Befesa Sa · XETR:BFSA

Befesa Sa — H1 2025 Earnings Presentation

29 slides from Befesa Sa's earnings presentation, Jul 30, 2025

  1. Slide 1: H1 2025 Earnings Presentation

    H1 2025 Earnings Presentation 30 July 2025

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements and information relating to Befesa and its affiliates that are based on the beliefs of its management, including assumptions, opinions and views of Befesa and its affiliates as well as information cited from third party sources. Such s

  3. Slide 3: Today's agenda

    Today’s agenda Business highlights Asier Zarraonandia Financial results Rafael Pérez Outlook and Growth Asier Zarraonandia Appendix & Investor Agenda Asier Zarraonandia Rafael Pérez Chief Executive Officer Chief Financial Officer 3

  4. Slide 4: Agenda

    Agenda Business highlights Financial results Outlook and growth Appendix & Investor’s agenda 4

  5. Slide 5: Solid H1 EBITDA up 9% YoY, expecting stronger H2 driven by significantly higher volume

    Solid H1 EBITDA up 9% YoY, expecting stronger H2 driven by significantly higher volume H1 2025 Financial Highlights Revenue -3%  Adj. EBITDA H1 2025 at €112m, up 9% YoY H1 2025: €602m  EBITDA margin improved to 19% in Q2 2025 vs 16% in Q2 2024 €621m in H1 2024  Leverage reduced to x2.7 in June 20

  6. Slide 6: H1 2025 Steel Dust business highlights

    H1 2025 Steel Dust business highlights Lower volume in general, driven by annual maintenance shutdowns in the period EUROPE USA ASIA  Steel production in EU continued at 5-year low  Lower utilization levels in the recycling  Volumes in Turkey impacted by in Q2’25, level in H1 caused by weak end-m

  7. Slide 7: H1 2025 Aluminium business highlights

    H1 2025 Aluminium business highlights Solid Salt Slags performance partially offset by continued compressed alu metal margin Salt Slags recycling 2nd aluminium Highlights  Solid performance of the salt slag recycling plants  Continued compressed aluminium metal margin running in line with previous

  8. Slide 8: Agenda

    Agenda Business highlights Financial results Outlook and growth Appendix & Investor’s agenda 8

  9. Slide 9: Steel Dust Recycling Services Financials

    Steel Dust Recycling Services Financials Favourable TC and zinc hedging, partially offset by lower volumes EBITDA H1 2024 to H1 2025 (€m) H1 2024 H1 2025 YoY change (%) +15 / +19% 96 Revenue €m 404.7 388.5 -4% -1 Adjusted EBITDA €m 80.9 96.3 +19% 81 23 Adjusted EBITDA -7 % 20.0 24.8 +5% General infl

  10. Slide 10: Aluminium Salt Slags Recycling Services Financials

    Aluminium Salt Slags Recycling Services Financials H1 2025 EBITDA impacted by lower alu metal margin and higher operating costs and energy prices EBITDA H1 2024 to H1 2025 (€m) H1 2024 H1 2025 YoY change (%) Revenue¹ 218.7 216.3 -1% -4 / -18% - Salt Slags €m 54.0 57.3 +6% 22 - Secondary Alu 192.4 18

  11. Slide 11: Zinc TC settled at $80/t for 2025; Zinc LME price shows volatility

    Zinc TC settled at $80/t for 2025 (vs $165/t in 2024) marking an all- time low; Zinc LME price shows volatility caused by global macro turmoil Peak: $300 Oct 24 (2008 & 2020) 3,237 H1 average: May 24 $2,739/t 3,093 30Jun25: $2,764/t Contract TCs TC announcement 2,516 $143 Q1’25 average: Q2’25 averag

  12. Slide 12: Zinc price hedging extended until Jan 2027 at all-time high level of €2,655

    Zinc price hedging extended until Jan 2027 at all-time high level of 1 Befesa’s hedging strategy unchanged €2,655. Next hedging Q1 2027 • 1-3 years forward • Targeting 60% - 75% of zinc equivalent • Befesa provides no collateral Zinc LME1 €2,549 €2,640 €2,425 2 Befesa’s hedging strategy has proven s

  13. Slide 13: Coke price continues gradual downward trend in Q2 2025; electricity and gas normalize

    Coke price continues gradual downward trend in Q2 2025; Electricity and gas prices have experienced a normalization in Q2 2025 Coke  Coke price at 163€/t in Q2 2025, consolidates its Befesa’s energy price evolution by source downward trend compared to previous quarters 2019/20 2021 2022 2023 2024 2

  14. Slide 14: EBITDA to Cash Flow

    EBITDA to Cash Flow Operating Cash Flow in H1’25 at €64m. Cash on hand at Jun25 amounted to €96.5m. Adjusted EBITDA to Total cash flow in H1 2025 (€ million) 112 Total capex = €37m -36 -12 64 -21 -16 -34 -6 1 2 Adj EBITDA WC Change Taxes Operating CF Maintenance Capex Growth Capex Bank borrowings To

