Befesa Sa · XETR:BFSA
Befesa Sa — Q1 2022 Earnings Presentation
23 slides from Befesa Sa's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 Earnings Presentation 26 April 2022
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: 01 Highlights
Electric arc furnace steel dust (EAFD) recycling plant at Asúa-Erandio, Spain 01 Highlights Javier Molina - CEO
Slide 4: Executive summary
Executive summary €61.1m €25.7m €27.0m FY’22 Guidance Q1’22 adjusted EBITDA Q1’22 Operating cash flow Net profit +8.9% yoy (Q1’21: €24.8m), FY EBITDA of €220m to 270m, 25% up yoy (Q1’21: €48.8m) ~stable yoy (Q1’21: €26.5m) corresponding to a €0.67 EPS 11% to 37% yoy growth 23% margin (Q1’21: 25%) (Q
Slide 5: Financial results
Secondary aluminium production plant at Bernburg, Germany 02 Financial results Wolf Lehmann - CFO
Slide 6: Consolidated key financials
Consolidated key financials Q1 adj. EBITDA at €61.1m, +25% yoy; Driven mainly by all-time high base metal prices and US zinc operations delivering as planned, more than offsetting energy inflation & unfavourable Zinc TC Adjusted EBITDA bridge Q1 2021 to Q1 2022 (€m) +€12.2 / +25.1% 16 -16 61.1 1) 48
Slide 7: Steel Dust Recycling Services
Steel Dust Recycling Services Q1 EBITDA at €54.8m, +50% yoy; Driven mainly by highest zinc market prices on record, US operations delivering as planned, more than offsetting energy inflation & unfavourable TC; Continued strong 35% EBITDA margin EBITDA bridge Q1 2021 to Q1 2022 (€m) +€18.3 / +50.1% 1
Slide 8: Aluminium Salt Slags Recycling Services
Aluminium Salt Slags Recycling Services Q1 EBITDA at €7.6m, -38% yoy; Energy inflation and some volume pressure partially mitigated with all-time high aluminium metal prices; Overall plant utilisation at around 80% EBITDA bridge Q1 2021 to Q1 2022 (€m) -€4.7 / -38.2% 12.3 4 -1 -8 Lower aluminium all
Slide 9: Cash flow, net debt & leverage
Cash flow, net debt & leverage Continued strong liquidity of >€300m including record €237m cash on hand; Net leverage of x2.13 at Q1’22, improved vs. x2.16 at YE’21 Adjusted EBITDA to total cash flow (€m) 61.1 -23.5 Total capex = €25.8m Seasonality / -7.3 25.7 timing -4.6 Mainly China Mainly China -
Slide 10: Zinc prices & hedging strategy
Zinc prices & hedging strategy Hedge book extended up to Jan’25, c.3 years; Improving earnings & cash flows visibility Zinc LME1) Befesa’s hedges2) Average blended Zinc LME price vs. Befesa’s hedging prices (€/t) €2,317 c.€2,375 c.€2,425 €2,239 c.€2,275 €2,275 €2,280 €2,136 €2,151 2019 2020 2021 202
Slide 11: Growth projects & outlook
Nanjing City, location of Befesa China’s HQ 03 Growth projects & outlook Javier Molina - CEO
Slide 12: Befesa closed AZR acquisition; operations delivering as expected
Befesa closed AZR acquisition on 17 August; Operations delivering as expected; Driving progress on integration & related synergies BEFESA #1 Europe (Steel Dust & Salt Slags) a US / North American leader (Steel Dust) #1 Asia1) (Steel Dust) Global leader1) in EAFD recycling EAFD recycling EAFD recycli
Slide 13: China I and China II plants
