Befesa S.A.

Investor Presentation • May 14, 2019

Befesa Presentation Midcap Partners Annual Small and Midcap Conference Paris, 14 May 2019

BEFESA

BEFESA 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 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 our plants; insufficient insurance coverage and increases in insurance cost; loss of senior management and key personnel; unauthorized use of Befesa's intellectual property and claims of infringement by Befesa of others' intellectual property; Befesa's ability to generate cash to service its indebtedness changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, 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 presentation 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 presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. This presentation may not, at any time, be reproduced, distributed or published (in whole or in part) without prior written consent of Befesa.

First quarter 2019 figures contained in this presentation have not been audited or reviewed by external auditors.

This presentation includes Alternative Performance Measures (APMs), including EBITDA, EBITDA margin, EBIT, 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 APMs 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 APMs are not audited.

BEFESA Today's Presenters

Since 2008

Rafael Pérez

Director of Investor Relations & Strategy

▪ Director of Investor Relations and Strategy of Befesa since 2008

BEFESA Key Highlights

FY 2019 targeting EBITDA growth of +3% to +5% / €182 to €185m; considering reference Treatment Charge (TC) of up to \$245/t & ~\$2,850/t avg. ´19 LME zinc price

Expecting stronger H2´19 vs. H1´19 mainly due to Turkey back in operations with increased capacity Q3 onwards and continued Stainless recovery

Q1 volumes in core segments as expected: Steel Dust throughput at 169kt (-10% YoY) due to downtime to increase Turkey capacity; Salt Slags ~flat (-1% YoY)

Q1 EBITDA at €43m (-3% YoY); As anticipated impacted by

- Lower volume in Turkey & unfavourable reference TC;

+Partially offset by: Better zinc hedges, recovered Stainless operations & upgraded high efficiency furnaces in 2nd Aluminium delivering results

Profitability continues at solid 24% EBITDA margin; Leverage at x2.2

Execution of organic growth projects on track: Turkish plant six-month shutdown to increase capacity started January '19; Korea washing plant progresses as planned

China - Plant #1 (Jiangsu): Broke ground April '19; Ramp-up planned H2'20; Plant #2 (Henan): Signed agreement; Breaking ground Q4'19; Ramp-up H1'21

Free float increased to 81% after Triton placed 13% in April '19

Leverage at x2.20 at Q1'19 ~stable compared to x2.14 at YE'18

Q1'19 EBITDA to total cash flow – main drivers

Total Cash Flow	+€4	€155 cash & x2.2 leverage 
CapEx & other investing activities	€-13	Regular annual maintenance spend; Growth focus: Turkey upgrade, Korea washing plant, China expansion
Interest & other	€-8
Taxes	€-5	Nominal 25% vs. cash tax rate <20%
WC change & other	€-13	Loading of sales within quarters Q4/Q1
EBITDA	€43
(€m)

(1) From 1 January 2019, implemented IFRS 16 amendment affecting accounting for renting and leasing results in €14 million higher debt or ~0.1 higher leverage compared to year-end 2018 (2) Operating cash flow per audited consolidated statement of cash flows; after WC, taxes & interests; pre capex & dividend; Last Twelve Month (LTM) Q1'19 operating cash flow is unaudited

Hedging up to Jul. ´21 improves earnings & cash flows visibility for next 2.5 years

Zinc hedges & blended average prices – 2018 / 2019

• Hedges in place until and including July 2021
• Continuous monitoring of the market to close further hedges
• Majority of hedges Euro based
• Befesa providing no collateral

* Assumes reference TC of \$245/t with escalators between \$2,700 to \$3,000/t LME zinc – mid-point \$2,850/t – similar to April price level. \$2,850/t at FX USD/EUR 1.13 equal to €2,522/t.

BEFESA ²⁰¹⁹– Outlook

Targeting EBITDA growth of +3% to +5% / €182 to €185m; Mainly based on:

+ Hedged ~€2,325 vs. €2,051 in ´18; Unhedged at current ~LME €2,522/\$2,850 levels

• - Limited by higher reference TC of up to \$245/t in ´19
• + Stainless operations recovering vs. (€4m) negative EBITDA in ´18
• + Aluminium furnace upgrades implemented in ´18 delivering positive results

Expecting continued high utilization levels in both core segments; Steel Dust >90% and Salt Slags >95%. Volume overall stable YoY.

