Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Q1 2015 Earnings Presentation
24 slides from Ence Energia Y Celulosa Sa's earnings presentation, Apr 30, 2015
Slide 1: Ence Energía y Celulosa 1Q15 Results
Ence Energía y Celulosa 1Q15 Results April 30th, 2015
Slide 2: Implementing EBITDA ramp up, focusing on cash cost reduction and delivering targets
Implementing EBITDA ramp up, focusing on cash cost reduction and delivering our planned targets within the current positive environment 1Q15 Recurrent annualized EBITDA over €150 M 1Q14 Recurrent annualized EBITDA over €50 M and heading north… Pulp price at €561/t resulting from a Pulp price at €663
Slide 3: Cash cost continues heading south: €336/t year end
Cash cost continues heading south: €336/t year end Cash Cost Evolution (€/t) 14.9 10.4 415 3.0 391 12.2 376 8.3 366 363 363 6.5 351 5.6 342 4.3 336 336 330 4.4 326 321 321 1Q14 4Q14 Huelva Improving fix Cost Cutting 1Q15 Efficiencies Ongoing Cost Cutting 2015 year end Impact from Navia Pending Targe
Slide 4: Results continue to improve as expected…
Results continue to improve as expected… Adjusted EBITDA (€M) 20.2 28.3 ENCE´s results show a positive 12.5 12.1 15.7 12.5 20.2 28.3 39.1 evolution during 2015 12.5 12.5 20.2 1Q14 4Q14 1Q15 Competitiveness Program continues its implementation clearly improving our €M(1) 1Q14 4Q14 1Q15 EBITDA Net pro
Slide 5: … continue to benefit from the exchange rate appreciation and high pulp prices
… continue to benefit from the exchange rate appreciation and high pulp prices Pulp price evolution In 2014, BEKP demand rose +9% $/t €/t $/€ 900 1.6 BEKP prices ($/t) improved up to $759/t at the 814 800 789 794 770 1.367681.37751 1.37 1.33 749 775 end of March recovering after bottoming down 1.32
Slide 6: Index
Index 1 1Q15 Results 1.1 Pulp Business 1.2 Energy business 2 Cost Cutting Program on track 3 Solid Cash Flow generation and liquidity position 4 Solid market pulp fundamentals Fuente: Ence 6
Slide 7: 1Q15 Results
1Q15 Results 4 41 111 156 117 5 39 34 16 18 8 59 10 Pulp Energy Forestry Total Sales Cost EBITDA (adj) Provisions EBITDA Amortizations EBIT Interest and Net result related to the taxes long term bonus plan linked to the share price • 1Q15 Recurrent EBITDA reached €39 M compared to €12 M in 1Q14 and
Slide 8: Index
Index 1 1Q15 Results 1.1 Pulp Business 1.2 Energy business 2 Cost Cutting Program on track 3 Solid Cash Flow generation and liquidity position 4 Solid market pulp fundamentals Fuente: Ence 8
Slide 9: Northern Pulp Mills increasing sales due to higher pulp prices…
Northern Pulp Mills increasing sales due to higher pulp prices… Pulp & Electricity sales at pulp mills ( €M) -18% Reduction in quarterly sales are fully explained by the Huelva shutdown Focusing on our current Northern mills 156 sales increased from €109 M in 1Q14 up to 128 47 €128 M in 1Q15 Pulp pr
Slide 10: …reducing average cash cost levels in our mills
…reducing average cash cost levels in our mills 415 21 377 30 363 28 38 23 30 29 37 37 108 82 74 218 200 200 1Q14 4Q14 1Q15 Wood Processing cost Personnel Commercial Corporate Costs Note: figures in €/t Cash cost reductions are due mainly to reductions in corporate and processing costs, and to the H
Slide 11: Index
Index 1 1Q15 Results 1.1 Pulp Business 1.2 Energy business 2 Cost Cutting Program on track 3 Solid Cash Flow generation and liquidity position 4 Solid market pulp fundamentals Fuente: Ence 11
Slide 12: Energy business also significantly increasing sales after additions of new biomass power plants…
