Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q3 2024 Earnings Presentation
29 slides from Arctic Paper's earnings presentation, Nov 12, 2024
Slide 1: Financial results Q3 2024
Financial results Q3 2024
Slide 2: Disclaimer
DISCLAIMER Please read the information below carefully This presentation (the ‘Presentation’) the regulated market, in particular the appearance of unexpected facts or is no certainty that the estimates, was prepared by Arctic Paper SA (the regulated market operated by the W arsaw circumstances whic
Slide 3: Agenda
Agenda 1 Paper 4 Energy 2 Pulp 5 Financial performance 3 Packaging 6 Focus 3 Q3 2024 www.arcticpaper.com
Slide 4: Summary Q3 2024
SUMMARY Q3 2024 Arctic Paper Group Q3 2024 vs. Q3 2023 Net sales EBITDA (PLN mn) (PLN mn) 819.3 854.8 77.3 124.5 (Q3 2024) (Q3 2023) (Q3 2024) (Q3 2023) Paper/Pulp EBITDA Net debt/EBITDA* (PLN mn) 46/31 95/30 -0.08x - 0.59x (Q3 2024) (Q3 2023) (EOP Q3 2024) (EOP Q3 2023) * last 12 months 4 Q3 2024 w
Slide 5: Paper
PAPER 5 Q3 2024 www.arcticpaper.com
Slide 6: Market data: fine paper prices
GRAPHIC FINE PAPER PRICES – GERMAN MARKET MARKET DATA Fine paper average market prices 1400 1300 1200 SEP 2024 COMPARED TO JUN 2024 1100 UWF average price change 0,2% 1000 CWF average price change 0,4% 900 800 700 SEP 2024 COMPARED TO SEP 2023 600 UWF average price change 1,0% CWF average price chan
Slide 7: Operating data: production capacity and sales volume
PRODUCTION CAPACITY FOR ARCTIC PAPER MILLS OPERATING DATA 99% 85% 86% 71% 66% 70% 66%70% 55% Average Q3 2024 use of production capacity: 70% 4% HIGHER THAN IN Q3 2023 Q3 2024 total sales volume: 112k tons 4% HIGHER THAN IN Q3 2023 PAPER SALES VOLUME 169 168 166 165 168 144 117 113 114 108 112 108 11
Slide 8: Operating data: paper sales revenue
PAPER SALES REVENUE (PLN mn) OPERATING DATA 1 042 820 722 701 645 590 562 590 562 Total revenue Q3 2024 (PLN 562mn) DECREASED BY 5% COMPARED TO Q3 2023 Average price Q3 2024 (PLN 5.01k) PAPER SALES REVENUE PER TONNE (PLN k)* DECREASED BY 0,5% COMPARED TO AVERAGE IN Q2 2024 6,19 6,39 5,46 4,93 4,87 5
Slide 9: Products
PRODUCTS ADVANCED OFFSET MOST COMPLETE MATT BIGGEST UNCOATED PRODUCTION COATED PAPER ASSORTMENT DESIGN BRAND IN HEART OF EUROPE • Top 3 brands in revenue share • No 1 in European High Quality Bookpaper Sales • No 1 in European Design Paper Sales 9 Q3 2024 www.arcticpaper.com
Slide 10: Products: geographical split of sales
PRODUCTS Geographical split of sales Outside Europe 1% Germany Poland UK & IE Austria & CE France Baltics Rest of Europe 22% 17% 12% 10% 9% 6% 9% The Nordics Benelux 10% 4% 10 Q1 Q3 2023 2024 www.arcticpaper.com www.arcticpaper.com
Slide 11: Client structure
CLIENT STRUCTURE Market segments/products portfolio/target grups BUYING CUSTOMERS Printing Houses Clients who purchase the Group’s paper products directly. NON-BUYING CUSTOMERS Brand Owners Merchants Predominantly indirect customers, who use our Direct customers who purchase, stock and distribute pr
Slide 12: Pulp
PULP 12 Q3 2024 www.arcticpaper.com
Slide 13: Market data: European pulp prices
PULP PIX INDEXES EUROPE (USD PER TONNE) MARKET DATA Pulp – European pulp prices AVERAGE PRICE Q3 2024 COMPARED TO Q3 2023 NBSK (long fiber): 37% higher BHKP (short fiber): 65% higher AVERAGE PRICE Q3 2024 COMPARED TO Q2 2024 NBSK (long fiber): 7% higher BHKP (short fiber): 2% higher Source: Arctic P
Slide 14: Operating data: pulp production and deliveries
PULP PRODUCTION (1,000 TONNE) OPERATING DATA Pulp production & deliveries 111 103 96 93 91 91 91 87 90 89 91 89 84 80 Q3 2024 total production: 91k tons 0,4% LOWER THAN IN Q2 2024 2% HIGHER THAN IN Q3 2023 PULP DELIVERIES (1,000 TONNE) 106 100 102 102 Q3 2024 total deliveries: 82k tons 96 96 90 89 8
