DANIELI TEAM A CENTURY OF PARTNERSHIP DANIELI Preview EXPERIENCE YEAR 2018

ITALY FRANCE THE UK SPAIN TURKEY USA JAPAN PREVIEW VERSION CONTENTS

2 LETTER TO THE STAKEHOLDERS

6 SOME THOUGHTS ABOUT MARKET STRATEGY Danieli Year 2018 8 DANIELI AT A GLANCE: Results from GROUP STRUCTURE Innovation, Reliability 10 DANIELI AT A GLANCE: and Partnership GROUP PERFORMANCE 16 DANIELI TEAM: THE RELIABLE INNOVATIVE PARTNER IN THE METALS INDUSTRY

23 MAIN EVENTS OF THE YEAR

Danieli & C. Officine Meccaniche S.p.A. The data in this publication Headquarters in Buttrio (Udine) refer to the period Share Capital: euro 81,304,566 fully-paid 01.07.2017 / 30.06.2018 Dear Shareholders, Customers and Colleagues

Letter to the Stakeholders Results for the fiscal year 2017 / 2018:

(millions of euro) 2017 / 18 2018 / 19

Group Results Group Forecast

Revenue 2,706 2,750 / 2,850

EBITDA 229 220 / 230

Order book 2,954 2,900 / 3,100

The fiscal year 2017/18 ended according to forecast, with sales In spite of this, the plant-making division is expected to record and EBITDA improved compared to 2016/17 by respectively 9% low margins also for the fiscal year 2018/19, since its invoiced and 13.%. value will include the low-priced sales of plants of 2017. However, an improvement is expected starting from 2019/20, certainly as a result of a reduction in the under-absorption costs, Market and Scenario Forecast and we also will try hard to improve sales margins, which today are not yet adequate. The two main business segments, plant making and steel This will depend also on the success of the currently ongoing making, have shown different trends by comparison to the restructuring policies aimed at reducing overcapacity in the previous fiscal year. organizations of the major plant makers worldwide, as well as on In fact, as anticipated in the previous Letter to the Shareholders these firms’ determination to pursue positive balance sheets. for fiscal year 2016/17, the plant-making segment still feels the In contrast, the steel-making segment recorded a positive result effects of the serious crisis that steel makers experienced during in the second half of the year for the reasons noted above and is 2015, 2016 and 2017. expected to maintain the same trend during the next fiscal year. This has reduced considerably not only steel makers’ new The big question is how long this positive situation for the steel investments, but also the purchase prices of new plants. market will last, as it depends on among other things the USA Consequently, the suppliers of steel-making equipment and policy, but also on the trends of the world economy. plants also have suffered from this crisis, because of the under- At the moment we are gearing up for good market conditions absorption of fixed costs and narrow sales margins. estimated for the next 12 to 18 months’ period and to organize At the end of 2017, thanks to the customs tariff policies applied ourselves for the next market downturn. in the USA and then progressively also in Europe, as well as to the limitations imposed on the imported steel quantities, in the USA and then gradually also in Europe and in other countries, Technological Achievements in addition to steel consumption increase steel makers saw an increase in demand and in revenue margins. As regards our technological achievements, which are essential Consequently, the demand for new steel-making plants also has for us to remain a step ahead of our competitors, the following increased, starting from spring 2018. list details the most significant ones:

2 DANIELI YEAR 2018 3 Letter to the Stakeholders

Plant Making alone accounts for 50% of the global one, and therefore from a domestic customer base. — We started up two high-tech plants for VAS and VASD Obviously, the Chinese competitiveness should be considered (voestalpine Stahl, Austria). This concerns a continuous casting as one of the benchmarks that need to be monitored carefully. machine producing high-quality steel slabs and a new wirerod Certainly, such factors as “innovaction” and quality will mill whose main features in terms of quality and flexibility are contribute to counter this new competition, which in turn is unmatched worldwide. The commissioning of these plants was improving in quality and the number of patents it lists. achieved to the customer’s full satisfaction. Therefore, our next goals include the strengthening of the — The second MI.DA. endless plant was started up successfully activity of our China-based workshops and engineering in the USA. Steel makers are showing a growing interest in this departments in order to remain cost-competitive with the compact plant which, besides being competitive in terms of Chinese plant-makers, while always maintaining high levels of CapEx and OpEx, can be considered environmentally friendly product quality and technology to be front runners. because of the substantial reduction in CO2 emissions, energy In parallel we also will improve the competitiveness and and water consumption and noise it allows the operators to productivity of our production plants in Thailand, India, Russia achieve. and Europe, to serve the local markets efficiently. — Danieli Automation has obtained important successes with Moreover, competition from Germany and Japan has been the new generation of high power drives, induction heaters, and very strong lately – during the market downturn - due to an steps towards Industry 4.0 and robotization. overcapacity in relation to demand. — Finally, the outlook for FATA EPC is very good in relation Therefore, restructuring plans are ongoing and we hope that this, The working environment, services to staff (including the Conclusions to orders of environmentally friendly power plants, not only combined with an increase in demand, will help sales prices to provision of nursery and preschool facilities), and a sports centre gas-powered processes but also based on concentrated solar improve. equipped with a summer campus for the employees’ children, are To conclude, in short: power technologies. The future prospects for the latter cutting- under continuous improvement. edge technologies are very promising, if results come up to Also, the “environmentally friendly and safe” policy is being — Results have been in line with forecasts. expectations. Steel Making constantly enhanced and implemented in our workshops, and — Even if the current fiscal year 2018/19 is expected to be then integrated into the design solutions of our plant-making better than the past 2017/18, the invoiced value for the plant- In anticipation of a possible market downturn that is likely to division. making segment will show the effects of the sales of plants at Steel Making occur in 12 or 18 months’ time, we are working to improve low prices during the crisis period, which are not yet sufficiently productivity, OpEx and service to the customer. One of the most successful examples is the MI.DA. project, improving due to the strong competition among plant makers for With the steel market on the upswing, the outlook for the steel- We believe that investing in metallurgical research and further which is becoming a global benchmark for reducing the overcapacity and market leadership. making segment is very good. developing our more downstream activities and Industry environmental impact of a steel-making plant. — On the plus side, however, it is certain that the backlog of the From a technological point of view, ABS (Acciaierie Bertoli 4.0 technologies will enable us to improve considerably the Our company is well aware of the fact that, in order to secure plant-making division will progressively improve, and this should Safau) will proceed with its Industry 4.0 and robotization competitive level of our company. its future, it must produce profit and that in order to produce positively impact the financial statements of the fiscal year program. profit the average intellectual level and motivation of the team, 2019/20 compared to 2018/19, which in any case will be better It will continue to pursue competitiveness and high added-value together with an adequate consideration of merit, must be than the previous one. products, as well as to progressively mitigate its environmental Teamwork and Leadership constantly improved. — For the steel-making division, the fiscal year 2018/19 is impact while improving its safety strategy. And this applies as well to the protection of the environment expected to bring excellent results. and safety in the workplace, in addition to a stimulus to innovate — The current plan for investments in “innovaction”, technology Obviously, the above-mentioned goals in general can be with a view to the customers’ satisfaction. and “green steel” solutions will be pursued further. Moreover, Competitiveness: achieved more easily if supported by efficient teamwork and Also worth mentioning on this point is the promotion of social a particular focus will be given to staff training and soft skills, positive leadership. initiatives outside the company, referring here to cultural with a view to the team’s continuous improvement in support of In order to enhance teamwork within the company, together with activities and to the maintenance of historical heritage. competitiveness and customer satisfaction. Plant Making a continuous updating in line with technological developments, In order to maintain the positive trend detailed above, including — The shareholders have agreed to leave as usual a large part which is essential to be able to innovate and compete, we also profits, continuous investments are necessary and in this regard of the profits (….%) in the company to finance innovation and Most probably in the near future (in the next 5 to 8 years) will further expand the activities of Danieli Academy. we wish to thank our shareholders and stakeholders for the trust investments and to remain financially strong. our additional competitors in several fields will be Chinese In addition to its technological efforts, Academy will focus more they place in our company: through the last 15 years they have companies that can benefit from approximately 40% lower on soft-skills training in relation to the different specializations allowed us to invest on average 85% of our profits back into the Gianpietro Benedetti costs and from the fact that they operate in a local market that and duties. company. CHAIRMAN OF THE BOARD OF DIRECTORS

