Slide 1: Fiscal Year 2015 Earnings Presentation
BEFESA BEFESA Fiscal Year 2015 Earnings Presentation 25th February 2016
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 2015 Highlights
BEFESA Befesa 2015 Highlights 2015 revenues of €744 million, up 14% YoY. Lower commodity prices, new Bernburg plant and Solarca acquisition. Solid consolidated 2015 EBITDA of €144 million, up 3% YoY. Margin at 19%. Solid and stable financing position. Continuing leverage improvement to current x3,8
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 Volume in crude steel in line with the expectations slightly below to the previous year Operational Performance EAF Throughput Highlights - 150.763 tons of crude steel dust treated in 4Q Crude steel dust deliveries in line with 2015 (-3,4% vs 4Q 2014); 580.253 to
Slide 8: Zinc Prices & Hedging
BEFESA Zinc Prices & Hedging After the upward trend seen during 1H 2015 Zinc prices strongly decreased during 2H ending the year around 1.400-1.450 €/t 2.200 € 2012: 2013: 1Q 2014: €1.703/t €1.700/t €1.550/t Zinc Prices 2.000 € During the 4Q 2015 zinc prices traded on average below 4Q 2014 ($1.613
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 Good performance mainly driven by stronger secondary alu volumes as well as salt slag volumes mainly driven by new plant in Germany Operational Performance Salt Slag/SPLs Recycled Highlights - 115.784 tons of salt slag/SPL recycled in 4Q 2015 Strong secondary aluminum
Slide 11: 2015 Growth Strategy – Aluminum and IES
BEFESA 2015 Growth Strategy – Aluminum and IES Bernburg ramp up completed. Acquisition and integration of Solarca into our IES segment completed. Gulf Project Progressing Aluminum Growth New Secondary Aluminum Plant in Bernburg (Germany) Ramp up of the plant successfully completed SPL in the Persi
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 Crude steel segment EBITDA decreased YoY mainly due to lower WOX sales Revenues Highlights Crude Steel Revenues (€m) During 4Q the revenues dropped by 15 million due 2014 2015 to lower tons (-4%) and specially for the lower zinc prices (-18%) 200,8 On a fu
Slide 15: Stainless Steel Financial Highlights
BEFESA Stainless Steel Financial Highlights Good quarter for stainless steel mainly driven by recovered level of volumes partially offset by lower prices Stainless Revenues (€m) 2014 2015 Revenues Highlights Compared to 2014, Stainless steel segment revenues worsened by 6% specially driven by 47,0
Slide 16: Consolidated Zinc Financial Highlights
BEFESA Consolidated Zinc Financial Highlights Decrease in revenues and EBITDA in the Zinc business unit driven by lower commodity prices Zinc Revenues (€m) 262,2 253,9 75,0 58,7 4Q '14 vs '15 FY '14 vs '15 Zinc EBITDA (€m) 39% 21% 35% 32% 92,5 80,0 29,1 12,3 4Q '14 vs '15 FY '14 vs '15 % 2014 EBITDA
Slide 17: Zinc Cash Flow & Liquidity
BEFESA Zinc Cash Flow & Liquidity Good operating results drive cash flow generation Operating activities: During 2015 the net cash flows generated by operating activities amounted to €35,0 million (a €13m decrease vs 2014), explained by the EBITDA decrease during the year. Investing activities:
Slide 18: Aluminum Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Aluminum Financial Highlights 18
Slide 19: Aluminum Financial Highlights
BEFESA Aluminum Financial Highlights Strong 4Q 2015 EBITDA of €12m (15% margin) driven mainly by Bernburg contribution Aluminum Revenues (€m) 2014 2015 Revenues Highlights During 4Q 2015 revenues stayed flat (compared to same period of 2014) mainly driven by better secondary 357,4 aluminum alloys
Slide 20: IES Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook IES Financial Highlights 20
Slide 21: IES Financial Highlights
BEFESA IES Financial Highlights Strong quarter driven by contribution from Solarca, successfully acquired in April and integrated during 2015 IES Revenues (€m) 2014 2015 Revenues Highlights During 4Q 2015 revenues increased by 10% 131,9 (compared to 2014) and improved by 20% on full year 109,7 bas
Slide 22: Consolidated Non-Zinc Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Consolidated Non-Zinc Financial Highlights 22
Slide 23: Consolidated Non-Zinc Financial Highlights
