Koskisen Oyj · OMXHEX:KOSKI
Koskisen Oyj — FY2022 Earnings Presentation
30 slides from Koskisen Oyj's earnings presentation, Mar 16, 2023
Slide 1: Koskisen achieved a record-high result in 2022
Koskisen achieved a record-high result in 2022 Koskisen Corporation Financial Statements Release 2022 CEO Jukka Pahta 16 March 2023
Slide 2: Agenda
Agenda ⚫ Financial and operational development ⚫ Strategy ⚫ Financial objectives ⚫ Profit guidance for 2023 and short-term outlook ⚫ Questions can be asked through the question function of the webcast. Questions will be answered after the presentation. 16/3/2023 2
Slide 3: Highlights from 2022
Higlights from 2022 The best result in The largest An exceptional Koskinen's initial the company's investment in situation in the public offering was history – EBITDA history in a new wood market due oversubscribed - 66.3 M€, further sawmill progressed to the end of more than 4,000 strengthens the a
Slide 4: Financial and operational development
Financial and operational development
Slide 5: Financial development 2022 and Q4 2022
Financial development 2022 and Q4 2022 21/22 Q4 Revenue, M€ Adjusted EBITDA, M€ Revenue, M€ Adjusted EBITDA, M€ 311,5 317,7 66,6 62,3 92,1 23,0 77,4 10,7 2021 2022 2021 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 +2,0 % 21,0 % - 15,9 % 13,8 % Adjusted EBITDA, %, Adjusted EBITDA, %, 2022 Q4 2022 5
Slide 6: Strong financial position
Strong financial position October-December Year EUR million 10-12 10-12 Change 1-12 1-12 Change Unless otherwise stated 2022 2021 2022 2021 Revenue 77.4 92.1 -15.9 % 317.7 311.5 2.0 % EBITDA 9.8 22.9 -57.2 % 66.3 62.2 6.5 % Adjusted EBITDA 10.7 23.0 -53.5 % 66.6 62.3 7.0 % Operating profit (EBIT) 7.
Slide 7: Sawn timber industry
6) KKOSKISEN Sawn timber industry Q4 2022
Slide 8: Revenue decreased and profitability weakened along with sawn timber market prices
Sawn timber industry Q4 2022 Revenue decreased and profitability weakened along with the sawn timber market prices Revenue, M€ Revenue, M€ ⚫ The decrease in revenue was mainly due to the 188,0 165,4 decrease in prices caused by the global market situation and the somewhat lower volumes compared 60,4
Slide 9: Investment in an integrated production unit representing the latest technology
Investment in an integrated production unit representing the latest technology ⚫ The construction of a new production unit in Expected capacity Järvelä has progressed according to plans. development of the Sawn Production will start in stages in 2023 and 2024 timber industry segment (m3/year) ⚫ Esti
Slide 10: The JAS quality standard enables the expansion of the customer base in Japan
The JAS quality standard enables the expansion of the customer base in Japan ⚫ Koskisen has had a strong foothold in the quality- conscious Japanese market for a long time About a quarter of sawmill exports to Japan Japan is a strategically important market to be grown systematically ⚫ The new JAS (
Slide 11: Panel industry
6) KKOSKISEN Panel industry Q4 2022
Slide 12: Customer demand and strengthened average prices supported revenue growth and profitability
Panel industry Q4 2022 Customer demand and strengthened average prices supported revenue growth and profitability Revenue, M€ Revenue, M€ 152,1 123,3 ⚫ The increase in revenue was mainly due to strong customer demand and the strengthening of the average 31,7 41,9 price of products ⚫ The improvement
Slide 13: A new veneer peeling line improves the use of wood raw material
A new veneer peeling line improves the use of wood raw material ⚫ An investment in a new spindleless veneer peeling line to improve material efficiency ⚫ Improves the use of wood raw material and the possibilities of using a smaller log diameter in the veneer production ⚫ Improves the efficiency of
Slide 14: The world's first fully wood-based furniture board Zero
