Altri, Sgps, S.a. · EURONEXT:ALTR
Altri, Sgps — Investor Presentation (2024)
33 slides from Altri, Sgps's investor presentation, 2024
Slide 1: Planting seeds for tomorrow
planting seeds for tomorrow 2024 → Investor Presentation → 1
Slide 2: A leading pure player in sustainable cellulosic fibers
A leading pure player in sustainable cellulosic fibers 69% Reference Shareholders 31% Free Float 100% Pulp Business 2024 → Investor Presentation → 2
Slide 3: Altri continues to deliver a sound financial performance in recent years
Altri continues to deliver a sound financial performance in recent years 2023 YoY 2022 YoY Avg. 2017 - 2023 Revenues1 € 788 M -26% € 1,066 M +34% ROCE2 16.7% EBITDA1 € 137 M -54% € 301 M +32% Cash divid. Yield3 6.0% EBITDA mg 17,4% -10,8p.p 28.3% -0.4 pp Cash divid. Yield 20244 5.2% 2 Return On Capi
Slide 4: The Global Pulp Market
01 The Global Pulp Market On the right track 2024 → Investor Presentation → 4
Slide 5: The global BHKP market enjoys secular growth drivers
The global BHKP* market enjoys secular growth drivers Market Drivers & Trends 1 Urbanization 2 Growing & Aging Population 3 Growth from Emerging Markets 4 Packaging – Paper vs Plastic 5 Textile Market – Wood Based Fibers *BHKP: Bleached Hardwood Kraft Pulp 2024 → Investor Presentation → 5
Slide 6: Global demand for BHKP is expected to increase almost 1.0M ton/year until 2027
Global demand for BHKP is expected to increase almost 1.0M ton/year until 2027 BHKP Global Demand M ton 43 The increase is driven by Tissue, Packaging 42,3 41 CAGR and Specialties 2.4%* ≈4.6 M/ton 39 37 37,7 35 until 2027 33 2022 *equivalent to c. 1.0 M ton/year after 2022 Source → Hawkins Wright ´s
Slide 7: The average pulp price (BHKP) since 2017 stands at US$ 997/ton
The average pulp price (BHKP) since 2017 stands at US$ 997/ton – sector specialists* point for mid-term prices near US$ 1,200/ton BHKP Prices - Europe 2017 2018 2019 2020 2021 2022 2023 1H24 Avg. (US$/ton) 819 1,037 858 680 1,011 1,286 1,044 1,237 Source → FOEX 997 US$ Average (gross price) 2017-1H2
Slide 8: Dissolving pulp price averages a premium of 40% vs BHKP
Dissolving pulp price (DWP) averages a premium of 40% vs BHKP in the last 5y– sector specialists* point for mid-term premium to BHKP of 35%-40% 2019 2020 2021 2022 2023 1H24 M tons 2023 YoY Premium DWP/BHKP (%) 40% 40% 50% 24% 45% 34% DWP Market ** 7,2 6.5% Source → FOEX and Zhengzhou Commodity Exch
Slide 9: Multiple factors remain in place for a cautious positive outlook
Multiple factors Remain in place for a cautious positive outlook for the P&P industry 1 After a positive start of the year, demand in Europe and North America continues with good positive indications. The Chinese market, however, has been recently adjusting to a more normalized demand level, after 2
Slide 10: Altri Group
02 Altri Group Operational excellence in the cellulosic fibers business 2024 → Investor Presentation → 10
Slide 11: Altri's pulp assets
Altri’s pulp assets From forests to fibers At the national level, Altri is located in 163 municipalities where it manages forest areas. Three fiber-production mills 1 175 000 tons/year Celbi & Biotek Caima 1 060 000 tons/year 115 000 tons/year Bleached (BEKP) Dissolving (DWP) Used primarily to produ
Slide 12: Developing and recovering the forest
Developing and recovering the forest Forest / Areas under Management Eucalyptus forests 80,3% Altri manages about and about Natural Woods 6,2% 93k 10k Cork Oak and Holm Oak groves and forests 4,6% hectares of certified forest hectares of conservation in Portugal area Divisional network 3,3% Other 2,
Slide 13: Market
Market Sales per Region 2023 Europe (excl. Portugal) 50% Middle East 25% Asia 14% Portugal 11% Acting in 3 continents and more than 20 countries Internationally, Altri’s products reach more than 20 countries in 3 different continents, being Europe the main market for Bleached Cellulosic Fibers (BEKP
Slide 14: End use segments
End use Segments Sales Breakdown (2023) Tissue 51% P&W 19% Dissolving 9% Decor 4% 51% Specialties 3% Packaging 2% TISSUE Other 12% 2024 → Investor Presentation → 14
Slide 15: Strong commitment across all the Altri Group to achieve the 2030 SDG
Strong commitment across all the Altri Group to achieve the 2030’s SDG COMMITMENT -51% GHG Emissions Zero Fossil Fuels Commitment to reduce the CO2e All units operate fossil fuel free by 2030. footprint, with a 51% reduction target by Caima, one Altri's three plants, has already 2030 of GHG emission
Slide 16: Affirm sustainability as a competitive factor
Affirm sustainability as a competitive factor Altri is at the forefront in terms of environmental transparency by including its carbon footprint and water usage (per ton. of produced pulp) in its invoices Note: Replication of the information made available to our clients through all our commercial d
