Koskisen Oyj · OMXHEX:KOSKI
Koskisen Oyj — Q1 2023 Earnings Presentation
26 slides from Koskisen Oyj's earnings presentation, May 24, 2023
Slide 1: Koskisen Interim Report January-March 2023
Koskisen’s profitability was at a good level considering the market situation – the Panel Industry business segment recorded a strong result Koskisen Corporation Interim Report January-March 2023 Jukka Pahta, CEO 24 May 2023
Slide 2: Agenda
Agenda ⚫ Growth strategy moving ahead as planned ⚫ Financial and operational development Q1/2023 ⚫ Raw material procurement ⚫ Sustainability integrated into operational activities ⚫ Profit guidance and short-term outlook ⚫ Questions can be asked through the question function of the webcast. Question
Slide 3: Highlights
Highlights Customer satisfaction The Group’s revenue The improved Dividends for the NPS 64 – in line with and profitability were profitability of the financial year 2022 its strategy, Koskisen at a good level, Panel Industry are based on a strong has successfully considering the segment year – in ac
Slide 4: Growth strategy moving ahead as planned
Growth strategy moving ahead as planned
Slide 5: 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: 2022 Growth Revenue EUR 500 million, including both organic and inorganic growth Revenue 317.7 M€
Slide 6: Strong growth strategy is being executed as planned
Strong growth strategy is being executed as planned New wood Efficiency Systematic Product Organic and processing unit improvements development Inorganic growth Grow production Smaller investments Zero Potential capacity and effici- at the site SENSi selective ency from 2024 acquisitions onwards Jär
Slide 7: 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 55,4 52,7 6,3 x 34,1 29,0 0,6 x 13,0 -11,9 -0,4 x -28,5 -0,9 x 2020 2021 2022 Q1 2023 2020 2021 2022 Q1 2023 2020 2021 2022 Q1 2023 Koskisen has a very moderate Positive earnings development has Pos
Slide 8: Financial and operational development Q1/2023
Financial and operational development Q1/2023
Slide 9: Financial development Q1 2023
Financial development Q1 2023 Revenue, M€ Adjusted EBITDA, M€ Adjusted EBITDA, % 78,8 73,2 17,3 % (20,5) 16,2 12,6 Q1 2022 Q1 2023 Q1 2022 Q1 2023 -7,1 % -21,9 % 24 May 2023 9
Slide 10: Strong financial position
Strong financial position January-March 2022 EUR million 1-3 1-3 Change 1-12 Unless otherwise stated 2023 2022 2022 Revenue 73.2 78.8 -7.1 317.7 EBITDA 12.6 16.0 -21.3 66.3 Adjusted EBITDA 12.6 16.2 -21.9 66.6 Operating profit (EBIT) 10.7 14.0 -23.8 58.2 Profit for the period 8.8 12.1 -27.1 46.0 Ear
Slide 11: Sawn Timber: revenue decreased and profitability weakened
Sawn Timber Q1 2023 Revenue decreased and profitability weakened along with the sawn timber market prices Revenue, M€ ⚫ The decrease in revenue was mainly due to the 165,4 decrease in prices caused by the global market situation and the somewhat lower volumes when compared to the reference period 43
Slide 12: The ramp-up of the new wood processing unit will start in July 2023
The ramp-up of the new wood processing unit will start in July 2023 ⚫ The construction of the new wood processing unit has progressed according to plan ⚫ Planned start at the beginning of July ⚫ Full production capacity will be reached at the beginning of 2024 In the first stage, production will inc
Slide 13: 24 May 2023
24 May 2023 13
Slide 14: In the long term, the demand for wood products in construction will increase
In the long term, the demand for wood products in construction will increase ⚫ Tightening emission legislation and growing construction volumes support the increasing use of wood products 24 May 2023 14 Sources: AFRY Market Study, IHS Markit Ltd
Slide 15: Panel Industry: customer demand and prices supported revenue and profitability
Panel Industry Q1 2023 Customer demand and strengthened average prices supported revenue growth and profitability Revenue, M€ ⚫ The increase in revenue was mainly driven by continued strong customer demand and the improved average price 152,1 of products 41,1 ⚫ The improvement in EBITDA was particul
Slide 16: Systematic product development to launch new sustainable products
Systematic product development to launch new sustainable products ⚫ SENSi sensor-equipped smart wood panels were recognised in the New Wood competition as an innovation for reducing climate impacts and transportation costs, as well as improving safety ⚫ SENSi is a smart floor panel designed to be us
Slide 17: Innovative high value-added panel products reduce cyclicality
Innovative high value-added panel products reduce cyclicality ⚫ Higher-margin innovative panel products have a wide range of applications They support strong demand in spite of the increased economic uncertainty ⚫ End uses Logistics Furniture and carpentry Construction ⚫ A broad customer base in var
Slide 18: Raw material procurement
6) KKOSKISEN Raw material procurement
Slide 19: Raw material procurement volumes will increase when the new sawmill becomes operational
Raw material procurement volumes will increase when the new sawmill becomes operational ⚫ The ramp-up of the new wood processing unit starting in 7/2023 will increase the total consumption of wood raw material by 200,000 m3 per year (from 2024 onwards) Increased procurement volumes not only for soft
Slide 20: Wood market outlook
Wood market outlook ⚫ The outlook for wood raw material in the coming months has remained stable ⚫ Wood raw material inventories have remained at the targeted levels throughout the first months of 2023 ⚫ The prices of wood raw material remain high ⚫ Continued strong demand for pulpwood and forest co
Slide 21: Sustainability integrated into operational activities
Sustainability integrated into operational activities
Slide 22: 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 23: Sustainability highlights
Sustainability highlights The carbon Renewable fuels Scope 1&2 The share of Overall handprint is 2.9 accounted for emissions in certified workplace times larger 85% 2022 roundwood survey score than the carbon of total energy 20,022 tCO2e 81% 3.85 footprint consumption 24 May 2023 23
Slide 24: Profit guidance and short-term outlook
Profit guidance and short-term outlook
Slide 25: Profit guidance for 2023 unchanged
Profit guidance for 2023 unchanged ⚫ Profit guidance unchanged: 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 profitability of the Sawn Timber Industry segment is expected to decrease compared to the level
Slide 26: Thank you.
Thank you.