Arctic Paper S.a. · GPW:ATC
Arctic Paper — H1 2010 Earnings Presentation
22 slides from Arctic Paper's earnings presentation, Sep 1, 2010
Slide 1: Arctic Paper Group 1st half 2010 results
l love verb /lʌv/ Originating in northern Europe, we are a paper group with a dedicated passion for making superrior graphic fine paper for demanding fine paper users. Being ideal for creative design, our paper applications including book production, qualities offer a wide range of applications, pro
Slide 2: Agenda
Agenda K Key information on Arctic Paper G Group Paper P market Operational O and financial results for 1st half of 2010 Strategy S and plans 2
Slide 3: Key information on Arctic Paper Group
Slide 4: Description of the Arctic Paper Group
Description of the Arctic Paper Group K Key competitive ii advantages d and d information i f i ab b bout Arctic A i Paper P Group G Strong brands with leading position Widely developed in European book sales network paper market One of the leading Optimal geographical spread of manufacturers f
Slide 5: Developed sales network
Developed sales network k Close c customer stome relationships elationships and a bette betterr understanding nde standing of local ma market ket changes Arctic Paper has its own highly developed sales network: 3 Distribution Companies and 15 Sales Offices, Offices including more than 130 sales st
Slide 6: Our paper mills
Our paper mills Effi i Efficiency and d flexibility fl ibili off production d i processes s Arctic Paper Arctic Paper P Arctic Paper Arctic Paper Kostrzyn Munkeedals Mochenwangen Grycksbo 275,000 tonnes per 160,000 tonne es per 115,000 tonnes per 265,000 tonnes per Production capacity annum annum an
Slide 7: Paper market
Slide 8: Paper market in Europe: delivery volumes
Paper market in Europe D li Delivery volumes l iin paper segments where h Arc A tic i P Paper operates Deliveries of fine paper on the European marrket during the first 6 months of 2010 were 8.3% higher than in the same period in 2009. 2009 gment were up 8.4%, and in the coated wood-free Deliver
Slide 9: Paper market in Europe: trends in paper prices
Paper market in Europe M k trends Market d in i paper prices i Prices of graphic papers in EUR and GBP (Sept. y 2010)) 2008 – July From March to June 2010 declared prices of uncoated wood-free paper on markets in France, Germany, Italy, Spain and UK (expressed in EUR’GBP) rose on average by 9 to 1
Slide 10: Paper market in Europe: trends in exchange rates
Paper market in Europe M k trends Market d in i exchange h rates In the 2nd quarter of 2010, the average EUR/ /PLN exchange rate was at a similar level (+0.6%) compared p to the 1st q quarter of 2010,, but the avera age g exchange g rate during g the first 6 months of 2010 was 10.6% lower than in
Slide 11: Paper market in Europe: trends for pulp
Paper market in Europe M k trends Market d for f pulp l At the end of the 2nd quarter of 2010, pulp prices were USD 975.80 per tonne for NBSK and USD 918.30 per tonne for BHKP—up p p 57.0% and 81.6% respe pectivelyy from the end of June 2009. The average prices of pulp in the 2nd quarter of 20 0
Slide 12: Paper market in Europe: trends for pulp
Paper market in Europe M k trends Market d for f pulp l Factors that may affect the development of the pulp p market Most of the deliveries of pulp delayed by the Chiilean earthquake in February 2010 are already on the market. Pulp producers are reopening previously closed pulp p plants: Stora E
Slide 13: Financial results
Slide 14: Sales volume and revenue
Sales volume and revenu ue Growth in sales volume and total revenue with a decline in LFL revenue Total and LFL sales volume (‘000 tonnes) In Q2 2010, AP Group achieved growth in 375 29.5 361 sales l volume l versus 2009 off 44%, 44% and d year- 350 % to-date over 29%. During the same period, 325
Slide 15: Main financial information
Main financial informatio on Results for 2nd quarter and first half of 2010 2Q 2010 vs. YTD 2Q '10 vs. 2Q 1Q 2Q YTD 2Q YTD 2Q 2Q 2009 YTD 2Q '09 PLN'000 2010 2010 2009 2010 2009 Change % Change % Revenues 582 948 479 360 446 482 1 062 308 922 106 30,6% 15,2% Gross profit on sales 63 051 82 413 115 4
Slide 16: Summary of 2nd quarter 2010
Summary of 2nd quarterr 2010 Almost maximum use of production n capacity, with slight decline in orders received. received First increase in p paper p prices comp p pleted,, second increase in the course of being implemented. Continued dynamic growth in pulp prrices on world markets. markets
Slide 17: Measures taken and planned to improve results
Measures taken and plan nned to improve results Continuing optimization of product sales structure, market and customer mix. Introduction of further price increases in the upcoming months. Implementation of plans for improved profitability at all mills and cost- ncluding reduction in costs of
Slide 18: Strategy and plans
Slide 19: The Arctic Paper Group's strategy
The Arctic Paper Group’s s strategy K Key premises i off corporate strategy Expansion into the markets of Central & Maximising efficiency Eastern Europe while maintaining our of production and distribution leadership position in main markets The markets of Western Europep will remain Maximisatio
Slide 20: Plans for 2010
Plans for 2010 K Key areas off activity i i planned l d to the h end d off the h current year Integration of Grycksbo Paper Hold ding AB into the Arctic Paper Group's organisational structure, particularly in the area of sales and marketing. m Taking advantage of the opportun nities to further i
Slide 21: Thank you for your attention
Thank you for your Michał Jarczyński, CEO attention ARCTIC PAPER GROUP tel. : +48 61 6262 007 e-mail: michal.jarczynski@arcticpaper.com Michał Bartkowiak, CFO ARCTIC PAPER GROUP tel. : +48 61 6262 006 e-mail: michal.bartkowiak@arcticpaper.com Media: Iwona Sacewicz Sacewicz-Mojsiuszko, Mojsiuszko, M+
Slide 22: Disclaimer
Disclaimer Pl Please read d the h information i f i below b l carefully. f ll TRANSLATORS’ EXPLANATORY NOTE The following document is a translation of the presentation of the Arctic Paper Group. In the e event of any discrepancy in interpreting the terminology, the Polish version is binding. This pr