Earnings Release • Nov 2, 2020
Earnings Release
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| 9M 2020 | 9M 2019 | Change | Q3 2020 | Q3 2019 | Change | |
|---|---|---|---|---|---|---|
| Key operational data | ||||||
| Electric arc furnace dust (EAFD) throughput (tonnes) | 501,914 | 488,758 | 2.7 % | 160,676 | 171,014 | (6.0) % |
| Waelz oxide (WOX) sold (tonnes) | 182,410 | 163,166 | 11.8 % | 55,948 | 58,481 | (4.3) % |
| Salt slags and Spent Pot Linings (SPL) recycled (tonnes) | 333,008 | 366,297 | (9.1) % | 102,570 | 113,145 | (9.3) % |
| Secondary aluminium alloys produced (tonnes) | 123,699 | 133,004 | (7.0) % | 44,444 | 39,009 | 13.9 % |
| LME zinc average price (€ / tonne) | 1,905 | 2,313 | (17.7) % | 1,997 | 2,112 | (5.4) % |
| Blended zinc price (€ / tonne) | 2,089 | 2,282 | (8.5) % | 2,214 | 2,203 | 0.5 % |
| Aluminium alloy average market price (€ / tonne) | 1,342 | 1,426 | (5.9) % | 1,312 | 1,356 | (3.3) % |
| Key financial data | ||||||
| Revenue | 446.4 | 496.6 | (10.1) % | 145.2 | 147.6 | (1.6) % |
| EBITDA | 84.5 | 117.1 | (27.8) % | 29.3 | 37.0 | (20.8) % |
| EBITDA margin (% of revenue) | 18.9 % | 23.6 % | (4.6) p.p. | 20.2 % | 25.1 % | (4.9) p.p. |
| EBIT | 41.6 | 92.1 | (54.8) % | 21.1 | 28.6 | (26.2) % |
| EBIT margin (% of revenue) | 9.3 % | 18.5 % | (9.2) p.p. | 14.5 % | 19.4 % | (4.8) p.p. |
| Adjusted EBIT1 | 57.1 | 92.1 | (38.0) % | 21.0 | 28.6 | (26.5) % |
| Adjusted EBIT margin (% of revenue)1 | 12.8 % | 18.5 % | (5.7) p.p. | 14.5 % | 19.4 % | (4.9) p.p. |
| Financial result | (0.1) | (12.5) | (99.5) % | (6.2) | (4.2) | 49.0 % |
| Profit before taxes and minority interests | 41.6 | 79.6 | (47.8) % | 14.8 | 24.4 | (39.1) % |
| Net profit attributable to shareholders of Befesa S.A. | 31.4 | 60.7 | (48.3) % | 10.8 | 18.8 | (42.4) % |
| EPS (in €) based on 34,066,705 shares | 0.92 | 1.78 | (48.3) % | 0.32 | 0.55 | (42.4) % |
| Total assets2 | 1,061.6 | 1,115.8 | (4.9) % | 1,061.6 | 1,115.8 | (4.9) % |
| Capital expenditures | 36.2 | 52.0 | (30.3) % | 11.9 | 22.6 | (47.6) % |
| Cash flow from operating activities | 37.8 | 47.7 | (20.8) % | 26.6 | (1.0) | - |
| Cash and cash equivalents at the end of the period | 107.8 | 100.7 | 7.0 % | 107.8 | 100.7 | 7.0 % |
| Net debt3 | 420.3 | 438.9 | (4.2) % | 420.3 | 438.9 | (4.2) % |
| Leverage4 | x 3.3 | x 2.7 | x 3.3 | x 2.7 | ||
| Number of employees (as of end of the period) | 1,156 | 1,163 | (0.6) % | 1,156 | 1,163 | (0.6) % |
1 Adjusted for the extraordinary impairment of the UK salt slags plant (€15.5 million impact in Q2 2020)
2 2019 figure as of 31 December
3Net debt computed as non-current loans and borrowings + non-current lease liabilities + current loans and borrowings
4 Leverage ratio computed as net debt divided by last-twelve-months (LTM) EBITDA
Negative effects were partially offset by positive volume and efficiency effects in Secondary Aluminium:
Consolidated revenue decreased by 1.6% yoy to €145.2 million in Q3 2020 (Q3 2019: €147.6 million) and by 10.1% to €446.4 million in 9M (9M 2019: €496.6 million). The development was mainly driven by the lower volumes treated in the two core businesses, Steel Dust and Salt Slags/SPL Recycling, impacted by COVID-19-induced demand constraints, unfavourable zinc TC as well as by the lower aluminium alloy prices. These negative effects were partially offset with the improved volumes and efficiencies in the smaller Secondary Aluminium subsegment as well as with the higher zinc blended prices. Consolidated revenue improved by 19% qoq (Q2 2020: €122.2 million) showing a recovery trend.
