Raute Oyj Class A · OMXHEX:RAUTE
Raute Oyj Class A — Q2 2006 Earnings Presentation
25 slides from Raute Oyj Class A's earnings presentation, Aug 10, 2006
Slide 1: Interim report 1 January - 30 June 2006
Interim report 1 January - 30 June 2006 10 August 2006 Tapani Kiiski, President and CEO www.raute.com
Slide 2: Good demand continues
Good demand continues • Plywood industry market good in the main market areas, with the exception of North America. • LVL industry market good in all market areas, high production capacity utilization rate. • Demand for wood products technology on a good level. Market focused on large, new capacity
Slide 3: Q2/2006
Q2/2006 • Net sales and operating profit Q2 Q2 on the same level as on the €m 2006 2005 2005 comparison period Net sales 28,5 29,1 108,6 • Profitability burdened by growth Operating profit 1,4 1,4 4,4 in R&D costs and unexpected New orders: expenses in connection with the •Projects 26 16 109 launch
Slide 4: Key figures 1-6/2006
1-6/2006 €m 1-6/2006 1-6/2005 2005 New orders, projects 29 54 109 New orders, technology services 13 15 23 Order book 41 52 55 Net sales 55,0 47,6 108,6 Operating profit 2,5 1,8 4,4 Profit before tax 2,7 2,4 5,5 Earnings per share 0,58 0,45 1,09 Operating cash flow -2,4 6,1 7,7 Return on investment,
Slide 5: Net sales
Net sales €m Q4 Q3 Q2 Q1 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 Figures 2002-2003 FAS, figures 2004-2006 IFRS, continuing operations 5 www.raute.com
Slide 6: Net sales by area, %
Net sales by area, % 1-6/2006 2005 Others 12 % Europe Europe 24 % Asia 40 % 7% Others 45 % Russia 9% North America North 27 % America Asia Russia 14 % 8% 14 % 6 www.raute.com
Slide 7: Earnings per share
Earnings per share € 1-6 1,50 1,00 0,50 0,00 2002 2003 2004 2005 2006 -0,50 -1,00 -1,50 -2,00 -2,50 Figures 2002-2003 FAS, figures 2004-2006 IFRS, continuing operations 7 www.raute.com
Slide 8: New project orders
New project orders €m Q4 Q3 Q2 Q1 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 Figures 2002-2003 FAS, figures 2004-2006 IFRS 8 www.raute.com
Slide 9: New project orders by market area, %
New project orders by market area, % 1-6/2006 2005 Europe 35 % Europe 25 % Others 33 % Others 57 % Russia 16 % Asia 8% Russia North 11 % North America America 2% 13 % 9 www.raute.com
Slide 10: Order book
Order book €m Q4 Q3 Q2 Q1 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 Figures 2002-2003 FAS, figures 2004-2006 IFRS 10 www.raute.com
Slide 11: Operating cash flow
Operating cash flow €m 1-12 1-9 1-6 1-3 10,0 8,0 6,0 4,0 2,0 0,0 2002 2003 2004 2005 2006 -2,0 -4,0 11 www.raute.com
Slide 12: Capital expenditure
Capital expenditure €m 1-6 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2002 2003 2004 2005 2006 Figures 2002-2003 FAS, figures 2004-2006 IFRS 12 www.raute.com
Slide 13: R&D expenditure
R&D expenditure €m 1-6 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2002 2003 2004 2005 2006 Figures 2002-2003 FAS, figures 2004-2006 IFRS 13 www.raute.com
Slide 14: Return on investment (ROI)
Return on investment (ROI) 1-12 1-6 30 % 25 % 20 % 15 % 10 % 5% 0% 2002 2003 2004 2005 30.6.2006 -5 % -10 % -15 % -20 % -25 % Total of continuing and discontinuing operations, figures 2002-2003 FAS, figures 2004-2006 IFRS 14 www.raute.com
Slide 15: Return on equity (ROE)
Return on equity (ROE) 1-12 1-6 25 % 20 % 15 % 10 % 5% 0% 2002 2003 2004 2005 30.6.2006 -5 % -10 % -15 % -20 % -25 % Total of continuing and discontinuing operations, figures 2002-2003 FAS, figures 2004-2006 IFRS 15 www.raute.com
Slide 16: Gearing
Gearing 0% -5 % -10 % -15 % -20 % -25 % -30 % -35 % -40 % -45 % 2002 2003 2004 2005 30.6.2006 Figures 2002-2003 FAS, figures 2004-2006 IFRS 16 www.raute.com
Slide 17: Equity ratio
Equity ratio 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% 2002 2003 2004 2005 30.6.2006 Figures 2002-2003 FAS, figures 2004-2006 IFRS 17 www.raute.com
Slide 18: Year-end market outlook good
Year-end market outlook good • Most markets for wood products remain good • Investment demand continues on a good level: – Demand focused on large, new production capacity creating projects – Brisk demand in Russia is expected to result in new orders – Asian markets continue to recover – Slack inves
Slide 19: Outlook for 2006
Outlook for 2006 • Demand and order book at a good level • Focus of demand in large projects, which strengthens Raute’s competitive position. • Development of Technology services continues. Growth behind last year due to lack of large modernization projects • R&D continues strong • Net sales in the
Slide 20: Q2 Theme: Raute in South America
Q2 Theme Plywood industry in South America Raute in South America www.raute.com
Slide 21: South American plywood industry
South American plywood industry • Markets: home market, exports to Facts: the USA and Europe • Production volume • Favourable climate => fast forest growth almost 5 million m3 • Public subsidy of forest plantations • Strong growth in production • Moderate labour costs • Tropical species, • Growing p
Slide 22: Important producers
Important producers • Chile: • Brazil: – Total capacity about 650.000 m3 – Majority of production softwood – Almost solely Raute technology plywood and the share is growing – Predominantly softwood plywood, fast. The share of hardwood Radiata pine from plantations plywood is going down – Fast growth
Slide 23: Important producers
Important producers • Other countries: – Uruguay: development of plywood industry starting, plantation species as raw material – Argentina: growing plantation forests suitable for plywood production – Other countries: single, small hardwood plywood mills utilize natural forests 23 www.raute.com
Slide 24: Raute in South America
Raute in South America • Local presence since 90s • Strong foothold in Chile; young and well developed plywood industry – Raute’s deliveries: • Paneles Arauco: 3 plywood mills and an expansion of the newest mill • CMPC: plywood mill • Entry to Brazil, 2 peeling line orders • Raute’s strengths: – Lea
Slide 25: Contact information
Contact information Tapani Kiiski President and CEO +358 400 814 148 tapani.kiiski@raute.com Arja Hakala CFO +358 400 710 387 arja.hakala@raute.com www.raute.com