Befesa Sa · XETR:BFSA
Befesa Sa — Merger or Acquisition (June 2021)
13 slides from Befesa Sa's merger presentation, Jun 16, 2021
Slide 1: BEFESA to acquire AZR, creating a global leader in EAFD recycling
BEFESA to acquire creating a global leader in EAFD recycling June 2021
Slide 2: Transaction highlights
Transaction highlights • Today, 16 June 2021, Befesa signed the acquisition of 100% of American Zinc Recycling (AZR)’s recycling assets for a purchase price of $450m – implying an attractive c. 6x post near-term synergies EBITDA acquisition multiple, about half of Befesa’s current 2021E trading mult
Slide 3: Acquiring 100% of recycling assets upfront; add-on option for zinc refining plant
Acquiring 100% of recycling assets upfront; incremental add-on option for new zinc refining plant (ramping up) AZR is one of the largest EAFD recycler in North America1) with 4 plants with c. 620kt total capacity EAFD recycling assets Zinc refining 1 Barnwell, SC 2 Rockwood, TN 5 Rutherford County,
Slide 4: Decarbonization driving further growth of EAF steel production in the US
Decarbonization driving further growth of EAF steel production in the US EAF method expected to grow further to >70% share by 2025 Crude steel production by process in the US, % share 37% 29% 28% BOF • US has one of the largest and growing markets of EAF steelmakers globally EAF 63% 71% 72% • EAF is
Slide 5: A global leader in EAFD recycling
A global leader1) in EAFD recycling BEFESA #1 US / North America (Steel Dust) #1 Europe (Steel Dust & Salt Slags) #1 Asia1) (Steel Dust) EAFD recycling EAFD recycling Zinc refining EAFD annual installed recycling capacity1) 2), kt 1.665 1.045 1.020 620 230 200 200 180 180 120 87 60 35 35 BEFESA BEFE
Slide 6: Attractive acquisition multiple with additional upside potential – 2021E pro forma view
Attractive acquisition multiple with additional upside potential – 2021E pro forma view1) BEFESA (Steel Dust – current perimeter) (Recycling operations) 2) Further EBITDA8), €m 138 mid-term potential 62 45 3) 17 4) 2021E 2021E PF Near-term 2021E PF mid-point pre near-term synergies post near-term sy
Slide 7: Strong near- & mid-term synergy potential identified
Strong near– & mid– term synergy potential identified Total pre-tax near-term synergies of c. $20/€17m expected within first three years of combination (Recycling operations) EBITDA / ton throughput Up to Near-term synergies c. €185/t of c. $20m / €17m c. 35% mid-term efficiency potential €138/t €10
Slide 8: Leverage-neutral transaction with expected strong double-digit EPS accretion
Leverage–neutral transaction with expected strong double–digit EPS accretion1) Funding of transaction (at closing) Financial profile – 2021E Combined Pro Forma3) Total price, $m EBITDA, €m 2) Mid-point of 450 10 460 €165 to €190m 2021E guidance 240 62 178 Price for Price for Zinc Total BEFESA Befesa
Slide 9: Diversifying the highest margin business unit and improving overall profitability
Diversifying the highest margin business unit and further improving Befesa’s overall profitability EAFD recycling capacity1) EBITDA by segment c. 1,665kt c. €240m4) 2nd Alu 6% Salt Slags 10% US 620 €178m3) 1,045kt2) 8% 14% 550 Asia 550 84% Steel Dust 78% 495 Europe 495 BEFESA Befesa BEFESA Befesa+AZ
Slide 10: AZR's zinc refining asset: strategic integration opportunity
AZR’s zinc refining asset: strategic integration opportunity to support EAFD recycling operations in the US Plant footprint • Close proximity to AZR recycling plants, at Rutherford County, NC • Applies new solvent extraction technology for zinc refining • Restarted operations in 2020; Ramping up; Ca
Slide 11: Secured option to acquire AZR's zinc refining asset upon milestones
Secured option to acquire AZR’s zinc refining asset only upon fulfilling operational & financial performance milestones Payment schedule to acquire AZR’s zinc refining asset1), $m $135m for remaining 93.1% stake in AZR’s zinc refining asset: • Only upon fulfillment of 2-phased operational and financ
Slide 12: The acquisition represents a key step on Befesa's accelerated growth path
The acquisition of AZR’s recycling business represents a key step on Befesa’s accelerated growth path … 2007 2017 2021E PF European leader1) European & European & Asian in EAFD recycling Asian leader1) & North American = a global leader1) 37% 37% 33% Befesa’s EAFD 495kt 780kt c. 1,665kt recycling ca
Slide 13: Disclaimer
Disclaimer This presentation and the information contained herein (unless otherwise indicated) has been prepared by Befesa S.A. (Befesa) solely for informational purposes. This presentation contains forward looking statements and information relating to Befesa and its affiliates that are based on th