Company Presentation December 2017

Transcription

1 Company Presentation December 07

2 At a Glance Befesa European market leader in providing mission critical hazardous waste recycling services to the steel and aluminium industry. Q LTM 07 Sales : 709m Q LTM 07 Adj. EBIT : m nd Alu 6% % % More than 90% of EBITDA generated from two core >0% EBITDA margin operations; low capital intensity nd Alu % % 8% Aluminium # Position in Europe (c. -0% Market Share by Capacity ) and Asia # Position in Europe in (c. -0% Market Share by Capacity ) % Adj. EBIT Margin (Q LTM 07), % Adj. EBIT Margin in (Q LTM 07), 7kt Volume Treated in Q LTM 07 09kt Volume Recycled in Q LTM 07 Relationships >yrs Relationships >yrs McKinsey market study (commissioned by Befesa). Including Stainless Steel. Including Spent Pot Lining (SPL). Unaudited. Excluding China

3 Company History Befesa has grown successfully through organic initiatives and acquisitions in Europe as well as in emerging markets. Founded in Germany 987 Metallgesellschaft, German industrial conglomerate, creates Berzelius Umwelt Service (B.U.S) 99 B.U.S AB, together with two other companies, group their environmental assets in Spain creating Berzelius Felguera (Befesa) 006 Befesa acquires a 00% stake in B.U.S, becoming the European leader in steel dust recycling Acquisitions and Turnarounds 007 Acquisition of Alcasa, Spanish leader in the secondary aluminium market from Qualitas Equity Partners Successful Greenfield Project (State of the Art Technology) Befesa becomes the Inauguration of the nd European leader in aluminium plant in Bernburg salt slags recycling after acquiring plants in Germany from Agor Successful IPO 07 Successful IPO on Frankfurt Stock Exchange 998 Befesa IPO at the Madrid and Bilbao Stock Exchanges 000 Abengoa acquires a % stake in Befesa from B.U.S to develop its environmental services business (stake increased over time) 0 Delisting from the Madrid and Bilbao Stock Exchanges 00 Entry in the Turkish market through JV with Canadian Silvermet 0 Entry in the Asian market by acquiring successive stakes in the Korean Hankook Inauguration of WOX washing plant at Gravelines Entered New Markets Through a JV and Acquisition with a Subsequent Turnaround 0 Triton acquires Befesa 0 Commissioning of the second kiln in Korea, converting it into the largest treatment plant and further acquisition of stakes Successful Expansion in South Korea Befesa subsequently acquired 00%.

4 Befesa has plants in the steel dust recycling segment as well as 8 plants in the aluminium salt slags recycling service segment and is present in 7 countries in Europe and Asia. Employees :, Headquarters: Ratingen (Germany) Market Leader with Close Proximity to Clients # Europe (c.-0%) Plants 6 Countries Erandio Capacity: 6kt Valera Capacity: 0kt Gravelines Capacity: 00kt Recytech Capacity: 0kt Whitchurch Capacity: 80kt Oxide Lünen Capacity: 70kt Duisburg Capacity: 87kt Aser Capacity: 60kt ScanDust Capacity: 6kt Hannover Capacity: 0kt Bernburg Capacity: 7kt Freiberg Capacity: 9kt # # Asia (c.0%) Europe (c.-0%) Aluminium 7 Plants Countries Valladolid Capacity: 0kt Barcelona Capacity: 66kt Aluminium Iskenderun Capacity: 6kt Korea Capacity: 0kt Oxide / Plants Leaching Crude Secondary Aluminium Production Plants Stainless 0/0 JV. Excl. China (lack of publicly available information). Excluding idle plant Töging (Germany). Joint venture with Canadian Silvermet. Average number of employees as of September 0, 07

5 Critical for Steel Producers A leading services business, Befesa helps steel producers manage their environmental liability by collecting and recycling their hazardous waste. Clients/Suppliers: Steel Producers (Mini-Mills) Collection of and Regulatory Upfront Service Fee Input: Sale of WOX Clients: Consumers of Zinc Concentrates (Smelters) Input: Zinc Concentrate / WOX Zinc Content in Dust Payment for Zinc Content Create Environmental Liability with Legal Obligation to Recycle Hazardous Waste Revenue Contribution Service Fee ~0-0% Waelz Oxide Waelz Kiln Output: WOX Waelz Oxide Slags Revenue Contribution WOX Sale ~80-90% Output: Zinc Collection fees provide stable revenues supplemented by the sale of recovered metal content Zinc contained product. Ultimately again used for steel production. Illustrative, split depends on the zinc price.

