Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q3 2018 Earnings Presentation
19 slides from Arctic Paper's earnings presentation, 2018
Slide 1: Arctic Paper S.A. Q3 2018 – A Future in paper
Per Skoglund – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Q3 2018 A Future in paper arcticpaper.com
Slide 2: Disclaimer
Disclaimer Please read the information below carefully This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the The Company is not obliged to publish updates and amendments to the information, ‘Company’) for information purposes only for use by investors, banks and the Company’s
Slide 3: Content
Content 1. Summary of Q3 2018 2. Market environment 3. Operations and financial results
Slide 4: Summary of Q3 2018
Summary of Q3 2018 Q3 2018 presentation arcticpaper.com
Slide 5: Q3 2018 in brief
Q3 2018 in brief Arctic Paper Group • Pulp prices have stabilised during the period on a very high level. • A better product mix and paper price increases partially compensate, further price increases ahead. • Strong performance of Rottneros have contributed to a good result. • Increased market shar
Slide 6: Financial Summary Q3 2018: Strong Group results with continued high pulp prices
Financial Summary Q3 2018: Strong Group results with continued high pulp prices Arctic Paper Group Q3 2018 vs. Q3 2017 PLN PLN PLN PLN 812,4 m 59,4 m 67,7m 10% (735,9 m) (43,3 m) (58,2 m) (11%) N et sales EB IT Op erat in g C ash F lo w R OC E* * Rolling 12 months 6 Q3 2018 presentation arcticpaper.
Slide 7: Market Environment
Market Environment 7 Q3 2018 presentation arcticpaper.com
Slide 8: Fine paper prices partially compensate
Fine paper prices partially compensate Graphic fine paper prices – German market SEP 2018 compared to JUN 2018 900 • UWF segment average price change +2.4% 800 • CWF segment average price change +2.2% 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RIS
Slide 9: Stabilised pulp prices but on high level
Stabilised pulp prices but on high level Pulp PIX Indexes Europe Average price Q3 2018 compared to Q3 2017 1 500 1 400 • NBSK (long fibre): 37.2% higher 1 300 1 200 1 230 1 200 1 092 1 100 1 000 1 000 • BHKP (short fibre): 20.2% higher 900 839 803 806 810 809 826 890 906 979 1 030 1 050 1 050 800 78
Slide 10: Currency exchange rates
Currency exchange rates EUR/PLN changes Average exchange rate Q3 2018 compared to Q3 2017 4,6 4,5 4,4 • EUR/PLN +1.1% 4,3 4,2 30/09 • EUR/SEK +8.9% 4,1 2016 2017 2018 4.27 • EUR/USD -1.0% EUR/SEK changes 10,5 10,3 Average exchange rate Q3 2018 compared to Q2 2018 10,0 9,8 9,5 • EUR/PLN +1.0% 9,3 30/
Slide 11: Operations and financial results
Operations and financial results 11 Q3 2018 presentation arcticpaper.com
Slide 12: Stable output from production
Stable output from production Production and use of production capacity for all paper mills 600 120% Average Q3 2018 use of budget production 450 93% 95% 98% 94% 95% 95% 98% 98% 98% 98% 99% 99% 95% 100% capacity: 95% 300 80% 169 166 169 158 167 161 167 162 164 165 166 163 161 • 2.9% lower than in Q3
Slide 13: Paper sales revenue and revenue per tonne
Paper sales revenue and revenue per tonne Paper sales revenue 800 579 590 574 559 592 592 Total Q3 2018 (PLN 592m) up 9.1% 600 498 542 525 540 569 520 575 513 542 543 542 compared to Q3 2017 400 200 0 Paper sales revenue per tonne Average Q3 2018 (PLN 3.66k) increased 4,0 3,66 by 10.3% compared to a
Slide 14: Key consolidated figures
Key consolidated figures • Q3 2018 total revenues up +10.4% compared to Q3 2017 (+9.1% paper segment, +14.0% Rottneros AB revenue) • Q3 2018 EBITDA up by 11,7m PLN compared to Q3 2017 (27,5m PLN paper segment: -11,4m PLN; 55,0m PLN Rottneros AB: +23,1m PLN) • Q3 2018 Net result from continuing opera
Slide 15: Q3 2018 EBIT Arctic Paper Group – total
Q3 2018 EBIT Arctic Paper Group – total Q3 EBIT Bridge Q3 2018 EBIT 59,4m PLN • +14,0m PLN more than Q2 2018 • +15,2m PLN more than Q3 2017 EBIT evolution 59 59 48 47 44 45 39 39 33 2 -6 Q3 2018 presentation arcticpaper.com
Slide 16: Q3 2018 EBIT Arctic Paper (excluding Rottneros AB)
Q3 2018 EBIT Arctic Paper (excluding Rottneros AB) Q3 operating result Bridge Q3 2018 operating result 12,4m PLN • +6,4m PLN more than Q2 2018 • -6,3m PLN less than Q3 2017 EBIT evolution 29 19 19 19 17 14 12 12 7 6 -18 Q3 2018 presentation arcticpaper.com
Slide 17: Summing-up
Summing-up 17 Q3 2018 presentation arcticpaper.com
Slide 18: Summing-up Q3 2018
Summing-up Q3 2018 Arctic Paper Group • Paper segment, turnover rose to PLN 591,8 million (PLN 542,3 million in Q3, 2017). • A better product mix and paper price increases partially compensate. • Further price increases are being implemented during Q4. • Paper segment, EBITDA fell to PLN 27,5 millio
Slide 19: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com