RESULTS PRESENTATION Q1 2020 · 2020-05-28 · results presentation q1 2020 semapa – sociedade de investimento e gestÃo, sgps, s.a. public limited company av. fontes pereira de

RESULTS PRESENTATION

Q1 2020

SEMAPA – SOCIEDADE DE INVESTIMENTO E GESTÃO, SGPS, S.A.PUBLIC LIMITED COMPANY AV. FONTES PEREIRA DE MELO, Nº 14, 10º, 1050-121 LISBOA COMPANY REGISTRATION AND CORPORATE TAXPAYER NUMBER: 502 593 130SHARE CAPITAL: EUR 81,270,000ISIN: PTSEM0AM0004LEI: 549300HNGOW85KIOH584TICKER: BLOOMBERG (SEM PL); REUTERS (SEM.LS)

TRANSLATION FROM THE ORIGINAL TEXT IN PORTUGUESE

Presentation of Results:1st Quarter of 2020

Page 2

1. SEMAPA'S PERFORMANCE − In the first quarter of 2020 the Semapa Group recorded consolidated revenue of 524.0 million euros. Exports and

foreign sales amounted to 382.1 million euros, accounting for 72.9% of revenue.

− Particular focus on overall increase in sales volume of the Pulp and Paper business segment compared to the

same period in the previous year: +4% in paper, +34% in pulp and +10% in tissue. However, performance was

constrained by lower sales prices than in Q1 2019: the BHKP pulp index (in euros) fell 29% and the A4 paper index

dropped 5.5%. Compared with the fourth quarter of 2019, the increase in the volume of paper sold was not

enough to offset negative developments in sales prices in the first quarter of 2020.

− EBITDA in the first quarter of 2020 amounted to 119.1 million euros, 88.4 million euros derived from Pulp and

Paper, 28.5 million euros from Cement and 2.7 million euros from Environment. It should be highlighted the

positive evolution in the Cement and Environment segments in relation to the same quarter of the previous year.

Also noteworthy is the 25.6% growth in EBITDA vis-à-vis the fourth quarter of 2019 from 94.8 million euros to

119.1 million euros with the positive contribution from all business segments, around +16.6 million euros (Pulp

and Paper), +7.8 million euros (Cement) and +0.2 million euros (Environment), respectively. The consolidated

margin stood at 22.7%, +5.4 p.p. up from that recorded in the fourth quarter of 2019.


Page 3

LEADING BUSINESS INDICATORS

IFRS - accrued amounts (million euros)Q1 2020 Q1 2019 Var. Q4 2019 Var.

Revenue 524.0 551.3 -5.0% 545.7 -4.0%

EBITDA 119.1 132.6 -10.1% 94.8 25.6%EBITDA margin (%) 22.7% 24.0% -1.3 p.p. 17.4% 5.4 p.p.

Depreciation, amortisation and impairment losses (57.1) (57.8) 1.2% (77.8) 26.7%Provisions (2.3) 0.1 <-1000% (6.6) 64.9%

EBIT 59.7 74.9 -20.2% 10.4 475.4%EBIT margin (%) 11.4% 13.6% -2.2 p.p. 1.9% 9.5 p.p.

Net f inancial results (26.0) (9.2) -182.9% (18.8) -38.2%

Profit before taxes 33.7 65.7 -48.7% (8.5) 498.6%

Income taxes (9.5) (12.1) 21.2% 16.0 -159.5%

Net profit for the period 24.2 53.6 -54.9% 7.6 219.7%Attributable to Semapa shareholders 17.2 39.7 -56.6% 12.0 43.7%Attributable to non-controlling interests (NCI) 6.9 13.9 -49.9% (4.4) 257.1%

Cash f low 83.6 111.3 -24.9% 92.0 -9.2%

31/03/2020 31/12/2019 Mar20 vs. Dec19

Equity (before NCI) 931.0 960.9 -3.1%

Interest-bearing net debt 1,465.9 1,470.7 -0.3%

Lease liabilities (IFRS 16) 74.8 75.2 -0.5%

Total 1,540.7 1,545.8 -0.3%


Page 4

NET DEBT Pulp and paper Cement Environment Holdings Semapa

At 31 March 2020, consolidated net debt stood at 1,540.7 million euros, representing a reduction of 5.2 million euros

from the figure recorded at year-end 2019. Excluding the effect of IFRS 16, net debt would have been 1,465.9 million

euros, 4.8 million euros below the figure at the end of 2019. Such changes are positively influenced by the generation

of operating cash flow and:

− Pulp and paper: +84.2 million euros, including investments of about 22.7 million euros and distribution of 99.1

million euros in reserves.

− Cement: -25.7 million euros, including investments of approximately 8.9 million, the result of sale of financial

investments of 9.5 million euros and also the positive effect of the exchange rate depreciation of the BRL (24.1

million euros);

− Environment: -1.5 million euros, in spite of the difficulty in collecting the amounts billed to the Government; and,

− Holdings: -61.8 million euros, resulting namely from reserves received from Navigator (69.4 million euros).

At the end of the first quarter of 2020, total consolidated cash amounted to 685 million euros, in addition to 380

million euros in contracted and undrawn credit facilities for the Group, thus ensuring strong liquidity in this uncertain

moment. At present, the liquidity position is comfortable and robust, as it is sufficient to meet maturities over the

next 12 months. In addition, companies have concluded or are in the process of concluding additional financing

contracts that allow them to extend the maturity of their debt and reinforce the Group position in case of more

aggressive stress scenarios.

715.3 799.5 848.0

84.2

358.0 332.4 356.2

-25.7

5.7 4.2 6.3

-1.5

391.7 329.9 330.1

-61.8

1,470.7 1,465.91,540.7

-4.8

31/12/19 31/03/20 Net Debt + IFRS 16

Mill

ion

euro

s


Page 5

NET PROFIT Net profit attributable to Semapa shareholders increased from 12.0 million euros to 17.2 million euros compared to

the fourth quarter of 2019, 22.5 million euros less year-on-year, due essentially to the combined effect of the

following factors:

− Around 13.4 million reduction in total EBITDA; the positive evolution in EBITDA from the Cement and

Environment segments was not sufficient to compensate for the reduction in Navigator. This evolution resulted

from the significant drop in pulp and paper prices in the course of 2019, despite the positive volume and costs

performance.

− An increase in depreciation, amortisation, impairment losses and provisions of 1.7 million euros arising from year

on year increase in net provision;

− Deterioration of net financial results by 16.8 million euros vis-a-vis the same period of the previous year, as a

result of the combined effect of a positive change in the net financing cost and a very unfavourable change (21.0

million euros) in exchange rate differences, mainly due to the depreciation of the BRL against the Euro, of

accounts receivable and payable in foreign currency for Secil intra-group loans;

− Decrease of about 2.6 million euros in income taxes.


