Slide 1: Full Year 2017 Earnings Presentation
BEFESA BEFESA Full Year 2017 Earnings Presentation March 15, 2018
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, including assumptions, opinions and views of Befesa and its affiliates as well as information cited from third
Slide 3: Today's Presenters
BEFESA Today’s Presenters CEO since 2000 CFO since 2014 Since 2008 Javier Molina Wolf Lehmann Rafael Pérez CEO CFO; including Director of responsibilities Investor Relations for Operational & Strategy Excellence and IT ▪ 20+ years in operational and ▪ Director of Investor Relations ▪ In the company
Slide 4: Key Highlights
BEFESA Key Highlights Continued double-digit growth in revenue and earnings driven by strong volumes, favorable prices and operational excellence in both core businesses Profitability improved to 20% Adjusted EBIT Margin (1) (compared to 17% in 2016) Strong cash generation and reduced leverage(2) fu
Slide 5: Consolidated Key Financials
BEFESA Consolidated Key Financials Continued solid growth in revenue, earnings and profitability driven by strong volumes, favorable prices and operational excellence Revenue Highlights (€m) 724.8 ▪ FY ‘17 Revenue increased +€113m / +18% 161.3 176.9 611.7 YoY … primarily due to: - higher volumes in
Slide 6: Steel Dust Recycling Services
BEFESA Steel Dust Recycling Services YoY increase in revenues & earnings driven by higher EAFD throughput, Waelz oxide volumes, favorable zinc price and operational excellence Revenue EAFD Throughput & Capacity Utilization (€m) (kt, %) 332.1 281.1 661.0 81.3 88.6 588.8 172.8 159.0 Q4 '16 Q4 '17 FY '
Slide 7: Aluminium Salt Slags Recycling Services
BEFESA Aluminium Salt Slags Recycling Services Growth in revenues & earnings driven by good volumes, increasing alu alloy prices, and operational excellence Revenue(1) Volumes & Capacity Utilization (€m) Salt Slags & SPL Treated (kt) Alu Alloys Produced (kt) 353.5 285.5 69.4 79.2 509.9 492.4 20.7 21
Slide 8: Share Performance
BEFESA Share Performance Befesa’s share price has developed positively since the IPO with still significant value upside when comparing to peers Performance of Befesa Share vs. Market Key Highlights ▪ Befesa share developed positively, closing 2017 at €40.25, up by 44% (compared to the issue price)
Slide 9: Hedging Strategy
BEFESA Hedging Strategy Hedging extended through swaps to cover full year 2020 … Improving visibility of earnings and cash flows for the next 3 years Market Zinc Price vs. Zinc Hedge ▪ Extended hedging period to fully cover 2020 (€/ton) ▪ Increased volume coverage … Higher volume of 7.7 kt/month or
Slide 10: Consolidated Net Debt / Leverage / Cash Flow / New Capital Structure
Consolidated Net Debt / Leverage / BEFESA Cash Flow / New Capital Structure Strong Cash Flow reduced Net Debt to €406m and Leverage to x2.4 at YE ’17 … Net Debt and Leverage Rate Evolution(1) Free Cash Flow(2) (€m) 524 (€m) 118 406 Cash Conversion(3) 83% 77% ~Doubled Cash on Hand from €62m YE’16 133
Slide 11: Mid-Term Growth Roadmap
BEFESA Mid-Term Growth Roadmap Accelerated top- and bottom-line growth through a well-defined strategy • Mid-term continuing double-digit growth … • 2017 to 2018 growing but rather single digit … 1 Utilization • New capacities coming online 2019 onwards (not 2018) and • Increase plant utilization of
Slide 12: Investor Relations
BEFESA Investor Relations Financial Calendar Meet Befesa … ✓ Monday, February 19, 2018: ✓ January 8-9, 2018 - Commerzbank Publication of Preliminary Earnings Full Year 2017 New York, German Investment Seminar ✓ March 8, 2018 – Citibank ✓ Thursday, March 15, 2018: London, Global Resources Conference