Sidenor 2021 Sustainability Report. Non-financial information statement

Sustainability Report 2021 | About us Within the framework of the Innovation Project, we pursue our diversification strategy both inside and outside the steel business. In the activity related to steel, the long-term strategy is to diversify outside the car sector, in order to mitigate the risk of the increasingly obvious reality of electric cars. We have already been following this path for five years and continue to advance with new products, approvals and, above all, changes in our usual way of working. The sectors in which we are already present include energy generation (both wind energy and oil&gas), railway, mining, defence, tool machinery, etc. In order to access these sectors, we had to perform relevant investments, such as the manufacturing of new continuous casting round bloom formats: one of 410 millimetres and one of 525 millimetres in diameter. In this respect, the support of our Sidenor R&D centre, which developed ad hoc steel qualities to cover and even exceed new needs, has been instrumental. We are currently analysing further markets for Sidenor, such as the maritime sector, the manufacture of lifts, forklift trucks, rail manufacturers, etc. We are studying the development of new products such as rolled round bars that are of higher quality than the current range, new continuous casting bloom sections and more demanding steel qualities, both in special steel and stainless as well as tool steel. In addition, we have launched a corporate diversification, including alliance and purchase processes with other companies searching for synergies with our business. Visible results 2021 Stainless steel In parts for the steering set (racks and pinions) and for the suspension and shock absorber set. Approval Progressive adaptation and awareness raising towards the decarbonisation required in the car sector, promoting investments and steels which will help us lead the sector by means of a sustainable environmental policy. Implementation of our products in new developments of both hybrid and pure electric vehicles, obtaining new approvals in long-term projects. Sidenor remains in line with customers from the bearing sector for the development and approval of high added value products in the car and industrial sector supply chain. Inclusion of martensitic stainless steels for special applications in the production range. The new applications for which we started manufacturing new steels include orientation crowns (bearings) and parts for wind turbine multipliers, wheels and axles for railway rolling systems or spindles for plastic extrusion machines. We increased the steel manufacturing range, producing rims of up to 300mm square intended for open-die forging for the manufacture of parts for goods and services. We are working on the possibility to manufacture, in a relatively short time, round blooms exceeding the current 410 mm and 525 mm dimensions. Significant progress made in applications intended for e-Bike. Diversification We pursue our diversification strategy 26