Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q4 2021 Earnings Presentation
22 slides from Arctic Paper's earnings presentation, Feb 22, 2022
Slide 1: Financial results Q4 2021
22.FEB 2022 Financial results Q4 2021
Slide 2: Disclaimer
Disclaimer Please read the information below carefully This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the ‘Company’) for The Company is not obliged to publish updates and amendments to the information, data information purposes only for use by investors, banks and the Comp
Slide 3: Agenda
Agenda • Q4 / FY 2021 summary • Paper • market • operating data • products • Pulp / Rottneros • Packaging • Power • Outlook Presenters: Göran Eklund – CFO Arctic Paper
Slide 4: Summary Q4 2021
Summary Q4 2021 Arctic Paper Group Q4 2021 vs. Q4 2020 Net sales EBITDA Operating CF ROCE* (PLNmn) (PLNmn) (PLNmn) 953,5 69,2 132,9 14,7% (Q4 2021) (Q4 2021) (Q4 2021) (Q4 2021) vs. vs. vs. vs. 714,7 25,1 23,9 10,6% (Q4 2020) (Q4 2020) (Q4 2020) (Q4 2020) Paper/Pulp Net debt/ Paper sales Pulp sales
Slide 5: Summary YTD DEC 2021
Summary YTD DEC 2021 Arctic Paper Group YTD DEC 2021 vs. YTD DEC 2020 Net sales EBITDA Operating CF ROCE* (PLNmn) (PLNmn) (PLNmn) 3 412,6 327,8 238,2 14,7% (YTD DEC 2021) (YTD DEC 2021) (YTD DEC 2021) (YTD DEC 2021) vs. vs. vs. vs. 2 847,5 271,4 211,5 10,6% (YTD DEC 2020) (YTD DEC 2020) (YTD DEC 202
Slide 6: 4P for future Arctic
New strategy 4P for future Arctic The new 4P strategy is built on the ambition to grow using the synergies between the two existing pillars paper and pulp and new investments in packaging and energy to reach a sustainably higher profitability and resilience of the group.
Slide 7: Paper
Paper 7 Financial results Q4 2021 arcticpaper.com
Slide 8: Products
Products Top 3 Brands in revenue share Geographical split of sales No 1 in European High Quality Bookpaper Sales Rest of No 1 in European Design Paper Sales Europe; 14% Germany; 21% Outside Biggest Uncoated Europe; 3% D e s i g n B ra n d Benelux; 4% Advanced Offset Sweden; 5% p ro d u c t i o n i n
Slide 9: Products
Products Market segments/products portfolio/target groups Printing Houses Clients who purchase the Group’s paper products directly Direct customers who purchase, stock and distribute the Group’s paper Wholesalers for resale to other users Direct and indirect customers, who uses the Group’s paper pro
Slide 10: Market data
Market data Fine paper average market prices DEC 2021 compared to SEP 2021 Graphic fine paper prices – German market UWF average price change +7% 1000 CWF average price change +8% 900 800 DEC 2021 compared to DEC 2020 700 UWF average price change +11% 600 CWF average price change +13% UWF 80g Sheets
Slide 11: Arctic Paper - paper - operating data
Arctic Paper - paper - operating data Average Q4 2021 use of production capacity: 99% Production and use of production capacity for all paper mills Same level as in Q3 2021 600 96% 92% 99% 9% higher than in Q4 2020 90% 92% 90% 100% 450 Q4 2021 total production volume: 300 69% 80% 167k tons 150 60% 1
Slide 12: Arctic Paper - paper - operating data
Arctic Paper - paper - operating data Revenue and revenue per tonne Paper sales revenue (PLNmn) Total revenue Q4 2021 (PLN 689mn) 750 689 689 increased by 36% compared to Q4 2020 650 539 538 532 527 550 507 507 450 404 350 250 Paper sales revenue per tonne (PLNk)* 4,11 Average price Q4 2021 (PLN 4.1
Slide 13: Pulp
Pulp 13 Financial results Q4 2021 arcticpaper.com
Slide 14: Arctic Paper Group
Arctic Paper Group EBITDA evolution 2014 - 2021 (PLNmn) !""#$%&'#()#*+&,+(-"(.-%)(/#+0#,%/(1 %-(/%2.&3&4#("&,2,$&23(5#/63%/(&,(32/%(7(8#25/ 250 Paper Segment 200 150 350 Paper Segment Pulp Segment 100 300 50 250 0 200 2014 2015 2016 2017 2018 2019 2020 2021 150 250 Pulp Segment 100 200 50 150 0 2014
Slide 15: Packaging
Packaging 15 Financial results Q4 2021 arcticpaper.com
Slide 16: Packaging - development
Packaging - development Packaging paper sales development (t) Packaging papers: 20 000 16 000 Munken Kraft G-Flexmatt 12 000 8 000 N e w c o a t e d p r o d u c t G - F le x m a t t U n c o a t e d p a c k a g in g la u n c h e d o n t h e m a r k e t in Q 2 4 000 paper 2021 0 YTD DEC 2018 YTD DEC 2
Slide 17: Power
Power 17 Financial results Q4 2021 arcticpaper.com
Slide 18: Power generation
Power generation New hydroelectric power plant in Munkedal Phase 1 of PV solar farm in Kostrzyn runs produced over 20 GWh of green energy in 2021. since August. In December there was Biomass power plant in Grycksbo produced contract signed with external company to over 16 GWh of green energy and 747
Slide 19: Outlook
Outlook 19 Financial results Q4 2021 arcticpaper.com
Slide 20: Outlook
Outlook • Strong demand, expected high production utilization • Energy costs pressure – significant increase of energy prices across the whole Europe • Logistics challenges related to the limited avaliability of means of transport and higher freight costs • High demand of pulp contributes to the pro
Slide 21: Sharing our story with you
Sharing our story with you Hedged against Predictable capex volatility of Increasing share Growth in aimed at profitability & of renewable and packaging continued high fluctuation fossil-free energy improvements of energy Established Owner of brands Sustainable position on the Stable ownership value
Slide 22: Questions?
22.FEB 2022 Questions?