Slide 17: Ratings ESG
Ratings ESG as of March 2024 Previous Last ESG Rating agency Altri Score Evolution Peers Score Evaluation Industry Group 14,5 14,7 1Q24 Paper & Forestry 8th out of 85 Scale from 0 to 100 Within industry BBB BBB 1Q24 average Scale from CCC to AAA Climate: A- Climate: A- Above industry Forest: A- Fore
Slide 18: Altri is working on several growth opportunities
Altri is working on several growth opportunities with the new project in Galicia at the forefront FUTU RE 1. Analyse selective opportunities in the pulp space. 2. Organic growth, debottlenecking and process optimisation . 3. Focus on specialties and high growth segments, such as textiles and bioprod
Slide 19: Project GAMA (Galicia)
03 Project GAMA (Galicia) Bridging forest to sustainable fibers 2024 → Investor Presentation → 19
Slide 20: Project Gama
Project Gama Altri's goal is to build the most sustainable cellulosic based fiber plant in the world, with the support from local partners and local authorities Altri Investment Major shareholder (more than 50%) € 1,000 m Partners Support Focus to onboard one of more partners that Our project is bac
Slide 21: Project Gama: value to the European textile industry
Project Gama Altri believes this project can add significant value to the European Textile Industry as well as to its stakeholders Eucalyptus from certified / sustainable origins Dissolving pulp factory (DWP) 250k ton/year Integrated Lyocell Factory 60k ton/year+ (120k ton/year) 2024 → Investor Pres
Slide 22: Project Gama: reference project on efficiency and sustainability KPIs
Project Gama Altri intends to build a reference project both on efficiency and sustainability KPIs 1. Become the most sustainable cellulosic based textile fibre industrial unit in the world (production, energy, consumption, etc). 5. Sell excess green energy to the grid. 2. Use sustainably sourced ce
Slide 23: Project Gama: studies toward FID
Project Gama Several studies undergoing to make a FID in the short term Potential location announced 200 ha in the area of Palas de Rei within the region of Lugo in Galicia (Spain) was announced in April 2022 as the potential location. Central Location Access to raw materials ‘Strategic interest pro
Slide 24: Project Gama: more diversified, less volatile revenue profile
Project Gama Altri’s revenue profile will become more diversified and less volatile Revenues 2023 Revenues beyond 2028* BHKP 60% BHKP 88% DWP 20% DWP 12% Lyocell 20% *Assuming GAMA is a 250K dissolving pulp site and a 60k lyocell line. 2024 → Investor Presentation → 24
Slide 25: Financial Highlights
03 Financial Highlights 2024 → Investor Presentation → 25
Slide 26: Financial Performance
Financial Performance improves significantly given better market conditions Revenues[1] +9% EBITDA[1] 53% EBITDA mg[1] +7.8 p.p. Period Period Period 1H24 463 1H24 124 1H24 26,8% 1H23 427 1H23 81 1H23 19,0% €M €M 400 440 480 60 90 120 150 10% 20% 30% [1] exclude the activity of GreenVolt at the Reve
Slide 27: Cash costs
Cash costs have decreased double-digit in 2023 and we still view a low single digit decrease for 2024 Electricity & Natural Gas The Group has a stable regulatory framework, under the regulated regime since February at Celbi and since May at Caima, allowing to sell electric energy at a regulated pric
Slide 28: Healthy Financial Position
Healthy Financial Position with funding provided mostly by domestic banks Net Debt 2022 2023 1H24 Pulp Business € 326 M € 357 M € 325 M 3.0 34% Years of Average Maturity Fixed rate Financial Debt Covenant-free 2024 → Investor Presentation → 28
Slide 29: Altri is a sector reference in shareholder value creation and dividend distribution
→ Altri is a sector reference in shareholder value creation and dividend distribution Accum. dividends Dividend Yield* ROCE* 2017-2023 Year Year 2024 5,2% 1H24** 16,0% 1.065 M€ 2023 6,1% 17,5% GVolt 2023 2022 9,0% representing 2022** 5,1% 3,1% 37,2% GVolt 25,4% 2021 108% of the 2021*** 5,9% 1,3% 7,3
Slide 30: Altri's value proposition
Altri’s value proposition Performance and sustainability excellence 1 Supportive long-term industry fundamentals. 2 Most efficient hardwood pulp producer in the EU. 3 Strong operational performance. Positioning for the next stage of growth - Dissolving Pulp (includes 4 Project Gama) and Bioproducts
Slide 31: Annex
03 Annex 2024 → Investor Presentation → 31
Slide 32: Sustainability Commitment
Sustainability COMMITMENT 2024 → Investor Presentation → 32
Slide 33: Building a more renewable world
building a more renewable world 2024 → Investor Presentation → 33