Slide 1: Third Quarter 2019 Presentation
BEFESA Third Quarter 2019 Presentation 31 October 2019
Slide 2: Disclaimer
BEFESA 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.
Slide 3: Today's Presenters
BEFESA Today’s Presenters CEO since 2000 CFO since 2014 Since 2008 Javier Molina Wolf Lehmann Rafael Pérez CEO CFO; including Director of responsibilities Investor Relations for Operational & Strategy Excellence and IT ▪ Leading the Company ▪ 20+ years in finance and ▪ Director of Investor Relations
Slide 4: 9M Highlights
BEFESA 9M Highlights • Steel Dust throughput 489kt (-9% YoY): Turkey upgrade • Salt Slags ~flat at 366kt in 9M (-3% YoY) Operational performance as expected, • Core businesses normalised at high >90% utilisation with Turkey back in production in Aug • Aluminium alloys at 133kt in 9M (+5% YoY): Furna
Slide 5: Consolidated Key Financials
BEFESA Consolidated Key Financials Q3 EBITDA at €37.0m (€-3.0m / -7.5% YoY): Lower volume due to Turkey upgrade; Unfavourable TC & market prices; Partially offset by higher hedges, recovering Stainless operations and ´18 Aluminium furnace upgrade delivering Revenue (€m) ▪ Q3 revenue down 5.8% YoY to
Slide 6: Steel Dust Recycling Services
BEFESA Steel Dust Recycling Services Q3 EBITDA at €30.2m, (€-1.3m YoY); driven by lower volume in Turkey -&- unfavourable TC; Mostly offset by improved hedges & Stainless operations Revenue EAF dust throughput & capacity utilisation (€m) €-9.0m / -3.2% (thousand tonnes, % of annual installed capacit
Slide 7: Aluminium Salt Slags Recycling Services
BEFESA Aluminium Salt Slags Recycling Services Q3 EBITDA at €6.1m (€-1.9m YoY) mainly driven by lower aluminium alloy prices; Plant utilisation >90% normalised for furnace upgrades Revenue(1) Volumes & capacity utilisation (€m) 258.1 (thousand tonnes, % of annual installed capacity) 224.2 Salt Slags
Slide 8: Consolidated Net Debt / Leverage
Consolidated Net Debt / Leverage BEFESA / Cash Flow / Capital Structure Paid €45m dividend in July; Closed Q3 with €101m cash and x2.7 leverage; Capital structure with long 7-year tenor up to 2026 at attractive interest rates Net debt 9M’19 EBITDA to total cash flow – main drivers (€m, as of 30 Sept
Slide 9: Zinc Prices & Hedging Strategy
BEFESA Zinc Prices & Hedging Strategy Hedging up to Oct ´21 improves earnings & cash flows visibility for next ~2 yrs € 3,000 Market zinc price vs. zinc hedges (€/tonne) € 2,500 ~€2,310 ~€2,250 €2,168 9M ’21: €2,160 ~€2,200 € 2,000 €2,051 Closed ~half of Q3 ’21 €1,939 €1,876 targeted hedge volume €
Slide 10: Mid-Term Growth Roadmap
BEFESA Mid-Term Growth Roadmap Accelerating growth through well defined business plan; Hedging in place and executing top 5 growth projects + China 1 Hedging • 2019: 92.4kt at ~€2,310/t • 2020: 92.4kt at ~€2,250/t • 9M 2021: 57.3kt at ~€2,200/t 2 Organic growth 2019/20 focus – top 5 projects: Indica
Slide 11: Turkey – Plant Upgrade Completed
BEFESA 2 Turkey – Plant Upgrade Completed Turkey 65kt to 110kt capacity expansion completed on time & budget Iskenderun, Turkey – Steel dust recycling annual capacity expanded from 65kt to 110kt View of the plant View of the plant and the Waelz kiln ✓ Electric Arc Furnace (EAF) dust recycling plant
Slide 12: Korea – WOX Washing Plant Status
BEFESA 2 Korea – WOX Washing Plant Status To date on time and budget; Targeting commissioning & ramp-up in December Pohang, South Korea – Status of construction of WOX Washing plant Thickener tank Wastewater treatment plant ✓ “Greenfield” investment in the 1st WOX washing plant of Befesa at Asia ✓ T
Slide 13: Barcelona – Furnace Upgrade Status
BEFESA 2 Barcelona – Furnace Upgrade Status Barcelona furnace upgrade to date on time and budget; Ramp-up in November Barcelona, Spain – Refurbished 2nd Aluminium plant with high efficiency furnaces Tilting furnace Salt slags handling Cooling Equipment ✓ Barcelona 2nd Aluminium plant refurbishment w
Slide 14: China – Plant #1: Jiangsu – Construction Progressing
BEFESA 3 China – Plant #1: Jiangsu – Construction Progressing Changzhou plant construction progressing; Ramp-up scheduled by end of 2020 1 Plant #1 in Changzhou (Jiangsu province) Piling works – Plant buildings Key facts of the plant • 1st Electric Arc Furnace (EAF) dust recycling plant in China wit
Slide 15: China – Plant #2: Henan – Ground Breaking Mid-Nov
BEFESA 3 China – Plant #2: Henan – Ground Breaking Mid-Nov Ground breaking scheduled for mid November; Preparing site for construction 2 Plant #2 in Xuchang (Henan province) Project / contract signing event, 08 April 2019 Key facts of the plant • 2nd EAF dust recycling plant in the country • Capacit
Slide 16: Summary / Outlook
BEFESA Summary / Outlook Expecting higher volumes in Q4 • Steel dust higher throughput mainly due to Turkey back online in both core businesses with • Aluminium Salt Slags higher volumes mainly driven by utilisation rates at >90% on average, upgraded higher efficiency furnace in Barcelona in line wi
Slide 17: Sustainability at Befesa
BEFESA Sustainability at Befesa Befesa has a strong commitment for a more sustainable world • Befesa recycles annually more than 1.5 million tonnes of hazardous residues, avoiding landfilling and recovering more than 600,000 tonnes of valuable materials • Befesa’s business model is vital part of the
Slide 18: Investor Agenda
BEFESA Investor Agenda Financial Calendar Meet Befesa … Thursday, 26 March 2020: ✓ 14 May 2019 – Midcap Partners Annual Report 2019 & Analyst Call Paris, Annual Small & Midcap Conference ✓ 21-23 May 2019 – Berenberg New York, US Conference 2019 Thursday, 30 April 2020: ✓ 28 May 2019 – Mainfirst Q1 2