6 Critical for Aluminium Industry Similar service model as steel dust, focused on collecting and treating hazardous waste from secondary aluminium producers. Clients: Aluminium Industry Clients/Suppliers: Secondary Aluminium (Recyclers) Producers¹ Collection of and Regulatory Upfront Service Fee Input: ~0% Own usage of Alu Concentrate ~0% Clients: Aluminium & Other Industries Input: Aluminium (Concentrate), Salt Alu Content Payment for Salt <% Alu Oxide Revenue Contribution Revenue Contribution Create Environmental Liability with Legal Obligation to Recycle Hazardous Waste Service Fee ~0% Output: Alu Concentrate, Salt, Alu Oxide Outputs ~60% Output: Aluminium/ Aluminium Alloys Service fee is significantly higher than in the steel dust service business but value of residues lower Befesa is a secondary aluminium producer as well and, therefore, is both a supplier (salt slags) and a consumer (aluminium concentrate) for Befesa s recycling business. % of total salt slags segment revenues. Used in secondary aluminium plants. Low value by-product. Illustrative.

7 Highly Resilient Business with Strong Cash Flow Generation Befesa s strong and stable sales and earnings paired with its strong cash conversion enable the company to fund its business expansion. Sales (in m) Adj. EBIT (in m) Consistently and strongly growing revenues Q LTM 7 Adj. EBITDA (in m) Margin Margin 7% 6% Free Cash Flow, (in m) % % % % % % Q LTM 7 with profitability outpacing revenues over time 0% % Margin Margin % 7% 7% % % 7% Q LTM 7 High margin steel business accounts for vast majority of EBIT 9% % % % Cash conversion 7% 8% 8% 8% Strong and stable cash conversion Q LTM 7 96 Note: Unaudited financials pro-forma for IES disposal. Total sales are excluding internal revenues. FCF = Adj. EBITDA maintenance capex tax paid +/- WC change. FCF / Adj. EBITDA. Including crude and stainless steel. FCF figures show Salt slags services together with nd Alu services. Adjusted EBITDA (unaudited) is calculated by adjusting EBITDA (calculated based on operating result, adding back charges taken for amortization/depreciation, impairment and provisions) to account for the impact of the IES divestment and for one time effects (including holding and restructuring effects) and, in the case of 0, for the impact of the first time consolidation with the Company s results of Befesa s first half year EBITDA. Adjusted EBIT (unaudited) is calculated based on the reported operating result adjusted for the impact of the divestment of IES and, in the case of 0, for the impact of the first time consolidation with the Company s results of Befesa s first half year operating profit, further adjusted by holding, restructuring and one-time effects. nd Alu and Other Free Cash Flow is calculated from the operating result, adding back charges taken for amortization/depreciation, impairment and provisions, less maintenance capital expenditures and less taxes, summed with the change in working capital. 6

8 Future Growth Opportunities Befesa has successfully executed growth projects in the past and is well positioned to leverage its leading market position for further growth initiatives. Favourable Market and Underlying Mega Trends Pursue Prudent Hedging to Manage Commodity Price Peak-to-Troughs Continue Operational Excellence and Utilization at Current Plants Capture Upside Potential from Accretive M&A Opportunities Execute Well Defined and Accretive Organic Growth Projects 7

9 Experienced Management Team Senior management team delivering results through long standing industry expertise, entrepreneurial spirit and focus on operational excellence as well as governance and compliance processes. Javier Molina President and CEO Wolf Lehmann CFO; including responsibilities for Operational Excellence and IT Key Achievements/Track Record Extensive experience in steel and aluminium recycling business CEO since 000 Runs Befesa for > Years CFO since 0 0+ years in operational finance and governance leadership roles Strong performance results through focus on operational excellence Building strong business foundation of ESG, compliance and health & safety processes Asier Zarraonandia Vice President 6 years with Befesa years with Befesa Federico Barredo Vice President Aluminium Successful international expansion Track record of successful acquisitions and turnarounds (BUS, Agor, Alcasa, Hankook, Silvermet etc.) Runs the Service Business for >0 Years Runs the Service Business for > Years Experience in developing greenfield projects (Gravelines, Bernburg) 8