Results as of 30 September 2018

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(1)Acerinox | Results as of 30 September 2018. rt. Results as of 30 September 2018. Page 0. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. F ree tran sl at ion fro m t he orig ina l in S pan is h. In th e eve nt of di scr epa nc y, the Sp ani sh - la ngu age ve rs ion prev ai ls.

(2) Acerinox | Results as of 30 September 2018. LEGAL NOTICE T his do cum ent ha s b een draw n u p i n go od fai th up on t he b as is of the dat a and fac ts ava il abl e on t he da y of i t s pub li cat io n and sho ul d be r ea d tog eth er w ith a ll the pu bl ic inf orma tio n p rov id ed and / or pu bl is hed b y AC E RI N O X, S . A. T his d oc ume nt ma y con ta i n s tat eme nt s wi th reg ard t o t he fu ture i nte nt ion s, fo r eca st s and est ima te s o f A C ER IN O X, S . A. and i ts bu si ne ss. Thes e t yp es of s tat eme n ts and /or con ten ts m ay inc lu de d ec lara tio ns or ex pe cta ti ons wit h reg ard t o th e c urre nt pl an s, obj e ct iv es a nd f ore cas ts of the c omp any and its grou p , in clu di ng de c lara tio ns co ncer nin g trend s or cir cum st an ces w hic h m ig ht aff ec t i ts c urre nt f in anc ia l si tua ti on and i ts r at ios , resu lt s, stra teg ie s, prod uc tio n le ve ls , e xpe nd itur e, c ost s, e x cha nge r ate s, in v e stm ent s and/ or di vi den d po li cy. I t may a lso con ta in ref eren c es to th e s itu ati on an d tre nds o f t he mark et of r aw ma ter ial s, e spe ci al ly ni ck el an d c hrom e. T hes e sta tem ent s an d co nten ts h ave b een is sue d i n g ood f ai th, u pon t he ba si s of th e kno wl edg e an d i nfor mat io n ava il abl e o n th e da te o f th i s an nou nce men t an d, des p ite bei ng reas ona bl e, do not c on sti t ute a guar ant ee of fu ture comp li an ce. Th ese s tat em ent s a nd con ten ts ar e su bj ec t to r is ks, unc ert ain ti es, ch ang es and s it uat ion s be yo nd t h e con tro l of A C ER IN O X, S. A. , mea n ing t hat t hey m ay n ot c om ply , in f ul l or in p art, wi th w hat is exp ect ed and /or de cl ared .. A CE RI N O X, S. A. p rov id es infor mat io n on t he a bov e and ot her f ac tors wh ic h may a ffe ct its fut ure sta tem ent s c on c erni ng i ts bu sin es s, e xp ect ati ons and /or fin an cia l re s ult s i n th e doc umen ts i t su bmi ts t o th e S pan is h Na tio na l S ecur it ie s M ark et C omm is sio n. Al l int eres ted p arti es are i nv it ed t o vie w the se do cum ent s. Ne ith er t hi s d oc ume nt nor the i nfor mat io n c ont ai n e d her ei n con st itu te an off er to s el l, purc has e or e xc han ge or a n i nv ita tio n t o m ak e a n o ff er to b uy, pur ch as e or e xc hang e, or a re co mmen dat io n or ad vi ce reg ard ing a ny a sse t or fi nan c ial ins trum ent is su ed by th e Ac eri no x Gro up. An y pe rs on w ho a cqu ire s as se ts s hou ld do so u pon t he b as i s of h is or her o wn ju dge men t a fter r ece iv ing th e pr ofe ss io nal adv ic e d eeme d a ppro pri at e. No ki nd of i nve st men t a cti vi ty sh ou ld b e per form ed upo n th e b asi s o f th e i nfor mat io n or f orec ast s con tai ned i n t hi s d oc umen tat ion . Ne ith er A C ER IN O X, S. A. n or its sub si di ari es a ss ume lia bi li ty of any kin d for t he dama ges wh ich ma y ari se from an y use of th is do cum ent or it s co nte nts .. Page 1. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Ex ce pt t o the ext ent r equ i red by the app li cab le la w, AC E RI NO X , S. A. d oe s no t as sum e any ob li gat io n t o p ub li cl y upda te it s fut ure de cla rat i ons an d sta tem ent s, ev en whe n n ew data are pu bl is hed or fur th er un for ese en ev ent s wh ic h mi ght af fe ct the m ar is e..