4 DANIELI YEAR 2018 5 Some thoughts about market strategy

Our industry is emerging from one of the longest price slumps in of a lean, agile and responsive organization, we have to put recent memory. ourselves in a condition in which there is no risk of losing these This has had major repercussions for our company - leading to characteristics due to an under- or oversizing that is unrelated to a significant optimization of resources, which from a peak of real market conditions. As everyone knows, this market is highly 11,000 employees has dropped to the current number of 9,358 changeable and has recently shown that it can undergo sudden, - and in the world. Production and productivity are at recession major changes in a short time. levels, and a market recovery is needed to respond to market demands. But how have we managed to come out of this stronger than Innovation before? Everything we do has to be founded on a solid basis of skills and We were quick to make the decision to upgrade our organization knowledge, of which innovation is the backbone, innovation that and then implement our plan in order to remain competitive; is increasingly being done for and with our customers/partners. we diversified at the right time and in the right way by investing Innovation at 360 degrees on products, processes, mechanics in both the steelmaking segment and in plantmaking with the and automation, which is becoming more and more closely acquisition of Fata SpA; we never stopped investing in resources connected with digitization. and technology; and above all, in spite of the strong market Investing in resources for innovation has never stopped, but in pressure and trends (not least the under absorption that cut our the last few years it actually has been given a boost thanks to profit margin) we never renounced our international nature, the partnerships we set up with various customers, with the new as evidenced by the numerous and engineering research center and the new Digi&Met division, a true breeding facilities we have all over the world. ground for Industry 4.0 applications for steelmaking. Owning large factories certainly caused us to suffer in the last few years of the market slump, as they require a continuous work flow to support themselves and be sustainable. But now they are Job Order Filling again a formidable asset to our organization, enabling us to be more competitive and to perform better than our competitors We are guided by the knowledge that the best way to satisfy our short, it encourages the creation of long-term relationships, or allows our workshops to be effective and efficient while reaching who shop around. customers is to give them what we promised within the specified even better, Endless Partnerships. their maximum potential. timeframe and with the quality they expect from us. One result Having our own factories is good, being present where the Now we have to keep evolving to remain “a step ahead”. is a renewal of the job order filling process. More satisfaction steel is produced and used is even better, but it’s not enough! The choices that were made several years ago are no longer means more profit and therefore a more promising future. We What is required is an unwavering commitment to continuously People applicable or current, and the ones we make at the present time feel that shifting the company’s focus towards the customer is improving our supply chain and internal productivity toward will not be applicable in the future. necessary and cannot be delayed; this is the reason that currently customer satisfaction, in terms of quality and costs. We mentioned the importance of being close to markets and With these thoughts in mind, and the optimistic outlook of we have several specific projects under way within the Group to being flexible in monitoring them, giving attention to the the current market cycle, let’s take a look at the main points of achieve this. customer, innovation, workshops and supply chain, all working the medium-to-long-term strategy we are working on, where Activity Planning together to achieve quality in terms of time and costs and the focus is on a single unchanging goal, the satisfaction of our continuously seeking excellence in all technological aspects. customers. We do not shop around for noble equipment Our business involves complex projects with long lead times, To fulfill this requirement we can count on the excellence of our and each project differs from the previous one. It is obvious that human capital. One of our strengths and strategic qualities that sets us apart Planning is a significant and substantial part of all our processes. We must never stop striving for merit, encouraging it in our Flexibility from our competitors is that we own our factories. Starting from the first sales negotiations, through to project kick- colleagues, rewarding it and praising it, thereby fostering a spirit More than 50% of steel consumption is in Asia, where we have a off and all the activities to prepare for the startup of a new plant, of initiative in all 9,000 of our employees. The planning of activities and the method used to fill job orders strong presence with workshops in China, Thailand, and India. planning is fundamental to reach the desired standards and to Passion and accountability in the people who work at Danieli are must not be confused with inflexibility and bureaucracy. In fact, Having full control over our manufacturing means that we assure the customer that we can deliver what was promised in intangible assets, great qualities to be nurtured so that we can we are working towards improving the way we respond to the can guarantee high-quality standards, and the fact that we are the contract. continue to be recognized as a partner of reference. short-term performance of a single project, as well as our ability physically close to these markets means shorter lead times and We are working on organization, tools and procedures to quicken to anticipate fluctuating market trends in the long term. This more efficient after-sales service. The result of this is increased the pace in this direction. Giacomo Mareschi Danieli, CEO is currently our mantra; while recognizing the positive aspects focus on details that demonstrates value to our customers. In And let’s not forget that careful planning is the variable that Alessandro Trivillin, CEO

6 DANIELI YEAR 2018 7 Board of Directors Danieli at a Glance Group Structure GIANPIETRO BENEDETTI Chairman CAMILLA BENEDETTI Deputy Chairman GIACOMO MARESCHI DANIELI CEO

Finance Companies ALESSANDRO TRIVILLIN DANIELI & C. OFFICINE MECCANICHE SPA CEO ITALY CARLA DE COLLE ALESSANDRO BRUSSI AUGUSTO CLERICI BAGOZZI DANIELI INDUSTRIELLE INTERNATIONAL SA BETEILIGUNG SA CHIARA MIO LUXEMBOURG LUXEMBOURG Directors

DANIELI FINANCE SOLUTIONS SA LUXEMBOURG Board of Statutory Auditors

RENATO VENTURINI President GAETANO TERRIN PLANTMAKING STEELMAKING VINCENZA BELLETTINI Auditors GIUSEPPE ALESSIO VERNÌ GIULIANO RAVASIO EUROPE SOUTH EAST ASIA AMERICAS MIDDLE EAST EUROPE LAURA PIUSSI Deputy Auditors

