Slide 1: First Quarter 2012 Earnings Presentation
BEFESA ZINC Innovative Technology Solutions for Sustainability BEFESA ZINC First Quarter 2012 Earnings Presentation 16th May 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 Q1 Business Highlights 2 Q1 Financial Highlights 3 Outlook 4 Appendix 3
Slide 4: Q1 2012 Highlights
BEFESA ZINC Q1 2012 Highlights Continues strong performance in current uncertain market environment 62.3 M€ Revenues, an increase of 16% Y-o-Y 22.4 M€ Ebitda, an increase of 23% Y-o-Y 36.0% Ebitda Margin, versus 33.8% in Q1 2011 96.1% Load Factor, versus 100% in Q1 2011 47,589 tons WOX sold, an incr
Slide 5: Q1 2012 Highlights (cont'd)
BEFESA ZINC Q1 2012 Highlights (cont’d) Another quarter of solid results with some growth coming from Turkey 1 Positive effect in revenues of increase in hedge from €1,560 to €1,703, partially offset by decrease in LME spot price Steel Dust 2 Increase in WOX volumes production (+6.1% Y-o-Y) 3 Improv
Slide 6: Agenda
BEFESA ZINC Agenda 1 Q1 Business Highlights 2 Q1 Financial Highlights 3 Outlook 4 Appendix 6
Slide 7: Consolidated Figures
BEFESA ZINC Consolidated Figures Another strong quarter benefiting from Turkey consolidation, and some recovery in stainless steel 1Q 2012 EBITDA reached €22.4 m, representing an average EBITDA Margin of 36% Net Debt is €223.8m, representing a Net Debt EBITDA ratio of 2.9x * Revenues for Q1 Revenues
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 Q1 2012 decreased 4% Y-o-Y due to planned maintenance stops Revenues increased by +14. 4% for Q1 2012 vs Q1 2011 due to higher volumes of WOX sold
Slide 9: Stainless Steel Segment
BEFESA ZINC Stainless Steel Segment Quite positive Q1 results show momentum in segment Q1 2012 revenues increased 20.7% Y-o-Y, mainly due to the increase of the throughput by 64.6%, compensated by the reduction in alloys sold during this quarter Improvement in load factor Y-o-Y from 44.5% to current
Slide 10: Cash Flow & Liquidity
BEFESA ZINC Cash Flow & Liquidity Stable cash flow generation and strong liquidity position Operating activities: €4.9m increase in Q1 2012 vs 2011 in cash generated from operating activities, also increased by lower taxes and financial expenses Investing activities: €8m increase in outflow vs Q1 20
Slide 11: Agenda
BEFESA ZINC Agenda 1 Q1 Business Highlights 2 Q1 Financial Highlights 3 Outlook 4 Appendix 11
Slide 12: Outlook
BEFESA ZINC Outlook We maintain a positive outlook for the rest of 2012 2012 load factor will not be affected at current levels of 1 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 of Q1 2012 expe
Slide 13: Outlook: Growth strategy focused on Turkey
BEFESA ZINC Outlook Growth strategy focused on Turkey, benefiting from flexible and uncommitted capex plan 1 Attractiveness of the market and expansion constrains in existing facility drives new growth strategy in Turkey 2 New 110kt plant in Adana (near Iskenderun). Land already acquired, and permit
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 3.000 January 2012 January 2013 €1,703/tn €1,700/tn 2.000 €1,560/tn 1.000 January 2014 €1,550/tn 0 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Dec-06
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 31.03.2012 31.12.2011 Equity and Liabilities 31.03.2012 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 Q1 Figures in € ‘000 2012 2011 Variation Consolidated Income Statement Data Revenue 62,247 53,747 8,500 Cost of Sales (35,436) (31,474) (3,962) Other operating income 1,266 865 401 Depreciation and amortization charges (3,432) (3,179) (253) General & Administrat
Slide 18: Detailed Cash Flow
BEFESA ZINC Detailed Cash Flow Q1 Figures in € ‘000 2012 2011 Variation Cash Flows from Operating Activities Profit for the period before tax 12,470 13,791 (1,321) Adjustments due to: Amortization/ Depreciation 3,432 3,179 253 (Profit)/Loss on disposal of non-current assets 0 11 (11) Change in provi
Slide 19: Detailed Segment Reporting
BEFESA ZINC Detailed Segment Reporting Q1 2011 Q4 2010 EBITDA EBITDA Figures in € ‘000 Revenue EBITDA Margin Revenue EBITDA Margin Steel dust 41,441 17,656 42.6% 41,368 16,754 40.5% Stainless steel 12,306 512 4.2% 11,122 1,680 15.1% Total 53,747 18,168 33.8% 52,490 18,434 35.1% Q1 2012 Q4 2011 EBITD
Slide 20: Detailed Operational Data
BEFESA ZINC Detailed Operational Data Q1 Crude Steel Dust 2012 2011 % Var. (in Dry Metric Tons) Throughput crude steel dust 134,233 124,773 +7.6% Average Load factor 96.1% 100.0% Waelz Oxide Production 46,077 43,422 +6.1% Zinc contained in production 30,210 28,492 +6.0% Waelz Oxide Sold 47,590 37,14
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