Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Metsä Group — Q3 2018 Earnings Presentation
22 slides from Metsa Board Oyj Class A's earnings presentation, Nov 8, 2018
Slide 1: Metsä Group Interim report Q3/2018
Metsä Group Interim report Q3/2018 Ilkka Hämälä President and CEO 8 November 2018
Slide 2: Excellent financial result
Metsä Group – Q3 Excellent financial result • Sales EUR 4,290 million (1–9/2017: EUR 3,712 million) • Operating result* EUR 641 million (EUR 381 million) • Operating result of sales* 14.9% (10.3%) • Return on capital employed* 17.1 % (11.2%) • Sales increased due to greater delivery volumes and high
Slide 3: Events in the third quarter
Metsä Group – Q3 Events in the third quarter • The market prices of long-fibre and short-fibre pulp continued to increase • Production at Metsä Wood’s birch plywood mill in Pärnu began • Bioproduct mill reached full production capacity in August • Metsäliitto Cooperative made an early repayment of i
Slide 4: Sales quarterly
Metsä Group – Q3 Sales quarterly EUR million 1 600 1,477 1,428 1,386 1,330 1,328 1,254 1,265 1,248 1,255 1,255 1,205 1,216 1,235 1,260 1,204 1 200 1,156 1,184 1,143 1,175 800 400 0 4 8.11.2018 Metsä Group
Slide 5: Comparable operating result
Metsä Group – Q3 Comparable operating result EUR million 250 223 208 210 200 185 149 150 137 134 129 123 128 117 120 119 105 104 109 103 107 100 92 50 0 Q1/14 Q2 Q3 Q4 Q1/15 Q2 Q3 Q4 Q1/16 Q2 Q3 Q4 Q1/17 Q2 Q3 Q4 Q1/18 Q2 Q3 5 8.11.2018 Metsä Group
Slide 6: Change in comparable operating result
Metsä Group – Q3 Change in comparable operating result EUR million Comparable operating result 1–9/2017 381 Sales prices 462 Sales volumes 90 Exchange rates -121 Raw materials and energy -111 Employee costs -22 Maintenance and other fixed costs -8 Depreciation -33 Others 4 Comparable operating resul
Slide 7: Items affecting comparability
Metsä Group – Q3 Items affecting comparability EUR million 1–9/2018 Operating result (IFRS) 635.4 Items affecting comparability: Metsä Board / Efficiency improvement programme at Husum mill -4.1 Metsä Board /Teollisuuden Voima divesting Meri-Pori coal-fired power plant -1.7 Metsä Board / other +0.2
Slide 8: Comparable ROCE
Metsä Group – Q3 Comparable ROCE % 20 17.1 15 14.2 11.1 11.2 10.5 Target >10% 10 5 0 1–9/2014 1–9/2015 1–9/2016 1–9/2017 1–9/2018 8 8.11.2018 Metsä Group
Slide 9: Equity ratio
Metsä Group – Q3 Equity ratio % 60 52.7 50 43.9 45.0 43.2 40 37.9 30 20 10 0 12/2014 12/2015 12/2016 12/2017 9/2018 9 8.11.2018 Metsä Group
Slide 10: Interest-bearing net liabilities
Metsä Group – Q3 Interest-bearing net liabilities EUR million 1 500 1 200 1,033 993 938 900 610 622 600 300 0 12/2014 12/2015 12/2016 12/2017 9/2018 10 8.11.2018 Metsä Group
Slide 11: Capital expenditure
Metsä Group – Q3 Capital expenditure EUR million 800 600 400 758 608 492 Full year 200 estimate 143 159 0 1–12/2014 1–12/2015 1–12/2016 1–12/2017 1–9/2018 11 8.11.2018 Metsä Group
Slide 12: Personnel
Metsä Group – Q3 Personnel 12 000 10,410 9,599 9,300 9,348 9,126 9 000 6 000 3 000 0 12/2014 12/2015 12/2016 12/2017 9/2018 12 8.11.2018 Metsä Group
Slide 13: Wood supply in line with the targets
Metsä Forest – Wood Supply and Forest Services Wood supply in line with the targets • Wood was harvested according to targets, and Sales and comparable operating result deliveries to customers were smooth Milj. euroa • Due to good harvesting and transport 600 18 conditions, the stocks of wood were a
Slide 14: Wood products demand good except in the UK
Metsä Wood – Wood Products Industry Wood products demand good except in the UK • Sales of engineered wood products remained unchanged, but the sales of the UK business Sales and comparable operating result EUR million declined clearly 150 15 • Demand for engineered wood products in the main 13013.2
Slide 15: Demand for pulp remained strong and prices at a good level
Metsä Fibre – Pulp and Sawn Timber Demand for pulp remained strong and prices at a good level • Increase in sales prices and increased pulp delivery Sales and comparable operating result volumes as a result of the bioproduct mill improved EUR million sales and operating result for January–September
Slide 16: Price of pulp (PIX) 2010–Q3/2018
Metsä Fibre – Pulp and Sawn Timber Price of pulp (PIX) 2010–Q3/2018 USD EUR 1400 1400 1200 1200 1000 1000 800 800 600 600 400 400 ´10 ´11 ´12 ´13 ´14 ´15 ´16 ´17 ´18 Hardwood/EUR Pulpwood/EUR Hardwood/USD Pulpwood/USD Source: Foex 16 8.11.2018 Metsä Group
Slide 17: Good development also in paperboard prices and volumes
Metsä Board – Paperboard Industry Good development also in paperboard prices and volumes • The sales and comparable operating result improved due to the higher prices and delivery volumes of Sales and comparable operating result paperboard and pulp EUR million • Metsä Fibre’s increased pulp producti
Slide 18: Prices of folding boxboard and white-top kraftliner in Europe 2011–Q3/2018
Metsä Board – Paperboard Industry Prices of folding boxboard and white-top kraftliner in Europe 2011–Q3/2018 EUR/tonne 1200 1100 1000 900 800 700 600 2011 2012 2013 2014 2015 2016 2017 2018 Folding boxboard White-top kraftliner Sources: RISI, Inc. & FOEX Indexes Ltd 18 8.11.2018 Metsä Group
Slide 19: Tissue and Cooking Papers' production is being developed
Metsä Tissue – Tissue and Cooking Papers Tissue and Cooking Papers’ production is being developed • Metsä Tissue’s sales growth was primarily due to Sales and comparable operating result increased sales volumes EUR million • The operating result was weakened by the higher 300 30 261 259 256 254 pulp
Slide 20: Outlook
Summary Outlook • Demand for wood focuses on regeneration and thinning felling that can be harvested in the summer and for energy wood primarily on crown wood • Demand for wood products is expected to remain good, which improves order book levels, particularly for plywood products. The construction
Slide 21: Near-term outlook
Summary Near-term outlook • Metsä Group’s comparable operating result is in the last quarter of 2018 expected to be roughly at the same level as in the third quarter of 2018. 21 8.11.2018 Metsä Group
Slide 22: Make the most of Metsa
Make the most of Metsa iy Uy Metsd