Group Executive Board DANIELI DANIELI CENTRO DANIELI UK ROTELEC SA (FRA) DANIELI METALL. DANIELI DANIELI MIDDLE EAST ABS SPA AUTOMATION SPA COMBUSTION SPA HOLDING LTD EQUIPMENT & SERVICE DO BRASIL SA ENG. & SERV. CO (ITA) (ITA) (ITA) (GBR) CO LTD (CHN) (BRL) (EGY) GIANPIETRO BENEDETTI Chairman CARLA DE COLLE TELEROBOT LABS SRL DANIELI CENTRO INNOVAL SUND BIRSTA AB DANIELI CO LTD DANIELI INDUSTRIAL ABS CENTRE (ITA) CRANES SPA TECHNOLOGY LTD (SWE) (THA) CORPORATION BETEILIGUNG CO METALLURGIQUE SARL Chairman Steelmaking (ITA) (GBR) (USA) (SAU) (FRA) ALESSANDRO TRIVILLIN GIACOMO MARESCHI DANIELI

DANIELI SYSTEC DOO DANIELI GERMANY FATA SPA (ITA) TERMO MAKINA SAN. DANIELI AUTOMATION DANIELI ABS ALESSANDRO BRUSSI (HRV) GMBH (DEU) V.T. A.S. (TUR) CO LTD AUTOMATION USA LLC DEUTSCHLAND GMBH (THA) (USA) (DEU) WERNER AUER ROLANDO PAOLONE

DANIELI CONSTR. DANIELI PROCOME FATA GULF TURISMO 85 SRL* DANIELI INDIA LTD ABS IBERICA SL LUCA FERRARESI INTERNATIONAL SPA IBERICA SA CO WLL (QAT) (ITA) (IND) (ESP) (ITA) (ESP) ANTONELLO MORDEGLIA

DANIELI ENGINEERING DANIELI VOLGA LLC MORE SRL (ITA) SCUOLE E ASILI DANIELI ENGINEERING ABS & SERVICE GMBH (RUS) CECILIA DANIELI SRL* JAPAN LTD SCANDINAVIA AB (AUT) (ITA) (JPN) (SWE)

DANIELI CORUS DANIELI MORGÅRDSHAMMAR AB INDUSTRIELLE The development plan which provided ABS SISAK DOO TECHNICAL SERVICES HENSCHEL SAS (SWE) BETEILIGUNG CO LTD (HRV) BV (NLD) (FRA) (VNM) for the acquisition of leading companies in the supply of equipment for the steel industry has been completed. Since 2000, our product ESW lines have been expanded to cover RÖHRENWERKE GMBH *Services (DEU) and other Activities blast furnaces, DR plants, seamless and welded pipe mills and now cover the whole spectrum of ironmaking and steelmaking plants, from iron ore to QUALISTEEL SPA any steel finished products as well as (ITA) Plantmaking and Steelmaking Companies those for non-ferrous metals.

8 DANIELI YEAR 2018 9 Graci_FINANCE_2018

SalesDanieli Revenu Group:e 3,500 Danieli Year 2017/ 18 Danieli Group Sales Revenue 3,000

2,500

2,000

Summary of results for the year 2017/2018 1,500 (thousands of euro) 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 The 2017/18 financial year ended as predicted, with improved turnover and EBITDA compared to 2016/17. 1,000 Group revenues rose by 9% over last year, with turnover Order backlog 3,682,000 3,387,000 3,225,000 3,206,000 3,079,000 3,155,000 2,814,000 2,532,000 2,954,000 remaining practically constant in the Plant Making segment, and increased turnover in the Steel Making 500 15 0

segment, which is also showing greater production ,000 ,495 2,508 1 1, 2,00 2 3,11 5 2,58 3 3,08 1 2,94 4 2,491 2,706 730 1 2,45 7 3,21 0 2,78 2 volumes than 2016/17, thanks to the re-start of ABS 3,11 8 2,76 6 Sales revenue 2,583,317 3,118,485 3,081,108 2,782,294 2,944,102 2,765,940 2,508,352 2,490,912 2,705,600 0 Sisak and in spite of the restructuring (now complete)

of the EWS pipe mill, which in the next financial year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 will be able to operate with greater efficiency and Net Income Net income 201,040 192,461 174,578 163,165 153,577 161,738 87,999 50,540 58,400 profitability.

The consolidated gross operating margin (which Total net worth 1,028,314 1,185,896 1,292,113 1,427,266 1,548,396 1,713,744 1,777,158 1,817,828 1,853,000 reflects the margins related to the order book for the year) remained steady as predicted but was penalized Danieli Group: 200 by extraordinary non-recurring expenses incurred in Net Income companies that have recently joined the group and not Research 150,000 139,000 146,000 140,000 150,000 200,000 185,000 175,000 185,000 yet fully integrated: in the Steel Making segment, the and development 150 ESW pipe mill in Germany, and the Italian company FATA in the Plant Making segment. However, these Employees 8,663 9,392 10,037 10,944 11,424 10,954 9,419 8,959 9,358 expenses were incurred in the first half of the year, while in the second half operations were more efficient 100 without being penalized further. The two main businesses, Plant Making and Steel Consolidated net 2.60 2.50 2.51 2.20 2.06 2.17 1.19 0.68 0.78 Making, experienced different trends compared with income per share (euro) 50 last year. The Plant Making segment continues to be affected by ­­­­ No. of ordinary shares 40,879 40,879 40,879 40,879 40,879 40,879 40,879 40,879 40,879 the serious crisis that steelmakers experienced in 2015, 146 201 192 153 47 88 10 12 35 73 135 192 162 162 51 58 2016 and 2017, which significantly reduced not only 0 10 investments but also the purchase prices of new plants.

No. of non-convertible 40,425 40,425 40,425 40,425 40,425 40,425 40,425 40,425 40,425 At the end of 2017, thanks in part to the antidumping 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 saving shares measures, with duties applied first in the US and then gradually in Europe, together with the limits on the amounts of imported steel, US steel producers and Dividends distribution 26,202 26,193 25,002 23,075 23,075 8,195 8,195 8,195 8,195 then little by little steel producers in Europe and other Net Worth countries saw demand and margins increase. Danieli Group: 2,000 Consequently, demand for new plants also increased, Net Worth Dividend per ordinary 0.33 0.33 0.33 0.30 0.30 0.10 0.10 0.10 0.10 starting in the spring of 2018, while sale prices are still 1,750 share (euro) low due to the fierce competition from Germany and Japan. 1,500 Dividend 0.3507 0.3507 0.3507 0.3207 0.3207 0.1207 0.1207 0.1207 0.1207 On the other hand, the Steel Making segment is per non-convertible showing excellent results, the steel market is stable, and saving share (euro)­­ consequently prospects are good. 1,250 As regards technology, at ABS (Acciaierie Bertoli Safau) we will continue with the 4.0 program and robotization. 1,000 We will continue to pursue competitiveness and product Thanks to prudent policies and the highly with high added value, and to gradually improve 750 entrepreneurial spirit of our shareholders, which have always allowed us to allocate environmental impact and safety strategy. a large part of our profits to research and Nonetheless, Plant Making revenues are in line with 500 development, Danieli has been able to the forecasts made at the beginning of the year, and achieve positive results even in periods refer to regularly progressing construction schedules 250 of economic downturn. contractually agreed with customers, with an EBITDA 1,777 428 439 554 709 1,028 1,292 1,548 1,818 1,853 50 8 432 598 830 of 107.0 million euro, to be normalized to 113.3 million 1,186 1,427 1,714 euro, having discounted in the period “non-recurring” 0 charges amounting to about 6.3 million euro linked to non-repeatable and restructuring costs at Fata, on 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 problematic projects or whose start-up was delayed, in

