Slide 1: Business update post H1 Earnings
2023 Business update post H1 Earnings August 2023
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
Slide 3: Business update
01 Business update
Slide 4: Executive summary of H1 2023
Executive summary of H1 2023 Revenue Adjusted EBITDA Operating cash flow €615 million €95 million €42 million 8% yoy -20% yoy -34% yoy + US zinc refining operations — Lower zinc price — Lower earnings — Lower zinc and aluminium — Unfavourable zinc TC — Higher interests market prices — Higher coke pr
Slide 5: Total EBITDA decreased by 20% yoy to €95m in H1'23
Total EBITDA decreased by 20% yoy to €95m in H1’23, mainly due to lower zinc market prices Adjusted1 EBITDA bridge H1 2023 vs H1 2022 € million 118.0 -2 Lower EAFD throughput (US and -29 94.7 earthquake in Turkey) 7 -27 Lower zinc LME +7 Lower cost in alu +6 Higher zinc hedging prices -6 Higher coke
Slide 6: Aluminium Salt Slags benefited from favourable market while Steel Dust challenged
Aluminium Salt Slags benefited from favourable market environment while Steel Dust still challenged Crude steel production H1 2022 H1 2023 % vs prior year US EU China Turkey & S. Korea Global 1% -2% -1% -3% -4% -5% -5% -5% -6% -11% Car sales1 % vs prior year US EU China 18% 11% 11% -4% -14% -17% 1 S
Slide 7: Zinc LME prices have historically bounced off the 90th percentile cost curve
Zinc LME prices have historically bounced off the 90th percentile of the global cost curve • Zinc LME prices have historically rebounded strongly Zinc LME1 upon touching the C90 curve • Only during periods of strong economic stress, e.g., COVID- 19 pandemic, zinc traded below the C90 curve • Zinc cu
Slide 8: Coke price moderating; electricity & gas prices decreased further
Coke price has started to moderate in Q2; Electricity & gas prices decreased further Befesa’s energy price evolution by source Coke • After reaching an all-time-high 2019/20 2021 2022 H1 2023 level in Q1 2023, Befesa’s coke price started to moderate in Q2 (-3% versus Q1) 250 250 • However, H1 2023 a
Slide 9: Befesa's hedging strategy provides price visibility
Befesa’s hedging strategy provides price visibility and lowers impact from zinc price volatility • Befesa’s hedging strategy unchanged Zinc LME1 • 1—3 years forward • Targeting 60% to 75% of zinc equivalent volume • Befesa providing no collateral c. €2,650 • Befesa’s hedging strategy has Befesa’s c.
Slide 10: Cash flow, net debt & leverage
Cash flow, net debt & leverage Cash on hand at €143m providing >€200m liquidity; Net debt increased to €567m driven by lower earnings; Net leverage of x2.96 Adjusted EBITDA to Total cash flow in H1 2023 € million Total capex = €53m 94.7 Hanover -28.0 recovery and US operating No cash -13.4 excellenc
Slide 11: Decarbonisation driving EAF steel production in key markets
Decarbonisation driving EAF steel production in Befesa’s key markets EAF steel production 2022 2030e 200 Million tonnes 103 70 60 80 x2 56 x1.3 x1.3 % EAF share of total crude 69% >70% 40% >50% 10% 20% steel production • Significant infrastructure • Accelerating decarbonisation • #1 steel producer r
Slide 12: Well defined growth roadmap in execution towards 2027
Well defined growth roadmap in execution towards 2027 Steel Dust Indicative timing & progress Capex EBITDA Growth projects Alu Salt Slags 2023 2027e €m run-rate €m 1 Zinc refining €110—120 €35—45 2 Palmerton refurbishment 3 China III, 1st kiln Guangdong 4 China IV, 2nd kiln Jiangsu €115—125 €30—35 5
Slide 13: Palmerton plant refurbishment progressing well
2 Palmerton plant refurbishment progressing well to seize market growth in 2024/25 Plant overview Palmerton, Pennsylvania • 2 kilns with c. 163 kt → 220 kt (post- refurbishment) EAFD recycling capacity • Producing WOX as a marketable product Indicative timing and status Q1 2025 Other Befesa Demoliti
