Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Metsä Group — H1 2018 Earnings Presentation
26 slides from Metsa Board Oyj Class A's earnings presentation, Aug 2, 2018
Slide 1: Metsä Group Half year financial report 2018
Metsä Group Half year financial report 2018 Ilkka Hämälä President and CEO 2 August 2018
Slide 2: Metsä Group makes a strong result
Metsä Group – Q2 Metsä Group makes a strong result • Sales EUR 2,904 million (1–6/2017: EUR 2,451 million) • Operating result* EUR 418 million (EUR 247 million) • Operating result of sales* 14.4% (10.1%) • Return on capital employed* 16.9% (11.5%) • The growth of sales was mainly due to higher deliv
Slide 3: Events in the second quarter
Metsä Group – Q2 Events in the second quarter • A prefeasibility study on renewal of Kemi pulp mill was launched • An innovation company Metsä Spring was established. Textile fibre production the first concept to be included in the portfolio • Investments of Wood Products Industry and of Tissue and
Slide 4: Sales quarterly
Metsä Group – Q2 Sales quarterly EUR million 1600 1,477 1,428 1,330 1,328 1,254 1,265 1,248 1,255 1,225 1,205 1,235 1,260 1,204 1,216 1200 1,156 1,184 1,143 1,175 800 400 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 4 2 August 2018 Met
Slide 5: Comparable operating result
Metsä Group – Q2 Comparable operating result EUR million 250 208 210 200 185 149 150 137 134 129 123 128 117 120 119 105 104 109 103 107 100 92 50 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 5 2 August 2018 Metsä Group
Slide 6: Change in comparable operating result
Metsä Group – Q2 Change in comparable operating result EUR million Comparable operating result 1–6/2017 246.9 Sales prices 305.7 Sales volumes 84.7 Exchange rates -81.4 Raw materials and energy -63.4 Employee costs -9.2 Maintenance and other fixed costs -20.0 Depreciation -31.1 Others -14.2 Comparab
Slide 7: Items affecting comparability
Metsä Group – Q2 Items affecting comparability EUR million 1–6/2018 Operating result (IFRS) 412.3 Items affecting comparability: Metsä Board / Efficiency improvement programme at Husum mills -4.1 Metsä Board / Divestment of Teollisuuden Voima’s Meri-Pori coal-fired power plant -1.7 Metsä Board / oth
Slide 8: Comparable ROCE
Metsä Group – Q2 Comparable ROCE % 20 16.9 15 13.7 11.3 11.0 11.5 Target >10% 10 5 0 1–6/2014 1–6/2015 1–6/2016 1–6/2017 1–6/2018 8 2 August 2018 Metsä Group
Slide 9: Equity ratio
Metsä Group – Q2 Equity ratio % 60 51.2 50 45.0 43.2 43.9 40 37.9 30 20 10 0 12/2014 12/2015 12/2016 12/2017 6/2018 9 Metsä Group 2 August 2018
Slide 10: Interest-bearing net liabilities
Metsä Group – Q2 Interest-bearing net liabilities EUR million 1500 1200 1,033 993 938 900 841 610 600 300 0 12/2014 12/2015 12/2016 12/2017 6/2018 10 2 August 2018 Metsä Group
Slide 11: Capital expenditure
Metsä Group – Q2 Capital expenditure EUR million 800 600 400 758 608 492 Full year 200 estimate 143 98 0 1–12/2014 1–12/2015 1–12/2016 1–12/2017 1–6/2018 11 2 August 2018 Metsä Group
Slide 12: Personnel
Metsä Group – Q2 Personnel 12000 10,410 9,599 9,913 9,300 9,126 9000 6000 3000 0 12/2014 12/2015 12/2016 12/2017 *) 6/2018 *including approximately 1,000 summer employees 12 2 August 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 EUR million • Due to good harvesting and transport 600 18 conditions, the stocks of wood grew c
Slide 14: Wood products demand good despite of the UK
Metsä Wood – Wood Products Industry Wood products demand good despite of the UK • The sales of engineered wood products was at the previous year’s level. Sales of the UK business Sales and comparable operating result EUR million declined 150 15 • The average prices of plywood products increased 130
Slide 15: Strong result in Pulp Industry
