ANNUAL REPORT 2016 Annual Report 2016

ANNUAL REPORT 2016 Duferco Group

STRATEGY 6

MISSION 10

DIVISIONAL ORGANIZATION 12 CONTENTS GLOBAL LOCATIONS 14 FINANCIAL REVIEW 20

FINANCIAL STATEMENTS 24

BUSINESS REVIEW 28

Energy Trading Division 29

Energy Retail, Renewable Production & Origination Division 32

Shipping Division 35

Steel Production and Distribution Division 38

Investment Division: Diversified Activities 41

Investment Division: Steel Trading 45

GOVERNANCE 48

CORPORATE DIRECTORY 60

4 5 Annual Report 2016

2016 WAS A VERY IMPORTANT YEAR FOR DUFERCO: IT LAID THE FOUNDATION OF A TRANSFORMATION PROCESS THAT WILL ULTIMATELY CHANGE THE FOCUS OF DUFERCO’S FUTURE STRATEGY, FOLLOWING THE OBJECTIVES OF ITS SHAREHOLDERS AND LEVERAGING THE SKILLS AND EXPERIENCES OF ITS TEAM OF KEY MANAGERS, READY TO ACCOMPANY DUFERCO DURING THIS EXCITING PROCESS.

In 2015, the shareholders of Duferco Participations Holding SA (DPH), top holding of the Duferco Group, decided to sell the majority of its steel trading arm, Duferco International Trading Holding SA (DITH) to Hesteel Group (formerly named Hebei Iron & Steel Group), the largest steel producer in China. While maintaining a significant minority stake in DITH, Duferco has strategically decided to leave its historical core business and focus on its new diversified operations.

During the course of its life, Duferco has experienced essentially four strategic phases.

The 1st phase (1979-1995) saw Duferco as a “pure steel trader” developing successfully to STRATEGY cover a global presence and profitable business operations. The 2nd phase (1996 -2011) saw Duferco as an “industrial player” implementing a significant acquisition campaign in Western Europe, Eastern Europe, Russia, USA, South Africa and Central America. By the end of 2011 almost all the shareholding or the controlling stake of these industrial units was disposed of.

The 3rd phase (2011-2015) saw Duferco as a “vertically integrated steel and energy trader” with some residual steel industrial presence in Europe (JV Duferdofin-Nucor, Duferco Danish Steel and Makstil) and South Africa (DSP and Vanchem).

Finally, the current 4th phase (2015-today) following the disposal of the controlling stake of the steel trading arm to Hesteel Group, sees Duferco as a “diversified investor with main focus on three areas: 1) energy (trading, renewable power production, origination and retail), 2) shipping and 3) industry (steel production and distribution)”.

The legacy with the past and the ability to capture fundamental trends in the business is a key heritage that has been deeply consolidated into the mind-set of the “people of Duferco” over the years and that is now going to be the basis for the future developments of the Group. The steel trading, production, transformation and distribution distinctive competences of the people of Duferco, as well as a number of industrial assets are still held by DPH and are now grouped in the Industrial Division of the new Duferco Group. Duferco’s JV with Nucor Group (Duferdofin-Nucor) continues its strategy of product diversification to become leader in the higher added-value segments of the market, and the downstream integration with selected re-rolling mills allows Duferdofin-Nucor to maximize the productivity of its mill.

Aside from the core competences of the Group, there is a whole new area, derived from the previous experiences but outside the perimeter of DITH, that has been nicely developing over the last decade and that is going to be the focus of the future developments of Duferco and that is grouped in the Energy Division.

6 7 Annual Report 2016

IN THE ENERGY DIVISION THE MISSION IS TO CONSOLIDATE A MAIN PORTFOLIO OF TRADING ACTIVITIES BASED ON EUROPEAN AND AMERICAN POWER & GAS MARKETS WHILE DEVELOPING, ON ITS SIDE, NEW TRADING OPERATIONS IN THE SECTOR OF OIL AND LNG.

Scheme of Duferco Group by Business Division

In the Retail sector in Italy the strategy is to position Duferco Energia as an efficient and innovative service provider for a number of target counterparties (energy consumers and DUFERCO PARTICIPATIONS HOLDING SA, LUXEMBOURG renewable energy producers) in the sector of energy and energy efficiency and acquiring market shares by continuing to develop our already strong sales network on the whole national territory. Energy Shipping Industrial Investment The synergies with our captive renewable production assets in Italy are contributing to DIVISION DIVISION DIVISION DIVISION reinforce the potential for profitability of the whole Italian energy group while consolidating a component of the overall energy trading portfolio activities of the Duferco Group that is key from a risk management perspective.

The Energy Trading division based in Lugano (DufEnergy Trading SA) has recently diversified into non-energy types of commodities expanding its trading area of expertise. Following this product diversification, DufEnergy has recently decided to start a process aimed to change its corporate identity. The hope is to better reflect the new business idea the company wants to pursue in the future years as a diversified portfolio trading company.

Shipping is another area where the people of Duferco have focused their interest during the last decade: the long-lasting partnership with the Romeo Group, as well as an Trading historical link with the steel trading activities has given a great opportunity to mature a strong experience and knowledge of the fundamentals of this business that has already Retail Shipping Diversified contributed to obtain good results. Following Energy, the Shipping Division is also going Investments Activities to be key in the future development of Duferco. Renewable Steel Production Production Shipping & Distribution Steel Finally, a number of minor holdings are part of the Duferco portfolio of diversified activities. Services Trading

In the next figure it is shown a scheme of the Duferco Group reflecting the a.m. business Renewable divisions that represent the business portfolio of the Group. Origination

8 9 Annual Report 2016

OUR MISSION IS TO DEVELOP A HIGHLY QUALIFIED AND AGILE DIVERSIFIED

GROUP, WITH ITS CORE ACTIVITIES IN THE ENERGY, INDUSTRIAL AND SHIPPING

BUSINESSES.

IN DOING SO, WE AIM TO DEVELOP A STRONG PORTFOLIO OF ACTIVITIES

THAT COULD GROW SUSTAINABLY OVER THE NEXT YEARS WHILE PRODUCING

LONG-TERM RISK-ADJUSTED RETURNS ON EQUITY INVESTMENTS WHICH ARE

ABOVE AVERAGE OF THEIR RESPECTIVE SECTORS.

THE SHAREHOLDERS ARE CONSCIOUS THAT TO REACH THIS GOAL, THEY

NEED TO KEEP DEVELOPING AN ENVIRONMENT THAT CAN ATTRACT

THE BEST TALENTS WHILE GIVING TO COMPANY’S MANAGEMENT

UNIQUE OPPORTUNITIES FOR PROFESSIONAL GROWTH AND PERSONAL

SATISFACTION.

IT IS SHAREHOLDERS’ COMMITMENT TO PROMOTE THESE GOALS WITH

INTEGRITY AND PROFESSIONALISM, IN COMPLIANCE WITH LEGAL AND

REGULATORY REQUIREMENTS, WHILE RESPECTING THE DIGNITY AND THE

RIGHTS OF ALL INDIVIDUALS AND AVOIDING ANY FORM OF DISCRIMINATION.

10 11 Annual Report 2016

ENERGY DIVISION

TRADING Europe, USA and Brazil RETAIL, RENEWABLE PRODUCTION & ORIGINATION Italy

SHIPPING DIVISION

HEADQUARTER DIVISIONAL Luxembourg SHIPPING OPERATIONS ORGANIZATION Switzerland

INDUSTRIAL DIVISION

STEEL PRODUCTION & DISTRIBUTION Europe

INVESTMENT DIVISION DIVERSIFIED ACTIVITIES Italy, Belgium and South Africa

STEEL TRADING (DITH) Luxembourg

12 13 Annual Report 2016

BELGIUM BRAZIL BULGARIA CANADA COLOMBIA CZECH REPUBLIC DENMARK FRANCE GLOBAL ITALY LUXEMBOURG LOCATIONS REPUBLIC OF SOUTH AFRICA SERBIA SPAIN SWITZERLAND THE NETHERLANDS TURKEY U.A.E. UNITED KINGDOM USA

