Norske Skog Asa · OSL:NSKOG
Norske Skog Asa — Q3 2023 Earnings Presentation
13 slides from Norske Skog Asa's earnings presentation, Oct 20, 2023
Slide 1: Q3 2023 presentation: We create green value
Q3 2023 presentation 20 October 2023 We create green value
Slide 2: Sustainable and innovative industry
Sustainable and Five high quality innovative industry industrial sites Eleven paper machines with supporting Strategic transition infrastructure for energy, fibre and water Publication paper Packaging paper Energy and bio products Cost leading producer of publication paper Skogn Capacity: 1 490kt (e
Slide 3: Third quarter in brief
Third quarter in brief Earnings negatively impacted by weak markets EBITDA in the quarter of NOK 327m, including property damage insurance of NOK 67m, reimbursement of power payments of NOK 77m, and negative impact of NOK 55m related to change in CO2 compensation scheme Higher NIBD of NOK 2 662m mai
Slide 4: Group financials
Group financials Revenue EBITDA Operating cash flow Net debt NOKm (and deliveries volume) NOKm (and margin) NOKm NOKm (and leverage ratio) 745 4 056 1 083 2 662 3 630 627 3 320 3 404 3 036 675 1 746 430 508 353 1 305 1 092 380 970 327 173 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q
Slide 5: Segment financials
Segment financials Publication Paper Europe Publication Paper Europe Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Operating rate, % 83% 74% 77% 74% 87% Pressure on prices and profitability Deliveries, thousand tonnes 347 300 245 267 258 Total operating income 3 129 3 551 2 864 2 843 2 405 EBITDA influenced by: EBI
Slide 6: Input costs down from peak, but remain at high levels
Input costs down from peak, but remain at high levels Energy prices Germany Recycled paper prices Germany Spruce pulpwood prices Norway EUR per MWh EUR per tonne NOK per solid cubic metre 500 280 500 450 450 240 400 400 350 200 350 300 300 160 250 250 120 200 200 150 80 150 100 100 40 50 50 0 0 0 20
Slide 7: Signs of stabilising demand, but still significant excess capacity especially within magazine grades
Signs of stabilising demand, but still significant excess capacity especially within magazine grades Western European publication paper market balance Annualised monthly demand Utilisation and capacity, million tonnes 20 Approximately 1.5m 100% tonnes of capacity 18 closures end of 2023 90% 16 80% 1
Slide 8: Publication prices lower due to easing costs and soft demand
Publication prices lower due to easing costs and soft demand Publication paper prices Germany European Union Allowance (EUA) price development EUR per tonne EUR per allowance 1 400 120 1 200 100 1 000 80 800 60 600 40 400 20 200 0 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 LWC off
Slide 9: Net containerboard market prices at very low levels
Net containerboard market prices at very low levels Recycled containerboard prices Germany Bruck PM3 containerboard cost per tonne EUR per tonne EUR per tonne 1 000 1 000 Nearing gross margin break-even (at the current low market price level) and expect continued cost reduction as quarterly deliveri
Slide 10: Continued growth and progress into the containerboard market
Continued growth and progress into the containerboard market Bruck PM3 Continued ramp-up of containerboard production at Bruck PM3 Improving production cost as utilisation and optimisation increases Golbey PM1 Containerboard production and commissioning of Green Valley Energie boiler on track for st
Slide 11: Good progress at Saugbrugs with significant effort from all stakeholders
Good progress at Saugbrugs with significant effort from all stakeholders Rockslide on 27 April damaging PM6, no one was physically harmed. Saugbrugs is insured for business interruption and property damages In Q3 2023, insurance coverage had the following financial impacts: Business interruption ins
Slide 12: Outlook
Outlook Raw material and energy costs stabilising, but development remains uncertain Paper prices influenced by lower input costs and weak market balance Containerboard prices stabilising, but still a challenging market Further capacity closures and industry consolidation required in all markets Exp
Slide 13: We create green value
Norske Skog ASA Postal address: P.O. Box 294 Skøyen, 0213 Oslo, Norway Visitors: Sjølyst Plass 2, 0278 Oslo, Norway Phone: +47 22 51 20 20 Email: info@norskeskog.com We create Email: ir@norskeskog.com This presentation contains statements regarding the future in connection with Norske Skog’s growth