Slide 1: Q3 2017 Earnings Presentation
BEFESA BEFESA Q3 2017 Earnings Presentation November 28, 2017
Slide 2: Forward-looking Statement
BEFESA Forward-looking Statement 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
Slide 3: Key Highlights
BEFESA Key Highlights Continued double-digit growth in revenue and earnings driven by strong volumes, favorable prices and operational excellence in both core businesses Profitability improved to 23% / 19% Adjusted EBITDA / EBIT Margin respectively (1) Strong cash generation and reducing leverage(2)
Slide 4: Consolidated Key Financials
BEFESA Consolidated Key Financials Continued growth in revenue, earnings and profitability driven by strong volumes, favorable prices and operational excellence Revenue Highlights (€m) 450.4 547.9 ▪ Q3 YTD ‘17 Revenue increased +€98m / +22% YoY … primarily due to: 149.6 173.5 - higher volumes in bot
Slide 5: Steel Dust Recycling Services
BEFESA Steel Dust Recycling Services YoY increase in revenues & earnings driven by higher EAFD throughput, Waelz oxide volumes, favorable zinc price and operational excellence Revenue Volumes & Capacity Utilization (€m) EAFD Throughput (kt) Waelz Oxide Sold (kt) 243.5 199.8 73.6 86.5 488.3 164.7 429
Slide 6: Aluminium Salt Slags Recycling Services
BEFESA Aluminium Salt Slags Recycling Services Growth in revenues & earnings driven by good volumes, increasing alu alloy prices, and operational excellence. Revenue(1) Volumes & Capacity Utilization (€m) Salt Slags & SPL Treated (kt) Alu Alloys Produced (kt) 216.1 274.3 66.7 82.6 379.5 362.5 17.5 1
Slide 7: Consolidated Cash Flow and Cash & Cash Equivalents
BEFESA Consolidated Cash Flow and Cash & Cash Equivalents Strong cash flow from operations of €54m, up +48% YoY … €88m of Cash & Cash Equivalents at Q3 ‘17 close Cash Flow and Cash & Cash Equivalents (€m) Q3 YTD Q3 YTD ▪ Strong cash flow from operations of €54m Change (+€17m / +48% YoY) primarily dr
Slide 8: Hedging Strategy
BEFESA Hedging Strategy Hedging extended through swaps to mid-2020 improving visibility of earnings and cash flows for the next ~3 years Market Zinc Price vs. Zinc Hedge (€/ton) ▪ Extended hedging period up to July 2020 3,000 ▪ Increased volume coverage … Higher volume of 7.7 kt/month or 2,500 92.4k
Slide 9: Consolidated Net Debt / Leverage / New Capital Structure
BEFESA Consolidated Net Debt / Leverage / New Capital Structure Net debt of €451m … reduced leverage further down to x2.7 at Q3 ’17 close … Signed new capital structure resulting in ~60% lower financial costs Net Debt and Leverage(1) New Capital Structure (€m) 324.9 538.6 ▪ Moody’s and S&P assigned
Slide 10: Financial Calendar
BEFESA Financial Calendar Week of February 20, 2018: Preliminary Year-End Results of 2017 Thursday, March 22, 2018: Publication of Report for Full Year 2017 & Analyst Call Thursday, April 26, 2018: Annual General Meeting Thursday, May 24, 2018: Publication of Statement for Q1 2018 & Analyst Call Fri