Befesa S.A.

Investor Presentation • Sep 23, 2021

Baader

Befesa Presentation

10th Baader Investment Conference 2021

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; 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 its 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 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.

Second quarter and first half 2021 figures contained in this presentation have not been audited or reviewed by external auditors.

This presentation includes Alternative Performance Measures (APM), 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 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.

EAFD recycling plant at Asúa -Erandio, Spain

H1 record EBITDA; AZR acquisition closed; ✓MDAX

€94.1m

H1'21 EBITDA 70% up yoy (H1'20: €55.3m), 24% margin (vs. 18% in H1'20) 18% or €14m up vs. H1'19

€45.3m Q2'21 EBITDA

109% up yoy (Q2'20: €21.7m), 24% margin (vs. 18% in Q2'20)

Plant utilisation continued at solid pre-COVID levels

€70.2m

H1'21 Operating cash flow €59.0m up yoy (H1'20: €11.2m)

€196.6m of cash on hand1) , €32.6m up vs. Q1'21 at €164.0m

Leverage x2.24 LTM Q2'21, improved from x2.77 at Q1'21 and x3.10 at YE'20

FY'21 guidance

• FY EBITDA of €165 to €190m, +30% to +50% yoy
• €46.8m (€1.17 / share) dividend distributed on 14 July

US

Acquired 100% of AZR's recycling assets

• AZR is a US market leader in electric arc furnace steel dust (EAFD) recycling
• Signed in June, Closed 17 August 2021
• Integrating & consolidating in Q3

China

Expansion on track

• Jiangsu: Ramping up; In trial production
• Henan: Construction progressing on time and budget; Completion scheduled in Q4

ESG

• 2020 ESG Progress Update published on 27 April
• Befesa continues to be a vital player within the circular economy with strong ESG credentials

Hedging

• Befesa ex US hedge book fully extended to Oct ´24, c. 3 years; Zinc US (AZR) hedged for coming c. 2 yrs
• Providing increased earnings and cash flow visibility

MDAX

• IPO in 2017
• SDAX in 2018
• MDAX entry effective 20 Sept 2021; Confirmed by Deutsche Börse 03 Sep 2021

Credit ratings

• S&P upgraded Befesa to 'BB+, outlook stable' (18 June 2021)
• Moody's affirmed Befesa's 'Ba2, outlook stable' (17 June 2021)

1) Reported cash position of €527.2 million adjusted for the €330.6 million of net funds raised through the capital increase in connection with the AZR acquisition closed on 17 August 2021

Mid-term growth roadmap

Executing well defined growth roadmap even during COVID-19; Focus 2021: Ramping up operations at the first two EAFD recycling plants in China; Integrating AZR in the US

Note: Chart is illustrative and size of respective arrows in the chart is not indicative to the underlying growth potential

1) FY 2020 normalised for a) Zinc LME @\$2,500/t (long-term consensus), and b) TC @\$225/t (9% \$2,500/t LME)

HEDGING 1

• Befesa ex US's hedge book fully extended to Oct ´24, c. 3 years; Befesa Zinc US (AZR) hedged for coming c. 2 years;
• Providing increased earnings and cash flow visibility

ORGANIC GROWTH 2

Top 5 projects:

• Steel Dust:
  • Turkey expansion: Completed
  • Korea washing: Completed
• Aluminium Salt Slags:
  • 2 tilting furnaces (Spain): Completed

CHINA 3

First two EAFD recycling plants in two provinces (Jiangsu and Henan)

US / AZR ACQUISITION 4

Integrating four EAFD recycling plants acquired from AZR and realising near– and mid– term synergies

Zinc prices & hedging strategy

Befesa ex US fully hedged up to Oct'24, c. 3 years (Zinc US hedged for c. 2 years); Improving earnings & cash flows visibility

Source: London Metal Exchange (LME) zinc daily cash settlement prices; Company information

Zinc hedges & blended average prices (€/t)

	H1 2020	H1 2021
Unhedged	37% or 27kt @ €1,855/t LME	33% or 23kt @ €2,349/t LME
Hedged	63% or 46kt @ €2,234/t	67% or 46kt @ €2,200/t
Blended1)	€2,064/t	€2,254/t
		+€190/t / +9% yoy

Hedging strategy unchanged:

• Befesa ex US fully hedged up to and incl. Oct'24, c. 3 years Note: Befesa Zinc US hedged for coming c. 2 years
• Targeting 60% to 75% of zinc equivalent volume
• Befesa providing no collateral

1) Zinc blended prices are averages computed based on the monthly effective LME zinc and hedging prices weighted with the respective hedged and non-hedged volumes

