Ence Energia Y Celulosa Sa · BME:ENC

Ence Energia Y Celulosa Sa — 9M 2021 Earnings Presentation

17 slides from Ence Energia Y Celulosa Sa's earnings presentation, Oct 27, 2021

  1. Slide 1: 9M21 Results

    9M21 Results 18 October 27th, 2021 Global ESG score: 91/100

  2. 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

  3. Slide 3: 9M21 business highlights

    9M21 business highlights Strong EBITDA recovery driven by pulp prices and cost control Strong pulp price recovery is boosting  Average gross BHKP price in Europe of US$1,140/t in 3Q21 and US$ 967/t in 9M21 the business operating margin in 2021  Temporary decoupling between Europe and China due to

  4. Slide 4: Strong pulp price recovery

    Strong pulp price recovery Boosting the Pulp business operating margin in 2021 GROSS BHKP Prices in Europe ENCE NET average sales price (US$ / t) (€/t) +60% +27% 1.200 614 600 516 1.000 500 384 407 800 400 600 300 400 200 200 100 0 Mar-12 Mar-18 Sep-11 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-1

  5. Slide 5: No major supply increases in 2021; pulp demand set to outgrow supply over 2022-25

    No mayor supply increases in 2021 Pulp demand set to outgrow supply over 2022-25 Key Expected Annual Changes in Global Market Pulp Demand and Supply (m t)1 Mn t 2022 2023 2022-23 2024 2022-24 2025 2022-25 EXPECTED ANNUAL MARKET PULP DEMAND GROWTH 1,9 1,9 3,8 1,9 5,7 1,9 7,6 EXPECTED ANNUAL MARKET PU

  6. Slide 6: Higher pulp production, cost savings and efficiency gains offset inflation

    Higher pulp production, cost savings and efficiency gains offset inflation in raw materials during 9M21 Pulp Production (t) Cash Cost breakdown (€/t) +19% +2% +2% = 758,688 373 380 376 377 742,423 35 30 32 28 320,450 323,466 29 33 28 34 109 96 111 103 264,780 421,973 435,221 221,802 86,150 112,151 2

  7. Slide 7: Pulp sales of 757 Kt in 9M21; higher value-added products 15% of sales

    Pulp sales of 757 Kt in 9M21 Higher value-added products accounted for 15% of pulp sales Geographical breakdown of sales Breakdown by end product Differentiated products % of pulp sales % of pulp sales % of pulp sales 7% Other 15% Europe 93% 29% Specialty Tissue 49% papers vs. 9% in 2020 vs. 92% in

  8. Slide 8: Higher renewable energy sales from the two new biomass plants in 9M21

    Higher renewable energy sales from the two new biomass plants in 9M21 Partially offset by the Huelva 50-MW shutdown Energy sales volumes (MWh) Average sale price (€/MWh) Remuneration for investment (€ m) Puertollano Puertollano CSP +6% -10% CSP -5% 1,002,242 18.1 Regulatory 16.9 944,439 Collar 98.3

  9. Slide 9: Renewables pipeline: MW with grid access and locations secured

    Renewables pipeline: 513 MW with grid access and locations secured We are considering rotating the PV pipeline at attractive valuations Auctions Scheme Spanish Royal PUERTOLLANO II 50 MW CÓRDOBA 50 MW Decree-Law 23/2020 Biomass Biomass Expected RTB in 1Q22 Expected RTB in 4Q22  Specific by technolo

  10. Slide 10: Strong EBITDA recovery driven by pulp prices

    Strong EBITDA recovery driven by pulp prices Net profit includes Pontevedra-related impairments and provisions of €196m Pulp Business EBITDA (€ m) Renewable Energy Business EBITDA (€ m) Group Net Profit (€ m) x 10 99.8 X6 ex-hedges -49% +21% ex-hedges Net profit ex. 40.1 3,0 FX hedge (41.8) hedges a

  11. Slide 11: €16m net debt reduction to €162m

    €16m net debt reduction to €162m Despite lower factoring usage and carry-over payments Normalized FCF1 post collar (€ Mn) Strategic Plan payments (€ Mn) Net Debt (€ Mn) x2 -21% -9% Regulatory 62 178 Collar 162 38 Lease contracts 49 €16m 19 9M20 9M21 9M20 9M21 Dec. 2020 Sep. 2021 Renewable Energy Pul

  12. Slide 12: €375m liquidity after a €115m debt prepayment in the Pulp business

    €375m liquidity after a €115m debt prepayment in the Pulp business €130m RCF and €80m bilateral loans in the Pulp business refinanced in 3Q21 Pulp business net debt as of 30 Sep. 2021 (€ m) Pulp business debt maturity schedule (€ m) €146m of convertible bonds 169 328 3 Lease contracts €104m of bilat

  13. Slide 13: 2021 hedges

    2021 hedges Pulp and Energy price hedges closed exceptionally in 2020 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: €43.9/MWh  Avg. floor: $1.09/€  Avg. floor: $1.18/€ 2Q21:

  14. Slide 14: Leader in sustainability: 3Q21 Highlights

    Leader in sustainability Global ESG score: 3Q21 Highlights 91/100 Production cost reduction Leadership and differentiation License to operate Risk minimisation Safe & ecologically Climate People & Sustainable efficient operations action Values agroforestry Protecting Health and Safety Committed to m

  15. Slide 15: 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

  16. Slide 16: 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

  17. Slide 17: Delivering value, delivering commitments

    Global ESG score: 91/100 Delivering value Delivering commitments

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