14 15 Annual Report 2016

GLOBAL LOCATIONS

Duferco Thionville SAS u Duferco Italia Holding SPA s BELGIUM YUTZ S.ZENO NAVIGLIO (BRESCIA) THE NETHERLANDS Duferco Wallonie SA ★ Nova Marine NL BV 6 CHARLEROI Duferdofin - Nucor SRL n ROTTERDAM ITALY S.ZENO NAVIGLIO (BRESCIA) Deep Green SA ★ Virtual SRL u CHARLEROI CHIAVARI (GENOVA) Acofer Prodotti Siderurgici SRL u TURKEY S.ZENO NAVIGLIO (BRESCIA) Dufenergy Tikaret Anonim Sirketi ❂ Duferco Trebos NV n Duferco Biomasse ISTANBUL TILDONK CUNEO Duferco Italia Holding SPA u TORINO Energia & Territorio SRL n U.A.E. n BRAZIL GENOVA Duferco Solar Trieste SRL Nova Marine Carriers Middle East DMCC 6 ❂ TRIESTE Matrix Comercializadora de Energia LTDA DUBAI SAO PAULO Duferco Solar SRL n n GENOVA Ferriere Bellicini SRL BERZO INFERIORE (BRESCIA) UNITED KINGDOM BULGARIA Duferco Solar Puglia SRL n n Grafton Commoditiy Trading LTD D Nova Log Ltd 6 GENOVA Caleotto SPA S. ZENO NAVIGLIO (BRESCIA) LONDON SOFIA Duferco Energia SPA u n Neo Operations Ltd GENOVA Media Steel SRL CANADA MONTIGNOSO (MASSA CARRARA) LONDON u Nova Marine Carriers SA 6 Duferco Engineering SPA Nova Marine Carriers UK LTD 6 GENOVA MONTREAL LUXEMBOURG LONDON The Adviser SRL n Duferco Participations Holding SA s COLOMBIA GENOVA LUXEMBOURG USA Dufenergy Trading USA LLC ❂ Nova Marine Carriers SA 6 n 6 Elca SRL Nova Marine Holding SA NEW YORK BOGOTÀ GENOVA LUXEMBOURG

Idroelettrica Sud SRL n Dufenergy SA ❂ Dufenergy Commodity Trading LLC HOUSTON CZECH REPUBLIC GENOVA LUXEMBOURG Dufenergy Trading CEE SRO ❂ PRAHA Liguria Ecologia SRL n Duferco Vanadium SA u Dufenergy Petro Inc. GENOVA LUXEMBOURG HOUSTON DENMARK Sider Navi 6 Duferco Danish Steel A/S n GENOVA REPUBLIC FREDERIKSVAERK OF SOUTH AFRICA Utility 360° u Vanchem Vanadium Products (Pty) LTD u GENOVA WITBANK FRANCE s Duferdofin - Nucor SRL n Corporate Centre Duferco France SNC u GIAMMORO (MESSINA) n Energy Production Site AUBERVILLIERS SERBIA u Energy Distribution Centre Acofer (warehouse) u Duferco S Recycling D.O.O. u Duferco Morel SA u Gas Distribution Centre GIAMMORO (MESSINA) KRAGUJEVAC AUBERVILLIERS n Steel Production, Processing Site u Duferco Solar Giammoro SRL n Steel Trading, Distribution and Service Centre Morel Distribution Profils SAS u GIAMMORO (MESSINA) SPAIN u Service Company L’HORME Nova Marine Carriers SA u 6 Shipping Travi e Profilati di Pallanzeno SRL n Duferco France SNC u MADRID ★ Diversification PALLANZENO (VERBANIA) RESSONS u Vanadium ARV SPA n ❂ Gas, Power, LNG Trading Duferco Morel Produits Plats SAS u SWITZERLAND S.GIOVANNI VALDARNO (AREZZO) Biomass ST. JEAN D’ARDIERES DufEnergy Trading SA ❂ Crude Oil and Refined Products Trading Mechanical Division n LUGANO Duferco Morel Quincaillerie SAS u D Base Metals Trading S.GIOVANNI VALDARNO (AREZZO) ST. JEAN D’ARDIERES Nova Marine Carriers SA 6 Acofer (warehouse) u LUGANO Morel Distribution Profils SAS u S.GIOVANNI VALDARNO (AREZZO) ST. JEAN D’ARDIERES Nova Ship Tech SA 6 LUGANO

16 17 Annual Report 2016

Luxembourg Montreal Lugano Brescia

New York Istanbul

Frederiksvaerk Houston

Dubai

Frederiksvaerk

Bogot

London D Rotterdam Bogot Tildonk Charleroi Ressons Luxembourg ❂Praha Aubervilliers Yutz Sao Paulo Witbank

Lugano Pallanzeno St. Jean D’Ardieres L’Horme Trieste Torino Brescia Cuneo Kragujevac Genova Montignoso S.Giovanni Sofia Valdarno s Corporate Centre 6 Shipping n Energy Production Site ★ Diversification Madrid u Energy Distribution Centre u Vanadium Gas Distribution Centre ❂ Gas, Power, LNG Trading n Steel Production, Processing Site Biomass u Steel Trading, Distribution and Service Centre Crude Oil and Refined Products Trading u Service Company D Base Metals Trading Messina

18 19 Annual Report 2016

SUMMARY OF CONSOLIDATED FINANCIAL PERFORMANCE

The Financial Year, which closed on September 30th, 2016, has been quite important in the history of Duferco: Duferco International Trading Holding S.A., Luxembourg is not any more fully consolidated in DPH accounts and the remaining DITH shares held by the Group (22.6%) are now recognized as an investment in an associate.

During this year, Duferco has made considerable progress towards a new business model and the consolidated balance sheet continues to remain very strong.

Summary of Consolidated Financial Performance At the closing of the Financial Year, the Consolidated Equity of the Group is in excess of 811 million USD, more than six times the net financial indebtedness while the FY-2016 net result was Divisional Financial Performance Indicators more than 21 million USD.

Consolidated net working capital is well above 300 million USD with a current ratio of 1.42. The Group’s net financial indebtedness is significantly lower with respect to the previous year (131 versus 193 million USD) while liquidity remains healthy with a level of cash reserves of almost 300 million USD.

As of September 30th, 2016, the Group had roughly 1.5 billion USD (1.1 billion USD as of September 30th, 2015) in committed credit facilities and uncommitted working capital facilities (more than 2.0 billion USD if including credit facilities granted to joint ventures and associated companies).

20 21 Annual Report 2016

DUFERCO’S EQUITY DIVISIONAL BREAKDOWN

OTHER NON CURRENT VANADIUM DIVISIONAL FINANCIAL 1.9% ASSETS, NET DIVERSIFIED 3.7% 0.2% PERFORMANCE INDICATORS STEEL PRODUCTION REAL ESTATE & DISTRIBUTION 6.4% 24.8%

The Divisional breakdown of total Duferco equity of 811 mUSD, as of September 30th, 2016, is SHIPPING reported in the following graph. 7.8%

The Divisional breakdown shows still a substantial portion of equity (18.2%) invested in the steel trading arm DITH with positive returns.

The Energy Division, including both Energy Trading and Energy Retail and Renewable Production & Origination, is absorbing 21.4% of Duferco’s Equity with very positive results.

The Shipping Division is absorbing approximately 7.8% of Duferco’s Equity, has achieved positive results despite the adverse market conditions. 30.09 The Steel Production & Distribution Division is absorbing 24.8% of Duferco’s Equity. The Italian industrial activities contributed a loss of 7.5 million USD to the consolidated result compared to a loss of more than 14 million USD of the 2015 financial year. The loss was mostly NET WORKING concentrated in the first part of our financial year, while since June 2016 the division has started CAPITAL to report a monthly net profit. This situation has been maintained through the start of the new 15.5% 2016 financial year and we have a positive outlook for the coming 3-6 months.

In addition to Real Estate (6.4%), other Diversified investments and Net Non-current assets for another 5.9%, it is worth pointing out the significant portion of short term liquidity (15.5%). ENERGY 21.4%

STEEL TRADING 18.2%

22 23 Annual Report 2016

DUFERCO PARTICIPATIONS HOLDING S.A., LUXEMBOURG AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT

FOR THE YEARS ENDED SEPTEMBER 30 2016 2015* (In Thousand USD)

Energy Trading Revenue 5,675,111 6,555,384 Other Revenue 1,090,172 1,076,681

Total Revenue 6,765,283 7,632,065 Consolidated income statement Depreciation, amortization and impairment losses -14,280 -12,290 Share of results of associates and joint ventures 5,943 -14,109 Consolidated balance sheet Finance expenses, net -7, 853 -3,077

Profit before tax 46,250 35,065 Income tax expense -13,039 -19,295

Profit of the period from continuing operations 33,211 15,770 Discountinued operations Gains / (losses) on disposal of operations 1,038 90,769

Loss for the period from discountinued operations -13,056 -53,484

Result attributable to DITH and subsidiaries* 34,440

Profit for the period 21,193 87,495

(*) On June 25th, 2015, Hesteel Group Co. Ltd. China acquired a majority holding in Duferco International Trading Holding S.A., Luxembourg (“DITH”) and its subsidiaries (the “Trading Group”). As a consequence, the Group’s control over DITH ceased. Starting from July 1st, 2015 onwards, the Group’s share of income and expenses of the Trading Group are included in the Consolidated Financial Statements of the Group using the equity method. For the purpose of a more homogenous comparison with 2016 figures, the Consolidated Income Statement of the Group for the 2015 financial year, is here presented reclassifying since October 1st, 2014 all income and expenses relating to the Trading Group under the caption “Result attributable to DITH and subsidiaries”.