EAF steel production -&- Befesa's steel portfolio growth & diversification

China is the largest and growing EAF steel producer worldwide; Befesa growing and diversifying its portfolio to capture China and US addressable markets

• China EAFD addressable market > 1.5 million tonnes1) vs. c. 1.0–1.3 million tonnes1) in EU-27 and US each; Expected to grow in share and tonnage

• Befesa Steel portfolio growing @ c. 6% CAGR (around twice GDP) while diversifying to a well-balanced Europe / Asia / US footprint

Sources: Worldsteel; Company data; IEA

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1) Assuming 15kg to 20kg EAFD generated per tonne of EAF crude steel output; 2) Europe defined as EU-27; 3) Asia includes Turkey, South Korea and China 4) "Iron and Steel Technology Roadmap" study by IEA, October 2020

EAFD annual installed recycling capacity1) 2), kt

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1) Source: Own estimate based on recycling capacity; 2) Based on Company's public reports and presentations; 3) Using Waelz technology

China I

Changzhou plant, Jiangsu province

Key facts of the plant:

• 1 st EAFD recycling plant in China
• Capacity to recycle 110kt EAFD p.a.
• Total investment: c. €42m
• Location: Changzhou (Jiangsu province)

Status update:

• Long-term financing closed Jul'20
• Construction completed, on time & on budget
• Finalising hot commissioning & trial production; Ramping up and starting commercial operations H2 Recycling kiln

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2

China II

Xuchang plant, Henan province

Key facts of the plant:

• 2 nd EAFD recycling plant in China
• Capacity to recycle 110kt EAFD p.a.
• Total investment: c. €42m
• Location: Xuchang (Henan province)

Status update:

• Long-term financing closed Dec'20
• Construction progressing on time & on budget; Completion scheduled in Q4

Changzhou plant, completed

in operations

Xuchang construction site, mid-August 2021

Sustainability at Befesa

Key player within the circular economy, with c. 2 million tonnes recycled and c. 1.5 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 towards a more sustainable economy

Lost Time Injury Rate (LTIR)

• Excellence in health & safety is a priority for Befesa
• Aiming to reduce LTIR by at least 50% by 2024 vs. 2019

ESG Ratings BBB Commercial services B Top 3 of 205 Metals & mining 14.8 #3 of 60 Commercial services #5 of 105 Business services

Global Challenges Index (GCX) Sustainability Report

• Befesa selected on 18 Sep 2020
• GCX comprises a total of 50 shares selected according to strict criteria from a total of c. 6,000 companies worldwide

• Befesa 2020 ESG Progress Update was published on 27 April 2021

Befesa FY'21 EBITDA guidance & assumptions

H1 annualised and expected strong H2 indicating upper end of FY'21 guidance range; Updating FY'21 guidance after consolidation of AZR acquisition, as part of the Q3 reporting cycle (28 October 2021)

EBITDA	Lower-end: €165m EBITDA (above 2019 of €160m)	Upper-end: €190m EBITDA (new record)
Main assumptions: 1) Volume / Capacity utilisation	• Moderate recovery from COVID-19 • China ramping up & delivering commercial output in H2 on schedule • Overall capacity utilisation at c. 85–90%	• Strong recovery from COVID-19 • China ramping up & delivering commercial output in H2 on schedule • Overall capacity utilisation at c. 90–95%
2) Metal prices	• Zinc & aluminium market prices slowing down in H2 (vs. strong Q1'21 level) • TC referenced at \$159/t	• Metal market prices maintaining strong Q1'21 levels for 2021 (c. \$2,750/t zinc LME; c. €2,000 alu alloy FMB) • TC referenced at \$159/t
3) Dividend	€46.8m (€1.17 / share) dividend distribution, equal to: • Distributing 98% of €47.6m net profit in FY'20 • Distributing net profit at upper-end of 50% on a two-year view: FY'19 €24.9m + FY'20 €46.8m dividend = €71.7m, equal to 55% of FY'19 €82.7m + FY'20 €47.6m net profit = €130.3m
Capex	• Continuing to fund China expansion • Total capex of c. €75–90m: c. €50–60m growth (China), majority funded through China local loans; c. €25–30m regular maintenance / IT / compliance / operational excellence investments
Cash flow, cash position & net leverage	• c. +€25m • Cash position c. €180m • Net leverage at c. x2.5 (below 2019 of x2.6)	• c. +€45m • Cash position c. €200m • Net leverage at c. x2.1 (back to 2018 level)

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BEFESA acquired creating a global leader in EAFD recycling

