Befesa Sa · XETR:BFSA
Befesa Sa — Befesa Zinc — Q1 2013 Earnings Presentation
26 slides from Befesa Sa's earnings presentation, May 29, 2013
Slide 1: First Quarter 2013 Earnings Presentation
BEFESA ZINC Innovative Technology Solutions for Sustainability BEFESA ZINC First Quarter 2013 Earnings Presentation 29th May 2013
Slide 2: Forward-looking Statement
BEFESA ZINC Forward-looking Statement This presentation contains forward-looking statements and information relating to Befesa Zinc that are based on the beliefs of its management as well as assumptions made and information currently available to Befesa Zinc. Such statements reflect the current view
Slide 3: Agenda
BEFESA ZINC Agenda 1 1Q Business Highlights 2 1Q Financial Highlights 3 Outlook 4 Appendix 3
Slide 4: 1Q 2013 Key Highlights
BEFESA ZINC 1Q 2013 Key Highlights Profitable growth despite a continuously challenging environment Revenues EBITDA 64.7 M€ 21.5 M€ 3.9 % (62.3 M€ 1Q 2012) 4.3 % (22.4 M€ 1Q 2012) 5% 1% 5% Crude Steel 25% Stainless Steel €64.7m €21.5m 70% Others* 93% Net Income Leverage 7.8 M€ 2.82x** 6.6 % (8.3 M€
Slide 5: Agenda
BEFESA ZINC Agenda 1 1Q Business Highlights 2 1Q Financial Highlights 3 Outlook 4 Appendix 5
Slide 6: 1Q 2013 Crude Steel
BEFESA ZINC 1Q 2013 Crude Steel We continue to deliver good results in a continuous challenging macro environment in crude steel 45.2 M€ Revenues in 1Q 2013, a decrease of 5 % Y-o-Y 20.0 M€ EBITDA in 1Q 2013, a decrease of 3 % Y-o-Y 44.3 % Average EBITDA margin (vs. 43.4 % 1Q 2012) 91.2 % Average Lo
Slide 7: 1Q 2013 Stainless Steel
BEFESA ZINC 1Q 2013 Stainless Steel Adverse market conditions and commodity prices are affecting our results in stainless steel 16.2 M€ Revenues in 1Q 2013, an increase of 9 % Y-o-Y 1.2 M€ EBITDA in 1Q 2013, a decrease of 37 % Y-o-Y 7.2 % Average EBITDA margin (vs. 12.3 % 1Q 2012) 64.4 % Average Loa
Slide 8: 1Q 2013 Business Highlights
BEFESA ZINC 1Q 2013 Business Highlights Good 1Q in general, given the current macro economic turmoil 1 Slight decrease in throughput (-5.1 % Y-o-Y) and lower average load factor (91 % vs. 96 %) due to more planned maintenance shutdowns 2 WOX: Lower sales (-13.4 % Y-o-Y); Lower production levels (-8.
Slide 9: Agenda
BEFESA ZINC Agenda 1 1Q Business Highlights 2 1Q Financial Highlights 3 Outlook 4 Appendix 9
Slide 10: Consolidated Figures
BEFESA ZINC Consolidated Figures Good quarter in line with previous ones, benefiting from hedging policy 1Q 2013 EBITDA reached €21.5m, representing an average EBITDA margin of 33% Net Debt is €231.8m, representing a Net Debt / EBITDA ratio of 2.82x * 1Q Revenues (€m) Revenues by Quarter (€m) (€m) (
Slide 11: Crude Steel Dust Segment
BEFESA ZINC Crude Steel Dust Segment Solid results in steel dust despite 8% decline in EU mini-mill production Throughput in 1Q 2013 decreased by 5.1 % Y-o-Y due to more maintenance stops than in 1Q 2012 1Q 2013 revenues decreased by 4.7% Y-o-Y mainly due to lower volumes of WOX sold (-13%); LME ave
Slide 12: Stainless Steel Segment
BEFESA ZINC Stainless Steel Segment Weak start of 2013 compared to last year, mainly due to lower throughput levels and weak commodity prices 1Q 2013 revenues increased 9% Y-o-Y, mainly due to the sharp increase in revenues from alloys sold during this period (+324%), despite the 11 % decrease in st
Slide 13: Cash Flow & Liquidity
BEFESA ZINC Cash Flow & Liquidity Continue with stable cash flow generation and strong liquidity position Operating activities: During Q1 2013, the net cash flows from operating activities was €8.9m, that compared to Q1 2012 with €8.4m. This means a +€0.6m explained by the reduction of the taxes pai
