Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q1 2021 Earnings Presentation
26 slides from Arctic Paper's earnings presentation, 2021
Slide 1: Financial results Q1 2021
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Financial results Q1 2021
Slide 2: Disclaimer
Disclaimer Please read the information below carefully This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the ‘Company’) for The Company is not obliged to publish updates and amendments to the information, data information purposes only for use by investors, banks and the Comp
Slide 3: Agenda
Agenda • Q1 2021 summary • Paper segment • market • operating data • products • Pulp segment • market • operating data • products • Financials • Outlook
Slide 4: Summary Q1 2021
Summary Q1 2021 Arctic Paper Group Q1 2021 vs. Q1 2020 Net sales EBITDA Operating CF ROCE* (PLNmn) (PLNmn) (PLNmn) 782,8 72,2 24,1 8,1% (Q1 2021) (Q1 2021) (Q1 2021) (Q1 2021) vs. vs. vs. vs. 813,9 111,8 70,8 15,0% (Q1 2020) (Q1 2020) (Q1 2020) (Q1 2020) Paper/Pulp Net debt/ Paper sales Pulp sales E
Slide 5: Covid-19
Covid-19 Current situation in the Group • Since the beginning of pandemic, Covid-19 • We are in compliance with our implemented has not affected the Group's operations. special rules and procedures to protect the health of our employees and maintain the • The Covid -19 pandemic continues to cause co
Slide 6: Paper Segment
Paper Segment 6 Financial results Q1 2021 arcticpaper.com
Slide 7: Market data
Market data Deliveries of fine paper in Europe Q1 2021 compared to Q1 2020 Monthly deliveries of fine paper in Europe (t) Uncoated w oodfree (UWF) down -5.5% 500 450 450 429 ( Ar c t i c P a p e r u n c o a t e d / Am b e r d o w n - 6 . 8 %) 414 400 352 Coated w oodfree (CWF) down -19.0% 350 300 (
Slide 8: Market data
Market data Fine paper average market prices MAR 2021 compared to DEC 2020 Graphic fine paper prices – German market UWF average price change -1.9% 1000 CWF average price change -2.7% 900 800 MAR 2021 compared to MAR 2020 700 UWF average price change -5.8% 600 CWF average price change -7.5% UWF 80g
Slide 9: Operating data
Operating data Arctic Paper mills – output & input Average Q1 2021 use of production Production and use of production capacity for all paper mills capacity: 94% 600 120% 99% 95% 96% 97% 4.3% higher than in Q4 2020 450 92% 90% 94% 100% Q1 2021 total production volume: 300 80% 157k tons 150 166 161 14
Slide 10: Operating data
Operating data Revenue and revenue per tonne Paper sales revenue (PLNmn) Total Q1 2021 (PLN 547mn) increased 670 592 574 573 564 588 588 547 by 7.9% compared to Q4 2020 600 547 530 460 492 390 320 250 Paper sales revenue per tonne (PLNk)* Average Q1 2021 (PLN 3.40k) decreased 4,0 by 1.9% compared to
Slide 11: Products
Products Top 3 Brands in revenue share Geographical split of sales No 1 in European High Quality Bookpaper Sales Rest of No 1 in European Design Paper Sales Europe; 13% G e r m a n y; 2 3 % Outside Biggest Uncoated Europe; 3% Design Brand Benelux; 4% Advanced Offset S we d e n ; 5 % production in he
Slide 12: Products
Products Market segments/products portfolio/target groups Printing Houses Clients who purchase the Group’s paper products directly Direct customers who purchase, stock and distribute the Group’s paper Wholesalers for resale to other users Direct and indirect customers, who uses the Group’s paper pro
Slide 13: Products