Slide 14: Preparing next EAFD recycling plant in Guangdong
3 Preparing Befesa’s next EAFD recycling plant in the province of Guangdong Plant overview • 1 kiln with 110 kt EAFD recycling capacity • Option for expansion on site: 2 additional kilns x 110 kt = +220 kt capacity Indicative timing and status Q1 2025 Yunfu, Guangdong Investment agreement signed Q1
Slide 15: Outlook for H2 2023: Overall expecting stronger H2 vs H1
Outlook for H2 2023: Overall expecting stronger H2 vs H1 Volume • European operations expected to continue at current solid levels • Turkish operations recovered after the earthquake in Q1 and are expected to continue delivering at usual levels in H2 • Hannover Aluminium Salt Slags plant fully rampe
Slide 16: Sustainable Global Growth Plan (SGGP), 2022-2027
02 Sustainable Global Growth Plan (SGGP), 2022-2027
Slide 17: Proven track record since IPO; Megatrends driving growth
Proven track record since IPO; Megatrends driving growth over next 5 years EBITDA €m +5% CAGR €160m growth capex + €380m AZR (Ex Zinc Refining) €215 Committed & delivered since IPO: ✓ Growth: Global #1 in Steel Dust €172 + + ✓ Dividend: > 50% net profit payout ✓ Conservative financial management: he
Slide 18: Decarbonisation driving EAF steel production in key markets
Decarbonisation driving EAF steel production in Befesa’s key markets EAF steel production 2022 2030e 200 Million tonnes 103 70 60 80 x2 56 x1.3 x1.3 % EAF share of total crude 69% >70% 40% >50% 10% 20% steel production • Significant infrastructure • Accelerating decarbonisation • #1 steel producer r
Slide 19: Well defined growth roadmap in execution towards 2027
Well defined growth roadmap in execution towards 2027 Steel Dust Indicative timing & progress Capex EBITDA Growth projects Alu Salt Slags 2023 2027e €m run-rate €m 1 Zinc refining €110—120 €35—45 2 Palmerton refurbishment 3 China III, 1st kiln Guangdong 4 China IV, 2nd kiln Jiangsu €115—125 €30—35 5
Slide 20: Megatrends and Befesa's approach by market
Megatrends and Befesa’s approach by market EAF steel production million tonnes, EAF % share of total steel production x2 x1.2 x1.2 200 70 64 67 >80 103 98 109 49 61 51 60 63 58 47 '15 '19 '20 '21 '30e '15 '19 '20 '21 '30e '15 '19 '20 '21 '30e 1 2 63% 70% 71% 69% c. 72% 41% 41% 41% 44% >50% 6% 10% 9%
Slide 21: Decarbonisation investments & Infrastructure Programme will support EAF growth
Decarbonisation investments & Infrastructure Programme will support EAF growth by 2030 c. $10—11 Bn capex equal to c. 13—14 Mt EAF announced; Plus, $1.2 T infrastructure plan requires more steel overall in the US → generating >300 kt incremental EAFD Overview of selected steelmakers € billion capex,
Slide 22: SGGP – Steel Dust – US
SGGP – Steel Dust – US EAFD generation in the US expected to increase >0.3 Mt by 2030; Befesa to fully utilise existing c. 620 kt annual installed capacity EAF steel production EAFD generation million tonnes, EAF % of total crude steel output million tonnes >0.3 x1.2 60 70 $1.2 T infrastructure plan
Slide 23: Zinc refining plant improving performance gradually
1 Zinc refining plant improving performance gradually since acquisition in September 2022 Plant overview • #1 producer of “green zinc” (SHG zinc), 100% from recycled materials (WOX) • 141 kt SHG zinc total capacity Rutherford County, • Plant size can process up to 220 kt WOX North Carolina from Befe
Slide 24: Palmerton plant refurbishment progressing well
2 Palmerton plant refurbishment progressing well to seize market growth in 2024/25 Plant overview Palmerton, Pennsylvania • 2 kilns with c. 163 kt → 220 kt (post- refurbishment) EAFD recycling capacity • Producing WOX as a marketable product Indicative timing and status Q1 2025 Other Befesa Demoliti
