INTERIM REPORT | 9M 2021
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INTERIM REPORT | 9M 2021
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PART 1
MANAGEMENT REPORT
INTERIM REPORT | 9M 2021
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1 HIGHLIGHTS
CONSOLIDATED NET PROFIT INCREASES 68% IN THE FIRST 9 MONTHS OF 2021
SEMAPA GROUP INVESTS 82 MILLION EUROS. REDUCTION IN CONSOLIDATED NET DEBT
BY 138 MILLION EUROS COMPARED TO THE END OF 2020
After the new waves of Covid‐19 infections in the 1st quarter, which forced governments in the Group's key
markets to take lockdown measures, the economies gradually opened up in the 2nd quarter, and remained
open in the 3rd quarter, with an impact mainly on the Pulp and Paper segment.
The consolidated revenue of Semapa Group in the first nine months of 2021 was 1,515.3 million euros (+4.7%
year‐on‐year), 1,119.6 million euros generated in Pulp and Paper / Navigator (+7.3%), 366.7 million euros in
Cement / Secil (‐3.5%), and 29.1 million euros in Environment / ETSA (+24.4%). Exports and foreign sales for
the same period amounted to 1,108.9 million euros, accounting for 73.2% of revenue.
Navigator's revenue reflects the increase in paper volumes in a context of price recovery, although the
average in the period is still slightly below the average price in 2020 (‐0.5%). In this period, there was an
increase in pulp prices while the sales volume decreased, conditioned by less availability of pulp for the
market (‐47% compared to the same quarter last year) due to higher integration in paper. In the Cement
segment, revenue essentially reflects the negative developments in the Lebanese market, an effect of the
strong depreciation of the Lebanese pound against the Euro, which more than outweighed the effect of the
positive developments in the Portuguese, Tunisian, and Brazilian markets.
EBITDA in the first nine months of 2021 totalled 364.8 million euros (+38.7 million euros year on year). Pulp
and paper generated 246.0 million euros (+16.9%), Cement generated 107.3 million euros (‐0.1%) and
Environment generated 11.5 million euros (+47.4%). Secil's EBITDA remained stable when compared to the
same period of the previous year, despite the year 2020 being positively impacted by capital gains generated
from asset sales (around 7 million euros). Without this effect, Secil's EBITDA would have grown by 6.2%. In
the first nine months of 2021 consolidated EBITDA margin was 24.1% (vs. 22.5% in 2020).
Net profit attributable to Semapa shareholders at the end of the first nine months of 2021 stood at 122.2
million euros (vs. 72.8 million euros in the same period in 2020). This growth resulted from a favourable
evolution of EBITDA (+38.7 million euros) combined with better financial results (+20.9 million euros)
stemming from the lower negative exchange rate effects in Secil (Brazilian real), a reduction in depreciation,
amortization and impairment losses and provisions (+24.5 million euros) and negatively influenced by the
tax function (‐21.5 million euros).
Investments in the first nine months of the year amounted to 82 million euros, which includes 13.8 million
euros relating to the Research, Development and Technology (RD&T) project, and decarbonisation at the
Outão cement plant, in Portugal. The CCL Project – Clean Cement Line, includes several subprojects whose
main objectives are to develop and demonstrate on an industrial scale a new cement production technology,
reduce the plant's CO2 emissions by at least 20%, increase energy efficiency by 20% and generate 30% of
electricity through an innovative hybrid generation system, through process heat recovery and concentrated
solar thermal energy. This project is simultaneously Project PIN ‐ Project of National Interest, and is to date
the largest RD&T project in the Portugal 2020 programme. It is estimated that the total investment will
amount to 86 million euros and will be completed by 2023.
In the first nine months of the year, consolidated Net Debt totalled 1,077.2 million euros, 138 million euro
less compared to the end of 2020. On 30 September 2021, total consolidated cash and cash equivalents
amounted to 323.6 million euros, in addition to 591.1 million euros in committed and undrawn credit lines,
thus ensuring strong liquidity in the current context of uncertainty.
INTERIM REPORT | 9M 2021
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LEADING BUSINESS INDICATORS
IFRS ‐ accrued amounts
(million euros)
9M 2021 9M 2020 Var. Q3 2021 Q3 2020 Var.
Revenue 1,515.3 1,447.0 4.7% 543.9 505.2 7.7%
EBITDA 364.8 326.1 11.9% 140.0 122.8 14.1%
EBITDA margin (%) 24.1% 22.5% 1.5 p.p. 25.7% 24.3% 1.4 p.p.
Depreciation, amortisation and impairment
losses
(140.5) (166.1) 15.4% (47.1) (54.3) 13.3%
Provisions (2.1) (1.0) ‐112.7% 0.2 3.0 ‐95.0%
EBIT 222.2 159.0 39.8% 93.1 71.5 30.2%
EBIT margin (%) 14.7% 11.0% 3.7 p.p. 17.1% 14.1% 3.0 p.p.
