Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Q4 2021 Earnings Presentation
19 slides from Ence Energia Y Celulosa Sa's earnings presentation, Mar 1, 2022
Slide 1: 2021 Results
2021 Results 18 March 1st, 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: 2021 business highlights
2021 business highlights Strong Free Cash Flow generation and Net Debt reduction despite one-off hedges Operating cash flow generation before hedges up to €302m in 2021 €76m Free Cash Flow generation and Net Debt reduction in 2021, even after €106m negative settlements from one-off hedges, €21m
Slide 4: Operating cash flow generation before hedges up to €302m
Strong Free Cash Flow generation and Net Debt reduction in 2021 Operating cash flow generation before hedges up to €302m Short Cash Flow Statement 2021 (€m) 89 302 21 280 19 261 8 253 15 238 56 213 182 106 76 76 EBITDA Regulatory collar Operating cash Lower factoring Net interest Tax payments Mainte
Slide 5: No more pulp or electricity price hedges for 2022
No more pulp or electricity price hedges for 2022 They were closed exceptionally in 2020, during the worst months of the pandemic Dollar/Euro FX Pulp Prices Energy Prices 1Q21: USD77m 1Q22: USD86m 1Q21: 55,500 t 1Q21: 166,302 Avg. cap: $1.17/€ Avg. cap: $1.23/€ Avg. price: $772/t Avg. price:
Slide 6: Strong pulp prices in Europe in 2021
Strong pulp prices in Europe in 2021 Expected to continue in 2022 GROSS BHKP Prices in Europe AVERAGE GROSS BHKP Price in Europe (US$ / t) (US$ / t) 1.200 1.200 1.100 1.100 1.037 1.100 1.010 1.000 1.000 818 860 900 900 800 800 680 700 700 600 600 500 500 400 400 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 De
Slide 7: High operating margins in the Pulp business
High operating margins in the Pulp business Despite the temporary inflation in raw materials and logistic cost Cash Cost breakdown and operating margin (€/t) NET Pulp Price of 644 €/t NET Pulp Price of 547 €/t 207 €/t Operating Margin 155 €/t Operating Margin 437 €/t 392 €/t 31 29 44 Overhead 36 104
Slide 8: Pulp sales of 1 Mn tons
Pulp sales of 1 Mn tons Differentiated and higher value-added products accounted for 16% of pulp sales Geographical sales breakdown Breakdown by end product Differentiated products % of pulp sales % of pulp sales % of pulp sales 6% Other 16% Europe 94% 29% Specialty Tissue 49% papers vs. 9% in 2020
Slide 9: Pontevedra's worst case already reflected in 2021 accounts
Pontevedra’s worst case already reflected in 2021 accounts The Supreme Court admits our appeal against the rulings of the National Court On January 2016 the National Directorate of The 1958 biomill's original concession was extended for 60 years (starting November 8th 2013) by the National Directo
Slide 10: 2021 strong underlying operating results
2021 strong underlying operating results Before one-off hedges and Pontevedra related impairments and provisions Pulp Business EBITDA (€ m) Renewable Energy Business EBITDA (€ m) Group Net Profit (€ m) 10 x6 142 X6 ex-hedges + 54% 71 +54% ex-hedges Net profit ex- Pontevedra (26) Pulp Energy related
Slide 11: €76m Net Debt reduction to €102m
€76m Net Debt reduction to €102m €397m cash on balance Pulp business net debt as of 31 Dec. 2021 (€ m) Pulp business debt maturity schedule (€ m) €126m of convertible bonds 150 305 3 16 Lease contracts €105m of bilateral loans 8 13 325 €58m of public sector financing 54 €130m RCF – Fully undrawn 47
Slide 12: Leader in sustainability 2021 Highlights
Leader in sustainability Global ESG score: 2021 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 clima
Slide 13: New dividend policy
New dividend policy Based on free cash flow generation and subject to prudent leverage ratios per business 3 Annual Payments Amount based on cash available for distribution 1. First interim dividend agreed at Ensuring a leverage of: the end of the first semester Net Debt / EBITDA for the Pulp 2.5 x
Slide 14: Ence Capital Markets Day
Ence Capital Markets Day Thursday, March 17th 2022 at 3:00 pm (CET) 14
Slide 15: Appendix 1: Consolidated P&L
Appendix 1: Consolidated P&L P&L € m 4Q21 4Q20 ∆% 3Q21 ∆% 2021 2020 ∆% Revenue from Pulp business 195,8 125,9 55,5% 183,9 6,5% 667,6 504,5 32,3% Revenue from Renewable Energy business 36,1 55,4 (34,8%) 32,8 10,0% 154,9 206,0 (24,8%) Consolidation adjustments (0,8) (0,5) (0,5) (2,8) (2,7) Total reven
Slide 16: Appendix 2: Consolidated Cash Flow
Appendix 2: Consolidated Cash Flow Cash flow € m 4Q21 4Q20 ∆% 3Q21 ∆% 2021 2020 ∆% EBITDA 21,0 24,2 (12,9%) 26,9 (21,7%) 106,8 73,6 45,1% Change in working capital 12,6 15,5 (18,8%) (22,3) n.s. (33,6) 42,5 n.s. Maintenance capex (4,4) (3,0) 48,8% (3,1) 43,4% (15,1) (16,2) (7,1%) Net interest Payment
Slide 17: 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 18: 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 19: Delivering value Delivering commitments
Global ESG score: 91/100 Delivering value Delivering commitments
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