24 25 Annual Report 2016

DUFERCO PARTICIPATIONS HOLDING S.A., LUXEMBOURG AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30 (In Thousand USD) 2016 2015

Current assets 1, 0 57,14 8 1,111,081 Non-current assets 720,772 732,182

Total Assets 1,777,920 1,843,263

Current liabilities 744,800 785,165 Non-current liabilities 222,111 246,999

Total equity 811,009 811,099

Total liabilities and Equity 1,777,920 1,843,263

26 27 Annual Report 2016

ENERGY TRADING DIVISION

THE ENERGY TRADING DIVISION IS THE CORE OF THE ENERGY BUSINESS DEVELOPMENT OF THE GROUP AND IS BASED IN LUGANO, SWITZERLAND.

Started in 2005, as a trading desk aimed to satisfy the hedging needs of the Group’s worldwide industrial power & gas exposure, it developed nicely over the years in many European markets and has recently opened its activities to the North American markets. ENERGY Energy Trading Division The Gas and Power operations grew significantly starting in 2011 when a group of experienced traders joined our team. Since the beginning they contributed to Energy Retail, Renewable Production & develop a strong network of relationship with all top trading Origination Division counterparties in this sectors as well as a large number of utilities, distributors, wholesalers, and industrial groups. As of now, the total number of active counterparties of DufEnergy Trading is 353. SHIPPING Shipping Division On top of that, DufEnergy Trading has obtained all licenses to operate 353 in the key European markets as a shipper and as a storage operator. The total number This network of relationships and the credentials to operate at all levels INDUSTRIAL of active counterparties in the physical energy infrastructure contributed to set the conditions of DufEnergy Trading Steel Production & Distribution Division for developing an important portfolio of trading activities in the European Power & Gas market.

INVESTMENT DIVISION The acquisition of short and medium term rights on various cross-border pipelines, inter- Diversified activities connection high-voltage lines, as well as gas storage facilities, has granted over time an exceptional opportunity for DufEnergy Trading to optimize its European-wide portfolio Steel Trading while offering value-added services to its customers and suppliers.

As of today, operations span in 17 European markets and further expansion in at least 4 other markets is expected in the next future (as represented in the picture below).

Since 2014 we have successfully developed operations in new East European markets, mainly for Gas. Further expansion in this geographical area will continue to be the focus of our development activities for both Gas and Power. The wide presence in the Power & Gas markets also represented an incentive for DufEnergy Trading to look at the LNG market as a natural expansion of its trading activities in the energy commodity sector.

28 29 Annual Report 2016

Energy Trading presence in Europe

ACTIVE MARKETS DNK

GBR NED DEU POL PLANNED BEL EXPANSION CZE

AUT FRA CHE HUN SLO HRV ROU

ITA BGR

POR ESP GRC TUR

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Since 2011 DufEnergy had started to develop a strong physical Crude Oil and Distillates trading company. May 2016. Currently DufEnergy has a team of 4 people the diversification of its trading activities by expanding network of relationship with all top LNG players as The synergies between financial and physical activities concentrated in the financial trading on main Power into non-energy types of commodities. well as a large number of LNG traders. On top of that, is expected to provide significant value to the and Gas markets in the US. DufEnergy Trading obtained all licenses to operate in optimization of our oil portfolio. In November 2016, DufEnergy Trading SA has started the main Re-Gasification Plants in Southern Europe After the closing of FY-2016, the setup of precious metal trading and performed many in-tank storage Compared to the period ended DufEnergy Commodities Trading desk in Lugano with the aim of swap transactions during the past September 30th, 2015, there has LLC has been established in capitalizing on the strong network years. been a positive trend of the Houston, TX with the objective to of relationship with producers and trading business of DufEnergy build a portfolio of WTI financial customers to create a new flow of In 2015 DufEnergy Trading closed Trading with an increase in traded products, as well as to develop, via +71% business not correlated with the the first important LNG transaction volumes: while another related company named energy commodities fundamentals. +87% Power volumes Increase by securing the peak-shaving from 37.9 TWh DufEnergy Petro Inc., a new physical Increase in trading increased by 87% supply to the Italian Gas Grid to 70.8 TWh, Natural Gas traded crude oil activity on the North in Gas trading In the same period Dufenergy SA Operator by means of a supply of volumes of Power volumes increased by 71% American hubs and pipelines. volumes Lux acquired the majority of Grafton LNG to the offshore storage facility from 191.9 TWh to 328.3 TWh. Commodity Trading LTD, a UK named OLT. In the summer 2016 Revenues from trading activities Extremely volatile Power market based company created by a group DufEnergy imported 4 LNG vessels into Italy as part were 5.2 billion EUR, slightly below FY-2015 figure due in Brazil has been the object of interest of our of experienced specialized traders with the objective of the bundles assigned by a tender launched by the to the fact that commodity prices showed a significant shareholders who decided in FY-2014 to acquire, via of building a portfolio of iron ore, mainly traded in the Italian gas operator to support gas-intensive industrial reduction during the last 12 months. Dufenergy SA, a minority participation in a Brazilian Far East financial exchanges. consumers and another 2 LNG vessels aimed to supply trading company named Matrix Energy Trading, with its counterparts on the natural gas domestic market. Recent developments of the Gas and Power the aim of acquiring know-how in a market with a huge markets in the USA have been the object of interest growth potential. During the second half of the 2015 fiscal year of our shareholders who have decided in summer In January 2016, DufEnergy increased to 50% its DufEnergy started a new trading activity on Oil 2015 to start operating in this market, with the aim of shareholding stakes in this company confirming a derivatives markets with the objective of taking further capturing business opportunities and synergies in one commitment to establish itself in the very attractive steps in the diversification of our portfolio. This activity of the most important market areas of the world. After South American Power market. follows the acquisition in 2015 by DufEnergy SA, Lux, an initial startup of activities out of Lugano’s main of a 50% shareholding in Neo Operations Ltd, UK, a office, a new office in New York City was established in In the early part of FY-2017 DufEnergy has continued

30 31 Annual Report 2016

ENERGY RETAIL, RENEWABLE PRODUCTION & ORIGINATION DIVISION

THE ENERGY RETAIL & RENEWABLE PRODUCTION DIVISION OF DUFERCO IS ESSENTIALLY FOCUSED ON THE ITALIAN MARKET AND IS CONCENTRATED IN DUFERCO ENERGIA SPA AND ITS SUBSIDIARIES. THE ACTIVITIES ARE MANAGED AT THE HEADQUARTER BASED IN GENOA, ITALY.