Q3 EBITDA decreased by 20.8% yoy to €29.3 million (Q3 2019: €37.0 million) and by 27.8% to €84.5 million in 9M (9M 2019: €117.1 million). The main drivers of the €8 million Q3 EBITDA decrease yoy were:
These effects were partially offset by the higher volumes of secondary aluminium alloys produced and efficiency improvements from new tilting furnaces (€0.7 million). In addition, the favourable zinc hedging prices compensated the lower zinc LME prices resulting in slightly higher zinc blended prices (€0.3 million).
Similarly, Q3 EBIT declined by 26.2% yoy to €21.1 million (Q3 2019: €28.6 million) and by 54.8% yoy to €41.6 million in 9M (9M 2019: €92.1 million), following the drivers that explain the EBITDA development. 9M EBIT was impacted by a €15.5 million impairment write-down for the salt slags plant in the UK which took place in Q2 2020. 9M adjusted EBIT amounted to €57.1 million (-38.0% yoy).
Consolidated financial result in 9M improved by €12.4 million yoy to €-0.1 million (9M 2019: €-12.5 million). This improvement is primarily driven by a one-time impact from the term loan B (TLB) repricing and related accounting for financial instruments per IFRS 9 (€14.2 million impact to financial result).
9M 2020 consolidated net profit attributable to the shareholders decreased by 48.3% to €31.4 million (9M 2019: €60.7 million), primarily due to the negative drivers impacting EBITDA and EBIT. Furthermore, the impairment write-down of the salt slags plant in UK (€-11.7 million impact at net profit level) was mostly offset by the positive effect from the TLB repricing (€10.8 million impact at net profit level). These one-time effects together resulted in a net €-0.9 million impact at the consolidated net profit level.
Financial indebtedness as of 30 September 2020 amounted to €528.2 million, down €14.2 million compared to year-end 2019. Net debt continued stable with €420.3 million at Q3 closing (year-end 2019: €416.9 million; Q2 2020 closing: €423.5 million).
The following table reconciles net debt to the relevant balance sheet line items:
| 30 September | 31 December | |
|---|---|---|
| 2020 | 2019 | |
| Non-current financial indebtedness | 516.8 | 530.2 |
| + Current financial indebtedness | 11.4 | 12.2 |
| Financial indebtedness | 528.2 | 542.4 |
| - Cash and cash equivalents | (107.8) | (125.5) |
| - Other current financial assets1 | (0.1) | (0.1) |
| Net debt | 420.3 | 416.9 |
| EBITDA LTM | 127.0 | 159.6 |
| Leverage ratio | x 3.3 | x 2.6 |
1 Other current financial assets adjusted by hedging valuation
9M 2020 operating cash flow amounted to €37.8 million, down €9.9 million yoy (Q3 2019: €47.7 million), driven by the earnings reduction. Working capital in Q3 showed a positive effect of €6.5 million primarily due to improved receivable and payable balances driven by the moderately recovered operations compared to low Q2. After investing
€8.6 million to fund regular maintenance capex and growth investments (China), and distributing a €15 million dividend in July, Befesa closed Q3 with solid €107.8 million cash on hand. Considering the €75 million RCF entirely undrawn to date, Befesa continued with a strong liquidity of €182.8 million available at Q3 closing.
Q3 closed at a leverage of x3.3 EBITDA (compared to end of 2019: x2.6). Befesa continues to be compliant with all debt covenants.
Volumes of EAFD recycled in Q3 2020 amounted to 160,676 tonnes, a 6.0% decrease yoy (Q3 2019: 171,014 tonnes), primarily impacted by COVID-19-induced demand constraints offsetting the positive effect from Turkey expanded operations. However, EAFD throughput improved by 3.3% qoq (Q2 2020: 155,581 tonnes) showing a recovery trend.
