Ercros, S.a. · BME:ECR
Ercros — Investor Presentation (January 2021)
26 slides from Ercros's investor presentation, Jan 28, 2021
Slide 1: Strategic Plan 3D: Diversification, Digitalisation, Decarbonization
1" STRATEGIC PLAN 5D DIVERSIFICATION DIGITALISATION DECARBONIZATION Barcelona, 28 January 2021 S- * Ercros SY
Slide 2: Ercros: a company focused on the long term
ERCROS: A COMPANY FOCUSED ON THE LONG THERM; A COMPANY WITH A STRATEGIC VISION. ▪ Long investment execution periods, characteristic of a chemical company. ▪ Significant increase in size (purchase of the Aragonesas and Derivados Forestales companies in 2005 and 2006, respectively). ▪ Changes required
Slide 3: A sustainability strategy
A SUSTAINABILITY STRATEGY ▪ The strategy that the 3D PLAN proposes is to transform Ercros into a sustainable company over time. 3
Slide 4: The three dimensions of Ercros sustainability
THE THREE DIMENSIONS OF ERCROS SUSTAINABILITY ▪ Sustainable due to the DIVERSIFICATION of its production structure, which will allow it to cushion the volatility of the economic cycle. ▪ Sustainable due to the DIGITAL transformation and automation of its processes, which will make it more competitiv
Slide 5: Three dimensions for three challenges
THREE DIMENSIONS FOR THREE CHALLENGES ▪ The three dimensions of the 3D PLAN respond to three fundamental challenges: ▪ DIVERSIFICATION: Decisive to move safely throughout the economic cycle. ▪ DIGITALISATION: Today the only lasting way to make a significant leap in terms of modernization, increased
Slide 6: The purposes of the three dimensions of the 3D Plan
THE PURPOSES OF THE THREE DIMENSIONS OF THE 3D PLAN ▪ DIVERSIFICATION: To control and, if possible, reduce the cyclical dependence of Ercros, linked to the evolution of the activity of the markets in which it sells its products. ▪ DIGITALISATION: To achieve a greater capacity to manage production, c
Slide 7: Economic-financial aspects (I)
ECONOMIC-FINANCIAL ASPECTS (I) ▪ The 3D PLAN will be executed at a pace that allows: ▪ Comply with the objectives of the EU agenda (European Climate Law and Climate Change and Energy Transition Law). ▪ Maintain a maximum annual capex by € 30 million (net of aid). ▪ The projects of the 3D PLAN will b
Slide 8: Economic-financial aspects (and II)
ECONOMIC-FINANCIAL ASPECTS (and II) ▪ It is planned to finance the 3D PLAN with internally generated resources. ▪ Public aid from the European Recovery Fund, and others that may be obtained, will allow the investment process to be accelerated and some of the actions initially planned for the 2026- 2
Slide 9: The aggregate figures of the 3D Plan (I)
THE AGGREGATE FIGURES OF THE 3D PLAN (I) ▪ For the period 2021-2025, the 3D PLAN implies an accumulated investment by € 69 million and it is expected that, already in said period, it will have an additional contribution to ebitda, accumulated by € 62.7 million. ▪ For the period 2026-2029, an accumul
Slide 10: The aggregate figures of the 3D Plan (II)
THE AGGREGATE FIGURES OF THE 3D PLAN (II) Progression of the 20 investment projects and their results (€ M) 2021-2025 2026-2029 2021-2029 (1) (2) (3)=(1)+(2) Total accumulated investment 69 23 92 Accumulated additional ebitda 63 131 194 10
Slide 11: The aggregate figures of the 3D Plan (III)
THE AGGREGATE FIGURES OF THE 3D PLAN (III) ACCUMULATED INVESTMENT AND EBITDA 3D PLAN (€ M) Accumulated ebitda 200,00 150,00 Accumulated investment 100,00 50,00 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 €M 2021 2022 2023 2024 2025 2026 2027 2028 2029 Accumulated ebitda 0.6 9.7 21.2 38.0 62.7 93.