(millions of euro)

10 DANIELI YEAR 2018 11 markets that are not yet fully normalized. each project (CapEx), while also optimizing operating Consolidated Annual Report for the year ended June 30, 2018 Conversely, Steel Making segment revenues are higher expenses (OpEx), combining several work stages in the (millions of euro) June 30, 2018 June 30, 2017 Change than what was budgeted at the beginning of the year production process, thereby increasing the number of and show a gross operating profitability of 121.8 million potential investors thanks to more economically feasible Revenues 2,705.6 2,490.9 9% euro, to be normalized to 126.6 million euro, since investments, in countries with mature economies as Normalized gross operating margin 239.9 225.0 7% non-recurring charges amounting to approximately 4.8 well as in developing countries. (Adjusted EBITDA) million euro were discounted due to the restructuring In order to remain competitive in this “New Normal” that was carried out at the recently acquired pipe mill in market, Danieli has invested in technologies that, while Gross operating margin (EBITDA) 228.8 202.5 13% Germany. maintaining customer centricity, make it possible to EBIT 103.9 70.3 48% Products sold in the period by the Steel Making increase plant productivity and, consequently, per Net profit for the period 58.0 50.2 16% segment (ABS Group) reached about 1,280,000 tons by capita added value. One of these investments was the June 30, 2018, (a 20% increase over the same period DIGIMET project, which puts into practice the principles Net profit attributable to the Group 58.4 50.5 16% last year), the goal being to maintain the same growth in of the 4.0 revolution in the steelmaking industry, Net positive financial position 836.7 912.5 -8% volume next year as well. with the goals of ensuring total control of production The 2017/2018 financial year therefore shows a positive variables during the design stage and the startup of Consolidated shareholders’ equity 1,853.0 1,817.8 2% EBIT, albeit diminished in the Plant Making segment, the plants, and speeding up the production processes, Number of employees 9,358 8,959 4% which is feeling the negative effects of low-profit orders reducing costs and optimizing production efficiency. in the period, acquired during the crisis years, and Group order book 2,954 2,532 17% under absorption costs resulting from the use of design (Steel Making) 393 375 5% and production at 75% capacity, while in the Steel Strategies Making segment, margins are higher, thanks also to the investments that were made in past years. Below are some of Danieli’s mottos: The consolidated net profit is on the rise again and we — “Innovaction to be a step ahead in Capex and Summary of Results by Business Segment believe that in the next financial year both business Opex” which aims to make the most of the Group’s segments could see an improvement, thanks also to the new organizational model, promoting multicultural Revenues Group’s solid net financial position which remains high intellectual growth and creating solutions to meet (millions of euro) 30/06/2018 30/06/2017 Variation and stable. current market requirements more effectively The Board of Directors has acknowledged the results — “Passion to innovate and perform” but also “We do Plant Making 1,714.3 1,751.0 -2% for the 2017/2018 fiscal year, pointing out that the not shop around for noble equipment”. The Danieli Steel Making 991.3 739.9 34% performance of both the Plant Making and Steel Making Group will therefore continue to consolidate and expand segments – and the large amount of orders – lead its business in order to be more competitive in terms of Total 2,705.6 2,490.9 9% us to forecast positive results for next year without innovation, technology, quality, costs, productivity and being conditioned by any additional extraordinary customer service. Normalized gross operating margin -26% restructuring charges. Not only is Danieli known as a supplier of plants but (Adjusted EBITDA) also for its manufacturing capabilities: in Europe, for its noble and high-tech products, in Asia for the design (millions of euro) 30/06/2018 30/06/2017 Variation Worldwide prospects for the metals producing sector and manufacture of consolidated, proven products Plant Making 113.3 153.9 -26% that affect Danieli’s Plant Making business made with the same quality as those in Europe.

Steel Making 126.6 71.1 78% In the first half of 2018, world steel production In particular, in order to consolidate these strategies, the Total 239.9 225.0 7% was approximately 881 million tons, reporting an company plans to expand the Danieli Academy to train approximate 4.6% increase over the same period in junior employees, provide refresher courses for senior 2017, which had reached a total of approximately 1,691 staff, and make the most of talented youths. Gross operating margin (EBITDA) million tons over the 12-month period. (millions of euro) 30/06/2018 30/06/2017 Variation Forecasts for 2018 point to an overall increase of around 4.0-4.5%, with Asia (driven by China and India) Order Book Plant Making 107.0 137.1 -22% showing 5.5% growth, and advanced and emerging Steel Making 121.8 65.4 86% countries showing a smaller growth rate of about 2.0- The Group’s order book is well diversified according to 2.5%. geographical area and product line, and for the year Total 228.8 202.5 13% The average utilization factor of plants, compared to the ended June 30, 2018, amounts to 2.954 million euro maximum theoretical figure, reached about 78.5% for (of which 393 million euro in the production of special Operating income the year ended June 30, 2018, a marked improvement steels) compared to 2.532 million euro for the year on the figure of 73% at the end of June 2017. ended June 30, 2017 (of which 375 million euro for (millions of euro) 30/06/2018 30/06/2017 Variation The steel market showed an improvement in 2018 and special steels). Plant Making 41.7 57.1 -26% is expected to further stabilize in 2019, but forecasts are The recognized strategic role of the metals industry subject to the volatility of current trade policies. and of its multiplying effect on employment and the Steel Making 62.2 13.2 371% Steel makers worldwide are focusing more on the development of the manufacturing industry generally Total 103.9 70.3 48% sustainable operation of their plants by using the continues to drive this sector by backing investments new available technologies (Green Steel), thereby in innovative plants in both developing countries and in decreasing both greenhouse gas emissions and energy those with mature economies. Net profit attributable to the Group consumption per ton, resulting in waste reduction to (millions of euro) 30/06/2018 30/06/2017 make production more efficient and socially sustainable Human resources for the community and the environment. Plant Making 14.0 41.3 -66% The research and technological development As of June 30, 2018, the Danieli Group employed Steel Making 44.4 9.2 383% implemented by Danieli in the last decade have enabled 9,358 people – 1,557 in the Steel Making segment and us to expand the range of plants supplied to the entire 7.801 in the Plant Making segment, an increase of 399 Total 58.4 50.5 15% metals sector (steel, aluminum and other metals) over the figure of 8,959 employees for the year ended significantly lowering the cost of the initial investment of June 30, 2017. Gross operating margin (EBITDA) is a measurement used by the Issuer to monitor and evaluate the performance of operations, and represents the operating profit before depreciation and amortization of fixed assets and net write-downs of receivables (this measurement is not specified in the IFRS principles and therefore may not be fully comparable with other entities that use other calculation criteria).

