ENCE Energia y Celulosa SA · BME:ENC

ENCE Energia y Celulosa SA — Q1 2012 Earnings Presentation

12 slides from ENCE Energia y Celulosa SA's earnings presentation, Apr 27, 2012

  1. Slide 1: Ence, Energía y Celulosa 1Q12 Results

    Ence, Energía y Celulosa 1Q12 Results April 27th, 2012 1

  2. Slide 2: 1Q12 Results

    1Q12 Results 2 … the strong production and sales growth of pulp and electricity … In line Solid with operating 2012 1 results targets 3 … the decreasing trend in cash cost to in 1Q12 reach €338/t … based on… 4 … and the maintenance of financial strength in terms of debt and liquidity 1Q2012 numbers

  3. Slide 3: Strong 1Q12 results based on …

    1 Strong 1Q12 results based on … Breakdown of 1Q12 P&L (M€) 250 8 200 50 143 150 100 201 50 166 36 5 31 7 15 16 16 6 10 0 3 Pulp Energy Forestry Total Sales Cost EBITDA Non EBITDA Depreciation EBIT Interest Taxes Net profit (adj) recurrent and provisions  7% growth in pulp sales has partialy offset

  4. Slide 4: … the excellent operational performance of pulp production …

    2 … the excellent operational performance of pulp production … Pulp sales (€M) Production per plant (tons) +3% +2% +1% +7% 120,934 125,065 97,667 99,249 -10% 91,107 91,595 170.4 159.2 143.1 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 Huelva Pontevedra Navia 1Q11 1Q12 1Q12 without Price fall  +2% increase in cell

  5. Slide 5: … and electricity generation

    2 … and electricity generation Energy metrics Electricity sales (M€) +9% +12% +17% 396,314 113 126 364,477 50 1Q11 1Q12 1Q11 1Q12 Electricity sales (MWh) Average price (€/MWh) 43 124 127 126 116 113 108 109 1Q11 1Q12 101 102  Increased production of electricity linked to the production of cellulose

  6. Slide 6: Strong cash cost reduction through increases in pulp production and electricity

    3 Strong cash cost reduction through increases in pulp production and electricity as well as reducing wood and fixed costs... 390 Evolution of cash cost (€/t) 380 19.5 370 13.2 360 4.7 2.2 380 350 6.0 0.0 340 1.5 23.3 3.6 338 330 Cash Cost 1Q11 Wood cost Chemical & MWh sold per Price per MWh Energy

  7. Slide 7: … consolidating the financial strength of the company

    4 … consolidating the financial strengh of the company Breakdown of operating cash flow (€M) Net financial debt (€M) and leverage 13 1.3x 13 31 9 1.2x 155 160 18 5 0.8x 17 13 13 4 8 1Q11 1Q12 1T11 1T12 EBITDA Change in Anticipated Pulp Interest Other Adjusted 1Q12 working IVA investment expenses ope

  8. Slide 8: Clear recovery of the results compared with the 4Q11

    5 Clear recovery of the results compared with the 4Q11 Pulp price (€/t) Cash cost (€/t) Electricity sales (MWh) +6% -4% +3% 422 446 352 338 383.495 396.314 4Q11 1Q12 4Q11 1Q12 4Q11 1Q12 Adjusted EBITDA (€M) +64% 35.6 21.6 4Q11 1Q12 8

  9. Slide 9: Strong outlook in 2012, with market prices showing an upward trend since December

    6 Strong outlook in 2012, with market prices showing an upward trend since December 70 Evolution of pulp prices ($/t) Inventories in days 60 847 868 816 50 760 684 702 40 30 20 Consumers BSKP BHKP 10 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Aug-00 Aug-01 Au

  10. Slide 10: Conclusion

    Conclusion Solid Tangible mid term operating Good outlook for 2012 cash flow results results opportunities in 1Q12 Strong production and sales growth Production growth (+2%/+5%) From “forestry owner” to of pulp and electricity (2% & 8%) in 2012 “forestry manager” allowing divestments for a total of

  11. Slide 11: 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

  12. Slide 12: Ence, Energía y Celulosa 1Q12 Results

    Ence, Energía y Celulosa 1Q12 Results April 27th, 2012 12

Ence Energía y Celulosa — Q1 2012 Earnings Presentation on 6ix