Page 6

2. COVID-19

Since the beginning of this period of exception, the priority of the Semapa Group has been to defend the health and

well-being of all employees and the community in general while ensuring operational continuity. The rapid

implementation of prevention, sanitisation and strong containment measures has allowed operations to proceed

within a certain normality and without disrupting service to customers, with the exception of geographies where it

was not legally possible to keep operations running. The Covid-19 pandemic impacted the Group’s operations in

general terms, with special emphasis on the Pulp and Paper segment. Consequently, results in the first quarter of

2020 reflect such impact, albeit only lightly.

The following were some of the impacts on the different business segments:

− Pulp and Paper: the unprecedented drop in orders, experienced as from the end of March, forced Navigator to

partially and temporarily suspend paper production as from 22 April, for a period initially estimated at around 30

days, affecting between 700 tonnes and 2,000 tonnes. Paper production was partially suspended in a context of

an economic slowdown which led paper manufacturers on every continent in the world to shut down production.

Thanks to its excellent position in the order book in March, Navigator was able to postpone this decision as far as

possible, and this adjustment enabled it to balance supply and demand better, minimizing the risk of stock

accumulation in the supply chain. At this time, considering the signs currently visible in relation to paper orders,

Navigator has decided to extend the cut in production until the end of June. Navigator has also decided to apply

the simplified partial lay-off measure in the form of temporary suspension of employment contracts or reduction

in worktime, provided for in subparagraph (a) of article no. 4 of Decree-Law no. 10-G/2020 of 26th March.

Approximately 1,201 workers will be impacted by these lay-off measures, 97 of which will be in full lay-off, with

impacts as of 1 June. In term of full-time equivalent (FTE), this represents less than 12.6% of the total numbers of

workers within the segment. It is noted that Navigator will maintain the full remuneration of these workers,

excluding the components associated to the actual provision of work.

In order to ensure operational normality and stability in stock levels, adjustments have been made to the pace of

production at the mills producing pulp integrated into UWF paper, rather than to shut them down, and also to

alter and shorten the maintenance shutdowns planned for the second quarter. The tissue plants in Aveiro and Vila

Velha de Rodão continued to function with no restriction on their operations.

− Cement and Other Building Materials: The impact of the Covid-19 pandemic was small in the first quarter, and

only affected sales volumes from the last two weeks of March.

When the State of Emergency was declared in Portugal on 18 March, the effects of the pandemic were felt only

slightly, and regular operations were ensured in practically all facilities. Sales volumes from operations on

mainland Portugal were generally down from the average in the first quarter of the year. However, they dropped

less than initially expected, due to the fact that construction activity continued at a pace close to normal.


Page 7

In Brazil, the authorities' management of the pandemic crisis has not been consensual as to the measures to be

implemented to contain the spread, with each state implementing different measures. The states of Santa

Catarina and Paraná declared State of Emergency and closed all trade on 18 and 19 March, respectively, and on

20 March the State of Public Disaster was announced. Concrete activity was shut down by government order in

these states and resumed on 2 April. The cement activity was not interrupted, and has not suffered significant

impacts to date.

In Lebanon, the effects of the pandemic were felt sharply from mid-March onwards due to the restrictions

imposed by the authorities. Given stock levels, clinker production was suspended between 16 April and 5 May,

keeping the dispatch of the finished product limited. Production was resumed in May, in view of the local market,

but also the export market.

In Tunisia, the measures adopted by the government to contain the spread of the pandemic - curfews from 17

March and a nationwide declaration of quarantine on 20 March - had a very significant impact on Secil's

operations in that country, which were interrupted from 24 March to 27 April, when they were resumed but with

restrictions.

− Environment: Five companies of the ETSA Group were declared Public Interest Entities, which did not suspend

production nor service delivery, nor do they expect to be hit hard by the crisis.

In this context, the Semapa Group implemented rapid containment measures proactively to protect the resilience of

all business segments. Fixed and variable costs were reduced, working capital was carefully managed and the

investment plan for 2020 was significantly reviewed. Measures were also adopted to increase short-term liquidity and

negotiation of credit facilities to extend their maturity.

In parallel, the Semapa Group implemented several Community support measures, including:

− Digital radiology equipment co-donated by Navigator to the Figueira da Foz hospital and recurrent donations of a

variety of protective material to the Setúbal and Aveiro hospitals;

− Masks and protective clothing donated by Secil to the Hospital Center of Setúbal (S. Bernardo Hospital and

Santiago do Outão Orthopaedic Hospital) and to the Voluntary Firefighters of Setúbal. Additionally, Secil decided

to process in advance the payment of the annual donations it has made since 2003 to around 80 associations of

the municipality of Setúbal. This includes the Parish Council of Maceira in Leiria, with whom Secil has maintained,

for many years, a collaboration and financing protocol;

− Support granted by Semapa to projects developed by the João Lobo Antunes Institute of Molecular Medicine

(iMM) for the fight against Covid-19. This aid granted includes the purchase of equipment, material and

resources, first to improve the installed capacity to carry out diagnostic tests, and then to develop the scientific

projects that will enhance the knowledge of this disease and help to anticipate new waves of the epidemic.


Page 8

3. PERFORMANCE OF SEMAPA SHARES ON THE STOCK EXCHANGE

In the first quarter of 2020, as Covid-19 spread worldwide, evolving from a distant threat to a public health

emergency, most countries adopted strong containment measures aimed at slowing the spread of the virus and

reduce pressure on the national health systems. This resulted inevitably in a sharp slowdown in economic activity and

a global shock of enormous magnitude which is still hard to quantify.

The major central banks reacted swiftly and strongly to provide plenty of liquidity and easy access to credit with low

interest rates, in order to alleviate the risks to global financial stability arising from the pandemic.

Against this background of high uncertainty, stock markets have suffered an unprecedented collapse. The world's

major stock exchanges have been falling since mid-February to their lowest levels in many years. At the end of the first

quarter, the main benchmark indexes have accumulated losses of almost 30%, in the USA and Europe alike. The

nervousness of investors was evident in the course of the quarter, with some sessions recording the highest volatilities

of recent decades.