12 DANIELI YEAR 2018 13 detachment of coupon n.40 – for both categories Danieli continues to pursue innovation, efficiency and Total global value added Consolidated income statement (*) quality of customer service at a fast pace, promoting of shares – on November 19, 2018, payable as of team excellence, which is taking on an increasingly (millions of euro) 30/06/2018 30/06/2017 (millions of euro) 30/06/2018 30/06/2017 November 21, 2018 (record date: November 20, 2018). The Board of Directors proposes a dividend that is important and strategic role for the success of the A. Revenues/ Value of production 2.705.6 2.490.9 Revenues 2.705.6 2.490.9 company. Consequently, this confirms the importance still low and unchanged from last year in order to of carefully managing and making the most of the B. Intermediate production costs 2.150.3 1.986.4 Raw materials and consumables (1.377.4) (1.233.9) keep making significant investments in research and innovation for the purpose of developing new products potential and aptitude of people in order to ensure that 0(A - B) Core global value added 555.3 504.5 Personnel costs (442.0) (425.1) the Group’s training programs are in line with the best and specific technologies for the current “New Normal” practices. C. Ancillary components (13.0) 0.5 Other operating costs (659.4) (631.3) of the steel market. Total Value Added 542.3 505.0 Amortization. depreciation (122.9) (130.4) and write-downs The Board of Directors has pointed out that in the last Consolidated Value Added 10 years, as much as 87% of profits has been invested Operating income 103.9 70.2 back into the company, not only to maintain its financial The economic value that is generated converts the Financial income/(charges) (5.8) 0.8 solidity but also to invest in new plants and innovation. Group’s ability to create wealth and distribute it as remuneration for the stakeholders. Profit (loss) from foreign currency (13.8) (7.3) The tables below show how economic value transactions Danieli Group Operations Distribution of total value added is distributed among stakeholders through the Income from valuation 0.6 (0.7) reclassification of data from the consolidated income (millions of euro) 30/06/2018 30/06/2017 of shareholdings in affiliates The Danieli Group essentially runs two main statement. according to the net equity method businesses: the first (Plant Making) is in the field A. Personnel remuneration 442.0 81.5% 425.1 84.2% of plant engineering and manufacturing of plants – Profit (loss) from extraordinary 0.0 0.0 Total value added is divided among the following B. Public administration remuneration 35.1 6.5% 20.9 4.1% including turnkey plants – for the production of metals. beneficiaries, where personnel (direct remuneration transactions Its principal operating companies in the Plant Making C. Venture capital remuneration 8.2 1.5% 8.2 1.6% comprising salaries, wages, employee termination Profit (loss) before taxes 84.9 63.0 segment are in Europe (Italy, Sweden, Germany, indemnity and indirect remuneration in the form D. Third party remuneration (0.4) (0.1%) (0.4) (0.1%) France, Austria, the Netherlands, the United Kingdom, of social security contributions) and the Public Income Taxes (26.9) (12.9) Russia, Spain) and in Asia (China, Thailand, India, E. Company remuneration 50.2 9.3% 42.3 8.4% Administration (income taxes and other taxes) cover Net profit for the period 58.0 50.1 ), with service centers in the US, Brazil, Egypt, almost 88% of the total, while the remaining 12% F. Lender remuneration 6.1 1.1% 7.7 1.5% Turkey and Ukraine. includes venture capital (dividend distribution), (Profit) loss attributable to non- 0.4 0.4 third parties (non-controlling interests), company G. Donations and sponsors 1.1 0.2% 1.2 0.2% controlling interests In the Plant Making sector, Danieli is one of the top remuneration (reinvested earnings), remuneration Total Value Added 542.3 100.0% 505.0 100.0% Net profit attributable to the Group 58.4 50.5 three manufacturers in the world for metal making to lenders (interest on loans) and donations and plants and machines, leader in meltshops and plants for sponsors (sponsorships, donations and other forms of the production of long products (these plants produce contribution). steel in electric arc furnaces – including from direct reduced iron – and in addition to being competitive in The Chairman of Danieli’s Board of Directors and his terms of Capex and Opex, are also environment-friendly, executive directors confirm the company’s commitment compared to integrated plants that use blast furnaces to augmenting its Corporate Responsibility towards and coke), it is second in the manufacture of plants for the global community, both directly and indirectly, flat products. by promoting the research and development of Consolidated net financial position steelmaking equipment and machines using Green The second business (Steel Making) concerns the Consolidated statement of assets and liabilities (*) (millions of euro) 30/06/2018 30/06/2017 Variation Steel and Sustainable Steel solutions, thereby improving production of special steels through the companies of efficiency, safety and reducing waste as well as the (millions of euro) 30/06/2018 30/06/2017 Current financial assets Acciaierie Bertoli Safau S.p.A. (ABS), ESW Rohrenwerke impact of GHG for the protection of the environment. GmbH and ABS Sisak d.o.o. The steels produced in Assets - Securities and other financial receivables 459.9 557.1 (97.2) these facilities supply the automotive industry, heavy- Danieli also took part in the Carbon Disclosure Project Non-current assets 1.108.9 1.157.4 - cash at banks 927.2 1.078.5 (151.3) duty vehicles, engineering, energy and petroleum (CDP), and in 2017 was one of the worthiest Italian industries. ABS is the number one steelmaker in Italy Current assets 3.579.0 3.654.4 Total current financial assets 1.387.1 1.635.6 (248.5) and European companies, highly ranked thanks to its and among the leading ones in Europe in its field. ever increasing commitment to developing innovative, Total Assets 4.687.9 4.811.8 In Friuli-Venezia Giulia, the Danieli Group provides environment-friendly solutions for our customers. Non-current financial liabilities employment for about 6,000 people, either directly or Specifically, the CDP Climate Change initiative helps through linked industries, and represents almost 40% - bank debts 337.7 159.0 178.7 more than 800 institutional investors identify, from Liabilities and Shareholders’ Equity of the yearly exports of the province of Udine, and 20% among thousands of corporations, the ones that are the Total non-current financial liabilities 337.7 159.0 178.7 of those of the region of Friuli. most motivated to grow more sustainably by dealing Share capital 81.3 81.3 with the effects of climate change on their businesses. Other reserves and profits 1.772.0 1.737.2 Concerning the well-being of its employees (and others), Current financial liabilities carried forward. including profit in addition to the kindergarten that has been running for for the year 212.7 564.1 (351.4) 36.7 several years, this year we also opened an elementary Resolutions of the Board of Directors school, whose teaching methods are considered to be Group shareholders’ equity 1.853.3 1.818.5 Total current financial liabilities 212.7 564.1 (351.4) advanced as compared to traditional teaching methods. The Board of Directors, in addition to approving the Non-controlling interests (0.3) (0.7) Attached are the statement of assets and liabilities, financial statements, will propose to the assembly of (159.0) (410.0) 251.0 the income statement (excluding the overall income Non-current liabilities 419.3 250.2 shareholders, who, following a single call, will meet statement), and the consolidated financial position Current net financial position 1.174.4 1.071.5 102.9 at company headquarters on October 26, 2018 at Current liabilities 2.415.6 2.743.8 of the Group and the Parent Company Danieli & C. – 2 p.m., the distribution of a unit dividend of euro Non-current net financial position (337.7) (159.0) (178.7) Officine Meccaniche S.p.A., for the period ended June Total liabilities 4.687.9 4.811.8 0.10 for ordinary shares, and euro 0.1207 for saving 30, 2018, compared with the data for the period ended and shareholders’ equity Positive net financial position 836.7 912.5 (75.8) shares, amounting to a total of 8,194,928 euro, upon June 30, 2017.