In 9M 2020, 501,914 tonnes of EAFD were recycled, up 2.7% yoy (9M 2019: 488,758 tonnes), mainly driven by the incremental volumes from the plant in Turkey after the capacity expansion in 2019. With these volumes, Befesa's steel dust recycling plants have been running at resilient average load factors of 77.2% and 81.0% of the expanded latest installed annual recycling capacity of 825 thousand tonnes, respectively in Q3 and 9M (Q3 2019: 93.7%; 9M 2019: 89.5%). As a result, the volume of WOX sold decreased by 4.3% yoy to 55,948 tonnes in Q3 (Q3 2019: 58,481 tonnes) and increased by 11.8% to 182,410 tonnes in 9M (9M 2019: 163,166 tonnes).
Revenue in Q3 2020 decreased by 6.9% yoy to €81.8 million, primarily impacted by the lower EAFD throughput. 9M revenue came in 6.4% lower at €257.3 million. The development in 9M was primarily driven by the lower average zinc spot prices (-17.7% yoy) and lower hedging prices (9M 2020: €2,235 per tonne vs. €2,325 per tonne in 9M 2019). These resulted in lower zinc effective average prices (blended rate between hedged volume and nonhedged volume), which declined by 8.5% yoy to €2,089 per tonne in 9M. The revenue was further pressured due to the unfavourable zinc TC settled at \$300 per tonne for the entire 2020 (\$245 per tonne in 2019). Combined, the net price effect (LME and TC) was -11% and -26% yoy, in Q3 and 9M respectively.
EBITDA in Q3 2020 decreased by 19.3% yoy to €24.4 million (Q3 2019: €30.2 million) mainly driven by lower volumes due to COVID-19 impacted demand, as well as by the unfavourable zinc TC. EBITDA recovered by 29.9% or €5.6 million over Q2 2020 (€18.8 million).
9M EBITDA came in at €69.1 million, down by 24.7% yoy (9M 2019: €91.8 million) primarily impacted by the lower zinc spot and hedging prices as well as by the unfavourable zinc TC.
Similarly, EBIT decreased by 22.5% to €20.2 million in Q3 (Q3 2019: €26.0 million) and by 31.0% to €54.7 million in 9M (9M 2019: €79.3 million).
Salt slags and SPL recycled volumes decreased by 9.3% yoy to 102,570 tonnes in Q3 (Q3 2019: 113,145 tonnes) and by 9.1% to 333,008 tonnes in 9M (9M 2019: 366,297 tonnes). Q3 operations continued to be impacted by the COVID-19 pandemic lowering demand.
Capacity utilisation levels remained resilient at around 80% on average.
Revenue in the Salt Slags subsegment decreased in Q3 2020 by 10.8% yoy to €16.4 million. In 9M, revenue came in 10.6% lower at €54.3 million. This development was primarily driven by volume decreases as well as by the lower prices for aluminium alloys (-3.3% yoy to €1,312 per tonne average in Q3; -5.9% yoy to €1,342 per tonne average in 9M). Aluminium alloy FMB prices recovered from the trough in Q2 and are currently trading at pre-COVID-19 levels of above €1,500 per tonne.
EBITDA in Q3 2020 decreased by 35.5% yoy to €2.6 million (Q3 2019: €4.1 million). 9M EBITDA came in at €11.5 million, down 28.9% yoy (9M 2019: €16.1 million). EBIT decreased by €1.2 million yoy to €0.6 million in Q3 (Q3 2019: €1.9 million) and by €20.4 million yoy to €-10.7 million in 9M (9M 2019: €9.7 million). Earnings in the Salt Slags subsegment were impacted by the same drivers that explain the revenue development.
9M EBIT was impacted by the impairment write-down of €15.5 million in Q2 for the UK plant. 9M adjusted EBIT amounted to €4.8 million (€-4.9 million yoy).
Aluminium alloy production volumes in Q3 2020 improved by 13.9% yoy to 44,444 tonnes (Q3 2019: 39,009 tonnes) mainly driven by the Barcelona plant which was down seven weeks of Q3 2019 to upgrade its second furnace.
9M volumes in Secondary Aluminium came in at 123,699 tonnes, -7.0% yoy (9M 2019: 133,004 tonnes) primarily impacted in Q2 by the COVID-19-related demand constraints.
Capacity utilisation levels remained resilient at or above 80% on average (Q3 2020: 86.0%; 9M 2020: 80.4%).
Revenue in the Secondary Aluminium subsegment increased by 7.8% yoy to €54.0 million in Q3 2020 following the volume increase.
9M revenue registered a 16.1% yoy drop to €159.2 million, mainly impacted by pressured aluminium alloy prices and reduced demand from end-use sectors impacted by follows of the COVID-19 pandemic.