Products Samples Christian Dior St. Valentine Koenigsegg catalog Books Journal 13 Financial results Q1 2021 arcticpaper.com
Slide 14: Pulp Segment
Pulp Segment 14 Financial results Q1 2021 arcticpaper.com
Slide 15: Market data
Market data Pulp segment – European pulp prices Average price Q1 2021 compared to Q1 2020 Pulp PIX Indexes Europe NBSK (long fibre): 16.6% higher 1 500 1 400 BHKP (short fibre): 12.8% higher 1 300 1 200 1 230 1 200 1 200 1 091 1 106 1 100 1 001 1 0301 000 1 030 1 050 1 050 1 028 855 859 879 800 900
Slide 16: Operating data
Operating data Pulp production & deliveries Pulp production (1 000 tonne) Q1 2021 total production: 103k tons 120 108 109 110 109 100 100 100 100 103 103 98 98 95 100 94 8.4% higher than in Q4 2020 80 60 40 Pulp deliveries (1 000 tonne) Q1 2021 total deliveries: 112k tons 112 120 111 107 107 110 112
Slide 17: Operating data
Operating data Revenue and revenue per tonne Pulp sales revenue (SEKmn) Total Q1 2021 (SEK 542mn) increased 800 630 617 567 585 542 585 by 10.6% compared to Q4 2020 600 508 542 400 200 0 Pulp sales revenue per tonne (SEK) Average Q1 2021 (SEK 8 044 per tonne) 12 000 10 983 10 527 increased by 9.0% c
Slide 18: Products
Products Pulp sales by application Rottneros’ sales by application 2020 (2019) Specialities 11%; (12%) Board and Packaging 28%; (30%) Electrotechnical applications 12%; (8%) Filter 16%; (15%) Printing and Writing 21%; (23%) Tissue 12%; (13%) 18 Financial results Q1 2021 arcticpaper.com
Slide 19: Financial results
Financial results 19 Financial results Q1 2021 arcticpaper.com
Slide 20: Key consolidated figures
Key consolidated figures • Q1 2021 total revenues down - 3.8% • Cash on the level of PLN 218,3mn (PLN compared to Q1 2020 (-6.9% paper 67,5mn paper segment: PLN -39,0mn; PLN segment, +4.1% pulp segment) 150,8mn pulp segment: PLN -8,4mn) • Q1 2021 EBITDA down by PLN 39,6mn • Net debt on the level of
Slide 21: Arctic Paper Group
Arctic Paper Group EBITDA evolution 2014 - 2021 (PLNmn) Effective hedging of both segments in the period of 8 years 250 Paper Segment 200 150 300 Paper Segment Pulp Segment 100 250 50 200 0 2014 2015 2016 2017 2018 2019 2020 Q12021 2021* 150 250 Pulp Segment 100 200 50 150 0 2014 2015 2016 2017 2018
Slide 22: Q1 2021 EBITDA Arctic Paper Group
Q1 2021 EBITDA Arctic Paper Group Total Q1 2021 EBITDA Bridge +112 Q1 2021 EBITDA PLN 72,2mn 120 -35 100 +12 +2 +1 -2 -12 PLN 47,1mn higher than Q4 2020 80 -6 +72 60 PLN 40,0mn low er than Q1 2020 40 20 0 EBITDA evolution 125 112 112 100 89 82 72 86 72 72 75 48 50 35 25 25 0 22 Financial results Q1
Slide 23: Outlook
Outlook 23 Financial results Q1 2021 arcticpaper.com
Slide 24: Outlook for 2021
Outlook for 2021 • The Impact of the hikes of paper prices on the results expected in 2Q21 • The Impact of the increase in pulp prices on the results expected in 2Q21 • Soaring prices of pulp are favourable for pulp segment profitability • We are observing new legislation about Single Use of Plastic
Slide 25: Sharing our story with you
Sharing our story with you Hedged against Predictable capex volatility of Balanced profit- Increasing share aimed at profitability & sharing of renewable and continued high fluctuation proposition fossil-free energy improvements of energy Established Owner of brands Sustainable position on the Stabl
Slide 26: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 26 Financial results Q1 2021 arcticpaper.com