Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Q1 2022 Earnings Presentation
18 slides from Ence Energia Y Celulosa Sa's earnings presentation, Apr 27, 2022
Slide 1: 1Q22 Results
1Q22 Results 18 27th April, 2022 Global ESG score: 91/100
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has been prepared by Ence Energía y Celulosa, S.A. (hereinafter, "Ence"). This presentation includes data relating to future forecasts. Any data included in this presentation which differ from other data based on historical information, inclu
Slide 3: 1Q22 business highlights
1Q22 business highlights Continued strong Free Cash Flow generation and Net Debt reduction €87m operating cash flow, €58m free cash flow generation and 54% net debt reduction, down to €47m €13m attributable net income in 1Q22. First interim dividend for the same amount, equivalent to 0.054 €/sha
Slide 4: Continued strong FCF generation and Net Debt reduction in 1Q22
Continued strong FCF generation and Net Debt reduction in 1Q22 Operating cash flow generation up to €87m Short Cash Flow Statement 1Q22 (€m) 9 16 40 87 87 80 5 75 6 0 69 11 58 58 47 EBITDA Regulatory collar Operating cash Working Capital Lower factoring Maintenance Net interest Tax payments Growth a
Slide 5: Pulp prices continued improving in 1Q22
Pulp prices continued improving in 1Q22 Main pulp producers have announced further price hikes up to 1,250 USD/t Avg. annual Pulp Prices Europe Avg. annual BHKP Price Europe Consensus US$/t as of April 2022, in US$/t Sources: - Annual average FOEX gross price in Europe Source: RISI, Hawkins Wright,
Slide 6: High operating margins in the Pulp business
High operating margins in the Pulp business Despite the transport strike in March and the inflation in raw materials and logistics Cash Cost and operating margin (€/t) NET Pulp Price of 651 €/t The change in the remuneration parameters applicable to renewables in 2022 implied a 30 €/t 137 €/t Oper
Slide 7: Pulp sales down to 200,000 tons in 1Q21 due to the transport strike
Pulp sales down to 200,000 tons in 1Q21 due to the transport strike Differentiated and higher value-added products accounted for 18% of sales Geographical sales breakdown Breakdown by end product Differentiated products % of pulp sales % of pulp sales % of pulp sales 3% Other 18% Europe 97% 31% Spec
Slide 8: No direct impact in 1Q22 from the war in Ukraine
No direct impact in 1Q22 from the war in Ukraine Ence faces this situation with high liquidity and a strong financial position Our pulp bio-mills & renewable energy plants are located in Spain Wood & biomass are locally sourced Chemicals locally sourced or imported from Western Europe Our pulp bio-m
Slide 9: We are defending the legality of Pontevedra concession
We are defending the legality of Pontevedra concession The Supreme Court admitted our appeals against the rulings of the National Court Update Significance Pontevedra pulp mill accounts for: On July 2021, the Spanish National Court has annulled the land concession on which our Pontevedra bio-mill is
Slide 10: Group EBITDA x 2.8 vs. 1Q21 up to €47m
Group EBITDA x 2.8 vs. 1Q21 up to €47m Restarting shareholder returns with a first interim dividend of €13m in May Pulp Business EBITDA (€ m) Renewable Business EBITDA (€ m) Attributable Net Income (€ m) 13 x 2.5 x 3.0 26 21 8 9 (10) 1 1 1Q21 1Q22 1Q21 1 1Q22 1Q21 1Q22 1Q21 figures includes the effe
Slide 11: €55m Net Debt reduction to €47m
€55m Net Debt reduction to €47m €430m cash in balance Pulp business net debt as of 31 Mar. 2022 (€ m) Pulp business debt maturity schedule (€ m) €115m of convertible bonds 150 282 Lease contracts 17 €95m of bilateral loans 4 8 297 €55m of public sector financing 7 54 €130m RCF – Fully undrawn 47 38
Slide 12: Change in the remuneration parameters applicable to renewables in 2022
Change in the remuneration parameters applicable to renewables in 2022 With a positive impact vs. the guidance given in the Capital Markets Day for 2022 Expected new remuneration parameters applicable for 2022 Estimated impact vs. CMD consolidated cash flow guidance for 2022 (€/MWh) (€m) Expected ne
Slide 13: Leader in sustainability
Leader in sustainability Global ESG score: 1Q 2022 Highlights 91/100 Production cost reduction Leadership and differentiation License to operate Risk minimisation Safe & efficient Climate People & Sustainable operations action Values agroforestry Protecting Health and Safety Committed to mitigate cl
Slide 14: Appendix 1: Consolidated P&L
Appendix 1: Consolidated P&L P&L € m 1Q22 1Q21 ∆% 4Q21 ∆% Revenue from Pulp business 158,5 123,8 28,0% 195,8 (19,1%) Revenue from Renewable Energy business 76,2 43,9 73,6% 36,1 111,1% Consolidation adjustments (0,6) (0,6) (0,8) Total revenue 234,1 167,0 40,1% 231,1 1,3% Pulp business EBITDA 20,8 8,2
Slide 15: Appendix 2: Consolidated Cash Flow
Appendix 2: Consolidated Cash Flow Cash flow € m 1Q22 1Q21 ∆% 4Q21 ∆% EBITDA 46,5 16,8 177,2% 21,0 120,9% Change in working capital (1,5) (31,1) (95,1%) 12,6 n.s. Maintenance capex (5,2) (3,8) 38,1% (4,4) 17,7% Net interest Payment (5,5) (3,0) 85,4% (6,2) (11,2%) Income tax received/(paid) 0,1 0,3 (
Slide 16: Alternative Performance Measures (APMs) Pg.1
Alternative Performance Measures (APMs) Pg.1 Ence presents its results in accordance with generally accepted accounting principles, specifically IFRS. In addition, its quarterly earnings report provides certain other complementary metrics that are not defined or specified in IFRS and are used by man
Slide 17: Alternative Performance Measures (APMs) Pg.2
Alternative Performance Measures (APMs) Pg.2 Normalised free cash flow provides a proxy for the cash generated by the company's operating activities before collection of proceeds from asset sales; this cash represents the amount available for investments other than maintenance capex, for shareholder
Slide 18: Delivering value, delivering commitments
Global ESG score: 91/100 Delivering value Delivering commitments
Ence Energía y Celulosa — Q1 2022 Earnings Presentation on 6ix