Befesa SA · XETR:BFSA
Befesa SA — MainFirst Corporate Conference, Copenhagen 2019
26 slides from Befesa SA's conference presentation, Mar 28, 2019
Slide 1: Befesa Presentation
BEFESA BEFESA Befesa Presentation MainFirst Corporate Conference, Copenhagen, 28 March 2019
Slide 2: Disclaimer
BEFESA 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.
Slide 3: Today's Presenters
BEFESA Today’s Presenters CEO since 2000 CFO since 2014 Since 2008 Javier Molina Wolf Lehmann Rafael Pérez CEO CFO; including Director of responsibilities Investor Relations for Operational & Strategy Excellence and IT ▪ Leading the company since 1994 ▪ 20+ years in finance and ▪ Director of Investo
Slide 4: Agenda
BEFESA Agenda 1 Recent Developments 2 FY 2018 Update Befesa Overview 3 (Investment Highlights) 4
Slide 5: 2018 Key Highlights
BEFESA 2018 Key Highlights Record volumes in both core segments: Steel dust throughput at 718kt (+8.6% YoY); Salt slags & SPL at 517kt (+1.4% YoY) Delivered earnings at upper end of latest guidance range: EBITDA +2.1% YoY to €176.0m; EBIT +2.1% YoY to €147.0m Strongly improved net profit to €90.2m,
Slide 6: Consolidated Net Debt / Leverage / Cash Flow / Ratings
Consolidated Net Debt / Leverage / BEFESA Cash Flow / Ratings Leverage further reduced to x2.1 at YE’18 (x2.4 at YE’17) triggering additional 25 bps interest rate reduction to E +225 bps; Cash up €33m YoY to €151m Net debt & leverage rate evolution 2018 EBITDA to total cash flow – main drivers (€m)
Slide 7: Share Performance / Ownership Overview
BEFESA Share Performance / Ownership Overview Befesa’s share price has developed positively since the IPO outperforming DAX / SDAX indices; Free-float increased to 68.1% Performance of Befesa Share vs. Market(1) Key Highlights ▪ Befesa share developed positively, 160 closing 2018 at €37.50, up by 34
Slide 8: Zinc Prices & Hedging Strategy
BEFESA Zinc Prices & Hedging Strategy Hedging up to July ´21 improves earnings & cash flows visibility for next 3 years € 3,000 Market zinc price vs. zinc hedges (€/ton) € 2,500 €2,325 €2,260 H1’21: €2,168 €2,230 €2,160 € 2,000 €2,051 €1,939 €1,876 € 1,500 2017 2018 2019 2020 H1 2021 € 1,000 LME Zin
Slide 9: 2019 – Preliminary Outlook
BEFESA 2019 – Preliminary Outlook Expecting to continue record high utilization levels in both core segments; Steel Dust >90% and Salt Slags >95%. Volume overall stable YoY Targeting continued EBITDA growth; Primarily driven by improved hedged zinc prices YoY, limited by higher treatment charges in
Slide 10: Financial Trend
BEFESA Financial Trend Revenues(1) Adj. EBITDA and % margin(2) (€m) (€m) 22% 26% 24% 720 667 172 176 594 9 12 296 300 133 27 25 268 9 83 24 83 79 135 137 332 381 99 281 2016 A 2017 A 2018 A 2016 A 2017 A 2018 A Adj. EBIT and % margin(2) Operating cash flow(3) (€m) (€m) 17% 22% 20% 144 147 4 6 20 17
Slide 11: Mid-Term Growth Roadmap
BEFESA Mid-Term Growth Roadmap Accelerating growth through well defined business plan; Hedging in place and executing top 5 growth projects + China 1 Hedging • 2019: 92.4kt at €2,325/t • 2020: 92.4kt at €2,260/t • H1 2021: 46.2kt at €2,230/t Indicative earnings 3 2 Organic growth 2019/20 focus – Top
Slide 12: Greenfield in New Geographies – China
BEFESA 3 Greenfield in New Geographies – China Signed agreement with Jiangsu Changzhou Economic Development Zone and purchasing land use right; Developing 1st steel dust recycling plant … Changzhou Jiangsu province ✓ Chinese government continues to strengthen environmental regulations ✓ Steel dust h
Slide 13: Agenda
BEFESA Agenda 1 Recent Developments 2 FY 2018 Update Befesa Overview 3 (Investment Highlights) 13
Slide 14: Consolidated Key Financials
BEFESA Consolidated Key Financials EBITDA +2%, in line with latest guidance, to €176m EBITDA; Net profit up 83% to €90m YoY … Record volumes in both core businesses Revenue(1) Highlights (€m) 667.4 720.1 ▪ 2018 revenue up 8% YoY on a comparable basis to €720.1m 169.3 181.0 primarily due to: - Record