14 DANIELI YEAR 2018 15 Danieli Plantmaking The Team

Danieli Plant Engineering Since 1964 Italy Turnkey Plants and Systems Engineering Danieli Fata EPC Since 1965 Italy, USA, India, China, UAE Turnkey Plant Engineering, Procurement, Construction Danieli Automation & Digi&Met Since 1969 Italy, USA Process Control Systems Danieli Centro Metallics Since 1987 Italy Ore Processing and Direct Reduction Plants Danieli Corus IJmuiden Since 1977 The Netherlands Integrated Steelmaking Plants Danieli Centro Germany Since 2011 Austria, Germany Oxygen Converter Steelmaking Plants Danieli Centro Recycling Since 1998 Italy, UK, France, Germany Scrap Processing Plants Danieli Centro Met Since 1914 Italy, Austria Electric Steelmaking and Long Product Casters Danieli Davy Distington Since 1951 UK, Italy Thick and Thin Slab Casters Danieli Wean United Since 1901 Italy, USA, Germany Flat Product Rolling Mills and Strip Processing Lines Danieli Kohler Since 1959 USA, Italy Air Wiping Equipment for Zinc Coating Danieli Fröhling Since 1947 Germany Specialty Mills and Strip Finishing Lines Danieli Fata Hunter Since 1936 Italy, USA Aluminium Casting, Rolling, and Coil Coating Lines Danieli Morgårdshammar Since 1856 Italy, Sweden Long Product Rolling Mills Danieli Centro Tube Since 2004 Italy Seamless Pipe Plants Danieli W+K Since 1968 Germany, Italy Longitudinal and Spiral Welded Pipe Plants Danieli Centro Maskin Since 1953 Italy, Sweden Conditioning, Drawing, and Finishing Plants Danieli Rotelec Since 1977 France, Italy EMS and Induction Heating Systems Danieli Hydraulics Since 2008 Italy, Thailand Industrial Hydraulic and Lubrication Equipment Danieli Breda Since 1950 Italy Extrusion and Forging Plants Danieli Centro Combustion Since 1981 Italy Heating Systems Danieli Olivotto Ferrè Since 1927 Italy Heat Treatment Furnaces Danieli Centro Cranes Since 1958 Italy Heavy-duty Cranes Danieli Environment and Systems Since 1973 Italy Green Technology and Systems Danieli Construction Since 2003 Italy, Thailand Turnkey Construction, Erection, and Systems Engineering Danieli Service Since 1962 Italy, Austria, China, India, Technical Service and Original Spare Parts Russia, USA, Brazil, Thailand Danieli Team’s mission is to serve Customers with competitive plants and process technology/ automation to produce quality with the lowest depreciation and production cash costs and to offer friendly after-sale service involving highly qualified, specialized engineers. The technology spectrum -from ore to finished product- and relevant process know-how provided by our Product Lines, the well-known tendency towards innovation and high reliability are the best guarantees in reaching this target.

16 DANIELI YEAR 2018 PLANTMAKING 17 The Reliable Innovative Partner in the Metals Industry Danieli Plantmaking The Team

More than 25 divisions, each one staffed Italy, Austria, UK, by individuals with specific technical USA Germany Italy capabilities, and bringing long and notable legacies from their own countries form a multicultural, multilingual team that helps us to establish the best relationships with our customers around the world. DANIELI AUTOMATION & DIGI&MET DANIELI CENTRO GERMANY DANIELI DAVY DISTINGTON Process Control Systems Oxygen Converter Steelmaking Plants Thick and Thin Slab Casters / Since 1969 / Since 2011 / Since 1951

With more than 40 years of experience focused Danieli Centro Germany is a steelmaking center Danieli Davy Distington pioneered continuous casting on metals worldwide, Danieli Automation is your of competence, where proven oxygen converter technology and today, through continuous innovation, technological partner for production management, specialists interact with experts on sublance systems, is world’s leader in the design and manufacture of process and equipment control, advanced process models, and technological packages, as well advanced continuous slab casters. instrumentation, and state-of-the-art electrical as with the pioneering Danieli R&D Researchers. solutions.

Italy Italy Italy, Italy, UK, USA, France, Germany Germany, USA

DANIELI PLANT ENGINEERING DANIELI CENTRO METALLICS DANIELI CENTRO RECYCLING DANIELI WEAN UNITED Turnkey Plants and Systems Engineering Ore Processing and Direct Reduction Plants Scrap Processing Plants Flat Products Rolling Mills and Strip Processing Lines / Since 1964 / Since 1987 / Since 1998 / Since 1901

We supply integrated plants for the metal industry, With more than 50 years of research and experience Danieli Centro Recycling is the innovative team to Over the course of its long history Danieli Wean United including technologies, auxiliary plants, construction, in design, construction, commissioning and operation meet new challenges in the design and construction has developed a thorough knowledge together with a and after-commissioning assistance. of iron ore processing and direct reduction plants, we of advanced recycling plant technology, giving added well-earned experience in the downstream processing We provide customers with a single-point responsibility, supply any type and size of DRI based minimills. value to scrap, and focusing on the needs and of the hot/cold rolled steel and strip processing lines. ensuring project delivery time assurance and total requirements of aiming for zero environmental impact. investment cost certainty.

Italy, The Italy, USA USA, Netherlands Austria India, China, UAE

DANIELI FATA EPC DANIELI CORUS IJMUIDEN DANIELI CENTRO MET DANIELI KOHLER Turnkey Plant Engineering, Procurement, Construction Integrated Steelmaking Plants Electric Steelmaking and Long Product Casters Air Wiping Equipment for Zinc Coating / Since 1965 / Since 1977 / Since 1914 / Since 1959

Danieli Fata EPC operates in the field of plant Danieli Corus has firm roots in IJmuiden, where steel The constant evolution of technical and process know- Danieli Kohler is world leader in the supply of highly engineering, procurement and construction, production started in 1924 and quickly developed how through significant investments in R&D as well as technological equipment, with more than 150 providing customized, state-of-the-art technology towards world benchmark for Blast Furnace synergies and cooperation with our customers have installations in molten metal coating lines of all types. and enviromentally consistent solutions for primary ironmaking and BOF steelmaking. made Danieli Centro Met a worldwide leading supplier aluminium smelters, downstream aluminium projects, of electric steelmaking plants. oil & gas, power generation plants.

18 DANIELI YEAR 2018 19 Danieli Plantmaking / The Team The Reliable Innovative Partner in the Metals Industry

Germany Italy France, Italy Italy

DANIELI FRÖHLING DANIELI CENTRO TUBE DANIELI ROTELEC DANIELI CENTRO COMBUSTION Specialty Mills and Strip Finishing Lines Seamless Pipe Plants Ems and Induction Heating Systems Heating systems / Since 1947 / Since 2004 / Since 1977 / Since 1981

Danieli Fröhling is well known all over the world Through a highly qualified and long lasting Danieli Rotelec is a leading company in the Equipment is bespoke to suit the needs of each as a manufacturer of machines of the highest quality experienced engineering team, Danieli Centro Tube manufacture of electromagnetic stirrers for conticasters client and includes cutting-edge technologies which for rolling and processing of non-ferrous metals, designs, manufactures and supplies and induction bar edge heaters for hot strip mills, concentrate on environmentally friendly solutions. not simply satisfying its demanding customers technologically-advanced complete plants and offering a unique combination of metallurgical A well-established network of after sales services but rather inspiring them by continuously extending equipment for the hot rolling and cold finishing process know-how, and expertise in designing/self- guarantees equipment supplied, regardless of different technical limits. of high-quality seamless pipes. manufacturing of equipments. feedstocks; billets, blooms, beam blanks, slabs or pipes, etc.

