Befesa Sa · XETR:BFSA

Befesa Sa — Q3 2014 Earnings Presentation

38 slides from Befesa Sa's earnings presentation, Nov 20, 2014

  1. Slide 1: 3Q 2014 Earnings Presentation

    BEFESA BEFESA 3Q 2014 Earnings Presentation 20th November 2014

  2. 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

  3. 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

  4. 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

  5. Slide 5: Befesa 3Q 2014 Highlights

    BEFESA Befesa 3Q 2014 Highlights Third quarter revenues of €158 million, Up 5% compared to 3Q’13. Higher volumes in steel and secondary aluminum Strong 3Q EBITDA of €34 million, up 9% YoY. Margins at 21% vs. 20% in 3Q 2013. Cost savings and new South Korea plant Solid and stable financing position a

  6. 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

  7. Slide 7: Zinc Business Performance

    BEFESA Zinc Business Performance Strong performance in crude steel over the 3Q with growth in volumes. South Korea plant delivering at full capacity. Weak stainless steel. Operational Performance  EAF Throughput Highlights - 156.033 tons of crude steel dust treated in 3Q  Crude steel dust deliveri

  8. Slide 8: Zinc Prices & Hedging

    BEFESA Zinc Prices & Hedging Zinc prices during the 3Q 2014 maintained the upward trend of 1H ending the quarter close to 1.800 €/t 2.200 2012: 2013: 1.703 €/t 1.700 €/t 1Q 2014: 2Q 2014: Zinc Prices 2.000 1.550 €/t 1.500 €/t  During the 3Q 2014 zinc prices traded above 2013 on average 1.800  Attr

  9. 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

  10. Slide 10: Aluminum Performance

    BEFESA Aluminum Performance Aluminum performance mainly driven by stronger secondary aluminum volumes while salt slag volumes remains slightly weaker YoY Operational Performance Highlights  Salt Slag/SPLs Recycled  Strong secondary aluminum volumes - 100.875 tons of salt slag/SPL recycled in 3Q ‘1

  11. Slide 11: 2014 Growth Strategy – Aluminum and IES

    BEFESA 2014 Growth Strategy – Aluminum and IES Bernburg Plant to start operational production in early December. Persian Gulf Project Progressing … Starting Detailed Engineering. Bernburg  Construction of the plant finalized as planned, cold commissioning successfully carried out and hot trial curr

  12. 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

  13. 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

  14. Slide 14: Crude Steel Financial Highlights

    BEFESA Crude Steel Financial Highlights Strong crude steel segment 3Q EBITDA fueled by significant increase in zinc prices and operations in South Korea plant 3Q Highlights Y-o-Y Crude Steel Revenues (€m) 2013 2014  Crude steel dust segment revenues increased by 4% and EBITDA by 15% in 3Q Year over

  15. Slide 15: Stainless Steel Financial Highlights

    BEFESA Stainless Steel Financial Highlights Positive stainless steel quarter mainly driven by metal prices and cost saving measures despite stainless market still depressed Stainless Revenues (€m) 3Q Highlights Y-o-Y 2013 2014  Stainless steel dust segment revenues increased by 8% due to average ni

  16. Slide 16: Zinc Cash Flow & Liquidity

    BEFESA Zinc Cash Flow & Liquidity Cash flow generation influenced by the results of the operations  Operating activities: During 9M ‘14 the net cash flows generated by operating activities amounted to €19,6 million (a €1,2 million decrease compared to the same period in 2013), mainly due to extraor

  17. 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

  18. Slide 18: Aluminum Financial Highlights

    BEFESA Aluminum Financial Highlights Improved EBITDA 3Q 2014 driven mainly by cost savings initiatives and Alu prices despite weaker salt slag volumes Aluminum Revenues (€m) 3Q Highlights Y-o-Y 2013 2014  Increase in revenues of 13% mainly driven by 196,0 201,2 higher secondary aluminum alloys prod

  19. 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

  20. Slide 20: IES Financial Highlights

    BEFESA IES Financial Highlights Despite still slow industrial environment, cost saving measures lead to higher EBITDA and Margin than previous year IES Revenues (€m) 3Q Highlights Y-o-Y 2013 2014  Lower volumes in waste treated in Spain, Latin America and in Sulfur segment  Revenues and EBITDA neg

  21. 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

  22. Slide 22: Consolidated Financial Highlights

    BEFESA Consolidated Financial Highlights Strong EBITDA growth and margin improvement in 3Q 2014 reflects the positive impact of cost management and higher Zinc / Alu prices Revenues (€m) Highlights  3Q 2014 consolidated revenues amounted 468,8 M€ 469,6 M€ to €158 million, 5% growth compared to the

  23. Slide 23: Consolidated P&L

    BEFESA Consolidated P&L 3Q 2014 EBITDA Up 9% or €2,6 million vs 2013… Net Income Up 194% or €7,3 million Consolidated P&L (‘000 euros) BEFESA Profit & Loss Statement ('000 euros) 3Q 2013 3Q 2014 Change 9M 2013 9M 2014 Change Revenue 151.312 158.405 7.093 468.829 469.631 802 EBITDA 30.881* 33.509 2.6