Acquisition of AZR 02 closed on 17 August 2021

Transaction highlights

• On 16 June 2021, Befesa signed the acquisition of 100% of American Zinc Recycling (AZR)'s recycling assets for a purchase price of \$450m / €372m – implying an attractive c. 6x post near-term synergies EBITDA acquisition multiple, about half of Befesa's current 2021E trading multiple of c. 13x
• AZR is a US market leader1) in recycling electric arc furnace steel dust (EAFD) with c. 620kt EAFD capacity; Similar to Europe, a highly-regulated, mature market; full-service model incl. collection fees
• Through this acquisition, Befesa becomes a global leader1) in EAFD recycling with c. 1.7 million tons combined EAFD capacity, and a geographically diversified and balanced footprint in Europe, Asia and the US across 12 facilities
• Funded through a mix of
  • accelerated equity offering (5.9m shares as per authorized capital), completed on 17 June, -and-
  • pre-approved term loan B (TLB) add-on (€100m), allocated and priced at par, ensuring leverage neutral
• Highly accretive transaction for Befesa shareholders with strong expected returns achievable within first 3 years of combination:
  • > €300m value creation;
  • Strong double-digit EPS accretion;
  • ROIC >> Befesa's WACC
• On 17 August 2021, Befesa closed the transaction as expected and on time
• As part of this transaction, Befesa signed the acquisition of a minority 6.9% stake in a US strategic zinc refining plant for a purchase price of \$10m, and secured an option for the acquisition of the remaining 93.1% stake upon fulfilment of two-phased operational and financial milestones of the zinc refining plant

1) Source: Own estimate based on recycling capacity, including Befesa's first two EAFD recycling plants in China

Acquired 100% of recycling assets upfront; incremental add-on option for new zinc refining plant (ramping up)

AZR is one of the largest EAFD recycler in North America1) with 4 plants with c. 620kt total capacity

EAFD recycling assets	Zinc refining
1 Barnwell, SC	2 Rockwood, TN	5 Rutherford County, NC
165kt	147kt	141kt
3 Calumet, IL	4 Palmerton, PA
142kt	163kt	3 4 5 2 1 EAF mini mills
X EAFD annual nameplate recycling capacity		AZR's EAFD recycling plants
X	Special High-Grade Zinc (SHG) annual nameplate production capacity	are centrally located close to the major US EAF steel mini mills

1) Source: Own estimate based on recycling capacity

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Decarbonisation driving further growth of EAF steel production in the US

EAF method expected to grow further to >70% share by 2025

Source: worldsteel; Citi Research; International Energy Agency (IEA); Own estimates 1) Estimate assuming c. 17.5 kg of EAFD generated per tonne of crude steel output 2) "Iron and Steel Technology Roadmap" study by IEA, October 2020

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• US has one of the largest and growing markets of EAF steelmakers globally
• EAF is a prevailing steelmaking method in the US and is expected to continue to grow further > 70% share driven by decarbonisation trend
• Secondary steelmaking (EAF) consuming only 1/7 of CO^² /ton of steel2) vs. primary steelmaking BOF (basic oxygen furnace)

Befesa closed the AZR acquisition 17 August; Creating a global leader1) in EAFD recycling

EAFD annual installed recycling capacity1) 2), kt

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1) Source: Own estimate based on recycling capacity; 2) Based on Company's public reports and presentations; 3) Using Waelz technology

Attractive acquisition multiple with additional upside potential – 2021E pro forma view1)

1) 2021E PF figures presented across this presentation are to illustrate the effects of the transaction as if AZR had been part of the Befesa group as of 1 January 2021 and assuming that all near-term synergies were achieved already in 2021. Thus, 2021E PF view does not represent an update of Befesa's FY'21 Guidance provided on 27 April '21

2) Befesa's Steel Dust business calculated as 78% (last-three-year average, 2018–2020) of total Befesa's EBITDA 2021E of €177.5m (mid-point of €165–190m guidance)

3) Includes €13m PF adjustment computed as difference between Befesa's vs. AZR's uncompetitive hedging prices for 2021 (Befesa: €2,150/t or \$2,580/t at FX 1.20; AZR: \$2,399/t or €1,999/t), x 83kt hedged by AZR

4) For illustrative purposes, PF assumes pre-tax near-term synergies of c. \$20m, or €17m at FX\$/€ 1.20 expected to be achieved within first three years of combination

5) Befesa's FV/EBITDA 2021E multiple of 12.5x calculated based on a share price of €58.45 (L10 day avg. as of 15 Jun'21) and €191m EBITDA (consensus average as of 15 Jun'21)

6) Based on a purchase price for AZR Recycling of \$450m, or €375m at FX\$/€ 1.20

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7) Expected to be achieved within first three years of combination; 8) Both Befesa and AZR financials shown are based on IFRS

Strong near– & mid– term synergy potential identified

Total pre-tax near-term synergies of c. \$20/€17m expected within first three years of combination

