Befesa Sa · XETR:BFSA
Befesa Sa — Q1 2021 Earnings Presentation
23 slides from Befesa Sa's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation 27 April 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
EAF steel dust recycling plant at Asúa-Erandio, Spain 01 Highlights Javier Molina - CEO
Slide 4: Executive summary
Executive summary €48.8m €26.5m Q1 EBITDA Operating cash flow strongest quarter in history €18.1m up yoy (Q1 2020: €8.4m) 46% up yoy (Q1’20: €33.6m), 15% up over Q4’20 at €42.4m €164.0m of cash on hand, €9.4m up vs. YE’20 at €154.6m Plant utilisation recovered to pre-COVID levels at ≥ 90% Leverage x
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 Q1 EBITDA at €48.8m, a new record level, benefited from favourable market prices; Volumes returned to pre-COVID levels with strong plant utilisation levels at ≥ 90% EBITDA bridge Q1 2020 to 2021 (€m) +€15.3 / +45.6% 48.8 - Operational excellence 16.6 Inflation 33.6 -1.3 F
Slide 7: Steel Dust Recycling Services
Steel Dust Recycling Services Q1 EBITDA at €36.5m; Favourable zinc LME prices and TC, partially offset by lower zinc hedging prices; Overall plant utilisation back to pre-COVID levels at around 90% EBITDA bridge Q1 2020 to 2021 (€m) +€10.6 / +40.7% 36.5 - 11.1 Operational excellence 26.0 Inflation -
Slide 8: Aluminium Salt Slags Recycling Services
Aluminium Salt Slags Recycling Services Q1 EBITDA at €12.3m; Higher aluminium alloy FMB prices partially offset by lower salt slags & SPL treated (UK closure); Overall plant utilisation recovered to pre-COVID-19 levels at above 90% EBITDA bridge Q1 2020 to 2021 (€m) +€3.7 / +43.0% 12.3 - 8.6 4.5 -0.
Slide 9: Cash flow, net debt & leverage
Cash flow, net debt & leverage Strong €239m liquidity (€164m cash balance + €75m RCF entirely undrawn) EBITDA to total cash flow (€m) 48.8 -12.6 -6.3 Mainly China Seasonal, -3.4 26.5 expansion AR incl. TC -4.6 China local loans -23.4 9.4 10.9 EBITDA WC change & Interests Taxes Operating cash Mainten
Slide 10: Zinc prices & hedging strategy
Zinc prices & hedging strategy Hedges further extended to January 2024; Improved earnings & cash flows visibility Zinc LME price vs. hedges (€/t) € 3,500 Zinc LME Forwards Average blended €2,317 € 2,500 c. €2,300 €2,239 c. €2,150 c. €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 EAF steel dust recycling plant in China • Capacity to recycle 110kt EAF steel dust p.a. • Total investment: c. €42m • Location: Changzhou (Jiangsu province) Status update: Long-term financing closed July 2020 Construction comple
Slide 13: China II
China II Xuchang plant, Henan province Key facts of the plant: • 2nd EAF steel dust recycling plant in China • Capacity to recycle 110kt EAF steel dust p.a. • Total investment: c. €42m • Location: Xuchang (Henan province) Status update: Long-term financing closed December 2020 Construction progressi
Slide 14: FY 2021 Guidance
FY 2021 Guidance Lower-end: €165m EBITDA Upper-end: €190m EBITDA (above 2019 of €160m) (new record) Volume / • Moderate recovery from COVID-19 • Strong recovery from COVID-19 Capacity utilisation • China ramping up & delivering commercial • China ramping up & delivering commercial output in H2 on sc
Slide 15: ESG at Befesa
EAF steel dust 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 EAF steel dust recycling plant in Gyeongju, South Korea 05 Investor agenda & appendix
Slide 18: Investor agenda
Investor agenda Financial calendar Next investor conferences Q2 2021 H2 2021 Annual General Meeting Berenberg UN Sustainable Development Frankfurt – Commerzbank Corporate Wednesday, 30 June 2021 Goals Conference 2021 Conference 2021 20 April 2021 – Berenberg 31 Aug – 2 Sep – Commerzbank Kepler Digit
Slide 19: Q1 2021/20 – Key financials
Q1 2021/20 – Key financials (€m, unless otherwise stated) Steel Salt Secondary Corporate & Total Dust Slags Aluminium eliminations Befesa Revenue1) €100.9 €19.8 €82.4 -€10.5 €192.6 yoy change -€0.3 / -0.3% -€2.3 / -10.3% +€17.0 / +26.0% -€0.8 / - +€13.6 / +7.6% EBITDA €36.5 €5.9 €6.4 €0.0 €48.8 yoy
Slide 20: 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 21: Q1 2021/20 – Operational data – Steel Dust Recycling Services
Q1 2021/20 – Operational data – Steel Dust Recycling Services Q1 2020 Q1 2021 yoy change EAF steel dust 185.7 181.1 -4.6 / -2.5% throughput (kt) EAF Steel dust 90.2% 89.0% -124 bps average capacity utilisation (%) Waelz oxide 67.8 66.7 -1.0 / -1.5% (WOX) sold (kt) Zinc LME price €1,930 €2,279 +€349
Slide 22: Q1 2021/20 – Operational data – Aluminium Salt Slags Recycling Services
Q1 2021/20 – Operational data – Aluminium Salt Slags Recycling Services Q1 20201) Q1 2021 yoy change Salt Slags & 124.7 104.4 -20.3 / -16.3% SPL treated (kt) Salt Slags & 94.4% 94.1% -25 bps SPL avg. cap. utilisation (%) Aluminium 47.9 51.3 +3.4 / +7.0% alloys produced (kt) Secondary Alu 93.8% 101.5
Slide 23: Multi-year trend – Operational data
Multi-year trend – Operational data 2017 2018 2019 2020 EAF steel dust 661.0 717.1 665.8 687.0 throughput (kt) EAF steel dust average 84.7% 92.0% 80.7% / 90.1%1) 83.0% capacity utilisation (%) Waelz oxide (WOX) 217.8 240.9 217.6 239.2 sold (kt) Zinc LME price (€/t) €2,572 €2,468 €2,276 €1,979 Zinc h