Energy business also significantly increasing sales after additions of new biomass power plants… Energy sales (€M) Independent biomass plants 24 generation increased by 132% thanks to the Merida 20MW and 6 Huelva 41MW contribution 5 Sales increase of 176% or €15 M 9 also pushed by higher electricity
Slide 13: …contributing €8 M to the EBITDA, and expected to improve after Huelva shutdown
…contributing €8 M to the EBITDA, and expected to improve after the Huelva 41MW maintenance shutdown Huelva 50 MW contributed €5.4 M to ENCE´s EBITDA in 1Q15, €0.4 M above our Huelva 50MW forecast. We expect to continue its strong performance. Merida 20MW plant contributed €1.4 M to the corporate EB
Slide 14: Index
Index 1 1Q15 Results 1.1 Pulp Business 1.2 Energy business 2 Cost Cutting Program on track 3 Solid Cash Flow generation and liquidity position 4 Solid market pulp fundamentals Fuente: Ence 14
Slide 15: Pending implementation of our Competitiveness Recovery Plan
Pending implementation of our Competitiveness Recovery Plan EBITDA Impact 2015 – 2016 increase from Update €/t (1) Capex 2Q15 onwards - €4 M to be shown in 2015 from €4.3/t in 2015 Non-Investment €6.0 M in 2015 measures implemented in 2014 Cost Cutting Program €4.1 M in 2016 - €6 M under implementat
Slide 16: Index
Index 1 1Q15 Results 1.1 Pulp Business 1.2 Energy business 2 Cost Cutting Program on track 3 Solid Cash Flow generation and liquidity position 4 Solid market pulp fundamentals Fuente: Ence 16
Slide 17: Solid Cash flow generation recouping proceeds used for the turn around
Solid Cash flow generation recouping proceeds used for the turn around of the Company… €20.2 M Change in Working Capital Cash flow evolution ( €M) 5.2 3.7 4.9 11.6 34 14.4 10.9 26 9.7 2.4 17 16 14 8.8 EBITDA 1Q15 Trade and Inventories Current Maintenance Taxes Provisions Other Unleveraged Interest P
Slide 18: …positively enhancing the liquidity position and reducing its net debt…
…positively enhancing the liquidity position and reducing its net debt… Liquidity position (€M) Net corporate financial debt (€M) 90 9 187 178 159 88 127 135 118 Cash Financial Undrawn RCF Liquidity 1Q14 4Q14 1Q15 investments Ence maintains a strong liquidity reducing its net corporate debt position
Slide 19: … which would be partially compensated through an asset disposal program
… which would be partially compensated through an asset disposal program 79 19 60 Assets available for sale Pending payments Cash flow at book value related to Huelva generation related to shutdown Huelva assets Firm offers received for 662 hectares out of the total 3,000 hectares of former energy c
Slide 20: Index
Index 1 1Q15 Results 1.1 Pulp Business 1.2 Energy business 2 Cost Cutting Program on track 3 Solid Cash Flow generation and liquidity position 4 Solid market pulp fundamentals Fuente: Ence 20
Slide 21: Pulp prices continue their recovery, rising to above 800$/t levels
Pulp prices continue their recovery, rising to above 800$/t levels, due to strong demand and low inventories Inventories and Global Demand (000’t) 6,000 6,000 The new supply announced by Maranhao (1.5 Mt), Montes 5,000 5,000 del Plata (1.3 Mt) and Oji (0.4 Mt) will be offset as demand is expected to
Slide 22: Summary … Competitiveness Recovery Plan is on track
Summary … 1 Competitiveness Recovery Plan is on track 83% of the Competitiveness Recovery Plan has been achieved The 2 year payback investments have been implemented. Their benefits are already visible Both the Navia 4 Year Payback Investment program, and its increase in capacity, are on track, and
Slide 23: 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 24: Fuente: Ence
ence ENERGIA & CELULOSA 24
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