Befesa Sa · XETR:BFSA
Befesa Sa — Befesa Zinc — H1 2012 Earnings Presentation
22 slides from Befesa Sa's earnings presentation, Aug 28, 2012
Slide 1: First Half 2012 Earnings Presentation
BEFESA ZINC Innovative Technology Solutions for Sustainability BEFESA ZINC First Half 2012 Earnings Presentation 28th August 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 H1 Business Highlights 2 H1 Financial Highlights 3 Outlook 4 Appendix 3
Slide 4: H1 2012 Highlights
BEFESA ZINC H1 2012 Highlights Strong results despite challenging market conditions 120.9 M€ Revenues, an increase of 14 % Y-o-Y 41.2 M€ EBITDA, an increase of 18 % Y-o-Y 34.0 % EBITDA Margin, versus 32.8 % in H1 2011 94.0 % Average Load Factor, versus 99.2 % in H1 2011 90,482 tons WOX sold, an incr
Slide 5: H1 2012 Highlights (cont'd)
BEFESA ZINC H1 2012 Highlights (cont’d) Solid performance of steel dust and strong improvement in stainless steel 1 Positive effect in revenues of increase in hedge from €1,560 to €1,703, partially offset by decrease in LME spot price 2 Increase in WOX production and sales (6.6 % and 18.2 % Y-o-Y) S
Slide 6: Agenda
BEFESA ZINC Agenda 1 H1 Business Highlights 2 H1 Financial Highlights 3 Outlook 4 Appendix 6
Slide 7: Consolidated figures
BEFESA ZINC Consolidated figures Strong first half of 2012, benefiting from Turkey consolidation, and recovery in stainless steel H1 2012 EBITDA reached €41.2 m, representing an average EBITDA Margin of 34 % Net Debt is €232.0m, representing a Net Debt / EBITDA ratio of 2.9x * Revenues for H1 and Q2
Slide 8: Steel Dust Segment
BEFESA ZINC Steel Dust Segment Solid results in steel dust in Europe despite current turmoil and Turkey providing growth Excluding Turkey, throughput in H1 2012 decreased 5 % Y-o-Y due to planned maintenance stops Revenues increased by +8.7 % in H1 2012 vs H1 2011 due to higher volumes of WOX sold (
Slide 9: Stainless Steel Segment
BEFESA ZINC Stainless Steel Segment Strong H1 confirms momentum shown in Q1 H1 2012 revenues increased 34.0 % Y-o-Y, mainly due to the increase of the throughput by 70.8 %, and the sharp increase in alloys sold during this quarter (+91.7 %) Improvement in load factor Y-o-Y from 43.9 % to current 74.
Slide 10: Cash Flow & Liquidity
BEFESA ZINC Cash Flow & Liquidity Stable cash flow generation and strong liquidity position Operating activities: €6.7m decrease in H1 2012 vs 2011 in cash generated from operating activities, mainly due to interests paid on bond (€13.3m) Investing activities: €15.9m outflow from investing activitie
Slide 11: Agenda
BEFESA ZINC Agenda 1 H1 Business Highlights 2 H1 Financial Highlights 3 Outlook 4 Appendix 11
Slide 12: Outlook
BEFESA ZINC Outlook We maintain a positive outlook for the rest of 2012 1 2012 load factor will not be affected at current levels of EAF production Steel Dust 2 Similar levels of EAF production expected for 2012 than for 2011 3 Strong demand for WOX from Zinc smelters 1 Good momentum achieved in H1
Slide 13: Outlook (cont'd)
BEFESA ZINC Outlook (cont’d) Growth strategy focused on Turkey, benefiting from flexible and uncommitted capex plan Attractiveness of the market and expansion constrains in existing facility 1 drives new growth strategy in Turkey New 110kt plant in Adana (near Iskenderun): Land already acquired, and
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 20 months 4.000 January 2012 January 2013 3.000 €1,703tn €1,700tn 2.000 €1,560/tn 1.000 January 2014 €1,550tn - Monthly Zinc Spot (€/tn) Hedging Price (€/tn) Avera
Slide 15: Agenda
BEFESA ZINC Agenda 1 Q1 Business Highlights 2 Q1 Financial Highlights 3 Outlook 4 Appendix 15
Slide 16: Detailed Balance Sheet
BEFESA ZINC Detailed Balance Sheet Figures in € ‘000 Assets 30.06.2012 31.12.2011 Equity and Liabilities 30.06.2012 31.12.2011 Non-current assets: Equity: Intangible assets: Of the Parent: Goodwill 279.162 279.162 Share capital 25.010 25.010 Unrealized Asset and Liability Revaluation Other intangibl
Slide 17: Detailed Consolidated P&L
BEFESA ZINC Detailed Consolidated P&L Figures in € ‘000 H1 Q2 2012 2011 Variation 2012 2011 Variation Revenue 120.935 106.162 14.773 58.688 52.415 6.273 Cost of Sales (70.879) (63.149) (7.730) (35.443) (31.675) (3.768) Other operating income 2.466 2.066 400 1.200 1.201 (1) Gross Profit 52.522 45.079
Slide 18: Detailed Cash Flow
BEFESA ZINC Detailed Cash Flow H1 Q2 Figures in € ‘000 2012 2011 Variation 2012 2011 Variation Cash Flows from Operating Activities Profit for the period before tax 22.181 23.109 (928) 9.711 9.318 393 Adjustments due to: Amortization/ Depreciation 6.461 6.296 165 3.029 3.117 (88) (Profit)/Loss on di
Slide 19: Detailed Segment Reporting
BEFESA ZINC Detailed Segment Reporting H1 2012 Q2 2012 EBITDA EBITDA Figures in € ‘000 Revenue EBITDA Margin Revenue EBITDA Margin Steel Dust 91,399 38,471 42.1% 44,006 17,879 40.6% Stainless Steel 29,536 2,705 9.2% 14,682 881 6.0% Total 120,935 41,176 34.0% 58,688 18,760 32.0% H1 2011 Q2 2011 EBITD
Slide 20: Detailed Operational Data
BEFESA ZINC Detailed Operational Data Crude Steel Dust H1 Q2 2012 2011 Variation 2012 2011 Variation (in Dry Metric Tons) Throughput Crude Steel Dust 262,616.0 243,534.8 +7.8% 128,383.6 118,761.7 +8.1% Average Load Factor 94.0% 99.2% 91.9% 96.2% Waelz Oxide Production 90,370.5 84,814.4 +6.6% 44,293.
Slide 21: 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 22: Q&A
BEFESA ZINC Q&A 22