Koskisen Oyj · OMXHEX:KOSKI
Koskisen Oyj — Q1 2024 Earnings Presentation
19 slides from Koskisen Oyj's earnings presentation, May 14, 2024
Slide 1: Koskisen's profitability weakened year-on-year
Koskisen’s profitability weakened year-on-year – the demand for and prices of plywood products remained still stable Koskisen Corporation Interim Report January-March 2024 CEO Jukka Pahta 14 May 2024
Slide 2: Agenda
Agenda ⚫ Financial and operational development ⚫ Raw material procurement ⚫ Specified growth strategy aims and accelerates growth ⚫ Questions can be asked through the question function of the webcast. Questions will be answered after the presentation. 14 May 2024
Slide 3: Financial development
Financial development Revenue, EUR million Adjusted EBITDA, EUR million Adjusted EBITDA, % 271,3 8.7 % 33,1 (17.3) 73,2 63,7 12,6 5,5 Q1 2023 Q1 2024 2023 Q1 2023 Q1 2024 2023 -13.0 % -56.1 % 14 May 2024
Slide 4: Strong financial position
Strong financial position January-June 2023 EUR million 1-3 1-3 Change % 1-12 Unless otherwise stated 2024 2023 2023 Revenue 63.7 73.2 -13.0 271.3 EBITDA 5.5 12.6 -56.1 33.0 Adjusted EBITDA 5.5 12.6 -56.1 33.1 Operating profit (EBIT) 3.1 10.7 -70.6 24.4 Profit for the period 2.3 8.8 -74.3 20.2
Slide 5: Delayed deliveries to the second quarter weakened net sales and profitability
Sawn Timber Industry Q1 2024 Delayed deliveries to the second quarter weakened net sales and profitability Revenue, EUR million ⚫ The decrease in revenue was mainly due to the delay in sawn timber deliveries to the second quarter due to 122,4 industrial action and the lower sawn timber price level t
Slide 6: Lower delivery volumes weakened revenue and profitability
Panel Industry Q1 2024 Lower delivery volumes weakened revenue and profitability Revenue, EUR million ⚫ The decrease in revenue was mainly due to lower delivery volumes, which are partly explained by delayed deliveries 148,8 to the second quarter due to industrial action 41,1 ⚫ The decline in EBITDA
Slide 7: The main impact of the industrial action was delayed deliveries to the second quarter
The main impact of the industrial action was delayed deliveries to the second quarter ⚫ The first quarter was hit by both direct and indirect strikes ⚫ The impact of direct strikes on production remained minor In Sawn Timber Industry the direct strikes lasted for a few days, during which some of the
Slide 8: Profit guidance for 2024 unchanged
Profit guidance for 2024 unchanged ⚫ Koskisen Group’s revenue for 2024 is expected to grow from the level of 2023. The adjusted EBITDA margin is expected to be 8–12 per cent. 14 May 2024
Slide 9: Raw material sourcing
6) KKOSKISEN Raw material sourcing
Slide 10: Raw material sourcing
Raw material sourcing ⚫ Wood raw material procurement proceeded as planned during Q1 ⚫ In raw material purchase prices, the price trend increased towards the end of the quarter ⚫ Wood raw material outlook for Q2 stable and reserves at targeted level ⚫ For birch logs, there has been enough raw materi
Slide 11: Specified growth strategy aims and accelerates growth
Specified growth strategy aims and accelerates growth
Slide 12: Market
Market Koskisen operates in both local and global wood product markets, primarily in softwood sawn timber, birch plywood and chipboard. Wood is a renewable material and wood products meet the growing climate and environmental requirements of customers. Market size 2024, Average annual Market size 20
Slide 13: Market drivers
Market drivers Sustainability, environmental awareness, urbanisation and the development of trade and transportation shape the wood products market. These market drivers support the use of wood and wood products and the growth of their demand. Development of trade Sustainability Urbanisation and tra
Slide 14: Priorities for sustainable development and sustainability
Priorities for sustainable development and sustainability Strategy We use We mitigate climate We invest in We are natural resources change and adapt sustainable circular an attractive and fair wisely and promote to the future bioeconomy solutions employer biodiversity We take into account the enviro
Slide 15: Objectives
Objectives Target 2027 Realised 2023 Growth Revenue of EUR 500 million, including both Revenue EUR 271.3 million organic and inorganic growth Profitability Adjusted EBITDA margin averaging Adjusted EBITDA 15% over the cycle EUR 33.1 million, 12.2% Balance sheet Maintaining a strong balance sheet Equ
Slide 16: Products and services
Products and services Synergetic businesses Growing the sawing business makes it Increased sawing volumes allow both possible to increase in-house wood the increased use of Koskisen’s own side procurement to support growth in streams and building new products the entire Group that use them Sawn Timb
Slide 17: Growth paths
Growth paths Towards sustainable growth 1. 2. 3. Value for the Development of Bold steps customer current operations We strengthen selected customer We strengthen our core We take bold steps towards accounts and markets and stand businesses and competitiveness sustainable growth by expanding, out fr
Slide 18: Steps on the growth path
Steps on the growth path 1. Value for the 2. Development of current 3. Bold steps customer operations Investments 2024 2025 2026 2027 Ongoing investments to increase the production and productivity of the new sawmill in Järvelä Additional investments to increase the production capacity of the new sa
Slide 19: Thank you.
Thank you.