Altri, Sgps, S.a. · EURONEXT:ALTR
Altri, Sgps — Investor Presentation (October 2016)
28 slides from Altri, Sgps's investor presentation, October 2016
Slide 1: Pulp and forest: Presentation on Altri 2016
Pulp and forest Presentation on Altri 2016
Slide 2: Altri’s overview
Altri’s overview Business development BHKP Market Appendix 2 2
Slide 3: Forest management
Forest management 82K ha rented in Portugal – 20% self sufficiency rate – Mainly focused on eucalyptus globulus – Biological asset recorded@105M€ on BS Strategic location – High yield locations – 10/12 years growing age – 10 m3 per ha per year Focus on R&D – Over 40 years of experience – Genetic imp
Slide 4: 2 types of pulp produced
2 types of pulp produced BEKP – Celbi and Celtejo – 924 K tonnes produced in 2015 Dissolving pulp – Caima – 98 K tonnes produced in 2015 1022 thousand tones of pulp produced in 2015 4
Slide 5: Altri sales: main markets
Altri sales: main markets 100% eucalyptus (hardwood) pulp production Breakdown 2015 Main end uses Main markets – Tissue (49%) – Printing and writing (22%) Paper – Specialties (13%) – Dissolving pulp (9%) Fabrics (rayon) 94% of total production exported – Paper pulp (BEKP): strategic focus on Europe
Slide 6: Key financial indicators € million
Key financial indicators € million Total revenues EBITDA 700,0 665 250,0 221 600,0 550 522 534 200,0 495 500,0 472 161 143 141 400,0 150,0 113 114 300,0 279 273 253 100,0 81 69 200,0 51 50,0 100,0 0,0 0,0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 180,0
Slide 7: Pulp production: evolution
Pulp production: evolution From 115K ton in 2005 to 1 million in 2015 1200 Celbi’s expansion project: 365 M€ 1.022 991 1000 Acquisition 973 of Celbi: 910 431 M€ 847 787 800 Acquisition of Celtejo: Thousand tones 655 40 M€ 600 576 511 400 255 200 115 0 2005 2006 + 2007 + 2008 2009 2010 2011 2012 2013
Slide 8: Deleveraging trend
Deleveraging trend 357 million Euros in Net Debt reduction over the last 7 years 800,0 728,0 688,3 630,2 573,7 525,4 442,6 € million 2009 2010 2011 2012 2013 2014 2015 8
Slide 9: Free cash flow evolution
Free cash flow evolution Avg 2010-15 free cash flow per tonne: 80 €/tonne FCF/tonne 92 € 52€ 68€ 63€ 57€ 147€ 150,5 82,8 € million 72,0 62,2 61,6 56,9 67,7 43,8 39,7 56,5 58,1 48,3 8,6 72,0 4,1 4,1 5,1 2010 2011 2012 2013 2014 2015 Net debt reduction (M€) Dividends (M€) Free cash flow to equity (M€)
Slide 10: Altri’s overview
Altri’s overview Business development BHKP Market Appendix 10 10
Slide 11: Altri: looking forward
Altri: looking forward Ramping up to produce1 million tons of BHKP Debottlenecking in Celbi – 695 thousand tonnes produced in 2015 – 750 thousand tonnes by 2017/18 Celtejo – 230 thousand tonnes produced in 2015 – Feasibility study underway to increase capacity to 250 thousand tonnes 11
Slide 12: Altri: looking forward
Altri: looking forward Dissolving wood pulp in Caima mill – 97K tonnes of DP produced in 2015 – 105K tonnes of DP from 2016 onwards Significant added value – One of the lowest cost producers worldwide – Prime quality rayon grade producer – Ambition to produce higher value added products: specialty g
Slide 13: Value added strategic objective
Altri: looking forward Dissolving pulp project in Caima mill Value added strategic objective Source: Hawkins Wright 13
Slide 14: Altri’s overview
Altri’s overview Business development BHKP Market Appendix 14 14
Slide 15: Global BHKP pulp market
Global BHKP pulp market Global hardwood demand grew 4.6% (CAGR) between 1990 – 2015 European hardwood demand grew 2.6% (CAGR) between 1990 – 2015 – From 4,8 M tonnes in 1990 to 9,2 M tonnes in 2015 (+4,3 M tonnes) – Mkt share decreased from 50% in 1990 to 31% in 2015 Chinese demand grew 16.0% (CAGR)
