Semapa : Sociedade de Investimento e Gestão, SGPS, S.A. informa sobre Resultados de 2021 - versão em inglês

RESULTS PRESENTATION | YEAR 2021

1 HIGHLIGHTS

SIGNIFICANT IMPROVEMENT IN EBITDA (+89 MILLION EUROS)

CONSOLIDATED NET PROFIT GREW BY 86% IN RELATION TO THE PREVIOUS YEAR,

REACHING 198 MILLION EUROS

• The consolidated revenue of Semapa Group in 2021 was 2,131.4 million euros (+14.1% year‐on‐year), 1,595.7 million euros generated in Pulp and Paper / Navigator (+15.2%), 495.7 million euros in Cement / Secil (+9.9%), and 40.0 million euros in Environment / ETSA (+27.3%). Exports and foreign sales, for the same period, amounted to 1,576.5 million euros, accounting for 74% of revenue.
• It should be noted that in 2021 the volume of paper sold increased in a context of price recovery, in the Cement segment, revenue reflects the positive evolution that occurred in all markets where Secil operates, and revenue of the Environment segment reached its highest value ever.
• In 2021, EBITDA totalled 508.7 million euros (+89.4 million euros, +21.3%, year on year). Pulp and paper segment generated 354.7 million euros (+24.2%), Cement 139.7 million euros (+13.1%) and Environment 14.6 million euros (+44.3%). The consolidated EBITDA margin was 23.9% (vs. 22.5% in 2020).
• Net profit attributable to Semapa shareholders in 2021 reached 198.1 million euros (vs. 106.6 million euros over the previous year). This growth resulted from a favourable evolution of EBITDA (+89.4 million euros) combined with better financial results (+9.6 million euros) stemming from the lower negative exchange rate effects in Secil (Brazilian real), a reduction in depreciation, amortisation and impairment losses, and provisions (+21.5 million euros), less impact of the net monetary position (‐6.7 million euros) and negatively influenced by income taxes (‐6.0 million euros).
• In 2021, investment in fixed assets totalled 127 million euros, including 20 million euros relating to the CCL‐ Clean Cement Line project at Secil's Outão cement plant and 80 million euros in the modernisation and maintenance projects of equipment and production capacity, energy, and decarbonisation at Navigator. Additionally, it should be highlighted that Semapa Next invested 11 million euros in financial assets in start‐ups and venture capital funds.
• In 2021 year‐end, interest‐bearing consolidated Net Debt totalled 1,015.6 million euros, 200 million euros less compared to the end of 2020. On 31 December 2021, total consolidated cash and cash equivalents amounted to 382 million euros, in addition to 553 million euros in committed and undrawn credit lines, thus ensuring strong liquidity.
• The year 2021 was also marked by the strengthening of the Group's commitment to sustainability, namely:
• • At Secil, the investment in the Clean Cement Line project that combines a set of mature and innovative technologies which will enable a 20% reduction in CO2 emissions, a 20% improvement in energy efficiency, and the production of 30% of electricity through heat recovery from the process itself. The low carbon clinker that will result from this process will make it possible to respond competitively to market demand for "green procurement".
  • At Navigator, the company joined the Science Based Targets (SBTi) initiative, ahead of most other companies in the sector, having submitted for validation its greenhouse gas (GHG) emissions reduction targets based on the most up‐to‐date climate science. Also of note were the findings of the annual assessment carried out by the ESG rating agency, Sustainalytics, published at the end of January 2022. Navigator's score improves vis‐a‐vis the previous assessment, ranking 3rd out of a total of 81 global companies in the Paper & Forestry industry cluster. In addition, Navigator issued 100 million euros in bonds linked to ESG objectives, under the Sustainability Linked Bonds Framework.
• The Board of Directors will propose to the General Meeting of Shareholders a dividend distribution on outstanding shares in relation to the financial year of 2021, in the amount of 0.512 euros per share, corresponding to a total value of approximately 40.9 million euros.

1

LEADING BUSINESS INDICATORS

	IFRS ‐ accrued amounts			2021			2020			Var.				Q4 2021			Q4 2020		Var.
	(million euros)
	Revenue			2,131.4		1,867.4		14.1%				616.1		420.4	46.5%
	EBITDA			508.7		419.3		21.3%				143.9		93.3	54.3%
	EBITDA margin (%)			23.9%		22.5%			1.4 p.p.			23.4%		22.2%		1.2 p.p.
	Depreciation, amortisation and impairment			(193.9)		(214.6)		9.6%				(53.5)		(48.6)		‐10.1%
	losses
	Provisions			(4.7)		(5.5)		14.3%				(2.6)		(4.5)	42.3%
	EBIT			310.1		199.2		55.6%				87.8		40.2	118.4%
	EBIT margin (%)			14.5%		10.7%			3.9 p.p.			14.3%		9.6%		4.7 p.p.
	Net financial results			(49.3)		(58.9)		16.2%				(13.1)		(1.8)		‐629.1%
	Net monetary position			7.2		13.9			‐48.3%			7.5		13.9		‐46.5%
	Profit before taxes			267.9		154.3		73.7%				82.2		52.4	56.9%
	Income taxes			(18.0)		(12.0)			‐49.9%			14.5		(1.0)	>1000%
	Net profit for the period			250.0		142.2		75.7%				96.7		51.4	88.1%
	Attributable to Semapa shareholders			198.1		106.6		85.9%				75.9		33.8	124.4%
	Attributable to non‐controlling interests (NCI)			51.8		35.7		45.3%				20.8		17.6	18.3%
	Cash flow			448.5		362.3		23.8%				152.7		104.4	46.3%
	Free Cash Flow			295.4		345.2			‐14.4%			79.4		94.6		‐16.0%
				31/12/2021		31/12/2020			Dec21 vs.
							Dec20
	Equity (before NCI)			1,092.3		948.8		15.1%
	Interest‐bearing net debt			1,015.6		1,215.7			‐16.5%
	Lease liabilities (IFRS 16)			96.7		80.1		20.7%
	Total			1,112.3		1,295.9			‐14.2%

