Befesa Sa · XETR:BFSA
Befesa Sa — Befesa Zinc — FY2011 Earnings Presentation
21 slides from Befesa Sa's earnings presentation, Mar 1, 2012
Slide 1: Fiscal Year 2011 Earnings Presentation
BEFESA ZINC Innovative Technology Solutions for Sustainability BEFESA ZINC Fiscal Year 2011 Earnings Presentation 1st March 2012
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 Q4 and FY Business Highlights 2 Q4 and FY Financial Highlights 3 Outlook 4 Appendix 3
Slide 4: Full Year 2011 Highlights
BEFESA ZINC Full Year 2011 Highlights Despite challenging macro economic conditions, Befesa Zinc shows resilience delivering solid financial results 2011 Revenues: €222.7M for FY (+8% Y-o-Y) Strong financial 2011 EBITDA: €73.3M for FY (+1% Y-o-Y), 32.9% Ebitda Margin results in 2011 2011 Attributabl
Slide 5: Full Year 2011 Highlights (cont'd)
BEFESA ZINC Full Year 2011 Highlights (cont’d) Results in line with expectations. We continue to deliver on our strategy 1 Slightly better performance of plants 2 No operational stoppages other than annual maintenance overhauls Steel Dust 3 Improved performance of Turkish plant operations by 33% 4 H
Slide 6: Agenda
BEFESA ZINC Agenda 1 Q4 and FY Business Highlights 2 Q4 and FY Financial Highlights 3 Outlook 4 Appendix 6
Slide 7: Consolidated Figures
BEFESA ZINC Consolidated Figures Stable and solid performance despite economic turmoil 2011 Ebitda reached €73.3m, representing an average Ebitda Margin of 32.9% Net Debt is €224.1m, representing a Net Debt Ebitda ratio of 3.0x Revenues Full Year Revenues by quarter Ebitda Full Year Ebitda by quarte
Slide 8: Steel Dust Segment
BEFESA ZINC Steel Dust Segment Strong performance in crude steel in line with expectations Excluding Turkey, throughput in 2011 increased 3.4% Y-o-Y due to better performance of plants Revenues -14.4% 4Q 2011 vs 3Q 2011 due to lower volumes as a result of higher stocking (-15.2%) and LME Zinc price
Slide 9: Stainless Steel Segment
BEFESA ZINC Stainless Steel Segment Positive H2 results show momentum in segment Q4 Revenues decreased 1.6% Y-o-Y and FY 2011 increased 5.4% mainly due to the increase of the throughput by 2.2%, compensated by the lack of alloys sold during this quarter Improvement in load factor Y-o-Y from 49.3% to
Slide 10: Cash Flow & Liquidity
BEFESA ZINC Cash Flow & Liquidity Stable cash flow generation and strong liquidity position Operating activities: €5.7m increase vs 2010 in cash generated from operating activities offset by increase in taxes paid and financial expenses Investing activities: €14.7m increase in outflow vs 2010 due to
Slide 11: Agenda
BEFESA ZINC Agenda 1 Q4 and FY Business Highlights 2 Q4 and FY Financial Highlights 3 Outlook 4 Appendix 11
Slide 12: Outlook
BEFESA ZINC Outlook Positive outlook for 2012 and adapting hedging strategy At current levels of steel production in Europe, 2012 load 1 factor will not be affected Steel Dust 2 Expectation for 2012 European steel production in line with 2011 levels 3 Strong demand for WOX from Zinc smelters 1 Good
Slide 13: Outlook: Flexible and uncommitted capex plan
BEFESA ZINC Outlook Flexible and uncommitted capex plan enable to adapt growth strategy 1 Construction postponed due to market uncertainty in steel dust volumes in southern Spain Zinc Sur / 2 Detailed engineering and preliminary works will carry on Bilbao through 2012 3 Start of operations date stil
Slide 14: Zinc Prices
BEFESA ZINC Zinc Prices Hedging policy compensating for pressures in Zinc Prices and providing visibility to the cash flows for the next 25 months 4.000 3.000 January 2012 January 2013 €1,703/tn €1,700/tn 2.000 €1,560/tn 1.000 January 2014 €1,550/tn 0 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Dec-06
Slide 15: Agenda
BEFESA ZINC Agenda 1 Q4 and FY Business Highlights 2 Q4 and FY Financial Highlights 3 Outlook 4 Appendix 15
Slide 16: Detailed Balance Sheet
BEFESA ZINC Detailed Balance Sheet Figures in € ‘000 Assets 31.12.2011 31.12.2010 Equity and Liabilities 31.12.2011 31.12.2010 Non-current assets: Equity: Intangible assets: Of the Parent: Goodwill 279.162 267.850 Share capital 25.010 25.010 Other intangible assets 5.208 1.059 Unrealised Asset/Liabi
Slide 17: Detailed Consolidated P&L
BEFESA ZINC Detailed Consolidated P&L 4Q 2010 FY 2010 4Q 2011 FY 2011 Consolidated Income Statement Data Revenue 52,490 206,793 52,320 222,748 Cost of Sales (30,439) (122,132) (33,476) (135,334) Other operating income 1,145 3,454 4,079 6,949 Depreciation and amortization charges (3,214) (13,046) (3,
Slide 18: Detailed Cash Flow
BEFESA ZINC Detailed Cash Flow 2011 2010 Figures in € ‘000 Q1 Q2 Q3 Q4 2011FY Q1 Q2 Q3 Q4 2010FY Cash Flows from Operating Activities Profit for the period before tax 13.791 9.318 10.915 8.205 42.229 12.409 14.232 12.811 14.327 53.779 Adjustments due to: Amortization/ Depreciation 3.179 3.117 3.445
Slide 19: Detailed Segment Reporting
BEFESA ZINC Detailed Segment Reporting 4Q 2010 FY 2010 Figures in € ‘000 Revenue EBITDA EBITDA Margin Revenue EBITDA EBITDA Margin Steel dust 41,368 16,754 40.5% 160,665 69,595 43.3% Stainless steel 11,122 1,680 15.1% 46,128 3,268 7.1% Total 52,490 18,434 35.1% 206,793 72,863 35.2% 4Q 2011 FY 2011 R
Slide 20: Detailed Operational Data
BEFESA ZINC Detailed Operational Data Crude Steel Dust Period ended September30 Fourth Quarter Full Year 2010 2011 % Var. 2010 2011 % Var. 2010 2011 %Var. (in Dry Metric Tons) (in Dry Metric Tons) (in Dry Metric Tons) Throughput crude steel dust 348,882.0 404,957.3 16.1% 121,244.0 138,113.5 13.9% 47
Slide 21: Q&A
BEFESA ZINC Q&A 21