(3) Acerinox | Results as of 30 September 2018. Presentation of the Results for the Third Quarter of 2018 via Webcast and Conference Call. Ac eri no x wi l l be ma ki ng a pr ese nta ti on of t he re su l ts for t he t hir d quar ter o f 20 18, in En gl ish , t oda y, 26 Oc tob er, a t 1 pm C ET, dire ct e d by Mi gue l Fe rran di s, G roup CF O, acc omp an ied by th e I nv est or R el ati on s t eam . T o ac ces s t he pre se nta ti on v ia c onf eren ce cal l, you can u se o ne o f the f ol lo win g numb ers , 5 - 10 min ute s bef ore t he st art of the e ven t: Ca ll s fr om the U nit ed K i ngdo m: +44 20 7 1 94 375 9 Ca ll s fr om S pai n a nd ot her cou ntr ies : + 34 911 14 0 10 1 F o ll ow ed by th e PI N cod e: 9 649 754 3 # Yo u c an f ol lo w th e pr es enta ti on v ia the S har eho lder s a nd I nv est ors se ct i on of th e Ac eri no x web si te ( w ww .a c erin ox. co m).. Page 2. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Bo th t he pr es ent ati on a nd all the aud io vi sua l m ater i al w i ll b e a vai la ble on t he Ac eri no x web si te..

(4) Acerinox | Results as of 30 September 2018. Results as of 30 September 2018. . . . . . . . . Ac eri no x obt ain ed a pr ofi t after t ax a nd mi nor it y int er est s of €2 21 m il lio n , 40 % hig her than i n the f irs t ni ne mon th s o f 201 7 ( €15 7 mi ll ion) . T he E BIT D A , € 422 m il li on, i s 1 4 % hig her tha n t hat for th e sa me p eri od of the pre v i ou s year (€3 70 mi ll ion) T he p rof it s f or t he th ird qu arter , € 83 m i ll ion , were a 4 % i mpro vem ent on t he pr evi ou s quart er (€8 0 mi ll ion) a nd 1 3 t ime s hi gh er tha n in th e t hird q uart er of 20 17 (€ 7 mi ll ion) . T he E BIT D A o f € 154 mi ll i on was a 2 % i mpro vem en t on t he pre ced in g qu art er (€15 1 mil li on) and 3 ti mes h igh er tha n t hat for t he thir d q ua r ter of 201 7 (€ 53 mi ll ion) T he g ood pe rfor man ce of t he Am eri can mar ke t h as b oos ted th e G rou p ’ s pr of its T he Gro up’ s ne t sal es f or t he fir st ni ne mo nth s, to ta ll ing €3 , 87 2 m i ll ion , in crea s ed by 10 % com pare d wi th the sa me p eri od of the pre vi ou s year Melt in g pr odu ct ion , to ta ll ing 1,9 23, 977 ton ne s, r o se b y 2 % in co mpar is on wi th Jan uary - S ept emb er 201 7 Net f ina nc ial de bt as at 30 S ept emb er was € 666 mi ll i on Oper ati ng ca sh flo w for t he G rou p fr om J an uary t o S ept emb er inc rea sed t o €1 57 mil li on Ac eri no x d is trib ute d a ca sh d iv id end of €0 .45 per shar e i n J ul y – a tot al of €12 4 mil li on Macr oec ono mi c un cer tai nt ies and lo wer pr ic es o f ra w mat eri al s w il l le ad t o a dec li ne in act iv it y in the fo urth qu arter. Q u a r t e rl y e v o l u t i o n o f t h e E B I T D A Millions of euros (% of sales). Page 3. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. .