Slide 12: Operational scope of the three dimensions (I)
OPERATIONAL SCOPE OF THE THREE DIMENSIONS (I) DIVERSIFICATION ▪ The diversification projects strengthen the intermediate chemical and pharmacy divisions, and the water purification segment, which, although it belongs to the chlorine derivatives division, is not subject to the chlorine-caustic soda c
Slide 13: Operational scope of the three dimensions (II)
OPERATIONAL SCOPE OF THE THREE DIMENSIONS (II) DIGITALISATION ▪ Ercros’ digital transformation will adopt solutions that will optimize and automate processes, provide information considered useful today but not accessible or not stored, and, in so doing, modernize the company and make it more compet
Slide 14: Operational scope of the three dimensions (III)
OPERATIONAL SCOPE OF THE THREE DIMENSIONS (III) DIGITALISATION ▪ The 3D PLAN includes 11 digitalisation projects focused on improving the entire value chain of the company, with special emphasis on the areas of maintenance, logistics, production and information systems. Total investment Contribution
Slide 15: Operational scope of the three dimensions (IV)
OPERATIONAL SCOPE OF THE THREE DIMENSIONS (IV) DECARBONIZATION ▪ Ercros is aligned with the decarbonization and fight against climate change objectives adopted by the EU and, consequently, has committed to: ▪ Achieve carbon neutrality by 2050. ▪ Promote the energy transition of its activity. ▪ Progr
Slide 16: Operational scope of the three dimensions (V)
OPERATIONAL SCOPE OF THE THREE DIMENSIONS (V) DECARBONIZATION ▪ To achieve these objectives, the 3D PLAN proposes investments in the areas of: (i) energy efficiency; (ii) adaptation to climate change; (iii) maximizing the use of hydrogen; (iv) circular economy; and (v) sustainable mobility. ▪ The de
Slide 17: Operational scope of the three dimensions (and VI)
OPERATIONAL SCOPE OF THE THREE DIMENSIONS (and VI) DECARBONIZATION (experience gained) ▪ Ercros undertakes decarbonization projects based on the experience acquired since 2015 in improving the company's energy efficiency and other actions focused on reducing environmental impact. Previous Ercros’ in
Slide 18: Investment projects list (I)
INVESTMENT PROJECTS LIST (I) DIVERSIFICATION (4 projects) Project 1: Water purification (Sabiñánigo; CD*) ▪ New sodium chlorite plant, mainly dedicated to export markets. Project 2: ErcrosTech (Almussafes; IC) ▪ Expansion of ErcrosTech resin production capacity. Project 3: Dipenta (Tortosa; IC) ▪ Ex
Slide 19: Investment projects list (II)
INVESTMENT PROJECTS LIST (II) DIGITALISATION (11 projects) Project 5: Big Data (production) ▪ Optimization of production processes; minimization of returns and reduction in consumption of raw materials and energy. Project 6: Process automation (production) ▪ Automatic control of manufacturing proces
Slide 20: Investment projects list (III)
INVESTMENT PROJECTS LIST (III) Project 9: B2B customers (logistics) ▪ Digitize the loading, dispatch and monitoring of products. Platform to manage orders, invoices and payment statuses. Project 10: Software MRP (logistics) ▪ Implement MRP (Material Requirements Planning) software for the purchase o
Slide 21: Investment projects list (IV)
INVESTMENT PROJECTS LIST (IV) Project 13: Optimization of the work environment (information systems) ▪ Adoption of an integrated platform that channels the company's procedures with its employees; and development of an integrated document manager. Project 14: Communication with Public Administration
Slide 22: Investment projects list (V)
INVESTMENT PROJECTS LIST (V) DECARBONIZATION (5 projects) Project 16: Energy efficiency (Tortosa, Almussafes, Vila-seca I and Vila-seca II) ▪ Improvement of energy efficiency by: (i) adaptation of production processes; and (ii) reuse of residual energy and raw materials. Project 17: Adaptation to cl
Slide 23: Investment projects list (VI)
INVESTMENT PROJECTS LIST (VI) Project 18: Use of hydrogen (Sabiñánigo, Vila-seca I and Vila-seca II) ▪ Project focused on maximizing the use of hydrogen produced in electrolytic processes (and minimizing gas consumption) through: (i) a mixed burner in the Sabiñánigo steam boiler to thermally use hyd
Slide 24: Investment projects list (and VII)
INVESTMENT PROJECTS LIST (and VII) Project 20: Sustainable mobility (Vila-seca I, Vila-seca II and logistics area) ▪ Project aimed at reducing the negative impact on the climate of the transport of people and goods by: (i) reducing the emissions of CO2 generated in the Ercros’ freight transport; and
Slide 25: Disclaimer
DISCLAIMER This document does not constitute an offer or invitation to acquire or subscribe for shares. Likewise, this document does not constitute an offer to buy, sell or exchange, or a request for an offer to buy, sell or exchange securities in any other jurisdiction. This document contains infor
Slide 26: For further information
For further information: Ercros Av. Diagonal, 593-595 08014 Barcelona Ph.: (+34) 934 393 009 (+34) 609 880 630 E-mail: ercros@ercros.es www.ercros.es