Befesa Sa · XETR:BFSA
Befesa Sa — Q4 2024 Earnings Presentation
28 slides from Befesa Sa's earnings presentation, Feb 27, 2025
Slide 1: 2024 Preliminary Earnings
2024 Preliminary Earnings 27 February 2025
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: Today's agenda
Today’s agenda Business highlights Asier Zarraonandia Financial results Rafael Pérez Outlook and Growth Asier Zarraonandia Appendix & Investor Agenda Asier Zarraonandia Rafael Pérez Chief Executive Officer Chief Financial Officer 3
Slide 4: Agenda
Agenda Business highlights Financial results Outlook and growth Appendix & Investor’s agenda 4
Slide 5: Robust FY24 operating and financial results despite challenging macroeconomic environment
Robust FY24 operating and financial results despite challenging macroeconomic environment 2024 Financial Highlights Revenue +5% ▪ Adj. EBITDA FY24 at €213m, up 17%. All-time-high quarterly EBITDA in Q4 24 at €62m FY24A: €1,239m ▪ Strong Operating Cash Flow in Q4 up 18% YoY and 30% in FY24 driven by
Slide 6: FY24 Steel Dust business highlights
FY24 Steel Dust business highlights Strong Steel dust recycling operations in Europe and US partially offset by zinc refining contribution EUROPE USA ASIA Steel production in Europe at 5-year low Good utilization levels in the steel dust Robust Q4’24 for EAFD throughput in Asia impacted by wea
Slide 7: FY24 Aluminium business highlights
FY24 Aluminium business highlights Strong salt slags recycling performance partially offset by weak secondary aluminium metal margin Salt Slags recycling 2nd aluminium Strong volume of salt slag recycled with plants Very weak European automotive industry Highlights running at 91% capacity utiliz
Slide 8: Agenda
Agenda Business highlights Financial results Financial results Outlook and growth Outlook and growth Appendix & Investor’s agenda 8
Slide 9: Steel Dust Recycling Services Financials
Steel Dust Recycling Services Financials Favourable blended price and TC, lower coke and energy price, partially offset by zinc refining in the US YoY change EBITDA 2023 to 2024 (€m) 2023 2024 (%) +36 / +27% Revenue €m 785.6 825.6 +5% 10 Adjusted EBITDA €m 134.1 170.4 +27% -18 170 Adjusted EBITDA %
Slide 10: Aluminium Salt Slags Recycling Services Financials
Aluminium Salt Slags Recycling Services Financials EBITDA impacted by lower 2º alu metal margin, partially offset by lower energy prices and higher Salt slags volume. YoY change 2023 2024 EBITDA 2023 to 2024 (€m) (%) -5 / -10% Revenue¹ 399.0 419.4 +5% 48 - Salt Slags €m 86.3 105.9 +23% 1 - Secondary
Slide 11: Zinc price traded higher in H2'24 vs H1'24
Zinc price traded higher in H2’24 vs H1’24, with mini rallies in May and in Q4 2024 (≈$3,000/t) (April ‘22) Peak: $300 4.371 (2008 & 2020) FY24 (Feb ‘18) 3.540 (Dec‘24) 3.043 Contract TCs $165 $143 (2024) (Jan ‘12) 2.368 (2018) 2.055 (Jun ‘23) 1,894 $54 (March ‘20) Spot TCs (2011) 1.522 Zinc LME ($)
Slide 12: Zinc price hedging extended until Dec 2026
Zinc price hedging extended until dec 2026 at all-time high level of 1 Befesa’s hedging strategy unchanged €2,650. Next hedging Q1 2027 • 1-3 years forward • Targeting 60% - 75% of zinc equivalent • Befesa provides no collateral Zinc LME1 €2,549 €2,425 2 Befesa’s hedging strategy has proven successf
Slide 13: Coke price normalisation; gas and electricity prices stabilised
Coke price continued further normalisation in FY24; Gas & electricity prices stabilised around 2021 levels Coke ▪ Befesa’s coke price Befesa’s energy price evolution by source continued further normalisation in Q4’24 to levels below 2022 and 2023 2019/20 2021 2022 2023 2024 average ▪ 2024 price aver
Slide 14: EBITDA to Cash Flow
EBITDA to Cash Flow Operating Cash Flow in 2024 amounts to €192m, up 30% YoY. Cash on hand as of Dec24 stands at €103m. Adjusted EBITDA to Total cash flow in 2024 (€ million) 213 Total capex = €119m -26 192 4 -56 -23 -40 -48 -29 -4 1 2 Adj EBITDA WC Change Taxes Operating CF Maintenance Growth Capex
Slide 15: Achieved <x3 leverage target at Dec24