(5) Acerinox | Results as of 30 September 2018. Stainless Steel Market Glo ba l prod uc tio n of s ta inl ess ste el i ncr ea sed b y 13 % to 26. 06 mi ll io n ton ne s duri ng th e firs t h al f o f 2 018 , a cc ord i ng t o t he lat es t f ig ures fr o m th e I S SF (In tern ati on al St ain le ss St eel F or um).. T he i ncr ea se o f 13 % i n C h ina ’s out put in the fi rst s ix mont hs of t he yea r, a s we ll a s t he grow th o f th e C hin es e manu fac tur er Ts ing sha n in I ndo ne sia , w ere n ote wort hy dev elo pme nt s. T h es e f act ors g ene rat ed a n o ver sup ply on the As ian mar ket wi th very nega ti ve eff ec ts on pri ce s.. North America Ap pare nt con su mpt ion of f lat pro duc t i n t he Nor th A meri can mar ke t ha d gr ow n by 2 % b y Jul y. T h e g ood pr ogre ss o f th e m ark et ena bl ed pri ce s to ri se dur in g the f irs t n in e mo nth s of t he ye ar, he lpe d a ls o b y t he decr ea se in i m port s.. Source: Platts. Page 4. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. P ri c e s o f s t a i n l e s s s t e e l c o i l | 2 . 0 m m c o l d - r o l l e d A I S I 3 0 4 2017 - September 2018.

(6) Acerinox | Results as of 30 September 2018. T hes e fac tor s mea nt th at sto ck s r ema in ed at 2 .8 m onth s, b elo w th e ave rag e of r ec ent year s.. Europe Ap pare nt con su mpt ion of f lat prod uc t i n t he Eur ope a n mar ket ha s c on tin ued to dev el op in a s at is fac tor y ma nner , and a s at Au gu st, h ad gone up b y 1 %. Ho we ver , as we ment ion ed in pr ev iou s re p orts , th e pri ce di ffer ent ia l wi th As ia m ade it a ver y a ttra cti ve mark et for imp ort s, wh ic h hav e a lrea dy am oun ted to 30 %. On 18 Jul y, t he Euro pe a n Com mi ss ion a nno un ced pr ov is ion al s afe gua rds meas ure s affe ct ing i mpor ts of a r ang e of s tee l p rod uct s. T he ai m of t hes e me asur e s is t o en sur e su ppl y to Eu ropea n co ns umer s, b ut at the s ame time , t o pr ote ct the Euro p ean mark et from th e d iv er tin g of s tee l i mpo rts as a resu lt of tari ffs in oth er mar ket s. T h ese s afe guar d mea sur es c ame in to for ce o n T hurs da y 1 9 J u ly and w il l re mai n in for ce fo r 200 da ys , sub je ct to pub l ica ti on of the de fin it iv e m eas ures . T he p res sur e o f impo rts i n to Eur ope i s e rod ing th e b ase pri ce . Due to th e sea son al it y o f the th ird quar ter in ad di tio n to im por ts, i nv ent orie s a re at 66 day s, sl ig htl y a bo ve the a vera ge of r ece nt yea rs, al t houg h we h op e th at the y wi ll rea ch norma l le vel s in th e f ourt h quar ter .. Asia. Page 5. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. As ia n mar ket s ar e per for ming we ll as r egar ds de mand , es pe cia l ly Chi na . Ho we ver, exc es s d ema nd in th e re g ion an d t he ne w o utp ut in Ind one si a kep t pr i ces i n As ia w el l bel ow th e o ther mar ke ts..

(7) Acerinox | Results as of 30 September 2018. Raw Materials Al tho ugh ni cke l ha s c ont in ued t o perf orm wel l o ver t he ye ar as a wh ol e, ma cro eco nom ic unc erta int ie s ac cen tua ted in the t hir d q uar ter ha ve le d t o a pr ic e drop pi ng of 16 % in t he peri od.. O f f i c i a l p ri c e o f n i c k e l o n t h e L M E A v e ra g e d a i l y p ri c e f o r c a s h / t h re e m o n t h s ( US D / t ). Y e a rs 2 0 1 7 - 2 9 S e p t e m b e r 2 0 1 8. T he pri ce of f erro chro me in th e thir d quar ter re mai ned st ab le w ith re sp ect t o the prev iou s one, bu t we ex pec t a fa l l o f 10 % i n t he four th qua rter .. A v e ra g e q u a r t e rl y p ri c e o f f e r ro c h ro m e. Source: Metal Bulletin. Page 6. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. US ¢ / l b Cr.