In this context, the value of Semapa shares in the period depreciated 43.5%, alongside the weak performance on the

PSI20 (-22.0%) and the EFB (-25.2%) indexes, mostly driven by the performance of Navigator share price, that in turn

was in line with the stock market evolution of the Pulp and Paper sector globally, in the crisis context. Semapa shares

recorded their lowest value of 7.08 euros on 19 March, trading at their highest value of 13.86 euros on the first

trading day of 2020.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

15.00

Dec-19 Jan-20 Feb-20 Mar-20

103,918Average daily volume

Share price02-01: eur 13.86

31-03: eur 7.75

Var. Period Semapa-43.5%

Max = 02-01: eur 13.86

Min = 19-03: eur 7.08

Share price Volume


Page 9

EFB – Euronext Family Business Index

Note: Closing prices

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

110.00

Dec-19 Jan-20 Feb-20 Mar-20

Basi

s 10

0: 3

1/12

/201

9

Var. Period Semapa

Var. Period PSI20-22.0%

-43.5%

Var. Period EFB-25.2%


Page 10

4. PERFORMANCE OF BUSINESS SEGMENTS

BREAKDOWN BY BUSINESS SEGMENTS

Notes:

• For the purpose of calculating the change in net debt the values of 31.12.2019 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 20 May 2020, 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.

IFRS - accrued amounts (million euros) Pulp and Paper Cement Environment Holdings Consolidated

Q1 2020 20/19 Q1 2020 20/19 Q1 2020 20/19 Q1 2020 20/19 Q1 2020

Revenue 405.8 -3.8% 109.9 -11.1% 8.4 41.9% - - 524.0

EBITDA 88.4 -15.7% 28.5 7.6% 2.7 112.6% (0.4) <-1000% 119.1EBITDA margin (%) 21.8% -3.1 p.p. 25.9% 4.5 p.p. 31.7% 10.5 p.p. 22.7%

Depreciation, amortisation and impairment losses (42.0) -1.9% (14.2) 9.7% (0.8) -2.0% (0.1) -26.1% (57.1)Provisions (1.9) -46.0% (0.4) -132.0% - - - - (2.3)

EBIT 44.5 -28.7% 13.8 14.3% 1.9 277.7% (0.5) -412.4% 59.7EBIT margin (%) 11.0% -3.8 p.p. 12.6% 2.8 p.p. 22.6% 14.1 p.p. 11.4%

Net f inancial results (6.2) -56.5% (17.4) -943.7% (0.1) 23.8% (2.4) 32.5% (26.0)

Profit before taxes 38.3 -34.4% (3.6) -134.2% 1.8 336.5% (2.9) 19.9% 33.7

Income taxes (10.5) 12.1% (0.3) 46.9% (0.4) -839.6% 1.7 353.3% (9.5)

Net profit for the period 27.9 -40.1% (3.9) -139.6% 1.4 198.5% (1.2) 62.7% 24.2Attributable to Semapa shareholders 19.5 -39.7% (2.5) -124.4% 1.4 198.5% (1.2) 62.7% 17.2Attributable to non-controlling interests (NCI) 8.4 -41.0% (1.4) -358.1% 0.0 200.8% - - 6.9

Cash f low 71.8 -19.4% 10.7 -55.6% 2.2 78.4% (1.1) 64.8% 83.6

Interest-bearing net debt 799.5 332.4 4.2 329.9 1,465.9

Lease liabilities (IFRS 16) 48.5 23.9 2.1 0.3 74.8

Total 848.0 356.2 6.3 330.1 1,540.7


Page 11

PULP AND PAPER

HIGHLIGHTS IN FIRST QUARTER OF 2020 (VS. 2019)

• Revenue amounted to 405.8 million

euros, 3.8% less than the same

period in the previous year, as a

result of the drop in pulp and paper

prices year on year.

Revenue

REVENUE BREAKDOWN BY SEGMENT:

77%

% o

f con

solid

ated

tota

l

Revenue Q1 2020

74%

% o

f con

solid

ated

tota

l

EBITDA Q1 2020

Q1 2019 Q1 2020

421.8 405.8-3.8%

Mill

ion

Euro

s

405.8

293.434.8

36.240.2 1.0

UWF Paper BEKP Pulp Tissue Energy Others andeliminations

Q1 2020

300.2 39.8 33.1 4.5 421.844.3

-2.3% -76.7%-9.2%+9.5%-12.3% -3.8%

Mill

ion

Euro

s

Δ% 20/19

Q1 2019


Page 12

• EBITDA of 88.4 million euros, -15.7% below

EBITDA in Q1 2019.

EBITDA

SUMMARY TABLE OF FINANCIAL INDICATORS

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

Q1 2019 Q1 2020

104.988.4

-15.7%

24.9% 21.8%

Mill

ion

Euro

s

IFRS - accrued amounts (million euros)Q1 2020 Q1 2019 Var.

Revenue 405.8 421.8 -3.8%

EBITDA 88.4 104.9 -15.7%EBITDA margin (%) 21.8% 24.9% -3.1 p.p.

Depreciation, amortisation and impairment losses (42.0) (41.2) -1.9%Provisions (1.9) (1.3) -46.0%

EBIT 44.5 62.3 -28.7%EBIT margin (%) 11.0% 14.8% -3.8 p.p.

Net f inancial results (6.2) (3.9) -56.5%

Profit before taxes 38.3 58.4 -34.4%

Income taxes (10.5) (11.9) 12.1%

Net profit for the period 27.9 46.5 -40.1%Attributable to Navigator shareholders 27.8 46.5 -40.1%Attributable to non-controlling interests (NCI) 0.0 (0.0) 236.3%

Cash Flow 71.8 89.0 -19.4%

31/03/2020 31/12/2019

Equity (before NCI) 832.0 818.9

Interest-bearing net debt 799.5 715.3

Lease liabilities (IFRS 16) 48.5 46.8

Total 848.0 762.1

EBITDA Mg


Page 13

In the first quarter of 2020, Navigator revenue totalled 406 million euros, paper sales accounting for around 72% of

the revenue, energy sales 10%, pulp and tissue sales both around 9%. The quarter was marked by a significant

improvement in the operational performance of the mills and a very significant recovery of the paper order book. The

decrease in pulp and paper prices in the first quarter of 2020, compared to the first quarter of 2019 when prices were

at very high levels, was partially mitigated by the recovery of sales volumes in the pulp, paper and tissue businesses.

In the paper business, after the distribution chain ended 2019 with very low stock levels, the early months of 2020

saw the reverse phenomenon, as the European industry experienced strong growth in orders. Navigator recorded a

very high level of paper orders in the first quarter, in excess of 50 days, one of the highest ever figures for this period

of the year. In the final fortnight of March, as lockdowns were imposed in most European and Asian countries, the

Company began to receive cancellations and above all postponement of orders by its clients. Despite this, it still ended

the month with an order book of more than 40 days, a level 45% higher than its European counterparts.