One-time implementation costs of c. €10 to 15m (during first 18 months of integration) applying Befesa's proven operational excellence rigor with on average < 2–year payback

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1) AZR has hedged at \$2,767/t for 2022 vs. AZR 2021 Pro Forma hedges at c. €2,150/t (or \$2,580/t at FX \$/€ 1.20) → +\$187/t on c. 83kt hedged = c. \$15.5m / €12.9m

Leverage–neutral transaction with expected strong double–digit EPS accretion1)

178 62 240 Befesa 2021E AZR Recycling 2021 PF post-synergies Combined 2021 PF post-synergies EBITDA, €m Financial profile – 2021E Combined Pro Forma3) Mid-point of €165 to €190m 2021E guidance + BEFESA Combined PF post near-term synergies BEFESA 2021E Recycling PF post near-term synergies

c. €408 c. x2.3 c. €508 x2.1–2.2 €100 TLB add-on Net debt, €m Net leverage Targeting leverage-neutral

acquisition funding

1) Expected to be achieved within first three years of combination

2) Excludes one-time transaction expenses

• Contingent FX hedging in place

3) For illustrative purposes, Pro Forma includes AZR's new improved hedging program and near-term synergies

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Diversifying the highest margin business unit and further improving Befesa's overall profitability

EAFD recycling capacity1) EBITDA by segment

Diversifying towards a globally well-balanced European / Asian / US footprint

Befesa's overall profitability improving by growing the highest margin Steel Dust business unit

1) Company's information

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2) 1,045kt EAFD recycling capacity includes 220kt from the first two plants in China (Jiangsu & Henan provinces) scheduled to ramp up operations in 2021

3) €178m represents the mid-point of Befesa's FY 2021 guidance provided on 27 April 2021; Percentages are based on L3Y average financials

4) c. €240m represents the sum of a) Befesa standalone of €178m (mid-point of FY 2021 guidance) and b) AZR Recycling FY 2021E PF of €62m, post near-term synergies

AZR's zinc refining asset: strategic integration opportunity to support EAFD recycling operations in the US

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Plant footprint

• Close proximity to AZR recycling plants, at Rutherford County, NC
• Applies new solvent extraction technology for zinc refining
• Restarted operations in 2020; Ramping up; Capacity to produce c. 141kt pure zinc (SHG) per year

Strategic rationale

• Process WOX from all AZR recycling plants into pure zinc (SHG)
• WOX purchased from AZR recycling at market prices
• Address shortage of zinc refining capacity in the US/North America
• Supports AZR to become vertically-integrated:
  • Closed-loop, end-to-end, 100% green to AZR's EAF steel clients
  • Reduces exposure to zinc treatment charge volatility
• No change in Befesa's global strategy

Secured option to acquire AZR's zinc refining asset only upon fulfilling operational & financial performance milestones

Payment schedule to acquire AZR's zinc refining asset1), \$m

Total purchase price represents c. 7x estimated EBITDA3) acquisition multiple

1) Milestone-based purchase prices subject to certain possible adjustments

2) Max. time frame for the potential earn out is 31 December 2023

3) EBITDA of \$20 to \$25m, expected to be achieved within first 3 years after Closing

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The acquisition of AZR's recycling business represents a key step on Befesa's accelerated growth path …

1) Source: Own estimate based on recycling capacity; 2) 2007 actuals PF for the non-core Industrial Environmental Solutions business divested in 2016; 3) 2017 adjusted for one-time IPO-related costs; 2017 reported EBITDA of €153m; 4) 2021E Combined PF incl. AZR's new improved hedging program and near-term synergies for illustrative purposes

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Nanjing City, Location of Befesa China's HQ

Consolidated key financials

H1 EBITDA at €94.1m, all-time-high, driven by strong base metal prices as well as continued solid volumes with strong plant utilisation at pre-COVID levels

EBITDA bridge H1 2020 to 2021 (€m)

1) EPS in H1 2020 is based on 34,066,705 shares; H1 2021 is based on 34,525,634 weighted average shares after the capital increase of 5,933,293 new shares to partly fund the AZR acquisition 2) Reported cash position of €527.2 million at Q2 2021 closing, adjusted for the €330.6 million of net funds raised through the capital increase in connection with the AZR acquisition closed on 17 Aug 2021

3) Net debt and leverage figures at Q2 2021 closing are based on the adjusted cash position of €196.6 million

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Steel Dust Recycling Services

H1 EBITDA at €69.2m, performing at strongest earnings level at 35% margin, driven mainly by favourable zinc prices; Overall plant utilisation continued at pre-COVID levels

EBITDA bridge H1 2020 to 2021 (€m)

