Company Presentation

March 2018
 At a Glance
Befesa – European market leader in providing mission critical hazardous waste
recycling services to the steel and aluminium industry.

FY 2017 Sales: FY 2017 Adj. EBIT:

€725m(1) €144m
Salt Slags Secondary
Recycling Salt Slags Aluminium
Services Steel Dust Recycling 3%
11% Recycling Services
Services 14% Steel Dust
Secondary 43% Recycling
Aluminium Services
46% 83%

More than 90% of EBIT generated from two core >20% EBIT margin operations with low capital intensity

Steel Dust Recycling Services(2) Aluminium Salt Slags Recycling Services

Position in Europe (c.45–50% market share) Position in Europe in Salt Slags

#1 #1
and Asia(4) (c.45–50% market share)

36% Adj. EBIT margin (FY 2017)(2) 24% Adj. EBIT margin in Salt Slags (FY 2017)(3)

Relationships Relationships
>15yrs >15yrs

Source: Company information, International Consulting Firm based on i.a. World Steel Association’s Steel Statistical Yearbooks, WBMS, industry research, expert Interviews.
(1) Excluding internal sales; sales split is calculated on total sales including internal sales. (2) Including stainless steel. (3) Including recycling of Spent Pot Linings (SPL) which is a hazardous waste 2
generated in primary aluminium production. (4) Excluding China.
 Company History
Befesa has grown successfully through organic initiatives and acquisitions in
Europe as well as in emerging markets.
Successful Greenfield Project
Founded in Germany Acquisitions and Turnarounds Successful IPO
(State of the Art Technology)

1987 2006 2007 2009 2014 2017

Metallgesellschaft, German Befesa acquires a Acquisition of Alcasa, Befesa becomes the Inauguration of the 2nd Successful IPO on
industrial conglomerate, 100% stake in Spanish leader in the European leader in aluminium plant in Bernburg Frankfurt Stock
creates Berzelius Umwelt B.U.S, becoming the secondary aluminium salt slags recycling after Exchange
Service (B.U.S) European leader in market from Qualitas acquiring 3 plants in
steel dust recycling Equity Partners Germany from Agor
1993
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 2013 2015
2000 ▪ Entry in the Asian Triton acquires Commissioning of
Abengoa acquires a 51% market by acquiring Befesa the second kiln in
stake in Befesa from B.U.S to successive stakes in Korea, converting it
develop its environmental 2010
the Korean into the largest
services business (stake Entry in the Turkish
Hankook(1) treatment plant and
increased over time) market through JV
▪ Inauguration further acquisition of
with Canadian
of Waelz Oxide stakes
Silvermet
2011 (WOX) washing
Delisting from the Madrid plant at Gravelines
and Bilbao Stock Exchanges
Entered 2 New Markets Through a JV and Successful Expansion
Acquisition with a Subsequent Turnaround in South Korea
3
(1) Befesa subsequently acquired 100%.
 Market Leader with Close Proximity to Clients
Befesa has 11 plants in the steel dust recycling segment as well as 8 plants in
the aluminium salt slags recycling service segment and is present in 7 countries
in Europe and Asia.
Steel Dust
Employees(5): 1,107 Recycling Services

Europe
#1
(c.45-50%)
11 Plants 6 Countries

Landskrona
Whitchurch Capacity: 64kt Asia(2)
Capacity: 80kt #1
(c.20%)
Lünen Hannover
Capacity: 170kt Capacity: 130kt
Gravelines
Capacity: 110kt Aluminium Salt Slags
Bernburg
Gravelines Capacity: 75kt Recycling Services
Capacity: 100kt
Freiberg Europe
Recytech(1) Capacity: 194kt #1
(c.45-50%)
7 Plants(3) 3 Countries
Capacity: 110kt
Duisburg
Erandio Capacity: 87kt
Capacity: 64kt Asúa-Erandio
Sondika / Capacity: 160kt
Amorebieta

Valladolid
Capacity: 150kt Les Franqueses del Vallès
Capacity: 66kt

Steel Dust Recycling Services Aluminium Salt Slags Recycling Services

Iskenderun(4)
Crude Steel Dust Recycling Plants Salt Slags Recycling Plants
Capacity: 65kt
Stainless Steel Dust Recycling Plants Secondary Aluminium Production Plants
Oxide
Leaching Gyeongju
Capacity: 220kt

(1) 50/50 JV. (2) Excl. China (lack of publicly available information). (3) Excluding idle plant Töging (Germany). (4) Joint venture with Canadian Silvermet. 4
(5) Average number of employees as of December 31, 2017.
 Critical 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: consumers of zinc

Steel Dust Recycling Services
steel industry concentrates (smelters)
Collection of Sale of
steel dust and Input: WOX(1)
Clients / suppliers: steel dust Input:
regulatory services
Electric Arc Furnace (EAF) (hazardous waste) zinc concentrate / WOX
global steel producers Upfront service fee
(mini-mills / scrap recyclers)
€ Payment for
zinc content
Zinc content in dust
€