(8) Acerinox | Results as of 30 September 2018. Production In t he fir st n ine mo nth s of t he year , m el tin g out put (1, 923, 977 to nn es ) in cre as ed by 1. 9 % comp are d t o th e sam e p er iod the pr ev iou s year , h ot rol li ng of f la t pr odu ct s (1 ,662 ,73 5 tonn es) we nt d ow n b y 0. 5 % a nd co ld - ro ll in g ou tpu t ( 1,37 4,8 59 t onn es) wa s 5 .7 % h ig her. Q u a r t e rl y m e l t i n g o u t p u t Thousands of tonnes. Melt in g ou tpu t in t he t hir d quart er w as 0 .3 % h ig her th an in the sam e per iod t he prev iou s year . F lat pr odu ct h ot rol li ng out put w as 3 .3 % lo we r and co ld ro ll ing o utp ut 3. 7 % hi gh er than th e t hir d q uart er of 2 017. A c e ri n o x P ro d u c t i o n. Long p rod uct hot - r ol li ng o utpu t ov er th e fir st n ine m onth s of t he y ear ( 1 94, 97 3 t onn es ) wa s 1 3.3 % h igh er tha n fo r th e sam e p eri od of th e prev iou s ye ar. Ou tpu t in t he thir d quart er wa s 1 1.8 % h igh er than i n t he thi rd quar ter of 201 7.. Page 7. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Thousands of tonnes.

(9) Acerinox | Results as of 30 September 2018. Results Sa le s re ven ue, to tal li ng €3, 8 72 m il l ion , i ncre as ed by 10 % com pare d w it h the sam e peri od the pre vi ou s year . Co n d e n s e d p r o f i t a n d l o s s a c c o u n t Millions of euros January - September Q1 2018. Q2 2018. Q3 2018. 2018. 2017. Net sales. 1,254. 1,334. 1,284. 3,872. 3,511. 10%. EBITDA. 118. 151. 154. 422. 370. 14%. % over sales. 9.4%. 11.3%. 12.0%. 10.9%. 10.5%. 76. 108. 112. 296. 240. 6.1%. 8.1%. 8.7%. 7.6%. 6.8%. Result before taxes. 76. 105. 111. 293. 226. 30%. Result after taxes and minorities. 58. 80. 83. 221. 157. 40%. Depreciation Net cash flow. 41 99. 42 122. 41 124. 124 345. 130 287. -4% 20%. EBIT % over sales. Variation. 23%. T he E BIT D A ac cum ula ted up to Ju ne ( €42 2 m il li on ) wa s 14 % hi gher th an th at f or t he same p eri od the pr ev iou s ye ar. The E BIT D A for th e t hird q uart er of €1 54 mi ll ion w as three t ime s hi gher t han t h at of the same p eri od th e prev iou s ye ar, an d 2 % hig her tha n that of th e sec ond qu art er of 2 018 .. Millions of euros (% of sales ). Page 8. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Q u a r t e rl y e v o l u t i o n o f t h e E B I T D A.

(10) Acerinox | Results as of 30 September 2018. Pre - ta x pr of it s a cc umu lat e d th is y ear (€2 93 mi ll io n) were 3 0 % h ig her th an tho s e fo r t he same per io d th e pr ev iou s year . Q uart erl y pr of its (€1 11 m il lio n) surp as sed tho se o f th e prec edi ng qu arter b y 5 %. Pro fi ts a fter t ax es a nd m i nori ty i nte res ts f or th e fi r st n ine m ont hs o f th e ye a r t ota ll ed €221 mi ll ion , w hi ch wa s 4 0 % hi gher th an i n t he s am e per iod of 201 7. Q uar terl y pro fi ts (€83 m i ll ion) we re 1 3 t ime s hi g h er th an in the th ird quart er o f 20 17 and 4 % h i gher tha n tho se of the pre vi ou s q uar ter. Q u a r t e rl y p ro f i t s a f t e r t a x e s a n d m i n o ri t y i n t e re s t s Millions of euros. In the t hir d quar ter, o pera t ing w ork in g cap it al ha s in c reas ed by 9 5 mi ll ion e uro s, st an din g at € 878 mi l lio n.. Page 9. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Co n d e n s e d b a l a n c e s h e e t Millions of euros.

