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    BFSA   LU1704650164

BEFESA S.A.

(BFSA)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 10/26 03:52:47 pm
69.5 EUR   -1.14%
10/21BEFESA : JP Morgan reiterates its Neutral rating
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10/18BEFESA : From Sell to buy Rating by Goldman Sachs
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10/04BEFESA : Kepler Cheuvreux sticks Neutral
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PRESS RELEASE: Befesa S.A.: Befesa reports record H1 EBITDA of EUR94m, up 70% versus 2020

07/29/2021 | 01:31am EDT
DGAP-News: Befesa S.A. / Key word(s): Half Year Results 
Befesa S.A.: Befesa reports record H1 EBITDA of EUR94m, up 70% versus 2020 
2021-07-29 / 07:30 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
/ 
PRESS AND INVESTOR ANNOUNCEMENT 
First half 2021 results 
Befesa reports record H1 EBITDA of EUR94m, up 70% versus 2020 
  . H1 2021 EBITDA grew by 70% to the highest recorded level of EUR94m, up EUR39m yoy; up 18% or EUR14m compared to H1 2019 
  . Record liquidity with EUR197m cash and improved leverage of x2.2 at H1 
  . China expansion on track: Plant in Jiangsu in trial production, whilst second plant in Henan is progressing on time 
    and budget with completion scheduled in Q4 
  . American Zinc Recycling Corp ("AZR") acquisition signed on June 16, with closing expected to take place in August 
  . Outlook for the remainder of the year remains very positive. Full year guidance for 2021 will be updated after the 
    closing and consolidation of the AZR acquisition 
Luxembourg, 29 July 2021 - Befesa S.A. ("Befesa"), the global market leader for steel dust and aluminium salt slags 
recycling services, reported another set of record-breaking financial results for H1, with expansion plans progressing 
well in China and the US. The Company reported H1 EBITDA of EUR94m, representing an increase of 70% compared to the 
previous year as well as 18% or EUR14m up vs. H1 2019; this underlines the sustained recovery since the COVID-19 induced 
lows of last year. Q2 stands at EBITDA of EUR45.3m, more than double at 109% or up EUR23.6m compared to Q2 2020. The 
outlook for 2021 remains very positive, annualised H1 and expected strong H2 indicate full year numbers should be at 
the upper end of the guidance range. Furthermore, Befesa intends to update its guidance after closing and consolidating 
the AZR acquisition, as part of its Q3 reporting cycle. 
Plant utilisation levels continued in Q2 at solid pre-COVID levels at >= 90%, especially considering that multiple of 
the scheduled annual plant maintenance overhauls were conducted in Q2 2021. Metal prices for both zinc and aluminium 
continued in Q2 approximately at the favorable Q1 levels (Zinc LME prices averaged at EUR2,418/t in Q2 and aluminum alloy 
FMB prices at EUR1,945/t). 
Operating cash flow grew by more than six times yoy to EUR70m in H1 2021. Befesa closed the period at a record EUR197m cash 
on hand, supporting enhanced credit ratings from Moody's, now at "Ba2 stable", and S&P, upgraded to "BB+ stable". This 
reinforces Befesa's financial strength and highlights the success of management's prudent cash management and 
discipline through the cycle. Leverage improved from x3.10 at year-end 2020 to x2.24 at Q2 close, triggering the next 
ratchet, reducing Befesa's term loan B (TLB) interest rate from 2% to 1.75%. 
Befesa's expansion in China has continued to progress on schedule and budget. The state-of-the-art electric arc furnace 
steel dust (EAFD) recycling plant in the Jiangsu province is now complete and in trial production mode, whilst the 
plant in Henan is progressing on budget and time for completion in Q4 2021. 
In the US, as announced on 16 June, Befesa has agreed to acquire 100% of AZR's recycling assets for a purchase price of 
USD450m and a minority stake in its zinc refining business for USD10m, with an option to acquire the remaining business 
once certain operational and financial performance milestones are fulfilled. This is a significant milestone for Befesa 
as AZR is a US market leader in providing EAFD recycling services, and the transaction represents a great step forward 
in accelerating Befesa's growth globally. The deal is expected to close in August 2021 and is financed through a 
capital increase of new ordinary shares from the existing authorised capital of EUR332m and a TLB add-on of EUR100m, 
maintaining Befesa's leverage ratio at similar levels post acquisition. 
Javier Molina, CEO of Befesa, commented: "We have built on the success of Q1 and delivered our strongest first half 
results on record. In the past six months, we have made significant progress operationally and financially, with 
targeted expansion and financial prudence paving the way for future growth in new and existing markets. Our focus 
remains on rigorous cash management while investing in growth, organically and inorganically. I am confident that our 
approach will continue to allow Befesa to play a significant role in protecting the environment and improving the 
sustainability of the steel and aluminium industry, while also delivering accelerated earnings growth to our 
shareholders. Our outlook for the remainder of the year remains very positive and after the closing and consolidation 
of the AZR acquisition we will update our full year guidance for 2021." 
Key figures 
in EURm                H1 2020 H1 2021 Change Q2 2020 Q2 2021 Change 
Revenues              301.2   384.2  27.6%   122.2   191.6  56.8% 
EBITDA                55.3    94.1   70.4%   21.7    45.3   108.7% 
Net profit            20.6    45.6   121.6%   5.9    20.8   253.7% 
EPS (EUR)               0.60    1.32   118.7%  0.17    0.60   249.0% 
Operating cash flow   11.2    70.2   >100%    2.8    43.7   >100% 
Net debt              423.5   371.4  -12.3%  423.5   371.4  -12.3% 
Leverage              x3.1    x2.2           x3.1    x2.2 

