Befesa Sa · XETR:BFSA
Befesa Sa — Commerzbank & ODDO BHF 16th Corporate Conference 2025
50 slides from Befesa Sa's conference presentation, Sep 18, 2025
Slide 1: Business & strategic update
Business & strategic update Commerzbank & ODDO BHF 16th Corporate Conference 2025
Slide 2: Agenda
Agenda Executive Summary Executive Summary Current Trading Resiliency Resiliency USA operations USA operations China operations China operations Business Plan Business Plan Growth Strategy Growth Strategy 2
Slide 3: Key highlights
Key highlights Adjusted EBITDA H1 2025 at €112m, up 9% YoY EBITDA margin improved to 19% in Q2 2025 vs 16% in Q2 2024 Leverage at Jun25 at x2.7, deleveraging trend continued, improving from Dec24 of x2.9 (x3.4 in Jun24) EPS up 100% YoY to 1.00 (0.50 in June 2024) Lower utilization levels in the recy
Slide 4: Executive Summary 1/2
Executive Summary 1/2 Strong H1 EBITDA at €112m, confirmed FY25 EBITDA guidance in the range of €240m to €265m 2025 ▪ It represents +9% EBITDA growth year on year • Split between segments: 86% Steel Dust & 14% Aluminium • Better hedging price and favourable Zinc TC will have been the main drivers of
Slide 5: Executive Summary 2/2
Executive Summary 2/2 China focus on improving existing operations. Expansion plan stop China ▪ Befesa invested in China in 2020 to capture the business opportunity that increased EAF steel and environmental regulation presented • Total capex invested €90m in two EAF dust recycling plants in the pro
Slide 6: Agenda
Agenda Executive Summary Executive Summary Current Trading Resiliency Resiliency USA operations USA operations China operations China operations Business Plan Business Plan Growth Strategy Growth Strategy 6
Slide 7: Solid H1 EBITDA up 9% YoY, expecting stronger H2 driven by significantly higher volume
Solid H1 EBITDA up 9% YoY, expecting stronger H2 driven by significantly higher volume H1 2025 Financial Highlights Revenue -3% ▪ Adj. EBITDA H1 2025 at €112m, up 9% YoY H1 2025: €602m ▪ EBITDA margin improved to 19% in Q2 2025 vs 16% in Q2 2024 €621m in H1 2024 ▪ Leverage reduced to x2.7 in June 20
Slide 8: H1 2025 Steel Dust business highlights
H1 2025 Steel Dust business highlights Lower volume in general, driven by annual maintenance shutdowns in the period EUROPE USA ASIA Steel production in EU continued at 5-year low Lower utilization levels in the recycling Volumes in Turkey impacted by in Q2’25, level in H1 caused by weak end-m
Slide 9: Steel Dust Recycling Services Financials
Steel Dust Recycling Services Financials Favourable TC and zinc hedging, partially offset by lower volumes EBITDA H1 2024 to H1 2025 (€m) H1 2024 H1 2025 YoY change (%) +15 / +19% 96 Revenue €m 404.7 388.5 -4% -1 Adjusted EBITDA €m 80.9 96.3 +19% 81 23 Adjusted EBITDA -7 % 20.0 24.8 +5% General infl
Slide 10: H1 2025 Aluminium business highlights
H1 2025 Aluminium business highlights Solid Salt Slags performance partially offset by continued compressed alu metal margin Salt Slags recycling 2nd aluminium Solid performance of the salt slag recycling plants Continued compressed aluminium metal margin Highlights running in line with previous
Slide 11: Aluminium Salt Slags Recycling Services Financials
Aluminium Salt Slags Recycling Services Financials H1 2025 EBITDA impacted by lower alu metal margin and higher operating costs and energy prices EBITDA H1 2024 to H1 2025 (€m) H1 2024 H1 2025 YoY change (%) Revenue¹ 218.7 216.3 -1% -4 / -18% - Salt Slags €m 54.0 57.3 +6% 22 - Secondary Alu 192.4 18
Slide 12: Zinc TC settled at $80/t for 2025; Zinc LME price volatility
Zinc TC settled at $80/t for 2025 (vs $165/t in 2024) marking an all- time low; Zinc LME price shows volatility caused by global macro turmoil Peak: $300 Oct 24 (2008 & 2020) 3.237 H1 average: May 24 $2,739/t 3.093 30Jun25: $2,764/t Contract TCs TC announcement 2.516 $143 Q1’25 average: Q2’25 averag
Slide 13: Zinc price hedging extended until Jan 2027