+€24.5 / +54.7%

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

Aluminium Salt Slags Recycling Services

H1 EBITDA at €24.8m, delivered record level results, doubling yoy; Mainly driven by higher aluminium metal prices yoy; Overall plant utilisation continued at solid pre-COVID-19 levels ≥ 90%

1) Total revenue is after intersegment eliminations (H1 2020: €15.3m; H1 2021: €19.5m)

2) Plant utilisation rates calculated as either salt slags/SPL treated, or aluminium alloys produced against the corresponding annual installed capacity, based on the calendar days of the period 3) Aluminium scrap and foundry ingots aluminium pressure diecasting ingot DIN226/A380 European Metal Bulletin free market duty paid delivered works

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Cash flow, net debt & leverage

Record cash balance at €197m & liquidity at €272m with €75m RCF entirely undrawn; Net leverage improved to x2.24 at Q2 closing, triggering next interest ratchet of 1.75% vs. 2.0%

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2) Includes cash bank inflows/outflows from bank borrowings and other liabilities, as well as the effect of foreign exchange rate changes on cash 3) Adjusted for the €330.6 million of net funds raised through the capital increase in connection with the AZR acquisition closed on 17 Aug 2021

	At 30 Jun 2020	At 31 Dec 2020	Change	At 30 Jun 2021
LTM EBITDA	€134.8	€127.0	+€38.9 / +30.6%	€165.8
LTM operating cash flow	€65.0	€92.5	+€59.0 / +63.8%	€151.6
Gross debt	€530.2	€548.2	+€19.9 / +3.6%	€568.1
Cash on hand4)	€106.6	€154.6	+€42.1 / +27.2%	€196.6
Net debt	€423.5	€393.6	-€22.2 / -5.6%	€371.4
Net leverage	x3.14	x3.10	-x0.86	x2.24

4) Reported cash position of €527.2 million at Q2 2021 closing, adjusted for the €330.6 million of net funds raised through the capital increase in connection with the AZR acquisition closed on 17 Aug 2021

Secondary aluminium production plant at Bernburg, Germany

Befesa at a glance

Global leader in Europe, Asia and US in providing regulated critical hazardous waste recycling services to the steel and aluminium industries

Source: Company information, International Consulting Firm based on World Steel Association's Steel Statistical Yearbooks, WBMS, industry research, expert Interviews.

1) Figures do not include the contribution from AZR's acquisition closed on 17 August 2021

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2) Excluding internal revenue; revenue split is calculated on revenues including internal revenue; 3) Including recycling of SPL (a hazardous waste generated in primary aluminium production)

Key milestones

Befesa has grown successfully through organic initiatives and acquisitions

1) Through 51/49 JV with Canadian Silvermet; 2) By acquiring subsequent stakes in the Korean Hankook; 3) Free-float at 100% after Triton's exit on 6 June 2019

EAFD expansion China

Developing first two EAFD recycling

plants in China:

Investment highlights

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Global leader in Europe, Asia & North America

Befesa is the global leader in steel dust and salt slags recycling services with a competitive advantage due to its close-proximity to key clients Clients EAFD recycling plants Salt slags & SPL recycling plants Asúa-Erandio Valladolid Fouquières-lès-Lens1) Iskenderun Gyeongju Jiangsu & Henan2) Hannover Freiberg Lünen Duisburg Palmerton, PA Barnwell, SC Calumet, IL Rockwood, TN

Market share in % #2 #3 Capacity in kt Europe Market share in % #2 #3 Capacity in kt Asia Market share in % #2 Capacity in kt North America

Note: Footprint reflects only Befesa's core recycling services – Steel Dust and Salt Slags & SPL

Market share in % #2 #3 Capacity in kt Europe

1) 50/50 joint venture with Recylex

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2) Changzhou, Jiangsu province: construction completed in Q1'21, commissioning in process and commercial output expected in H2; Xuchang, Henan province: completion of construction expected after summer of 2021, with ramp-up in H2

ALU SALT SLAGS RECYCLING

Highly regulated & critical service model

Befesa is the leading environmental services partner in the circular economy of the 2nd steel and aluminium industry by recycling and avoiding the landfilling of c. 2 MT hazardous residues and recovering c. 1.5 MT of new valuable materials

All figures are the average of the fiscal years 2018, 2019 and 2020 and do not include contribution from AZR's acquisition closed on 17 August 2021

Value chains are simplified and only reflect Befesa's core business segments (i.e. Steel Dust; Aluminium Salt Slags):

• Within Steel Dust Recycling Services business segment Befesa manages a Stainless sub-segment (94 kt stainless steel dust throughput, average over L3Y period 2018-2020)

