Rottneros Ab · OMXSTO:RROS
Rottneros Ab — Q1 2024 Earnings Presentation
19 slides from Rottneros Ab's earnings presentation, Apr 25, 2024
Slide 1: Q1 report 2024
Q1 report 2024 25 April 2024 Lennart Eberleh President and CEO Monica Pasanen CFO
Slide 2: Highlights Q1
Highlights Q1 -6 % s) MSEK Lower production EBIT for Q1 2024 A ~® no 486—e Strong demand and Annual General Meeting rising prices and dividend 0.50 SEK per share
Slide 3: Rottneros' investment case
Rottneros’ investment case GREEN TRANSITION STABLE SHAREHOLDER Sustainable products RETURN 63% of net result 2023 as dividend LONG-TERM PROFITABILITY Broader revenue base Increased volumes STRONG MARKET POSITION IN ROBUST BALANCE SHEET SELECTED NICHES Responsible capital allocation
Slide 4: Market
Market Positive trend
Slide 5: Pulp market
PULP MARKET A cyclical Average quarterly price of NBSK Europe. SEK/ton USD/ton 1 600 16 000 Increasing prices 1 500 15 000 1 400 14 000 1 300 13 000 1 200 12 000 1 100 11 000 Strong demand 1 000 10 000 900 9 000 800 8 000 700 7 000 Favourable USDSEK 600 6 000 500 5 000 400 4 000 2019 2020 2021 2022
Slide 6: Supply and demand
SUPPLY AND DEMAND Producers’ inventories and price USD/ton Days of producers’ inventories 1 600 62 Producer stocks balanced 1 400 55 1 200 48 Destocking in value chain 1 000 41 800 34 Disruptions impacting 600 27 supply 400 2016 20 2017 2018 2019 2020 2021 2022 2023 2024 Days NBSK list price, USD/to
Slide 7: Production Europe
PRODUCTION EUROPE Compared to previous year 20% 2023 Jan - Feb 2024 15% Europe is Rottneros’ main market 10% 5% 0% -5% -10% Recovery after a weak -15% 2023 -20% -25% -30% Newsprint Other packaging Graphical paper Contrainerboard Other Tissue Cartonboard Jan - Feb 2024 increase by 7% Source: CEPI
Slide 8: Production Europe 2018–2023
PRODUCTION EUROPE 2018 – 2023 100% Production decreased by 90% 13% in Europe Other 80% 70% Tissue 60% Share of board and packaging growing in 50% Board and importance 40% packaging 30% Paper 20% 10% 0% 2018 2019 2020 2021 2022 2023 Total annual volume 2023 approx. 70 mio tonnes SOURCE: CEPI
Slide 9: Deliveries of chemical market pulp
DELIVERIES OF CHEMICAL MARKET PULP Compared to previous year 2023 Jan - Feb 2024 30% Demand increased 25% by 6,5% 20% 15% 10% 5% China’s share of 0% the pulp market is -5% approx. 40% -10% -15% -20% Europe North America Latin America China Other markets Source: PPPC
Slide 10: Rottneros' pulp-sales per application
Rottneros’ pulp-sales per application Sales of pulp Q1 2024 (FY 2023) 3% 1% PRINTING AND FIBER CEMENT 2% (2) OTHER (3%) WRITING PAPER (2) CARTONBOARD 11% TISSUE (9%) 27% (29) 12% SPECIAL APPLICATIONS (12) 19% ELECTROTECHNICAL FILTER 24% APPLICATIONS (24) (20)
Slide 11: Rottneros' pulp-sales per application (Swedish)
Rottneros’ pulp-sales per application Sales of pulp Q1 2024 (FY 2023) 3% 1% SKRIV- OCH TRYCKPAPPER FIBERCEMENT 2% (2) ÖVRIGT (3%) (2) KARTONG OCH 11% MJUKPAPPER FÖRPACKNING (9%) 27% (29) 12% SPECIAL- APPLIKATIONER (12) 19% ELEKTROTEKNISKA FILTER 24% APPLIKATIONER (24) (20)
Slide 12: Result
Result Good deliveries but production problems
Slide 13: EBIT Q1 2024 vs. Q1 2023
EBIT Q1 2024 VS. Q1 2023 (MSEK) Lower prices Good deliveries but lower production Increased share of other revenue
Slide 14: Efficient and solid balance sheet
EFFICIENT AND SOLID BALANCE SHEET MSEK % Operational cash flow Net debt/cash Equity/asstes % 600 90 Available liquidity 427 MSEK 500 80 400 70 Investments 82 MSEK 300 60 200 50 100 40 Dividend 76 MSEK 0 30 -100 20 2020 Q2 Q3 Q4 2021 Q2 Q3 Q4 2022 Q2 Q3 Q4 2023 Q2 Q3 Q4 2024 Q1 Q1 Q1 Q1 Q1
Slide 15: The way ahead
pay i) ROTTNEROS The way ahead
Slide 16: Trends favouring pulp
Trends favouring pulp RENEWABLE TISSUE E-COMMERCE SUSTAINABILITY ENERGY
Slide 17: Innovation and development
INNOVATION AND DEVELOPMENT Rottneros Packaging JV Poland Blue Ocean Closures
Slide 18: Summary
SUMMERY Strong balance sheet Market in balance Focus on production
Slide 19: Questions and answers
Questions and answers Lennart Eberleh Monica Pasanen President and CEO CFO