Notes: The cash position of EUR196.6 million at 30 June 2021 is based on the reported EUR527.2 million adjusted for the EUR330.6 million of net funds raised through the capital increase in connection with the AZR acquisition signed on 16 June 2021. Net debt and leverage figures at 30 June 2021 are based on the adjusted cash position of EUR196.6 million. EPS in H1/Q2 2020 is based on 34,066,705 shares, whilst in H1/Q2 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. The number of shares as at 30 June 2021 is 39,999,998 (34,066,705 at 31 December 2020).

Webcast Befesa will host a webcast on its half year 2021 results at 9:00 am CEST on 29 July 2021. Further details, a replay and other events are available on the Company's website: www.befesa.com Financial Calendar 2021 The financial calendar for 2021 is available in the Investor Relations / Investor's Agenda section on Befesa's website. For more information, please visit www.befesa.com About Befesa Befesa is a leading player in the circular economy, providing environmental, regulated services to the steel and aluminium industries with facilities located in Germany, Spain, Sweden, France, as well as in Turkey, South Korea and China. Through its two business units, Steel Dust and Aluminium Salt Slags recycling services, which are a critical part of the circular economy, Befesa manages and recycles around 1.5 million tonnes of residues annually, with a production of around 1.3 million tonnes of new materials, which Befesa reintroduces in the market, reducing the consumption of natural resources. Further information is available on the Company's website: www.befesa.com Investor Relations Director of Investor Relations & Strategy Rafael Pérez Email: irbefesa@befesa.com Phone: +49 2102 1001 0

Media Relations Katherine Fennell Email: katherine.fennell@kekstcnc.com Phone: +44 7971 828 445 -----------------------------------------------------------------------------------------------------------------------

2021-07-29 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de -----------------------------------------------------------------------------------------------------------------------

Language:     English 
Company:      Befesa S.A. 
              46 Boulevard Grande-Duchesse Charlotte 
              1330 Luxembourg 
              Luxemburg 
E-mail:       irbefesa@befesa.com 
Internet:     www.befesa.com 
ISIN:         LU1704650164 
WKN:          A2H5Z1 
Indices:      SDAX 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London 
EQS News ID:  1222497 
 
End of News   DGAP News Service 
=------------ 

1222497 2021-07-29

 
Image link: 
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1222497&application_name=news 
 

(END) Dow Jones Newswires

July 29, 2021 01:30 ET (05:30 GMT)

Stocks mentioned in the article
ChangeLast1st jan.
BEFESA S.A. -1.14% 69.5 Delayed Quote.35.98%
SDAX 0.99% 17057.45 Delayed Quote.14.40%
US DOLLAR / TURKISH LIRA (USD/TRY) -0.53% 9.5333 Delayed Quote.32.19%
All news about BEFESA S.A.
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09/20BEFESA S.A.(XTRA : BFSA) added to Germany MDAX Index (Performance)
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More news
Analyst Recommendations on BEFESA S.A.
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Financials
Sales 2021 819 M 950 M 950 M
Net income 2021 98,5 M 114 M 114 M
Net Debt 2021 445 M 516 M 516 M
P/E ratio 2021 26,6x
Yield 2021 1,94%
Capitalization 2 780 M 3 223 M 3 223 M
EV / Sales 2021 3,94x
EV / Sales 2022 3,07x
Nbr of Employees 1 195
Free-Float 94,6%
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Befesa S.A. Technical Analysis Chart | BFSA | LU1704650164 | MarketScreener
Technical analysis trends BEFESA S.A.
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TrendsNeutralNeutralBullish
Income Statement Evolution
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Mean consensus BUY
Number of Analysts 9
Last Close Price 69,50 €
Average target price 76,19 €
Spread / Average Target 9,62%
EPS Revisions
Managers and Directors
Javier Molina Montes Chief Executive Officer & Executive Director
Wolf Uwe Lehmann Chief Financial Officer & Executive Director
Romeo Kreinberg Independent Non-Executive Chairman
Frauke Heistermann Independent Non-Executive Director
Manuel Soto Serrano Independent Non-Executive Director
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