Befesa S.A.

Ladies and gentlemen, welcome to the BEFESA third quarter 2026 results conference call. I am Valentina De Coro, school operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one 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 third quarter 2026 results conference call of BEFESA. I am Rafael Perez, CFO of BEFESA, and this morning I am joined by our group's CEO, Asier Zarraonandia. Asier will start addressing the critical minerals grant in the U.S. related to the Inflation Reduction Act section 45 , followed by an executive summary of the period. After that, he will cover the business highlights of the steel dust, as well as aluminum, salt slag, and recycling business. I will then review the nine-month financials by business and will cover the evolution of commodity prices, our hedging program, and finally cash flow, net debt, leverage, and capital allocation. Asier will close this presentation providing an update on the outlook for the rest of 2026 and an update of our growth plans. Finally, we will open the lines for the Q&A session. Before getting started, let me remind you that this conference call is being webcast live. You can find the link to the webcast in our website. Now, let me turn the call over to our CEO. Asier, please.

Thank you, Rafa. Good morning to all. Moving to page five of the U.S. Critical Minerals Grant. Let me briefly walk you through the details of our IRA section 45X filing and the expected financial implications. After a detailed and rigorous assessment, we have concluded that our US SIN business is eligible for an advanced manufacturing production credit according to the section 45X under the Inflation Reduction Act based on that We have filed our claim to the Internal Revenue Service of the United States for the 2025 year. The credit is worth 10% of the operating cost of producing our special high grade sink at our sink refining plant in Mossboro, which has a purity of more than 99.9%. The grant does not require any further capital investment to be eligible going forward. The benefit will be recognized as a lower operating cost, according to IRFS, as well as our corporate auditors, therefore increasing our operating income and making it a BDA contributor. As a result of the grant, we expect a positive impact on our adjusted BDA of 25 to 30 million per year for the period of the program, which runs for nine years, stepping down from 2031 to 2033. Approximately 26 million euros will be already recorded in the Q4 2026 adjusted BDA. And we expect the first cash in the first half of 2027. Overall, the program strengthens both our earning profile and our cash generated in the U.S. business. Furthermore, it confirms the right strategic decision to expand our business into the U.S. market. Moving on to slide six, business highlights. Starting with the outlook, we have specified our guidance for the fiscal year 2026 to arrange for adjusted BDA between 260 and 270 million euros. We lifted the lower end of our guided range by 10 million euros, as we expect a stronger contribution in the Q4. This is the operational part of our guidance, as it was defined at the beginning of the year. On top of that, we now expect an additional contribution of approximately 26 million euros of adjusted EBITDA from our filing related to the Inflation Reduction Act, section 45 . Including this financial impact to the 45 , our new guidance for adjustment EBITDA is 286 to 296 million euros. Let me now continue with our operation business performance. The FESA continued delivering solid BDA growth in the third quarter and in the first nine months of the year. Total adjusted BDA in the first nine months was 192 million euros, up by 10% compared to the same period last year. Adjusted BDA margin of the group was 22% in Q3 2026 compared to 21% in Q3 2025. that the leveraging trend continued with financial leverage reduced to 2.16 in September 2026 compared to 2.6 in September 2025. The increase in net income and EPS of 12% year-on-year reflects our improved profitability. In the steel dash business, nine-month EBITDA was slightly up, driven mainly by higher sink spot prices. To summarize, despite mixed Business Environments in Both Business, Maintenance Related and Some Difficulties in Markets in the Steel Dust on One Side and Better Metal Margins in Aluminium on the Other Side, EBDA Increased Significantly Year Over Year. Moving on to page 7 with the Business Highlights for the Steel Dust Business where the Spectre Recovery in End Markets in Europe and Asia was Slower Than Anticipated. In Europe, the combination of a weaker construction activity with a continuous softness in the automotive sector, as well as higher electricity prices, were a drag for the steel production. Despite this challenging environment, our operations continue to perform strongly, with a low factor increasing to 90%, up by 2 percentage points year over year. In the U.S., volume growth is much stronger than in all the other regions. Steel production increased year-over-year and was supported by demand driven by investment in data centers, energy infrastructure, and industrial projects. While maintenance shutdowns temporarily affected plant performance during the third quarter, utilization improved mainly through versus last year, and our new electrical furnace supply contracts are ramping up as expected. In Asia, market conditions remain challenging. Volumes were lower year over year, particularly in Turkey and Korea, while China continued to operate at low utilization levels and around breakeven profitability. Looking ahead, while we remain cautious, only from the near-term outlook as industry sentiment seems to improve. Steel demands for infrastructure, defense, and energy-related projects appears to be a solid contributor for 2027 steel demand. Moving on to page eight, Business Highlights for the Aluminium Salt Slag Recycling and Secondary Aluminium Recycling Business. In secondary aluminum, the key message is that the recovery in metal margins in the second half of 26 is materializing as we anticipate early this year. Salt slag recycling volumes remain stable year over year, and looking at the Q4, we expect stable volumes overall. In secondary aluminum, metal margins improved significantly year over year from the low levels seen in the Q3 2025. The general business environment remains, however, challenging to the tight aluminum scrap-fist compatibility in Europe. Now, I will hand over to Rafa who will explain the financial in more detail.