Expecting stronger H2´19 vs. H1´19 mainly due to Turkey back in operations with increased capacity Q3 onwards and continued Stainless recovery

With ~70% of zinc output hedged the earnings variation for the remaining 3 quarters is limited to +/- €3m for each +/- €100/t LME Zinc price variation vs. €2,522 avg. ´19

Total CapEx expected at ~€85m: ~€60m to fund top growth projects – Steel Dust: Turkey, Korea and China & Aluminium Salt Slags: Final furnace upgrade; ~€25m for maintenance / others, similar to 2018

Maintaining dividend policy of distributing 40 to 50% of net profit

Current operating cash flow run rate funds CapEx and dividend; Expecting balanced total cash flow and full year leverage similar to current levels

Accelerating growth through well defined business plan; Hedging in place and executing top 5 growth projects + China

1 Hedging

• 2019: 92.4kt at ~€2,325/t
• 2020: 92.4kt at ~€2,260/t
• H1 2021: 46.2kt at ~€2,230/t
• 2 Organic growth
  • 2019/20 focus top 5 projects:
  • Steel Dust:
    • Turkey 65110kt; Ramp-up Q3´19
    • Korea washing plant; Completion Q4´19
  • Aluminium Salt Slags:
    • 2x tilting furnaces (✓Bilbao, Barcelona Q3´19)
    • Expand Hannover (130kt 170kt)
• 3 China

plan

• Developing two EAF dust recycling plants in two provinces:

  • 1 (Jiangsu): broke ground in April ´19; Ramp-up ~H2´20

  • 2 (Henan): agreement signed; breaking ground in Q4´19; Ramp-up ~H1´21

China – Plant #1: Jiangsu – Groundbreaking Ceremony

Broke ground at Changzhou plant on 10 April 2019; Starting construction for ramp-up in H2 2020

Key facts of the plant

• 1 st Electric Arc Furnace (EAF) dust recycling plant in China with capacity to recycle 110kt / year
• Total investment: ~€45m

Status

• ✓ Ground breaking ceremony on 10 April 2019
• ➢ Starting construction
• ➢ Scheduling to ramp up operations in H2 2020

Signed development agreement on 8 April 2019; Targeting ground breaking in Q4 2019

Henan is located in central China, with a population of 95 million people and a GDP of \$726 billion. Over the past two decades, Henan has developed rapidly, and is one of the most important producers of EAF steel in China.

Plant location

Changge Dazhou Industrial Cluster, XuChang City. Potential to also service Hu Bei province (on the southern border of Henan province).

Key facts of the plant

• 2 nd EAF dust recycling plant in the country
• Capacity to recycle 110kt EAF dust / year
• Total investment: ~€45m

Status

• ✓ Signed development contract on 8 April 2019
• ➢ Targeting ground breaking in Q4 2019
• ➢ Scheduling to ramp up operations in H1 2021

BEFESA Consolidated Key Financials

Q1 EBITDA as expected at €43.0m (-3.4% YoY): Impacted by lower volumes in Turkey and unfavourable reference TC; partially offset by improved hedging prices, recovered performance in Stainless and upgraded high efficiency furnaces

Revenue (€m)

44.5 43.0 EBITDA and % margin (€m)

Highlights

• Q1 revenue 2019 down 8% YoY to €179.1m primarily due to:
  • Lower volumes in Turkey due to scheduled six-month downtime to upgrade capacity from 65kt to 110kt
  • Unfavourable zinc reference TC for 2019 ~\$245/t vs. \$147/t '18
  • Lower market prices: LME zinc prices down 14% (Q1'19: €2,380/t; Q1'18: €2,776/t); aluminium alloys market prices down 17% (Q1'19: €1,528/t; Q1'18: €1,833/t)
  • Revenue decrease partially offset by: (i) Improved hedging prices (Q1'19: €2,344/t vs. Q1'18: €2,021/t) improved blended zinc prices (Q1'19: €2,374/t; Q1'18: €2,299/t) (ii) Recovered YoY performance in Stainless
• Q1 EBITDA at €43.0m (-3.4% YoY) / 24% EBITDA margin; following the above drivers:
  • Turkey shutdown to upgrade capacity & unfavourable TC;
  • • Partially offset by better zinc hedges & recovered Stainless operations (details above) -as well as-
  • • 2nd Aluminium furnaces upgrades from 2018 delivering results