Founded to manage the corporate investments in the renewable production, Duferco Energia progressively focused its activity on the commercialization of energy and gas in the italian market. Today Retail Operations became part of a portfolio of activities that includes significant projects in the Renewable Power Production, as well as Renewable Power Origination. Taking into account 1.5 TWh of gas sales to efficient and innovative service provider to consumers industrial, commercial and residential customers, the and producers in the sector of energy. It also aims to Started in 2009, the Italian portfolio of activities in the Renewable Power Production saw a stable total turnover in FY-2016 was . The overall acquire market shares by continuing to develop our growth until 2014, when regulatory changes in Italy essentially made new investments no longer 805 mEUR number of customers (points of delivery) of Duferco already strong sales network over the whole national attractive in this sector. To date, various renewable energy investments in Albania are in the Energia Retail division exceeded 110,000 at the end of territory. The desired result for Duferco Energia is to planning stage. FY-2016. increase and consolidate a well-balanced and high- quality portfolio of demand and supply activities that As of today, Duferco Energia and its subsidiaries owns different Photovoltaic power plants Duferco Energia is also active as on the can produce value for the shareholders. installed in Italy on the roofs of the facilities of the JV Duferdofin-Nucor in Sicily, Tuscany, on energy trader wholesale power and gas markets the Sertubi facility in Friuli and on the roof of a large logistics center in Apulia. All these units and stock exchanges in the principal A sustainable development is one have been designed and built with the support of Duferco Engineering, Duferco Italia Holding European markets. of the aim of the company as shown subsidiary specialized in technical services for the Duferco Group and also currently involved in This activity also allows the company by the different projects in the O&M operations. to be active in the purchase and renewable energy sector and by sale of electric energy and natural the important results in the green Total Photovoltaic Production reached 12.72 GWh in FY-2016, generating total revenues of gas through contracts and financial mobility sector in which Duferco . The average incentivized residual life of Photovoltaic plants is approximately 16 805 4.6 mEUR instruments for hedging purposes Energia is considered one of the years. mEUR and optimization of its energy most important service supplier in portfolio. Total turnover in Italy. Duferco Energia and its subsidiaries own 5 small run-of-the-river Hydro power production plants FY-2016 installed in Italy (Calabria, Tuscany and Emilia). Total Hydro Production reached 16,209 GWh Thanks to ventures in energy In the renewable energy sector, in FY-2016, generating total revenues of 3.7 mEUR. management, today Duferco Energia Duferco Energia has a stake can be considered an integrated operator offering a in Ferrania Ecologia, a company set up for the Renewable Power Origination saw an important growth during the past two years. The total complete service able to optimize all the opportunities implementation and management of the first Ligurian power production originated was 2.4 TWh in FY-2016. that the market can generate, thereby ensuring its biodigester in Cairo Montenotte (Savona, Italy). customers professional management of their energy The combination of Duferco Energia captive Renewable Power production and third party supply portfolio. Ferrania Ecologia’s biodigester - 50% owned by FG originated production represent a perfect hedging for its power Retail portfolio that has Riciclaggi and the remaining 50% by Liguria Ecologia reached in FY-2016 a total volume of electricity sales to industrial, medium-small business and As mentioned in the introduction, in the Retail (itself made up of Duferco Energia and Finemme) - is residential customers of 4.2 TWh. sector in Italy, the objective in the years to come is a plant capable of treating up to 45,000 ton/year of to consolidate the position of Duferco Energia as an OFMSW, turning it into electrical energy and compost.

32 33 Annual Report 2016

SHIPPING DIVISION

THE SHIPPING DIVISION, BEING KEY FOR A SUCCESSFUL STEEL PRODUCTION AND TRADING OPERATION, HAS BEEN LONG ESTABLISHED WITHIN DUFERCO.

Over the years the relevance of the Shipping team has grown significantly and the obvious evolution has been the upward integration by means of acquisition of own vessels.

The experience gained over the years has eventually led to the creation of the Nova Marine Group, a joint venture with the Romeo family.

Nowadays the Nova Marine Group owns and operates more than 100 ships and employs over 100 ashore employees to manage shipping operations around the world. Whilst the steel sector remains part of their core business, the company is also involved in solid fuels for the

Energy and Cement industry, cementitious products, fertilizers and to Commissioned on February 13, 2016, the plant occupies 12 a lesser extent in all the other bulk commodities. an area of 20,000 square metres and represents an Mtons important reference point for the whole territory as the objective is Nova Marine Carriers (NMC) specializes in maritime transportation The total carriage it is able to offer local government a real alternative and is capable to offer facilities, tools and services to fulfill all the needs to landfill disposal of organic waste, transforming a in 2016 of its customers. to consolidate “problem” into a real asset for the community. To

date, the plant connected to the national grid has During the last 30 years NMC has established a leading presence in the Mediterranean, and the position of reached full production and receives about 100 tons a strong one in the Arabian Gulf, South East Asia, Atlantic and Continent Areas by means of of OFMSW per day, allowing for energy production of Operational and Commercial Management, S&P activities and Joint Ventures enabling a total Duferco Energia approximately 24,000 kWh/day. carriage in 2016 of about 12,000,000 tons with about 1,200 voyages performed. as an efficient Finally, in line with the strategy in the green economy sector, Duferco Energia acquired Duferco Biomasse, and innovative a leading company in logistics, processing and supply of forest wood biomass to feed power plants in Italy service provider and Europe. to consumers and The company, based in Cavallermaggiore (Piemonte, Italy), covers the entire supply chain, from procurement producers in the of woody biomass, to forest management, all the way to the commercialization for energy production from sector of energy renewable sources, moving about 400,000 ton/year in Europe.

34 35 Annual Report 2016

Among the various JVs, the new joint venture with of all chartering and operation activities will be Algoma, concluded in 2015 (Nova Algoma Cement channeled from Nova Marine’s HQ in Lugano. This will Carriers or NACC) has allowed the company to include the effective control of both an additional 48 develop a specialized global fleet of cement carriers. vessels as well as the Groups’ contracts. THE FUTURE STRATEGY IN THE SHIPPING DIVISION IS TO CAPITALIZE ON THE NACC today is the third largest owner of pneumatic Thanks to this operation, Nova Marine becomes one EXPERIENCE IN THE CHARTERING SERVICES AND OPERATIONS TO ADD VALUE vessels in the world. This segment of the fleet is fully of the first five operators in the European Market. TO DUFERCO’S INVESTMENT PORTFOLIO. IN DOING SO, NOVA MARINE GROUP employed on long-term infrastructural projects. CONTINUES TO PROVIDE OUTSTANDING CUSTOMER SERVICE, ENFORCING RIGOROUS OPERATIONAL STANDARDS AND MAINTAINING A STEADFAST The latest development is the consolidation of the COMMITMENT TO SAFETY AND ENVIRONMENTAL PROTECTION. commercial activities of Carisbrooke Shipping under the Nova Marine Group JV whereby the coordination

ships NOVA MARINE GROUP 100

over ashore 100 employees

36 37 Annual Report 2016

STEEL PRODUCTION & DISTRIBUTION DIVISION

THE STEEL PRODUCTION & DISTRIBUTION IS THE INHERITANCE OF THE FORMER CORE BUSINESS OF DUFERCO GROUP.

Within the Steel Production & Distribution Division, the strategy is to focus on Long Products by reinforcing Duferdofin-Nucor competitive position on the market by product diversification into higher value added segments and by developing downward vertically integrated operations to compete effectively in Central and Southern European and Mediterranean markets.

For this reason also the structure of the Group Steel Distribution activities is currently being rationalized by gradually reducing the weight of flat products units and by integrating the long products units in the rest of the structure.

The product diversification effort started in recent 40% years with Duferdofin-Nucor JV managing to already Share of productions reach a 40% share of production volumes of Special volumes in Special Products (round and square billets for forged and drawn finished products, track shoes and track shoes Products profiles, etc.) compared to a 60% of Commodity Products. The target is to reach a 50-50 level by the next couple of years in a way to position the JV into a higher value-added segment.

At the same time, the downstream integration of Duferdofin-Nucor withFerriere Bellicini JV, a producer of merchant bars supplied by Duferdofin-Nucor recently acquired by Duferco, which is complementary for product selection and markets with Duferco Danish Steel, and, the further downstream integration with the Group distribution units in Italy (Acofer) and in France (Morel), will contribute to create a strong vertically integrated, flexible operation able to play a primary role in an extremely competitive market.

38 39 Annual Report 2016

INVESTMENT DIVISION: DIVERSIFIED ACTIVITIES

DUFERCO IS COSTANTLY LOOKING AT NEW INITIATIVES ACROSS DIFFERENT TECHNOLOGIES AND ASSESSING THEIR RISK/REMUNERATION PROFILE, IN ORDER TO UNDERSTAND IF THERE IS AN APPROPRIATE FIT WITH THE CURRENT PORTFOLIO AND STRATEGY.

