Nordic Paper Holding AB — Q3 2024 Earnings Presentation
18 slides from Nordic Paper Holding AB's earnings presentation, Oct 30, 2024
Slide 1: Stable performance at a high level
Stable performance at a high level Nordic Paper interim report Q3 2024 Anita Sjölander, CEO Niclas Eriksson, CFO Henrik Essén, Head of IR
Slide 2: Stable performance at a high level
Stable performance at a high level • Market demand was healthy in the quarter. • Net sales up 2% to SEK 1,100m (1,077m), highest ever for a third quarter. Excluding currency effects, the increase was 4%. • Sales prices increased in the quarter to a level 3% higher than Q3 2023. • EBITDA at SEK 106m
Slide 3: Net sales and EBITDA on same levels as in Q3 2023
Net sales and EBITDA on same levels as in Q3 2023 SEK SEK 1400 1,077m 1,100m 25 1200 20 1000 ✓ Net sales SEK 1,100m 15 800 ✓ EBITDA SEK 106m 600 10 ✓ EBITDA margin 9.6% 400 5 200 0 0 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 2022 Net sales, SEKm EBITDA margin,%
Slide 4: Same sales volumes as Q3 2023
Same sales volumes as Q3 2023 ktonnes ±0% 90 80 70 60 50 40 30 20 10 0 Q4 2022 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3
Slide 5: Q3 EBITDA performance significantly increased over last years
Q3 EBITDA performance significantly increased over last years Q3 EBITDA 2020-2024 SEK m 120 100 80 60 40 20 0 -20 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024
Slide 6: Kraft Paper impacted by high cost for maintenance stop
Kraft Paper impacted by high cost for maintenance stop Kraft Paper net sales and EBITDA SEKm % 800 40 700 35 ✓ Net sales SEK 566m, an increase by 4% compared to Q3 2023. 600 30 500 25 ✓ Increased sales prices compensated in full for slightly higher raw material prices. 400 20 300 15 ✓ Costs related
Slide 7: Strong performance in Natural Greaseproof
Strong performance in Natural Greaseproof Natural Greaseproof net sales and EBITDA SEKm % 800 40 ✓ Net sales increased by 2% to SEK 548m. 700 35 ✓ Sales prices 3% up compared to Q3 2023 and 600 30 sales volumes increased by 4%. 500 25 ✓ In total unchanged raw material prices 400 20 compared to Q3 20
Slide 8: Nordic Paper business in Japan
Nordic Paper business in Japan • Very long relationships with customers - converting greaseproof papers into cooking paper and baking cups. • High quality demands, visual appearance equally important as greaseproof and strength properties. • End customers request for PFAS-free food contact paper inc
Slide 9: Q3 - Stable development for net sales
Q3 - Stable development for net sales Net sales bridge Q3 2024 SEKm
Slide 10: Q3 - Higher product prices and currency effects offset higher costs
Q3 - Higher product prices and currency effects offset higher costs SEKm EBITDA bridge Q3 2024
Slide 11: YTD - Higher volumes offset lower product prices
YTD - Higher volumes offset lower product prices Net sales bridge YTD 2024 SEKm
Slide 12: YTD - Higher volumes and lower variable costs offset lower prices
YTD - Higher volumes and lower variable costs offset lower prices SEKm EBITDA bridge YTD 2024
Slide 13: Normal development in working capital
Normal development in working capital Working capital Cash flow from operating activities SEKm % SEKm SEKm 12m 750 15 400 800 600 14 300 600 450 13 200 400 300 12 100 200 150 11 0 0 0 10 -100 -200 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 Working capital, SEKm Working
Slide 14: Bäckhammar investment proceeding according to plan
Bäckhammar investment proceeding according to plan SEKm Investments 250 200 150 100 50 0 Q4 2022 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Bäckhammar investments in Other investments wood room and electrostatic filter • The ongoing Bäckhammar investments are expected to add SEK 100m to EBITDA with full effect
Slide 15: Strong financial position
Strong financial position SEKm 1400 4,5 4 1200 ✓ Net debt increased to SEK 1,120m (792m) 3,5 1000 impacted by investments in Bäckhammar. 3 800 2,5 ✓ Net debt/EBITDA 1.4 (0.9), target <2.5 600 2 1,5 400 1 200 0,5 0 0 Q4 2022 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Net debt, SEKm Net debt/EBITDA 12 m
Slide 16: Outlook
Outlook The company assesses that • demand for Nordic Paper products will weaken somewhat in Q4, primarily in Kraft Paper, while average product prices for the group in Q4 will remain unchanged compared to Q3. • pulpwood prices will continue to increase and market pulp prices to decrease. The net ef
Slide 17: Q&A
Q&A
Slide 18: Summary
Summary • Net sales up 2% to SEK 1,100m (1,077m), highest ever for a third quarter. • Sales prices increased in the quarter to a level 3% higher than Q3 2023. • EBITDA at SEK 106m (108m). The company assesses that • demand for Nordic Paper products will weaken somewhat in Q4, primarily in Kraft Pape