Befesa S.A.

Ladies and gentlemen, thank you for standing by. Welcome to the preliminary full year 2025 results conference call. I am Jota, the course call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing start and 1 on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Rafael Perez, CFO. Please go ahead.

Good morning and welcome to the preliminary four-year 2025 results conference call of BFESA. I am Rafael Perez, CFO of BFESA, and this morning I'm joined by a group CEO, Azir Zaronandieh. Asir will start with an executive summary of the period. Then he will cover the business highlights for the steel dust as well as aluminum salt slag recycling businesses. I will then review the preliminary full year financials by business and will cover the evolution of commodity prices, our hedging program, and finally cash flow, net debt, and leverage and capital allocation. Asir will close this presentation providing an update on the outlook for 2026 and an update on our growth plan. Finally, we will open the lines for the Q&A session. As always, this conference call is being webcasted live, and you can find the link in our webcast. Now, let me turn this call over to our CEO, Asir, please.

Thank you, Rafa. Good morning, all. Moving to page five of the business highlights. We have delivered strong full results and year results. continuing the solid trends seen in the first nine months of the year. Our performance demonstrates once again the resilience of our business model and the benefits of our diversified operations. Adjusted EBITDA for the full year of 2025 reaches 243 million, up 14% year-on-year. The BDA margin improved significantly to 21% in the full year of 2025, compared with the 17 in 24, reflecting strong operational efficiency and disciplined cost management. Financial leverage was further reduced to 2.27 in December 2025, compared to 2.90 a year ago, well below the 2.5 target, marking the seventh consecutive quarter of the leverage. Net income and earnings per share also increased sharply, EPS rose 58% year-on-year to 2.01, reflecting a strong profitability and improved financial performance. In our steel dust business, we achieved resilient EAF dust volume across all markets, despite adverse market conditions. Performance was further supported by lower seam treatment charges and favorable seam prices. our salt slag operation delivered solid performance, while secondary aluminum has been impacted by persistent, challenging environment, driven mainly by the weak automotive market in Europe, as well as the usual summer period maintenance activities in the auto industry. The Palmerton expansion project was completed as expected, with the second kiln successfully hot-commissioned in July 25. We expect 20C to be another year of earnings growth, primarily driven by higher EAF steel dust volumes in the U.S., as well as sun recovery and secondary aluminum. Our financial leverage is expected to remain at around two times by year-end 2026, supported by solid-car generation and disciplined capital allocation. We continue to focus on the Vermont project. I will comment on the outlook in more detail later. Moving on to page six, business highlights for the steel dust business. In Europe, steel production in the full year of 2025 has mainly decreased, down 3% year-on-year, mainly due to weak manufacturing activity and higher imports from China. Despite this, our steel dust deliveries from electric car furnace steel customers continued in line with the 2024 average at very solid levels, demonstrating the resilience of the business model. Operationally, the European plants performed strongly, achieving a 94% low factor in the fourth quarter, showing strong performance and no maintenance stoppages. In the U.S., steel production increases by 3.1% year-on-year, driven by overall economic growth. Our U.S. plants operated at a 71% low factor in Q4, continuing a gradual improvement year-on-year. The two new kilns in Palmerton have been fully operational since July 2025. A new electric car furnace supply contracts are ramping up progressively through the Q4 following some initial startup delays. At the same time, cost reduction measures in the U.S. green refining plant continue to deliver the expected improvements in asset profitability. In Asia, volumes in target increases by 11% year-on-year, recovering strongly after a weak second quarter affected by maintenance shutdowns. In Korea, the low factor reaches 76% in 2025, up 6.6% year-on-year, driven by higher domestic deliveries and strong operational execution. In China, operations continue at low utilization level, with earnings around break-even reflecting ongoing market weakness. Moving on to the page 7, business highlights for the aluminum salt and slag recycling business. In our aluminum business, performance has remained mixed in 2025. Starting with the salt and slag recycling business, operations have continued to perform strongly, running in line with previous quarters. Utilization levels remained above 90% in 2025, demonstrating the robustness and efficiency of our assets. In our secondary aluminum segment, the market environment continues to be very challenging. As we have been commenting during the year, the European secondary aluminum industry remains under pressure with tight metal margins and limited production activity, largely as a consequence of the ongoing weakness in the automotive sector. However, the performance in the fourth quarter of 2025 reinforced the view that the Q3 was the lowest point of the cycle and that the recovery should be underway. Despite these headwinds, we continue to focus on operational discipline, cost efficiency, and customer diversification to preserve profitability and position of the business for recovery once market condition improves. Now, Rafael will explain the financials in more detail.