

NAILSFinishConcreteDuplexStandardHorseshoeRoofing

CollatedPlaster nailReinforced galvanized nailConcrete spiral nailTomatoCollated nail gun

CABLESElectromechanicalMechanicalSling

FENCE AND MESHTruss GirderWire reinforcement shapeHardware ClothFlat wire rod shapeGabionGalvanized Chain Link and PVCField FenceHexagonal nettingConcrete reinforcement matMosquito netWelded Mesh

Light re-meshStucco meshFixed knot fenceWelded meshCWC meshPanelHog panelPerforated metalWindow protectorDesignmaster FenceCrowd Control Fence

WIREBaler wireCopper clad steelMattress spring wireChrome plated wireGalvanized wire Black wireTie wireFlat wirePre-stressing wireBarbed wire low and high tensileBright wire

PVC wireBlack annealed wireMerchant wireTensilac wireChainElectric fenceRazor wireStaplesFence StaysPC strandsRebar 6000

WIRE RODConstructionIndustrial

REBARRebar 6000Rebar 42

OTHERBilletPost

FENCES. Classic. Contempo. Forte. Ornamentals. Window Protector. Crowd Control

BARS / SHAPES / BEAMSAnglesChannelSquareRoundBeamsViga IPSViga IPR


Sustainability

27

At Deacero, our sustainability initiative is the guiding principle to our three-pronged approach to all facets of our operation, resulting in added social, economic and environmental value.

ECONOMY Generate competitive advantage and growth by implementing the latest technology in all of our fabrication processes.

Provide our customers with the correct products in a professional, personal and honest manner.

Offer time saving solutions that also benefit our society and the environment.

Remove scrap metal from the environment.

Sell recyclable scrap metal material once considered waste to production plants, recycling facilities and recycling operations in other industries.

Constantly seek new ways to reduce water usage, power consumption, and air emissions.

ENVIRONMENTAL

SOCIETY Visualize and promote our philosophy and company values.

Ensure physical well-being of all our employees by providing a safe work environment.

Continuous improvement for employees in order to increase knowledge and professionalism.


Communityand Employees

28

Personal Growth Personal Growth

Work is a means to and end, not an

end in itself.

Commitment to creating a better

future

DNADEACERO

Personal Development

Commitment to the community

Make it long lasting

The organization is focused on creating a healthy, efficient and productive labor force. We promote

a culture of positivity where all personnel remain informed and empowered.


Sinergia HumanaWorking together

29

The purpose of this program is to promote and facilitate opportunities of growth and development of our employees professionally, personally, and as member of our greater society.

We believe everyone should have the opportunity to learn and develop new skills and we foster a culture of continuous improvement and attention to the smallest details. We are interested in our employee’s ideas and encourage their feedback.

We aim to do our part for the greater good by maximizing our employees confindence in themselves and their unique talents.


The DeaceroFoundation

30

Just over the last few years The Deacero Foundation has supported and funded almost 1900 projects from 580 different organizations and causes.

The Deacero Foundation was created to bridge the gap between Deacero and the community. It supports programs that offer social development, healthcare and educational assistance to low-income communities.

Deacero Foundation is committed to society and maintains its founder legacy and vision.


Outlook

31

Quick response times and alertness to changes in the environment.

Sustainable growth.

High profitability.

Stable Finances.

Expansion and evolution.

Industry leadership in technology and innovation.

Efficient operations

The success and execution of our strategy has led us to develop a unique bu-siness model in the steel industry, which has resulted in the following:


JOININGFORCES

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