Slide 15: Steel Dust Recycling Services
BEFESA Steel Dust Recycling Services 2018 EBITDA growth +2% YoY driven by record throughput volumes, partially offset by Stainless Revenue EAFD throughput & capacity utilization (€m) (thousand tons, % of annual installed capacity) 380.9 332.1 717.7 88.6 96.9 661.0 172.8 180.9 Q4 '17 Q4 '18 2017 2018
Slide 16: Aluminium Salt Slags Recycling Services
BEFESA Aluminium Salt Slags Recycling Services Solid EBITDA at €37.2m (+2.1%) driven by improved metal margin in 2nd Aluminium partially offset by lower aluminium alloy volumes & prices Revenue(1)(2) Volumes & capacity utilization (€m) 338.4 342.9 (thousand tons, % of annual installed capacity) Salt
Slide 17: Agenda
BEFESA Agenda 1 Recent Developments 2 FY 2018 Update Befesa Overview 3 (Investment Highlights) 17
Slide 18: Befesa at a Glance
BEFESA Befesa at a Glance Befesa – European market leader in providing mission critical hazardous waste recycling services to the steel and aluminium industry 2018 Sales: €720m(1) 2018 EBITDA: €176m 2nd 2nd Aluminium Aluminium 39% 7% Steel Dust 50% Salt Slags Steel Dust 14% 78% Salt Slags 11% +90% E
Slide 19: Befesa at a Glance – History
BEFESA Befesa at a Glance Befesa has grown successfully through organic initiatives and acquisitions Successful Greenfield Frankfurt Stock Founded in Germany Acquisitions & Turnarounds (State of the Art Technology) Exchange & S-DAX 1987 2006 2009 2013 2014 2017 / 2018 Metallgesellschaft, German Befe
Slide 20: Investment Highlights
BEFESA Investment Highlights 2 European Market Leader in Niche Recycling 1 3 Markets with Favourable Macro Competitive Critical and Mega Trends Advantage from Environmental Supporting Steel Plants Close to Regulated Services Dust and Clients to Long-term Aluminium Markets Clients 7 4 Experienced Alu
Slide 21: Market Leader and Close Proximity to Clients
BEFESA 2 Market Leader and Close Proximity to Clients Befesa is the market leader in steel dust and salt slags recycling services with a competitive advantage due to its close proximity to key clients Established Market Leader Proximity to Clients Provides Strong Competitive Advantage Steel Dust Rec
Slide 22: Critical Service – Highly Regulated
BEFESA 3 Critical Service – Highly Regulated Befesa offers a crucial service taking care of highly regulated hazardous waste in the value chain of secondary steel and aluminium producers Recycling Service Consequences of Hazardous Waste Non-Compliance Steel Dust Value Steel WOX • Major European stee
Slide 23: Highly Resilient Business
BEFESA 5 Highly Resilient Business Revenues(1) Adj. EBITDA and % margin(2) (€m) (€m) 22% 26% 24% 720 667 172 176 594 9 12 296 300 133 27 25 268 9 83 24 83 79 135 137 332 381 99 281 2016 A 2017 A 2018 A 2016 A 2017 A 2018 A Adj. EBIT and % margin(2) Operating cash flow(3) (€m) (€m) 17% 22% 20% 144 14
Slide 24: Mid-Term Growth Roadmap
BEFESA 6 Mid-Term Growth Roadmap Accelerating growth through well defined business plan; Hedging in place and executing top 5 growth projects + China 1 Hedging • 2019: 92.4kt at €2,325/t • 2020: 92.4kt at €2,260/t • H1 2021: 46.2kt at €2,230/t Indicative earnings 3 2 Organic growth 2019/20 focus – T
Slide 25: Experienced Management Team
BEFESA 7 Experienced 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 Wolf Lehmann Key Achievements/Track Record CEO CFO; includi
Slide 26: Investor Agenda
BEFESA Investor Agenda Financial Calendar Meet Befesa … ✓ Tuesday, February 26, 2019: March 28, 2019 – Mainfirst Preliminary Earnings Release 2018 & Analyst Call Copenhagen, Corporate Conference Copenhagen May 14, 2019 – Midcap Partners Paris, Annual Small & Midcap Conference ✓ Thursday, March 21, 2
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