Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q1 2025 Earnings Presentation
29 slides from Arctic Paper's earnings presentation, May 16, 2025
Slide 1: Financial results Q1 2025
Financial results Q1 2025
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 Q1 2025 www.arcticpaper.com
Slide 4: Summary Q1 2025
SUMMARY Q1 2025 Arctic Paper Group Q1 2025 vs. Q1 2024 Net sales EBITDA Net debt/EBITDA* (PLN mn) (PLN mn) 822.8 965.4 22.9 112.0 0.69x - 0.77x (Q1 2025) (Q1 2024) (Q1 2025) (Q1 2024) (EOP Q1 2025) (EOP Q1 2024) • last 12 months 4 Q1 2025 www.arcticpaper.com
Slide 5: Paper
PAPER 5 Q1 2025 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 MAR 2025 COMPARED TO DEC 2024 1100 UWF average price change -2,2% 1000 CWF average price change -1,8% 900 800 700 MAR 2025 COMPARED TO MAR 2024 600 UWF average price change -2,4% CWF average price c
Slide 7: Operating data: capacity use and paper sales volume
PRODUCTION CAPACITY FOR ARCTIC PAPER MILLS OPERATING DATA 85% 86% 71% 74% 66% 70% 66%70% 69% 55% Average Q1 2025 use of production capacity: 74% 5% HIGHER THAN Q4 2024 Q1 2025 total sales volume: 125k tons 7,5% HIGHER THAN IN Q4 2024 PAPER SALES VOLUME 166 165 168 144 144 125 125 117 113 108 113 114
Slide 8: Operating data: paper sales revenue
PAPER SALES REVENUE (PLN mn) OPERATING DATA 1 042 820 722 701 701 590 562 579 579 Total revenue Q1 2025 (PLN 579mn) INCREASED BY 0,4% COMPARED TO Q4 2024 Average price Q1 2025 (PLN 4.65k) PAPER SALES REVENUE PER TONNE (PLN k)* DECREASED BY 4,5% COMPARED TO AVERAGE IN Q1 2024 6,19 6,39 5,46 4,93 4,87
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 Q1 2025 www.arcticpaper.com
Slide 10: Products: geographical split of sales
PRODUCTS Geographical split of sales Outside Europe 2% Germany Poland UK & IE Austria & CE France Baltics Rest of Europe 21% 17% 12% 10% 9% 6% 9% The Nordics Benelux 10% 4% 10 Q1 Q1 2023 2025 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 Q1 2025 www.arcticpaper.com
Slide 13: Market data: European pulp prices
PULP PIX INDEXES EUROPE (USD PER TONNE) MARKET DATA Pulp – European pulp prices 1 6121 567 1 498 1 548 1 483 1 430 1 429 1 397 1 342 1 370 1 240 1 244 1 440 1 380 1 380 AVERAGE PRICE Q1 2025 COMPARED TO Q1 2024 1 308 1 280 1 147 1 220 1 261 1 177 1 160 NBSK (long fiber): 13% higher 1 001 BHKP (short
Slide 14: Market data: pulp wood price development
MARKET DATA Pulp wood price development Volume-weighted average prices (SEK/m3f ub*) for delivered timber in Sweden 700 650 600 550 500 450 400 350 300 250 Pulp wood * SEK per cubic meters solid volume under bark Source: Skogsstyrelsen 14 Q1 2025 www.arcticpaper.com
Slide 15: Currencies development
CURRIENCIES DEVELOPMENT USD/SEK, EUR/SEK USD/SEK – development EUR/SEK – development 11,25 11,50 11,00 10,75 11,25 10,50 11,00 10,25 10,00 10,75 9,75 9,50 10,50 USD/SEK EUR/SEK 15 Q1 2025 www.arcticpaper.com
Slide 16: Operating data: pulp production and deliveries
PULP PRODUCTION (1,000 TONNE) OPERATING DATA Pulp production & deliveries 111 96 93 87 90 89 91 91 86 84 84 86 80 75 Q1 2025 total production: 86k tons 15% HIGHER THAN IN Q4 2024 2% HIGHER THAN IN Q1 2024 PULP DELIVERIES (1,000 TONNE) 106 102 Q1 2025 total deliveries: 83k tons 96 87 87 90 89 90 83 8
Slide 17: Operating data: pulp revenue and prices
PULP SALES REVENUE (SEK mn) OPERATING DATA Revenue and prices 806 744 693 688 686 652 688 652 Total revenue Q1 2025 (SEK 652mn) INCREASED BY 4% COMPARED TO Q4 2024 PULP SALES REVENUE PER TONNE (SEK) Average price in Q1 2025 (SEK 7.9k per tonne) 8 405 8 532 7 661 8 356 7 896 DECREASED BY 8% COMPARED
Slide 18: Pulp – replacement material for plastic
PULP – REPLACEMENT MATERIAL FOR PLASTIC Pulp Sales (Rottneros) by application 2024 Other Printing and writing papers 3% 1% Fiber cement 3% Board Tissue and packaging paper 23% 11% Special applications 14% Filters 23% Electrotechnical applications 22% 18 Q1 2025 www.arcticpaper.com
Slide 19: Packaging
PACKAGING 19 Q1 2025 www.arcticpaper.com
Slide 20: Development: packaging paper sales
PACKAGING PAPER SALES DEVELOPMENT (t) DEVELOPMENT 20 000 STABLE SALES OF 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 2024 2025* * rolling 12 months 20 Q1 2025 www.arcticpaper.com
Slide 21: Power
POWER 21 Q1 2025 www.arcticpaper.com
Slide 22: Energy segment - ongoing projects
ENERGY SEGMENT - ONGOING PROJECTS • PV installation 9,6 MW PV (Kostrzyn) will be completed in June 2025 • Modernisation of biomass boiler (Grycksbo) according to the plan – start up November 2025 - to reduce energy cost for paper production process • Wood pellet production line with capacity 50 kt/y
Slide 23: PV 9 MW Kostrzyn – May 2025
PV 9 MW KOSTRZYN – MAY 2025 23 Q1 2025 www.arcticpaper.com
Slide 24: Financial performance
FINANCIAL PERFORMANCE 24 Q1 2025 www.arcticpaper.com
Slide 25: EBITDA evolution 2018 – 2025
EBITDA EVOLUTION 2018 – 2025 (PLN mn) Effective hedging of both segments – to stabilize financial results in medium & long term perspective 1 000 900 Q1 2025 EBITDA PLN 22.9mn 800 PLN 16mn HIGHER THAN Q4 2024 700 PLN 89mn LOWER THAN Q1 2024 600 500 400 300 200 100 0 2018 2019 2020 2021 2022 2023 202
Slide 26: Net debt/EBITDA 2021 – 2025
NET DEBT/EBITDA 2021 – 2025 Strong financial position 0,70 0,69 0,57 0,66 0,36 0,33 -0,02 0,00 -0,08 -0,22 -0,19 -0,28 -0,27 -0,35 -0,59 -0,73 -0,77 * rolling 12 months 26 Q1 2025 www.arcticpaper.com
Slide 27: Distribution of profit of 2024
Distribution of profit of 2024 • On May 15th, 2025, the Management Board of Arctic Paper decided to change the originally announced recommendation regarding the distribution of profit of 2024. The Management Board recommends to the General Meeting of Shareholders not to pay a dividend and to allocat
Slide 28: 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 29: 4P For Future Arctic
4P For Future Arctic Paper Packaging Pulp Power 29 Q1 2025 www.arcticpaper.com