Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Metsä Group — Q1 2017 Earnings Presentation
39 slides from Metsa Board Oyj Class A's earnings presentation, May 4, 2017
Slide 1: Metsä Group Interim Report Q1/2017
Metsä Group Interim Report Q1/2017 Kari Jordan President and CEO 4 May 2017
Slide 2: Business developed as expected
Metsä Group – Q1 Business developed as expected • Sales EUR 1,216 million (Q1/2016: EUR 1,156 million) • Operating result* EUR 128 million (EUR 109 million) • Operating result of sales* 10.5% (9.5%) • Return on capital employed* 12.5% (10.6%) • Sales grew mainly due to increased delivery volumes • O
Slide 3: Events in the first quarter
Metsä Group – Q1 Events in the first quarter • The market prices of long-fibre and short-fibre pulp increased • The capacity utilisation rate of the folding boxboard machine started up in 2016 at Husum, Sweden, increased • Metsä Tissue commenced the renewal of the recycled pulp plant at the Mänttä m
Slide 4: Sales quarterly
Metsä Group – Q1 Sales quarterly EUR million 1 400 1,330 1,254 1,265 1,248 1,255 1,225 1,205 1,204 1,216 1 200 1,156 1,184 1,143 1,175 1 000 800 600 400 200 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 4 4.5.2017 Metsä Group
Slide 5: Operating result
Metsä Group – Q1 Operating result EUR million 180 160 160 154 149 142 137 140 129 131 128 128 123 120 119 117 118 110 120 109 105 104 103 107 103 107 107 100 92 84 80 70 60 40 20 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Comparable operating re
Slide 6: Comparable operating result
Metsä Group – Q1 Comparable operating result EUR million 160 149 137 140 129 128 123 120 117 120 109 107 105 104 103 100 94 92 89 87 80 68 71 73 64 60 53 40 20 0 Q3 Q4 Q1/12 Q1/13 Q2 Q3 Q4 Q1/14 Q1/15 Q2 Q3 Q4 Q1/16 Q1/17 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q2 Q3 Q4 6 4.5.2017 Metsä Group
Slide 7: Change in comparable operating result
Metsä Group – Q1 Change in comparable operating result EUR million Comparable operating result 1–3/2016 109.5 Sales prices -22.6 Sales volumes 30.5 Exchange rates 1.6 Raw materials and energy -2.1 Employee costs 10.6 Maintenance and other -5.9 Others total 6.3 18.4 Comparable operating result 1–3/20
Slide 8: Items affecting comparability Q1/2017
Metsä Group – Q1 Items affecting comparability Q1/2017 EUR million Q1/2017 Operating result (IFRS) 131.2 Items affecting comparability: Metsä Wood / sale of the project business 3.3 Items total +3.3 Comparable operating result 127.9 8 4.5.2017 Metsä Group
Slide 9: Comparable ROCE
Metsä Group – Q1 Comparable ROCE % 16 14 13.5 12 12.3 12.5 Target >10 % 10 10.6 9.7 8 6 4 2 0 Q1/2013 Q1/2014 Q1/2015 Q1/2016 Q1/2017 9 4.5.2017 Metsä Group
Slide 10: Equity ratio
Metsä Group – Q1 Equity ratio % 50 43.2 43.9 44.1 45 40 37.9 37.9 35 30 25 20 15 10 5 0 12/2013 12/2014 12/2015 12/2016 3/2017 10 4.5.2017 Metsä Group
Slide 11: Interest-bearing net liabilities
Metsä Group – Q1 Interest-bearing net liabilities EUR million 1 750 1,510 1 500 1,226 1 250 1,033 1 000 938 750 610 500 250 0 12/2013 12/2014 12/2015 12/2016 3/2017 11 4.5.2017 Metsä Group
Slide 12: Capital expenditure
Metsä Group – Q1 Capital expenditure EUR million 800 700 600 500 Full-year estimate 400 758 300 492 200 100 214 143 127 0 1–12/2013 1–12/2014 1–12/2015 1–12/2016 1–3/2017 12 4.5.2017 Metsä Group
Slide 13: Income statement