Metsä Fibre – Pulp and Sawn Timber Industry Strong result in Pulp Industry • The demand for pulp remained strong Sales and comparable operating result EUR million • The operating result of Metsä Fibre increased clearly due to higher sales volumes and 700 629 210 favourable price development 601 600
Slide 16: Price of pulp (PIX) 2010–Q2/2018
Metsä Fibre – Pulp and Sawn Timber Industry Price of pulp (PIX) 2010–Q2/2018 USD EUR 1300 1300 1200 1200 1100 1100 1000 1000 900 900 800 800 700 700 600 600 500 500 400 400 ´10 ´11 ´12 ´13 ´14 ´15 ´16 ´17 ´18 Hardwood/EUR Softwood/EUR Hardwood/USD Softwood/USD Source: Foex 16 2 August 2018 Metsä Gro
Slide 17: Paperboard deliveries at record level in the second quarter
Metsä Board – Paperboard Industry Paperboard deliveries at record level in the second quarter • Paperboard deliveries grew by 6% in the first half Sales and comparable operating result of the year EUR million • Sales and profitability grew thanks to increased 600 90 519 deliveries and prices of pape
Slide 18: Prices of folding boxboard and white-top kraftliner in Europe 2011–Q2/2018
Metsä Board – Paperboard Industry Prices of folding boxboard and white-top kraftliner in Europe 2011–Q2/2018 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 2 August 2018 Metsä Group
Slide 19: Tissue and Cooking Papers’ production efficiency is being improved
Metsä Tissue – Tissue and Cooking Papers Tissue and Cooking Papers’ production efficiency is being improved • The growth in Metsä Tissue’s sales was primarily Sales and comparable operating result due to increased sales volumes EUR million • The result was weakened by the price of pulp 300 30 261 25
Slide 20: Outlook for the business areas
Summary Outlook for the business areas • Demand for wood focuses on regeneration and thinning felling that can be harvested in the summer and, in energy wood, on crown wood • Demand for wood products is expected to remain strong, which improves order books of plywood in particular. Demand of the dis
Slide 21: Near-term outlook
Summary Near-term outlook • Metsä Group’s comparable operating result is in the third quarter of 2018 expected to be roughly at the same level as in the second quarter of 2018 21 2 August 2018 Metsä Group
Slide 22: Prefeasibility study on renewal of Kemi pulp mill
Renewal of Kemi pulp mill Prefeasibility study on renewal of Kemi pulp mill • Replacing the current pulp mill with a new bioproduct mill – Clearly larger in terms of production capacity, wood consumption and impact on employment – The self-sufficiency in electricity would be considerably higher – Th
Slide 23: The prefeasibility study completed in summer 2019
Renewal of Kemi pulp mill The prefeasibility study completed in summer 2019 • Availability of wood raw material and development potential of Kemi’s infrastructure and logistic connections are in focus • The prefeasibility study is led by Timo Merikallio, who was responsible for the planning and cons
Slide 24: Metsä Spring – A new innovation company
Metsä Spring Metsä Spring – A new innovation company Extensive cooperation a prerequisite for innovations • Metsä Group has moved to the new era in its innovation activity with the establishment of Metsä Spring • Metsä Spring will, together with partner organisations, invest in new endeavours to ide
Slide 25: Textile fibres the first concept in Metsä Spring’s portfolio
Metsä Spring Textile fibres the first concept in Metsä Spring’s portfolio • Metsä Spring is planning a greenfield demo plant of an industrial scale integrated to the bioproduct mill in Äänekoski – Capacity 500 tonnes per year – International planning team – Investment decision in 2018 • The environm
Slide 26: Make the most of Metsä
Make the most of Metsa iy Uy Metsd