Achieved <x3 leverage target at Dec24, ongoing reduction through disciplined capital allocation Capital structure Net Debt / EBITDA • TLB of €650m x3.4 x3.3 • Maturity in July 2029 • E+275 bps (25 bps reduction when leverage <x3.0 and <x2.5) • Expecting E+250 bps in FY25 x2.9 Historical avg x2.7 • C
Slide 16: Agenda
Agenda Business highlights Financial results Financial results Outlook and growth Outlook and growth Appendix & Investor’s agenda 16
Slide 17: Befesa expects strong double digit EBITDA growth in 2025
Befesa expects strong double digit EBITDA growth in 2025 Commentary 2025 Outlook Europe: stable/strong volume expected, despite current challenging steel industry Steel dust volume USA: higher EAF steel dust volume driven by volume from new contracts Neutral to positive China/Asia: stable vo
Slide 18: Palmerton plant refurbishment progressing well
Palmerton plant refurbishment progressing well to seize growth in the US EAF steel dust market Plant overview ▪ 2 kilns with c. 163 kt → 220 kt (post-refurbishment) EAF steel dust recycling capacity Palmerton, Pennsylvania ▪ Producing WOX as a marketable product Indicative timing and status H1 2025
Slide 19: Bernburg expansion: permits and commercial contracts
Bernburg expansion: Moving forward with permits and commercial contracts Plant overview ▪ Expand alu alloy production capacity at existing Bernburg plant from current 75 kt to 135 kt (+60 kt) • 2 rotary furnaces (and 2 holding furnaces) ▪ Total Befesa 2nd Alu capacity from 205 kt to 265 kt Bernburg,
Slide 20: Agenda
Agenda Business highlights Financial results Financial results Outlook and growth Outlook and growth Appendix & Investor’s agenda 20
Slide 21: Key financials 2024 and Q4 2024
Key financials 2024 and Q4 2024 2024 2023 Change Q4 2024 Q4 2023 Change Key operational data (tonnes, unless specified otherwise) Electric arc furnace (EAF) steel dust throughput 1,210,685 1,194,771 1.3 % 321,647 305,047 5.4 % Waelz oxide (WOX) sold 400,494 399,109 0.3 % 108,153 98,061 10.3 % Salt s
Slide 22: Steel Dust at a glance
Steel Dust at a glance 2024 2023 Change Change Q4 2024 Q4 2023 Change Change Key operational data (tonnes, unless specified otherwise) EAF steel dust throughput 1,210,685 1,194,771 1.3 % 15,914 321,647 305,047 5.4 % 16,600 WOX sold 400,494 399,109 0.3 % 1,385 108,153 98,061 10.3 % 10,092 Zinc blende
Slide 23: Aluminium Salt Slags Recycling Services at a glance
Aluminium Salt Slags Recycling Services at a glance 2024 2023 Change Q4 2024 Q4 2023 Change Key operational data (tonnes, unless specified otherwise) Salt slags and SPL recycled 425,668 360,770 18.0 % 107,942 102,953 4.8 % Total installed capacity 470,000 470,000 - 470,000 470,000 - Utilisation (%)
Slide 24: 2nd Aluminium Recycling Services at a glance
2nd Aluminium Recycling Services at a glance 2024 2023 Change Q4 2024 Q4 2023 Change Key operational data (tonnes, unless specified otherwise) Secondary aluminium alloys produced 171,278 168,216 1.8 % 43,308 42,446 2.0 % Aluminium alloy FMB price (€ / tonne) 2,306 2,188 5.4 % 2,242 2,191 2.3 % Total
Slide 25: Investor's agenda
Investor’s agenda Investor conferences Investor conferences Financial Calendar Q1 2025 Q2 2025 Preliminary Year-End Results 2024 & 28th ODDO BHF FORUM 2025 Berenberg European Conference 2025 Conference Call 09-10 January - Lyon 20-22 May – New York 27 February 2025 BNP Paribas Spain Investors Day Ke
Slide 26: Befesa is adjusting its business plan to temporary macroeconomic challenges
Befesa is adjusting and adapting its business plan to the temporary macroeconomic challenges CMD Nov 2022 Today Outlook Capex Total capex: €410-450m 20% invested, €87m: US refining and Recytech 30%: Europe steel dust & salt slags, €120-140m 20% being invested, €90m: Palmerton & Bernburg 30
Slide 27: Sustainability at the core of Befesa's business and strategy
Sustainability at the core of Befesa’s business and strategy with strong execution against the targets and plans CO2e targets CO2e intensity (Tn CO2e / Tn input) ▪ 20% intensity reduction by 20301 & Net Zero by 2050 ambition ▪ 13% CO2e intensity reduction in 2024 vs. 20232 -20% CSRD 0,56 0,56 0,55 ▪
Slide 28: BEFESA
BEFESA