Metsä Group – Q1 Income statement EUR million Q1/2017 Q1/2016 Change Sales 1,216.1 1,155.6 60.6 Other operating income 14.0 8.3 5.7 Operating expenses -1,036.3 -990.8 -45.6 Depreciation and impairment losses -62.7 -66.3 3.6 Operating result 131.2 106.8 24.4 Comparable operating result 127.9 109.5 18
Slide 14: Key figures
Metsä Group – Q1 Key figures Q1/2017 Q1/2016 Muutos Return on capital employed, % 12.8 10.3 2.5 Comparable return on capital employed, % 12.5 10.6 1.9 Return on equity, % 16.3 11.3 5.0 Comparable return on equity, % 15.7 11.8 3.9 Equity ratio, % 44.1 42.8 1.3 Net gearing ratio, % 46 35 11 Interest-b
Slide 15: Cash Flow Statement I
Metsä Group – Q1 Cash Flow Statement I EUR million Q1/2017 Q1/2016 Cash flow from operating activities Result for the period 106.7 68.3 Adjustments to result for the period 80.6 103.0 Interest received 1.0 0.9 Interest paid -12.5 -12.5 Dividends received 0.8 0.7 Taxes -19.0 -25.7 Other financial ite
Slide 16: Cash Flow Statement II
Metsä Group – Q1 Cash Flow Statement II EUR million Q1/2017 Q1/2016 Net cash flow from operating activities -41.0 -67.1 Purchase of shares 0.0 0.0 Acquired shares from non-controlling interests -30.7 0.0 Investments -127.5 -142.9 Sales of assets and others 11.7 0.8 Changes in members' capital and ot
Slide 17: Personnel
Metsä Group – Q1 Personnel 12 000 10,736 10,410 10 000 9,599 9,300 9,310 8 000 6 000 4 000 2 000 0 12/2013 12/2014 12/2015 12/2016 3/2017 17 4.5.2017 Metsä Group
Slide 18: Wood Supply and Forest Services
Wood Supply and Forest Services
Slide 19: Wood Supply and Forest Services
Metsä Forest – Wood Supply and Forest Services Wood Supply and Forest Services EUR million Q1/2017 Q1/2016 Change Sales 432.6 401.2 31.5 Other operating income 0.8 2.4 -1.6 Operating expenses -424.0 -394.9 -29.1 Depreciation and impairment losses -0.9 -0.8 -0.1 Operating result 8.5 7.8 0.7 Items aff
Slide 20: Steady supply of wood and higher purchasing volumes
Metsä Forest – Wood Supply and Forest Services Steady supply of wood and higher purchasing volumes • Metsä Forest delivered a total of 8.7 million Comparable operating result EUR million cubic metres of wood (8.3) 10,0 • In Finland, the supply of wood was steady, 9,0 8.7 8.9 8.5 and stumpage prices
Slide 21: Wood Products Industry
Wood Products Industry
Slide 22: Wood Products Industry
Metsä Wood – Wood Products Industry Wood Products Industry EUR million Q1/2017 Q1/2016 Change Sales 120.2 121.4 -1.2 Other operating income 3.9 0.6 3.3 Operating expenses -107.2 -110.6 3.4 Depreciation and impairment losses -2.9 -3.6 0.7 Operating result 14.0 7.8 6.2 Items affecting comparability, t
Slide 23: Strong demand for wood products
Metsä Wood – Wood Products Industry Strong demand for wood products Comparable operating result • Delivery volumes and sales of Metsä Wood's EUR million 14,0 13.2 Kerto® LVL products grew, especially in North America and the Middle East 12,0 10.7 • Delivery volumes and sales of birch and 10,0 9.0 sp
Slide 24: Pulp and Sawn Timber Industry
Pulp and Sawn Timber Industry
Slide 25: Pulp and Sawn Timber Industry
Metsä Fibre – Pulp and Sawn Timber Industry Pulp and Sawn Timber Industry EUR million Q1/2017 Q1/2016 Change Sales 422.0 408.8 13.2 Other operating income 4.2 2.4 1.8 Operating expenses -350.3 -325.0 -25.3 Depreciation and impairment losses -21.4 -25.0 3.6 Operating result 54.5 61.2 -6.7 Items affec
Slide 26: Price of pulp (PIX) 2009–Q1/2017