(11) Acerinox | Results as of 30 September 2018. Hi gher req uir emen ts of wo rkin g cap ita l h av e d eter mi ned ca sh g en erat ion . Oper ati ng cas h flo w i n th e fi rst ni ne mo n ths o f th e y ear wa s €1 57 mil li on, wh il e fre e ca sh f lo w, af ter hav ing ma de in ve stm ent s t ota lin g € 100 m il lio n, amo u nted to €5 7 m il li on. In t he th ird quar ter , a di vi dend for th e sum of €1 24 mil li on wa s di stri bu ted .. Co n d e n s e d c a s h f l o w s t a t e m e n t Millions of euros. As a re su lt of t he f oreg oi n g, th e Gr ou p's ne t f ina nc ia l de bt a s o f 30 S ept emb er wa s €6 66 mil li on, ha vi ng in crea se d b y €5 7 m il li on com par ed wi t h 31 D ece mber 20 17, w he n it s too d at € 609 mi l lio n.. Page 10. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. At 3 0 Se pte mber , A cer ino x h ad cr ed it l ine s amo unt i ng to €2 .0 bi ll io n, 29 % o f wh ich ar e ava il abl e..

(12) Acerinox | Results as of 30 September 2018. Investments At th e e nd of M arc h, the n ew A P - 5 a nne al ing an d p ic kl ing l ine at A cer in ox E uro pa s tar ted up in a t ria l ph as e, w it h th e m os t ad van ced t ec hno lo gic al s y stem s a vai la bl e an d a le vel of c omp et iti ve nes s wh ic h wi ll gen era te n ew qu al ity sta ndar ds. Wit h t he a bo ve , A cer in ox wi ll ma nuf act ure a pro du c t w it h g rea ter ad ded v alu e, qua li ty an d re l iab il it y a nd r edu ce its c ost s and en vir onm ent al imp ac t. T his ne w eq ui pmen t w il l a l so pr ov ide fin al cu st om ers wit h th in ner g aug es, w ith 1,50 0 mm wi dth s, thu s exp and in g t h eir r ang e o f pr od uct s. Impl eme nta ti on is go in g v ery we ll . T he i nst al lat io n of thi s e q uipm ent form s p art o f th e Ac eri no x S tra teg ic P lan 2 016 - 2 020 , wh ich pr ior iti se s inv es tme nts of feri ng rap id r etu rns , opera ti ona l e x cel le nce , o p tima l use of cap ac ity an d f in an cia l s treng th. In t he se co nd qu arter , t wo in ve stm ent s for A cer ino x Eu rop a a nd Co lu mb us wer e appro ve d. I n bot h c ase s i t is a lad le f urna ce wh ich wi ll impr ove the mel ti ng pr oce ss , as we ll as th e o pera ti ng co st s a nd qua li ty, w hi le red uc i ng t he en vir onme nta l imp a ct. T he in ves tme nt to tal s €12 mi ll ion a t Col umb us an d €21 mi ll ion a t Ac eri no x E uropa , as the la tter en ta il s mo re ci vi l work . In ke ep ing wi th th e Gro up ’s p ol ic y, th e ret urn o n th ese inv es tme nts co vers le ss t han 5 year s.. Return to Shareholder T he Gen era l Sha reh old ers ’ Me et ing he ld on 10 Ma y 2018 ap pro ved th e d is tri b uti on of a div id end of €0 .45 per s har e i n c as h, wh ic h was pe rfo rmed on 5 Jul y.. Page 11. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Dur ing A ugu st and S ept em ber, ther e w as a re vam pi n g of the A P 3 an nea li ng an d pi ck li ng lin e, in ord er t o u pgr ade it to the l eve l of the ne w A P 5 an nea li ng and p ic kl ing l i ne..