EBITDA in Q3 2020 increased by 57.0% yoy to €3.1 million (Q3 2019: €2.0 million) primarily due to the improvement in volumes as well as the positive efficiency effects from the new tilting furnaces in place since year-end 2019.
9M EBITDA came in at €6.5 million, a 24.6% decrease yoy (9M 2019: €8.6 million) primarily driven by the revenue development and by pressured aluminium metal margins which moderately recovered in Q3.
Similarly, EBIT in Q3 2020 improved by €1.0 million yoy to €1.2 million (Q3 2019: €0.3 million), recovering from the Q2 trough (€-1.5 million). 9M EBIT dropped by €2.9 million yoy to €0.5 million (9M 2019: €3.4 million).
Hedging strategy is unchanged and continues to be a key element of Befesa's business model to manage the zinc price volatility and therefore improve the stability and visibility of earnings and cash flow across the economic cycle. Further details are available in Befesa's Annual Report 2019 (page 32).
During Q3, zinc hedges were further extended taking advantage of the favourable zinc market environment witnessed in August and September. In early September, Befesa extended its hedge book for another six months. The hedging currently in place provides Befesa with improved pricing visibility through 2020 and up to April 2022.
The average hedged prices and volumes for each of the periods are approximately as follows:
| Period | Average hedged price (€ per tonne) |
Zinc content hedged (tonnes) |
|---|---|---|
| 2017 | €1,876 | 73,200 |
| 2018 | €2,051 | 92,400 |
| 2019 | €2,310 | 92,400 |
| 2020 | €2,230 | 92,400 |
| 2021 | €2,130 | 92,400 |
| Q1 2022 | €2,150 | 23,100 |
The construction of the two new steel dust recycling plants in China is on track.
Jiangsu province: Construction works at the Changzhou site progress on track and its completion is expected during Q1 2021. The long-term financing for this plant was secured on 30 July 2020.
Henan province: Foundation works at the Xuchang site continue progressing on schedule. The construction of the plant is expected to be finalised after the summer of 2021.
The two plants in development are designed to recycle 110,000 tonnes of EAFD per year each and will be Befesa's seventh and eighth global EAFD recycling sites globally, alongside the existing sites in Europe, Turkey and South Korea.
Sustainability is a crucial topic for Befesa as its business model has been based on the circular economy and sustainability already for the last three decades. In the Sustainability Report, which was released in June 2020, more disclosure on ESG topics as well as better performance is shown.
As a result of the report, two important ESG ratings agencies upgraded their ratings of Befesa.
In addition, Befesa is now part of an important ESG index. Effective since 18 September 2020, Befesa is member of the Global Challenges Index (GCX). Very strict criteria are used to choose 50 members out of more than 6,000 companies worldwide.
Full year guidance confirmed.
Q4 results expected to be better than Q3, indicating around mid-point of FY EBITDA guidance range of €100 to €135 million.
The position within the range depends mainly on how the COVID-19 pandemic impacts the European crude steel and automotive markets and the base metal prices in the remaining months of the year.
as at 30 September 2020 (€ Thousand)
Assets
| (€ thousand) | 30 September 2020 | 31 December 2019 |
|---|---|---|
| Non-current assets: | ||
| Intangible assets | ||
| Goodwill | 335,564 | 335,564 |
| Other intangible assets | 86,045 | 86,912 |
| 421,609 | 422,476 | |
| Right-of-use asset | 21,308 | 17,409 |
| Property, plant and equipment | ||
| Property, plant and equipment in use | 247,294 | 263,357 |
| Property, plant and equipment under construction | 45,861 | 45,235 |
| 293,155 | 308,592 | |
| Non-current financial assets | ||
| Investments in Group companies and associates | 118 | 118 |
| Other non-current financial assets | 5,073 | 18,507 |
| 5,191 | 18,625 | |
| Deferred tax assets | 72,014 | 70,913 |
| Total non-current assets | 813,277 | 838,015 |