SUMMARY TABLE OF OPERATING INDICATORS

			Unit			2021		2020	Var.					Q4 2021		Q4 2020	Var.
	Pulp and Paper
	BEKP Sales (pulp)		1 000 t			292		394	‐25.8%					85		97	‐11.6%
	UWF Sales (paper)		1 000 t			1,474		1,276	15.5%					394		342	15.3%
	Total sales of tissue		1 000 t			105.3		106.0	‐0.7%					27.5		26.7	3.0%
	Cement
	Sales of Grey cement		1 000 t			5,257		5,314	‐1.1%					1,333		1,355	‐1.7%
	Sales of Ready‐mix		1 000 m3			1,960		1,803	8.7%					496		446	11.2%
	Environment
	Collection of raw materials ‐ Animal waste		1 000 t			125.1		121.4	3.1%					33.6		32.0	4.9%
	(categories 1, 2 and 3)

RESULTS PRESENTATION | YEAR 2021

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2 PERFORMANCE OF THE SEMAPA GROUP BUSINESS UNITS

2.1. BREAKDOWN BY BUSINESS SEGMENTS

	IFRS ‐ accrued amounts		Pulp and Paper		Cement		Environment		Holdings				Consoli
	(million euros)								dated
			2021		21/20		2021		21/20			2021		21/20		2021			21/20			2021
	Revenue ‐ External	1,595.7		15.2%	495.7		9.9%	40.0	27.3%		‐	‐			2,131.4
	Revenue	1,595.9		15.2%	495.9		9.9%	40.0	27.3%		(0.3)			15.4%			2,131.4
	EBITDA	354.7		24.2%	139.7		13.1%		14.6	44.3%		(0.4)			‐437.1%			508.7
	EBITDA margin (%)	22.2%	1.6 p.p.	28.2%	0.8 p.p.	36.5%		4.3 p.p.	‐	‐			23.9%
	Depreciation, amortisation and	(137.3)	13.1%	(53.2)	‐0.2%	(3.2)		‐2.5%	(0.3)		34.9%			(193.9)
	impairment losses
	Provisions	(3.1)	‐36.0%	(1.5)	51.3%		‐		‐	‐	‐			(4.7)
	EBIT	214.3		71.2%	85.0		26.2%		11.4	63.1%		(0.6)			‐129.0%			310.1
	EBIT margin (%)	13.4%	4.4 p.p.	17.1%	2.2 p.p.	28.5%		6.2 p.p.	‐	‐			14.5%
	Net financial results	(17.8)	‐21.1%	(26.6)	20.6%	(0.2)	25.5%	(4.8)		54.4%			(49.3)
	Net monetary position		‐	‐	7.2	‐48.3%		‐		‐	‐	‐			7.2
	Profit before taxes	196.5		77.9%	65.6		37.2%		11.2	66.5%		(5.4)			49.7%			267.9
	Income taxes	(36.2)	‐193.6%	(9.5)	‐293.3%	(2.3)		‐71.1%	29.9		>1000%			(18.0)
	Net profit for the period	160.3	63.4%	56.2	6.6%	8.9	65.4%	24.5		275.1%			250.0
	Attributable to Semapa	112.2		63.4%	52.5		12.8%		8.9	65.5%		24.5			275.1%			198.1
	shareholders
	Attributable to non‐	48.2	63.4%	3.7	‐40.6%	(0.0)		<‐1000%	‐	‐			51.8
	controlling interests (NCI)
	Cash flow	300.8	16.3%	110.9	1.8%	12.1	42.2%	24.8		281.9%			448.5
	Free Cash Flow	234.8	0.6%	69.3	‐41.5%	8.8	29.0%	(17.5)		‐27.8%			295.4
	Interest‐bearing net debt	594.8			253.9				(8.2)				175.2						1,015.6
	Lease liabilities (IFRS 16)	53.2		41.6			1.6				0.2					96.7
	Total	648.0			295.5				(6.6)				175.4						1,112.3

Note:

Figures for business segment indicators may differ from those presented individually by each Group, as a result of consolidation adjustments.

RESULTS PRESENTATION | YEAR 2021

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2.2. PAPER AND PULP BUSINESS UNIT

totalconsolidated

of% Revenue 2021

75%

% of consolidated total

EBITDA 2021

70%

HIGHLIGHTS IN 2021 (VS. 2020)

• In 2021, revenue increased by 15.2% to 1,595.9 million euros, with higher paper volumes in a context of positive development in prices.

REVENUE

1,595.9

1,385.4

Million Euros

2020	15.2%	2021

REVENUE BREAKDOWN BY SEGMENT

Million Euros

% 21/20

135.1‐16.31,595.9

145.1

169.8

1,162.2

+23.0%

+9.2%

+2.8%

‐6.0%

‐4176%

+15.2%

	UWF Paper	BEKP Pulp	Tissue	Energy	Others and	2021
					eliminations
2020	944.6	155.5	141.1	143.7	0.4	1,385.4

Note: 2020 data was reclassified for the purpose of comparability.

RESULTS PRESENTATION | YEAR 2021

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