Befesa Sa · XETR:BFSA
Befesa Sa — Q4 2021 Earnings Presentation
29 slides from Befesa Sa's earnings presentation, Feb 24, 2022
Slide 1: Full Year 2021 Preliminary Earnings Presentation
Full Year 2021 Preliminary Earnings Presentation 24 February 2022
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
Electric arc furnace steel dust (EAFD) recycling plant at Asúa-Erandio, Spain 01 Highlights Javier Molina - CEO
Slide 4: FY record EBITDA; AZR acquisition; MDAX; China plants
✓FY record EBITDA; ✓AZR acquisition; ✓MDAX; ✓China: 1st plant in commercial operations, 2nd construction completed €60.8m €197.6m €117.9m €99.7m Q4’21 adjusted EBITDA Record FY’21 adj. EBITDA FY’21 Operating cash flow Net profit more than doubled yoy 43% up yoy (Q4’20: €42.4m) 56% or €71m up yoy €25
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 adjusted EBITDA at €197.6m, all-time-high; yoy growth driven by strong base metal prices and continued solid volumes with plant utilisation at pre-pandemic levels; Acquired Zinc US operations delivering as expected Adjusted EBITDA bridge FY 2020 to 2021 (€m) +€70.6 / +
Slide 7: Steel Dust Recycling Services
Steel Dust Recycling Services FY adjusted EBITDA at €148.3m, performing at strongest earnings level with 33% margin, driven mainly by favourable zinc prices; Overall plant utilisation continued at pre-pandemic levels; Acquired US operations delivering as expected Adjusted EBITDA bridge FY 2020 to 20
Slide 8: Aluminium Salt Slags Recycling Services
Aluminium Salt Slags Recycling Services FY adjusted EBITDA at €48.8m, delivered record level results, up 69% yoy; Mainly driven by higher aluminium metal prices yoy; Overall plant utilisation continued at solid pre-pandemic levels c.90% Adjusted EBITDA bridge FY 2020 to 2021 (€m) +€20.0 / +69.4% -5.
Slide 9: Cash flow, net debt & leverage
Cash flow, net debt & leverage Continued strong liquidity of c.€300m including record €224m cash on hand, post-dividend & acquisition funding; Net leverage of x2.16 at YE’21, improved vs. x3.10 at YE’20 Adjusted EBITDA to total cash flow (€m) Mainly: 197.6 €27 China local loans €36 AZR acquisition,
Slide 10: Zinc prices & hedging strategy
Zinc prices & hedging strategy Non-US operations fully hedged up to & incl. Oct’24; US operations up to & incl. Jul’24; c.2.5 years; Improving earnings & cash flows visibility Zinc LME1) Befesa’s hedges2) Average blended Zinc LME price vs. Befesa’s hedging prices (€/t) €2,317 c.€2,350 c.€2,400 €2,23
Slide 11: Growth projects & outlook
Nanjing City, location of Befesa China’s HQ 03 Growth projects & outlook Javier Molina - CEO
Slide 12: Befesa closed AZR acquisition; global leader in EAFD recycling
Befesa closed AZR acquisition on 17 August; Operations delivering as expected; Driving progress on integration & related synergies BEFESA #1 Europe (Steel Dust & Salt Slags) a US / North American leader (Steel Dust) #1 Asia1) (Steel Dust) Global leader1) in EAFD recycling EAFD recycling EAFD recycli
Slide 13: China I and China II plants
China I Changzhou plant, Jiangsu province Key facts of the plant: 1 • 1st EAFD recycling plant in China • Capacity to recycle 110kt EAFD p.a. • Total investment: c.€42m • Location: Changzhou (Jiangsu province) Status update: Long-term financing closed Jul’20 Construction completed on budget In comme
Slide 14: ESG at Befesa
EAFD recycling plant at Gyeongju, South Korea 04 ESG at Befesa Javier Molina - CEO
Slide 15: ESG at Befesa
ESG at Befesa Key player within the circular economy, with c.2 million tonnes recycled and c.1.5 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 towards a more sustai
Slide 16: Investor agenda & appendix
Waelz kiln at EAFD recycling plant in Gyeongju, South Korea 05 Investor agenda & appendix
Slide 17: Investor's agenda
Investor’s agenda Financial calendar Investor conferences 2022 H1 2022 H2 2022 Prelim. YE Results 2021 & Conf. Call ODDO BHF Forum 25th Edition (virtual) Frankfurt – Commerzbank & ODDO BHF Corporate Thursday, 24 February 2022 6 & 7 January 2022 – ODDO BHF Conference 2022 Annual Report 2021 Commerzba