Italy, Germany, Italy, Italy USA Italy Thailand

DANIELI FATA HUNTER DANIELI W+K DANIELI HYDRAULICS DANIELI OLIVOTTO FERRE’ Aluminium Casting, Rolling, and Coil Coating Lines Longitudinal and Spiral Welded Pipe Plants Industrial Hydraulic and Lubrification Equipment Heat Treatment Furnaces / Since 1936 / Since 1968 / Since 2008 / Since 1927

Danieli Fata Hunter is one of the world leaders in Danieli W+K is a strong, reliable and competent Thanks to the expertise and know-how gained in the With over 800 references, Danieli Olivotto Ferre’ implementing single equipment as well as complete partner for the pipe and tube industry. It develops steel industry, Danieli Hydraulics can provide any stage is able to supply a wide range of economic and turnkey plants for the aluminium flat rolled product customer-orientated individual solutions not only with of engineering, production and commissioning process sustainable heating solutions and modern heat treating industries and for steel and stainless steel processing upcoming modernization projects and the delivery of also for other markets, such as oil & gas, mining, paper furnaces covering a whole range of appliances and industries, with a comprehensive ability and know-how single plant components but also with the installation industry, cement industry, hydro-power, tools machine, services for the metals industry. for all production ranges. of a complete turnkey pipe plant. marine, etc.

Italy, Italy, Italy Italy Sweden Sweden

DANIELI MORGÅRDSHAMMAR DANIELI CENTRO MASKIN DANIELI BREDA DANIELI CENTRO CRANES Long Product Rolling Mills Conditioning, Drawing and Finishing Plants Extrusion And Forging Plants Heavy-Duty Cranes / Since 1856 / Since 1953 / Since 1950 Since 1958

We believe in what we build day by day and we are Danieli Centro Maskin is a reliable and innovative For well over 50 years Danieli Breda has been Design and supply of cranes and lifting systems for the what we produce. partner for challenging new goals in the design and recognized as one of the world’s front-runners in the heavy industry and logistics, with dedicated solutions This is written in our DNA since 1856. From bigger to construction of advanced grinding, drawing, peeling design, manufacture and supply of machines and for lifting and handling of materials and equipment in smaller, from heaviest to longer, from smaller to faster, and cold finishing lines for sbq bars. integrated plants for processing ferrous and non- the most severe conditions. Our products are designed simply undisputable features in the metals industry. ferrous materials in the field of extrusion and forging to operate where reliability, safety, and cost-effective technology. solutions are a must.

20 DANIELI YEAR 2018 21 Danieli Plantmaking / The Team Significant events of the Group’s Main events of the year consolidated international standing.

Italy

DANIELI ENVIRONMENT AND SYSTEMS Green Technology and Systems / Since 1973

A division that specializes in environmental protection, offering a full range of proprietary technologies for air pollution control, water treatment, energy saving, energy recovery, solid waste recovery, and noise reduction.

Italy, Thailand

DANIELI CONSTRUCTION Turnkey construction, erection and systems engineering / Since 2003

Danieli Construction International operates worldwide with own handling and transportation equipment and through specialized and trained people covering a full range of services related to Civil and MEIP (Mechanical, Electrical, Instrumentation, Piping) installations for industrial plants.

From top left to right: Contract signing for a 0.5-Mtpy inauguration of CC8 slab caster for special steels at Italy, Austria, electric steel meltshop rehabilitation project in the MENA voestalpine Stahl, Austria; Official inauguration of the China, India, region; Signing ceremony for a FQT seamless pipe complex world’s most modern wire rod mill at voestalpine Wire Russia, for OMK Vyksa Steel Works, Russia; Celebration of project Technology, Austria; official groundbreaking USA, Brazil, completion for the Blast Furnace No. 4 reconstruction ceremony for the scrap-based Danieli Nano Mill at ArcelorMittal Zenica, Bosnia and Herzegovina; Official at Las Lomas, Bolivia. Thailand

DANIELI SERVICE Technical Service and Original Spare Parts / Since 1962

Always close to our partners. Counting on Danieli Service support means becoming more than just a customer: it means becoming a partner in the strategic challenges requested by market developments, so as to be always a step ahead in CapEx and OpEx.

22 DANIELI YEAR 2018 PLANTMAKING 23 Main events of the year

The Digi&Met building at Danieli Automation. In order to remain competitive in this “New Normal” market, Danieli has invested in technologies that, while maintaining customer centricity, make it possible to increase plant productivity. One of these investments was the Digi&Met project, which puts into practice the principles of the 4.0 revolution in the steelmaking industry, with the goals of ensuring total control of production variables during the design stage and the startup of the plants, and speeding up the production processes, reducing costs and optimizing production efficiency.

24 DANIELI YEAR 2018 25 The market continues to place its trust in Danieli with An intense and productive collaboration with the customer New orders a series of orders covering the entire spectrum Plant startups throughout the project is essential to ensure that all requirements of technologies provided by the Group’s Product Lines. are carefully considered, thus laying the foundation for a successful execution and for a fast startup.

Order for two MI.DA.- 300-t BOF vessel, with 800,000-tpy MI.DA. 1.2-Mtpy MI.DA. Micromill Startup of the Rolling Mill Startup of an aluminium Successful installation Six-month record time Micromill Danieli to increased reaction volume, Micromill Danieli for 8 Danieli with twin-strand No. 1 as part of a 2-Mtpy cold rolling line and and commissioning of a startup of a 1.2-Mtpy Cold produce 380,000 tpy complete with new to 40 mm rebar production. conticaster and two minimill for long products a tension leveling line 250,000-tpy double-coat Mill Complex comprised of rebars. suspension system and separate rolling lines for supplied on a full lump in one of the most coil-coating line. of a continuous pickling trunnion ring, slag shields, ETRHB, straight bars and wire rod; sum turnkey basis. modern aluminium rolling line, two cold rolling mills, NUCOR CORP., and coupling. ALGERIA a world’s first. plants in Europe. STEEL DYNAMICS, a galvanizing line, USA AQS, USA and a color-coating line. CENTRAL ASIA GUILIN PINGGANG, ALGERIA EUROMETAL, SHANXI JIANBANG, POLAND ATAKAS¸, CHINA TURKEY