DUFERCO RECYCLING & MEDIA STEEL Municipality Solid Waste) in biogas (mainly methane). Duferco Recycling and Media Steel (JV Partnership Duferco Engineering also provides O&M services with Feralpi Group) are two companies operating aimed at conducting and maintaining the photovoltaic respectively in Serbia and Italy in the scrap sector. and hydro power plants owned by Duferco Energia Scrap commercialisation and distribution is a perfect and its subsidiaries. upstream vertical integration of Duferco Industry core In the Energy efficiency and Energy Audit sector, activities, described in the previous chapter. Duferco Engineering is involved with Duferco Energia in the implementation of several projects in residential DUFERCO ENGINEERING buildings, PMI and large energy consumers. Duferco Engineering is a group company providing engineering, procurement, construction, 2. In the Infrastructure sector, Duferco Engineering commissioning, project management and O&M has developed the Preliminary Design and SIA To complete the Long Products strategy, Trebos, a services to the Duferco Group as well as for third (Environmental Impact Study with D’Appolonia SpA) producer of drawn wire, will be vertically integrated parties. of the New Cruise Terminal at Bocca di Lido, Venice. with Caleotto, a producer of wire-rod supplied by In particular, Duferco Engineering was appointed In December 2016, the Ministry for the Environment’s Duferdofin-Nucor recently acquired within the JV the strategy by the Group to develop and manage the following EIA Commission has expressed a positive opinion on between Duferco and Feralpi. is to focus on projects: the project. Finally Acciai Rivestiti Valdarno (ARV) is the last 1. In the Renewable Energy sector, it was appointed 3. In the Industrial sector Duferco Engineering is company still held by Duferco Group operating in by Ferrania Ecologia to manage the construction involved in an R&D project which aims to attract the the steel flat products sector. Despite not being part Long Products of the first bio digester in the Liguria Region for use of steel in the new construction and to improve the of the overall Group industrial strategy, it still plays a the production of electricity produced by the earthquake resistance of old buildings. positive role within shareholders asset portfolio thanks by reinforcing transformation of OFMSW (Organic Fraction of to a consolidated position as a premium level service provider in a niche market. Duferdofin-Nucor Only by concentrating efforts in this way the Steel Production & Distribution Division will likely be able competitive to pass over the current contingent negative phase of steel markets in Italy and in the rest of the world, position on the by fully exploiting its marketing potential and all opportunities to develop economies of scale and market efficient operations.

40 41 Annual Report 2016

DUFERCO WALLONIE Duferco Wallonie, located in Belgium, focuses on three domains: Real Estate, Environment and Logistics.

With its subsidiary Deep Green, offering services in soil cleaning, it employees 30 people.

The real estate branch of Duferco Wallonie is active in the reconversion of brownfields. In total, Duferco owns about 320 hectares in Wallonia (Belgium).

The most advanced project is the reconversion of a former steel plant of 80 hectares located in Tubize. The remediation work is well underway with the main part of the land being now available for development. Economic activities are foreseen on 20 ha in partnership with the IBW (Intercommunale du Brabant wallon), an intermunicipal company specialized, inter alia, in developing economic parks. In June 2016, the Walloon Government selected Duferco’s project as one of the 10 “Quartier Nouveaux” of Wallonia. More than being a recognition of the quality and the modernity of the project, this selection is accompanied by a support of the authorities for the development of the site.

The first permit allowing to equip a 4.5 hectares piece of land in view of developing about 200 residential units was issued In February 2017. The first houses and apartments should therefore come into being in 2018.

All the activities associated with life in general (housing, economic activities, offices, trade, green areas etc.) will progressively develop on the old industrial area.

Duferco also owns an idled industrial site of 8.5 hectares in Flemalle, which is the heart of a Master Plan called “Flemalle-la-Neuve”, designed by the citiy’s municipality. The project aims to reconvert the exsiting industrial area into a new area for housing and economic activities. The municipality has now applied for an administrative authorization for allowing other activities than industrial.

The development of Saint-Ghislain’s site (old factory named “Escoyez”) further continued

42 43 Annual Report 2016

INVESTMENT DIVISION: STEEL TRADING

DUFERCO HOLDS A MINORITY STAKE IN DUFERCO INTERNATIONAL TRADING HOLDING S.A. (DITH), AN INTERNATIONAL STEEL AND STEEL-MAKING RAW MATERIALS COMMODITIES TRADING ORGANISATION, WITH ITS GLOBAL HEADQUARTERS IN LUXEMBOURG. IT WAS FIRST FOUNDED IN BRAZIL IN 1979. TODAY, DITH IS ONE OF THE WORLD’S LARGEST STEEL its progress in 2016. The Walloon Governement allows four departures from Brussels to Antwerp per AND RAW MATERIALS TRADING AND DISTRIBUTION COMPANIES, WITH TOTAL COMBINED has approved the urbanistic report allowing the week and three from La Louvière. Complementary SALES OF CIRCA 20 MILLION METRIC TONNES IN 2016. development of residential units on the site. services to the barge transport of maritime containers Soil cleaning is complete and the official certificates are now proposed, namely, container freight services, were issued by the authorities. storage, warehousing, custom services. Since inception in 1979, DITH has successfully grown its business by implementing a strategy Studies for applying with a building permit are now The volumes in steel transport activities are rather in based on strategic joint ventures and an integrated business model consisting of trading, underway. line with 2015 peaking up at 450,000 tons transhipped. distribution, industrial activities and a suite of value-added services aimed at optimising the Duferco Wallonie expects to maintain the volumes at supply chain. This has led to the present organisation being equipped to play a role from ‘end- Other projects are also in progress at different levels this level in 2017. to-end’ across the steel value chain. in Charleroi and La Louvière where housing, economic Garocentre Terminal, in La Louvière, offers also from activities and leisure are envisaged. this year onwards barge and handlings services for Operating from a main commercial trading centre in Lugano, Switzerland – and with a global exceptional transport. The first wind turbines have network of offices in 80 locations and commercial activities in over 120 countries around the In , Deep Green been handled at the terminal in 2016. the environmental business world – the organisation enjoys one of the largest networks in the sector, selling steel and the offers a complete brownfield management service, raw materials essential to steel production to over 43,000 customers annually. from the first audit and business case study to the VANCHEM VANADIUM PRODUCTS implementation of the project. It has significantly Finally, Duferco holds the investment in Vanchem MANAGEMENT REPORT extended its experience in soil cleaning by way of , a facility in South Africa, that Vanadium Products This past year has been a stark reminder that volatility is ‘alive and well’ in the steel market and physicochemical and biological treatment. It also in November 2015 entered into voluntary business indeed the broader commodity complex as a whole. The results of which were demonstrated in continues to develop and commercialise a patented rescue in terms of Section 129 of the South African the group’s marked performance difference between a challenging first half of the fiscal period soil remediation technology under the name Companies Act. and a largely profitable and buoyant second half. Thermopile©, either by its own or through a licence As of January 2016, the operating loss of Vanchem agreement. has been drastically reduced to the minimum level FY-2016 H1 – Key Drivers: necessary to preserve the assets and maintain safe In the first half of the fiscal year the external environment was particularly difficult and complex Duferco Wallonie is developing its conditions. logistics activities variables drove market prices with seemingly no obvious empirical connection to economic as intermodal services provider on the axis Antwerp- Considering the present conditions of the vanadium fundamentals. Brussels-Charleroi. The company operates two inland international market, that significately improved rail/barge terminals in Brussels and in La Louvière. with respect to the low levels of 2015, the Group’s • Ultra-low steel prices – Steel prices fell for twenty months in succession before HRC touched These two terminals are connected to the ports of management is presently evaluating the most viable lows of USD 250 PMT FOBS China in December 2015. This was in line with nominal prices last Antwerp and Rotterdam by Duferco’s container barge solutions to preserve the carrying amount of this seen in 2002 and was clearly unsustainable. shuttle. investment. • Steelmaker losses – the collapse in prices resulted in many steelmakers reporting losses as Duferco has already become the main intermodal market prices fell well below operating costs for a substantial cross section of steel producers operator on this axis. About 25,000 TEU have been around the globe. Western steelmakers including ArcelorMittal had to raise capital as balance transported by inland waterways in 2016 through this sheets came under pressure. Chinese steelmakers were particularly badly hit with the industry container shuttle, which represents a growth in volume as a whole reporting losses of circa. USD 1 billion per month in late 2015. of 15% compared to 2015. This volume represents the • Chinese stimulus – the Chinese government unexpectedly provided a credit stimulus to the best performance ever at the two terminals. The service

44 45 Annual Report 2016

local economy in early 2016. This allowed steelmakers Selected DITH Performance Metrics access to credit and boosted the housing market and Consolidated Financial Results: consequently steel demand. The government also Net operating profit after tax (NPAT) of circa. USD 38 sought to offset a slowdown in private sector capital million. This represents an improvement of circa. 14% investment by embarking on a major infrastructure YoY. programme, lifting capital investment by up to 20% year-on-year. Volumes: The combination of historically low prices and Consolidated volumes taking into account all producer’s financial losses led to cutbacks in activities (trading, distribution and production) were production in late 2015 and the first half of 2016. 20.513 million metric tonnes, which was in line with This in turn contributed to the fact that Hesteel and expectations and evidences a nominal 2% increase other Chinese mills reduced their export availabilities, YoY. contributing to low steel inventory levels throughout the steel supply chain. Overheads: Consolidated overhead (excluding discretionary All in all, prices improved but our ability to capture bonuses) was some USD 139.7 million versus USD 144.4 material financial benefit was limited through lack of million in FY-2015, showing an improvement of 3% YoY. access to volume and this is reflected in our FY-2016 H1 fiscal results. Summary In closing, DITH is in good overall shape and very well FY-2016 H2 – Key Drivers: positioned to make the most of the many opportunities A combination of external factors coupled with better that the quickly evolving market environment is operating performance saw a substantial improvement expected to present. in our results during the second half of our fiscal year.

