Sidenor 2022 Sustainability Report

4 Growing in a complex environment 2022 has been one of the most turbulent years in our entire history a year marked by utter volatility, as well as a degree of uncertainty that we had never experienced before. The nightmare of COVID was not behind us yet as we suddenly found ourselves immersed in a war on the borders of Europe and had to face an unprecedented energy crisis, which shook many companies. To complete the picture, our economy was strained by unbridled inflation and rising interest rates. Challenges were therefore many, and of all types geopolitics, energy, economy… and yet, in spite of this adverse setting, and thanks to the work of all, we obtained excellent results which underpinned - even more - our financial strength. In the face of the uncertainty which seems to have settled in the economy, and therefore in our activities, Sidenor has decided to resolutely take the route towards diversification in customers, sectors and products. Over the past 20 years, we have particularly relied on the automotive industry; now, without leaving this market which will remain essential to us, we will grow in other sectors such as onshore and offshore wind power, mechanical construction, railway… Diversification will undoubtedly be one of Sidenor’s identifying features in the next decade. We will maintain and extend our ESG commitment with a view to ensuring our profitability and sustainability in the long term, and with a special focus on decarbonization. The action plan we have deployed throughout the entire Company is unquestionably bearing results; in this respect, we are already very close to reaching the objectives we had set for 2030 in terms of CO 2 emission reduction. In 2017, we decided to perform a profound technological transformation in our Company. For this purpose, we carried out significant investments, mainly in the rolling mill of Basauri, which, some years later, lifted us to the top of European special steel producers. During the complex health crisis period, in which many industries experienced a disruption in their supply chains (with the corresponding supply problems), Sidenor was able to convey trust to its customers, ensuring product quality and reliability in supply. Our image in Europe gained a very positive momentum, whose effects are already reflected in our market share. In the next 5 years, we will conclude our technological transformation with a series of investment projects on which we are currently working. In essence, we are on the path towards consolidating our financial strength in order to address the coming years - which will undoubtedly be challenging - in a strong position. José Antonio Jainaga Chairman of Sidenor Sustainability Report 2022 | Chairman’s letter