China I Changzhou plant, Jiangsu province Key facts of the plant: 1 • 1st EAFD recycling plant in China • Capacity to recycle 110kt EAFD p.a. • Total investment: c.€42m • Location: Changzhou (Jiangsu province) Status update: Long-term financing closed Jul’20 Construction completed on budget In comme
Slide 14: FY 2022 Guidance
FY 2022 Guidance Global diversified footprint and expansion initiatives delivering between +11% to 37% yoy growth; Wider guidance range driven by market (volume), energy & base metal price volatility Lower-end: €220m Upper-end: €270m +€22m / +11% yoy +€72m / +37% yoy EBITDA • Midpoint of €245m is al
Slide 15: ESG at Befesa
EAFD recycling plant at Gyeongju, South Korea 04 ESG at Befesa Javier Molina - CEO
Slide 16: ESG at Befesa
ESG at Befesa Key player within the circular economy, with c.2 million tonnes recycled and c.1.5 million tonnes of valuable materials recovered annually, that contributes significantly to increase efficiency of raw material use in the metals industry and promotes the transition towards a more sustai
Slide 17: 05 Investor agenda & appendix
Waelz kiln at EAFD recycling plant in Gyeongju, South Korea 05 Investor agenda & appendix
Slide 18: Investor's agenda
Investor’s agenda Financial calendar Next investor conferences 2022 Q2 2022 H2 2022 Annual General Meeting Paris – 2nd European SMID Mega Trends Frankfurt – Commerzbank & ODDO BHF Thursday, 16 June 2022 11 May 2022 – Kepler Cheuvreux Corporate Conference 2022 7 Sep 2022 – Commerzbank & ODDO BHF H1 2
Slide 19: Q1 2022/21 – Key financials
Q1 2022/21 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1) €155.9 €19.2 €97.9 -€11.6 €261.4 yoy change +€55.0 / +54.6% -€0.6 / -3.2% +€15.5 / +18.8% -€1.1 / - +€68.8 / +35.7% Reported EBITDA €54.8 €6.4 €1.2 -€2.
Slide 20: Multi-year trend – Key financials
Multi-year trend – Key financials1) (€m, unless otherwise stated) 2017 2018 2019 2020 2021 Revenue €667.42) €720.1 €647.9 €604.3 €821.6 Reported EBITDA €153.0 €176.0 €159.6 €123.5 €189.6 Reported EBITDA margin % 22.9%2) 24.4% 24.6% 20.4% 23.1% Adjusted EBITDA €172.43) €176.0 €159.6 €127.03) €197.63)
Slide 21: Q1 2022/21 – Operational data – Steel Dust Recycling Services
Q1 2022/21 – Operational data – Steel Dust Recycling Services Q1 2021 Q1 20221) yoy change EAFD 181.1 337.4 +156.3 / +86.3% throughput (kt) EAFD average 89.0% 88.0% -102 bps capacity utilisation (%) Waelz oxide 66.7 103.4 +36.7 / +55.0% (WOX) sold (kt) Zinc LME price €2,279 €3,337 +€1,058 / (€/t) +4
Slide 22: Q1 2022/21 – Operational data – Aluminium Salt Slags Recycling Services
Q1 2022/21 – Operational data – Aluminium Salt Slags Recycling Services Q1 2021 Q1 2022 yoy change Salt Slags & 104.4 87.5 -17.0 / -16.3% SPL treated (kt) Salt Slags & 94.1% 78.8% -1,530 bps SPL avg. cap. utilisation (%) Aluminium 51.3 42.2 -9.0 / -17.6% alloys produced (kt) Secondary Alu 101.5% 83.
Slide 23: Multi-year trend – Operational data
Multi-year trend – Operational data 2017 2018 2019 2020 2021 EAFD throughput (kt) 661.0 717.1 665.8 687.0 885.7 EAFD average capacity 84.7% 92.0% 80.7% / 90.1%1) 83.2% 83.3%2) utilisation (%) Waelz oxide (WOX) sold (kt) 217.8 240.9 217.6 239.2 291.0 Zinc LME price (€/t) €2,572 €2,468 €2,276 €1,979 €