The world’s first fully wood-based furniture board Zero ⚫ The world’s first 100% wood-based furniture board ⚫ Both the raw and the binding materials are sourced from the production side streams of Finnish wood industry ⚫ The test runs of the furniture board have proceeded according to plan and the c
Slide 15: Raw material sourcing
6) KKOSKISEN Raw material sourcing
Slide 16: The supply of raw materials has gone well despite the tightened wood market
The supply of raw materials has gone well despite the tightened wood market ⚫ The end of imports from Russia from March 2022 has tightened the wood market situation in Finland, mainly with regard to pulpwood and forest converted chips ⚫ The procurement of birch raw material from Finland has been rea
Slide 17: Wood market outlook
Wood market outlook ⚫ The wood raw material outlook until summer 2023 is good ⚫ Prices have remained at a high level, but stable ⚫ The demand for softwood and forest chips has remained strong and will continue to strengthen during 2023 ⚫ Competition for domestic birch raw material will remain tight
Slide 18: Koskisen's strategy
6) KKOSKISEN Koskisen’s strategy
Slide 19: Efficient integrated process from forest to end product
Efficient integrated process from forest to end product Sawn timber industry Panel industry ✓ Procurement of raw materials from Finnish forests 100 % Thin plywood and veneers Technical panels ✓ Wood maximally utilized in production Form pressing Design and furniture ✓ Customer solutions By-products
Slide 20: Responsibility is integrated into strategy and operational activities
Responsibility is integrated into strategy and operational activities Overall sustainability of the environmental and climate effects of the operation Sustainable forest management practices and supporting biodiversity A value chain around synergistic and sustainable material flows Using valuable wo
Slide 21: Financial objectives and dividend
Financial objectives and divident
Slide 22: Financial objectives
Financial objectives The Board of Directors of the Company has adopted the following long- term financial targets exceeding the cycles for Koskisen, which the Company aims to achieve by the end of 2027: Growth Revenue EUR 500 million, including both organic and inorganic growth Profitability Adjuste
Slide 23: Dividend proposal
Divident proposal ⚫ The Board of Directors’ dividend proposal to the Annual General Meeting of 2023 is EUR 0.43 per share or 10 M€, which is 25,2% of the net result 16/3/2023 23
Slide 24: Enablers of future growth
6) KKOSKISEN Enablers of future growth
Slide 25: Growth is supported by several sustainability factors
Growth is supported by several sustainability factors ✓ Increasing regulation to cut emissions supports use of wood products Urbanization demands creative solutions, where wood construction offers sustainable ✓ alternatives Growing construction volumes Gcombined with wood materials create demand for
Slide 26: Concrete ways to implement growth
Concrete ways to implement growth ⚫ Koskisen has set the strategic targets build on identified future opportunities New wood Efficiency Systematic Product Organic and processing unit improvements development inorganic growth Grow production Smaller investments Zero Potential capacity and effici- at
Slide 27: Strong balance sheet as the cornerstone for future growth
Strong balance sheet as the cornerstone for future growth Net debt, M€ Equity ratio, % Leverage* 71,4 52,7 6,3 x 34,1 29,0 13,0 0,6 x -0,4 x -28,5 2020 2021 2022 2020 2021 2022 2020 2021 2022 Koskisen has a very moderate Positive earnings development has Positive EBITDA development as indebtness, as
Slide 28: Profit guidance and short-term outlook
Profit guidance and short-term outlook
Slide 29: Profit guidance for 2023 and short-term outlook
Profit guidance for 2023 and short-term outlook ⚫ The guidance for 2023 is in accordance with Koskisen Corporation’s listing prospectus dated 18 November 2022: Koskisen’s revenue for 2023 is not expected to exceed the level of 2022. The adjusted EBITDA margin is expected to be 12–14 per cent. ⚫ The
Slide 30: Thank you
Thank you