Befesa Sa · XETR:BFSA
Befesa Sa — Befesa Zinc — Q3 2011 Earnings Presentation
22 slides from Befesa Sa's earnings presentation, Nov 22, 2011
Slide 1: Reporting of Q3 2011 Results
BEFESA ZINC Innovative Technology Solutions for Sustainability BEFESA ZINC Reporting of Q3 2011 Results 22nd November 2011
Slide 2: Forward-looking Statement
BEFESA ZINC Forward-looking Statement This presentation contains forward-looking statements and information relating to Befesa Zinc that are based on the beliefs of its management as well as assumptions made and information currently available to Befesa Zinc. Such statements reflect the current view
Slide 3: Agenda
BEFESA ZINC Agenda 1 Q3 Business Highlights 2 Q3 Financial Highlights 3 Summary and Outlook 4 Appendix 3
Slide 4: Q3 2011 Highlights
BEFESA ZINC Q3 2011 Highlights Despite challenging macro economic conditions, Befesa Zinc shows resilience delivering solid financial results Revenues of €63,9 M (+ 23% Y-o-Y) Strong financial EBITDA of €19,4 M (+9% Y-o-Y) results Attributable Net income of €5,9 M (-32% Y-o-Y)* Ebitda Revenues Ebitd
Slide 5: Q3 2011 Highlights (cont'd)
BEFESA ZINC Q3 2011 Highlights (cont’d) Good results in line with expectations. We continue to deliver on our strategy Turkish plant consolidated for the 1st time with a contribution of in Q3 of: 65,000tn steel dust capacity, €2.3m revenues and €0.8m Ebitda Increase in operational performance of Tur
Slide 6: Zinc Prices
BEFESA ZINC Zinc Prices Hedging policy compensating for pressures in Zinc Prices* 3500 January 2012 2500 €1,700/t 1500 €1,560/t 500 ene-04 ene-05 ene-06 ene-07 ene-08 ene-09 ene-10 ene-11 ene-12 Zinc Price 2011 Hedged Price 2012-2013 Hedged Price Average Zinc Price in Q3 was €1,575 and Year-to-Date
Slide 7: Agenda
BEFESA ZINC Agenda 1 Q3 Business Highlights 2 Q3 Financial Highlights 3 Summary and Outlook 4 Appendix 7
Slide 8: Consolidated Figures
BEFESA ZINC Consolidated Figures Stable and solid performance despite economic turmoil LTM Ebitda reached €74.9m, representing an average LTM Ebitda Margin of 33.6% Net Debt is €216.1m, representing a Net Debt / LTM Ebitda ratio of 2.9x Revenues year-to-date Revenues by quarter €7.4m from €2.3m from
Slide 9: Steel Dust Segment
BEFESA ZINC Steel Dust Segment Strong performance in crude steel in line with expectations Excluding Turkey, volumes treated in Q3 were -1.1% Y-o-Y due to planned standstills Excluding Turkey, throughput YTD increased 4.5% Y-o-Y due to better performance of plants WOX sold YTD increased 10.2% Y-o-Y:
Slide 10: Stainless Steel Segment
BEFESA ZINC Stainless Steel Segment Despite the recent improvements, results lagging behind 2010 levels Revenues increased 41.2% Q-o-Q mainly due to increase of throughput by 65.0% Y-o-Y and more metal alloys sold Significant improvement in load factor Y-o-Y from 43.4% to current 69.5% Revenues year
Slide 11: Cash Flow & Liquidity
BEFESA ZINC Cash Flow & Liquidity Stable cash flow generation and strong liquidity position Operating activities: €384k increase vs 2010 due to increase in cash generated from operations and interests paid and received partly offset by the increase in the taxes in 2011 Investing activities: €7.5m in
Slide 12: Agenda
BEFESA ZINC Agenda 1 Q3 Business Highlights 2 Q3 Financial Highlights 3 Summary and Outlook 4 Appendix 12
Slide 13: Summary
BEFESA ZINC Summary Good results in line with expectations. We continue to deliver on our strategy Despite challenging macroeconomic conditions, Befesa Zinc has shown robust financial figures At current levels of steel production in Europe, load factors will not be affected Compared to Q3 2010, main
Slide 14: Outlook
BEFESA ZINC Outlook Positive outlook for Year End, in line with previous quarters Capex plan: – Graveline’s leaching facility scheduled for Q1 2012 – Zinc Sur scheduled for late 2013 – Bilbao’s leaching facility scheduled for late 2013 – Turkey expansion scheduled for beginning 2014 Steel production
Slide 15: Agenda
BEFESA ZINC Agenda 1 Q3 Business Highlights 2 Q3 Financial Highlights 3 Summary and Outlook 4 Appendix 15
Slide 16: Detailed Balance Sheet
BEFESA ZINC Detailed Balance Sheet Figures in € ‘000 Assets 30.09.2011 31.12.2010 Equity and Liabilities 30.09.2011 31.12.2010 Non-current assets: Equity: Intangible assets: Of the Parent: Goodwill 281,067 267,850 Share capital 25,010 25,010 Unrealised Asset and Liability Revaluation Other intangibl
Slide 17: Detailed Consolidated P&L
BEFESA ZINC Detailed Consolidated P&L 3Q2010 2010YTD 3Q2011 2011YTD Consolidated Income Statement Data Revenue 52,149 154,303 63,921 170,428 Cost of Sales (31,453) (91,693) (40,179) (101,858) Other operating income 623 2,309 772 2,870 Depreciation and amortization charges (3,349) (9,832) (3,255) (9,
Slide 18: Detailed Cash Flow
BEFESA ZINC Detailed Cash Flow 2011 2010 Figures in € ‘000 March June Sept Sept YTD March June Sept SeptYTD Cash Flows from Operating Activities Profit for the period before tax 13.791 9.318 10.915 34.024 12.409 14.232 12.811 39.452 Adjustments due to Amortization/ Depreciation 3.179 3.117 3.445 9.7
Slide 19: Detailed Segment Reporting
BEFESA ZINC Detailed Segment Reporting 3Q2010 2010YTD Figures in € ‘000 Revenue EBITDA EBITDA Margin Revenue EBITDA EBITDA Margin Steel dust 41,098 18,437 44.9% 119,297 52,841 44.3% Stainless steel 11,051 (577) -5.2% 35,006 1,588 4.5% Total 52,149 17,860 34.2% 154,303 54,429 35.3% 3Q2011 2011YTD Rev
Slide 20: Detailed Operational Data
BEFESA ZINC Detailed Operational Data Crude Steel Dust Period ended June 30 Third Quarter Period ended September 30 Proforma 2010 2011 % Var. 2010 2011 % Var. 2010 2011 %Var. (in Dry Metric Tons) (in Dry Metric Tons) (in Dry Metric Tons) Throughput crude steel dust 226,428.6 269,234.1 18.9% 122,453.
Slide 21: Detailed Operational Data
BEFESA ZINC Detailed Operational Data Crude Steel Dust Period ended June 30 Third Quarter Period ended September 30 Proforma 2010 2011 % Var. 2010 2011 % Var. 2010 2011 %Var. (in Dry Metric Tons) (in Dry Metric Tons) (in Dry Metric Tons) Throughput crude steel dust 226,428.6 269,234.1 18.9% 122,453.
Slide 22: Q&A
BEFESA ZINC Q&A 22