Slide 14: Agenda
BEFESA ZINC Agenda 1 1Q Business Highlights 2 1Q Financial Highlights 3 Outlook 4 Appendix 14
Slide 15: Outlook
BEFESA ZINC Outlook In general we have a positive outlook 2013, with no major changes in European mini-mill steel production 1 2013 load factor will not be affected at current levels of EAF production Crude Steel 2 Similar levels of EAF production expected for 2013 than for 2012 Dust 3 Strong demand
Slide 16: Outlook (cont'd)
BEFESA ZINC Outlook (cont’d) Growth strategy focused on South Korea and Turkey steel dust recycling projects 1 New 110kt plant in Adana (near Iskenderun): Land obtained and partially paid; permits and authorizations process currently on going 2 Financing completed with EBRD. EAF dust supply contract
Slide 17: Turkey and South Korea
BEFESA ZINC Turkey and South Korea Growth strategy focused on South Korea and Turkey steel dust recycling projects Turkey South Korea 5th largest EAF steel producer 4th largest EAF steel producer EAF Steel Market 20-30% Zinc in EAF dust 20-30% Zinc in EAF dust Relatively strict & catching-up with EU
Slide 18: Zinc Prices
BEFESA ZINC Zinc Prices Hedging policy compensating for pressures in Zinc Prices and providing visibility to the cash flows for the next 13 months 2000 January 2012 January 2013 1,703 €/t 1,700 €/t 1800 1600 1400 1,560 €/t 1Q 2014 2Q 2014 1,550 €/t 1,500 €/t 1200 1000 LME Zinc Spot Price (€/t) Hedgi
Slide 19: Agenda
BEFESA ZINC Agenda 1 1Q Business Highlights 2 1Q Financial Highlights 3 Outlook 4 Appendix 19
Slide 20: Detailed Balance Sheet
BEFESA ZINC Detailed Balance Sheet Figures in € ‘000 Assets 31.03.2013 31.12.2012 Equity and Liabilities 31.03.2013 31.12.2012 Non-current assets: Equity: Intangible assets: Of the Parent: Goodwill 279,079 279,079 Share capital 25,010 25,010 Other intangible assets 9,421 9,555 Unrealised Asset and L
Slide 21: Detailed Consolidated P&L
BEFESA ZINC Detailed Consolidated P&L Figures in € ‘000 1Q 2013 2012 Variation Revenue 64,651 62,247 2,404 Cost of Sales (39,079) (35,436) (3,643) Other operating income 2,299 1,266 1,033 Gross Profit 27,871 28,077 (206) Depreciation & amortization charge (4,209) (3,432) (777) General and Administra
Slide 22: Detailed Cash Flow
BEFESA ZINC Detailed Cash Flow 1Q Figures in € ‘000 2013 2012 Variation Cash Flows from Operating Activities Profit for the period before tax 11,265 12,470 (1,205) Adjustments due to: Amortization/ Depreciation 4,209 3,432 777 Impairment Test - - - (Profit)/Loss on disposal of non-current assets 6 -
Slide 23: Detailed Segment Reporting
BEFESA ZINC Detailed Segment Reporting 1Q 2013 4Q 2012 EBITDA EBITDA Figures in € ‘000 Revenue EBITDA Margin Revenue EBITDA Margin Crude Steel Dust 45,173 20,027 44.3 % 47,604 19,970 41.9 % Stainless Steel Dust 16,154 1,159 7.2 % 15,049 1,832 12.2 % Others* 3,324 275 8.3 % 3,555 243 6.8 % Total 64,6
Slide 24: Detailed Operational Data
BEFESA ZINC Detailed Operational Data Crude Steel Dust 1Q 2013 2012 Variation (in Dry Metric Tons) Throughput Crude Steel Dust 127,423 134,232 -5.1 % Average Load Factor 91.2 % 96.1 % Waelz Oxide Production 42,041 46,077 -8.8 % Zinc contained in Production 28,100 30,210 -7.0 % Waelz Oxide Sold 41,23
Slide 25: Glossary
BEFESA ZINC Glossary For a full understanding of this presentation and the Company’s activities, please see below a glossary of certain terms used Electric arc furnace A type of furnace used by mini-mills to melt recycled steel scrap to produce new steel Leaching A hydrometallurgical process that in
Slide 26: Q&A
BEFESA ZINC Q&A 26