Slide 1: Full Year 2020 Preliminary Earnings Presentation
Full Year 2020 Preliminary Earnings Presentation 23 February 2021
Slide 2: Disclaimer
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. Such s
Slide 3: Highlights
EAFD recycling plant at Asúa-Erandio, Spain 01 Highlights Javier Molina - CEO
Slide 4: Executive summary
Executive summary €42.4m €127.0m €47.6m Q4 EBITDA adjusted1) FY EBITDA adjusted1) Net profit strongest quarter in 2020, upper third of €100-€135m guidance, down from €82.7m in 2019, same level as Q4 2019 at €42.5m -€33m / -20% yoy corresponding to a €1.40 EPS • Continued QoQ recovery • Predominantly
Slide 5: Financial results
Secondary aluminium production plant at Bernburg, Germany 02 Financial results Wolf Lehmann - CFO
Slide 6: Consolidated key financials
Consolidated key financials FY EBITDA adjusted €127m1), at upper third of €100 to €135m guidance range; Unfavourable zinc LME prices and treatment charge (TC) partially offset by favourable zinc hedges EBITDA bridge FY 2019 to 2020 (€m) -€32.6 / -20.4% 159.6 -0.6 +4 EAFD throughput -32.5 -1 Stainles
Slide 7: Steel Dust Recycling Services
Steel Dust Recycling Services FY EBITDA at €98m; Resilient EAFD throughput amid COVID-19 and favourable zinc hedges offset by lower zinc LME prices and unfavourable zinc TC EBITDA bridge FY 2019 to 2020 (€m) -€27.6 / -22.0% 125.3 2.9 +4 EAFD (Turkey) -33.1 -1 Stainless 97.7 2.6 -45 Zinc LME Op’l exc
Slide 8: Alu Salt Slags Recycling Services
Alu Salt Slags Recycling Services FY EBITDA adjusted at €29m; Reduced salt slags & SPL treated partially offset by slightly improved FMB prices; Resilient 85% plant utilisation EBITDA bridge FY 2019 to 2020 (€m) -€4.2 / -12.7% 33.0 -3.5 0.6 28.8 2) -1.3 Salt slags & SPL Alu alloy FMB EBITDA 2019 Vol
Slide 9: Cash flow, net debt & leverage
Cash flow, net debt & leverage Strong €230m liquidity (€155m cash balance + €75m RCF entirely undrawn) even after dividend distribution and funding China Adjusted EBITDA to total cash flow (€m) 127.0 -0.8 -17.0 Rigorous WC -16.6 92.5 management -25.1 -28.8 15.3 -24.9 29.1 Mainly China China local 30
Slide 10: Zinc prices and hedging strategy
Zinc prices and hedging strategy Hedges extended to October 2023; Improved earnings & cash flows visibility Market zinc price vs. zinc hedges (€/t) € 3,500 LME zinc Forwards Average blended €2,317 € 2,500 ~€2,300 €2,239 ~€2,150 ~€2,200 €2,280 €2,136 € 1,500 2019 2020 2021 2022 2023 Hedging price (€/
Slide 11: Growth projects & outlook
Nanjing City, Location of Befesa China’s HQ 03 Growth projects & outlook Javier Molina- CEO
Slide 12: China I
China I Changzhou plant, Jiangsu province Key facts of the plant: • 1st EAFD recycling plant in China • Capacity to recycle 110kt EAFD p.a. • Total investment: c. €42m • Location: Changzhou (Jiangsu province) Status update: Cold and hot commissioning planned for Mar/Apr Long-term financing closed Ju
Slide 13: China II
China II Xuchang plant, Henan province Key facts of the plant: • 2nd EAFD recycling plant in China • Capacity to recycle 110kt EAFD p.a. • Total investment: c. €42m • Location: Xuchang (Henan province) Status update: Foundation works / building structures progressing well; Completion expected after
Slide 14: Preliminary outlook