| Current assets: | ||
| Inventories | 37,480 | 54,739 |
| Trade and other receivables | 59,392 | 42,786 |
| Trade receivables from related companies | 766 | 751 |
| Accounts receivables from public authorities | 14,302 | 10,771 |
| Other receivables | 16,781 | 18,557 |
| Other current financial assets | 11,881 | 24,737 |
| Cash and cash equivalents | 107,764 | 125,460 |
| Total current assets | 248,366 | 277,801 |
| Total assets | 1,061,643 | 1,115,816 |
| (€ thousand) | 30 September 2020 | 31 December 2019 |
|---|---|---|
| Equity: | ||
| Parent Company | ||
| Share capital | 94,576 | 94,576 |
| Share premium | 263,875 | 263,875 |
| Hedging and revaluation reserves | 7,872 | 26,951 |
| Other reserves | (53,867) | (117,286) |
| Translation differences | (17,918) | (4,396) |
| Net profit/(loss) for the period | 31,420 | 82,713 |
| Equity attributable to the owners of the Company | 325,958 | 346,433 |
| Non-controlling interests | 9,457 | 13,785 |
| Total equity | 335,415 | 360,218 |
| Non-current liabilities: | ||
| Long-term provisions | 7,220 | 8,759 |
| Loans and borrowings | 505,533 | 519,210 |
| Lease liabilities | 11,285 | 11,013 |
| Deferred tax liabilities | 64,152 | 68,053 |
| Other non-current liabilities | 8,409 | 9,265 |
| Total non-current liabilities | 596,599 | 616,300 |
| Current liabilities: | ||
| Loans and borrowings | 7,874 | 8,621 |
| Trade payables to related companies | 743 | 835 |
| Trade and other payables | 77,013 | 90,916 |
| Lease liabilities | 3,542 | 3,572 |
| Short-term provisions | 118 | 124 |
| Other payables | ||
| Accounts payable to public administrations | 18,184 | 17,033 |
| Other current liabilities | 22,155 | 18,197 |
| 40,339 | 35,230 | |
| Total current liabilities | 129,629 | 139,298 |
| Total equity and liabilities | 1,061,643 | 1,115,816 |
| (€ thousand) | 9M 2020 | 9M 2019 | Change | Q3 2020 | Q3 2019 | Change |
|---|---|---|---|---|---|---|
| Revenue | 446,371 | 496,605 | (10.1) % | 145,176 | 147,578 | (1.6) % |
| Changes in inventories of finished goods | ||||||
| and work in progress | (11,155) | 5,838 | - | (921) | 1,978 | - |
| Procurements | (171,706) | (207,706) | (17.3) % | (56,584) | (56,710) | (0.2) % |
| Other operating income | 3,287 | 4,093 | (19.7) % | 1,013 | 1,695 | (40.2) % |
| Personnel expenses | (61,526) | (56,998) | 7.9 % | (20,429) | (17,668) | 15.6 % |
| Other operating expenses | (120,728) | (124,775) | (3.2) % | (38,967) | (39,876) | (2.3) % |
| Amortisation/depreciation, impairment and provisions | (42,910) | (24,978) | 71.8 % | (8,197) | (8,421) | (2.7) % |
| Operating profit (EBIT) | 41,633 | 92,079 | (54.8) % | 21,091 | 28,576 | (26.2) % |
| Finance income | 15,623 | 217 | > 100 % | 35 | 74 | (52.7) % |
| Finance expenses | (14,484) | (13,592) | 6.6 % | (5,468) | (4,824) | 13.3 % |
| Net exchange differences | (1,199) | 906 | - | (812) | 560 | - |
| Net finance income/(loss) | (60) | (12,469) | (99.5) % | (6,245) | (4,190) | 49.0 % |
| Profit/(loss) before tax | 41,573 | 79,610 | (47.8) % | 14,846 | 24,386 | (39.1) % |
| Corporate income tax | (12,044) | (14,165) | (15.0) % | (4,602) | (3,961) | 16.2 % |
| Profit/(loss) for the period | 29,529 | 65,445 | (54.9) % | 10,244 | 20,425 | (49.8) % |
| Attributable to: | ||||||
| Parent Company owners | 31,420 | 60,725 | (48.3) % | 10,846 | 18,839 | (42.4) % |
| Non-controlling interests | (1,891) | 4,720 | - | (602) | 1,586 | - |
| Earnings/(losses) per share attributable to owners | ||||||
| of the Parent (expressed in euros per share) | ||||||
| Basic earnings per share | 0.92 | 1.78 | (48.3) % | 0.32 | 0.55 | (42.4) % |
| (€ thousand) | 9M 2020 | 9M 2019 | Q3 2020 | Q3 2019 |
|---|---|---|---|---|
| Cash flow from operating activities: | ||||
| Profit / (loss) for the period before tax | 41,573 | 79,610 | 14,846 | 24,386 |
| Adjustments due to: | 40,644 | 37,601 | 15,104 | 12,283 |
| Depreciation and amortisation | 42,910 | 24,978 | 8,197 | 8,421 |
| Changes in long-term provisions | (1,539) | 926 | 928 | (35) |
| Interest income | (15,623) | (217) | (35) | (74) |