Slide 15: Operating data: pulp revenue and prices
PULP SALES REVENUE (SEK mn) OPERATING DATA Revenue and prices 806 744 686 660 693 688 693 686 Total revenue Q3 2024 (SEK 686mn) DECREASED BY 4% COMPARED TO Q2 2024 PULP SALES REVENUE PER TONNE (SEK) Average price in Q3 2024 (SEK 8.4k per tonne) 8 405 8 532 8 356 6 774 7 661 INCREASED BY 4% COMPARED
Slide 16: Pulp: replacement material for plastic
PULP – REPLACEMENT MATERIAL FOR PLASTIC Pulp Sales (Rottneros) by application 2024 Other Printing and writing papers Fiber cement 3% 1% 3% Board Tissue and packaging paper 24% 12% Special applications 13% Filters 23% Electrotechnical applications 21% 16 Q3 2024 www.arcticpaper.com
Slide 17: Packaging
PACKAGING 17 Q3 2024 www.arcticpaper.com
Slide 18: Development: packaging paper sales
PACKAGING PAPER SALES DEVELOPMENT (t) DEVELOPMENT 20 000 PACKAGING PAPERS: 16 000 Munken Kraft Uncoated packaging paper 12 000 G-Flexmatt 8 000 Coated packaging paper 4 000 0 2018 2019 2020 2021 2022 2023 Last 12 months 18 Q3 2024 www.arcticpaper.com
Slide 19: Innovative packaging solutions
INNOVATIVE PACKAGING SOLUTIONS • Production of non-plastics packaging solutions, made of natural material starting at the end of this year. • Based on our 15 years of experience in developing molded fiber technology, we will produce over 80 milion packages per year. 19 Q3 2024 www.arcticpaper.com
Slide 20: Power
POWER 20 Q3 2024 www.arcticpaper.com
Slide 21: Arctic Group energy generation units
ARCTIC GROUP - ENERGY GENERATION UNITS • CHP power plant (Poland) • PV 18 MW (Poland, Sweden) • Thermal waste incineration (Sweden) • Hydroturbines (Sweden) • Biomass boilers (Sweden) 21 Q3 2024 www.arcticpaper.com
Slide 22: Arctic Group ongoing power projects
ARCTIC GROUP - ONGOING POWER PROJECTS • 9,6 MW PV (Poland) • Search for PV projects aquisition (Poland) • Modernisation of biomass boiler (Sweden) • Wood pellet production line (Sweden) • Energy storage systems (Sweden) 22 Q3 2024 www.arcticpaper.com
Slide 23: Financial performance
FINANCIAL PERFORMANCE 23 Q3 2024 www.arcticpaper.com
Slide 24: EBITDA evolution 2017-2024
EBITDA EVOLUTION 2017 – 2024 (PLN mn) Effective hedging of both segments – to stabilize financial results 1 000 900 Q3 2024 EBITDA PLN 77.3mn 800 PLN 7mn HIGHER THAN Q2 2024 700 PLN 47mn LOWER THAN Q3 2023 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 2022 2023 2024* Paper Segment Pulp Segment
Slide 25: Cash flow breakdown Jan-Sep 2024
CASH FLOW BREAKDOWN JAN-SEP 2024 mln PLN 800 -134 260 700 -51 600 -84 Change of WC Corporate -114 500 tax 500 EBITDA Dividend 400 -98 Capex -35 300 Energy -40 Capex Paper Capex 52 254 200 Segment Packaging Capex Financial JV Pulp activity 100 0 Cash at Cash at 31.12.2023 30.09.2024 25 Q3 2024 www.ar
Slide 26: Net debt/EBITDA 2020-2024
NET DEBT/EBITDA 2020 – 2024 0,70 0,48 0,66 0,57 0,49 0,36 0,33 -0,02 -0,08 -0,22 -0,28 -0,27 -0,19 -0,35 -0,59 -0,73 -0,77 * rolling 12 months 26 Q3 2024 www.arcticpaper.com
Slide 27: Sharing our story with you
SHARING OUR STORY WITH YOU HEDGED AGAINST VOLATILITY GROWTH INCREASING SHARE PREDICTABLE CAPEX OF PROFITABILITY IN PACKAGING OF RENEWABLE AND AIMED AT CONTINUED & HIGH FLUCTUATION FOSSIL-FREE ENERGY IMPROVEMENTS OF ENERGY ESTABLISHED OWNER POSITION ON THE STABLE SUSTAINABLE OF BRANDS VALUED MARKET W
Slide 28: 4P For Future!
4P For Future ! Paper Packaging Pulp Power 28 Q3 2024 www.arcticpaper.com
Slide 29: Thank you
Thank you oe ARCTIC PAPER