Slide 25: Megatrends and Befesa's approach by market
Megatrends and Befesa’s approach by market EAF steel production million tonnes, EAF % share of total steel production x2 x1.2 x1.2 200 70 64 67 >80 103 98 109 49 61 51 60 63 58 47 '15 '19 '20 '21 '30e '15 '19 '20 '21 '30e '15 '19 '20 '21 '30e 1 2 63% 70% 71% 69% c.72% 41% 41% 41% 44% >50% 6% 10% 9%
Slide 26: China: rapidly transitioning from BOF to EAF
Largest producer of steel, rapidly transitioning from BOF to EAF; a strong growth opportunity >60 Mt new EAF capacity announced, representing c.1 Mt EAFD incremental generation; Befesa strategically located in provinces with high EAFD generation Overview of selected steelmakers million tonnes of new
Slide 27: China: rapidly transitioning from BOF to EAF (continued)
Largest producer of steel, rapidly transitioning from BOF to EAF; a strong growth opportunity >60 Mt new EAF capacity announced, representing c. 1 Mt EAFD incremental generation; Befesa strategically located in provinces with high EAFD generation Overview of selected steelmakers million tonnes of ne
Slide 28: SGGP – Steel Dust – China
SGGP – Steel Dust – China EAFD generation in China expected to increase about 1.6 Mt by 2030 as it transitions from BOF to EAF; Befesa to add 3x 110 kt = 330 kt new capacity which will increase market share to 15—20% EAF steel production EAFD generation million tonnes, EAF % of total crude steel out
Slide 29: Preparing next EAFD recycling plant in Guangdong
3 Preparing Befesa’s next EAFD recycling plant in the province of Guangdong Plant overview • 1 kiln with 110 kt EAFD recycling capacity • Option for expansion on site: 2 additional kilns x 110 kt = +220 kt capacity Indicative timing and status Q1 2025 Yunfu, Guangdong Investment agreement signed Q1
Slide 30: Megatrends and Befesa's approach by market
Megatrends and Befesa’s approach by market EAF steel production million tonnes, EAF % share of total steel production x2 x1.2 x1.2 200 70 64 67 >80 103 98 109 49 61 51 60 63 58 47 '15 '19 '20 '21 '30e '15 '19 '20 '21 '30e '15 '19 '20 '21 '30e 1 2 63% 70% 71% 69% c.72% 41% 41% 41% 44% >50% 6% 10% 9%
Slide 31: Accelerating decarbonisation investments in EU support EAF share
Accelerating decarbonisation investments in EU will support EAF share growing to >50% by 2030 c. €14—15 Bn investments in new steel EAF projects in Europe announced; Representing c. 20—21 Mt incremental steel EAF capacity → generating c. 350 kt EAFD Overview of selected steelmakers € billion capex,
Slide 32: Adding new EAFD recycling capacity and WOX washing expansion
Adding new EAFD recycling capacity and WOX washing expansion c. €105—115m total investment; c. €30—35m total incremental EBITDA p.a.; Low-risk & high-return projects New EAFD recycling plant • Grow with EAFD addressable market and invest in a new 140—160 kt state-of-the-art EAFD plant • Construction
Slide 33: Aluminium Salt Slags Recycling – Decarbonisation drives transition to EV
Aluminium Salt Slags Recycling Services – Decarbonisation trend drives transition to EV Automotive industry switching from combustion to Electric Vehicles (EV) EV unit sales in Europe1 million units • EU approved plan to ban sales of vehicles with combustion engines (ICE) by 20352 x5 • EV unit sales
Slide 34: EV requiring higher aluminium content per car
EV requiring higher aluminium content per car to achieve light-weight targets Average aluminium content per vehicle1 net weight, kg per passenger car • Average aluminium content per vehicle +75 kg per car (passenger cars) has steadily been increasing, from 121 kg/car in 2006 to 193 kg/car in 2022 24
Slide 35: Driving higher aluminium demand and salt slags recycling needs
