Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Q1 2016 Earnings Presentation
23 slides from Ence Energia Y Celulosa Sa's earnings presentation, Apr 21, 2016
Slide 1: 1Q 2016 Results
1Q 2016 Results April 21st 2016
Slide 2: Index
Index Highlights 1Q 2016 Results Summary Fuente: Ence 2
Slide 3: Highlights
Highlights Eucalyptus pulp demand maintains its growth speed (+8.5% y-o-y in January and 1 February) despite declining prices 2 Prices have continued adjusting in 1Q16 and should bottom out in 2Q16 1Q16 cash cost affected by operational one-offs and Pontevedra annual 3 maintenance shutdown 4 €6 Mn p
Slide 4: Strong chemical market pulp demand growth in 1Q16 (+4.8%)
Strong chemical market pulp demand growth in 1Q16 (+4.8%) Led by eucalyptus pulp (+8.5%) Total market pulp demand evolution (PPPC W20) 2.5 % 2.1 % 3.3 % 47.0 Mnt 44.6 Mnt 45.5 Mnt 43.5 Mnt BHKP: + 4% CAGR 4.8 % 7.1 % 7.2 Mnt 7.5 Mnt 5.7 % BSKP: + 1% 10.9CAGR % 8.5 % 2012 2013 2014 2015 Ac Feb 15 Ac
Slide 5: Current hardwood price levels in China should force significant production curtailment
Current hardwood price levels in China should force significant production curtailment AverageBHKP BHKPdelivered deliveredcash cost cash $/tby cost byregion region (CIF (cif China) China) USD / Ton 610 $/t 600 567 516 CURRENT BHKP CHINESE SPOT PRICE: $470/t 500 467 391 427 400 380 $/t 294 300 274 20
Slide 6: Price gap between BHKP and BSKP is again in its long term average
Price gap between BHKP and BSKP is again in its long term average Pulp prices should bottom out in 2Q16 BHKP and BSKP $/t prices cif China USD / Ton 750 700 650 600 550 500 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 BHKP $ CHINA BS
Slide 7: Cash cost in 1Q16 affected by operating one-offs
Cash cost in 1Q16 affected by operating one-offs And Pontevedra annual maintenance shutdown Cash cost breakdown analysis One-off breakdown 354.8 359.8 19.8 379.6 Turbine and other one- €10.5/t PONTEVEDRA offs 23.6 30.6 27.5 28.1 Maintenance stop €4.1/t 109.8 109.4 Start up of new NAVIA equipment and
Slide 8: Pontevedra
Pontevedra The facts / last update Investments: €135 Mn included in our Strategic Plan On January 25th 2016, the Ministry of Agriculture and Environment granted Ence the extension of the concession Ence’s plan is to achieve the same pulp production of its pulp mill in Pontevedra for 60 years. costs
Slide 9: Biomass energy development advancing
Biomass energy development advancing Stable earnings based on our agroforestry management expertise Strategy Required Post Tax Equity IRR Spain Chile India Colombia Globally we aim to develop biomass energy projects where > 10% > 15% > 21% > 19% regulatory environment is favorable and electricity pr
Slide 10: Asset divestments in 2016
Asset divestments in 2016 Asset divestments book value breakdown 30 Estimated capital In 1Q16 Ence has agreed the 50 12 gains sale of 1,305 hectares for a total amount of €30 Mn, with 18 estimated capital gain of €12 24 Mn and having received €3.4 20 Mn of cash in advance. 12 6 26 Additionally, Ence
Slide 11: Attractive shareholder remuneration
Attractive shareholder remuneration Maximizing shareholder remuneration Annual accrued dividends (€M) Maintaining a conservative leverage position €0.15/share €0.14/share €0.13/share below 2.5x at mid cycle levels. Current leverage is 1.2x. €0.10/share Value creation growth projects ruled by stringe
