Norske Skog Asa · OSL:NSKOG
Norske Skog Asa — Q4 2023 Earnings Presentation
13 slides from Norske Skog Asa's earnings presentation, Feb 8, 2024
Slide 1: Q4 2023 presentation
Q4 2023 presentation 8 February 2024 We create green value
Slide 2: Norske Skog
Norske Skog Fibre processing industry Five high quality Strategic transition industrial sites Eleven paper machines with supporting Publication paper infrastructure for energy, fibre, and water Packaging paper Energy and bio products Publication paper Capacity: 1 590kt Utilisation target: 90% EBITDA
Slide 3: Quarter highlights
Quarter highlights Fourth quarter 2023 Earnings positively impacted by insurance settlement Quarterly EBITDA of NOK 760m, incl. extraordinary net positive impact of NOK 655m from Saugbrugs and NOK 57m gain from Tasman sale Improved financial position and liquidity due to receipt of NOK 720m in insur
Slide 4: Key figures
Key figures Fourth quarter 2023 Deliveries volume Total operating income EBITDA Pre-tax profit Thousand tonnes NOKm NOKm (and margin) NOKm 400 4 500 1 200 1 200 1 097 4 056 1 083 350 4 000 3 763 1 000 29 45 26 1 000 3 320 3 404 3 500 300 64 71 800 65 3 036 70 52 3 000 800 760 586 250 27 600 52 27 67
Slide 5: Financial position
Financial position Fourth quarter 2023 Equity ratio Interest coverage ratio Cash 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 maintenan
Slide 6: Segment financials
Segment financials Results driven by insurance and gain on sale YTD YTD Q4 2023 NOK million Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 QoQ YoY Chg. Q4'22 Q4'23 Publication Paper Europe Publication Paper Europe EBITDA positively impacted by business interruption Deliveries, kt 300 245 267 258 270 5% -10% 1 462 1
Slide 7: Containerboard projects
Containerboard projects Continued increase in delivery volumes Golbey PM1 Containerboard production start-up in H2 2024 Close to all deliveries completed, with main exception being piping and electrical work Bruck PM3 Participating in annual delivery contracts starting from January 2024, improving d
Slide 8: Saugbrugs insurance settlement
Saugbrugs insurance settlement Ongoing process to determine future opportunities for Saugbrugs PM6 Insurance coverage Q4 2023 Business interruption insurance: Recognised NOK 625m in other operating income Property damage insurance: Recognised NOK 103m in other operating income and NOK 51m in other o
Slide 9: Raw materials
Raw materials Spruce pulpwood prices at elevated levels and EUA price significantly down Energy prices Germany Recycled paper prices Germany Spruce pulpwood prices Norway European Union Allowance (EUA) price EUR per MWh EUR per tonne NOK per solid cubic metre EUR per allowance 500 300 500 100 450 45
Slide 10: Publication paper market
Publication paper market Publication paper prices under continued pressure in oversupplied market 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 20
Slide 11: Packaging paper market
Packaging paper market Demand growth returning, but industry operating rate remain low Recycled containerboard index Germany Quarterly recycled containerboard demand and operating rate Western Europe Index Thousand tonnes Operating rate 1 000 7 000 100% 900 90% 6 000 800 80% 700 5 000 70% 600 60% 4
Slide 12: Outlook
Outlook Concluding remarks Recycled fibre and energy costs stabilising at lower levels, but pulpwood costs remain high Publication paper prices under continued pressure from weak market balance and lower input costs Containerboard prices stabilising at production cost in a challenging market with ex
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 Email: ir@norskeskog.com This presentation contains statements regarding the future in connection with Norske Skog’s growth initiative