Befesa Sa · XETR:BFSA
Befesa Sa — Q1 2015 Earnings Presentation
35 slides from Befesa Sa's earnings presentation, May 26, 2015
Slide 1: First Quarter 2015 Earnings Presentation
BEFESA BEFESA First Quarter 2015 Earnings Presentation 26th May 2015
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 as well as assumptions made and information currently available to Befesa and its affiliates. Such statements r
Slide 3: Introduction
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Rafael Pérez Head of Strategy & Investor Relations 3
Slide 4: Business Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Javier Molina Chief Executive Officer 4
Slide 5: Befesa 1Q 2015 Highlights
BEFESA Befesa 1Q 2015 Highlights Good 1Q 2015 in Steel & Alu segments with total revenues of €187m, up 19% YoY. Higher commodity prices and Bernburg contribution. Strong consolidated 1Q EBITDA of €37 million, up 33% YoY. Margins at 20% above 18% of 1Q 2014. Solid and stable financing position at 3 l
Slide 6: Zinc Business Performance
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Asier Zarraonandia Managing Director of Zinc Business 6
Slide 7: Zinc Business Performance
BEFESA Zinc Business Performance Volume in crude steel impacted by more standstills plants during the quarter than previous year Operational Performance EAF Throughput Highlights - 141.535 tons of crude steel dust treated in 1Q Crude steel dust deliveries in line with 2015 (-10% vs 1Q 2014 and -9% v
Slide 8: Zinc Prices & Hedging
BEFESA Zinc Prices & Hedging Zinc prices during the start of 2015 maintained the upward trend seen during 2H 2014 ending the quarter above 1.900 €/t 2.200 2012: 2013: 1.703 €/t 1.700 €/t 1Q 2014: 1.550 €/t 2Q 2014: 1.500 €/t Zinc Prices 2.000 During the 1Q 2015 zinc prices traded on average slightly
Slide 9: Non-Zinc Business Performance
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Javier Molina Chief Executive Officer 9
Slide 10: Aluminum Performance
BEFESA Aluminum Performance Good performance mainly driven by stronger secondary alu volumes as well as salt slag volumes mainly driven by new plant in Germany Operational Performance Salt Slag/SPLs Recycled Highlights - 116.275 tons of salt slag/SPL recycled in 1Q 2015 Strong secondary aluminum vol
Slide 11: 2015 Growth Strategy – Aluminum and IES
BEFESA 2015 Growth Strategy – Aluminum and IES Good ramp up in the Bernburg plant with start of operations in early Dec’14. Persian Gulf Project Progressing … Starting Detailed Engineering. New Secondary Aluminum Plant in Bernburg (Germany) Installed capacity to produce 90.000 tons of aluminum alloy
Slide 12: Financials
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Wolf Lehmann Chief Financial Officer 12
Slide 13: Zinc Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Zinc Financial Highlights 13
Slide 14: Crude Steel Financial Highlights
BEFESA Crude Steel Financial Highlights Better YoY crude steel segment EBITDA mainly due to the increase in zinc prices Revenues Highlights Crude Steel Revenues (€m) 2014 2015 Crude steel dust segment revenues increased by 12% y/y mainly driven by: - Zinc blended price increased by 21% - 25% increas
Slide 15: Stainless Steel Financial Highlights
BEFESA Stainless Steel Financial Highlights Positive stainless steel quarter mainly driven by higher volumes and cost saving measures Stainless Revenues (€m) Revenues Highlights 2014 2015 During 1Q 2015 Stainless steel dust segment revenues increased by 3% compared to the same period of 2014 mainly
Slide 16: Zinc Cash Flow & Liquidity
BEFESA Zinc Cash Flow & Liquidity Cash flow generation influenced by the results of the operations Operating activities: During 1Q 2015 the net cash flows generated by operating activities amounted to €15,0 million (in line with 1Q 2014). Lower volumes of WOX sales collected offset by higher zinc pr
Slide 17: Aluminum Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Aluminum Financial Highlights 17
Slide 18: Aluminum Financial Highlights
BEFESA Aluminum Financial Highlights Strong 1Q 2015 EBITDA of €9m (10% margin) driven mainly by Bernburg contribution and higher Alu prices Aluminum Revenues (€m) 2014 2015 Revenues Highlights During 1Q 2015 revenues increased 34% (compared to 1Q 2014) mainly driven by higher aluminum alloy average
Slide 19: IES Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook IES Financial Highlights 19
Slide 20: IES Financial Highlights
