ENCE Energia y Celulosa SA · BME:ENC

ENCE Energia y Celulosa SA — FY2011 Earnings Presentation

16 slides from ENCE Energia y Celulosa SA's earnings presentation, Feb 29, 2012

  1. Slide 1: Ence, Energía y Celulosa 2011 Results

    Ence, Energía y Celulosa 2011 Results February 29th, 2012 1

  2. Slide 2: 2011 Results: strong cash flow generation setting the basis for an attractive dividend

    2011 Results: strong cash flow generation setting the basis for an attractive shareholders dividend payment Robust cash flow generation, that Management Board will propose to the 1 enables to combine a solid balance Shareholders’ General Meeting the payment sheet with the execution of the biomass of

  3. Slide 3: Solid 2011 results in absolute terms

    1 Solid 2011 results in absolute terms … Profit & Loss account breakdown (M€) 44 184 597 825 781 597 80 57 41 673 13 152 152 139 139 59 80 23 41 16 Pulp Energy Forestry Total Sales Cost EBITDA (adj) Non EBITDA Depreciation EBIT Interest Taxes Net profit recurrent and provisions  The 7% growth in pu

  4. Slide 4: Robust cash flow generation setting the basis for an attractive dividend payment

    1 … leading to robust cash flow generation setting the basis for an attractive shareholders dividend payment Operating Cash Flow breakdown (M€) Recourse net debt (M€) and gearing 173 1.1x 12 -10% 1.0x 45 23 3 139 139 4 156 107 84 81 77 77 EBITDA Change in Pulp Interest Taxes Other Operating Net debt

  5. Slide 5: Strong cash cost reduction based on growth in production and cost management

    2 Strong cash cost reduction based on growth in production (pulp & energy), and wood and fixed cost management … 410 Evolution of cash cost (€/t) 400 10.4 390 2.7 5.1 6.5 380 370 16.7 2.2 360 393 12.8 Due to the rise in 350 crude prices 9.8 340 352 330 Cash Cost 4Q10 Wood cost Energy cost Chemical &

  6. Slide 6: Cost differential between Brazil and Iberia reduced across the year

    2 … have allowed the cost differential between Brazil and Iberia to be reduced across the year Total cost comparison between Brazil and Iberia (USD/t) 651 653 Brazil 4Q11 Iberia 4Q11 Variable cost Other costs Source: RISI (5-Year Forecast); costs with delivery to Northern Europe; variable costs incl

  7. Slide 7: Outstanding operating performance, based on high capacity utilization ratios

    3 Outstanding operating performance, based in high capacity utilization ratios … Pulp Production Pulp Sales 360,000 (‘000t) (‘000t) 340,000 Quarterly evolution of pulp sales and production 320,000 +7% +7% 300,000 280,000 1,243 1,232.5 260,000 240,000 220,000 1,156 1,147.0 200,000 180,000 1Q11 1Q08 2

  8. Slide 8: Focus on geographic diversification reducing the risk profile

    3 … while keeping the focus on geographic diversification, thus reducing the risk profile of the business -5 p.p. 2010 2011 Spain Reduction of Spain Italy 14% Italy 19% France exposure to 16% France 10% 16% 9% the Spanish market Other Western Europe Other Western Germany 15% Germany Other 23% Europe

  9. Slide 9: Strong increase in sales and gross margin of energy business

    4 Strong increase in sales and gross margin of energy business 430,000 Electricity sales (€Mn) Quarterly evolution of electricity sales 380,000 and production +31% 330,000 184 280,000 140 230,000 180,000 3Q09 3Q10 3Q11 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 4Q09 1Q10 2Q10 4Q10 1Q11 2Q11 4Q11 2010 2011 Electr

  10. Slide 10: RDL 1/2012: putting temporarily on hold renewable energy tariffs

    4 RDL 1/2012: putting temporarily on hold renewable energy tariffs with the objective to reorganize the sector … Ence I Economic scheme is maintained for 230MW in operation facilities in operation (non-retroactive (180MW biomass) regulation) II Maintaining the economic regime for 70MW registered RDL

  11. Slide 11: Biomass with a good starting position to emerge stronger

    4 … with biomass having a good starting position to emerge stronger from this process given their differential impacts compared to other technologies Employment generation by technology  Job creation in rural areas  Support to agricultural development 1.0 10.0 Positive impact by using unprofitable

  12. Slide 12: Solid pulp prices in 2011 and strong outlook in 2012

    5 Solid pulp prices in 2011 and strong outlook in 2012, with market prices showing an upward trend since December 70 Evolution of pulp prices ($/t) Inventories in days 864 868 60 847 816 Average 800$/t 50 in 2011 722 40 684 30 20 Consumers BSKP BHKP 10 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-0

  13. Slide 13: Solid 2012 outlook

    Solid 2012 outlook Pulp production Electricity sales Cash cost (€/t) (tones) (MWh) 352 -4%/-6% +2%/+5% +2%/+5% 1,490,290 1,243,108 2011 2012 2011 2012 4T11 2012  Increasing the availability and efficiency of industrial  Increasing the energy margin facilities contribution due to higher electricity

  14. Slide 14: In summary

    In summary Year 2011 1 Very sound operating performance 2 Acceleration in sales and margin Proposal for a total contribution from the energy business shareholder remuneration in 2012 of 34.3M€ (1) 3 Strong reduction in cash cost 7.4% dividend yield 4 Solid pulp prices Year 2012 Price increase to760U

  15. Slide 15: Disclaimer

    Disclaimer This presentation contains statements that constitute forward looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this document and include statements regarding the inten

  16. Slide 16: Ence, Energía y Celulosa 2011 Results

    Ence, Energía y Celulosa 2011 Results February 29th, 2012 16

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