Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q1 2019 Earnings Presentation
20 slides from Arctic Paper's earnings presentation, 2019
Slide 1: Arctic Paper S.A. Financial results Q1 2019
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Financial results Q1 2019 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. Q1 2019 in brief 2. Market environment & operations 3. Financial results 4. Summary
Slide 4: Summary of Q1 2019
Summary of Q1 2019 Q1 2019 presentation arcticpaper.com
Slide 5: Financial Summary Q1 2019
Financial Summary Q1 2019 Arctic Paper Group Q1 2019 vs. Q1 2018 PLN PLN PLN PLN 820,6 mn 59,1 mn 59,8 mn 11% (788,0 mn) (47,5 mn) (1,8 mn) (7%) Net sales EBIT Operating Cash Flow ROCE* * Rolling 12 months 5 Q1 2019 presentation arcticpaper.com
Slide 6: Q1 2019 in brief
Q1 2019 in brief Arctic Paper Group • The results of the paper segment below our expectations, EBITDA fell to PLN 16,3mn (PLN 31,1mn in Q12018). • Pulp prices are still 40-45 percent higher than Q1, 2017, leading to higher raw material costs, increased paper prices and – as a result – lower demand f
Slide 7: Market Environment & Operation
Market Environment & Operation 7 Q1 2019 presentation arcticpaper.com
Slide 8: Fine paper prices
Fine paper prices Graphic fine paper prices – German market MAR 2019 compared to DEC 2018 • UWF segment average price change +1.0% 900 • CWF segment average price change +0.6% 800 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI data. MAR 2019 comp
Slide 9: Pulp prices started to decrease
Pulp prices started to decrease Average price Q1 2019 compared to Q1 2018 Pulp PIX Indexes Europe • NBSK (long fibre): 8.5% higher 1 300 1 200 1 230 1 200 1 200 1 092 1 104 1 100 1 000 1 000 • BHKP (short fibre): -1.7% lower 900 789 806 810 809 826 890 906 979 1 030 1 050 1 050 1 024 973 800 890 600
Slide 10: Output from production
Output from production Production and use of production capacity for all paper mills Average Q1 2019 use of budget production 450 98% 95% 98% 98% 99% 95% 92% 100% capacity: 92% 300 80% 169 167 167 164 166 161 149 • 1.6% higher than in Q4 2018 150 60% Q1 2019 total production volume: 149k tonne 0 40%
Slide 11: Financial results
Financial results 11 Q1 2019 presentation arcticpaper.com
Slide 12: Currency exchange rates
Currency exchange rates EUR/PLN changes Average exchange rate Q1 2019 compared to Q1 2018 4,5 4,4 • EUR/PLN +2.9% 4,3 4,2 31/03 • EUR/SEK +4.5% 4,1 2016 2017 2018 2019 4.30 • EUR/USD -7.6% EUR/SEK changes , Average exchange rate Q1 2019 compared to Q4 2018 10,5 10,3 10,0 9,8 • EUR/PLN +0.1% 9,5 9,3
Slide 13: Paper sales revenue and revenue per tonne
Paper sales revenue and revenue per tonne Paper sales revenue 590 592 Total Q1 2019 (PLN 573mn) almost on the 600 569 575 574 573 574 573 same level as in Q1 2018 550 542 500 450 Paper sales revenue per tonne Average Q1 2019 (PLN 3.73k) increased 4,0 by 9.8% compared to average in Q1 2018 3,73 3,66
Slide 14: Key consolidated figures
Key consolidated figures • YTD MAR 2019 total revenues up +4.1% compared to YTD MAR 2018 (the same level paper segment, +15.3% pulp segment revenue); • YTD MAR 2019 EBITDA up by PLN 10,9mn compared to YTD MAR 2018 (PLN 16mn paper segment: PLN -15,0mn; PLN 66,0mn pulp segment: PLN +25,7mn); • YTD MAR
Slide 15: Q1 2019 EBIT Arctic Paper Group – total
Q1 2019 EBIT Arctic Paper Group – total Q12019 EBIT Bridge Q1 2019 EBIT PLN 59,1mn • PLN 80,9mn higher than Q4 2018 • PLN 11,5mn higher than Q1 2018 EBIT evolution 59 59 59 39 47 47 44 33 45 -6 -21 Q1 2019 presentation arcticpaper.com
Slide 16: Q1 2019 EBIT Arctic Paper (excluding Rottneros AB)
Q1 2019 EBIT Arctic Paper (excluding Rottneros AB) Q12019 EBIT Bridge Q1 2019 operating result PLN 1,3mn • PLN 29,2mn higher than Q4 2018 • PLN 13,0mn less than Q1 2018 EBIT evolution 19 19 12 14 7 6 14 1 1 -18 -28 Q1 2019 presentation arcticpaper.com
Slide 17: Summing-up
Summing-up 17 Q1 2019 presentation arcticpaper.com
Slide 18: Cost & structure optimizing – profit improvement program
Cost & structure optimizing – profit improvement program 1. Slim organisation adjusted to changing market’s needs: a. Share service centers – HR & IT b. Some back office functions concentred at mills c. Closing of Poznan HQ office 2. Improvement of logistic setup a. Key numbers: I. 38 730 truck/year
Slide 19: Summing-up Q1 2019
Summing-up Q1 2019 Arctic Paper Group • Paper segment, EBITDA fell to PLN 16,3 mn (PLN 31,1 mn in Q1 2018). • Decision to implement a profit improvement program for the paper business, with the ambition to generate annual cost savings of PLN 40 mn with full effect 2020. • Launch of Munken Kraft, a n
Slide 20: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com