2. At a Glance
Befesa – European market leader in providing mission critical hazardous waste
recycling services to the steel and aluminium industry.
2
Source: Company information, International Consulting Firm based on i.a. World Steel Association’s Steel Statistical Yearbooks, WBMS, industry research, expert Interviews.
(1) Excluding internal sales; sales split is calculated on total sales including internal sales. (2) Including stainless steel. (3) Including recycling of Spent Pot Linings (SPL) which is a hazardous waste
generated in primary aluminium production. (4) Excluding China.
Steel Dust Recycling Services(2) Aluminium Salt Slags Recycling Services
Adj. EBIT margin (FY 2017)(2)
36% 24% Adj. EBIT margin in Salt Slags (FY 2017)(3)
Relationships
>15yrs
Relationships
>15yrs
Position in Europe (c.45–50% market share)
and Asia(4)#1
Position in Europe in Salt Slags
(c.45–50% market share)
#1
More than 90% of EBIT generated from two core >20% EBIT margin operations with low capital intensity
FY 2017 Adj. EBIT:
€144m
FY 2017 Sales:
€725m(1)
Steel Dust
Recycling
Services
43%Secondary
Aluminium
46%
Salt Slags
Recycling
Services
11%
Steel Dust
Recycling
Services
83%
Salt Slags
Recycling
Services
14%
Secondary
Aluminium
3%
3. Company History
Befesa has grown successfully through organic initiatives and acquisitions in
Europe as well as in emerging markets.
1987
Metallgesellschaft, German
industrial conglomerate,
creates Berzelius Umwelt
Service (B.U.S)
1993
B.U.S AB, together with two
other companies, group their
environmental assets in Spain
creating Berzelius Felguera
(Befesa)
2009
Befesa becomes the
European leader in
salt slags recycling after
acquiring 3 plants in
Germany from Agor
2012
Entry in the Asian
market by acquiring
successive stakes in
the Korean
Hankook(1)
Inauguration
of Waelz Oxide
(WOX) washing
plant at Gravelines
2013
Triton acquires
Befesa
2014
Inauguration of the 2nd
aluminium plant in Bernburg
2010
Entry in the Turkish
market through JV
with Canadian
Silvermet
2015
Commissioning of
the second kiln in
Korea, converting it
into the largest
treatment plant and
further acquisition of
stakes
Founded in Germany
Entered 2 New Markets Through a JV and
Acquisition with a Subsequent Turnaround
Acquisitions and Turnarounds
Successful Greenfield Project
(State of the Art Technology)
Successful Expansion
in South Korea
2000
Abengoa acquires a 51%
stake in Befesa from B.U.S to
develop its environmental
services business (stake
increased over time)
2006
Befesa acquires a
100% stake in
B.U.S, becoming the
European leader in
steel dust recycling
2007
Acquisition of Alcasa,
Spanish leader in the
secondary aluminium
market from Qualitas
Equity Partners
1998
Befesa IPO at the Madrid
and Bilbao Stock Exchanges
2011
Delisting from the Madrid
and Bilbao Stock Exchanges
Successful IPO
2017
Successful IPO on
Frankfurt Stock
Exchange
(1) Befesa subsequently acquired 100%.
3
4. Befesa has 11 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.
Oxide
Leaching
Stainless Steel Dust Recycling Plants
Salt Slags Recycling Plants
Secondary Aluminium Production Plants
Iskenderun(4)
Capacity: 65kt
Gyeongju
Capacity: 220kt
Landskrona
Capacity: 64kt
Sondika /
Amorebieta
Gravelines
Capacity: 100kt
Gravelines
Capacity: 110kt
Whitchurch
Capacity: 80kt
Erandio
Capacity: 64kt
Valladolid
Capacity: 150kt Les Franqueses del Vallès
Capacity: 66kt
Bernburg
Capacity: 75kt
Hannover
Capacity: 130kt
Lünen
Capacity: 170kt
Crude Steel Dust Recycling Plants
Steel Dust
Recycling Services
Aluminium Salt Slags
Recycling Services
11 Plants 6 Countries
7 Plants(3) 3 Countries
Employees(5): 1,107
Steel Dust Recycling Services Aluminium Salt Slags Recycling Services
Duisburg
Capacity: 87kt
Freiberg
Capacity: 194kt
Asúa-Erandio
Capacity: 160kt
Recytech(1)
Capacity: 110kt
#1
#1
Market Leader with Close Proximity to Clients
Europe
(c.45-50%)
#1
Asia(2)
(c.20%)
Europe
(c.45-50%)
(1) 50/50 JV. (2) Excl. China (lack of publicly available information). (3) Excluding idle plant Töging (Germany). (4) Joint venture with Canadian Silvermet.
(5) Average number of employees as of December 31, 2017.
4
5. Critical Services for Steel Producers
A leading services business, Befesa helps steel producers manage their
environmental liability by collecting and recycling their hazardous waste.