… driving higher aluminium demand with increased needs for 2nd alu & salt slags recycling Aluminium demand from Auto in Europe1 net weight, million tonnes • Automotive aluminium demand will continue to grow to address light-weighting needs +2 million tonnes alu demand • OEMs aim to reduce their carb
Slide 36: Expansion of 2nd Aluminium and New Salt Slags recycling plant
Expansion of 2nd Aluminium and New Salt Slags recycling plant Expansion of 2nd Aluminium New Salt Slags recycling plant • Expand 2nd aluminium production capacity • Invest in a new c. 120 kt state-of-the-art salt by c. 90 kt at existing site (Bernburg) slags recycling plant in line with incremental
Slide 37: Befesa can self-fund SGGP while keeping leverage c. x2.5
Befesa can self-fund SGGP while keeping leverage c. x2.5 and distributing dividends EBITDA to Cash flow management walk Illustrative conceptual annual view within SGGP period, €m +125 to +155 215 2022 WC change / Interests Taxes Op. cash Maintenance Growth Dividend Cash Flow EBITDA other flow PF cap
Slide 38: Diversifying Befesa's global footprint
Diversifying Befesa’s global footprint … 2017 IPO 2022 PF Post SGGP Capacity, kt 41% 30% 28% 32% 27% 63% 29% 40% +140 kt Zinc refining Steel Dust 780 1,555 2,1451 Salt Slags 2nd Alu 205 205 295 509 470 590 Total Alu / 3402 Salt Slags 714 675 / 5452 885 kt Utilisation Steel Dust 85% 77% c. 85% rates
Slide 39: Core-business focus drives portfolio growth
… core-business focus drives portfolio growth 2017 IPO 2022 PF Post SGGP Revenue, €m Total1 €725 €1,136 c. €1,650—1,800 Steel Dust incl. Zinc refining 730 332 Salt Slags 85 77 2nd Alu 353 376 EBITDA, % margin % margin % margin €m Total1 €172 24% €215 19% c. €340—370 19—23% Steel Dust - - incl. Zinc
Slide 40: Committing to growth through the cycle
Committing to growth through the cycle € € Strong financial backbone and high cash flow generation B … allows to self-fund SGGP €€ €€ € % € Targeting to continue dividend distribution at 40—50% of net profit Prudent risk and liquidity management; Modular SGGP growth initiatives timing in control of
Slide 41: Growth roadmap driving +€125—155m EBITDA growth
Well defined growth roadmap driving +€125—155m EBITDA growth, 8—10% CAGR, globally balanced c. €340—370m c. 8—10% CAGR +€45—55m +€45—55m +€35—45m ✓ China I & II ➢ China III (✓LOI) €215m • New EAFD plant • China IV • WOX washing expansion • China V ✓ Zinc refining • 2nd Alu expansion • Capacity utili
Slide 42: H1 2023 results
a ? _ 0 3 / Hi 2023 results
Slide 43: Consolidated key financials
Consolidated key financials Adjusted EBITDA decreased by 20% yoy to €95m in H1 2023, mainly due to lower zinc market prices Adjusted EBITDA bridge H1 2022 to H1 2023 (€m) -19.7% 118.0 -2 Lower EAFD throughput (US and -29 94.7 earthquake in Turkey) 7 -27 Lower zinc LME +7 Lower cost in alu +6 Higher
Slide 44: Steel Dust Recycling Services
Steel Dust Recycling Services Adjusted EBITDA decreased by 29% yoy to €67m in H1 2023, mainly due to lower zinc LME and minor volume decrease; Higher hedging prices offset by unfavourable zinc TC; Higher coke prices offset by productivity and synergies Adjusted EBITDA bridge H1 2022 to H1 2023 (€m)
Slide 45: Aluminium Salt Slags Recycling Services
Aluminium Salt Slags Recycling Services EBITDA increased by 17% yoy to €28m in H1 2023; Lower cost (mainly lower energy prices) partially offset by lower aluminium market prices EBITDA bridge H1 2022 to H1 2023 (€m) +17.0% 27.7 23.6 0 -3 7 Lower cost, Lower aluminium FMB mainly energy prices partial
Slide 46: Cash flow, net debt & leverage
Cash flow, net debt & leverage Cash on hand at €143m providing >€200m liquidity; Net debt increased to €567m driven by lower earnings; Net leverage of x2.96 Adjusted EBITDA to Total cash flow in H1 2023 € million Total capex = €53m 94.7 Hanover -28.0 recovery and US operating No cash -13.4 excellenc
