Altri (ALTR) Investor Presentation summary

Company overview

• Leading pure player in sustainable cellulosic fibers, with 100% cellulosic fiber focus and a strong shareholder base.

• Manages 93,000 hectares of certified forest in Portugal, with 10,000 hectares dedicated to conservation.

• Operates three fiber production mills with a combined capacity of over 1.1 million tons per year.

• Products reach over 20 countries across three continents, with Europe as the main BHKP market and China for dissolving pulp.

• Main end-use segments are tissue (49%), printing & writing (22%), and dissolving (12%).

Market environment and industry trends

• Global BHKP demand expected to grow by 0.8M tons/year until 2028, driven by tissue, packaging, and specialties.

• Secular growth drivers include urbanization, aging population, emerging markets, and shift from plastic to fiber.

• Average BHKP price since 2017 is $997/ton, with mid-term forecasts above $1,250/ton.

• Dissolving pulp (DP) maintains a 41% average premium over BHKP, with mid-term premium expected at 45%.

• Higher growth segments like textiles and paper packaging support positive market outlook.

Financial performance

• 9M24 revenues reached €670M (+11% YoY), EBITDA €180M (+85% YoY), and EBITDA margin 26.9% (+10.7 p.p.).

• ROCE averaged 17.5% (2017-9M24), with 9M24 at 23%.

• Dividend yield for 2024 at 5.2%, with a strong track record of shareholder returns.

• Net debt reduced to €250M in 9M24, with 3 years average maturity and 36% fixed rate.

• Cash costs decreased double-digit in 2023 and are expected to decline further in 2024.