Befesa Sa · XETR:BFSA

Befesa Sa — Q2 2014 Earnings Presentation

32 slides from Befesa Sa's earnings presentation, Aug 28, 2014

  1. Slide 1: 2Q 2014 Earnings Presentation

    BEFESA BEFESA 2Q 2014 Earnings Presentation 28th August 2014

  2. 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

  3. Slide 3: Introduction

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Rafael Pérez Head of Strategy & Investor Relations 3

  4. Slide 4: Highlights

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Javier Molina Chief Executive Officer 4

  5. Slide 5: Befesa 2Q 2014 Highlights

    BEFESA Befesa 2Q 2014 Highlights Second quarter revenues of €156 million, Up 2% compared to 2Q’13. Higher volumes in steel and secondary aluminum. Strong 2Q EBITDA of €34 million, up 38% YoY. Margins at 22% vs. 16% in 2Q 2013. Cost savings and new South Korea plant. Solid and stable financing positi

  6. Slide 6: Zinc Business Performance

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Asier Zarraonandia Managing Director of Zinc Business 6

  7. Slide 7: Zinc Business Performance

    BEFESA Zinc Business Performance Strong performance in crude steel over the 2Q with growth in volumes. South Korea plant delivering at full capacity. Weak stainless steel. Operational Performance  EAF Throughput Highlights - 135.873 tons of crude steel dust treated in 2Q  Crude steel dust deliveri

  8. Slide 8: Zinc Prices & Hedging

    BEFESA Zinc Prices & Hedging Zinc prices during the 2Q 2014 maintained the upward trend of 1Q ending the quarter above 1,600 €/t 2.000 2012: 2013: 1.703 €/t 1.700 €/t 1Q 2014: 2Q 2014: 1.800 1.550 €/t 1.500 €/t Zinc Prices  During the 2Q 2014 zinc prices traded above 2013 on average 1.600  Attract

  9. Slide 9: Zinc Business Financials

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Marta Deprit Financial Controller of Zinc Business 9

  10. Slide 10: Crude Steel Key Financials

    BEFESA Crude Steel Key Financials Strong crude steel segment 2Q EBITDA fueled by operations in South Korea plant and moderate increase in Zinc prices Crude Steel Revenues (€m) 2Q Highlights Y-o-Y 2013 2014  Crude steel dust segment revenues increased by 18% and EBITDA by 25% in 2Q Year over Year. M

  11. Slide 11: Stainless Steel Key Financials

    BEFESA Stainless Steel Key Financials Weak stainless steel quarter affected by depressed stainless market partially compensated by cost saving measures Stainless Revenues (€m) 2Q Highlights Y-o-Y 2013 2014  Stainless steel dust segment revenues decreased by 29% due to the decrease in metal alloys s

  12. Slide 12: Zinc Cash Flow & Liquidity

    BEFESA Zinc Cash Flow & Liquidity Cash flow generation influenced by the results of the operations  Operating activities: During 1H ‘14 the net cash flows generated by operating activities amounted to €11,6 million (a €8,1 million increase compared to the same period in 2013), mainly due to the inc

  13. Slide 13: Non-Zinc Business Performance

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Javier Molina Chief Executive Officer 13

  14. Slide 14: Aluminium Performance

    BEFESA Aluminium Performance Aluminium performance mainly driven by lower salt slag volumes partially offset by stronger secondary aluminum volumes Operational Performance Highlights  Salt Slag/SPLs Recycled  Strong secondary aluminum volumes - 210.639 tons of salt slag/SPL recycled in 1H ‘14 (-9,

  15. Slide 15: Aluminium Financial Highlights

    BEFESA Aluminium Financial Highlights Improved EBITDA 2Q 2014 driven mainly by cost savings initiatives despite weaker salt slag volumes Aluminium Revenues (€m) 2Q Highlights Y-o-Y 2013 2014  Decrease in revenues of 1% mainly driven by lower salt slag volumes due to market conditions, partially com

  16. Slide 16: Industrial Waste Financial Highlights

    BEFESA Industrial Waste Financial Highlights EBITDA and Margin improvement driven by better cost management Industrial Waste Revenues (€m) 2Q Highlights Y-o-Y 2013 2014  Lower volumes in waste treated in Spain and Latin America, while flat volumes in sulfur.  Revenue decreased 3% driven by lower d

  17. Slide 17: 2014 Growth Strategy – Aluminum and IWM

    BEFESA 2014 Growth Strategy – Aluminum and IWM Production Start Up of Bernburg Plant Scheduled in 4Q’14. Persian Gulf Project Progressing … Starting Detailed Engineering. Bernburg  Construction of the plant going on budget and faster than planned. Hot commissioning expected for September 2014.  Co

  18. Slide 18: Consolidated Business Financials

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Wolf Lehmann Chief Financial Officer 18