Slide 12: Index
Index Highlights 1Q 2016 Results Summary Fuente: Ence 12
Slide 13: Key Figures 1Q 2016
Key Figures 1Q 2016 Consolidated key figures (€ Mn) 156.3150.2 Total net revenues reaches €150.2 Mn in 1Q16 Adjusted Ebitda stands at €37.0 Mn while EBIT figure 39.1 37.0 reaches €17.9 Mn 18.2 17.9 9.7 13.9 1Q16 net profit grows by 43.9% vs 1Q15 reaching €13.9 Total net revenues Adjusted EBITDA EBIT
Slide 14: Pulp business Operating performance
Pulp business Operating performance Pulp sales volume (t) Electricity sold (MWh) Pulp business revenues (€ Mn) 220,397 -1.3% 217,504 170,404 -9.4% 130.8 -1.0% 129.6 154,338 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 Pulp business revenues have decreased by 1.0% in 1Q16, negatively impacted by: Lower pulp sales
Slide 15: Pulp business P&L
Pulp business P&L P&L (€ Mn) 3.6 11.6 2.2 5.9 29.2 4.2 25.6 14.0 12.0 Adjusted Non recurent EBITDA Depreciation EBIT Net FX impact Financial result Taxes Net profit EBITDA expenses and others Pulp business Adjusted EBITDA reaches €29.2 Mn Pulp business EBITDA increases by +3.9% up to €25.6 Mn despit
Slide 16: Pulp business Cash Flow
Pulp business Cash Flow Cash Flow (€ Mn) 11.3 0.1 29.2 8.3 3.4 0.05 6.4 1.8 11.3 9.7 1.5 3.5 Adj EBITDA Chg in WK Taxes Maintenance Interest RECURRENT Other minor Disposals FCF Expansion Environm. FCF AFTER 1Q16 capex payments FCF and capex capex EXP CAPEX adjustments Pulp business recurrent free ca
Slide 17: Energy business Operating performance
Energy business Operating performance Sales volume (MWh) Pool price (€/MWh) Revenues (€Mn) -8.4% 167,895 - 16.9% 24.6 46.0 139,573 22.5 31.0 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 Ence has reduced the number of energy generation hours from 1,499 h in 1Q15 to 1,246 h in 1Q16 to maximize the regulatory cap of
Slide 18: Energy business P&L
Energy business P&L P&L (€ Mn) 7.7 7.7 3.9 3.9 1.3 0.7 2.0 Adjusted EBITDA EBITDA Depreciation and others EBIT Financial result Taxes Net profit Energy business Adjusted EBITDA reaches €7.7 Mn, -20.7% vs 1Q15 due to management decisions Lower EBITDA to be recouped during the year Fuente: Ence 18
Slide 19: Energy business Cash Flow
Energy business Cash Flow Cash Flow (€ Mn) 4.6 7.7 0.6 0.7 1.8 0.3 1.6 Adjusted EBITDA Change in working Maintenance capex Interest payments RECURRENT FREE Other minor and FREE CASH FLOW 1Q16 capital CASH FLOW adjustments Energy business recurrent free cash flow reaches €1.8 Mn Lower free cash flow
Slide 20: Net debt position and maturity
Net debt position and maturity Net debt evolution (€Mn) Liquidity availability (€Mn) 258.3 262.3 241.2 241.9 65.7 79.1 60 47 181.3 194.4 192.6 183.2 2015 1Q16 2015 1Q16 Pulp business Energy business Pulp business Energy business Debt maturity (€Mn) 267.0 3.4 Ence maintains its net debt position in 1
Slide 21: Index
Index Highlights 1Q 2016 Results Summary Fuente: Ence 21
Slide 22: Highlights
Highlights Eucalyptus pulp demand maintains its growth speed (+8.5% y-o-y in January and 1 February) despite declining prices 2 Prices have continued adjusting in 1Q16 and should bottom out in 2Q16 1Q16 cash cost affected by operational one-offs and Pontevedra annual 3 maintenance shutdown 4 €6 Mn p
Slide 23: Delivering value, delivering commitments THANK YOU
Delivering value, delivering commitments THANK YOU
Ence Energía y Celulosa — Q1 2016 Earnings Presentation on 6ix