| Finance costs | 14,484 | 13,592 | 5,468 | 4,824 |
| Other profit/(loss) | (787) | (772) | (266) | (293) |
| Exchange differences | 1,199 | (906) | 812 | (560) |
| Changes in working capital: | (14,013) | (34,569) | 6,517 | (25,049) |
| Trade receivables and other current assets | (16,606) | (14,768) | (1,790) | (13,406) |
| Inventories | 15,251 | 233 | 2,419 | (784) |
| Trade payables | (12,658) | (20,034) | 5,888 | (10,859) |
| Other cash flows from operating activities | (30,419) | (34,915) | (9,882) | (12,644) |
| Interest paid | (15,578) | (17,689) | (5,299) | (8,757) |
| Taxes paid | (14,841) | (17,226) | (4,583) | (3,887) |
| Net cash flows from/(used in) operating activities (I) | 37,785 | 47,727 | 26,585 | (1,024) |
| Cash flows from investing activities: | ||||
| Investments in intangible assets | (446) | (1,957) | (321) | (138) |
| Investments in property, plant and equipment | (39,076) | (46,065) | (8,276) | (22,476) |
| Collections from disposal of Group and associated companies, net of cash | - | 81 | - | - |
| Payments for right-of-use assets | - | (3,180) | - | (16) |
| Collections from sale of property, plant and equipment | 100 | - | 83 | - |
| Investments in other current financial assets | 37 | (87) | 87 | - |
| Net cash flows from/(used in) investing activities (II) | (39,385) | (51,208) | (8,427) | (22,630) |
| Cash flows from financing activities: | ||||
| Cash inflows from bank borrowings and other liabilities | 2,985 | 1,841 | (643) | 88 |
| Cash outflows from bank borrowings and other liabilities | (3,344) | (2,674) | (1,085) | (1,265) |
| Dividends paid to shareholders | (15,000) | (44,968) | (15,000) | (44,968) |
| Net cash flows from/(used in) financing activities (III) | (15,359) | (45,801) | (16,728) | (46,145) |
| Effect of foreign exchange rate changes on cash and cash equivalents (IV) | (737) | (649) | (291) | 171 |
| Net increase/(decrease) in cash and cash equivalents (I+II+III+IV) | (17,696) | (49,931) | 1,139 | (69,629) |
| Cash and cash equivalents at the beginning of the period | 125,460 | 150,648 | 106,625 | 170,346 |
| Cash and cash equivalents at the end of period | 107,764 | 100,717 | 107,764 | 100,717 |
STEEL DUST RECYCLING SERVICES
| 9M 2020 | 9M 2019 | Change | Q3 2020 | Q3 2019 | Change | |
|---|---|---|---|---|---|---|
| Key operational data (tonnes, unless specified otherwise) | ||||||
| EAFD throughput1 | 501,914 | 488,758 | 2.7 % | 160,676 | 171,014 | (6.0) % |
| WOX sold | 182,410 | 163,166 | 11.8 % | 55,948 | 58,481 | (4.3) % |
| Blended zinc price (€ / tonne) | 2,089 | 2,282 | (8.5) % | 2,214 | 2,203 | 0.5 % |
| Total installed capacity2 | 825,300 | 780,300 | 5.8 % | 825,300 | 825,300 | 0.0 % |
| Utilisation (%)2 | 81.0 % | 83.7 % | (2.7) p.p. | 77.2 % | 82.2 % | (5.0) p.p. |
| Total installed capacity normalised3 | 825,300 | 729,883 | 13.1 % | 825,300 | 724,467 | 13.9 % |
| Normalised utilisation (%)3 | 81.0 % | 89.5 % | (8.5) p.p. | 77.2 % | 93.7 % | (16.4) p.p. |
| Key financial data (€ million, unless specified otherwise) | ||||||
| Revenue | 257.3 | 275.0 | (6.4) % | 81.8 | 87.9 | (6.9) % |
| EBITDA | 69.1 | 91.8 | (24.7) % | 24.4 | 30.2 | (19.3) % |
| EBITDA margin % | 26.9 % | 33.4 % | (6.5) p.p. | 29.8 % | 34.4 % | (4.6) p.p. |
| EBIT | 54.7 | 79.3 | (31.0) % | 20.2 | 26.0 | (22.5) % |
| EBIT margin % | 21.3 % | 28.8 % | (7.6) p.p. | 24.7 % | 29.6 % | (4.9) p.p. |
ALUMINIUM SALT SLAGS RECYCLING SERVICES Salt Slags subsegment
| 9M 2020 | 9M 2019 | Change | Q3 2020 | Q3 2019 | Change | |
|---|---|---|---|---|---|---|
| Key operational data (tonnes, unless specified otherwise) | ||||||
| Salt slags and SPL recycled | 333,008 | 366,297 | (9.1) % | 102,570 | 113,145 | (9.3) % |
| Total installed capacity | 630,000 | 630,000 | 0.0 % | 630,000 | 630,000 | 0.0 % |
| Utilisation (%)4 | 83.7 % | 92.4% | (8.7) p.p. | 76.8 % | 84.7% | (7.9) p.p. |
| Key financial data (€ million, unless specified otherwise) | ||||||
| Revenue | 54.3 | 60.7 | (10.6) % | 16.4 | 18.4 | (10.8) % |
| EBITDA | 11.5 | 16.1 | (28.9) % | 2.6 | 4.1 | (35.5) % |
