Befesa Sa · XETR:BFSA
Befesa Sa — Q1 2025 Earnings Presentation
29 slides from Befesa Sa's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Earnings
Q1 2025 Earnings 30 April 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: Strong Q1 EBITDA up 15% YoY, expecting FY25 EBITDA in the range of €240m to €265m
Strong Q1 EBITDA up 15% YoY, expecting FY25 EBITDA in the range of €240m to €265m Q1 2025 Financial Highlights Revenue +3% Adj. EBITDA Q1 2025 at €56m, up 15% YoY Q1 2025: €308m Strong Operating Cash Flow in Q1 2025 up 134% YoY driven by solid cash conversion €298m in Q1 2024 Leverage of x2.8
Slide 6: Q1 2025 Steel Dust business highlights
Q1 2025 Steel Dust business highlights Lower volume in general, driven by scheduled maintenance shutdowns in the period EUROPE USA ASIA Steel production in EU continued low in Lower utilization levels in the recycling Turkey and South Korea operating at Q1 caused by weak end-markets demand bus
Slide 7: Q1 2025 Aluminium business highlights
Q1 2025 Aluminium business highlights Weak secondary aluminium metal margin Salt Slags recycling 2nd aluminium Highlights Solid performance of the salt slag recycling plants Continued compressed aluminium metal margin running in line with previous periods utilization driven by weak auto demand c
Slide 8: Agenda
Agenda Business highlights Financial results Outlook and growth Appendix & Investor’s agenda 8
Slide 9: Steel Dust Recycling Services Financials
Steel Dust Recycling Services Financials Favourable TC and zinc hedging, partially offset by lower volumes EBITDA Q1’24 to Q1’25 (€m) Q1 2024 Q1 2025 YoY change (%) +13 / +37% 48 Revenue €m 188.0 200.2 +7% 0 Adjusted EBITDA €m 36.0 49.2 +37% 15 Adjusted EBITDA % 19.2% 24.6% +5.4% 36 General inflatio
Slide 10: Aluminium Salt Slags Recycling Services Financials
Aluminium Salt Slags Recycling Services Financials EBITDA impacted by lower 2º alu metal margin and higher energy prices EBITDA Q1’24 to Q1’25 (€m) Q1 2024 Q1 2025 YoY change (%) Revenue¹ 111.5 109.5 -2% -4 / -32% - Salt Slags €m 27.2 27.7 +2% 13 - Secondary Alu 98.3 95.2 -3% 0 EBITDA 12.7 8.6 -32%
Slide 11: Zinc TC settled at $80/t for 2025, an all-time low
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 (2008 & 2020) Oct 24 3,237 May 24 3,093 FY25 average: $2,838/t TC announcement Contract TCs 2,516 $143 Aug 24 (2018) 2,286 Feb 24 $80 $54 (2025) (
Slide 12: 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 €2,620 €2,425 2 Befesa’s hedging strategy has proven s
Slide 13: Coke price downward trend in Q1'25; increase in gas and electricity prices
Coke price continues gradual downward trend in Q1’25; Increase in gas and electricity prices in Q1’25 vs FY24 Coke Coke price at 174€/t in Q1’25, consolidates its stabilization Befesa’s energy price evolution by source compared to previous quarters, with a projected 2019/20 2021 2022 2023 2024 202
Slide 14: EBITDA to Cash Flow
EBITDA to Cash Flow Operating Cash Flow in Q1’25 at €34m. Cash on hand at Mar25 amounted to €105.0m. Adjusted EBITDA to Total cash flow in Q1 2025 (€ million) 56 Total capex = €18m -15 -7 34 -11 -7 -13 2 Adj EBITDA WC Change Taxes Operating CF Maintenance Capex 1 Growth Capex Bank borrowings Total C
Slide 15: Deleveraging trend continued to x2.8, driven by disciplined capital allocation
Deleveraging trend continued to x2.8, driven by disciplined capital allocation strategy. TLB repriced reducing 50bps. 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 saving vs. prev
Slide 16: Agenda
Agenda Business highlights Financial results 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: 2025 EBITDA expected between €240m and €265m
2025 EBITDA expected between €240m and €265m Strong Free Cash Flow generation and 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
Slide 19: Palmerton plant refurbishment progressing well to seize growth in US EAF steel dust market
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 20: Bernburg expansion: Moving forward with 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 21: Agenda
Agenda Business highlights Financial results Outlook and growth Appendix & Investor’s agenda 21
Slide 22: Key financials Q1 2025
Key financials Q1 2025 Q1 2025 Q1 2024 Change Change Key operational data (tonnes, unless specified otherwise) Electric arc furnace (EAF) steel dust throughput 277,187 303,114 (8.6) % (25,928) Waelz oxide (WOX) sold 90,250 99,998 (9.7) % (9,748) Salt slags and Spent Pot Linings (SPL) recycled 107,32
Slide 23: Steel Dust at a glance
Steel Dust at a glance Q1 2025 Q1 2024 Change Change Key operational data (tonnes, unless specified otherwise) EAF steel dust throughput 277,187 303,114 (8.6) % (25,928) WOX sold 90,250 99,998 (9.7) % (9,748) Zinc blended price (€ / tonne) 2,620 2,400 9.2 % 220 Total installed capacity 1,720,300 1,7
Slide 24: Aluminium Salt Slags Recycling Services at a glance
Aluminium Salt Slags Recycling Services at a glance Q1 2025 Q1 2024 Change Change Key operational data (tonnes, unless specified otherwise) Salt slags and SPL recycled 107,325 111,261 (3.5) % (3,936) Total installed capacity 470,000 470,000 - - Utilisation (%) 92.9 % 95.2% (2.3) % - Key financial da
Slide 25: 2nd Aluminium Recycling Services at a glance
2nd Aluminium Recycling Services at a glance Q1 2025 Q1 2024 Change Change Key operational data (tonnes, unless specified otherwise) Secondary aluminium alloys produced 42,890 44,347 (3.3) % (1,457) Aluminium alloy FMB price (€ / tonne) 2,416 2,277 6.1 % 139 Total installed capacity 205,000 205,000
Slide 26: Investor's agenda
Investor’s agenda Investor conferences Remaining conferences Financial Calendar Q2 2025 2025 Preliminary Year-End Results 2024 & UBS Pan European Small and Mid-Cap CoBa & ODDO BHF 16th Corporate Conference Conference Call Conference 2025 2025 27 February 2025 13-15 May – London 3-4 September – Frank
Slide 27: 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 28: Sustainability at the core of Befesa's business and strategy
Sustainability at the core of Befesa’s business and strategy with strong execution against targets and plans CO2e targets CO2e intensity 20% intensity reduction by 2030 & Net Zero by 2050 ambition1 (Tn CO2e / Tn input) 9% CO2e intensity reduction in 2024 vs. 2023 -20% CSRD 0.56 0.56 0.55 Befes
Slide 29: BEFESA
BEFESA