  24. Slide 24: Consolidated Cash Flow Statement

    BEFESA Consolidated Cash Flow Statement  Operating activities: During 9M´14 the net cash flows generated by operating activities amounted to €28,3 million (a €142,5 million increase compared to the same period in 2013), mainly due to better performance of the working capital and the increased earni

  25. Slide 25: Debt Structure & Net Debt Position – Sep YTD 2014

    BEFESA Debt Structure & Net Debt Position – Sep YTD 2014 Solid and stable financing position at 3 levels (Zinc, Non-Zinc and Corporate) with total leverage at x4,9 Net Debt / LTM Vendor Note 49 M€ Total Net Sep 2014 EBITDA PIK Note 156 M€ Debt(1) 642 M€ x4,9(2) Befesa Medio Ambiente Ring fence struc

  26. 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

  27. Slide 27: 2014 Business Focus

    BEFESA 2014 Business Focus Main priorities for 2014 on track • Focus on operational excellence in order to achieve the cost savings target for 2014 in a sustainable manner • Start operations in our new Bernburg plant • Expand plant and maintain leadership position of Befesa Zinc in South Korea • Gro

  28. Slide 28: Questions

    BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook Questions 28

  29. Slide 29: Appendix

    BEFESA Business Zinc Business Non-Zinc Business Business Introduction Financials Q&A Appendix Highlights Performance Performance Outlook 29

  30. Slide 30: Consolidated P&L

    BEFESA Consolidated P&L BEFESA Profit & Loss Statement ('000 euros) 3Q 2013 3Q 2014 Change 9M 2013 9M 2014 Change From continuing operations: Revenue 151.312 158.405 7.093 468.829 469.631 802 +/- Changes in inventories of finished goods and work in progress (1.016) (1.928) (912) 7.262 (2.476) (9.738

  31. Slide 31: Consolidated Balance Sheet

    BEFESA Consolidated Balance Sheet BEFESA Balance Sheet ('000 euros) Assets 30.09.14 31.12.13 Equity and liabilities 30.09.14 31.12.13 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

  32. Slide 32: Consolidated Cash Flow Statement

    BEFESA Consolidated Cash Flow Statement BEFESA Cash Flow Statement ('000) 3Q 2013 3Q 2014 Change 9M 2013 9M 2014 Change Cash flows from operating activities: Profit (loss) for the period before tax (5.791) 2.906 8.697 20.723 18.088 (2.635) Adjustments due to: Depreciation and amortisation charge 8.3

  33. Slide 33: Zinc Detailed Balance Sheet

    BEFESA Zinc Detailed Balance Sheet BEFESA ZINC Balance Sheet ('000 euros) Assets 30.09.2014 31.12.2013 Equity and Liabilities 30.09.2014 31.12.2013 Non-current assets: Equity: Intangible assets: Of the Parent: Goodwill 286.287 286.287 Share capital 25.010 25.010 Other intangible assets 8.127 8.818 U

  34. Slide 34: Zinc Detailed P&L

    BEFESA Zinc Detailed P&L BEFESA ZINC Profit & Loss Statement ('000 euros) 3Q 2013 3Q 2014 Change 9M 2013 9M 2014 Change Revenue 64.479 67.822 3.343 186.101 187.185 1.084 Cost of sales (40.719) (37.948) 2.771 (118.392) (113.562) 4.830 Other operating income 802 579 (223) 4.050 6.072 2.022 Gross Profi

  35. Slide 35: Zinc Detailed Cash Flow

    BEFESA Zinc Detailed Cash Flow BEFESA ZINC Cash Flow Statement ('000 euros) 3Q 2013 3Q 2014 Change 9M 2013 9M 2014 Change Cash Flows From Operating Activities Profit for the period before tax 7.239 12.544 5.305 22.450 26.105 3.655 Adjustments due to: Amortization/ Depreciation 3.912 4.624 712 11.289

  36. Slide 36: Zinc Detailed Operational Data

    BEFESA Zinc Detailed Operational Data 1Q 2Q 3Q 1Q 2Q 3Q 3Q '14 vs '13 9M '14 vs '13 Change Change 2013 2013 2013 2014 2014 2014 (tons) (%) (tons) (%) Crude steel waste recycling Installed capacity1 tons 560.300 560.300 670.300 670.300 670.300 670.300 0 0,0% 0 0,0% Crude steel waste processed tons 12

  37. Slide 37: Aluminum Detailed Operational Data

    BEFESA Aluminum Detailed Operational Data 1Q 2Q 3Q 1Q 2Q 3Q 3Q '14 vs '13 9M '14 vs '13 Change Change 2013 2013 2013 2014 2014 2014 (tons) (%) (tons) (%) Salt slags and SPLs recycling Installed capacity6 tons 630.000 630.000 630.000 630.000 630.000 630.000 0 0,0% 0 0,0% Salt slags recycled tons 112.

  38. Slide 38: Industry Environmental Solutions Detailed Operational Data

    Industry Environmental Solutions BEFESA Detailed Operational Data 1Q 2Q 3Q 1Q 2Q 3Q 3Q '14 vs '13 9M '14 vs '13 Change Change 2013 2013 2013 2014 2014 2014 (tons) (%) (tons) (%) Industrial waste management (Spain) Industrial waste treated: tons 170.961 175.886 150.723 133.503 132.319 123.354 (27.369

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