DGAP-News

Befesa S.A.: Preliminary 2020 results: Befesa delivers strongest quarter of the year - returning to 2019 levels

DGAP-News: Befesa S.A. / Key word(s): Annual Results/Quarter Results Befesa S.A.: Preliminary 2020 results: Befesa delivers strongest quarter of the year - returning to 2019 levels 23.02.2021 / 07:30 The issuer is solely responsible for the content of this announcement. /

PRESS AND INVESTOR ANNOUNCEMENT

Preliminary full year 2020 results

Befesa delivers strongest quarter of the year - returning to 2019 levels

- Q4 strongest quarter in 2020 with adjusted EBITDA of €42.4m, recovered back to 2019 level

- FY 2020 adjusted EBITDA at €127.0m, 20% decrease yoy (FY 2019: €159.6m)

- Operating cash flow at €92.5m, down 10% yoy; Closing with solid €154.6m of cash, up 23% yoy

- Capacity utilization and volumes resilient in 2020

- China expansion on track: Completing first plant construction in Q1; second plant after the summer

Luxembourg, 23 February 2021 - Befesa S.A. ("Befesa"), the leading provider of hazardous waste recycling services enabling the circular economy within the steel and aluminium industries, has delivered its strongest quarter in 2020, with Q4 EBITDA of €42.4m, at the same level as Q4 2019. Befesa continued its quarter-on-quarter recovery following the COVID-19 induced low in Q2 (Q1 €33.6m, Q2 €21.7m, Q3 €29.3m, Q4 €42.4m). This brings FY 2020 adjusted EBITDA up to €127.0m, within the upper third of FY 2020 EBITDA guidance range of €100m to €135m. Compared to FY 2019, earnings decreased by 20%, or €33m, primarily driven by lower blended zinc prices (down €144/t yoy to €2,136/t) as well as unfavourable higher treatment charges (TCs) at $300/t (vs. $245/t in 2019).

Net profit in 2020 decreased from €82.7m in 2019 to €47.6m, corresponding to earnings per share (EPS) of €1.40. In 2020, Befesa distributed a total dividend of €25m (€0.73 per share), equal to 30% of €82.7m net profit in 2019.

Operating cash flow decreased 10% to €92.5m. Befesa's rigorous cash management resulted in total cash flow of €29.1m, improving cash on hand by 23% to €154.6m (€125.5m at year-end 2019). Together with the entirely undrawn Revolving Credit Facility (RCF) of €75.0m, Befesa has a strong financial position of €230m liquidity. Net debt improved to €393.6m compared to €416.9m at the end of 2019 (leverage x3.10 vs. x2.61 at 2019 year-end).