  15. Slide 15: Deleveraging trend continued to x2.7, driven by disciplined capital allocation strategy

    Deleveraging trend continued to x2.7, driven by disciplined capital allocation strategy 6TH Consecutive quarter of leverage reduction Capital structure Net Debt / EBITDA • Senior Secured TLB of €650m x3.4 x3.3 • Refinanced in July 2024 • Maturity in July 2029 • Repriced in March to E+225 bps (50 bps

  16. Slide 16: Agenda

    Agenda Business highlights Financial results Outlook and growth Appendix & Investor’s agenda 16

  17. Slide 17: Befesa confirms its growth outlook for 2025 underpinned by stronger H2

    Befesa confirms its growth outlook for 2025 underpin by stronger operational performance in H2 Commentary 2025 Outlook  Europe: strong volume expected in H2, despite current challenging steel industry driven by high inventory levels Steel dust volume  USA: higher EAF steel dust volume driven by vo

  18. Slide 18: 2025 EBITDA expected between €240m and €265m

    2025 EBITDA expected between €240m and €265m Strong increase in EPS. Leverage <x2.5 • Double-digit EBITDA growth driven by overall better TC, hedging, FY24A 2025 Guidance volume and operating cost • Strong cash generation remains a key priority, with continued EBITDA €213m €240m - €265m improvement

  19. Slide 19: Palmerton plant refurbishment progressing well to seize growth in US EAF steel dust

    Palmerton plant refurbishment progressing well to seize growth in the US EAF steel dust market Plant overview Calumet,  2 kilns with c. 163 kt  c.220 kt (post-refurbishment) EAF Illinois Palmerton, steel dust recycling capacity Pennsylvania  Producing WOX as a marketable product Indicative timing

  20. Slide 20: Bernburg expansion: Moving forward with permits and commercial contracts

    Bernburg expansion: Moving forward with permits and commercial contracts Plant overview Bernburg, Germany  Expand alu alloy production capacity at existing Bernburg plant from current 75 kt to 135 kt (+60 kt) • 2 rotary furnaces (and 2 holding furnaces)  Total Befesa 2nd Alu capacity from 205 kt t

  21. Slide 21: Agenda

    Agenda Business highlights Financial results Outlook and growth Appendix & Investor’s agenda 21

  22. Slide 22: Key financials H1 2025

    Key financials H1 2025 H1 2025 H1 2024 Change Q2 2025 Q2 2024 Change Key operational data (tonnes, unless specified otherwise) Electric arc furnace (EAF) steel dust throughput 550,289 609,532 (9.7) % 273,102 306,418 (10.9) % Waelz oxide (WOX) sold 184,981 200,058 (7.5) % 94,731 100,060 (5.3) % Salt

  23. Slide 23: Steel Dust at a glance

    Steel Dust at a glance H1 2025 H1 2024 Change Q2 2025 Q2 2024 Change Key operational data (tonnes, unless specified otherwise) EAF steel dust throughput 550,289 609,532 (9.7) % 273,102 306,418 (10.9) % WOX sold 184,981 200,058 (7.5) % 94,731 100,060 (5.3) % Zinc blended price (€ / tonne) 2,565 2,498

  24. Slide 24: Aluminium Salt Slags Recycling Services at a glance

    Aluminium Salt Slags Recycling Services at a glance H1 2025 H1 2024 Change Q2 2025 Q2 2024 Change Key operational data (tonnes, unless specified otherwise) Salt slags and SPL recycled 212,884 220,647 (3.5) % 105,559 109,386 (3.5) % Total installed capacity 470,000 470,000 - 470,000 470,000 - Utilisa

  25. Slide 25: 2nd Aluminium Recycling Services at a glance

    2nd Aluminium Recycling Services at a glance H1 2025 H1 2024 Change Q2 2025 Q2 2024 Change Key operational data (tonnes, unless specified otherwise) Secondary aluminium alloys produced 82,958 90,553 (8.4) % 40,068 46,206 (13.3) % Aluminium alloy FMB price (€ / tonne) 2,420 2,327 4.0 % 2,424 2,376 2.

  26. Slide 26: Investor's agenda

    Investor’s agenda Investor conferences Remaining conferences Financial Calendar Q3 2025 2025 Preliminary Year-End Results 2024 & CoBa & ODDO BHF 16th Corporate Conference GS Global Metals and Mining Conference 2025 Conference Call 2025 14-15 October – London 27 February 2025 3-4 September – Frankfur

  27. Slide 27: Befesa has adjusted and adapted its business plan to temporary macroeconomic challenges

    Befesa has adjusted and adapted its business plan to the temporary macroeconomic challenges CMD Nov 2022 Today Outlook Capex  Total capex: €410-450m  20% invested, €87m: US refining and Recytech  30%: Europe steel dust & salt slags, €120-140m  20% being invested, €90m: Palmerton & Bernburg  30%

  28. Slide 28: Sustainability at the core of Befesa

    Sustainability at the core of Befesa Strong execution against targets and plans in 2024 Climate Action Plan CO2e intensity (Tn CO2e / Tn input)  20% CO2e intensity reduction by 2030, Net Zero by 2050 ambition  11% intensity reduction in 2024 vs. 2023 -20% 2024 Metrics 0.56 0.56 0.55 0,49  Publish

  29. Slide 29: BEFESA

    BEFESA

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