Clients / suppliers:
Electric Arc Furnace (EAF)
global steel producers
(mini-mills / scrap recyclers)
Clients:
steel industry
Steel Dust Recycling Services
Upfront service fee
Collection of
steel dust and
regulatory services
Create environmental
liability with legal
obligation to recycle
hazardous waste
€
Zinc content in dust
Revenue
contribution(3) Waelz
Oxide
Waelz Kiln
Slags
Input:
steel dust
(hazardous waste)
Clients: consumers of zinc
concentrates (smelters)
Payment for
zinc content
Sale of
WOX(1)
€
Input:
zinc concentrate / WOX
Revenue
contribution(3)
Output:
Waelz Oxide (WOX)(1)
Output:
zinc(2)
Collection fees provide stable revenues supplemented by the sale of recovered metal content
Service Fee ~10-20%
WOX Sale ~80-90%
(1) Zinc contained product. (2) Ultimately again used for steel production. (3) Illustrative, split depends on the zinc price.
5
6. Critical Services for Aluminium Industry
Similar service model as steel dust, focused on collecting and treating
hazardous waste from secondary aluminium producers.
Clients / suppliers:
secondary
(recyclers) & primary
aluminium producers(1)
Clients:
aluminium industry
Salt Slags Recycling Services
Upfront service fee
Collection of
salt slags & SPL and
regulatory services
Create environmental
liability with legal
obligation to recycle
hazardous waste
Output:
alu concentrate,
salt, alu oxide
€
Alu content
Input:
salt slags
(hazardous waste)
Clients:
aluminium & other
industries
Own usage of
alu concentrate(3)
Output:
aluminium /
aluminium alloys
Input:
aluminium
(concentrate), salt
Revenue
contribution(5)
Revenue
contribution(5)
Payment for
salt(3)
Alu oxide(4)
~40%(2)
~20%(2)
<1%(2)
€
Service Fee ~40%
Outputs ~60%
Service fee is significantly higher than in the steel dust service business but value of residues lower
(1) 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.
(2) % of total salt slags segment revenues. (3) Used in secondary aluminium plants. (4) Low value by-product. (5) Illustrative.
6
7. Befesa’s strong and stable sales and earnings paired with its strong cash
conversion enable the company to fund its business expansion.
Highly Resilient Business
with Strong Cash Flow Generation
Sales
(in €m)
Consistently and strongly growing revenues …
Adj. EBIT
(in €m)
High margin steel business accounts for vast majority of EBIT
Steel Dust
Recycling
Services(4)
Salt Slags
Recycling
Services
2nd Alu Services
and Other
Note: Financials pro-forma for IES disposal.
(1) Total sales are excluding internal revenues.
(2) Free Cash Flow is based on management accounts and is calculated as EBIT +
Depreciation & Amortization (D&A) +/- WC change – maintenance capex – taxes
(3) FCF / (Adjusted EBIT + Adjusted D&A).
(4) Including crude and stainless steel.
(5) FCF figures show Salt slags services together with 2nd Alu services.
Adj. EBITDA
(in €m)
Free Cash Flow(2,5)
(in €m)
… with profitability outpacing revenues over time
Strong and stable cash conversion
Cash
conversion(3)
Steel Dust
Recycling
Services
Margin
Salt Slags
Recycling
Services
Margin
Steel Dust
Recycling
Services
Margin
Salt Slags
Recycling
Services
Margin
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 2013, 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 2013, 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.
Free Cash Flow (unaudited) 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.
250 244 338 292 351
68 69
84 79
83
253 262
254 281
332
2013 2014 2015 2016 2017
535(1) 554(1)
631(1)
612(1)
725(1)
8 15 15 9 1118 21 30 24 27
69
87 78 99
135
2013 2014 2015 2016 2017
95
123 123 133
172
26%
27%
31%
33%
35%
31%
31%
35%
33%
41%
5 12 11 4 612 15 23 18 20
53
71 61 81
118
2013 2014 2015 2016 2017
70
97 95 103
144
17%
21%
22%
27%
27%
24%
23%
29%
24%
36%
1 3 7 920 36 27 31
68
62 76
94
2014 2015 2016 2017
88
101 110
133
72% 82% 83% 77%
7
8. Befesa has successfully executed growth projects in the past and is well
positioned to leverage its leading market position for further growth initiatives.
Future Growth Opportunities
Favourable market
and underlying
mega trends
Salt Slags
Recycling
Services
Steel Dust
Recycling
Services
Execute well
defined and
accretive organic
growth projects
Capture upside
potential from
accretive M&A
opportunities
Pursue prudent
hedging to manage
commodity price
peak-to-troughs
Continue
operational
excellence and
utilization at
current plants
8
9. Experienced Management Team
9
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
CEO
Wolf Lehmann
CFO; including responsi-
bilities for Operational
Excellence and IT
Asier Zarraonandia
Vice President
Steel Dust
Recycling Services
Federico Barredo
Vice President
Aluminium Salt Slags
Recycling Services
Has run the Steel Dust Recycling
Services Business for >10 years
Has run the Aluminium Salt Slags
Recycling Services Business
for >15 years
20+ years in operational and
finance leadership roles
50/50 General Electric
/ Private Equity
16 years with Befesa 25 years with Befesa
Successful international
expansion
Track record of successful
acquisitions and turnarounds
(BUS, Agor, Alcasa, Hankook,
Silvermet etc.)
Strong performance results through
focus on operational excellence
Experience in developing greenfield
projects (South Korea, Gravelines,
Bernburg)
Extensive experience in steel and
aluminium recycling business
Building strong business
foundation of ESG, compliance
and health & safety processes
Key Achievements / Track Record
CFO since 2014
Has run Befesa for >15 years
Became President of Abengoa’s
Environmental Services Division
in 1994
CEO since 2000
