Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Q4 2024 Earnings Presentation
32 slides from Ence Energia Y Celulosa Sa's earnings presentation, Feb 28, 2025
Slide 1: 2024 Results
2024 Results 18 28 February 2025 Global ESG score: 93/100
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: Today's presenters
Today’s presenters Ignacio de Colmenares Alfredo Avello Chairman & CEO Chief Financial Officer Ence Energía y Celulosa Ence Energía y Celulosa 3
Slide 4: Results Summary
Results Summary FY2024 Operating FY2024 Financial Growth, Efficiency and 2025 Outlook Highlights Results Diversification Projects ▪ BHKP price bottomed out in 4Q24. ▪ 12% net sale price YoY increase, up to ▪ Building a large biofertilizer and 647 €/t and 6% YoY reduction in cash ▪ Pulp business EBIT
Slide 5: 2024 Highlights
1. 2024 Highlights 5
Slide 6: Pulp prices bottomed out in 4Q24
Pulp prices bottomed out in 4Q24 BHKP price increases of up to USD 1,220/t gross announced from March GROSS Pulp Prices in Europe Future Pulp Prices in Europe (USD/t) (USD/t) 1.700 1.600 1.500 1.400 1.300 1.200 1.100 1.000 900 800 700 600 500 400 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Apr-20 Jan-20 Oct-
Slide 7: Ence Advanced pulp accounted for 23% of our pulp sales in 2024
Ence Advanced pulp accounted for 23% of our pulp sales in 2024 Operating margin approximately 30 €/t higher than our standard pulp ✓ High strength pulp aiming to substitute softwood pulp % of total pulp sales in 2024 ✓ Minimizes the energy consumption during the refining process + ✓ First unbleached
Slide 8: Diversification projects in the Pulp business are on track
Diversification projects in the Pulp business are on track These will deliver higher operating margins Status: On track Status: On track Status: On track ROCE1 target: >15% ROCE1 target: >15% ENCE ADVANCED PULP FLUFF RENEWABLE PACKAGING SOLUTIONS To diversify Navia’s production into Fluff pulp To de
Slide 9: Efficiency and growth projects in the Pulp business
Efficiency and growth projects in the Pulp business These will deliver higher operating margins Status: Started Status: Engineering and permitting Status: Engineering and permitting ROCE1 target: >15% ROCE1 target: >12% ROCE1 target: >12% NAVIA DECARBONIZATION PONTEVEDRA AVANZA AS PONTES 13 €/t cash
Slide 10: Sale of Energy Saving Certificates for €30m
Sale of Energy Saving Certificates for €30m Expected to be cashed and registered as revenue in 1Q25 €30m in 1Q25 Energy efficiency projects undertaken An Energy Saving Certificate (CAE) These Energy Saving Certificate Ence sold Energy Saving imply annual energy savings is an electronic document whic
Slide 11: Ence Biogas has acquired a 50 GWh/yr biomethane plant in La Galera
Ence Biogas has acquired a 50 GWh/yr biomethane plant in La Galera 15 year biomethane sale agreement signed with a major energy merchant La Galera estimated biofertilizer production (K tons) 20 15 10 5 0 2025e 2027e La Galera estimated EBITDA generation La Galera estimated biomethane production (€m)
Slide 12: First step towards the creation of a biofertilizer and biomethane platform
First step towards the creation of a biofertilizer and biomethane platform Target: 1 TWh of biomethane production by 2030 and over €60m contribution to EBITDA BIOMETHANE BUSINESS PIPELINE EXPECTED DEPLOYMENT PROJECT PIPELINE (Operating Plants) Biofertilizer and biomethane production from the valoris
Slide 13: Second industrial heating contract awarded for 85 GWh/year
Second industrial heating contract awarded for 85 GWh/year, 15-year term Target: 2TWh thermal energy supply by 2030 and over €40m contribution to EBITDA RENEWABLE THERMAL ENERGY PIPELINE EXPECTED DEPLOYMENT PROJECT PIPELINE BUSINESS (Operating Plants) Development and supply of biomass, and the O&M o
Slide 14: 2024 Financial Results
2. 2024 Financial Results 14
Slide 15: Pulp business EBITDA x3 in 2024 up to €138m
Pulp business EBITDA x3 in 2024 up to €138m Driven by higher pulp prices and lower cash cost Avg. NET Sales price Cash Cost Pulp sales volume Pulp EBITDA (€/t) (€/t) (,000 t) (€m) +12% - 6% - 1% x3 138 71 647 525 578 493 978 968 46 2023 2024 2023 2024 2023 2024 2023 2024 69€/t YoY net pulp price 32
Slide 16: 50% YoY EBITDA improvement from the biomass energy business
50% YoY EBITDA improvement from the biomass energy business €26m Renewables EBITDA includes new business development costs Average revenue per MWh Net operating costs per MWh Energy volume sold Renewables EBITDA (€/MWh) (€/MWh) (GWh) (€m) - 11% --15% 16% + 23% - 38% 43 Other 179 26 businesses 160 1.