Slide 47: Befesa overview
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Slide 48: Environmental services for the Steel & Alu industries
Environmental services for the Steel & Alu industries • 25 plants globally; >1,800 employees • #1 globally in Steel Dust Recycling and #1 in Europe Alu Salt Slags Recycling Services • €215m EBITDA in 2022; Earnings split: c. 80% Steel / 20% Alu services • Dividend distribution: 40-50% of net profit;
Slide 49: Befesa at a glance
Befesa at a glance Global leader in Europe, the US and Asia in providing regulated critical hazardous waste recycling services to the steel and aluminium industries 2022 Steel Dust Recycling Aluminium Salt Slags Recycling €1,136m Revenue #1 Position global #1 Position in Europe in salt slags subsegm
Slide 50: Key milestones
Key milestones Befesa has grown successfully through organic initiatives and acquisitions Steel Dust expansion China First to market with state-of-the-art 110 kt EAFD recycling plants in China: Changzhou, Jiangsu: Steel Dust expansion Korea & Turkey ✓ Completed on budget ✓ In commercial operations s
Slide 51: Leader in circular economy for >30 years
Leader in circular economy for >30 years Environmental Recycling Proven track Global regulations service solutions record leader getting stricter and expanding critical to the steel and to grow and diversify with balanced footprint, into new geographies; aluminium industries; Befesa’s portfolio; clo
Slide 52: Highly regulated and critical service model
Highly regulated and critical service model Befesa is the leading environmental services partner in the circular economy of the 2nd steel and aluminium industry by recycling and avoiding the landfilling of c. 1.8 Mt hazardous residues and recovering c. 1.5 Mt of new valuable materials HAZARDOUS RESI
Slide 53: Proven resilience & growth through cycles
Proven resilience & growth through cycles Attractive growth track record with proven margin resilience despite volatile environment – driven by a successful service-focused business model & prudent financial practices Key COVID pandemic Global European macro financial crisis debt crisis Global suppl
Slide 54: Befesa's resilience during latest crises
Befesa’s resilience during latest crises Befesa has demonstrated resilient volumes and capacity utilisation levels during the latest crises 2008 / 2009 / 2010 2019 / 2020 / 2021 600 1000 2019 2020 2021 240 >1.1Mt incl. 240 US 550 900 Befesa EAFD 500 474 482 220 220 throughput, kt 800 687 701kt excl.
Slide 55: Global leader in Europe, North America and Asia
Global leader in Europe, North America and Asia Befesa is the global leader in steel dust and the European leader in salt slags recycling services with a competitive advantage due to its close-proximity to key clients; 24 plants globally Lünen EAFD recycling plants Duisburg Hanover Salt slags & SPL
Slide 56: Decarbonisation megatrend favouring EAF steel growth
Decarbonisation megatrend favouring and driving EAF steel growth Global crude steel production1 CAGR CAGR million tonnes, 2016—2030e 2016—21 2022—30e 2,064 +3.6% +1.0% 1,951 Total crude 1,633 564 37%2 +6.2% +4.2% 29% EAF 26% BOF consumes c.7x more CO2 per tonne vs. EAF2 BOF Each tonne of steel throu
Slide 57: Zinc global production growth; incremental demand from energy transition
Zinc global production grew at 1.4% CAGR over L15 years; Incremental demand from transition to renewable energy Global refined zinc metal production1 Zinc annual demand from wind, solar & batteries2 million tonnes thousand tonnes 15.0 13.0 11.0 9.0 7.0 5.0 WOX, mixed with virgin zinc concentrates, p
Slide 58: Decarbonisation and EV driving aluminium market growth in Europe