Zinc price hedging extended until Jan 2027 at all-time high level of 1 Befesa’s hedging strategy unchanged €2,655. Next hedging Q1 2027 • 1-3 years forward • Targeting 60% - 75% of zinc equivalent • Befesa provides no collateral Zinc LME1 €2,549 €2,640 €2,425 2 Befesa’s hedging strategy has proven s
Slide 14: Coke price downward trend; electricity and gas normalization
Coke price continues gradual downward trend in Q2 2025; Electricity and gas prices have experienced a normalization in Q2 2025 Coke ▪ Coke price at 163€/t in Q2 2025, consolidates its Befesa’s energy price evolution by source downward trend compared to previous quarters 2019/20 2021 2022 2023 2024 2
Slide 15: EBITDA to Cash Flow
EBITDA to Cash Flow Operating Cash Flow in H1’25 at €64m. Cash on hand at Jun25 amounted to €96.5m. Adjusted EBITDA to Total cash flow in H1 2025 (€ million) 112 Total capex = €37m -36 -12 64 -21 -16 -34 -6 1 2 Adj EBITDA WC Change Taxes Operating CF Maintenance Capex Growth Capex Bank borrowings To
Slide 16: Deleveraging trend continued to x2.7
Deleveraging trend continued to x2.7, driven by disciplined capital allocation strategy 6TH Consecutive quarter of leverage reduction Capital structure Net Debt / EBITDA • Senior Secured TLB of €650m x3.4 x3.3 • Refinanced in July 2024 • Maturity in July 2029 • Repriced in March to E+225 bps (50 bps
Slide 17: Befesa confirms its growth outlook for 2025
Befesa confirms its growth outlook for 2025 underpin by stronger operational performance in H2 Commentary 2025 Outlook Europe: strong volume expected in H2, despite current challenging steel industry driven by high inventory levels Steel dust volume USA: higher EAF steel dust volume driven by vo
Slide 18: 2025 EBITDA expected between €240m and €265m
2025 EBITDA expected between €240m and €265m Strong increase in EPS. Leverage <x2.5 • Double-digit EBITDA growth driven by overall better TC, hedging, FY24A 2025 Guidance volume and operating cost • Strong cash generation remains a key priority, with continued EBITDA €213m €240m - €265m improvement
Slide 19: Agenda
Agenda Executive Summary Executive Summary Current Trading Current Trading Resiliency USA operations USA operations China operations China operations Business Plan Business Plan Growth Strategy Growth Strategy 19
Slide 20: Unique business model with high barriers to entry
Unique business model with high barriers to entry resulting in high margins over time and strong performance through the cycle ▪ Strategically located plants near customers and long-term service relationships providing high barriers to entry ▪ Proven track record of resilience through cycles and vol
Slide 21: Unique business model with high barriers to entry
Unique business model with high barriers to entry resulting in high margins over time Strategic locations and strong performance through the cycle Locked-in captive demand as Befesa’s plants strategically located in close proximity to client locations Short distance Plants located nearby EAF produce
Slide 22: 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 / 20213) 600 1000 2019 2020 2021CE 240 >1.1Mt Incl.240US acquisition 550 900 Befesa EAFD 220 500 474 482 220 800 throughput, kt 6
Slide 23: C90 as a solid floor of the zinc price
C90 growing at 6% CAGR over the las 15 years, consistently acting as a solid floor of the zinc price (April ‘22) 4.371 C90 as solid floor for zinc (Feb ‘18) 3.540 ▪ C90 represents the zinc (Dec‘24) 3.043 price level at which 10% of (March ‘08) the most expensive mines 2.496 (May ‘15) break even 2.29
Slide 24: Agenda
Agenda Executive Summary Executive Summary Current Trading Current Trading Resiliency Resiliency USA operations China operations China operations Business Plan Business Plan Growth Strategy Growth Strategy 24
Slide 25: Operational improvement of recycling assets on plan