• Within Aluminium Salt Slags Recycling Services business segment Befesa manages a Secondary Aluminium sub-segment (173 kt 2nd aluminium alloys produced, average over L3Y period 2018-2020)

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

Wolf Lehmann

incl. responsibilities for operational excellence & IT

Federico Barredo Vice-president

Aluminium Salt Slags Recycling Services

CFO;

• CEO since 2000
• Leading Befesa for >20 years

CEO

• CFO since 2014
• 20+ years in finance & operational leadership roles, 50/50 General Electric / PE

Javier Molina Key achievements / track record

aluminium recycling business, including managing through the cycle

Strong performance results through focus on operational excellence

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

Asier Zarraonandia Vice-president Steel Dust Recycling Services

• 15+ years with Befesa

• Running Befesa's Steel Dust business for >15 years

• 25+ years with Befesa
• Running Befesa's Aluminium Salt Slags business for >20 years

Successful international expansion

Track record of successful acquisitions and turnarounds, e.g., BUS, Agor, Alcasa, Hankook, Silvermet, AZR

Experience in developing greenfield projects, e.g., Gravelines, South Korea, Bernburg, China

Waelz kiln at EAFD recycling plant in Gyeongju, South Korea

Investor agenda 05 & appendix

Investor agenda

Extraordinary General Meeting Tuesday, 5 October 2021

Q3 2021 Statement & Conf. Call Thursday, 28 October 2021

Financial calendar Next investor conferences Q3 2021 Q4 2021

• ✓ Commerzbank Corporate Conference 2021 (virtual) 31 Aug – 2 Sep – Commerzbank
• ✓ Citi Growth Conference (virtual) 17 Sep – Citi
• ✓ 10th German Corporate Conf. (virtual) 20 & 21 Sep – Berenberg & Goldman Sachs
• ✓ 10th Baader Investment Conference 2021 (virtual) 23 Sep – Baader

London – Global Natural Resources Conference 2021 11 Nov – Goldman Sachs

London – Stifel US Industrials Summit 2–3 Dec – Stifel

Pennyhill Park, Surrey – Berenberg European Conference 2021 7 Dec – Berenberg

Contact details

Rafael Pérez

Director of Investor Relations & Strategy Phone: +49 (0) 2102 1001 0 email: irbefesa@befesa.com

Q2 2021/20 – Key financials

(€m, unless otherwise stated)

	Steel Dust	Salt Slags	Secondary Aluminium	Corporate & eliminations	Total Befesa
Revenue1)	€94.4	€17.5	€89.8	-€10.2	€191.6
yoy change	+€20.2 / +27.1%	+€1.7 / +10.9%	+€50.1 / +125.9%	-€2.5 / -	+€69.4 / +56.8%
EBITDA	€32.7	€5.2	€7.3	€0.0	€45.3
yoy change	+€13.9 / +74.1%	+€2.3 / +77.3%	+€6.6 / +979.2%	+€0.8 / -	+€23.6 / +108.7%
EBITDA margin	34.6%	29.9%	8.1%	-	23.6%
yoy change	+934 bps	+1,121 bps	+643 bps	-	+587 bps

1) Total revenue in Aluminium Salt Slags Recycling Services amounted to €48.7m in Q2 2020 and to €97.9m in Q2 2021 after intersegment eliminations of €6.8m in Q2 2020 and of €9.5m in Q2 2021

H1 2021/20 – Key financials

(€m, unless otherwise stated)

	Steel Dust	Salt Slags	Secondary Aluminium	Corporate & eliminations	Total Befesa
Revenue1)	€195.3	€37.3	€172.3	-€20.7	€384.2
yoy change	+€19.8 / +11.3%	-€0.6 / -1.5%	+€67.1 / +63.8%	-€3.3 / -	+€83.0 / +27.6%
EBITDA	€69.2	€11.1	€13.7	€0.1	€94.1
yoy change	+€24.5 / +54.7%	+€2.3 / +26.3%	+€10.3 / +302.0%	+€1.8 / -	+€38.9 / +70.4%
EBITDA margin	35.4%	29.8%	8.0%	-	24.5%
yoy change	+995 bps	+656 bps	+471 bps	-	+615 bps

1) Total revenue in Aluminium Salt Slags Recycling Services amounted to €127.7m in H1 2020 and to €190.1m in H1 2021 after intersegment eliminations of €15.3m in H1 2020 and of €19.5m in H1 2021

Multi-year trend – Key financials1)