| EBITDA margin % | 21.1 % | 26.5 % | (5.4) p.p. | 16.1 % | 22.3 % | (6.2) p.p. |
| EBIT | (10.7) | 9.7 | - | 0.6 | 1.9 | (65.6) % |
| EBIT margin % | (19.7) % | 16.0 % | (35.7) p.p. | 3.9 % | 10.2 % | (6.2) p.p. |
| Adjusted EBIT5 | 4.8 | 9.7 | (50.9) % | 0.6 | 1.9 | (69.8) % |
| Adjusted EBIT margin %5 | 8.8 % | 16.0 % | - | 3.4 % | 10.2 % | - |
Secondary Aluminium subsegment
| 9M 2020 | 9M 2019 | Change | Q3 2020 | Q3 2019 | Change | |
|---|---|---|---|---|---|---|
| Key operational data (tonnes, unless specified otherwise) | ||||||
| Secondary aluminium alloys produced | 123,699 | 133,004 | (7.0) % | 44,444 | 39,009 | 13.9 % |
| Aluminium alloy average market price (€ / tonne)6 | 1,342 | 1,426 | (5.9) % | 1,312 | 1,356 | (3.3) % |
| Total installed capacity7 | 205,000 | 205,000 | 0.0 % | 205,000 | 205,000 | 0.0 % |
| Utilisation (%)7 | 80.4 % | 86.7 % | (6.4) p.p. | 86.0 % | 75.5 % | 10.5 p.p. |
| Total installed capacity normalised8 | 205,000 | 194,000 | 5.7 % | 205,000 | 194,000 | 5.7 % |
| Normalised utilisation (%)8 | 80.4 % | 91.7 % | (11.3) p.p. | 86.0 % | 79.8 % | 6.2 p.p. |
| Key financial data (€ million, unless specified otherwise) | ||||||
| Revenue | 159.2 | 189.7 | (16.1) % | 54.0 | 50.1 | 7.8 % |
| EBITDA | 6.5 | 8.6 | (24.6) % | 3.1 | 2.0 | 57.0 % |
| EBITDA margin (% over revenue) | 4.1 % | 4.5 % | (0.5) p.p. | 5.7 % | 3.9 % | 1.8 p.p. |
| EBIT | 0.5 | 3.4 | (86.0) % | 1.2 | 0.3 | >100 % |
| EBIT margin (% over revenue) | 0.3 % | 1.8 % | (1.5) p.p. | 2.2 % | 0.5 % | 1.7 p.p. |
1 Steel EAFD throughput does not include stainless steel dust treated volumes
2 Total installed capacity in Steel does not include 174kt per year of stainless steel dust recycling operations;
Utilisation represents EAFD processed against annual installed recycling capacity
3 Installed capacity and corresponding utilisation rates in 2019 are normalised for the capacity upgrade in Turkey,
from 65,000 to 110,000 tonnes (Turkish plant was shutdown from end of January to mid of August 2019)
4 Utilisation represents the volume of salt slags & SPL recycled by Befesa's plants against annual installed capacity (not incl. 100,000 tonnes idled capacity at Töging, Germany)
5 Adjusted for the extraordinary impairment of the UK salt slags plant (€15.5 million impact in Q2 2020)
6 Aluminium Scrap and Foundry Ingots Aluminium pressure diecasting ingot DIN226/A380 European Metal Bulletin Free Market Duty paid delivered works
7 Utilisation represents the volume of secondary aluminium alloys produced against annual installed production capacity
8 Installed capacity and corresponding utilisation rates in 2019 are normalised for the furnace upgrade in Barcelona (three-month shutdown from mid-Aug to mid-Nov)
| Tuesday, 23 February 2021 |
Preliminary Year-End Results 2020 & Conference Call |
|---|---|
| Thursday, 25 March 2021 |
Annual Report 2020 |
| Thursday, 29 April 2021 | Q1 2021 Statement & Conference Call |
| Thursday, 29 July 2021 | H1 2021 Interim Report & Conference Call |
| Thursday, 28 October 2021 | Q3 2021 Statement & Conference Call |
Notes: Befesa's financial reports and statements are published at 7:30 am CET Befesa cannot rule out changes of dates and recommends checking them in the Investor Relations / Investor's Agenda section of its website www.befesa.com
Director of Investor Relations & Strategy
T: +49 (0) 2102 1001 340
You can find this and other publications online in the Investor Relations / Reports and Presentations section of Befesa's website www.befesa.com
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This report 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 statements reflect the current views of Befesa and its affiliates or of such third parties with respect to future events and are subject to risks, uncertainties and assumptions.