YoY performance of sales price reflects the adjustment made in Q2 2019, which continued throughout Q1 2020. The

A4 benchmark adjusted downwards by 5.5% YoY to an average price of 864 EUR/t, compared to 914 EUR/t in the first

quarter of 2019.

In this context, UWF paper sales at Navigator stood around 4% above the volume in the first quarter of 2019. In

geographical terms, sales outside Europe increased considerably by more than 10%. The weight of premium segment

sales was 53% and the weight of sales of own brands rose to 71%. Despite the 4% increase in sales volume, the sales

value of Navigator's UWF business was negatively affected by the fall in price in the period, with sales dropping by

around 2% to 293 million euros. It should be noted that year-on-year comparison of prices is hampered by the fact

that Navigator raised the prices of UWF paper right at the start of 2019, following on from a further four increases

over the course of 2018.

The demand in global pulp market increased by around 13% YTD until the end of February, but fell in the month of

March, and it is estimated that global demand in short fibre will stabilize in the first quarter of 2020 (vs. first quarter of

2019). On the supply side, there were a number of unplanned shutdowns and reductions in output, above all in the

supply of short fibre from Asian producers, as well as a certain reduction in available output of short and long fibre as

a result of the three-week strike by forestry, pulp and paper workers in Finland. In addition, the Covid-19 pandemic

resulted in very significant limitations on logistical operations in China as from the Chinese New Year (25 January),

through to March, severely limiting the dispatch of pulp from ports to mills.

In this context, the price of BHKP pulp in Europe in USD remained stable throughout the quarter, at 680 USD/t, 31.4%

below the price of 991 USD/t registered in the first quarter of 2019. The price of BHKP pulp in Euros fell by about

29.3%, standing at 616 EUR/t in the quarter vs. 872EUR/t, as a consequence of the growing strength of the USD


Page 14

against the Euro. In this period Navigator was able to record a significantly higher volume of pulp sales to the market

than in the same quarter of the previous year (+34%, in tonnes), by recovering sales in Europe and by diversifying sales

to other markets. This increase in sales is in line with expectations given the capacity expansion at the Figueira da Foz

mill and return to good operating performance over the quarter.

However, due to the downward trend in prices, the value of pulp sales was 35 million euro compared to 40 million

euro in the first quarter of 2019.

The tissue business evolved very favourably in the first quarter, with sales in volume nearing 26 thousand tonnes,

which represents an increase of 9.7% over the first quarter of 2019.

Navigator's operations were able to react positively by taking advantage of the opportunity provided by the peak in

demand triggered by Covid-19 for the At Home products. The Aveiro and Vila Velha de Rodão tissue plants operated

without restrictions during the state of emergency, achieving an increase in output, especially on converting lines.

However, it should be noted that higher sales to the At Home segment were offset by developments in the Away from

Home segment, which was affected by the circumstances of Covid-19. These products are largely directed to HORECA

channels (Hotels, Restaurants and Cafés) and to companies, channels largely affected by the lockdown measures

implemented from mid-March onwards.

Consequently, Navigator’s tissue revenue grew around 10%. The sales mix improved in relation to the same period in

the previous year as a result of the increase in the weight of finished products to 86% (vs. 74% in 2019), to the

detriment of the weight of reels.

In the first quarter, energy sales decreased around 9%. This decrease is mainly due to the lower volume of power sales

to the grid, impacted by a breakdown in the steam turbine of the combined-cycle natural gas plant in Setubal, as well

as the reduction in the sales price arising from lower Brent value in 2020, which impacts the tariff formula.

All other energy assets continued to operate at a normal pace and were not impacted by the Covid-19 in the first

quarter. During the period, power was also purchased in futures markets aimed at ensuring competitive supply prices

in the year 2021.

In this context, the quarter’s EBITDA dropped 15.7% year on year to 88.4 million euros, in a context of strong decrease

in the pulp price index of (-31%) and lower paper price index (-5.5%). EBITDA margin was 21.8%, 3.1 pp below the

margin in the first quarter of 2019, but considerably above the margin recorded at the end of 2019.

The quarter was marked by the positive evolution of most variable and fixed production expenses. In terms of the

improvement in variable costs, the main improvement factors occurred in the cost of external fibres (due to the


Page 15

variation in the price of long and short fibre and the lower specific consumption), in the cost of wood (namely due to

the lower specific consumption in the period), and the lower costs of chemicals, mainly due to the reduction in the

price of some chemicals and lower consumption in bleaching.

Fixed costs for the quarter were around 6 million euros, below the costs in the first quarter of 2019. Operating costs

were marked by positive variation (particularly in corporate costs, in line with the cost reduction plan announced last

year), in payroll costs (with a reduction in the value of bonuses and in the headcount), as well as lower maintenance

costs, which were positively influenced by the postponement of maintenance shutdowns at the Figueira da Foz and

Setúbal pulp mills (in the first quarter of 2019).

In Q1 2020, financial costs amounted to 6.2 million euros (vs. 3.9 million euros), 2.2 million euro more mainly due to

the change in interest earned on financial investments, hit by the impact of Covid-19 on the performance of financial

markets in March (in the first two months of 2020 the evolution had been neutral). Conversely, currency hedges and

exchange rate variations had a clearly positive result.

Net income attributable to Navigator shareholders in the first quarter of 2020 totalled 27.8 million euros vis-à-vis 46.5

million euros over the same period in the previous year.

In the first quarter of 2020, Navigator recorded an investment of 22.7 million euros, compared with 32.5 million euros

in the first quarter of the previous year. The value includes around 13.7 million euros in maintenance, efficiency

improvements and others, 6.6 million euros in asset reconditioning projects and around 2.4 million euros in

environmental projects, namely the new biomass boiler in Figueira da Foz.


Page 16

CEMENT AND OTHER BUILDING MATERIALS


Overall, this segment, despite the revenue reduction, had a positive operation evolution, compared with Q1 2019,

reflected in the EBITDA growth. It should be emphasized the performance of Portugal and Tunisia, although in the

latter there was a significant market downturn. Lebanon continued to face relevant challenges arising from the

political and economic situation. The depreciation of the BRL impacted significantly the financial results.

• Secil's revenue in Q1 2020 amounted to 110.0

million euros, 11.0% less than that in the same

period of the previous year. The positive

change in quantities sold in Portugal was not

sufficient to offset the effects of less quantities

sold in Lebanon and Tunisia, the exchange rate

depreciation in Brazil and the reduction in

exports in Portugal.