Decarbonisation and EV driving aluminium market growth in Europe EV unit sales in Europe1 Alu content per vehicle2 Auto alu demand in Europe2 million units kg per passenger car million tonnes +75 kg per car +2 million tonnes x5 249 4 5 11 174 3 121 2 0 2015 2020 2030e 2006 2019 2030e 2022e 2026e 203
Slide 59: Strong financial backbone
Strong financial backbone Long-term and efficient capital structure with no maturities up to July 2026 → Resilient earnings and cash flows … to self-fund growth Prudent zinc hedging → Stable & high liquidity roadmap in the approach US, Europe and Asia → Moderate leverage at c. x2.5 Rigorous cash man
Slide 60: Experienced and stable management team
Experienced and stable management team Senior management team delivering results through long-standing industry expertise, entrepreneurial spirit and focus on operational excellence as well as governance and compliance processes Javier Molina Asier Zarraonandia Key achievements / track record Execut
Slide 61: ESG
05 ESG
Slide 62: ESG highlights
ESG highlights Key player within the circular economy, with c. 1.8 Mt recycled and c. 1.5 Mt of valuable materials Lost Time Injury Rate (LTIR)1 ESG Ratings2 0.55 LTIR in 2022 (all time low) 30 June 2023 31 December 2022 -32% yoy (2021: 0.81) B / Prime Top 3 of 69 -90% vs baseline (2015: 5.71) #181
Slide 63: ESG: Enhanced transparency & performance
ESG: Enhanced transparency & performance Transparency / reporting External ratings Health & safety Detailed ESG Report Lost Time Injury Rate (LTIR)1 improved by 85% since 2015 LTIR CO2 holistic approach CO2 intensity targets Sustainability Committee Saving >2mt CO2eq -20% by 2030 vs. virgin producti
Slide 64: Sustainability at the core of Befesa
Sustainability at the core of Befesa Befesa’s operations have a direct net positive environmental impact as well as multiple positive indirect effects by enabling EAF steel and aluminium recycling BEFESA Direct environmental benefits Indirect sustainability benefits Circular Avoidance of GHG emissio
Slide 65: Climate action plan
Climate action plan Committing to a 20% GHG emissions intensity reduction by 2030 and aiming at net zero emission by 2050 Baseline 2030 commitment 2050 vision -20% Net zero emission 0.56 Scope 2 0.06 0.45 Scope 1 0.50 0.45 tonne of CO₂ equivalent per tonne of waste treated - 2021 pro forma 2030e 205
Slide 66: Selected ESG targets
Selected ESG targets Environmental Social Governance 1 3 >2.4mt -50% IT improve CIS assessment waste recycled by 2025 LTIR by 2024 rating until 2023 >1.8mt 2 new materials admin employees trained recovered by 2025 BEzero maintain zero fatalities ≥90% in compliance each year ISO ISO certification ful
Slide 67: Investor agenda & appendix
06 Investor agenda & appendix
Slide 68: Investor's agenda
Investor’s agenda Financial calendar 2023 Next investor conferences Q3 2023 Q4 2023 Q3 2023 Statement & Conf. Call Frankfurt – Commerzbank & ODDO BHF ODDO BHF Iberian Digital Forum (virtual) Thursday, 26 October 2023 Corporate Conference 4 & 5 October – ODDO BHF 5 September – Commerzbank & ODDO Pari
Slide 69: H1 2023/22 – Key financials
H1 2023/22 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1 €403.0 €41.3 €195.2 -€24.0 €615.5 yoy change +€49.2 / +13.9% -€0.0 / -0.1% -€22.5 / -10.3% +€16.3 / - +€43.0 / +7.5% Reported EBITDA €63.4 €14.3 €13.4 -€
Slide 70: Q2 2023/22 – Key financials
Q2 2023/22 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1 €186.7 €20.4 €99.4 -€13.0 €293.5 yoy change -€11.2 / -5.6% -€1.7 / -7.6% -€20.4 / -17.0% +€15.6 / - -€17.6 / -5.7% Reported EBITDA €26.3 €7.7 €6.1 €1.3 €
Slide 71: Multi-year trend – Key financials