Q1 EBITDA at €33.9, down €2.2 YoY; driven by lower volume in Turkey & unfavourable ref. TC – partially offset by recovered Stainless & improved hedges

Highlights

• Q1 revenue down 6% driven by 10% lower throughput YoY - Turkey plant upgrade; also higher TC referenced at approx. \$245/t in ´19 vs. \$147/t in ´18; partially offset with higher blended zinc prices
• Q1 EBITDA following the above explained drivers as well as improved performance in Stainless operations

EAF dust throughput & capacity utilisation

(thousand tonnes, % of annual installed capacity)

▪ Throughput impacted as expected by downtime in Turkey to expand capacity from 65kt to 110kt since January ´19

Prices (€ per tonne)	Q1 2018	Q1 2019	% Var.	2018	LTM % Q1'19 Var.
Befesa blended (*) average zinc price	2,299	2,373	+3%	2,168	x,xxx +xx%
LME average price	2,776	2,380	-14%	2,468	2,368 -4%

(*) Blended rate between hedged prices and average spot prices, weighted by the respective hedged and non-hedged volumes, reflecting the effective price to Befesa

Q1 EBITDA grew to €8.9m (+9% YoY) mainly driven by furnace upgrades in ´18 showing results (2nd Aluminium) partially offset by lower aluminium alloy prices

Highlights

• 2 nd Aluminium: Q1 EBITDA up €0.9m driven by higher margins due to more efficient furnaces showing results offsetting lower prices
• Salt Slags & Spent Pot Linings (SPL): Q1 EBITDA slightly down €0.2m YoY mainly due to decreased aluminium alloy prices

Volumes & capacity utilisation

(thousand tonnes, % of annual installed capacity)

Salt Slags & SPL treated

Aluminium alloys produced

Prices	Q1	Q1	%	2018
(€ per tonne)	2018	2019	Var.
Aluminium alloy average price (*)	1,833	1,528	-17%	1,715

(*) Aluminium scrap and foundry ingots aluminium pressure diecasting ingot DIN226/A380 European Metal Bulletin free market duty paid delivered works

Salt Slags subsegment

Secondary Aluminium subsegment

16

BEFESA Befesa at a Glance

Befesa – European market leader in providing mission critical hazardous waste recycling services to the steel and aluminium industry

+90% EBITDA generated from two core >30% EBITDA margin operations with low capital intensity

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 revenues including internal revenues. (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.

BEFESA Befesa at a Glance

18

Befesa has grown successfully through organic initiatives and acquisitions

BEFESA Investment Highlights

Each Befesa plant usually collects waste from at least 10-15 client

Befesa is the market leader in steel dust and salt slags recycling services with a competitive advantage due to its close proximity to key clients

Established market leader Proximity to clients provides strong competitive advantage

Steel Dust Recycling Services

Source: Company information. (1) Excluding China.

Befesa offers a crucial service taking care of highly regulated hazardous waste in the value chain of secondary steel and aluminium producers

• Consequences of non-compliance
• Major European steel producer struggles with large plant (producing 8% of European steel) due to breaching environmental regulations (contamination of environment)
• Court ordered to partly shut down the plant
• Owner prompted to invest \$3.8bn to bring the plant back to required standards
• In 2002 the owners of a metal foundry in Italy faced prison time for illegal transport and landfilling of hazardous waste
• In 2004 a big aluminium refinery in Italy abandoned 450kt of hazardous waste in the open air over half an hectare
• More than 10 years later the local administration is still collecting funds to proceed to the removal and cleaning of the area
• In 2011 a big producer of aluminium alloys in Spain was involved in the transport without authorisation and illegal landfilling of 1.5kt of salt slags on a vacant lot
  • Befesa was ultimately contracted to treat the waste properly
• Befesa collects and recycles hazardous waste from steel producers and aluminium recyclers
• Recycling is mandatory for Befesa's clients due to environmental regulations
• Befesa takes off and effectively takes care of environmental liability for their clients
• Without timely and regulatory compliant offtake of hazardous waste clients face risk of complete shut-down of production as well as severe penalty payments
• Befesa therefore offers a critical element of its clients value chain

5 Highly Resilient Business

Continue profitable growth trend … strong operational cash flow funds growth initiatives

(1) Total revenue excludes internal revenues and are comparable figures after amendment IFRS 15 affecting the revenue recognition of non-operating sales in the 2nd Aluminium subsegment; These non-operating sales have limited margin contribution; Reported revenues amounted to €611.7m in fiscal year 2016 and €724.8m in fiscal year 2017

