Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Q1 2025 Earnings Presentation
33 slides from Ence Energia Y Celulosa Sa's earnings presentation, Apr 30, 2025
Slide 1: 1Q25 Results
1Q25 Results 18 30 April 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 Growth, Efficiency and 2025 Outlook 1Q25 Operating Highlights 1Q25 Financial Results Diversification Projects ▪ European BHKP price has ▪ Our first 125 kt fluff pulp line will start- ▪ Ence Advanced pulp sales accounted up in 4Q25, with over 60 €/t higher rebounded by 21% from Decemb
Slide 5: 1Q25 Highlights
1. 1Q25 Highlights 5
Slide 6: European BHKP price has rebounded by 21% from December lows
European BHKP price has rebounded by 21% from December lows Up to 1,218 USD/t in April 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 Aug-25 Feb-26 Nov-25 May-25 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-2
Slide 7: Virtually all our sales are generated in Europe and the Mediterranean
Virtually all our sales are generated in Europe and the Mediterranean Providing greater resilience to rising trade tariffs in other countries Virtually all our pulp sales are generated in Europe and Mediterranean markets, where we have significant competitive advantages in logistics and customer ser
Slide 8: Mitigating the impact of a weaker dollar through our FX hedging policy
Mitigating the impact of a weaker dollar through our ongoing FX hedging policy Annual average cap of 1.09 dollars for almost 50% of our expected pulp sales in 2025 EUR / USD Exchange Rate 1,160 1,140 1,120 1,100 1,080 1,060 1,040 1,020 1,000 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 EU
Slide 9: Ence Advanced pulp accounted for 35% of our pulp sales in 1Q25
Ence Advanced pulp accounted for 35% of our pulp sales in 1Q25 Aim: to reach 50% of our pulp sales by 2028, with approximately €30/t higher operating margin ✓ High strength pulp aiming to substitute softwood pulp % of total pulp sales in 1Q25 ✓ Minimizes the energy consumption during the refining pr
Slide 10: Our first fluff pulp line is on track for start-up in 4Q25
Our first 125 kt fluff pulp line is on track for start-up in 4Q25 Over 60 €/t higher operating margin expected Fluff, Softwood and Hardwood gross pulp prices Expected % of total pulp sales in 2028 In Europe (USD/t) 2500 2000 1500 1000 50% 500 0 12% Jul-23 Jul-20 Jul-21 Jul-22 Jul-24 Jan-20 Apr-20 Ja
Slide 11: Sale of Energy Saving Certificates for €30m
Sale of Energy Saving Certificates for €30m Cashed and registered as other operating 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 whi
Slide 12: La Galera plant improved its biomethane production by 67% in 1Q25
La Galera plant improved its biomethane production by 67% in 1Q25 Ongoing upgrading of the plant to produce 50 GWh and 20 kt of organic fertilizer from 2027 La Galera estimated biofertilizer production (K tons) 20 15 10 5 0 2025e 2027e La Galera biomethane production La Galera estimated biomethane p
Slide 13: First step in the creation of a biofertilizer and biomethane platform in Spain
First step in the creation of a biofertilizer and biomethane platform in Spain 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 val
Slide 14: Magnon starts the construction of two biomass boilers for Mahou San Miguel
Magnon starts the construction of two biomass boilers for Mahou San Miguel For the supply of 85 GWh of biomass thermal energy per year with a 15-year term MAHOU-SAN MIGUEL THERMAL ENERGY PROJECT For the supply of 85 GWh of biomass thermal energy per year with a 15-year term Installed capacity: 20 MW
Slide 15: Second step in the creation of a renewable industrial heating platform in Spain
Second step in the creation of a renewable industrial heating platform in Spain 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 th
Slide 16: 1Q25 Financial Results
2. 1Q25 Financial Results 16
Slide 17: Pulp business EBITDA in 1Q25 in line y/y at €28m
Pulp business EBITDA in 1Q25 in line y/y at €28m 11€/t cash cost reduction vs. 4Q24 Avg. NET Sales price Cash Cost Pulp sales volume Pulp EBITDA (€/t) (€/t) (,000 t) (€m) -7% + 5% - 11% -1% 71 601 487 510 243 28 558 29 216 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 43€/t net pulp price decrease vs. 23