Slide 16: Global BHKP pulp market
Global BHKP pulp market Global BHKP incremental demand Incremental yearly BHKP demand 1990-2015 (thousand tonnes) 1990-2015 (thousand tonnes) 40.000 2.500 35.000 30.000 2.000 25.000 20.000 1.500 15.000 y = 820,01x + 8117,4 R² = 0,9916 1.000 10.000 5.000 500 - 1990 1991 1992 1993 1994 1995 1996 1997
Slide 17: Global BHKP pulp market
Global BHKP pulp market Global BHKP supply BHKP supply and demand 2005-2015 (thousand tonnes) 2005-2015 (incremental thousand tonnes) 3.000 35.000 Total supply LHS 3.000 2.500 2.500 30.000 2.000 2.000 25.000 1.500 1.500 20.000 1.000 1.000 500 500 15.000 - - 10.000 Incremental supply RHS 2006 2007 20
Slide 18: Global BHKP pulp market
Global BHKP pulp market Incremental demand and supply vs average yearly price in Euros PIX (EUR) 800 Euro BHKP year avg Price (€) 700 Supply/Demand (incremental yearly tonnes) 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PIX (EUR) Source: PPPC, FOEX, Hawkins Wright and
Slide 19: Global BHKP pulp market
Global BHKP pulp market Pulp price weekly evolution: 2003 to date USD & EUR Source: FOEX, 19
Slide 20: Global BHKP pulp market
Global BHKP pulp market Additional tissue production: projects 2014-17E Source: Hawkins Wright 20
Slide 21: Altri’s overview
Altri’s overview Business development BHKP Market Appendix 21 21
Slide 22: Business structure and shareholders
Business structure and shareholders 100% 50%* Celbi Celtejo Caima EDP Bioeléctrica Pulp mill Pulp mill Pulp mill Biomass * Joint venture with EDP Major shareholders Free float 205.132 million shares 34% Management 66% 22
Slide 23: Biomass power production
Biomass power production 50% joint venture with EDP – 62 MW in operation Mortágua 1 8.6 MW – #1 biomass player in Portugal In operation – Equity accounting Celtejo Tariff 12.8 MW – 106€/MWh updated yearly on In operation recorded inflation – Feed in tariff granted for 25 years Financial highlights 2
Slide 24: Income statement (thousand euro)
thous and euro Total Revenues Costs of sales External supplies and services Payroll expenses Others expenses Provisions and impairment losses Tots! ecpenses (3) EBITDA {b} Margin 2015/2014 Vari Amortization and deprecistion EBIT {c} Margin Results of associsted companies Financial costs Financial in
Slide 25: Balance sheet (thousand euros)
thous and euros 2014 Biologics! sss ets Tangible assets Goodwill Investmens available for s ale Others 105,158.8 384,285.5 285,631.4 10,691.2 43,226.9 Total non current assets Inventories Cus tomers 88,868.1 Cash endcash equivslents 260,855.0 Others 25,913.7 Total current assets 430,362.3 Total asse
Slide 26: 2Q.2016 P&L
2Q.2016 P&L 2016/2015 2016/1016 ons 20 2015 verte 10 2016 vars ———E—e | “10.4% 161,706 421% 03% 43% am% 53% 56% 74% 87% 388% 405.3% 1268. 3% Tot! expenses (3) oe% 34% EB TDs {0} 3463 “a2. 1% 32.080 203% Margin 33.7% 3ipp 322% $7 pp Amomisat mc Ceoreciation 12.991 13.263 02% EBT Ee} ears Margin 255%
Slide 27: 2Q 2016 BS
2Q.2016 BS thousand euro 2015 Var Biological assets 101,472.9 1% Tangible assets 364,119.6 4% Goodwill 265,531.4 0% Investments available for sale 10,691.1 0% Other 42, 756.7 5% Total non current assets 784,571.7 -1% Inventories 56,396.6 36% Customers 91,521.3 -15% Cash and cash equivalents 243,154.
Slide 28: Disclaimer
Disclaimer All data contained in this presentation may contain confidential information, and it is exclusively intended for its addressees. Unauthorized copy, reproduction or distribution is strictly prohibited. This presentation is provided “as is” without any express or implied warranty. The infor