Rottneros AB · OMXSTO:RROS
Rottneros AB — Q4 2023 Earnings Presentation
20 slides from Rottneros AB's earnings presentation, Feb 1, 2024
Slide 1: Q4 report 2023
Q4 report 2023 1 February 2024 Lennart Eberleh President and CEO Monica Pasanen CFO
Slide 2: Highlights
HIGHLIGHTS pa ® ROTTNEROS Production rose by 3 percent to 351,700 tonnes in 2023 Focus on efficiency and cost control to offset cost inflation (VAT Net profit 2023 @ @ Proposed dividend 0.50 SEK per share
Slide 3: Rottneros' investment case
ROTTNEROS’ INVESTMENT CASE GREEN TRANSITION STABLE SHAREHOLDER Sustainable products RETURN Total shareholder return 2023: 11% LONG-TERM PROFITABILITY Broader revenue base Increased volumes STRONG MARKET POSITION IN SELECTED NICHES ROBUST BALANCE SHEET Responsible capital allocation
Slide 4: Market
Market Signs of stabilisation, however uncertain
Slide 5: Pulp market
PULP MARKET A cyclical market USD/ton Average price per quarter of NBSK to Europe SEK/ton 1 600 16 000 Prices rebounding 1 500 15 000 1 400 14 000 1 300 13 000 1 200 12 000 Demand stable 1 100 11 000 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
Slide 6: Supply and demand
SUPPLY AND DEMAND Producers’ inventories and price USD/ton Days of producers’ inventories 1 700 62 Producer stocks balanced 1 500 55 1 300 48 Destocking in value chain 1 100 41 900 34 Supply chain impacted by 700 27 conflict in the Red Sea 500 20 2016 2017 2018 2019 2020 2021 2022 2023 Days NBSK Pri
Slide 7: Containerboard production Europe
PRODUCTION EUROPE JAN-SEP 2023 (JAN-SEP 2022) Decrease -16 % 0% Europe is Rottneros’ -5% main market -10% -15% -20% Rottneros has exited -25% printing and writing papers -30% -35% Newsprint Containerboard Other packaging Tissue Graphic paper Carton Boards Other SOURCE: CEPI
Slide 8: Production Europe 2018 – Nov 2023
PRODUCTION EUROPE 2018 – NOV 2023 100% Production decreasing by 90% 14% 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 1-11 2023 Total annual volume 2023 approx. 70 mio tonnes SOURCE: CEP
Slide 9: Deliveries of chemical market pulp
DELIVERIES OF CHEMICAL MARKET PULP Change 2022 and Jan – Nov 2023 2022 Jan - Nov 2023 30% Demand has increased 25% by 3.5% 20% 15% 10% 5% China accounts for 0% more than 40% of the -5% pulp market -10% -15% -20% Europe North America Latin America China Other markets SOURCE: PPPC
Slide 10: Rottneros' sales per application
ROTTNEROS’ SALES PER APPLICATION Sales of pulp 2023 (2022) Printing- and writing paper 3 (10)% 2 (2)% Fiber cement Tissue 9 (4)% 29 (32)% Special applications 12 (14)% Board and packaging Electrotechnical applications 24 (20)% Filter 20 (15)% Other 2 (3) %
Slide 11: Financials
Financials Challenging quarter Strong balance sheet
Slide 12: EBIT Q4 2023 vs. Q4 2022
EBIT Q4 2023 VS. Q4 2022 (MSEK) Lower sales prices High wood cost Focus on fixed costs
Slide 13: EBIT 2023 vs. 2022
EBIT 2023 VS. 2022 (MSEK) Turnover for comparable units increased by 3% Lower prices in USD, partly offset by currency Cost of wood high, availability good
Slide 14: Profit development
PROFIT DEVELOPMENT MSEK 300 Disappointing 250 quarter 200 150 EBIT-margin 5% EBIT 100 FY 2023 EBITDA 50 0 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 -50 -100 -150
Slide 15: Efficient and solid balance sheet
EFFICIENT AND SOLID BALANCE SHEET MSEK % Operational cash flow Net debt/cash Equity/assets % 600 90 Available liquidity 528 MSEK 500 80 400 70 Net cash of 105 MSEK 300 60 200 50 Equity/assets 66% 100 40 0 30 Proposed dividend 0,50 SEK per share -100 20 2019 Q2 Q3 Q4 2020 Q2 Q3 Q4 2021 Q2 Q3 Q4 2022
Slide 16: The way ahead
pay i) ROTTNEROS The way ahead
Slide 17: Trends favouring pulp
TRENDS FAVOURING PULP 2 260 MSEK RENEWABLE TISSUE E-COMMERCE ENERGY SUSTAINABILITY
Slide 18: Innovation and development
INNOVATION AND DEVELOPMENT Rottneros Packaging JV Poland Blue Ocean Closures
Slide 19: Summary
SUMMARY Strong balance sheet Positive FY result Q4 impacted by stop in Vallvik
Slide 20: Questions and answers
Questions and answers Lennart Eberleh Monica Pasanen President and CEO CFO