Operational improvement of recycling assets on plan, ready to capture market growth. Stabilizing refining plant ▪ Steel dust recycling operations increasing efficiency according to initial plan based on operational synergies and best practices – Resulting in an increase of EBITDA/ton of 63%, from €7
Slide 26: US recycling operations improving gradually profitability
US recycling operations improving gradually profitability as planned Steel dust throughput & Plant utilisation 90% 60% 65% 570-590 Gradual recovery of EAF volume since 2021: 450 * 416 Customer 100 ▪ Loss of an EAF steel dust supply contract with a major steelmaker loss before acquisition 350 ▪ Volu
Slide 27: Synergies focused on operational efficiency and coke consumption
Synergies focused on operational efficiency and coke consumption, mostly captured already Coke consumption US plants (Kt) 133 128 113 Coke consumption in US reduced in Q2 2025 by 4% YoY driven by 105 operational efficiencies. Coke-to-throughput ratio has remained broadly stable YoY (13% in Q2 2024 v
Slide 28: Palmerton plant refurbishment progressing well
Palmerton plant refurbishment progressing well to seize growth in the US EAF steel dust market Plant overview Calumet, ▪ 2 kilns with c. 163 kt → c.220 kt (post-refurbishment) EAF Illinois Palmerton, steel dust recycling capacity Pennsylvania ▪ Producing WOX as a marketable product Indicative timing
Slide 29: New EAF announcements supported by strong infrastructure programs
New EAF announcements supported by strong infrastructure programs requiring steel EAF steelmaking capacity announcements in the US, Mt +0,45 +1,15 +2,4 + 18.58 New capacity, Mt Start up +2,5 +5,6 +5,28 Steelmaker Location Old Update Old Update 1 Calvert, Alabama1 1.5 1.5 H1’24 H1’26 Arcelor 2 Hamilt
Slide 30: Zinc refining asset being turnaround to improve profitability
Zinc refining asset being turnaround to improve profitability Zinc refining plant: Key facts Implementing a 3-phase plan since acquisition ▪ Vertical integration in the US which makes sense as there is Improving the quality of the product to the SHG zinc specification to 1 lack of smelting capacity
Slide 31: Turnaround plan to improve profitability of zinc refining plant
Turnaround plan to improve profitability of zinc refining plant Quality improvement Plant Utilization Cost Reduction % In Spec SHG over total production % Load factor +18% +36% 100% 100% 100% 82% 86% 82% 65% 50% Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q4’22 FY23 FY24 ▪ In Spec SHG (Special High Grade) zinc ▪
Slide 32: Agenda
Agenda Executive Summary Executive Summary Current Trading Current Trading Resiliency Resiliency USA operations USA operations China operations Business Plan Business Plan Growth Strategy Growth Strategy 32
Slide 33: China focus on improving existing operations
China focus on improving existing operations. Expansion plan was stopped in 2024 ▪ Befesa invested in China in 2020 to capture the business opportunity that increased EAF steel and environmental regulation presented – Total capex invested €90m in two EAF dust recycling plants in the provinces of Jia
Slide 34: Befesa invested in China in 2020
Befesa invested in China in 2020 to capture the business opportunity that increased EAF steel and environmental regulation presented Total capex invested €90m in two EAF dust recycling plants in the provinces of Jiangsu and Henan 1 Key milestones 2 Environmental Regulation ▪ In 2017, steel mill dust
Slide 35: Real estate crisis in China driving low EAF utilization
The real estate crisis in China is driving low utilization on EAF steel makers, resulting in low EAF dust generation 1 EAF steel output is being impacted by the real estate crisis, with a low utilisation rate 2 2024 represented the fifth year with a double-digit decline 3 Long products production is
Slide 36: Differences between Jiangsu and Henan provinces
Differences in EAF steel production and regulation enforcement between the two provinces drive performance Jiangsu Henan Tier 1 province with strong enforcement of the Tier 2 province, with utilisation rate expected to remain environmental regulation, high plant utilisation rate and subdued for a wh