	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 margin	22.9%2)	24.4%	24.6%	20.4%
Adjusted EBITDA	€172.43)	€176.0	€159.6	€127.04)
Adjusted EBITDA margin	25.8%2)	24.4%	24.6%	21.0%
Net profit5)	€49.3	€90.2	€82.7	€47.6
EPS5) (€)	€1.026)	€2.65	€2.43	€1.40
Operating cash flow7)	€91.5	€103.8	€102.5	€92.5
Cash position end of period	€117.6	€150.6	€125.5	€154.6
Net debt	€406.4	€376.8	€416.9	€393.6
Net leverage	x2.4	x2.1	x2.6	x3.1

1) 2017, 2018 and 2019 are full year actual reported figures audited by external auditors; 2020 are full year preliminary figures currently being audited by external auditors

2) FY 2017 reported revenue amounted to €724.8m; Revenue of €667.4m is comparable after amendment IFRS 15 impacting non-operating revenue

3) 2017 EBITDA adjusted due to one-off non-recurrent items primarily related to the IPO

4) 2020 EBITDA adjusted for €3.5m for the UK Salt Slags plant closure

5) Net profit and total basic earnings/(losses) per share attributable to the ordinary equity holders of Befesa S.A.

6) FY 2017 EPS impacted by the conversion of the preferred shares carried out in October 2017 prior to the IPO; The weighted average number of ordinary shares used as the denominator in calculating total basic EPS in FY 2017 was 25,025 thousand shares, compared to the 34,067 thousand shares used from 2018 onwards

7) Operating cash flow is after WC change, taxes and interests; pre capex and pre dividend

Q2 2021/20 – Operational data – Steel Dust Recycling Services

	Q2 2020	Q2 2021	yoy change
EAFD throughput (kt)	155.6	159.6	+4.0 / +2.6%
EAFD average capacity utilisation (%)	75.8%	77.6%	+173 bps
Waelz oxide (WOX) sold (kt)	58.7	52.6	-6.1 / -10.4%
Zinc LME price (€/t)	€1,780	€2,418	+€639 / +35.9%
Zinc hedging price (€/t)	€2,225	€2,199	-€26 / -1.2%
Zinc blended price1) (€/t)	€1,991	€2,275	+€284 / +14.3%

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

H1 2021/20 – Operational data – Steel Dust Recycling Services

	H1 2020	H1 2021	yoy change
EAFD throughput (kt)	341.2	340.7	-0.6 / -0.2%
EAFD average capacity utilisation (%)	83.1%	83.2%	+9 bps
Waelz oxide (WOX) sold (kt)	126.5	119.3	-7.1 / -5.6%
Zinc LME price (€/t)	€1,855	€2,349	+€494 / +26.7%
Zinc hedging price (€/t)	€2,234	€2,200	-€34 / -1.5%
Zinc blended price1) (€/t)	€2,064	€2,254	+€190 / +9.2%

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

Q2 2021/20 – Operational data – Aluminium Salt Slags Recycling Services

	Q2 20201)	Q2 2021	yoy change
Salt Slags & SPL treated (kt)	105.7	91.3	-14.4 / -13.6%
Salt Slags & SPL avg. cap. utilisation (%)	80.2%	81.4%	+117 bps
Aluminium alloys produced (kt)	31.3	48.2	+16.8 / +53.7%
Secondary Alu avg. capacity utilisation (%)	61.5%	94.2%	+3,277 bps
Aluminium alloy FMB price2) (€/t)	€1,282	€1,945	+€663 / +51.7%

1) Salt slags & SPL volumes and corresponding capacity utilisation figures in Q2 2020 include data contributed by the plant in the UK, which was permanently closed in Q4 2020 2) Aluminium scrap and foundry ingots aluminium pressure diecasting ingot DIN226/A380 European Metal Bulletin free market duty paid delivered works

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H1 2021/20 – Operational data – Aluminium Salt Slags Recycling Services

	H1 20201)	H1 2021	yoy change
Salt Slags & SPL treated (kt)	230.4	195.8	-34.7 / -15.0%
Salt Slags & SPL avg. cap. utilisation (%)	87.4%	87.7%	+29 bps
Aluminium alloys produced (kt)	79.3	99.5	+20.2 / +25.5%
Secondary Alu avg. capacity utilisation (%)	77.7%	97.8%	+2,008 bps
Aluminium alloy FMB price2) (€/t)	€1,357	€1,963	+€606 / +44.6%

1) Salt slags & SPL volumes and corresponding capacity utilisation figures in H1 2020 include data contributed by the plant in the UK, which was permanently closed in Q4 2020 2) Aluminium scrap and foundry ingots aluminium pressure diecasting ingot DIN226/A380 European Metal Bulletin free market duty paid delivered works

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Multi-year trend – Operational data

