DGAP-News

Befesa S.A.: Befesa reports record level 9M EBITDA of €137m up 62% YoY

DGAP-News: Befesa S.A. / Key word(s): Quarter Results/Quarterly / Interim Statement Befesa S.A.: Befesa reports record level 9M EBITDA of €137m up 62% YoY 28.10.2021 / 07:30 The issuer is solely responsible for the content of this announcement. /

PRESS AND INVESTOR ANNOUNCEMENT

Third quarter 2021 results

Befesa reports record level 9M EBITDA of €137m up 62% YoY

• Q3 2021 delivers strong growth, with adjusted EBITDA up 46% YoY to €42.7m, also growing 15% compared to pre-pandemic Q3 2019 levels
• 9M 2021 adjusted EBITDA grew by 62% YoY to €136.8; up 17% or €20m over pre-pandemic 9M 2019
• Improved leverage of x2.3, down from x3.3 in Q3 2020; Continued strong liquidity of more than €275m including a new high level of €201m cash on hand, post-dividend and acquisition funding
• China on target: 1^st plant, Jiangsu province, opening event in mid-November; 2^nd plant, Henan, on track for construction completion by year end, with commissioning and ramp up in H1 2022
• Successfully closed acquisition of American Zinc Recycling ("AZR") and consolidating since 17 August; US operations delivering as expected
• Revised guidance upwards to reflect record earnings and acquisition of AZR, targeting 2021 FY adjusted EBITDA of around €195m

Luxembourg, 28 October 2021 - Befesa S.A. ("Befesa"), the global market leader for steel dust and aluminium salt slags recycling services, reported continued strong performance on record earnings levels, for both Q3 and 9M of 2021, delivering strong growth YoY, which is also well above the pre-COVID periods of 2019. Significant progress was made in China and the US, as 2021 continues to become an inflection point in the Company's accelerated global growth trajectory.

Adjusted EBITDA for Q3 stood at €42.7m, compared to €29.3m in the same quarter last year, an increase of 46%. EBITDA was also 15% above the €37.0m of Q3 2019, pre-pandemic. Year-to-date growth was even stronger, as Befesa achieved €136.8 in the first nine months, up €52m or 62% compared to 9M 2020 and 17% more than the pre-pandemic 9M 2019 figure of €117.1m. The YoY positive earnings development in 9M was mainly driven by strong base metal prices and good volume performance. Overall plant utilization was solid at pre-pandemic levels, with Steel Dust at above 80% and Aluminium Salt Slags & SPL at or above 90%.