Slide 1: FY 2014 Earnings Presentation
BEFESA BEFESA FY 2014 Earnings Presentation 26th February 2015
Slide 2: Forward-looking Statement
BEFESA Forward-looking Statement This presentation contains forward-looking statements and information relating to Befesa and its affiliates that are based on the beliefs of its management as well as assumptions made and information currently available to Befesa and its affiliates. Such statements r
Slide 3: Introduction
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Rafael Pérez Head of Strategy & Investor Relations 3
Slide 4: Business Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Javier Molina Chief Executive Officer 4
Slide 5: Befesa 2014 Highlights
BEFESA Befesa 2014 Highlights Annual revenues of €651 million, Up 4% compared to 2013. Higher volumes in steel and secondary aluminum Strong Annual EBITDA of €140 million, up 16% YoY. Margins at 21,6% above 19,2% of 2013. Cost savings and new South Korea plant Solid and stable financing position at
Slide 6: Zinc Business Performance
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Asier Zarraonandia Managing Director of Zinc Business 6
Slide 7: Zinc Business Performance
BEFESA Zinc Business Performance Strong performance in crude steel in 2014 with growth in volumes. South Korean plant delivering at full capacity. Still weak stainless steel. Operational Performance EAF Throughput Highlights - 156.084 tons of crude steel dust treated in 4Q Crude steel dust deliverie
Slide 8: Zinc Prices & Hedging
BEFESA Zinc Prices & Hedging Zinc prices during the 4Q 2014 maintained the upward trend seen during 2014 ending the quarter close to 1.800 €/t 2.200 2012: 2013: 1.703 €/t 1.700 €/t 1Q 2014: 2Q 2014: Zinc Prices 2.000 1.550 €/t 1.500 €/t During the 4Q 2014 zinc prices traded above 2013 on average 1.8
Slide 9: Non-Zinc Business Performance
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Javier Molina Chief Executive Officer 9
Slide 10: Aluminum Performance
BEFESA Aluminum Performance Alu performance mainly driven by stronger secondary aluminum volumes while salt slag volumes remains in line with previous year Operational Performance Salt Slag/SPLs Recycled Highlights - 120.660 tons of salt slag/SPL recycled in 4Q 2014 Strong secondary aluminum volumes
Slide 11: 2014 Growth Strategy – Aluminum and IES
BEFESA 2014 Growth Strategy – Aluminum and IES Bernburg Plant started operational production in early December. Persian Gulf Project Progressing … Starting Detailed Engineering. Bernburg Construction of the plant finalized as planned, cold and hot commissioning successfully carried out Operational p
Slide 12: Financials
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Wolf Lehmann Chief Financial Officer 12
Slide 13: Zinc Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Zinc Financial Highlights 13
Slide 14: Crude Steel Financial Highlights
BEFESA Crude Steel Financial Highlights Strong crude steel segment 4Q EBITDA fueled by significant increase in zinc prices and operations in South Korea plant 4Q Highlights Y-o-Y Crude Steel Revenues (€m) 2013 2014 Crude steel dust segment revenues increased by 14% and EBITDA by 26% in 4Q YoY. Main
Slide 15: Stainless Steel Financial Highlights
BEFESA Stainless Steel Financial Highlights Positive stainless steel quarter mainly driven by higher volumes and cost saving measures despite stainless market still depressed Stainless Revenues (€m) Revenues Highlights 2013 2014 During 4Q 2014 Stainless steel dust segment revenues increased by 6% co
Slide 16: Zinc Cash Flow & Liquidity
BEFESA Zinc Cash Flow & Liquidity Cash flow generation influenced by the results of the operations Operating activities: During 2014 the net cash flows generated by operating activities amounted to €48,2 million (a €25,0 million increase compared to 2013), mainly driven by higher volumes of WOX sold
Slide 17: Aluminum Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Aluminum Financial Highlights 17
Slide 18: Aluminum Financial Highlights
BEFESA Aluminum Financial Highlights Strong 2014 EBITDA of €30m (11% margin) driven mainly by cost savings initiatives and Alu volumes and prices Aluminum Revenues (€m) 2013 2014 Revenues Highlights 281,2 262,4 During 4Q 2014 revenues increased 21% mainly driven by higher aluminum prices (+24%), str
Slide 19: IES Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook IES Financial Highlights 19