Slide 17: €165m consolidated EBITDA in 2024
€165m consolidated EBITDA in 2024 €32m net income Group Revenues (€m) Group EBITDA (€m) Attributable Net Income (€m) + 6% +85% 876 165 32 830 89 (25) 2023 2024 2023 2024 2023 2024 +€47m consolidated revenue growth YoY in 2024 +€76m consolidated EBITDA YoY growth in 2024 + €57m Attributable Net Incom
Slide 18: €101m FCF before working capital change and growth capex in 2024
€101m FCF before working capital change and growth capex in 2024 WC outflow driven by higher pulp inventories and higher Ro in Renewables Cash Flow Statement 2024 (€m) ▪ €37m WC outflow in the Pulp ▪ La Galera biomethane plant acquisition business driven by the higher pulp ▪ Biofertilizer and biomet
Slide 19: €321m Net Debt at year end 2024, following a €34m dividend
€321m Net Debt at year end 2024, following a €34m dividend to shareholders Low leverage position vs. our Group average cycle EBITDA of €175m1 Net Debt Change in 2024 (€m) Dividend policy 34 (9) Amount based on cash 16 321 280 available for distribution Ensuring a leverage below: Net Debt / average c
Slide 20: Successful Magnon corporate refinancing in July 2024
Successful Magnon corporate refinancing in July 2024 La Galera biomethane plant project financing closed in January 2025 Pulp business net debt as of 31 Dec. 2024 (€ m) Pulp business debt maturity schedule (€ m) €280m of bilateral loans €130m RCF – Fully available 441 1 Lease contracts €34m of publi
Slide 21: ENCE: industry leader in sustainability
ENCE: industry leader in sustainability Global ESG score: Highlights 2024 93/100 Safe and Eco- Bioproducts & Responsible Positive social efficient operations ecosystem services supply chain impact Potential for topline To become preferred To grant business For operational cost improvement supplier s
Slide 22: 2025 Outlook and Closing Remarks
3. 2025 Outlook and Closing Remarks 22
Slide 23: 2025 Outlook
2025 Outlook BHKP price bottomed out in Expected cash cost reduction Sale of Energy Saving 2 4Q24 1 Price increases of up to USD 1,220/t gross (approx. USD 645/t during 2025 as temporary factors are expected to end in 1Q25 3 Certificates for €30m, expected to be cashed and registered as revenue in 1
Slide 24: Closing Remarks
Closing Remarks ▪ We are building a large biofertilizer and biomethane platform in Spain which aims to produce over 1 TWh by 2030 and contribute over €60m to EBITDA. ▪ Our Thermal Energy business is developing well. It aims to produce 2TWh by 2030 and contribute over €40m to EBITDA. ▪ Our Ence Advan
Slide 25: Appendix
5. Appendix 25
Slide 26: Group Financial Review P&L
Group Financial Review P&L 2024 2023 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Total revenue 683,2 196,7 (3,7) 876,2 623,2 209,1 (2,7) 829,6 Foreign exchange hedging operations results (0,6) (2,8) - (3,4) (0,4) - - (0,4) Other income 21,8 5,3 (1
Slide 27: Group Financial Review Cash Flow Statement
Group Financial Review Cash Flow Statement 2024 2023 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Consolidated profit/(loss) for the period before tax 55,2 (24,5) 1,6 32,3 (33,9) (0,9) 1,6 (33,2) Depreciation and amortisation 67,6 34,5 (1,6) 100,5
Slide 28: Group Financial Review Balance Sheet
Group Financial Review Balance Sheet Dec-24 Dec-23 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Intangible assets 19,2 57,2 (11,6) 64,9 17,7 33,7 (12,1) 39,3 Property, plant and equipment 608,6 372,4 (6,4) 974,6 617,5 379,0 (7,5) 989,0 Biological a
Slide 29: 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 30: Alternative Performance Measures (APMs) Pg.2
Alternative Performance Measures (APMs) Pg.2 It provides a comparable measure of the business’s profitability and is measured as the difference between the average sales price per tonne, calculated by dividing revenue from the sale of pulp by the number of tonnes sold, and the cash cost. NET FINANCE
Slide 31: Alternative Performance Measures (APMs) Pg.3
Alternative Performance Measures (APMs) Pg.3 NORMALISED FREE CASH FLOW Normalised FCF is the sum of EBITDA, the change in working capital, maintenance capex, net interest payments and income tax payments. It provides a proxy for the cash generated by the Company's operating activities before collect
Slide 32: Delivering value, delivering commitments
Global ESG score: 93/100 Delivering value Delivering commitments
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