Pulp and forest Presentation on Altri 2016
Altri’s overview Business development BHKP Market Appendix 2 2
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 m 3 per ha per year Focus on R&D – Over 40 years of experience – Genetic improvements obtained through traditional breeding Forest certifications for the whole area under management – FSC – PEFC 3
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
Altri sales: main markets 100% eucalyptus (hardwood) pulp production Breakdown 2015 Main markets Main end uses – 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 • #1 market in demand • Lower freight cost – Dissolving Pulp (DP): 100% exported to China 1011 thousand tonnes sold in 2015 – 923 thousand tones of BEKP – 88 thousand tones of DP 5
Key financial indicators € million Total revenues EBITDA 665 700,0 250,0 221 600,0 550 534 522 200,0 495 472 500,0 161 143 141 150,0 400,0 114 113 279 273 300,0 253 100,0 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 EBIT Net profit 180,0 168 140,0 160,0 118 120,0 140,0 100,0 120,0 109 94 80,0 100,0 89 62 55 52 80,0 60,0 65 61 58 37 60,0 40,0 40 23 21 40,0 20,0 5 13 20,0 0,0 0,0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 -20,0 -11 6
Pulp production: evolution From 115K ton in 2005 to 1 million in 2015 Celbi’s expansion 1200 project: 365 M € 1.022 991 Acquisition 973 1000 of Celbi: 910 431 M € 847 787 800 Acquisition of Celtejo: Thousand tones 655 40 M € 576 600 511 400 255 200 115 0 2005 2006 + 2007 + 2008 2009 2010 2011 2012 2013 2014 2015 Caima Celtejo Celbi 850 million Euros invested until 2010 Financing through financial debt 7
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 € million 442,6 2009 2010 2011 2012 2013 2014 2015 8
Free cash flow evolution Avg 2010-15 free cash flow per tonne: 80 € /tonne 92 € 52 € 68 € 63 € 57 € 147 € FCF/tonne 150,5 € million 82,8 72,0 62,2 56,9 61,6 67,7 43,8 56,5 39,7 48,3 8,6 58,1 5,1 72,0 4,1 4,1 2010 2011 2012 2013 2014 2015 Net debt reduction (M € ) Dividends (M € ) Free cash flow to equity (M € ) After investment phase, main focus on net debt reduction One of highest FCF per tonne of pulp worldwide 9
Altri’s overview Business development BHKP Market Appendix 10 10
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
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 grades – Step by step approach 12
Altri: looking forward Dissolving pulp project in Caima mill Value added strategic objective Source: Hawkins Wright 13
Altri’s overview Business development BHKP Market Appendix 14 14
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) between 2000 – 2015 – From 1,1 M tonnes in 2000 to 9,2 M tonnes in 2015 (+8,0 M tonnes) – Mkt share grew from 7% in 2000 to 31% em 2015 Organic growth in Europe Strong exogenous growth driven by Chinese demand 15
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 1.500 20.000 y = 820,01x + 8117,4 15.000 R² = 0,9916 1.000 10.000 5.000 500 - 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 - 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 TOTAL Linear (TOTAL) • “Linear” growth pattern • Between 1990 and 2015, on absolute terms demand grew, • Strong adherence for a period on average, 812 thousand of over 25 years tonnes per year • All years recorded positive growth rates Source: PPPC, Hawkins Wright and Altri 16
Global BHKP pulp market Global BHKP supply BHKP supply and demand 2005-2015 (thousand tonnes) 2005-2015 (incremental thousand tonnes) 3.000 Total supply LHS 35.000 3.000 2.500 2.500 30.000 2.000 2.000 25.000 1.500 1.500 1.000 20.000 1.000 500 500 15.000 - - 10.000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Incremental supply RHS -500 -500 5.000 -1.000 -1.000 - -1.500 -1.500 20052006200720082009201020112012201320142015 Supply demand From 2005-2015 – Supply increased, on average, around 1 million tonnes/year – Demand grew, on average, around 930 thousand tonnes/year Source: PPPC, Hawkins Wright and Altri 17
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 Altri 18
Global BHKP pulp market Pulp price weekly evolution: 2003 to date USD & EUR Source: FOEX, 19
Global BHKP pulp market Additional tissue production: projects 2014-17E Source: Hawkins Wright 20
Altri’s overview Business development BHKP Market Appendix 21 21
Business structure and shareholders 100% 50%* EDP Celbi Celtejo Caima Bioeléctrica Pulp mill Pulp mill Pulp mill Biomass * Joint venture with EDP Major shareholders Free float 34% 205.132 million shares Management 66% 22
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 2015 Celbi Caima – Turnover: 49,3 M € 27.9 MW 12.8 MW In operation – EBITDA: 17,2 M € In operation – EBITDA margin of 35% – Net profit of 5,7 € – Net debt: 63,4 M € 23
2015 P&L 24
2015 BS 25
2Q 2016 P&L 26
2Q 2016 BS 27
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 information here in is provided for general purposes only and do not constitute professional advice. This presentation may contain forward-looking information and statements that can, ultimately, prove inaccurate, due to unexpected risks and uncertainties. All data referred in this document must be reported to the document’s date. Altri makes no guarantees of any kind regarding the accuracy of the information included in this presentation. The company will not be responsible for updating or correcting any of the information hereby contained in the future. 28
Recommend
More recommend