• The Covid-19 pandemic had a reduced impact

in the first quarter, and only affected sales

volumes from the last two weeks of March.

Revenue

21%

% o

f con

solid

ated

tota

l

Revenue Q1 2020

24%

% o

f con

solid

ated

tota

l

EBITDA Q1 2020

Q1 2019 Q1 2020

123.6110.0

-11.0%

Mill

ion

Euro

s


Page 17

REVENUE BREAKDOWN BY COUNTRY:

Note: Others includes Angola and Others

• Nonetheless, consolidated EBITDA reached

28.5 million euros, 7.6% higher than in the

same period last year, due to the increase in

Portugal and Tunisia. Positive operational

performance also in Brazil, excluding the non-

recurrent tax effect occurred in the Q1 2019.

EBITDA

EBITDA BREAKDOWN BY COUNTRY:

Note: Others includes Angola and Others

110.0

70.918.1

7.312.6 1.1

Portugal Brazil Lebanon Tunisia Others Q1 2020

75.3 19.8 13.4 2.8 123.612.4

-5.8% -60.3%+1.8%-45.5%-8.5% -11.0%

Mill

ion

Euro

s

Δ% 20/19

Q1 2019

Q1 2019 Q1 2020

26.528.5

7.6%

21.4% 25.9%

Mill

ion

Euro

s

28.5-0.4

21.53.0 0.9

3.6

Portugal Brazil Lebanon Tunisia Others Q1 2020

16.5 5.1 2.4 0.1 26.52.4

+30.6% -494%+50.4%-62.9%-42.0% +7.6%

Mill

ion

Euro

s

Δ% 20/19

Q1 2019

EBITDA Mg


Page 18

• Secil's net financial income deteriorated from the same period in the previous year, from -1.7 million euros to

-17.4 million euros. The negative difference resulted from the combined effect of a favourable deviation in

the net financing cost and a very unfavourable deviation (25 million euros) in exchange rate differences,

mainly due to the depreciation of the BRL, of accounts receivable and payable in foreign currency for intra-

group loans.


Note: Figures for business segment indicators may differ from those presented individually by each Group, as a result of consolidation adjustments. Revenue in 2019

and 2020 includes intra-group sales and may differ from those presented by each segment.


Revenue 110.0 123.6 -11.0%

EBITDA 28.5 26.5 7.6%EBITDA Margin (%) 25.9% 21.4% 4.5 p.p.

Depreciation, amortisation and impairment losses (14.2) (15.7) 9.7%Provisions (0.4) 1.4 -132.0%

EBIT 13.8 12.1 14.3%EBIT Margin (%) 12.6% 9.8% 2.8 p.p.

Net f inancial results (17.4) (1.7) -943.7%

Profit before taxes (3.6) 10.4 -134.2%

Income taxes (0.3) (0.6) 46.9%

Net profit for the period (3.9) 9.8 -139.6%Attributable to Secil shareholders (2.5) 10.1 -124.4%Attributable to non-controlling interests (NCI) (1.4) (0.3) -357.8%

Cash flow 10.7 24.2 -55.6%

31/03/2020 31/12/2019




Total 356.2 384.4


Page 19

PORTUGAL

Revenue EBITDA

The consumption of cement in Portugal in Q1 2020 was marked by positive monthly variations over the three months,

in line with the dynamics of the construction sector. It is estimated that the domestic cement market grew

approximately 6% year on year.

Revenue for overall operations in Portugal was down by 5.8% compared to the same period in 2019, totalling 70.9

million euros.

Revenue in the Cement and Clinker business unit in Portugal decreased around 6.7 million euros from the same period

in the previous year, due to less sales to the external market. The surplus supply in Europe, the Mediterranean and

West Africa continued to drive strong competition. In this context, total export revenue decreased approximately

40.3%. The change was due to the 61.2% drop in cement and clinker sales.

In the other business units with operations based in Portugal (Ready-mix concrete, Aggregates, Mortars and Precast),

revenue in the first quarter of 2020 amounted to 33.5 million euros, up by 7.3% year on year.

The increase took place in almost all areas of building materials, benefiting from greater building dynamics, although it

was higher in the Concrete business unit with 2.3% more sales volume.

The effects of the Covid-19 pandemic were felt only slightly from the second half of March onwards, and operations

were ensured in practically all facilities.

EBITDA of total operations in Portugal increased by 30.6%, standing at 21.5 million euros vs. 16.5 million euros

recorded for the same period in the previous year.

Q1 2019 Q1 2020

75.3 70.9-5.8%

Mill

ion

Euro

s

Q1 2019 Q1 2020

16.5 21.530.6%

21.9% 30.3%

Mill

ion

Euro

s

EBITDA Mg


Page 20

The Cement business unit had an EBITDA of 16.5 million euros, i.e. 34.7% more than in the same period in 2019. The

increase in volumes sold on the domestic market, the rise in average prices, the reduction in variable costs, namely

energy costs and capital gains obtained from the sale of financial investments (+ 5 million euros) contributed positively

to this variation. On the other hand, the sale of surplus CO2 licenses amounted to 2.5 million euros less than sales year

on year.

The EBITDA of the building material business units amounted to 5.0 million euros, which compared to 4.2 million

euros in the same period in 2019 results in an increase of 18.4%. This variation was the result of the increase in

revenue, despite the rise in variable production costs due to lower availability of ashes in the Concrete segment, and

also the recording of capital gains on the sale of fixed assets (land) in the Pre-cast and Aggregates segment, which

together represented 1.2 million euros.

BRAZIL

Revenue EBITDA

Considering the relevant Brazilian market, it is estimated that cement consumption in the first quarter of 2020 held

steady in relation to the same period in 2019, thus contradicting (pre-Covid-19) expectations that pointed to market

growth of around 3%.

Revenue of combined operations in the country stood at 18.1 million euros in Q1 2020, 8.5% down on revenue

recorded in the same period in 2019. However, discounting the effect of the exchange rate devaluation of the Real

against the Euro, with a negative impact of around 2.7 million euros, revenue would have been higher by 1 million

euros (+5%).

Quantities of Cement sold increased by 4.6% in comparison with the same period in the previous year, with average

sales prices in local currency rising by around 5%.

