BEFESA

Befesa Announces 2004 Financial Results

The 2004 financial year has been characterized by the consolidation of the different activity areas and of the business units in which Befesa concentrates its efforts, once the restructuring undertaken in previous financial years had been done and brought to an end in 2004 with the setting up of three large Business Units in which all the Group companies have been integrated. Therefore, the 2004 financial year can be considered the starting-out point and the foundation for future financial years in Befesa, with expectations for the future being optimistic now that its organization has been firmly cemented and is undergoing a continuous enhancement process.

A summary of the evolution of the Group’s main highlights is given here-below (millions of euro):

Evolution of the Group’s main highlights

	December 2004	December 2003	Change (%)
Sales	359.1	356.4	0.8%
EBITDA	38	38.1	-0.3 %
EBITDA/Sales	10.6%	10.7%
Attributable EAT	10.45	8.37	24.9%

More specifically and in relation to the three Business Units, the evolution was as follows:

• Industrial Waste Management. The number of treated tons of waste increased 10.6% on the 2003 financial year figure and reached 1,250 thousand tons. Within the subgroups it is structured into, the performance of the zinc and industrial waste recycling activity is noteworthy. These are nuclei in continuous expansion in which large sums are, and will continue to be invested.
• Engineering and Services. During the 2004 financial year, the objectives set at its beginning have been met and the contracting portfolio for coming years has been strengthened, which will lead to the generation of business in these years. Important contracts have been obtained abroad (Algeria…), and al large number of tenders and offers were presented for calls and open competitions for all kinds of works of an environmental nature.
• Aluminum Waste Recycling. Following the in-depth restructuring done in 2003, to suit the Group’s structure to the market conditions, there was an increase in the number of tons treated during the year with the figure reaching 115 thousand tons of waste, a 17% increase on the previous year’s figures, and this has led to a significant improvement in the subgroup’s results for the year.

As regards investments, the 2004 financial year was one marked by Befesa’s investment effort to strengthen the areas in which the greatest potential lies, with its main effort being dedicated to company growth, although companies with businesses closely related to the Group’s strategic areas (environmental engineering, industrial waste management ...) were also acquired.

Another noteworthy fact of a positive nature was the evolution of the net debt which has gone from 27.4 million euro in 2003, to 19.8 million euro at the close of the 2004 financial year.