(13) Acerinox | Results as of 30 September 2018. Board of Directors Appointments At a me et ing h eld o n 24 O c tober , the Bo ard of Dire ct o rs app oin ted Mr I gna ci o M artín Sa n Vi ce nte as a n I nde pen den t D irec tor . Mr. Ign ac io M artí n S an Vi cen te, 1 955 , is an In du str i al Eng ine er who se care er has b een in in du str y , ha vi ng he ld a mong o th er s th e po sit io n s of Ex ec ut ive Cha irm an of G ame sa (2012 - 20 17) and C hi ef E x ecu ti ve Off ic er of CI E A ut omot iv e (2 002 - 20 12). He i s curr ent ly a Dir ect or at Rep so l, Ban koa a nd I ndra, a nd me mber o f the Cou nc il o f the A P D ( A ss oc iat ion fo r t he Ad van ce men t o f M ana g emen t). Composition of the Commissions  . Ex ec uti ve C omm itt ee: In de pend ent D ire ct or Mr . I gna c io M art ín S an V ic ent e j oi n s t he Com mit t ee Au dit C omm itt ee: T he B oard has ap poi nte d I nd epen den t Dire ct or Mr . D ona ld Joh nst on a s Cha irma n of th e Com mit tee . In dep end e nt D ire cto r Ms Mart a Mar t íne z Al on so al so jo in s t he Co m mitt ee.. Outlook. T he en d of the ye ar w il l s ee s eas ona l e ffe ct s an d t he ad ju stm ent in in ven tori es . T hes e fac tor s , cou ple d wit h t he lo wer ing of the al lo y sur char ge, the ex ce ss of mat eri al ava il abl e in A sia an d the pre ss ure o f im por ts, w il l aff ect pr ic e s a nd m arg in s i n a l l ma rke ts. Ne vert hel es s, th e a nnu al r esu lt s wi ll co nti nu e t o b e hig her tha n las t year ’s .. Page 12. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Macr oec ono mi c un cert ai nt ies a nd l ow er pr ice s of r a w mat eri al s w il l le ad to a dec li ne i n act iv it y i n t he fo urth qu art er ..

(14) Acerinox | Results as of 30 September 2018. Page 13. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. Main economic-financial figures.

(15) Acerinox | Results as of 30 September 2018. Alternative Performance Measures (definitions of terms used). Sa vin g r el atin g to th e Ex cell ence Pl an s: es ti mat e d s av ing o n e ff ic ien cy o n the ba si s of t hi s stu dy def in ed in ea ch P lan Op e rat in g Wo rk in g Cap it al: I nv ent ori es + Tr ade re cei va ble s – Tra de pa yab le s Net Ca sh F lo w: Re su lt s af ter t ax es and mi nor ity i nter est + d epre ci at ion an d am o rtiz at ion Net F in an cia l Deb t: D ebt wi th ban ks + bon d i ss uan c e - cas h Net F in an cia l Deb t / E BIT DA: N et F in an cia l De bt / a nnu a li ze d E BIT D A E BIT : Op erat in g i nc ome E BIT DA: Ope rat ing in co me + de pre cia ti on a nd a mort iza ti on + v ari at ion o f curr ent prov is io ns Deb t Ra tio : Ne t F ina nc ia l Deb t / Equ it y Net f in an cia l resu lt: F ina nci al in com e – fi nan ci al ex pen ses ± e xc han ge r ate v aria ti o ns RO C E: Oper at ing i nco me / (E qu ity + Ne t f in anc ia l d e bt) RO E: Re su lt s a fte r t axe s and min ori ty in ter est / E qu ity. Page 14. / 14. WorldReginfo - 9922603c-9c90-4087-8bfd-f893af768427. IC R (in te re st co ve rag e ra tio): E BIT /N et fin an ci al r e sul t.

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