Q1 2019 Q1 2020

19.818.1-8.5%

Mill

ion

Euro

s

Q1 2019 Q1 2020

5.13.0

-42.0%

25.7% 16.3%

Mill

ion

Euro

s

EBITDA Mg


Page 21

The EBITDA of activities in Brazil totalled 3.0 million euros, which compares with the 5.1 million euros recorded year

on year (i.e. 42.0% decrease). It should be noted that EBITDA for the first quarter of 2019 included a gain of 3.4 million

euros from expected sales tax refunds. Excluding this effect, and the unfavourable exchange rate effect (-0.4 million

euros), EBITDA would have increased, reflecting the good performance of commercial activity and the reduction in

production costs.

LEBANON

Revenue EBITDA

Since the beginning of 2020, political forces have made an effort to ensure social, political and economic-financial

stability, which Lebanon plunged in the last quarter of 2019.

In this context, cement consumption was expected to continue to decrease. However, the magnitude of the reduction

exceeded all expectations. Cement consumption in Q1 2020 is indeed expected to have dropped 55% in relation to the

same period in 2019, which had already dropped 35% vis-à-vis 2018.

Consequently, the revenue of all operations in Lebanon fell by 45.5% to 7.3 million euros, compared to 13.4 million

euros in the same period last year. The exchange rate effect was positive, but not significant standing at about 0.2

million euros.

Cement volumes sold decreased by 50.8% in comparison with the same period in the previous year, with a small rise

in average sales prices. Consequently, revenue decreased approximately 49.3%.

Concrete revenue dropped only 1.7% compared with the same period in 2018, to 1.1 million euros, as a result of the

decrease of 13.1% in quantities sold, partly offset by 10% increase in average sales prices.

Q1 2019 Q1 2020

13.4

7.3

-45.5%

Mill

ion

Euro

s

Q1 2019 Q1 2020

2.40.9

-62.9%

18.1% 12.3%

Mill

ion

Euro

s

EBITDA Mg


Page 22

The effects of the pandemic were felt sharply from mid-March onwards due to the restrictions imposed by the

authorities. Although under great pressure, the plant continued to operate with only 50% of employees.

EBITDA from operations in Lebanon stood at 902 thousand euros, down by 62.9% in relation to the same period in the

previous year, originating mostly in the Cement unit. This performance is principally a result of the drop in quantities

sold, being partially compensated for by control measures of fixed and variable costs.

TUNISIA

Revenue EBITDA

In Tunisia, it is estimated that the domestic cement market in the first quarter of 2020 was down by approximately

20% year on year. The cement market is still subject to strong competition, due to excess installed capacity. However,

in 2020 sales prices increased, driven by the overall increase in the purchase prices of relevant materials with a

significant weight in the cost structure of cement producers.

On the cement export market, it was possible to increase substantially the quantities sold.

Revenue for total operations in Tunisia was up, year-on-year, by 1.8%, at 12.6 million euros. This benefitted from the

positive effect of the appreciation of the Tunisian Dinar against the Euro of 1.2 million euros.

Revenue of the Cement and Clinker business grew slightly around 1.4%, amounting to 11.2 million euros, driven by the

increase in cement and clinker sales to the foreign market, which practically doubled (+43 thousand tonnes), since in

the internal market, the positive variation in average sales prices (+15%) was not enough to offset 33.1% less

quantities sold (- 63 thousand tonnes).

Q1 2019 Q1 2020

12.4 12.61.8%

Mill

ion

Euro

s

Q1 2019 Q1 2020

2.43.650.4%

19.2% 28.4%

Mill

ion

Euro

s

EBITDA Mg


Page 23

Despite the limitations on exports mentioned above, it was possible to increase cement volumes sold and clinker

exports, taking advantage of the existing production capacity. The external market revenue of cement and clinker

together totalled 2.9 million euros, a growth of 112.3%.

Concrete revenue grew 8.2% in relation to the same period of the previous year, due to positive developments in the

average sales price, which more than compensated for the decrease in quantities sold (-12.8%).

In Q1 2020, EBITDA of activities in Tunisia stood at 3.6 million euros, representing an increase of 50% in relation to the

same period in 2019. This rise is justified by the increase in domestic sales prices, the decrease in fixed and variable

costs (mainly due to the reduction in the price of solid fuels) and the appreciation of the Tunisian Dinar against the

Euro which resulted in an impact of 340 thousand euros.

ANGOLA AND OTHERS According to the latest figures available, the Angolan cement market was up by 5% compared to the same period in

2020.

In spite of the positive market performance, the quantities of cement sold by Secil decreased 46.3% compared to the

same period in 2019. In a context of strong inflation and significant depreciation of the Kwanza vis-à-vis the Euro, Secil

Lobito has been implementing a strict price policy that can help it tackle significant increase in costs in the local

currency and those arising from necessary imports. Under these conditions, the price of cement increased by about

18% year on year, partially offsetting the fall in quantities sold.

Consequently, revenue totalled 1.1 million euros, i.e. 60.3% below that which was recorded in the same period in the

previous year, being strongly affected by the currency depreciation, which produced a negative effect of 632 thousand

euros on revenue.

EBITDA in Q1 2020 amounted to a negative figure of 430 thousand euros, in contrast with the positive 109 thousand

euros obtained over the same period in the previous year.

Cost was well managed by keeping variable unit cost with the 1% increase only, mostly due to the lower clinker

acquisition price (-13%). On the other hand, industrial fixed costs decreased 5% year on year which, considering the

inflation in Angola and the acquisition of some conservation materials that are strongly pegged to the exchange rate,

illustrate clearly the unit's efforts to control costs.


Page 24

ENVIRONMENT


• ETSA recorded revenue of around 8.4 million

euros in the period in analysis, which

represented an increase of approximately

41.9% against the same period in 2019. This

variation results from an increase of about

56.4% in sales and around 29.1% in

consolidated services rendered.

Revenue

2%

% o

f con

solid

ated

tota

l

Revenue Q1 2020

2%

% o

f con

solid

ated

tota

l

EBITDA Q1 2020

Q1 2019 Q1 2020

5.9

8.441.9%

Mill

ion

Euro

s


Page 25

• EBITDA totalled approximately 2.7 million euros

in the first three months of 2020, more than

double the amount in the same period of the

previous year, essentially due to a higher

revenue.

EBITDA


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

Q1 2019 Q1 2020

1.3

2.7

112.6%

21.1% 31.7%

Mill

ion

Euro

s


Revenue 8.4 5.9 41.9%

EBITDA 2.7 1.3 112.6%EBITDA margin (%) 31.7% 21.1% 10.5 p.p.

Depreciation, amortisation and impairment losses (0.8) (0.8) -2.0%Provisions - - -

EBIT 1.9 0.5 277.7%EBIT margin (%) 22.6% 8.5% 14.1 p.p.