Slide 18: Q4 2021/20 – Key financials
Q4 2021/20 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1) €151.7 €20.1 €85.6 -€10.0 €247.4 yoy change +€63.3 / +71.5% +€7.3 / +57.5% +€20.9 / +32.3% -€2.0 / - +€89.4 / +56.6% Reported EBITDA €35.4 €10.6 €10.1 €
Slide 19: FY 2021/20 – Key financials
FY 2021/20 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1) €455.8 €77.3 €329.9 -€41.4 €821.6 yoy change +€110.1 / +31.8% +€10.4 / +15.5% +€106.0 / +47.3% -€9.1 / - +€217.3 / +36.0% Reported EBITDA €134.6 €26.5 €
Slide 20: Multi-year trend – Key financials
Multi-year trend – Key financials1) (€m, unless otherwise stated) 2017 2018 2019 2020 2021 Revenue €667.42) €720.1 €647.9 €604.3 €821.6 Reported EBITDA €153.0 €176.0 €159.6 €123.5 €189.6 Reported EBITDA margin % 22.9%2) 24.4% 24.6% 20.4% 23.1% Adjusted EBITDA €172.43) €176.0 €159.6 €127.03) €197.63)
Slide 21: Q4 2021/20 – Operational data – Steel Dust Recycling Services
Q4 2021/20 – Operational data – Steel Dust Recycling Services Q4 2020 Q4 20211) yoy change EAFD 185.1 322.4 +137.4 / +74.2% throughput (kt) EAFD average 89.2% 87.8% -142 bps capacity utilisation (%) Waelz oxide 56.8 98.4 +41.6 / +73.4% (WOX) sold (kt) Zinc LME price €2,205 €2,942 +€737 / +33.4% (€/t
Slide 22: FY 2021/20 – Operational data – Steel Dust Recycling Services
FY 2021/20 – Operational data – Steel Dust Recycling Services FY 2020 FY 20211) yoy change EAFD 687.0 885.7 +198.7 / +28.9% throughput (kt) EAFD average 83.2% 83.3% +9 bps capacity utilisation (%) Waelz oxide 239.2 291.0 +51.8 / +21.7% (WOX) sold (kt) Zinc LME price €1,979 €2,544 +€566 / +28.6% (€/t
Slide 23: Q4 2021/20 – Operational data – Aluminium Salt Slags Recycling Services
Q4 2021/20 – Operational data – Aluminium Salt Slags Recycling Services Q4 20201) Q4 2021 yoy change Salt Slags & 111.6 92.0 -19.6 / -17.5% SPL treated (kt) Salt Slags & 83.8% 81.1% -262 bps SPL avg. cap. utilisation (%) Aluminium 50.6 43.4 -7.2 / -14.2% alloys produced (kt) Secondary Alu 98.3% 84.0
Slide 24: FY 2021/20 – Operational data – Aluminium Salt Slags Recycling Services
FY 2021/20 – Operational data – Aluminium Salt Slags Recycling Services FY 20201) FY 2021 yoy change Salt Slags & 444.6 395.0 -49.6 / -11.2% SPL treated (kt) Salt Slags & 83.9% 87.8% +390 bps SPL avg. cap. utilisation (%) Aluminium 174.3 185.8 +11.4 / +6.6% alloys produced (kt) Secondary Alu 85.0% 9
Slide 25: Multi-year trend – Operational data
Multi-year trend – Operational data 2017 2018 2019 2020 2021 EAFD throughput (kt) 661.0 717.1 665.8 687.0 885.7 EAFD average capacity 84.7% 92.0% 80.7% / 90.1%1) 83.2% 83.3%2) utilisation (%) Waelz oxide (WOX) sold (kt) 217.8 240.9 217.6 239.2 291.0 Zinc LME price (€/t) €2,572 €2,468 €2,276 €1,979 €
Slide 26: Consolidated key financials
Consolidated key financials Q4 adjusted EBITDA at €60.8m, record level, up 43% yoy, mainly driven by strong metal prices; Contribution from acquired Zinc US operations (c.4.5 months of ‘21); Volumes continued solid with plant utilisation at pre-pandemic levels; EBITDA above pre-pandemic levels (up 4
Slide 27: Steel Dust Recycling Services
Steel Dust Recycling Services Q4 adjusted EBITDA at €45.6m; Favourable zinc LME prices & TC, partially offset by lower zinc hedging prices; Contribution from acquired US operations (c.4.5 months of ‘21); EBITDA above pre-pandemic levels (up 36% vs. Q4’19) Adjusted EBITDA bridge Q4 2020 to 2021 (€m)
Slide 28: Aluminium Salt Slags Recycling Services
Aluminium Salt Slags Recycling Services Q4 Adjusted EBITDA at €14.7m, all-time high, up 36% yoy, mainly driven by strong aluminium metal prices yoy; Better salt slags & SPL partially offset by lower alu alloys; Adj. EBITDA above pre-pandemic levels (up 78% vs. Q4’19) Adjusted EBITDA bridge Q4 2020 t
Slide 29: Cash flow, net debt & leverage
Cash flow, net debt & leverage Continued strong liquidity of c.€300m including record €224m cash on hand, post-dividend & acquisition funding; Net leverage of x2.16 at YE’21, improved vs. x3.10 at YE’20 and vs. x2.33 at Q3’21 Adjusted EBITDA to total cash flow (€m) 60.8 -12.3 44.0 Incl. €6 non-recur