Metsä Fibre – Pulp and Sawn Timber Industry Price of pulp (PIX) 2009–Q1/2017 USD EUR 1050 1050 950 950 850 850 750 750 650 650 550 550 450 450 350 350 ´09 ´10 ´11 ´12 ´13 ´14 ´15 ´16 ´17 Hardwood/EUR Softwood/EUR Hardwood/USD Softwood/USD Source: Foex 26 4.5.2017 Metsä Group
Slide 27: Demand for long fibre pulp remained good
Metsä Fibre – Pulp and Sawn Timber Industry Demand for long fibre pulp remained good • Demand for long-fibre pulp was good. In Comparable operating result EUR million China the demand was stronger than expected 100,0 95.6 90,0 • The price of long-fibre pulp grew about 2% 82.0 83.4 79.7 and short-fib
Slide 28: Paperboard Industry
Paperboard Industry
Slide 29: Paperboard Industry
Metsä Board – Paperboard Industry Paperboard Industry EUR million Q1/2017 Q1/2016 Change Sales 444.5 435.6 8.9 Other operating income 3.2 6.0 -2.8 Operating expenses -378.9 -386.1 7.2 Depreciation and impairment losses -23.6 -22.9 -0.7 Operating result 45.2 32.7 12.5 Items affecting comparability, t
Slide 30: Prices of folding boxboard and white-top kraftliner in Europe
Metsä Board – Paperboard Industry Prices of folding boxboard and white-top krafliner in Europe 2011–Q1/2017 EUR/ tonne 1100 1050 1000 950 900 850 800 750 700 650 600 2011 2012 2013 2014 2015 2016 2017 Folding boxboard White-top kraftliner Source: Pöyry Management Consulting ja FOEX Indexes Ltd 30 4.
Slide 31: Delivery volumes increased and profitability improved
Metsä Board – Paperboard Industry Delivery volumes increased and profitability improved Comparable operating result • Operating result was improved mainly by EUR million increased folding boxboard and linerboard 60,0 54.6 delivery volumes • Average prices of the paperboards 50,0 47.0 45.2 43.2 produ
Slide 32: Tissue and Cooking Papers
Tissue and Cooking Papers
Slide 33: Tissue and Cooking Papers
Metsä Tissue – Tissue and Cooking Papers Tissue and Cooking Papers EUR million Q1/2017 Q1/2016 Change Sales 252.0 246.2 5.8 Other operating income 0.6 0.9 -0.3 Operating expenses -225.5 -223.9 -1.6 Depreciation and impairment losses -9.5 -9.7 0.2 Operating result 17.6 13.5 4.1 Items affecting compar
Slide 34: Operating result of Tissue and Cooking Papers improved
Metsä Tissue – Tissue and Cooking Papers Operating result of Tissue and Cooking Papers improved • Metsä Tissue’s sales grew primarily due to Comparable operating result EUR million increased delivery volumes 25,0 • Operating result was positively impacted by 20.6 the higher sales volume, the lower m
Slide 35: Summary
Summary
Slide 36: Outlook for the business areas 1/2
Summary Outlook for the business areas 1/2 Wood Supply and Forest Services • Wood demand will focus on felling sites to be harvested when the ground is unfrozen and, in terms of energy wood, mainly on crown wood • The sales of forest management services are expected to remain good Wood Products • Ma
Slide 37: Outlook for the business areas 2/2
Summary Outlook for the business areas 2/2 Paperboard • Global demand for high-quality consumer packaging paperboard made from fresh fibre is expected to continue to grow • Metsä Board's paperboard deliveries in April–June are expected to grow from the previous quarter. The growth is supported by Hu
Slide 38: Near-term outlook
Summary Near-term outlook • Metsä Group’s comparable operating result is in the second quarter of 2017 expected to be roughly at the same level as in the first quarter of 2017 38 4.5.2017 Metsä Group
Slide 39: Make the most of Metsa yl
Make the most of Metsa yl thy Metsa