Many factors could cause the actual results, performance or achievements of Befesa and its affiliates to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others: changes in general economic, political, governmental and business conditions globally and in the countries in which Befesa and its affiliates do business; changes in interest rates; changes in inflation rates; changes in prices; changes to national and international laws and policies that support industrial waste recycling; legal challenges to regulations, subsidies and incentives that support industrial waste recycling; extensive governmental regulation in a number of different jurisdictions, including stringent environmental regulation; management of exposure to credit, interest rate, exchange rate and commodity price risks; acquisitions or investments in joint ventures with third parties; inability to obtain new sites and expand existing ones; failure to maintain safe work environments; effects of catastrophes, natural disasters, adverse weather conditions, unexpected geological or other physical conditions, or criminal or terrorist acts at one or more of Befesa's plants; insufficient insurance coverage and increases in insurance cost; loss of senior management and key personnel; unauthorised use of Befesa's intellectual property and claims of infringement by Befesa of others' intellectual property; Befesa's ability to generate cash to service indebtedness changes in business strategy and various other factors.
Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or targeted. Befesa and its affiliates do not assume any guarantee that the assumptions underlying forward-looking statements are free of errors nor do they accept any responsibility for the future accuracy of the opinions expressed herein or the actual occurrence of the forecasted developments. No representation (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein or otherwise resulting, directly or indirectly, from the use of this document.
This report is intended for information only and should not be treated as investment advice. It is not intended as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this report nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. This report may not, at any time, be reproduced, distributed or published (in whole or in part) without prior written consent of Befesa.
First nine-month period and third quarter 2020 figures contained in this report have not been audited or reviewed by external auditors.
This report includes Alternative Performance Measures (APM), including EBITDA, EBITDA margin, EBIT, EBIT margin, Adjusted EBIT, Adjusted EBIT margin, net debt and capital expenditures which are not measures of liquidity or financial performance under International Financial Reporting Standards (IFRS). EBITDA is defined as operating profit for the period (i.e. EBIT) before the impact of amortisation, depreciation, impairment and provisions. EBITDA margin is defined as EBITDA divided by revenue. EBIT is defined as Operating profit for the year. The Company uses EBIT to monitor its financial return after both operating expenses and a charge representing the cost of usage of both its property, plant and equipment and definite‑life intangible assets. EBIT margin is defined as EBIT as a percentage of revenue. These non-IFRS measures should not be considered in isolation or as an alternative to results from operating activities, cash flow from operating, investing or financing activities, or other financial measures of Befesa's results of operations or liquidity derived in accordance with IFRS. Befesa believes that the APM included in this report are useful measures of its performance and liquidity. Other companies, including those in the industry in which Befesa operates, may calculate similarly titled financial measures differently than Befesa does. Because all companies do not calculate these financial measures in the same manner, Befesa's presentation of such financial measures may not be comparable to other similarly titled measures of other companies. These APM are not audited.
Befesa S.A. 46, Boulevard Grande-Duchesse Charlotte L-1330 Luxembourg, Grand Duchy of Luxembourg www.befesa.com
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