• Steel Volumes Improved – DITH was able to re- establish adequate 3rd party steel supplies for its trading division; this was further complimented by a return of structural supply from Hesteel during the second half of the fiscal year. • Low Priced Inventories – the group entered into H2 with a well-positioned inventory portfolio allowing us to take advantage of price movements and somewhat improved demand fundamentals. • Rising protectionism – the USA announced high anti- dumping duties on multiple flat steel products that excluded several traditional trade flows and initiated investigations into plate products and rebar. Europe followed suit as it commenced investigations into HR coil and HR plate and announced anti-dumping duties on CR coil. The US and EU’s aggressive protectionist stance on trade was mirrored in many other countries around the world with the net result being that regional prices rose sharply as import volumes slowed. DITH was well positioned to take advantage of the regional dislocation in market conditions as attractive pricing arbitrage opportunities presented themselves for those trade flows not yet affected by the protectionist measures. This applied for both our trading business and indeed in particular for DSP. • Solid (albeit unspectacular) demand against a background of low inventories – global economic growth continued at 3-3.5% indicating positive fundamental steel demand. Apparent demand improved across the board during H2 and cer tain steel- consuming sectors such as automotive performed particularly well.

46 47 Annual Report 2016

Headquarter

LUXEMBOURG 6, Rue Guillaume Schneider 2522 Luxembourg

Corporate offices

SWITZERLAND via Bagutti, 9 6900 Lugano

ITALY via Armando Diaz, 248 25010 San Zeno Naviglio (Brescia)

BELGIUM Rue de Marchienne, 42 6001 Marcinelle (Charleoi)

48 49 Annual Report 2016

DUFERCO GROUP CORPORATE DUFERCO PARTICIPATIONS HOLDING SA, LUXEMBOURG RESPONSABILITIES

CHAIRMAN LUXEMBOURG SWITZERLAND - LUGANO Bruno Bolfo Diversified Activities BOARD OF DIRECTORS Maurizio Bergonzi Director Antonio Gozzi Bruno Beernaerts Legal Matters & Tax Benedict J. Sciortino Alessandra Simeta Paolo Foti Corporate & Accounting Manager Bruno Beernaerts Julien Guillaume Corporate Finance Gerges Deitz Stefano Bacigalupo Julien Guillaume Group Consolidation GROUP CEOs Maria Montagna

Antonio Gozzi Paolo Foti ITALY - BRESCIA BELGIUM - CHARLEROI

CEO Domenico Campanella

Human Resources CEO Alessandro Roggerini Olivier Waleffe

Corporate Matters & Legal Affairs Elena Ragnoli

50 51 Annual Report 2016

ENERGY TRADING DIVISION

CEO Benedict J. Sciortino

Directors Piersandro Lombardi Maurizio Cencioni

General Counsel Federico Piccaluga

Head of European Power Division Nicola Stricchiola

Head of European Gas & LNG Division Rocco Zotta

Head of US Power & Gas Trading Lucas Dupay

Head of US Oil Trading Division James Rowe

Head of Iron Ore Trading Division Thomas Baldwin

Head of Physical Oil Trading Costas Varvatoulis

52 53 Annual Report 2016

ENERGY RETAIL, RENEWABLE PRODUCTION & ORIGINATION DIVISION

CEO Massimo Croci

CFO Simone Rabaioli

Energy Management & Trading Director Agostino Calcagno

Sales Director Luca Masini

HR Director Alessandro Roggerini

Information Technology Luca Seravalli

Business Development Sergio Torre

Communication Matteo Parodi

54 55 Annual Report 2016

INDUSTRIAL & DUFERDOFIN NUCOR CEO DISTRIBUTION DIVISION Franco Monteferrario

COO Jay Henderson HEAD OF INDUSTRIAL & DISTRIBUTION DIVISION Domenico Campanella CFO Paolo Avanzi

Commercial Director DUFERCO TREBOS Daniela Bucciolini CEO Bram Hansen Finance Stefano Vezzini

DUFERCO DANISH STEEL HR CEO Roberto Zingirian Bram Hansen Quality System Massimo Rolandi ACCIAI RIVESTITI VALDARNO CEO Corporate Matters Franco Vanni Elena Ragnoli

Plant Director San Zeno Naviglio CALEOTTO Giordano Streghi CEO Lorenzo Angelini Plant Director Giammoro Giuliano Bo

FERRIERE BELLICINI Plant Director Pallanzeno CEO Massimo Lama Kikka Bellicini Plant Director San Giovanni Valdarno Sandro Cella

Purchases Simone Campanella

56 57 Annual Report 2016

Short Sea Activities Gianluca Coppola - Italian Coastal Trade & Med-Black Sea SHIPPING Jaime Troncoso - Spanish Coastal Trade & Atlantic

Deep Sea Activities DIVISION Francesco Durazzo - Med-Black Sea & Continent Giuseppe Massa - Middle & Far East Dean Seacombe - Atlantic

NOVA MARINE HOLDING SA, Luxembourg

Chairman Giovanni Romeo

NOVA MARINE CARRIERS SA, Switzerland

CEO Vincenzo Romeo

COO Salvatore Pugliese

Head of Chartering Francesco Durazzo

Group Consolidation Ettore d’Auria

Group Controller Marc Saulnier

Risk Manager Bas Van Steijnen

Legal Counsel Gabriella Reccia

HR Director Giovanni Mazzella

58 59 Annual Report 2016

BELGIUM BRAZIL

DUFERCO WALLONIE S.A. MATRIX COMERCIALIZADORA Rue de Marchienne, 42 DE ENERGIA LTDA 6001 Marcinelle - BELGIUM Avenida Juscelino Kubitschek, No. 1700 Phone: +32 71 60 54 18 04543-000 Sao Paulo – BRAZIL Fax: +32 71 60 56 80 Phone: +55 11 3027-2900 E-mail: [email protected] E-mail: [email protected] www.duferco.com www.matrixenergia.com Mr. Olivier Waleffe (CEO) Mr. Claudio Monteiro (CEO) Mr. Federico Marsano (CFO) DUFERCO TREBOS N.V. Klein Terbankstraat, 21 3150 Tildonk - BELGIUM BULGARIA Phone: +32 16 61 81 81 Fax: +32 16 60 62 41 NOVA LOG LTD E-mail: [email protected] Andrey Germanov str, 11 www.trebos.be 1336 Sofia – Bulgaria Mr. Domenico Campanella (President) Phone: +359 2 9845750 Mr. Bram Hansen (CEO) Mr. Toma Kolev (Area Manager) Mr. Kris Van Praet (Plant Director)

MOREL DISTRIBUTION BELGIQUE S.A. Rue Anna Boch, 34 CANADA 7100 La Louvière - BELGIUM NOVA MARINE CARRIERS S.A. Phone: +32 71 60 54 18 c/o Algoma - 63 Curch Street Fax: +32 71 60 56 80 Suite 600, St.Catharines ON L2R 3C4 E-mail: [email protected] Phone: +1 9056505648 Mr. Olivier Waleffe (CEO)

DEEP GREEN S.A. Rue de Marchienne, 42 COLOMBIA 6001 Marcinelle - BELGIUM Phone: +32 71 60 54 17 NOVA MARINE CARRIERS S.A. Fax: +32 71 60 56 80 Av. Calle 116 No 7-15 Piso 17 E-mail: [email protected] Torre Cusezar - Bogotà www.deep-green.com Phone: + 57 1657 5868 Mr. Olivier Waleffe (CEO)