(2) Total EBITDA and EBIT figures of 2016 and 2017 are adjusted for one-off items; Reported EBITDA amounted to €128.8m in 2016 and €153.0m in 2017;

Reported EBIT amounted to €84.3m in 2016 and €122.4m in 2017; EBITDA and EBIT margins as a % of comparable revenue

(3) Operating cash flow per audited consolidated statement of cash flows; after WC, taxes & interest; pre capex & pre dividend

Accelerating growth through well defined business plan; Hedging in place and executing top 5 growth projects + China

1 Hedging

• 2019: 92.4kt at ~€2,325/t
• 2020: 92.4kt at ~€2,260/t
• H1 2021: 46.2kt at ~€2,230/t
• 2 Organic growth
  • 2019/20 focus top 5 projects:
  • Steel Dust:
    • Turkey 65110kt; Ramp-up Q3´19
    • Korea washing plant; Completion Q4´19
  • Aluminium Salt Slags:
    • 2x tilting furnaces (✓Bilbao, Barcelona Q3´19)
    • Expand Hannover (130kt 170kt)
• 3 China

plan

6

• Developing two EAF dust recycling plants in two provinces:

  • 1 (Jiangsu): broke ground in April ´19; Ramp-up ~H2´20

  • 2 (Henan): agreement signed; breaking ground in Q4´19; Ramp-up ~H1´21

Senior management team delivering results through long standing industry expertise, entrepreneurial spirit and focus on operational excellence as well as governance and compliance processes

Wolf Lehmann

CFO; including responsibilities for Operational Excellence and IT

CEO since 2000

Has run Befesa for >15 Years Became President of Abengoa's Environmental Services Division in 1994

Asier Zarraonandia Vice President Steel Dust Recycling Services

Javier Molina

CEO

>15 yrs with Befesa >25 yrs with Befesa

Has run the Steel Dust Recycling Services Business for >10 years

CFO since 2014

20+ years in finance and operational leadership roles 50/50 General Electric / Private Equity

Federico Barredo Vice President Aluminium Salt Slags Recycling Services

Has run the Aluminium Salt Slags Recycling Service Business for >15 years

Key achievements / track record

Extensive experience in steel and aluminium recycling business

Strong performance results through focus on operational excellence

Building strong business foundation of ESG, compliance and health & safety processes

Successful international expansion

Track record of successful acquisitions and turnarounds (BUS, Agor, Alcasa, Hankook, Silvermet etc.)

Experience in developing greenfield projects (South Korea, Gravelines, Bernburg)

BEFESA Investor Agenda

Financial Calendar	Meet Befesa …
✓ Wednesday, 8 May 2019:	14 May 2019 – Midcap Partners
Q1 2019 Statement & Analyst Call	Paris, Annual Small & Midcap Conference
	21-23 May 2019 – Berenberg
Wednesday, 19 June 2019:	New York, US Conference 2019
Annual General Meeting in Luxembourg
	28 May 2019 – Mainfirst
	Frankfurt, SMid Cap one-on-one Forum 2019
Thursday, 25 July 2019:
H1 2019 Interim Report & Analyst Call	5-7 June 2019 – Deutsche Bank
	Berlin, dbAccess Conference
Thursday, 31 October 2019:	11-13 June 2019 – Stifel
Q3 2019 Statement & Analyst Call	Boston, 2019 Cross Sector Insight Conference
	27-29 August 2019 – Commerzbank
	Frankfurt, Sector Conference 2019
	10-12 September 2019 – J.P. Morgan
	London, Pan European Small & Mid-Caps
	19-20 September 2019 – Citi
	London, SMID/Growth Conference 2019
	23-25 September 2019 – Goldman Sachs & Berenberg
	Munich, 8th German Corporate Conference
IR Contact	13-14 November 2019 – Goldman Sachs
Rafael Pérez	London, 8th Global Natural Resources Conference
Director of Investor Relations & Strategy
T: +49 (0) 2102 1001 340	2-5 December 2019 – Berenberg
E: irbefesa@befesa.com	London/Pennyhill Ascot, European Conference 2019

Note: Befesa's financial reports and statements are published at 7:30 am CEST

Befesa cannot rule out changes of dates and recommends checking them in the Investor Relations / Financial Calendar section of our website www.befesa.com