BEFESA Consolidated Non-Zinc Financial Highlights Strong growth in revenues and EBITDA in the non-Zinc business Non-Zinc Revenues (€m) 489,6 388,9 109,8 113,5 4Q '14 vs '15 FY '14 vs '15 Non-Zinc EBITDA (€m) 14% 15% 12% 13% 64,1 47,8 15,7 16,5 4Q '14 vs '15 FY '14 vs '15 % 2014 EBITDA margin % 2015
Slide 24: Consolidated Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Consolidated Financial Highlights 24
Slide 25: Consolidated Financial Highlights
BEFESA Consolidated Financial Highlights 2015 revenues up 14% and EBITDA up 3% vs. 2014 Revenues (€m) Highlights 743,5 M€ 651,2 M€ 2015 consolidated revenues amounted to 17% 17% €744 million, +14% growth compared to 181,6 M€ 172,2 M€ 43% 49% 2014, mainly driven by Bernburg (since Dec 16% 41% 17% 5
Slide 26: Consolidated P&L
BEFESA Consolidated P&L 2015 EBITDA Up 3% or €4 million vs. 2014 Consolidated P&L (‘000 euros) BEFESA Profit & Loss Statement ('000 euros) 4Q 2014 4Q 2015 Change FY 2014 FY 2015 Change Revenue 181.562 172.227 (9.335) 651.193 743.504 92.311 EBITDA 44.832 28.753 (16.079) 140.405 144.183 3.778 Deprecia
Slide 27: Consolidated Cash Flow Statement
BEFESA Consolidated Cash Flow Statement Operating activities: During 2015 the net cash flows generated by operating activities amounted to €53,6 million (a €7,7 million decrease compared to 2014), mainly due to the higher payment of the PIK Interest in 2015 (€14,7m vs €9,5m in 2014). Investing a
Slide 28: Debt Structure & Net Debt Position – Dec YTD 2015
BEFESA Debt Structure & Net Debt Position – Dec YTD 2015 Solid and stable financing position at 3 levels (Zinc, Non-Zinc and Corporate) with total leverage at x3,8 Net Debt / Total Net Dec 2015 EBITDA PIK Note 162 M€ Debt(1) 553 M€ x3,8(2) Befesa Medio Ambiente Ring fence structure Zinc Non Zinc Per
Slide 29: Outlook
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Javier Molina Chief Executive Officer 29
Slide 30: 2016 Business Focus
BEFESA 2016 Business Focus Main priorities for 2016 - focus on parallel path of profitable growth for the next years and operational excellence Main priorities for 2016 • Preserve the cash position by managing properly the operating cash flows, working capital and capex • Ensure we maintain our lead
Slide 31: Questions
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Questions 31
Slide 32: Appendix
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook 32
Slide 33: Consolidated P&L
BEFESA Consolidated P&L BEFESA Profit & Loss Statement ('000 euros) 4Q 2014 4Q 2015 Change FY 2014 FY 2015 Change From continuing operations: Revenue 181.562 172.227 (9.335) 651.193 743.504 92.311 +/- Changes in inventories of finished goods and work in progress (4.149) 4.202 8.351 (6.625) 2.591 9.2
Slide 34: Consolidated Balance Sheet
BEFESA Consolidated Balance Sheet BEFESA Balance Sheet ('000 euros) Assets 31.12.15 31.12.14 Equity and liabilities 31.12.15 31.12.14 Equity: Non-current assets Attibutable to owners of the parent - Intangible assets Share capital 13 13 Goodwill 379.990 373.860 Reserve for valuation adjustments defe
Slide 35: Consolidated Cash Flow Statement
BEFESA BEFESA Consolidated Cash Flow Statement Cash Flow Statement ('000) 4Q 2014 4Q 2015 Change 2014 2015 Change Cash flows from operating activities: Profit (loss) for the period before tax 14.431 (55.647) (70.078) 32.520 (20.594) (53.114) Adjustments due to: Depreciation and amortisation charge 1
Slide 36: Zinc Detailed Balance Sheet
BEFESA Zinc Detailed Balance Sheet BEFESA ZINC Balance Sheet ('000 Euros) Assets 31.12.2015 31.12.2014 Equity and Liabilities 31.12.2015 31.12.2014 Non-Current Assets: Equity: Intangible assets: Of the Parent: Goodwill 278.357 286.287 Share capital 25.010 25.010 Unrealized Asset and Liability Revalu
Slide 37: Zinc Detailed P&L
BEFESA Zinc Detailed P&L BEFESA ZINC Profit & Loss Statement ('000 euros) 4Q 2014 4Q 2015 Change FY 2014 FY 2015 Change Revenue 74.971 58.738 (16.233) 262.156 253.865 (8.291) Cost of sales (43.695) (44.174) (479) (157.257) (156.868) 389 Other operating income 4.732 1.616 (3.116) 10.804 5.534 (5.270)
Slide 38: Zinc Detailed Cash Flow
BEFESA Zinc Detailed Cash Flow BEFESA ZINC Cash Flow Statement ('000 euros) 4Q 2014 4Q 2015 Change FY 2014 FY 2015 Change Cash Flows From Operating Activities Profit for the period before tax 13.030 (14.701) (27.731) 39.135 16.109 (23.026) Adjustments due to: Amortization/ Depreciation 4.096 5.707 1