60 61 Annual Report 2016

DUFERCO THIONVILLE S.A.S. TPP – TRAVI E PROFILATI CZECH REPUBLIC 132, avenue des Nations BP 10105 ITALY DI PALLANZENO S.R.L. 57970 Yutz - FRANCE Via Sempione, 7 DUFENERGY TRADING CEE S.R.O. Phone: +33 3 82 54 43 43 DUFERCO ITALIA HOLDING S.P.A. 28884 Pallanzeno (VB) - ITALY Na Příkopě 392/9 Fax: +33 3 82 53 99 69 Via Armando Diaz, 248 Phone: +39 032 450 11 11000 Praha 1 – CZECH REPUBLIC E-mail: [email protected] 25010 San Zeno Naviglio (BS) - ITALY Fax: +39 032 4 52 705 Phone: +420 736 418 070 Mr. Stéphan Caute (President) Phone: +39 030 21 691 E-mail: [email protected] E-mail: [email protected] Mr. Philippe Jegou (General Manager) Fax: +39 030 266 75 98 Mr. Antonio Gozzi (President) www.dufenergy.com SPECIAL STEEL DIVISION E-mail: [email protected] Mr. Franco Monteferrario (CEO) Mr. Tomas Bernat (Senior Gas Originator Central 5, avenue Berthelot www.dufercoitalia.com Mr. Paolo Avanzi (CFO) Eastern Europe) 42152 L’Horme - FRANCE Mr. Antonio Gozzi (President) Mr. Jay Henderson (COO) Phone: +33 4 77 22 96 32 Mr. Domenico Campanella (CEO) Mrs. Daniela Bucciolini (Commercial Director) Fax: +33 4 77 29 08 26 Mr. Franco Monteferrario (CFO) Mr. Massimo Lama (Plant director Pallanzeno) DENMARK E-mail: [email protected] Mr. Paolo Avanzi (Administration) Mr. Giordano Streghi (Plant Director San Zeno Naviglio) Mr. Stéphan Caute (President) Mr. Alessandro Roggerini (Human resources) DUFERCO DANISH STEEL A/S Mr. Thierry Semard (General Manager) Mr. Stefano Vezzini (Banking) CALEOTTO S.P.A. Havnevej 47 Mrs. Elena Ragnoli (Corporate affairs and legal matters) Via Armando Diaz, 248 3300 Frederiksvaerk - DENMARK MOREL DISTRIBUTION PROFILS S.A.S. Mr. Massimo Croci (Diversification Activities) 25010 San Zeno Naviglio (BS) - ITALY Phone: +45 47 76 76 00 400, route de Villié Morgon Mr. Sandro Balliano (Special Projects) Phone: +39 0341 27 86 11 Fax: +45 47 76 76 30 69220 St. Jean D`Ardières - FRANCE Mr. Agostino Conte (Institutional Relations) Fax: +39 0341 27 86 15 E-mail: [email protected] Phone: +33 4 74 66 07 10 Mrs. Margherita Gozzi (Real Estate) E-mail: [email protected] www.dufercodanishsteel.dk Fax: +33 4 74 69 66 38 Mr. Domenico Campanella (President) Mr. Bram Hansen (Managing Director) E-mail: [email protected] DUFERDOFIN NUCOR S.R.L. Mr. Lorenzo Angelini (CEO) Via Armando Diaz, 248 Ms. Tina Holstener Schmidt (Financial Director) [email protected] 25010 San Zeno Naviglio (BS) - ITALY Mr. Mauro Bucciolini (General Supervisor) Mr. Stéphan Caute (President) MEDIA STEEL S.R.L. Mr. Thierry Mathieu (General Manager) Phone: +39 030 21 691 via Acqualonga, 18 Fax: +39 030 266 75 98 54038 Montignoso (MS) - ITALY DUFERCO MOREL PRODUITS PLATS S.A.S. E-mail: [email protected] Phone: +39 0585 821 213 FRANCE 400, route de Villié Morgon www.duferdofin.it Fax: +39 0585 822 541 69220 St. Jean D`Ardières - FRANCE Mr. Antonio Gozzi (President) E-mail: [email protected] DUFERCO FRANCE S.N.C. Phone: +33 4 74 66 07 10 Mr. Franco Monteferrario (CEO) Mr. Domenico Campanella (President) 173/179, boulevard Félix Faure Fax: +33 4 74 66 63 32 Mr. Paolo Avanzi (CFO) Mr. Cesare Pasini (CEO) 93300 Aubervilliers - FRANCE E-mail: [email protected] Mr. Jay Henderson (COO) Mr. Marco Corbelli (Managing director) Phone: +33 1 53 56 92 00 [email protected] Mrs. Daniela Bucciolini (Commercial Director) Fax: +33 1 53 56 16 17 Mr. Stéphan Caute (President) Mr. Stefano Vezzini (Finance) ARV ACCIAI RIVESTITI VALDARNO S.P.A. E-mail: [email protected] Mr. Thierry Mathieu (General Manager) Mr. Massimo Rolandi (Quality System) Via Peruzzi, 58 Mr. Stéphan Caute (President) Mr. Roberto Zingirian (Human Resources) 52027 San Giovanni Valdarno (AR) - ITALY Phone: +39 055 91 24 824/825 SERVICE CENTRE DUFERCO MOREL QUINCAILLERIE S.A.S. Mrs. Elena Ragnoli (Corporate Matters and Legal 400, route de Villié Morgon Fax: +39 055 94 48 60 ZI du Chevreuil Affairs) 69220 St. Jean D`Ardières - FRANCE E-mail: [email protected] 60490 Ressons sur Matz - FRANCE Mr. Giuliano Bo (Plant Director Giammoro) Phone: +33 4 74 06 48 90 www.a-r-v.com Phone: + 33 3 44 92 92 00 Mr. Sandro Cella (Plant Director San Giovanni Valdarno) Fax: +33 4 74 06 48 91 Mr. Franco Vanni (CEO) Fax: + 33 3 44 92 92 08 Mr. Simone Campanella (Purchases) E-mail: [email protected] Mr. Francesco Vanni (Managing Director) E-mail: [email protected] Mr. Stéphan Caute (President) FERRIERE BELLICINI S.R.L. Mr. Thierry Mathieu (General Manager) DUFERCO MOREL S.A. Via Cavalier Andrea Bellicni 2/4 173/179, boulevard Félix Faure 25040 Berzo Inferiore (BS) - ITALY 93300 Aubervilliers - FRANCE Phone: +39 0364 30 10 24 Phone: +33 1 53 56 92 00 Fax: +39 0364 30 63 98 Fax: +33 1 53 56 16 17 E-mail: [email protected] E-mail: [email protected] Mrs. Kikka Bellicini (CEO) Mr. Stéphan Caute (President) Mr. Christian Personat (CFO)