BEFESA IES Financial Highlights Higher sales YoY driven by higher volume in Sulfur, lower EBITDA driver by lower margins in the residues treated IES Revenues (€m) 2014 2015 Revenues Highlights During 1Q 2015 revenues increased 10% (compared to 1Q 2014) mainly driven by higher volumes of residues tre
Slide 21: Consolidated Financial Highlights
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Consolidated Financial Highlights 21
Slide 22: Consolidated Financial Highlights
BEFESA Consolidated Financial Highlights EBITDA growth & margin improve in 1Q ‘15 reflects the effect of higher Zinc & Alu prices, as well as Bernburg contribution Revenues (€m) Highlights 156,6 M€ 187,0 M€ 181,6 M€ 187,0 M€ 1Q 2015 consolidated revenues amounted 15% 17% 17% 15% to €187 million, +19
Slide 23: Consolidated P&L
BEFESA Consolidated P&L 1Q 2015 EBITDA Up 33% or €9 million vs. 1Q 2014 … Net Income Up 300% or €9 million Consolidated P&L (‘000 euros) BEFESA Profit & Loss Statement ('000 euros) 1Q 2014 1Q 2015 Change Revenue 156.569 186.953 30.384 EBITDA 28.117 37.278 9.161 Depreciation, amortisation and impairm
Slide 24: Consolidated Cash Flow Statement
BEFESA Consolidated Cash Flow Statement Operating activities: During 1Q 2015 the net cash flows generated by operating activities amounted to €18,3 million (a €7,9 million increase compared to 1Q 2014), mainly due to the better performance of all the business units in 2015. Investing activities: Dur
Slide 25: Debt Structure & Net Debt Position – March YTD 2015
BEFESA Debt Structure & Net Debt Position – March YTD 2015 Solid and stable financing position at 3 levels (Zinc, Non-Zinc and Corporate) with total leverage at x3,8 Net Debt / LTM Total Net Mar 2015 EBITDA PIK Note 164 M€ Debt(1) 568 M€ x3,8(2) Befesa Medio Ambiente Ring fence structure Zinc Non Zi
Slide 26: Outlook
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Javier Molina Chief Executive Officer 26
Slide 27: 2015 Business Focus
BEFESA 2015 Business Focus Main priorities for 2015 focused on parallel path of operational excellence and profitable growth for the next years Main priorities for 2015 on track • Expand plant and maintain leadership position of Befesa Zinc in South Korea, a key market for Befesa • Deliver our new s
Slide 28: Questions
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Questions 28
Slide 29: Appendix
BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook 29
Slide 30: Consolidated P&L
BEFESA Consolidated P&L BEFESA Profit & Loss Statement ('000 euros) 1Q 2014 1Q 2015 Change From continuing operations: Revenue 156.569 186.953 30.384 +/- Changes in inventories of finished goods and work in progress 309 (520) (829) Cost of sales (Note 24) (73.690) (91.839) (18.149) Other income 2.22
Slide 31: Consolidated Balance Sheet
BEFESA Consolidated Balance Sheet BEFESA Balance Sheet ('000 euros) Assets 31.03.15 31.12.14 Equity and liabilities 31.03.15 31.12.14 Equity: Non-current assets Attibutable to owners of the parent - Intangible assets Share capital 13 13 Goodwill 373.860 373.860 Reserve for valuation adjustments defe
Slide 32: Consolidated Cash Flow Statement
BEFESA Consolidated Cash Flow Statement BEFESA Cash Flow Statement ('000 euros) 1Q 2014 1Q 2015 Change Cash flows from operating activities: Profit (loss) for the period before tax 4.550 16.817 12.267 Adjustments due to: Depreciation and amortisation charge 8.884 9.454 570 Share of profit (loss) of
Slide 33: Zinc Detailed Balance Sheet
BEFESA Zinc Detailed Balance Sheet BEFESA ZINC Balance Sheet ('000 Euros) Assets 31.03.2015 31.12.2014 Equity and Liabilities 31.03.2015 31.12.2014 Non-Current Assets: Equity: Intangible assets: Of the Parent: Goodwill 286.287 286.287 Share capital 25.010 25.010 Other intangible assets 6.747 6.973 U
Slide 34: Zinc Detailed P&L
BEFESA Zinc Detailed P&L BEFESA ZINC Profit & Loss Statement ('000 euros) 1Q 2014 1Q 2015 Change Revenue 59.758 66.047 6.289 Cost of sales (37.039) (36.121) 918 Other operating income 1.382 694 (688) Gross Profit 24.101 30.620 6.519 Depreciation and amortization charge (4.053) (4.072) (19) General a
Slide 35: Zinc Detailed Cash Flow
BEFESA Zinc Detailed Cash Flow BEFESA ZINC Cash Flow Statement ('000 euros) 1Q 2014 1Q 2015 Change Cash Flows From Operating Activities Profit for the period before tax 6.402 12.622 6.220 Adjustments due to: Amortization/ Depreciation 4.053 4.072 19 Impairment Test 0 0 0 (Profit)/Loss on disposal of