BEFESA Company Presentation April 2020 Befesa at a glance Befesa - PowerPoint PPT Presentation

BEFESA BEFESA Company Presentation April 2020

Befesa at a glance Befesa a market leader in Europe & Asia in providing regulated critical hazardous waste recycling services to the steel and aluminium industries Full Year 2019 Revenue: €648m (1) Full Year 2019 EBITDA: €160m 2nd 2nd Aluminium Aluminium 36% 8% Steel Dust Salt Slags Steel Dust 52% 13% 79% Salt Slags 12% +90% EBITDA generated from two core >30% EBITDA margin operations with low capital intensity Steel Dust Recycling Services (3) Aluminium Salt Slags Recycling Services Position in Europe (c. 45 – 50% market share) Position in Europe in Salt Slags subsegment #1 #1 and Asia (2) (c. 45 – 50% market share) EBITDA margin in Salt Slags subsegment 35% 26% EBITDA margin (FY 2019) (3) (FY 2019) (4) Relationships Relationships >15yrs >15yrs Source: Company information, International Consulting Firm based on World Steel Association’s Steel Statistical Yearbooks, WB MS, industry research, expert Interviews. (1) Excluding internal sales; sales split is calculated on revenues including internal revenues. (2) Excluding China. 2 (3) Including stainless steel. (4) Including recycling of Spent Pot Linings (SPL) which is a hazardous waste generated in primary aluminium production.

Main milestones Befesa has grown successfully through organic initiatives and acquisitions Founded Frankfurt Stock Successful greenfield Acquisitions & turnarounds in Germany Exchange & SDAX ( state-of-the-art technology) 2006 2009 2013 2014 2017 / 2018 1987 Metallgesellschaft , Befesa acquires Befesa becomes Triton (2) Inauguration of the ▪ Successful IPO on Frankfurt 2 nd aluminium German industrial a 100% stake in the European acquires Stock Exchange ; conglomerate, creates B.U.S., leader in salt Befesa production plant ▪ Entry to SDAX on 24 Sep 2018 Berzelius Umwelt Service becoming the slags recycling in Bernburg (B.U.S.) European after acquiring 3 1993 leader in steel plants in Germany dust recycling from Agor AG B.U.S. AB, together with two other companies, group their environmental assets in Spain creating Berzelius Felguera (Befesa) 1998 Befesa IPO at the Madrid and Bilbao Stock Exchanges 2012 2015 2019 2019 / 2020 2000 Commissioned ▪ EAF steel dust Developing first 2 EAF steel ▪ Entry in the Asian 2 nd kiln in Abengoa acquires a 51% recycling plant dust recycling plants in market by acquiring stake in Befesa from Korea , at Turkey China : successive stakes B.U.S. to develop its becoming expanded - Jiangsu province: in the Korean environmental services Befesa’s to 110kt capacity Completion of Hankook (1) business (stake increased 2010 largest construction expected by over time) Entry in the Turkish recycling plant ▪ First WOX washing ~YE’20 / begin ‘21 ▪ Inauguration of market through JV plant in Asia , located - Henan province: Waelz oxide ( WOX ) 2011 with Canadian close to Korea’s Completion of washing plant at Delisting from the Madrid Silvermet EAF steel dust construction expected by Gravelines and Bilbao Stock recycling ~mid-2021 Exchanges Entered two new markets through JV & Expansion Expansion in Expanding into China acquisition with subsequent turnaround in Korea Turkey & Korea Source: Company information (1) Befesa subsequently acquired 100% 3 (2) Free- float at 100% after Triton’s exit on 6 June 2019

Market leader with close proximity to clients Befesa currently runs 11 plants in the Steel Dust Recycling Services segment as well as 7 plants in the Aluminium Salt Slags Recycling Services segment and is present in 8 countries in Europe and Asia Steel Dust Employees (1) : 1,147 Recycling Services Europe #1 (c.45-50%) 11 plants (3) 8 countries Landskrona Whitchurch Capacity: 64kt Asia (4) Capacity: 80kt #1 (c.20%) Lünen Hannover Capacity: 170kt Capacity: 130kt Gravelines Aluminium Salt Slags Capacity: 110kt Bernburg Recycling Services Gravelines Capacity: 75kt Capacity: 100kt Freiberg Europe 7 plants (5) 3 countries #1 Recytech (2) Capacity: 194kt (c.45-50%) Capacity: 110kt Erandio Duisburg Capacity: 64kt Capacity: 87kt Sondika & Asúa-Erandio Amorebieta Capacity: 160kt Capacity: 16kt Changzhou (Jiangsu) Valladolid Capacity: 110kt Les Franqueses del Vallès Capacity: 150kt (under construction) Capacity: 66kt Xuchang (Henan) Steel Dust Recycling Services: Aluminium Salt Slags Recycling Services: Capacity: 110kt Iskenderun (6) (under development) Crude steel dust Salt slags & SPL Capacity: 110kt Stainless steel Secondary aluminium Oxide Gyeongju WOX washing Capacity: 220kt Pohang Capacity: 60kt (1) As of 31 December 2019. (2) 50/50 JV. (3) Excludes two plants in China currently under construction. 4 (4) Excludes China (lack of publicly available information). (5) Excludes idle plant in Töging (Germany). (6) JV with Canadian Silvermet.