Waelz Kiln
Revenue Revenue
contribution(3) Waelz contribution(3)
Oxide Slags
Service Fee ~10-20%
Create environmental
liability with legal
obligation to recycle Output: Output:
hazardous waste Waelz Oxide (WOX)(1) zinc(2)
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. (3) Illustrative, split depends on the zinc price.
 Critical 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 & other
aluminium industry
Collection of industries
salt slags & SPL and
Clients / suppliers: Input: ~40%(2) Input:
regulatory services
secondary salt slags Own usage of aluminium
(recyclers) & primary alu concentrate(3)
(hazardous waste) (concentrate), salt
aluminium producers(1) ~20%(2)
Upfront service fee

€ Payment for
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 alu concentrate, aluminium /
obligation to recycle salt, alu oxide aluminium alloys
hazardous waste 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
with Strong Cash Flow Generation
Befesa’s strong and stable sales and earnings paired with its strong cash
conversion enable the company to fund its business expansion.
Sales Adj. EBITDA
(in €m) (in €m)
Steel Dust
725(1) Recycling 27% 33% 31% 35% 41%
631(1) 612(1) Services
535(1) 554(1) Margin 26% 31% 35% 31% 33%

254 332 Salt Slags

172
281 Recycling
253 262 Services 123 123 133
84 83
68 79 Margin 95 135
69 78 99
351 87
250 244 338 292 69
18 8 21 15 30 15 24 9 27 11
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Consistently and strongly growing revenues … … with profitability outpacing revenues over time

Adj. EBIT Free Cash Flow(2,5)

(in €m) (in €m)

Steel Dust Cash

21% 27% 24% 29% 36% 72% 82% 83% 77%
Recycling conversion(3)
Services
Margin 17% 22% 27% 23% 24%
Salt Slags
Recycling 144 133
101 110
Services
Margin 97 95 103 88
70 118 94
71 61 81 62 76
53 68
12 5 15 12 23 11 18 4 20 6 20 1 36 3 27 7 31 9
2013 2014 2015 2016 2017 2014 2015 2016 2017
High margin steel business accounts for vast majority of EBIT Strong and stable cash conversion
Note: Financials pro-forma for IES disposal. Adjusted EBITDA (unaudited) is calculated by adjusting EBITDA (calculated based on operating result, adding back charges
taken for amortization/depreciation, impairment and provisions) to account for the impact of the IES divestment and for one
(1) Total sales are excluding internal revenues. time effects (including holding and restructuring effects) and, in the case of 2013, for the impact of the first time consolidation Steel Dust Salt Slags
(2) Free Cash Flow is based on management accounts and is calculated as EBIT + with the Company’s results of Befesa’s first half year EBITDA. Recycling Recycling
Depreciation & Amortization (D&A) +/- WC change – maintenance capex – taxes Adjusted EBIT (unaudited) is calculated based on the reported operating result adjusted for the impact of the divestment of Services(4) Services
IES and, in the case of 2013, for the impact of the first time consolidation with the Company’s results of Befesa’s first half year
(3) FCF / (Adjusted EBIT + Adjusted D&A).
(4) Including crude and stainless steel.
operating profit, further adjusted by holding, restructuring and one-time effects.
2nd Alu Services
(5) FCF figures show Salt slags services together with 2nd Alu services.
Free Cash Flow (unaudited) is calculated from the operating result, adding back charges taken for amortization/depreciation, and Other 7
impairment and provisions, less maintenance capital expenditures and less taxes, summed with the change in working capital.
 Future Growth Opportunities
Befesa has successfully executed growth projects in the past and is well
positioned to leverage its leading market position for further growth initiatives.

Favourable market
and underlying
mega trends

Continue
Pursue prudent
operational
hedging to manage
excellence and
commodity price
utilization at
peak-to-troughs
current plants

Steel Dust Salt Slags

Recycling Recycling
Services Services

Capture upside Execute well

potential from defined and
accretive M&A accretive organic
opportunities growth projects

8
 Experienced Management Team
Senior management team delivering results through long standing industry
expertise, entrepreneurial spirit and focus on operational excellence as well as
governance and compliance processes

Javier Molina Wolf Lehmann Key Achievements / Track Record

CEO CFO; including responsi-
bilities for Operational
Excellence and IT Extensive experience in steel and
aluminium recycling business

Strong performance results through

CEO since 2000
Has run Befesa for >15 years
Became President of Abengoa’s
Environmental Services Division
in 1994
CFO since 2014 focus on operational excellence
20+ years in operational and
finance leadership roles
50/50 General Electric Building strong business
/ Private Equity foundation of ESG, compliance
and health & safety processes

Asier Zarraonandia Federico Barredo

Vice President Vice President Successful international
Steel Dust Aluminium Salt Slags expansion
Recycling Services Recycling Services
Track record of successful
acquisitions and turnarounds
(BUS, Agor, Alcasa, Hankook,
16 years with Befesa 25 years with Befesa Silvermet etc.)

Has run the Aluminium Salt Slags Experience in developing greenfield

Has run the Steel Dust Recycling
Recycling Services Business projects (South Korea, Gravelines,
Services Business for >10 years
for >15 years Bernburg)