Net financial results (36.2) (57.1) 36.6% (12.2) (13.7) 11.0%
Net monetary position (0.2) ‐ ‐ (0.0) ‐ ‐
Profit before taxes 185.8 101.9 82.3% 80.8 57.7 40.0%
Income taxes (32.5) (11.0) ‐194.7% (17.8) (6.1) ‐189.8%
Net profit for the period 153.3 90.9 68.7% 63.0 51.6 22.2%
Attributable to Semapa shareholders 122.2 72.8 68.0% 49.1 42.5 15.7%
Attributable to non‐controlling interests (NCI) 31.0 18.1 71.6% 13.9 9.1 52.5%
Cash flow 295.8 257.9 14.7% 110.0 102.9 6.9%
Free Cash Flow 215.8 250.6 ‐13.9% 60.8 104.4 ‐41.7%
Var.
30/09/2021 31/12/2020
Sep21 vs.
Dec20
Equity (before NCI) 1,019.7 948.8 7.5%
Interest‐bearing net debt 1,077.2 1,215.5 ‐11.4%
Lease liabilities (IFRS 16) 91.9 80.3 14.4%
Total 1,169.1 1,295.9 ‐9.8%
SUMMARY TABLE OF OPERATING INDICATORS
Unit 9M 2021 9M 2020 Var. Q3 2021 Q3 2020 Var.
Pulp and Paper
BEKP Sales (pulp) 1 000 t 207 297 ‐30.4% 55 104 ‐47.5%
UWF Sales (paper) 1 000 t 1,081 934 15.7% 380 336 12.9%
Total sales of tissue 1 000 t 77.8 79.2 ‐1.8% 26.0 27.3 ‐4.8%
Cement
Sales of Grey cement 1 000 t 3,925 3,959 ‐0.9% 1,304 1,537 ‐15.2%
Sales of Ready‐mix 1 000 m3 1,463 1,357 7.9% 524 480 9.3%
Environment
Collection of raw materials ‐ Animal waste
(categories 1, 2 and 3)
1 000 t 92.1 89.8 2.6% 32.2 30.5 5.4%
INTERIM REPORT | 9M 2021
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2 PERFORMANCE OF THE SEMAPA GROUP BUSINESS AREAS
2.1 BREAKDOWN BY BUSINESS SEGMENTS
IFRS ‐ accrued amounts
(million euros)
Pulp and Paper Cement Environment Holdings
Consoli
dated
9M 2021 21/20 9M 2021 21/20 9M 2021 21/20 9M 2021 21/20 9M 2021
Revenue ‐ External 1,119.6 7.3% 366.7 ‐3.5% 29.1 24.4% ‐ ‐ 1,515.3
Revenue 1,119.7 7.3% 366.9 ‐3.4% 29.1 24.4% (0.3) 3.4% 1,515.3
EBITDA 246.0 16.9% 107.3 ‐0.1% 11.5 47.4% 0.0 ‐95.1% 364.8
EBITDA margin (%) 22.0% 1.8 p.p. 29.2% 1.0 p.p. 39.6% 6.2 p.p. 0.0 p.p. 24.1%
Depreciation, amortisation and
impairment losses
(100.8) 17.9% (37.0) 8.9% (2.4) ‐2.8% (0.2) 34.1% (140.5)
Provisions 0.1 ‐69.7% (2.2) ‐53.4% ‐ ‐ ‐ ‐ (2.1)
EBIT 145.3 64.9% 68.0 4.2% 9.1 66.5% (0.2) ‐210.5% 222.2
EBIT margin (%) 13.0% 4.5 p.p. 18.5% 1.4 p.p. 31.3% 7.9 p.p. 0.0 p.p. 14.7%
Net financial results (12.7) ‐40.6% (19.2) 51.8% (0.1) 24.2% (4.2) 48.4% (36.2)
Net monetary position ‐ (0.2) ‐ ‐ (0.2)
Profit before taxes 132.6 67.7% 48.6 90.7% 9.0 69.7% (4.3) 45.4% 185.8
Income taxes (26.6) ‐119.8% (7.2) ‐16.1% (2.0) ‐62.1% 3.3 ‐61.2% (32.5)
Net profit for the period 106.0 58.2% 41.4 114.7% 7.0 72.0% (1.0) ‐285.4% 153.3
Attributable to Semapa
shareholders
74.1 58.2% 42.2 98.0% 7.0 72.0% (1.0) ‐285.4% 122.2
Attributable to non‐
controlling interests (NCI)
31.8 58.2% (0.8) 61.2% 0.0 72.9% ‐ ‐ 31.0
Cash flow 206.6 9.2% 80.7 31.4% 9.4 46.6% (0.9) ‐201.0% 295.8
Free Cash Flow 182.7 7.2% 42.7 ‐50.6% 3.8 ‐23.2% (13.4) ‐18.8% 215.8
Interest‐bearing net debt 596.9 277.1 (3.3) 206.6 1,077.2
Lease liabilities (IFRS 16) 52.2 37.9 1.6 0.3 91.9
Total 649.1 314.9 (1.7) 206.8 1,169.1
Notes:
For the purpose of calculating the change in net debt the values of 31.12.2020 are used.
Figures for business segment indicators may differ from those presented individually by each Group, as a result of consolidation adjustments.
The Navigator Company (“Navigator”) released its results on 28 October 2021, so only the highlights of that
report will be presented herein. Secil and ETSA, which are not listed, did not publish their results. Therefore,
their operations are described in more detail.
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Semapa - Sociedade de Investimento e Gestão SGPS SA published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 20:30:09 UTC.