Befesa SA announces organizational changes to seize opportunities for sustainable double-digit global growth over the next 5 years







PRESS AND INVESTOR ANNOUNCEMENT

Befesa announces organizational changes to seize opportunities for sustainable double-digit global growth over the next 5 years

  • Current CEO Javier Molina will become executive chairman, Asier Zarraonandia, currently vice president of the steel dust recycling business, will take over as CEO. Current Chairman of the Board Romeo Kreinberg has been appointed Independent Lead Director and remains Chairman of the Nomination and Remuneration Committee
  • Befesa is working on a Sustainable Global Growth Plan (SGGP), which, following the acquisition of AZR in August 2021, is the largest investment program in the company’s history
  • SGGP target around double-digit growth rates for the next five years and investments of around €500 million
  • Capital Markets Day scheduled for this fall to explain the definitive Growth Plan to shareholders and analysts of the Company

Luxembourg, July 12, 2022 – The Board of Directors of Befesa SA (“Befesa”), the leading provider of hazardous waste recycling services enabling the circular economy in the steel and aluminum industries, today appointed Javier Molina, currently Chief Executive Officer, as Executive Chairman of Befesa. Asier Zarraonandia, currently vice president of the steel dust recycling business, will take over as general manager of Befesa. Romeo Kreinberg, currently Chairman of the Board, has been appointed Lead Independent Director and remains Chairman of the Appointments and Compensation Committee. The changes will take effect immediately.

Organizational changes

As Chairman of the Board of Befesa and Executive Chairman, Javier Molina will be the Group’s top executive and Befesa’s main representative to regulators, authorities and shareholders. He will lead the implementation of Befesa’s corporate strategy, covering growth projects and the Sustainable Global Growth Plan (SGGP) as well as the sustainability strategy, including CO2 reduction plans and ESG. As Chief Executive Officer of Befesa, Asier Zarraonandia, who successfully developed and managed the steel dust recycling business, which accounts for approximately 80% of Befesa’s EBITDA, will report to the Executive Chairman. He will be responsible for the day-to-day management of Befesa’s business units and all operations, including production, supply chain and trading. He will also be responsible for the execution of the company’s various growth projects. Wolf Lehmann, currently Chief Financial Officer of Befesa, will retain his role and responsibilities, also reporting to the Executive Chairman.

The renewed board of directors will lead Befesa for the next four years, including the two new board members Natalia Latorre and José Dominguez Abascal. Both bring extensive experience in energy transition, ESG and technology development, three areas that will become increasingly important for Befesa in the years to come. The new board continues to consist of six independent directors and three executive directors.

The board has also set up a sustainability committee, which will reinforce Befesa’s commitment to sustainability as a key player in the circular economy and review progress against Befesa’s sustainability plans on a quarterly basis.

Five-year Sustainable Global Growth Plan (SGGP)

The global steel industry is undergoing a major transformation to decarbonize its operations and meet carbon reduction targets for 2030 and 2050. Secondary, electric arc furnace (EAF) steel production consumes approximately seven times less CO2 per ton compared to the primary production of the Basic Oxygen Furnace (BOF). This is driving large-scale investments in EAF steel production globally, expanding Befesa’s customer base and volume of environmental services. Likewise, the aluminum industry’s trends towards decarbonization and the rapid increase in production of electric vehicles are fueling the growing demand for recycling secondary aluminum and salt slag in Europe, where Befesa plays a leading role. As a clear contributor to the decarbonisation of the steel and aluminum industries, Befesa’s environmental services to the low carbon EAF steelmaking process and secondary aluminum producers will enable the transition to a low-carbon economy by expanding Befesa’s recycling capacity.

In this context, Befesa announced that it was finalizing its new five-year plan for sustainable global growth. Under this plan, Befesa aims to invest around 500 million euros in growth projects to seize the opportunities that decarbonisation and the growing market for electric vehicles generate in the steel and aluminum industries. This will allow the company to aim for double-digit growth rates over the next five years.

Befesa plans to organize a Capital Markets Day this fall to share the final SGGP with its shareholders and analysts.

Javier Molina, Executive Chairman of Befesa, said: “I am very excited about this new chapter for Befesa. Asier has successfully run Befesa’s core business for 15 years and is my natural successor. Despite the current uncertainty in the global economy, we have a solid business plan based on solid fundamentals. We believe that decarbonization and the rise of the electric vehicle will continue to be drivers of growth in the medium to long term and we are in a privileged position to be able to seize these opportunities in the markets that we Our new sustainable global growth plan targets around 500 million euros in investments globally – split between new markets such as China and more mature markets such as Europe and North America. This will allow Befesa to continue its accelerated expansion, aiming for double-digit growth over the next five years.”

The Company will provide more details on the organizational changes, the new five-year SGGP and the Capital Markets Day during the next presentation of the H1/Q2 financial results scheduled for July 28, 2022.

Webcast

Befesa will host a webcast of its H1/Q2 2022 results at 9:00 a.m. CEST on July 28, 2022. Further details, a replay and other events are available on the Company’s website: www.befesa.com

Financial Calendar 2022

The financial calendar for 2022 is available in the Investor Relations / Investor’s Agenda section of the Befesa website. For more information, please visit www.befesa.com

About Befesa

Befesa is a major player in the circular economy, providing environmental and regulated services to the steel and aluminum industries with facilities located in Germany, Spain, Sweden, France, as well as Turkey, in South Korea, China and the United States. Through its two business units, the steel dust and aluminum salt slag recycling services, which are an essential element of the circular economy, Befesa manages and recycles more than 2 million tons of residues per year. , with a production of around 1.5 million tons of new materials, which Befesa is reintroducing to the market, reducing the consumption of natural resources. Further information is available on the Company’s website: www.befesa.com

Investor Relations

Raphael Perez

E-mail: [email protected]

Telephone: +49 2102 1001 0

Media Relations

Richard Rigby

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Telephone: +44 7970 767607

Disclaimer

Befesa S.A. published this content on July 12, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on July 12, 2022 12:13:01 PM UTC.

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2022 sales 1,046 million
1,055 million
1,055 million
2022 net income 120M
121 million
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Net debt 2022 421M
425 million
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PER 2022 ratio 14.5x
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Capitalization 1,742 million
1,757 million
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EV / Sales 2023 1.87x
# of employees 1,570
Floating 94.6%


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