Arctic Paper S.a. · GPW:ATC
Arctic Paper — FY2018 Earnings Presentation
24 slides from Arctic Paper's earnings presentation, 2019
Slide 1: Arctic Paper S.A. Financial results 2018
M ichał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Financial results 2018 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. 2018 in brief 2. Market environment 3. Operations and financial results 4. Q1 2019, news 5. Summary
Slide 4: 2018 in brief: Growth despite challenges in the graphic paper market
2018 in brief: Growth despite challenges in the graphic paper market 2018 - Full year presentation arcticpaper.com
Slide 5: 2018 in brief
2018 in brief Arctic Paper Group • Pulp prices have decreased since its peak in Q3 2018, but were still 10-30% higher on average in Q4 2018 compared to Q4 2017. • The average paper sales revenue per ton grew by 12.2 percent in Q4 2018 compared to Q4 2017, which is the result of the combination of be
Slide 6: Financial Summary Q4 2018
Financial Summary Q4 2018 Arctic Paper Group Q4 2018 vs. Q4 2017 PLN PLN PLN PLN 780,7 m - 21,4 m 80,5m 9% (740,0 m) (-6,1 m) (99,6 m) (8%) N et sales EB IT Op erat in g C ash F lo w R OC E* * Rolling 12 months 6 2018 - Full year presentation arcticpaper.com
Slide 7: Financial Summary 2018
Financial Summary 2018 Arctic Paper Group FY, 2018 vs. FY, 2017 PLN PLN PLN PLN 3 158,2 m 130,7 m 148,6 m 9% (2 952,8 m) (109,7 m) (261,6 m) (8%) N et sales EB IT Op erat in g C ash F lo w R OC E* * Rolling 12 months 7 2018 - Full year presentation arcticpaper.com
Slide 8: Market Environment
Market Environment 8 2018 - Full year presentation arcticpaper.com
Slide 9: Fine paper prices
Fine paper prices Graphic fine paper prices – German market DEC 2018 compared to SEP 2018 900 • UWF segment average price change +2.3% 800 • CWF segment average price change +1.4% 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI data. DEC 2018 comp
Slide 10: Stabilised pulp prices but on high level
Stabilised pulp prices but on high level Average price Q4 2018 compared to Q4 2017 Pulp PIX Indexes Europe 1 400 • NBSK (long fibre): 28.2% higher 1 300 1 200 1 230 1 200 1 200 1 092 1 100 1 000 1 000 • BHKP (short fibre): 10.9% higher 900 803 806 810 809 826 890 906 1 030 1 050 1 050 1 024 800 789
Slide 11: Currency exchange rates
Currency exchange rates EUR/PLN changes Average exchange rate Q4 2018 compared to Q4 2017 4,6 4,5 4,4 • EUR/PLN +1.6% 4,3 4,2 31/12 • EUR/SEK +5.4% 4,1 2016 2017 2018 4.30 • EUR/USD -3.1% EUR/SEK changes 11,0 10,8 Average exchange rate Q4 2018 compared to Q3 2018 10,5 10,3 10,0 9,8 • EUR/PLN -0.1% 9
Slide 12: Operations and financial results
Operations and financial results 12 2018 - Full year presentation arcticpaper.com
Slide 13: Output from production
Output from production Production and use of production capacity for all paper mills Average Q4 2018 use of budget production 450 95% 94% 95% 98% 98% 99% 100% 90% capacity: 90% 300 80% 166 158 161 162 165 163 150 • 7.6% lower than in Q4 2017 150 60% Q4 2018 total production volume: 150k tonne 0 40%
Slide 14: Paper sales revenue and revenue per tonne
Paper sales revenue and revenue per tonne Paper sales revenue 600 543 559 540 539 543 539 Total Q4 2018 (PLN 539m) down 0.7% 498 525 520 513 compared to Q4 2017 400 200 Paper sales revenue per tonne Average Q4 2018 (PLN 3.72k) increased 4,0 3,72 by 12.2% compared to average in Q4 2017 3,66 3,50 3,5
Slide 15: Key consolidated figures
Key consolidated figures • YTD DEC 2018 total revenues up +7.0% compared to YTD DEC 2017 (+4.1% paper segment, +14.8% pulp segment revenue); • YTD DEC 2018 EBITDA down by PLN 20,9m compared to YTD DEC 2017 (66m PLN paper segment: -65,0m PLN; 157,5m PLN pulp segment: +44,1m PLN); • YTD DEC 2018 Net r
Slide 16: Q4 2018 EBIT Arctic Paper Group – total
Q4 2018 EBIT Arctic Paper Group – total Q4 EBIT Bridge Q4 2018 EBIT -21,4m PLN • -80,8m PLN less than Q3 2018 • -15,3m PLN less than Q4 2017 EBIT evolution 59 44 45 39 33 47 2 -6 -6 -21 -21 2018 - Full year presentation arcticpaper.com
Slide 17: Q4 2018 EBIT Arctic Paper (excluding Rottneros AB)
Q4 2018 EBIT Arctic Paper (excluding Rottneros AB) Q4 EBIT Bridge Q4 2018 operating result -27,8m PLN • -40,3m PLN less than Q3 2018 • -9,8m PLN less than Q4 2017 EBIT evolution 17 19 19 14 12 7 6 -18 -18 -28 -28 2018 - Full year presentation arcticpaper.com
Slide 18: Q1 2019, news
Q1 2019, news 18 2018 - Full year presentation arcticpaper.com
Slide 19: Investment in biomass boiler at Arctic Paper Munkedals
Investment in biomass boiler at Arctic Paper Munkedals • Arctic Paper has signed a 15-year contract with Adven AB, which will design, own and operate a biomass boiler with a capacity of 30 MW at Arctic Paper Munkedals. This ensures lower, stable and predictable energy costs and reduces CO2-emissions
Slide 20: G-Snow
G-Snow 20 arcticpaper.com arcticpaper.com
Slide 21: G-Snow campaign
G-Snow campaign G-Snow is a wood-free coated paper with an ultra-white surface; colours and contrast pop, and details are highlighted with precision. • Paneuropean launch of G-Snow in the ‘commodity plus’ market with extraordinary ultra-whiteness as main sales argument. • G-Snow work on both small a
Slide 22: Summary
Summary 22 2018 - Full year presentation arcticpaper.com
Slide 23: Summary
Summary Arctic Paper Group • Paper segment, turnover rose to PLN 2 263,3 million (PLN 2 173,5 million in 2017). • Paper segment, EBITDA fell to PLN 66,0 million (PLN 131,0 million in 2017). • Increased market share in selected segments with the help of strong brands, while the market for graphic pap
Slide 24: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com