Slide 20: IES Financial Highlights
BEFESA IES Financial Highlights Cost saving measures lead to higher EBITDA and Margin than previous year, despite still slow industrial environment IES Revenues (€m) 2013 2014 Revenues Highlights Lower volumes in residues treated in Spain and Latin America. Slightly higher volumes in Sulfur segment
Slide 21: Consolidated Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Consolidated Financial Highlights 21
Slide 22: Consolidated Financial Highlights
BEFESA Consolidated Financial Highlights Strong EBITDA growth and margin improvement in 4Q 2014 reflects the positive impact of cost management and higher Zinc / Alu prices Revenues (€m) Highlights 628,7 M€ 651,2 M€** 17% 17% 4Q 2014 consolidated revenues amounted 159,8 M€ 181,6 M€ 42% 43% to €182 m
Slide 23: Consolidated P&L
BEFESA Consolidated P&L 4Q 2014 EBITDA Up 30% or €10 million vs. 2013 … Net Income Up 145% or €27 million Consolidated P&L (‘000 euros) BEFESA Profit & Loss Statement ('000 euros) 4Q 2013 4Q 2014 Change FY 2013 FY 2014 Change Revenue 159.826 181.562 21.736 628.655 651.193 22.538 EBITDA 34.595 44.832
Slide 24: Consolidated Cash Flow Statement
BEFESA Consolidated Cash Flow Statement Operating activities: During 2014 the net cash flows generated by operating activities amounted to €61,3 million (a €147,3 million increase compared to 2013), mainly due to better performance of the working capital, the reduction in the taxes paid and the stro
Slide 25: Debt Structure & Net Debt Position – Dec YTD 2014
BEFESA Debt Structure & Net Debt Position – Dec YTD 2014 Solid and stable financing position at 3 levels (Zinc, Non-Zinc and Corporate) with total leverage at x4,4 Net Debt / LTM Vendor Note 50 M€ Total Net Dec 2014 EBITDA PIK Note 160 M€ Debt(1) 618 M€ x4,4(2) Befesa Medio Ambiente Ring fence struc
Slide 26: Outlook
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Javier Molina Chief Executive Officer 26
Slide 27: 2015 Business Focus
BEFESA 2015 Business Focus Main priorities for 2015 focused on parallel path of operational excellence and profitable growth for the next years Main priorities for 2015 • Expand plant and maintain leadership position of Befesa Zinc in South Korea, a key market for Befesa • Deliver our new secondary
Slide 28: Questions
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Questions 28
Slide 29: Appendix
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook 29
Slide 30: Consolidated P&L
BEFESA Consolidated P&L BEFESA Profit & Loss Statement ('000 euros) 4Q 2013 4Q 2014 Change FY 2013 FY 2014 Change From continuing operations: Revenue 159.826 181.562 21.736 628.655 651.193 22.538 +/- Changes in inventories of finished goods and work in progress (2.159) (4.149) (1.990) 5.103 (6.625)
Slide 31: Consolidated Balance Sheet
BEFESA Consolidated Balance Sheet BEFESA Balance Sheet ('000 euros) Assets 31.12.14 31.12.13 Equity and liabilities 31.12.14 31.12.13 Equity: Non-current assets Attibutable to owners of the parent - Intangible assets Share capital 13 13 Goodwill 373.860 373.860 Reserve for valuation adjustments defe
Slide 32: Consolidated Cash Flow Statement
BEFESA Consolidated Cash Flow Statement BEFESA Cash Flow Statement ('000) 4Q 2013 4Q 2014 Change 2013 2014 Change Cash flows from operating activities: Profit (loss) for the period before tax (27.265) 14.432 41.697 (6.542) 32.520 39.062 Adjustments due to: Depreciation and amortisation charge 12.685
Slide 33: Zinc Detailed Balance Sheet
BEFESA Zinc Detailed Balance Sheet BEFESA ZINC Balance Sheet ('000 Euros) Assets 31.12.2014 31.12.2013 Equity and Liabilities 31.12.2014 31.12.2013 Non-Current Assets: Equity: Intangible assets: Of the Parent: Goodwill 286.287 286.287 Share capital 25.010 25.010 Other intangible assets 6.973 8.818 U
Slide 34: Zinc Detailed P&L
BEFESA Zinc Detailed P&L BEFESA ZINC Profit & Loss Statement ('000 euros) 4Q 2013 4Q 2014 Change FY 2013 FY 2014 Change Revenue 67.080 74.971 7.891 253.181 262.156 8.975 Cost of sales (40.644) (43.695) (3.051) (159.036) (157.257) 1.779 Other operating income 957 4.732 3.775 5.007 10.804 5.797 Gross
Slide 35: Zinc Detailed Cash Flow
BEFESA Zinc Detailed Cash Flow BEFESA ZINC Cash Flow Statement ('000 euros) 4Q 2013 4Q 2014 Change FY 2013 FY 2014 Change Cash Flows From Operating Activities Profit for the period before tax (11.767) 13.030 24.797 10.683 39.135 28.452 Adjustments due to: Amortization/ Depreciation 4.408 4.096 (312)