Slide 18: Biomass energy EBITDA in line y/y at €7m
Biomass energy EBITDA in line y/y at €7m €6m Renewables EBITDA includes new business development costs Biomass energy revenue per MWh Biomass energy costs per MWh Biomass energy volume sold Renewables EBITDA (€/MWh) (€/MWh) (GWh) (€m) -1% +- 16% 1% + 19% -10% 277 Other 179 177 7 businesses 232 150 1
Slide 19: €34m consolidated EBITDA in 1Q25
€34m consolidated EBITDA in 1Q25 €2m net income Group Revenues (€m) Group EBITDA (€m) Attributable Net Income (€m) -8% - 2% - 29% 204 35 34 187 3 2 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 €17m lower consolidated revenues vs. 1Q24 €1m lower consolidated EBITDA vs. 1Q24 €1m lower attributable Net Income vs 1Q24
Slide 20: €20m FCF before working capital change and growth capex in 1Q25
€20m FCF before working capital change and growth capex in 1Q25 WC outflow driven by higher wood inventories Cash Flow Statement 1Q25 (€m) ▪ Fluff project execution ▪ Navia cash cost reduction and ▪ €6m WC outflow in the Pulp decarbonization project execution business driven by the increase in ▪ Sus
Slide 21: Low leverage, strong liquidity, long term maturities and no covenants in Pulp
Low leverage, strong liquidity, long term maturities and no covenants in Pulp €331m consolidated net debt at the end of 1Q25 Pulp business net debt as of 31 Mar. 2025 (€ m) Pulp business debt maturity schedule (€ m) €303m of bilateral loans €130m RCF – Fully available 463 1 Lease contracts €32m of p
Slide 22: ENCE: industry leader in sustainability
ENCE: industry leader in sustainability Global ESG score: Highlights 1Q25 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 23: 2025 Outlook and Closing Remarks
3. 2025 Outlook and Closing Remarks 23
Slide 24: 2025 Outlook
2025 Outlook European BHKP price has Virtually all our sales are Our ongoing FX hedging policy 1 rebounded by 21% from December lows, up to 1,218 USD/t in April (approximately 650 net USD/t) 2 generated in Europe and Mediterranean markets, providing greater resilience to 3 provides an average cap of
Slide 25: Closing Remarks
Closing Remarks ▪ The tight pulp supply/demand balance should continue to support pulp prices, despite the short-term volatility caused by the US - China tariff announcements ▪ Our first 125 Kt Fluff pulp line in Navia will be commissioned in 4Q25 with an expected operating margin approximately 60 €
Slide 26: Appendix
5. Appendix 26
Slide 27: Group Financial Review P&L
Group Financial Review P&L 1Q25 1Q24 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Total revenue 135,3 52,4 (0,8) 186,9 159,0 45,5 (0,8) 203,7 Foreign exchange hedging operations results (1,3) (1,5) - (2,8) 0,0 - - 0,0 Other income 38,3 1,8 (0,3) 39
Slide 28: Group Financial Review Cash Flow Statement
Group Financial Review Cash Flow Statement 1Q25 1Q24 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Consolidated profit/(loss) for the period before tax 8,2 (6,7) 0,4 1,8 5,7 (4,5) 0,4 1,6 Depreciation and amortisation 14,7 8,5 (0,4) 22,8 17,9 8,2 (0
Slide 29: Group Financial Review Balance Sheet
Group Financial Review Balance Sheet 1Q25 Dec-24 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Intangible assets 19,6 56,9 (11,4) 65,0 19,2 57,2 (11,6) 64,9 Property, plant and equipment 615,9 370,8 (6,2) 980,6 608,6 372,4 (6,4) 974,6 Biological ass
Slide 30: 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 31: Alternative Performance Measures (APMs) Pg.2
Alternative Performance Measures (APMs) Pg.2 NET FINANCE COST AND OTHER FINANCIAL ITEMS Net finance cost encompasses the various items of finance income and finance costs, while other financial items encompasses exchange differences, the change in the fair value of financial instruments and impairme
Slide 32: 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 33: Delivering value, delivering commitments
Global ESG score: 93/100 Delivering value Delivering commitments
Ence Energía y Celulosa — Q1 2025 Earnings Presentation on 6ix