Slide 37: Investment plan in China was stopped
Investment plan in China was stopped for the coming years until a clear market recovery Despite de challenging short term, in the medium term the opportunity in China remains very attractive Investment plan stop: Positive trends still in place for the mid-term ▪ The two main drivers for the investme
Slide 38: Agenda
Agenda Executive Summary Executive Summary Current Trading Current Trading Resiliency Resiliency USA operations USA operations China operations China operations Business Plan Growth Strategy Growth Strategy 38
Slide 39: 5-year Business Plan executed keeping leverage below x2.5
5-year Business Plan presented in CMD in November 2022 to be executed keeping leverage below x2.5 ▪ Growth going forward maintaining leverage below x2.5 – Only committed capex is Palmerton and Bernburg expansion, which are ongoing – European projects (expansion of steel dust and new salt slags) to b
Slide 40: What we said at the CMD in November 2022
What we said at the CMD in November 2022 40
Slide 41: Befesa has adjusted and adapted its business plan
Befesa has adjusted and adapted 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 42: Capex already invested will deliver growth over the coming years
Capex already invested will deliver 1 Total invested before 5Y Growth Plan €480m growth over the coming years • Today delivering €50m • Potential to deliver €80-90m EBITDA EBITDA Project Capex • >15% ROCE today potential US recycling €390 €47 €70 2 20% of the 5Y Growth Plan invested • €80m invested
Slide 43: Remaining 50% of Recytech acquired
Remaining 50% of Recytech acquired in a highly-accretive deal, advancing strategic global growth plan in Europe Befesa’s EAF steel dust recycling plants in Europe 1 Fouquières-lès-Lens/Recytech Key facts about Recytech: 2 Duisburg 2 1 ▪ Former 50/50 JV between Befesa and Recylex, 3 3 Freiberg 4 Asúa
Slide 44: Bernburg expansion: permits and commercial contracts
Bernburg expansion: Moving forward with permits and commercial contracts Plant overview Bernburg, Germany ▪ 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 t
Slide 45: Agenda
Agenda Executive Summary Executive Summary Current Trading Current Trading Resiliency Resiliency USA operations USA operations China operations China operations Business Plan Business Plan Growth Strategy 45
Slide 46: Growth strategy driven by favourable mega trends
Growth strategy driven by favourable mega trends of decarbonization, energy transition and environmental regulation ▪ The strategy of Befesa remains unchanged, focus on the two-core business – Steel dust and salt slags recycling services to the steel and aluminium industries as well as secondary alu
Slide 47: Befesa's industries benefited from favourable mega trends
Befesa’s industries are benefited from favourable mega trends driven by decarbonization and energy transition FAVOURABLE MEGA TRENDS Rising population Focus on circular economy Increase in middle classes in emerging countries / urbanisation Stricter environmental regulations Resource scarcity STEEL
Slide 48: Decarbonisation megatrends driving EAF steel growth
Decarbonisation megatrends favouring and driving the electric arc furnace (EAF) steel growth Global crude steel production1 Key takeaways million tonnes, 2016—2030e CAGR CAGR 2016—21 2022—30e 2,064 +3.6% +1.0% ▪ Ongoing swift from BOF to 1,951 Total EAF steel — Global EAF crude 1,633 564 steel produ
Slide 49: Energy transition megatrend requiring incremental zinc
Energy transition megatrend requiring incremental zinc, in addition to regular GDP related growth Key takeaways Zinc annual demand from wind, solar & batteries 1 thousand tonnes ▪ Global zinc demand grew with GDP at 2-3% CAGR over the L10y ▪ Zinc consumption expected to be supported as governments i
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