Preliminary outlook Volume / Capacity utilisation Base metal prices Continued recovery from COVID-19 and Expecting a positive yoy earnings contribution incremental China volume in H2 • Expecting to continue step-by-step recovery closer to • Expecting unfavourable TC trend from 2019 to 2020 to pre-CO
Slide 15: ESG at Befesa
EAFD recycling plant at Gyeongju, South Korea 04 ESG at Befesa Javier Molina- CEO
Slide 16: Sustainability at Befesa
Sustainability at Befesa Key player within the circular economy, with c. 1.5 million tonnes recycled and c. 1.3 million tonnes of valuable materials recovered annually, that contributes significantly to increase efficiency of raw material use in the metals industry and promotes the transition toward
Slide 17: Investor agenda & appendix
Waelz kiln at EAFD recycling plant in Gyeongju, South Korea 05 Investor agenda & appendix
Slide 18: Investor agenda
Investor agenda Financial calendar Investor conferences H1 2021 H2 2021 Annual Report 2020 Pan-European Small/Mid-Cap CEO Conf. Frankfurt – Commerzbank Corporate Thursday, 25 March 2021 16 March 2021 – J.P. Morgan Conference 2021 31 Aug - 2 Sep – Commerzbank Berenberg DACH & Nordic Conf. 2021 17 Mar
Slide 19: Q4 2020/19 – Key financials
Q4 2020/19 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1) €88.5 €12.7 €64.7 -€7.9 €158.0 yoy change +€3.4 / +4.0% -€8.1 / -39.0% +€9.3 / +16.7% +€2.1 / - +€6.6 / +4.4% Reported EBITDA €28.6 €1.8 €5.6 €3.0 €38.9
Slide 20: FY 2020/19 – Key financials
FY 2020/19 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1) €345.8 €67.0 €223.9 -€32.3 €604.3 yoy change -€14.3 / -4.0% -€14.6 / -17.9% -€21.3 / -8.7% +€6.6 / - -€43.6 / -6.7% Reported EBITDA €97.7 €13.3 €12.1 €0
Slide 21: Multi-year trend – Key financials
Multi-year trend – Key financials1) (€m, unless otherwise stated) 2017 2018 2019 2020 Revenue €667.42) €720.1 €647.9 €604.3 Reported EBITDA €153.0 €176.0 €159.6 €123.5 Reported EBITDA 22.9%2) 24.4% 24.6% 20.4% margin Adjusted EBITDA €172.43) €176.0 €159.6 €127.04) Adjusted EBITDA 25.8%2) 24.4% 24.6%
Slide 22: 2020/19 – Operational data – Steel Dust Recycling Services
2020/19 – Operational data – Steel Dust Recycling Services Q4 2019 Q4 2020 yoy change FY 2019 FY 2020 yoy change EAFD 177.1 185.1 +8.0 / +4.5% 665.8 687.0 +21.2 / +3.2% throughput (kt) EAFD average 85.1% / 89.0% +385 bps / 80.7% / 83.0% +234 bps / capacity 94.6%1) -561 bps 90.1%1) -708 bps1) utilisa
Slide 23: 2020/19 – Operational data – Aluminium Salt Slags Recycling Services
2020/19 – Operational data – Aluminium Salt Slags Recycling Services Q4 2019 Q4 2020 yoy change FY 2019 FY 2020 yoy change Salt Slags & 126.3 111.6 -14.7 / -11.6% 492.6 444.6 -48.0 / -9.7% SPL treated (kt) Salt Slags & 94.5% 83.5% / -1,101 bps / -773 92.9% 83.7% / -929 bps / SPL avg. cap. 86.8%1) bp
Slide 24: Multi-year trend – Operational data
Multi-year trend – Operational data 2017 2018 2019 2020 EAFD 661.0 717.1 665.8 687.0 throughput (kt) EAFD average capacity 84.7% 92.0% 80.7% / 90.1%1) 83.0% utilisation (%) Zinc LME price (€/t) €2,572 €2,468 €2,276 €1,979 Zinc hedging €1,876 €2,051 €2,317 €2,239 price (€/t) Zinc blended price2) €2,1
Slide 25: Crude steel production - COVID-19 tracker
Crude steel production - COVID-19 tracker Continued month-over-month recovery in crude steel production during 2020; Befesa demonstrated resilient volumes and capacity utilisation levels again 2020 crude steel production1) (yoy % change, unless otherwise stated) FY’19 FY’20 Jan Feb Mar Apr May Jun J