Recycling services for steel producers A leading services business, Befesa helps steel producers manage their environmental liability by collecting and recycling their hazardous waste Clients: Clients: Steel Dust Recycling Services Consumers of zinc Steel industry concentrates (smelters) Collection of Sale of Input: steel dust and WOX (1) Input: Steel dust Clients / suppliers: regulatory services zinc concentrate / WOX Electric Arc Furnace (EAF) (hazardous waste) global steel producers Upfront service fee (mini-mills / scrap recyclers) Payment for € zinc content Zinc content in dust € Waelz Kiln Revenue Revenue contribution (3) contribution (3) Waelz Oxide Slags Service Fee ~10-20% Create environmental liability with legal Output: Output: obligation to recycle Waelz Oxide (WOX) (1) Zinc (2) hazardous waste WOX Sale ~80-90% Collection fees provide stable revenues supplemented by the sale of recovered metal content 5 (1) Zinc contained product. (2) Ultimately again used for steel production (e.g. galvanization of steel). (3) Illustrative, split depends on the zinc price.

Recycling services for aluminium industry Similar service model as steel dust, focused on collecting and treating hazardous waste from secondary aluminium producers Clients: Clients: Salt Slags Recycling Services Aluminium & Aluminium industry other industries Collection of salt slags & SPL and ~40% (2) Input: Input: Clients / suppliers: regulatory services Own usage of Aluminium Salt slags secondary alu concentrate (3) (hazardous waste) (concentrate), (recyclers) & primary aluminium producers (1) ~20% (2) melting salt Upfront service fee Payment for € € melting salt (3) Alu content <1% (2) Alu oxide (4) Revenue Revenue contribution (5) contribution (5) Service Fee ~40% Create environmental Output: Output: liability with legal Aluminium concentrate, Aluminium / obligation to recycle melting salt, aluminium alloys hazardous waste aluminium oxide Outputs ~60% Service fee is significantly higher than in the steel dust service business but value of residues lower (1) Befesa is a secondary aluminium producer as well and, therefore, is both a supplier (salt slags) and a consumer (aluminium concentrate) for Befesa’s recycling business. 6 (2) % of total salt slags segment revenues. (3) Used in secondary aluminium plants. (4) Low value by-product. (5) Illustrative.

Highly resilient business Revenues (1) EBITDA and % margin (2) (€m) (€m) 22% 26% 24% 25% 720 667 176 172 648 160 594 12 9 300 133 12 25 27 296 245 21 9 268 24 83 82 83 79 137 135 125 99 381 360 332 281 2016 2017 2018 2019 2016 2017 2018 2019 EBIT and % margin (2) Operating cash flow (3) (€m) (€m) 17% 22% 20% 19% 147 144 124 6 4 17 20 104 103 5 103 13 92 3 18 56 124 118 107 81 2016 2017 2018 2019 2016 2017 2018 2019 2 nd Aluminium Steel Dust Salt Slags Revenue growth underpinned by Solid operational cash flow generation due Low capital intensity exemplified by low, sustainable increase in volumes to low maintenance requirements stable D&A and high earnings margins accelerating growth providing funds for growth Continue profitable growth trend … solid 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 2 nd Aluminium sub-segment; These non- operating sales have limited margin contribution; Reported revenues amounted to €611.7m in fiscal year 2016 and €724.8 m in fiscal year 2017. (2) EBITDA and EBIT margins as a % of comparable revenue; EBITDA and EBIT in fiscal years 2016 and 2017 are adjusted from one-of f extraordinary items; Reported EBITDA amounted to €128.8m in fiscal year 2016 and €153.0m in fiscal year 2017; Reported EBIT amounted to €84.3m in fiscal year 2016 and €122.4m in fisc al year 2017. 7 (3) Total operating cash flow per audited consolidated statement of cash flows, after WC, taxes & interest, pre capex & pre dividend.