Net f inancial results (0.1) (0.1) 23.8%

Profit before taxes 1.8 0.4 336.5%

Income taxes (0.4) 0.1 -839.6%

Net profit for the period 1.4 0.5 198.5%Attributable to ETSA shareholders 1.4 0.5 198.5%Attributable to non-controlling interests (NCI) - - -

Cash Flow 2.2 1.2 78.4%

31/03/2020 31/12/2019




Total 6.3 7.4

EBITDA Mg


Page 26

ETSA recorded revenue of around 8.4 million euros in the period in analysis, which represented an increase of

approximately 41.9% against the same period in 2019.

This development was mostly caused by the following combined elements: (i) an increase in volumes sold of class 3

fats by around 6.9% compared with the first quarter in 2019, (ii) an increase in average sales price of class 3 fats and

meal by about 33.8% and 8.4%, respectively in comparison with the first quarter in 2019, and iii) an increase of about

29,1% in consolidated services rendered, essentially due to the increase in the collection of Class 1 and 2 by-products

from slaughterhouses, increase in the volumes of animal carcasses collected under the SIRCA service and growing

wholesale collection activity.

EBITDA totalled approximately 2.7 million euros in the first three months of 2020, more than double the amount in

the same period of the previous year, essentially due to a higher revenue mentioned, and costs evolved as a function

of their variability in relation to y-o-y revenue. The EBITDA margin stood at 31.7%, up by around 10.5 p.p. over the

margin for the same period of 2019.

Financial results improved by about 23.8% in relation to the same period in the previous year, mostly due to the

reduction in average debt.

The combined impact of these factors resulted in a Net Profit attributable to ETSA shareholders in Q1 2020 of

approximately 1.4 million euros, up by around 198.5% year on year.

VENTURE CAPITAL In the first quarter, Semapa Next, in partnership with Techstars, started the second acceleration programme of 10

startups, which is programmed to end in May. The selected startups are from Portugal, the USA, France, Australia and

Israel, operating in Industry, the Environment, Logistics, Tourism and Leisure.


Page 27

5. OUTLOOK

After the outbreak of Covid-19 at year end 2019 in China, following the declaration of an international public health

emergency on 30 January 2020, the World Health Organization (WHO) announced on 11 March the new coronavirus

outbreak a pandemic and the global socio-economic outlook changed radically. Considering the unknown duration of

the pandemic, the containment measures implemented by the countries and their consequences, there is an

unprecedented factor of uncertainty regarding the performance of businesses in 2020. Estimates of future impacts are

highly dependent on the duration of the containment measures and the way in which economic activity will resume.

As such, it is difficult to provide a reliable quantification of the financial impacts for the Semapa Group.

PULP AND PAPER Since the beginning of the Covid-19 pandemic, Navigator has implemented models to monitor and forecast the likely

impacts on its core business. So far, the volume sold is in line with the projections initially made in March. The volume

of UWF paper sales in April decreased by 22% compared to the same month in the previous year, while the drop over

the first four months of the previous year is only 2%.

Demand for printing and writing paper is strongly affected in the current context of social standstill, particularly with

schools, shops and offices closed. Nevertheless, UWF paper, with greater versatility in terms of its end uses, is still

more resilient when compared to other printing and writing paper. Preliminary data for April show that demand for

UWF is less affected than demand for other types of graphic paper. YoY percentage decrease in domestic sales of

European producers in Uncoated Woodfree has been around half of that for Coated Woodfree.

The dynamics of the UWF market in the near future depends, as most economic sectors, on the success of the

reopening of the economy, which is believed to be happening gradually alongside plans for ending lockdowns and a

return to normality, to the extent possible.

The demand for office paper will benefit, in particular, from the reopening of schools and universities, the return of

workers on telework to their offices and the resurgence of the service sector. From another perspective, the demand

for folio paper and reels will depend on the rebound of the publishing and advertising sectors.

Thus, demand is expected to fall most significantly in the second quarter, particularly in key markets in Europe and the

United States, and a gradual recovery is then anticipated until the end of the year.

Navigator expects to slightly increase its pulp sales to the market, namely in the second quarter, in line with its

budget. The expansion of the capacity of the Figueira da Foz mill implemented in 2018, combined with the reduced

need for integration into paper and the current drying capacity, allows some pulp capacity to be marketed, in addition

to sales from the Aveiro mill.


Page 28

The Covid-19 virus had a positive effect on Tissue sales in the first quarter, and business is expected to grow in the

coming months in line with Navigator's budget, although a slight reduction in market demand is expected in line with

the slowdown in economic activity, in particular tourism. As foreseen, the tissue business should be positively

impacted by the growth in production and sales, and by a more efficient cost structure combined with the effect of

economies of scale.

However, it should be noted that in the second quarter Navigator's sales may be constrained by the announcement of

reductions in credit insurance coverage ceilings of important Navigator customers in the paper, pulp and tissue

business units. National government support to the opening of credit lines for boosting exports is eagerly awaited, as

other EU countries, i.e. Germany and France, have done to defend their exporting companies.

In the current situation, Navigator decided to review its capex plans for 2020, with a budget appropriation of 158

million euros. This figure, which included environmental investments, major repairs and other investments to restore

the condition of assets, in addition to an amount for maintenance capex and efficiency improvements, will be

significantly reduced by some 88 million euros to 70 million euros and the payment conditions will be renegotiated.

Additionally, maintaining the focus on boosting business in these particularly challenging times, all areas of Navigator

shall pursue the pressing imperative of optimising costs, as a way to preserve the Group's sustainability in the very

short and long term.

CEMENT AND OTHER BUILDING MATERIALS In the countries where Secil operates, the construction activity was one of the less affected by the pandemic, with the

exception of Tunisia. It should be noted that the global nature of this crisis might impact Secil’s results, including from

foreign exchange effects.

In Portugal, sales volumes from operations were generally down from the average in the first quarter of the year.

However, they dropped less than was initially expected, due to the fact that construction activity continued at a pace

close to normal. This allows us to conclude that in the short term, there will be no significant change in the pace, with

work in progress expected to be completed.

The Bank of Portugal (Economic Bulletin - March 2020) projected two scenarios for the performance of the

Portuguese economy, both containing a high degree of uncertainty as a consequence of the Covid-19 pandemic.

Both scenarios predict an economic recession. The - more optimistic - base scenario hints at a fall in real GDP of 3.7%

in 2020, and a contraction of economic activity half way in the year, featuring a sharp decline in the second quarter,

although a gradual upturn is expected at the end of the year only. The adverse scenario assumes that the pandemic


Page 29

hits the global economy harder, which will cause a deeper recession of the Portuguese economy, and a reduction of

GDP of 5.7%.

