Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q4 2019 Earnings Presentation
23 slides from Arctic Paper's earnings presentation, 2020
Slide 1: Arctic Paper S.A. Q4 2019 preliminary results
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Q4 2019 preliminary results 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, data ‘Company’) for information purposes only for use by investors, banks and the Comp
Slide 3: Content
Content 1. Summary Q4 2019 2. Market environment & operations 3. Preliminary financial results 4. Summary
Slide 4: Summary Q4 2019
Summary Q4 2019 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 5: Financial Summary Q4 2019
Financial Summary Q4 2019 Arctic Paper Group Q4 2019 vs. Q4 2018 P r e l i m i n a r y f i n a n c ia l f i g u r e s PLN PLN PLN PLN 739,7 mn 13,2 mn 117,4 mn 13,7% (780,7 mn) (-21,4 mn) (80,5 mn) (9,6%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 5 Q4 2019 - Preliminary re
Slide 6: Financial Summary YTD DEC 2019
Financial Summary YTD DEC 2019 Arctic Paper Group YTD DEC 2019 vs. YTD DEC 2018 P r e l i m i n a r y f i n a n c ia l f i g u r e s PLN PLN PLN PLN 3 117,1 mn 191,4 mn 342,3 mn 13,7% (3 158,2 mn) (126,0 mn) (148,6 mn) (9,6%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 6 Q4
Slide 7: Market Environment & Operation
Market Environment & Operation 7 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 8: Paper segment - fine paper prices
Paper segment - fine paper prices Graphic fine paper prices – German market DEC 2019 compared to SEP 2019 900 • UWF segment average price change +1.1% • CWF segment average price change +1.6% 800 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI dat
Slide 9: Pulp segment - pulp prices
Pulp segment - pulp prices Average price Q4 2019 compared to Q4 2018 Pulp PIX Indexes Europe 1 500 1 400 • NBSK (long fibre): 32.5% lower 1 300 1 200 1 230 1 200 1 200 1 092 1 104 1 100 1 000 1 000 1 000 • BHKP (short fibre): 33.4% lower 900 809 826 890 906 979 1 030 1 050 1 050 1 024 973 851 820 80
Slide 10: Output from paper mills
Output from paper mills Production and use of production capacity for all paper mills 98% 98% 99% 96% 100% 450 95% 90% 92% Average Q4 2019 use of production capacity: 96% 300 80% • the same level as in Q3 2019 161 162 165 163 150 147 151 150 60% Q4 2019 total production volume: 151k tons 0 40% • 2.1
Slide 11: Paper segment - revenue and revenue per tonne
Paper segment - revenue and revenue per tonne Paper sales revenue 600 Total Q4 2019 (PLN 532mn) down 1.3% compared to Q4 2018 550 559 539 532 543 539 538 532 500 520 513 450 Paper sales revenue per tonne Average Q4 2019 (PLN 3.54k) decreased by 5.0% compared to average in Q4 2018 3,72 3,67 3,50 3,54
Slide 12: Preliminary financial results
Preliminary financial results 12 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 13: Arctic Paper Group – EBIT evolution 2014-2019 (PLN mn)
Arctic Paper Group – EBIT evolution 2014-2019 (PLN mn) P r e l i m i n a r y f i n a n c ia l f i g u r e s 90 Paper Segment 80 70 60 50 Pulp & Paper Segment 40 30 250 20 10 0 200 -10 -20 150 100 140 Pulp Segment 120 50 100 80 0 2014 2015 2016 2017 2018 2019 60 40 20 0 13 arcticpaper.com
Slide 14: Arctic Paper Group – share price evolution 2019
Arctic Paper Group – share price evolution 2019 ATC.WA Warsaw Stock Exchange ARP.ST OMX Nordic Exchange Stockholm AB 5,00 12,00 4,50 11,00 10,00 4,00 9,00 PLN SEK 3,50 8,00 3,00 7,00 2,50 6,00 2,00 5,00 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 15: Key consolidated figures
Key consolidated figures P r e l i m i n a r y f i n a n c ia l f i g u r e s • YTD DEC 2019 total revenues down -1.3% compared to DEC 2018 (-2.5% paper segment, +1.7% pulp segment revenue); • YTD DEC 2019 EBITDA up by PLN 59,3mn compared to YTD DEC 2018 (PLN 125,8mn paper segment: PLN +59,9mn; PLN
Slide 16: Q4 2019 EBIT Arctic Paper Group – total
Q4 2019 EBIT Arctic Paper Group – total P r e l i m i n a r y f i n a n c ia l f i g u r e s Q42019 EBIT Bridge 30 +3 -3 +54 -1 -10,4 20 +13 +31 -38,0 Q4 2019 EBIT PLN 13,2mn 10 -21,4 0 • PLN 37,4mn lower than Q3 2019 -10 • PLN 34,6mn higher than Q4 2018 -20 -30 EBIT evolution 70 59 58 47 45 51 13 1
Slide 17: Arctic Paper Group – net debt/EBITDA 2016-2019
Arctic Paper Group – net debt/EBITDA 2016-2019 P r e l i m i n a r y f i n a n c ia l f i g u r e s 1,6 Pulp & Paper Segment Net debt/EBITDA* 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 * EBITDA for the last 12 months 17 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 18: Arctic Paper Group – cash flows from operating activities 2016-2019 (PLN mn)
Arctic Paper Group – cash flows from operating activities 2016-2019 (PLN mn) P r e l i m i n a r y f i n a n c ia l f i g u r e s Quarterly operating cash flows 140,0 120,0 Pulp & Paper Segment 100,0 PLN mn 80,0 60,0 40,0 20,0 0,0 -20,0 18 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 19: Summary
Summary 19 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 20: Dividend
Dividend • The management board will recommend to the regular meeting of shareholders a dividend for financial year 2019 in the amount of PLN 0.20 per share. • Considering the average annual share price of PLN 3.49, the dividend yield is 5.7%. Q4 2019 - Preliminary results presentation arcticpaper.c
Slide 21: Arctic Paper Group 2019 summary
Arctic Paper Group 2019 summary P r e l i m i n a r y f i n a n c ia l f i g u r e s • Arctic Paper Group sales FY2019 on the level of PLN 3117.1mn (3158.2mn) with an EBITDA of PLN 278.0mn (218.8mn), a strong cash flow of PLN 342.3mn (148.6mn). • Paper segment, EBITDA FY2019 on the level of PLN 125,
Slide 22: Arctic Group
Arctic Group celuloza papier pulp paper opakowania energia packaging power 22 Q4 2019 - Preliminary results presentation arcticpaper.com
Slide 23: Munken Kraft – Strong by Nature.
Munken Kraft – Strong by Nature. Turning ideas into experience arcticpaper.com