	2017	2018	2019	2020
EAFD throughput (kt)	661.0	717.1	665.8	687.0
EAFD average capacity utilisation (%)	84.7%	92.0%	80.7% / 90.1%1)	83.0%
Waelz oxide (WOX) sold (kt)	217.8	240.9	217.6	239.2
Zinc LME price (€/t)	€2,572	€2,468	€2,276	€1,979
Zinc hedging price (€/t)	€1,876	€2,051	€2,317	€2,239
Zinc blended price2) (€/t)	€2,160	€2,168	€2,280	€2,136
Salt Slags & SPL treated (kt)	509.9	517.0	492.6	444.6
Salt Slags & SPL avg. cap. utilisation (%)	96.2%	97.5%	92.9%	83.7% / 86.9%3)
Alu alloys produced (kt)	184.1	169.3	176.7	174.3
Secondary Alu avg. capacity utilisation (%)	89.8%	82.6% / 98.1%4)	86.2% / 91.1%5)	84.8%
Aluminium alloy FMB price6) (€/t)	€1,766	€1,715	€1,397	€1,420

1) Installed capacity and corresponding utilisation rates in 2019 are normalised for the capacity upgrade in Turkey, from 65kt to 110kt (plant was shutdown from end of Jan to mid-Aug 2019)

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

3) Installed capacity and corresponding utilisation rates in 2020 are normalised for the UK salt slags plant closure in Q4 2020

5) Installed capacity and corresponding utilisation rates in 2019 are normalised for the furnace upgrade in Barcelona – phase II (plant was shutdown three months, from mid-August to mid-November) 6) Aluminium scrap and foundry ingots aluminium pressure diecasting ingot DIN226/A380 European Metal Bulletin free market duty paid delivered works

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⁴⁾ Installed capacity and corresponding utilisation rates in 2018 are normalised for the furnace upgrades in Bilbao (plant was shutdown three months, from 2nd week of June to 3rd week of September), as well as the Barcelona - phase I (plant was shutdown two months, from 4th week of August to 4th week of October)

Consolidated key financials

Q2 EBITDA at €45.3m; benefited from favourable market prices; Volumes continued solid with plant utilisation at pre-COVID levels

EBITDA bridge Q2 2020 to 2021 (€m)

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+€23.6 / +108.7%

2) Reported cash position of €527.2 million at Q2 2021 closing, adjusted for the €330.6 million of net funds raised through the capital increase in connection with the AZR acquisition closed on 17 Aug 2021 3) Net debt and leverage figures at Q2 2021 closing are based on the adjusted cash position of €196.6 million

Steel Dust Recycling Services

Q2 EBITDA at €32.7m; Favourable zinc LME prices and TC, partially offset by slightly lower zinc hedging prices

EBITDA bridge Q2 2020 to 2021 (€m)

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

Aluminium Salt Slags Recycling Services

Q2 EBITDA at €12.5m, all-time-high, mainly driven by higher aluminium alloys & market prices partially offset by lower salt slags & SPL treated (UK closure)

1) Total revenue is after intersegment eliminations (Q2 2020: €6.8m; Q2 2021: €9.5m)

2) Plant utilisation rates calculated as either salt slags/SPL treated, or aluminium alloys produced against the corresponding annual installed capacity, based on the calendar days of the period 3) Aluminium scrap and foundry ingots aluminium pressure diecasting ingot DIN226/A380 European Metal Bulletin free market duty paid delivered works

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Cash flow, net debt & leverage

Record cash balance at €197m & liquidity at €272m with €75m RCF entirely undrawn; Net leverage improved to x2.24 at Q2 closing, triggering next interest ratchet of 1.75% vs. 2.0%

2) Includes cash bank inflows/outflows from bank borrowings and other liabilities, as well as the effect of foreign exchange rate changes on cash

3) Adjusted for the €330.6 million of net funds raised through the capital increase in connection with the AZR acquisition closed on 17 August 2021

	At 30 Jun 2020	At 31 Dec 2020	At 31 Mar 2021	Change	At 30 Jun 2021
LTM EBITDA	€134.8	€127.0	€142.2	+€23.6 / +16.6%	€165.8
LTM operating cash flow	€65.0	€92.5	€110.7	+€40.9 / +37.0%	€151.6
Gross debt	€530.2	€548.2	€558.7	+€9.4 / +1.7%	€568.1
Cash on hand4)	€106.6	€154.6	€164.0	+€32.6 / +19.9%	€196.6
Net debt	€423.5	€393.6	€394.7	-€23.2 / -5.9%	€371.4
Net leverage	x3.14	x3.10	x2.77	-x0.53	x2.24

4) Reported cash position of €527.2 million at Q2 2021 closing, adjusted for the €330.6 million of net funds raised through the capital increase in connection with the AZR acquisition closed on 17 Aug 2021

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