Multi-year trend – Key financials1 (€m, unless otherwise stated) 2017 2018 2019 2020 2021 2022 Revenue €667.42 €720.1 €647.9 €604.3 €821.6 €1,136.0 Reported EBITDA €153.0 €176.0 €159.6 €123.5 €189.6 €234.9 Reported EBITDA margin 22.9%2 24.4% 24.6% 20.4% 23.1% 20.7% % Adjusted EBITDA €172.43 €176.0 €
Slide 72: H1 2023/22 – Operational data – Steel Dust Recycling Services
H1 2023/22 – Operational data – Steel Dust Recycling Services H1 2022 H1 2023 yoy change EAFD 629.7 592.3 -37.3 / -5.9% throughput (kt) EAFD average 81.6% 70.6% -1,109 bps capacity utilisation (%) Waelz oxide 213.9 197.2 -16.7 / -7.8% (WOX) sold (kt) Zinc LME price €3,510 €2,624 -€886 / -25.3% (€/t)
Slide 73: Q2 2023/22 – Operational data – Steel Dust Recycling Services
Q2 2023/22 – Operational data – Steel Dust Recycling Services Q2 2022 Q2 2023 yoy change EAFD 292.3 305.3 +13.0 / +4.4% throughput (kt) EAFD average 75.4% 72.3% -306 bps capacity utilisation (%) Waelz oxide 110.2 97.4 -12.8 / -11.6% (WOX) sold (kt) Zinc LME price €3,683 €2,331 -€1,352 / -36.7% (€/t)
Slide 74: H1 2023/22 – Operational data – Aluminium Salt Slags Recycling Services
H1 2023/22 – Operational data – Aluminium Salt Slags Recycling Services H1 2022 H1 2023 yoy change Salt slags & SPL 172.9 171.1 -1.9 / -1.1% treated (kt) Salt slags & SPL 74.2% 73.4% -80 bps avg. capacity utilisation (%) Aluminium 84.6 87.2 +2.5 / +3.0% alloys produced (kt) Secondary alu 83.3% 85.7%
Slide 75: Q2 2023/22 – Operational data – Aluminium Salt Slags Recycling Services
Q2 2023/22 – Operational data – Aluminium Salt Slags Recycling Services Q2 2022 Q2 2023 yoy change Salt slags & SPL 85.5 88.8 +3.3 / +3.8% treated (kt) Salt slags & SPL 73.0% 75.8% +280 bps avg. capacity utilisation (%) Aluminium 42.4 43.5 +1.1 / +2.5% alloys produced (kt) Secondary alu 83.0% 85.1%
Slide 76: Multi-year trend – Operational data
Multi-year trend – Operational data 2017 2018 2019 2020 2021 2022 EAFD throughput (kt) 661.0 717.1 665.8 687.0 885.7 1,193.8 EAFD average capacity 84.7% 92.0% 80.7% / 83.2% 83.3%2 76.8% utilisation (%) 90.1%1 Waelz oxide (WOX) sold 217.8 240.9 217.6 239.2 291.0 407.4 (kt) Zinc LME price (€/t) €2,572
Slide 77: Consolidated key financials
Consolidated key financials Adjusted EBITDA decreased by 22% yoy to €45m in Q2 2023; Lower zinc and aluminium market prices partially offset by improved volumes, lower gas & electricity prices as well as productivity & synergies Adjusted EBITDA bridge Q2 2022 to Q2 2023 (€m) -21.5% 56.9 4 Turkey bac
Slide 78: Steel Dust Recycling Services
Steel Dust Recycling Services Adjusted EBITDA decreased by 25% yoy to €30m in Q2 2023, mainly due to lower zinc market price; Unfavourable zinc TC offset by higher hedging prices and volumes; Higher coke prices more than offset by productivity and synergies Adjusted EBITDA bridge Q2 2022 to Q2 2023
Slide 79: Aluminium Salt Slags Recycling Services
Aluminium Salt Slags Recycling Services EBITDA decreased by 14% yoy to €14m in Q2 2023, mainly due to lower aluminium market prices partially offset by lower cost (mainly through lower energy prices) EBITDA bridge Q2 2022 to Q2 2023 (€m) -13.6% 16.1 0.5 13.9 -8 6 Lower aluminium FMB Lower cost, main
Slide 80: Cash flow, net debt & leverage
Cash flow, net debt & leverage Cash on hand at €143m providing >€200m liquidity; Net leverage of x2.96 Adjusted EBITDA to Total cash flow in Q2 2023 € million Total capex = €22m Hanover recovery and 44.6 US operating Henan & -0.1 -6.6 excellence -9.0 29.0 Palmerton 16.8 refurbishment 4.8 -7.0 0.5 Ad
Slide 81: Zinc & aluminium prices correlated with electricity & gas prices
Zinc & aluminium metal prices directly correlated with electricity & gas prices over the last >20 years Indexed annual price trend1, 2000 to H1 2023 Index, year 2000 = 100 1500 European energy crisis 1200 Natural gas, Europe ($/kWh) 900 600 Electricity, DE/ES/FR ($/kWh) LME Zinc ($/t) 300 0 LME Prim