Norske Skog Asa · OSL:NSKOG
Norske Skog Asa — Q2 2024 Earnings Presentation
14 slides from Norske Skog Asa's earnings presentation, Jul 12, 2024
Slide 1: Q2 2024 presentation: We create green value
Q2 2024 presentation 12 July 2024 We create green value
Slide 2: Norske Skog
Norske Skog Sustainable fibre processing Five high quality Strategic transition industrial sites Eleven paper machines with supporting Publication paper infrastructure for energy, fibre, and water Packaging paper Leading publication paper producer Fibre projects Newsprint capacity: 990kt LWC magazin
Slide 3: Quarter highlights
Quarter highlights Second quarter 2024 Earnings positively impacted by recognised insurance at Saugbrugs Quarterly EBITDA of NOK 471m impacted positively by NOK 338m from recognised insurance in the quarter Achieved positive EBITDA from Packaging Paper segment in the quarter Positive development in
Slide 4: Key figures
Key figures Second quarter 2024 Deliveries volume Total operating income EBITDA Pre-tax profit Thousand tonnes NOKm NOKm (and margin) NOKm 400 4 000 3 763 800 760 800 41 3 404 586 350 29 3 500 3 217 700 600 26 38 3 036 300 64 71 77 3 000 600 70 74 2 688 400 311 250 27 2 500 500 471 52 27 41 39 200 1
Slide 5: Financial position
Financial position Second quarter 2024 Equity ratio Interest coverage ratio Cash1 Net debt Book equity to total assets EBITDA to net cash interest cost NOKm NOKm (and leverage ratio) group covenant of min. 25% group covenant of min. 2.0x group covenant of min. NOK 100m unrestricted no group maintena
Slide 6: Segment financials
Segment financials Results driven by recognition of insurance NOK million Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Publication Paper Europe Q2 2024 Deliveries, kt 267 258 270 262 279 Publication Paper Europe Total operating inc. 2 843 2 405 3 028 2 058 2 514 EBITDA margin of 18% positively impacted by NOK EBIT
Slide 7: Containerboard ramp-up
Containerboard ramp-up Continued increase in production volume Monthly RCCM production Bruck PM3 Monthly RCCM production cost Bruck PM3 Thousand tonnes 18 120 Full utilisation of 95% to be reached H2 2025 16 Golbey PM1 – 550kt containerboard capacity 100 Increasing 14 OCC costs Cabling representing
Slide 8: Saugbrugs fibre processing
Saugbrugs fibre processing Strong local support to secure Saugbrugs as cornerstone industry in Halden BCTMP pre-engineering (main study) Starting pre-engineering for 300kt BCTMP production at Saugbrugs with final investment decision H1 2025 Expected net investment of NOK 1.5-2.0bn based on early sup
Slide 9: Top brownfield opportunity
Top brownfield opportunity Potential to become a cost-leading BCTMP supplier Indexed Northern Bleached Softwood Kraft (NBSK) Europe price in USD Sources of cost competitiveness Indexed to 100 per January 2019 Industrial site and buildings with scale advantages and personnel experienced with TMP pr
Slide 10: Raw materials
Raw materials Recycled paper prices increasing significantly Energy prices Germany Recycled paper prices Germany Spruce pulpwood prices Norway CO2 (EUA) price EUR per MWh EUR per tonne NOK per solid cubic metre EUR per allowance 100 350 600 100 90 90 300 500 80 80 70 250 70 400 60 60 200 50 300 50 1
Slide 11: Publication paper market
Publication paper market Publication paper prices remain at low levels as demand stabilises Publication paper prices Germany Monthly publication paper demand and capacity Western Europe EUR per tonne Thousand tonnes 1 400 1 800 1 600 1 200 1 400 1 000 1 200 800 1 000 600 800 600 400 400 200 200 0 0
Slide 12: Packaging paper market
Packaging paper market Price increases implemented as demand growth returns Recycled containerboard index Germany Quarterly recycled containerboard demand and operating rate Western Europe Index Thousand tonnes Operating rate 1 000 8 000 100% 900 90% 7 000 800 80% 6 000 700 70% 5 000 600 60% 500 4 0
Slide 13: Outlook
Outlook Concluding remarks Energy costs normalising, but pulpwood and recovered paper costs increasing Publication paper prices remain at unsustainable levels as fibre costs increase Further price increases for containerboard implemented as recovered paper costs continue to increase Expect negative
Slide 14: 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 Email: ir@norskeskog.com This presentation contains statements regarding the future in connection with Norske Skog’s growth initiative