  19. Slide 19: Revenues, EBITDA & EBITDA Margin

    BEFESA Revenues, EBITDA & EBITDA Margin Strong EBITDA growth and margin improvement in 2Q 2014 reflects the positive impact of cost management and higher Zinc price Revenues (€m) Highlights  2Q 2014 consolidated revenues amounted 152,9 M€ 156,4 M€ 317,5 M€ 313,0 M€ to €156 million, 2% growth compar

  20. Slide 20: Consolidated P&L

    BEFESA Consolidated P&L EBITDA Up 38% or €9.2 million … Net Income Up 77% or €3.6 million Consolidated P&L (‘000 euros) BEFESA Profit & Loss Statement ('000 euros) 2Q 2013 2Q 2014 Change 1H 2013 1H 2014 Change Net revenue 152.854 156.438 3.584 317.517 313.006 -4.511 EBITDA 24.386 33.626 9.240 55.164

  21. Slide 21: Consolidated Cash Flow Statement

    BEFESA Consolidated Cash Flow Statement  Operating activities: During 1H´14 the net cash flows generated by operating activities amounted to €4,8 million (a €50,3 million increase compared to the same period in 2013), mainly due to better performance of the working capital and the increased earning

  22. Slide 22: Debt Structure & Net Debt Position: June YTD 2014

    BEFESA Debt Structure & Net Debt Position : June YTD 2014 Solid and stable financing position at 3 levels (Zinc, Non-Zinc and Corporate) with total leverage at x4,5 Net Debt / LTM Vendor Note 48 M€ Total Net June 2014 EBITDA PIK Note 151 M€ Debt(1) 586 M€ x4,6(2) Befesa Medio Ambiente Ring fence str

  23. Slide 23: Outlook

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Javier Molina Chief Executive Officer 23

  24. Slide 24: 2014 Business focus

    BEFESA 2014 Business focus Main priorities for 2014 on track • Focus on operational excellence in order to achieve the cost savings target for 2014 in a sustainable manner • Good execution of the Bernburg project, on time and on budget • Expand plant and maintain leadership position of Befesa Zinc i

  25. Slide 25: Questions

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook Questions 25

  26. Slide 26: Appendix

    BEFESA Business Zinc Business Zinc Non-Zinc Business Consolidated Business Introduction Q&A Appendix Highlights Performance Financials Performance Financials Outlook 26

  27. Slide 27: Consolidated P&L

    BEFESA Consolidated P&L BEFESA Profit & Loss Statement ('000 euros) 2Q 2013 2Q 2014 Change 1H 2013 1H 2014 Change From continuing operations: Revenue 152.854 156.437 3.583 317.517 313.006 (4.511) +/- Changes in inventories of finished goods and work in progress 2.429 (857) (3.286) 8.278 (548) (8.826

  28. Slide 28: Consolidated Balance Sheet

    BEFESA Consolidated Balance Sheet BEFESA Balance Sheet ('000 euros) Assets 30.06.2014 31.12.13 Equity and liabilities 30.06.2014 31.12.13 Equity: Non-current assets Attibutable to owners of the parent - Intangible assets Share capital 150.003 150.003 Goodwill 373.860 373.860 Reserve for valuation ad

  29. Slide 29: Consolidated Cash Flow Statement

    BEFESA BEFESA Consolidated Cash Flow Statement Cash Flow Statement ('000 euros) 2Q 2013 2Q 2014 Change 1H 2013 1H 2014 Change Cash flows from operating activities: Profit (loss) for the period before tax 7.147 12.136 4.989 26.514 18.893 (7.621) Adjustments due to: Depreciation and amortisation charg

  30. Slide 30: Zinc Detailed Balance Sheet

    BEFESA Zinc Detailed Balance Sheet BEFESA ZINC Balance Sheet ('000 euros) Assets 30.06.2014 31.12.2013 Equity and Liabilities 30.06.2014 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 8.354 8.818 U

  31. Slide 31: Zinc Detailed P&L

    BEFESA Zinc Detailed P&L BEFESA ZINC Profit & Loss Statement ('000 euros) 2Q 2013 2Q 2014 Change 1H 2013 1H 2014 Change Revenue 56.971 59.605 2.634 121.622 119.363 (2.259) Cost of sales (38.594) (38.575) 19 (77.673) (75.614) 2.059 Other operating income 949 4.111 3.162 3.248 5.493 2.245 Gross Profit

  32. Slide 32: Zinc Detailed Cash Flow

    BEFESA Zinc Detailed Cash Flow BEFESA ZINC Cash Flow Statement ('000 euros) 2Q 2013 2Q 2014 Change 1H 2013 1H 2014 Change Cash Flows From Operating Activities Profit for the period before tax 3.946 7.159 3.213 15.211 13.561 (1.650) Adjustments due to: Amortization/ Depreciation 3.168 4.115 947 7.377

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