According to the latest IMF estimates (World Economic Outlook, IMF April 2020) the scenario for the Portuguese

economy is even more aggressive, forecasting a contraction of around 8%, followed by GDP growth of 5.0% in 2021.

The unemployment rate of Portugal is expected to rise to 13.9% in 2020 and 8.7% in 2021. Projected levels of inflation

are -0.2% and 1.4% in 2020 and 2021, respectively.

The effects of the pandemic were felt when the State of Emergency was declared in Portugal on 18 March. In spite of

everything, practically all facilities continued to function normally, with the exception of those located in Madeira,

where the building activity was put on hold, in Cape Verde and in Spain, by government order. Meanwhile, the

terminal in Vigo resumed its activities on 13 April, and operations in Madeira resumed on 20 April.

According to the latest IMF estimates (World Economic Outlook, IMF April 2020), the outlook for Brazil in 2020

foresees a decrease of 5.3% in the GDP, followed by 2.9% increase in 2021.

The management of the pandemic crisis by the authorities of Brazil has not been consensual as to the measures to be

implemented to contain the spread, with each state implementing different measures, which has been cause for some

political instability.

The states of Santa Catarina and Paraná declared State of Emergency and closed all trade on 18 and 19 March, and on

20 March the State of Public Disaster was declared. Concrete activity was shut down by government order in these

states and resumed on 2 April. Cement activity was not interrupted. Revenue fell more sharply in the week after the

Government announced the State of Public Disaster, but subsequently picked up to average, pre-pandemic levels, also

benefiting from the closure of other operators' facilities.

Recently, the Brazilian Government announced the "Pró-Brasil” programme to help the country recover its social-

economic situation in the light of the effects of the pandemic. The programme provides measures for job creation and

is sustained by the resumption of public works supported by the Brazilian State Treasury. However, it is still very

difficult to predict the magnitude of the impacts of the current crisis.

In Lebanon, the political and economic environment has faced much uncertainty since the last quarter of 2019. Since

the beginning of 2020 political forces have made an effort to ensure social, political and economic-financial stability in

the country. However, the outbreak of the Covid-19 virus raises fears of deterioration of the situation.

According to the latest IMF estimates (World Economic Outlook, IMF April 2020) the scenario for the Lebanese

economy is recession with a 12% drop in the GDP.


Page 30

The effects of the pandemic were felt sharply from mid-March onwards due to the restrictions imposed by the

authorities. Given stock levels, clinker production was suspended between 16 April and 5 May, keeping the dispatch of

the finished product limited. Production was resumed in May, in view of the local market, but also the export market.

With regard to Tunisia, the most recent forecasts published by the IMF (World Economic Outlook, IMF April 2020)

estimate that the Tunisian gross domestic product will decrease by 4.3% in 2020, followed by growth of 4.1% in 2021.

Projected levels of inflation are 6.2% and 4.9% in 2020 and 2021, respectively.

Tunisia already found itself in financial hardship and social instability, and the pandemic has increased uncertainty as

to the country’s progress.

The measures adopted by the government to contain the spread of the pandemic - curfews from 17 March and a

nationwide declaration of quarantine on 20 March - had a very significant impact on Secil's operations in that country,

which have been closed since 24 March.

The outlook for Angola (World Economic Outlook, IMF April 2020) hints at a decline in real GDP of 1.4%, followed by a

2.6% increase in 2021. It should be noted that IMF projections in October highlighted 1.2% growth.

Although only small numbers of people have been infected, the government of Angola declared the State of

Emergency on 27 March. The Government ordered the shutdown of cement operations in Lobito from 27 March to 16

April.

Recent developments in the fall in oil prices, as a result of the increase in supply, raise fears as to the magnitude of

these impacts on the Angolan economy.

ENVIRONMENT The crisis caused by the COVID-19 pandemic has significantly altered the economic landscape in Portugal, as in Europe

and the rest of the world, with unpredictable consequences in several markets. However, the information available

suggests that the food market where ETSA operates, given its nature, will be less affected by the health crisis when

compared to other sectors of activity.

However, some effects are expected for the sector arising from, either lower purchase power of the Portuguese

population or expected lower oil prices. The first effect will result in a reduction in the volumes of raw material

collected and consequently in the volumes of finished products sold, while the second effect will impact the operation

of biodiesel plants in Europe and thus the quantities of, both Category 3 and Category 1, fat received.


Page 31

From a time perspective, and given the good market momentum at the time of the outbreak of the pandemic, the

possible negative effects described above are expected to present themselves in the second half of 2020.

The current crisis also presents several short term opportunities that include (i) concentrating on the horizontal

expansion of its production and destination markets (exports accounted for around 45.5% of total sales on 31 March

2020), (ii) identifying new opportunities for vertical growth, channelling its investments to improving operational

efficiency, extracting maximum value from the channels operated and retaining the loyalty of the main conventional

and alternative collection centres, and (iv) focus on sustained innovation and research and development addressed at

ensuring new profit thresholds for the business.

Lisbon, 27 May 2020

The Board of Directors


Page 32

FINANCIAL TIMETABLE

Date Event

31 July 2020 Presentation of Results of the 1st Half of 2020

30 October 2020 Presentation of Results of the 3rd Quarter of 2020

DEFINITIONS EBITDA = EBIT + Depreciation, amortisation and impairment losses + Provisions

EBIT = Operating profit

Operating profit = Earnings before taxes, financial results and results of associates and joint ventures as presented in

the Income Statement in IFRS format

EBITDA LTM = EBITDA in the last twelve months

Cash-flow = Net profit for the period + Depreciation, amortisation and impairment losses + Provisions

Net debt = Non-current interest bearing debt (net of loan issue charges) + Current interest-bearing debt (including

debts to shareholders) – Cash and cash equivalents


Page 33

DISCLAIMER This document contains statements that relate to the future and are subject to risks and uncertainties that can lead to

actual results differing from those provided in these statements. Such risks and uncertainties are due to factors

beyond Semapa's control and predictability, such as macroeconomic conditions, credit markets, currency fluctuations

and legislative and regulatory changes. Statements about the future made in this document concern only the

document and on the date of its publication, therefore Semapa does not assume any obligation to update them.

This presentation of results is a translation of a text originally issued in Portuguese. In the event of discrepancies the

Portuguese language version prevails.

Documents

RESULTS PRESENTATION Q1 2020 · 2020-05-28 · results presentation q1 2020 semapa – sociedade de investimento e gestÃo, sgps, s.a. public limited company av. fontes pereira de