MI.DA.-Micromill Danieli Three EAFs (120, 130, EPC contract to build a EPC and LTSA contract Early startup -1.5 months Final acceptance for a Final acceptance of a Record 8-month to produce 400,000 tpy and 150-t, respectively) 4.26-MW Concentrated for construction of modern ahead of schedule- of 500-mpm recoiling line 70,000-tpy slitting line for installation period for an of rebars. equipped with ECS- Solar Plant in Sicily. CCP Plant using only gas a 450,000-tpy hot dip and for a 400-mpm slitting aluminium strip, running at innovative double-stand hot continuous charging scrap fuel, with electrical output galvanizing line for GI line for copper alloy strip. speeds of up to 800 mpm. reversing mill to produce AGHA STEEL INDUSTRIES, system. ENEL, of 150 MWe and heat products. HR aluminium plate and PAKISTAN ITALY output of 114 MWt. KMD HENAN, HENAN ZHONGFU, strip, and CR sheet. GUIHANG METAL PRODUCTS, TOSYALI TOYO, CHINA CHINA CHIZHOU GUI HANG METAL, ALBHRVATSKA TURKEY KUMZ, QINGYUAN TSINGSHAN S.S., ELEKTROPRIVREDA, RUSSIA CHINA CROATIA

Tandem Mill with five, Second HDGL to add Continuous Pickling Line EPC contracts to expand Final acceptance of a Final acceptance of a Cold Startup of a 350,000-tpy Successful startup of a 6-high stands to produce 400,000-tpy capacity to for Cherepovets Steel the industrial port, and for three-roll cross rolling mill Pilger Mill for zirconium hot slab grinding plant for 110,000-tpy, state-of-the- high-strength quality grades the complex and to expand Complex, to process 2-Mtpy a fume treatment center with unique capabilities to tubes and bars for nuclear stainless steel slabs, made art color-coating line and with superior flatness. the products range to GI of carbon and engineering for the new anode baking produce excellent premium cladding applications with up of two units with main printing line for steel strip and Zn-Al coated coils. steel grades. furnace within the smelter’s tubes designed for the most tight geometric tolerances and edge grinders. in a variety of coatings TATMETAL, line 6 expansion project. demanding applications. at high production rates. (PUR, PVDF, EP, SP). TURKEY YILDIZ DEMIR ÇELIK, SEVERSTAL, FUJAN FUXIN STAINLESS, TURKEY RUSSIA ALBA-ALUMINIUM BAHRAIN, VALLOUREC DEUTSCHLAND, NUCLEAR FUEL COMPLEX, CHINA LYSVA METALLURGICAL PLANT, BAHRAIN GERMANY INDIA RUSSIA

3.5 Mtpy QSP complex, 4,500-mm Plate Mill and New wire rod line to Two-strand conticaster for Final acceptance of the Final acceptance of a H3 Successful startup of an Excellent restart for a including two vertical- for a 2,350-mm 4-high produce up to 500,000-tpy Jumbo Beam Blanks up to world’s first installation wire rod mill producing electric steel meltshop three-strand conticaster curved casters, a twin- EDT Cold Rolling Mill for of commercial and special 1,300x510x140 mm; the of a DQ-Direct Quenching 600,000-tpy of engineering producing 650,000-tpy of for quality engineering strand shuttle furnace, and automotive flat products. construction steel grades. world’s largest. system downstream steels at speeds of up to LC-MC steel billets to feed steel blooms, extensively a 2+4 stands hot strip mill. of a plate/Steckel mill. 110 mps. an existing Danieli bar mill. revamped from the tundish SHANDONG NANSHAN ABINSK ELECTRIC STEEL, MAANSHAN IRON AND STEEL area up to the run-out. HOA PHAT STEEL, ALUMINIUM, RUSSIA CHINA NUCOR TUSCALOOSA, ABINSK ELECTRIC GERDAU, VIETNAM CHINA USA STEEL WORKS, ARGENTINA XINING SPECIAL STEEL, RUSSIA CHINA

26 DANIELI YEAR 2018 27 DANIELI HEADQUARTERS

Via Nazionale, 41 www.danieli.com 33042 Buttrio (UD) Italy [email protected] Tel (39) 0432.1958111 [email protected]

DANIELI WORLDWIDE

AUSTRIA BRAZIL CHINA Max Planck Strasse, 5 Rua George Rexroth, 609 Diadema No. 19, Xing Gang Road, CEDZ A - 9100 Völkermarkt CEP 09951-270 Sao Paulo Changshu, Jiangsu 215513 Tel. (43) 4232.51440.6101 Tel. (55) 11.39953150 Tel. (86) 512 52267000 [email protected] [email protected] [email protected]

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JAPAN KOREA KSA 42F, Yokohama Landmark Tower # 602 6th Fl., Yeondang Bldg., Silver Tower 6th floor 2-2-1, Minatomirai, Nishi-ku, 439 Teheran-Ro, Gangnam-Gu, P.O. Box 4867 Yokohama-City 06158 Seoul Al-Khobar 31952 220-8142 Japan Tel. (82) 2.5626622 Tel. (966) 3.8993145 Tel. (81) 45.651.7077 [email protected] [email protected] [email protected]

MEXICO RUSSIA RUSSIA Edificio Sierra Madre Avtozavodskoe shosse 48 Leningradskiy Prospekt 31A Ave. Vasconcelos Oriente 310 Nizhny Novgorod Region Building 1, 24th Floor Colonia del Valle 606000 Dzerdzhinsk 125284 Moscow 66250 Garza Garcia, N.L. Tel. (7) 8313.310310 Tel. (7) 495.9819073 Tel. (52) 81.83781055 [email protected] [email protected] [email protected]

SPAIN SWEDEN SWEDEN Poligono Sondikalde Box 994 Nya Ågatan, 23 Calle Portu Bidea, 2 SE-85125 Sundsvall SE-77782 Smedjebacken 48150 Sondika - Vizcaya Tel. (46) 60.139400 Tel. (46) 240.668500 Tel. (34) 94.4872800 [email protected] [email protected] [email protected]

TAIWAN THAILAND THE NETHERLANDS 26F-1, No. 31 Land Plot N. K11 Rooswijkweg 291, 1951 Hai-Bian Road The Eastern Seaboard Ind. Estate ME Velsen-Noord Kaohsiung City, Taiwan 802 Tambol Pluakdaeng, Amphur Tel. (31) (0) 251.500500 Tel. (886) 7.3358655 Pluakdaeng, 21140 Rayong [email protected] [email protected] Tel. (66) 38.929000 [email protected]

TURKEY UKRAINE UNITED KINGDOM 1. OSB lstiklal Mahallesi Glinky Street 2, Office301 4 Ignite, Magna Way 1. Cadde No. 15 49000 Dnipropetrovs’k Rotherham S60 1FD Beykoy - Duzce Tel. (380) 56.7904301 Tel. (44) 1709.724300 Tel. (90) 3805537110 [email protected] [email protected] [email protected]

USA VIETNAM 600 Cranberry Woods Drive Lot A4b Industrial Park Suite 200 Tan Thuan EPZ (E-Office Park) Cranberry Township, PA 16066 Tan Thuan Dong Ward, District 7 Tel. (1) 724.7785400 Ho Chi Minh City [email protected] Tel. (84) 28.37929400 [email protected] DANIELI TEAM A CENTURY OF PARTNERSHIP DANIELI Preview EXPERIENCE YEAR 2018

ITALY GERMANY SWEDEN AUSTRIA FRANCE THE NETHERLANDS UK SPAIN RUSSIA TURKEY USA BRAZIL THAILAND INDIA CHINA JAPAN