62 63 Annual Report 2016

ACOFER PRODOTTI SIDERURGICI S.R.L. DUFERCO ENERGIA S.P.A. SIDER NAVI S.P.A. DUFERCO VANADIUM INVESTMENT HOLDING S.A. Via Armando Diaz, 248 Via Paolo Imperiale, 4 P.zza Alessi 2/7 6, Rue Guillaume Schneider 25010 San Zeno Naviglio (BS) - ITALY 16126 Genova (GE) - ITALY 16128 Genova (GE) - ITALY L-2522 - LUXEMBOURG Phone: +39 030 21 691 Phone: +39 010 275 60 01 Phone: +39 010 570 50 03 Phone: +352 26 68 74 91 Fax: +39 030 21 69 217 Fax: +39 010 275 60 100 E-mail: [email protected] Fax: +352 26 68 74 92 E-mail: [email protected] E-mail: [email protected] Mr. Massimo Croci (President) E-mail: [email protected] Mr. Franco Monteferrario (CEO) www.dufercoenergia.com Mr. Bruno Beernaerts (Director) Mrs Tania Romanelli (Sales) Mr. Massimo Croci (CEO) VIRTUAL S.R.L. Mr. Julien Guillaume (Director, Corporate and Accounting Mr. Claudio Serra (Operational) Mr. Luca Masini (Commercial Director) Corso Colombo, 12B Manager) WAREHOUSE Mr. Agostino Calcagno (Purchases and Logistic Director) 16043 Chiavari (GE) - ITALY Zona Industriale Mr. Simone Rabaioli (CFO) Phone: +39 0185 368 005 98040 Giammoro (ME) - ITALY Mr. Massimiliano Cocurullo (Sales Manager) E-mail: [email protected] REPUBLIC Phone: +39 090 9386282, +39 090 9386217 Mr. Luca Raso (Sales Manager) www.virtual.eu E-mail: [email protected] Mr. Sergio Torre (Business Development) Mr. Marco Lanata (CEO) OF SOUTH AFRICA WAREHOUSE Mr. Francesco Lepre (Sales Manager) VANCHEM VANADIUM PRODUCTS (PTY) LTD. Via Peruzzi, 58 Mr. Luca Seravalli (IT) PHYSICAL ADDRESS 52027 San Giovanni Valdarno (AR) - ITALY Mr. Matteo Parodi (Communication) LUXEMBOURG Van Eck Road, Ferrobank Phone: +39 055 912481 - +39 055 9124822 eMalahleni 1035 Fax: + 39 055 944 860 DUFERCO BIOMASSE S.R.L. DUFERCO PARTICIPATIONS Mpumalanga – REPUBLIC OF SOUTH AFRICA E-mail: [email protected] Via Roma, 119 HOLDING S.A. POSTAL ADDRESS 12030 Cavallermaggiore (CN) - ITALY 6, Rue Guillaume Schneider PO Box 567 Phone: +39 010 275 60 01 L-2522 - LUXEMBOURG UTILITY 360° S.P.A. Witbank 1035 Via Paolo Imperiale, 4 Fax: +39 010 275 60 100 Phone: +352 26 68 74 91 Mpumalanga – REPUBLIC OF SOUTH AFRICA 16126 Genova (GE) - ITALY E-mail: [email protected] Fax: +352 26 68 74 92 Phone: +27 13 696 6004 Phone: +39 010 275 60 01 www.dufercoenergia.it E-mail: [email protected] +27 13 696 6062/6174 Fax: +39 010 275 60 100 Mr. Simone Rabaioli (President) Mr. Bruno Beernaerts (Director) Fax: +27 13 696 61 28 E-mail: [email protected] Mr. Alberto Allasia (Managing Director) Mr. Julien Guillaume (Director, Corporate and E-mail: [email protected] www.dufercoenergia.it Mr. Paolo Pagge (Production Director) Accounting Manager) Dr. Martin van Wijngaarden (Non-Executive Director) Mr. Simone Rabaioli (President) Mr. Daniele Braida (Commercial Director) Mr. Rick Reato (CEO and Director) Mr. Luca Masini (Managing Director) NOVA MARINE HOLDING S.A. Mr. Jacques Nell (Financial Manager) Mr. Massimo Bresciani (Sales Director) LIGURIA ECOLOGIA S.R.L. 6, Rue Guillaume Schneider Ms. Mbavhi Ngobeni (Administrative and Legal) Via Paolo Imperiale, 4 L-2522 - LUXEMBOURG DUFERCO ENGINEERING S.P.A. 16126 Genova (GE) - ITALY Phone: +352 26 20 69 Via Paolo Imperiale, 4 Phone: +39 010 275 60 01 Fax: +352 26 20 69 20 16126 Genova (GE) - ITALY Fax: +39 010 275 60 100 E-mail: [email protected] SERBIA Phone: +39 010 89 30 843 Mr. Stefano Messina (President) Mr. Bruno Beernaerts (Director) Fax: +39 010 89 30 847 Mr. Claudio Busca (Managing Director) Mr. Julien Guillaume (Director, Corporate and DUFERCO S RECYCLING D.O.O. E-mail: [email protected] Accounting Manager) Kneza Mihaila, 174 www.eng.duferco.com THE ADVISER S.R.L. 34000 Kragujevac - SERBIA Mr. Ezio Palmisani (President and CEO) Via Paolo Imperiale, 4 DUFENERGY S.A. Phone: +381 34 356 977 Mr. Emilio Castelli (Renewable Energy and O&M) 16126 Genova (GE) - ITALY 6, Rue Guillaume Schneider E-mail: [email protected] Mr. Antonio Muzzini (Special Projects) Phone: +39 010 275 60 01 L-2522 - LUXEMBOURG Mr. Carlo Alberto Biggini (President) Mr. Paolo Peri (Biogas Projects) Fax: +39 010 275 60 100 Phone: +352 27 20 38 Mr. Andrea Costa (Hydro Power) E-mail: [email protected] Fax: +352 27 20 38 20 Mr. Francesco Marsano (Energy efficiency and R&D) www.dufercoenergia.com E-mail: [email protected] Mr. Gianluca Palmisani (Infrastructures) Mr. Massimo Croci (CEO) Mr. Bruno Beernaerts (Director) Mr. Marco Spanu (Procurement) Mr. Simone Rabaioli (Administration Manager) Mr. Julien Guillaume (Director, Corporate and Accounting Manager)

64 65 Annual Report 2016

GRAFTON COMMODITY TRADING LTD SPAIN THE NETHERLANDS 14 Gray’s Inn Road London, England, WC1X 8HN NOVA MARINE CARRIERS S.A. NOVA MARINE NL BV UNITED KINGDOM Paseo de la Castellana, 154 Scheepmakerij 230 Phone: +44 (0) 203 865 2091 1 izquierda 28046 Madrid 3331 MB Zwijndrecht - Rotterdam E-mail: [email protected] Phone: +41 91 822 73 77 Phone: +31 10 313 07 14 www.graftontrading.com Mr. Jaime Troncoso (Area Manager) Mr. Dean Seacombe (Area Manager) Thomas Baldwin (Head of Iron Ore Trading)

SWITZERLAND TURKEY USA DUFENERGY TRADING USA, LLC DUFENERGY TRADING S.A. DUF ENERJI TICARET ANONIM SIRKETI 521 Fifth Avenue, Suite 1801 Via Bagutti, 9 Barbaros Mah. Mor Sumbul Sk. New York, NY 10175 6900 Lugano - SWITZERLAND Varyap Meridian Business No. 1 Blok/D:191 Phone: +1 203 216 1053 Phone: +41 91 822 56 93 34746 Atasehir Istanbul – TURKEY E-mail: [email protected] Fax: +41 91 822 59 79 Phone: +90 216 456 69 39 www.dufenergy.com E-mail: [email protected] Fax: + 90 216 456 69 40 Mr. Lucas Dupay (Head of U.S. Power and Natural Gas www.dufenergy.com E-mail: mail:[email protected] Trading) Mr. Benedict Sciortino (President and CEO) www.dufenergy.com Mr. Piersandro Lombardi (Director) Mr. A. Barbaros Birinci (General Manager) DUFENERGY COMMODITY TRADING USA LLC Mr. Maurizio Cencioni (CFO) 3050 Post Oak Boulevard - Suite 695 Mr. Federico Piccaluga (General Counsel) Houston, TX 77056 Mr. Rocco Zotta (Head of Gas & LNG Division) U.A.E. Phone: +1 (803) 703 1223 Mr. Nicola Stricchiola (Head of Power Division) [email protected] NOVA MARINE CARRIERS MIDDLE EAST DMCC James Rowe (Principal) NOVA MARINE CARRIERS S.A. Office 5D, Silver Tower Via Bagutti, 5 Cluster I, Jumeirah Lakes Towers, Dubai DUFENERGY PETRO USA INC. 6900 Lugano - SWITZERLAND Phone: +971 50 611 8974 3050 Post Oak Boulevard - Suite 695 Phone: +41 91 822 73 00 Mr. Giuseppe Massa (Area Manager) Houston, TX 77056 Fax: +41 91 822 55 52 Phone: +1 (803) 703 1223 E-mail: [email protected] [email protected] www.novamarinecarriers.com UNITED KINGDOM James Rowe (Principal) Mr. Vincenzo Romeo (CEO) Mr. Salvatore Pugliese (COO) NEO OPERATIONS LIMITED 20 Elvaston Place NOVA SHIP TECH S.A. London SW7 5QF Via Bagutti 5 UNITED KINGDOM 6900 Lugano – Switzerland Phone: + 44 20 7589 0011 Phone: +41 91 822 73 47 E-mail: [email protected] Fax: +41 91 822 55 52 Mr. Ben Sciortino (Director) Mobile: +41 79 911 18 32 Mr. Costas Varvatsoulis (Director) Email: [email protected] www.novamarinecarriers.com NOVA MARINE CARRIERS UK LTD Mr. Francesco Costagliola (Technical Director) 5th floor, North Side 7-10 Chandos Street, Cavendish Square London W1G 9DQ

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