Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q3 2020 Earnings Presentation
23 slides from Arctic Paper's earnings presentation, 2020
Slide 1: Arctic Paper S.A. Financial results Q3 2020
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Financial results Q3 2020 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 of Q3 2020 2. COVID-19 – update 3. Market environment & operations 4. Financial results 5. Summary
Slide 4: Summary of Q3 2020
Summary of Q3 2020 Q3 2020 - financial results presentation arcticpaper.com
Slide 5: Financial Summary Q3 2020
Financial Summary Q3 2020 Arctic Paper Group Q3 2020 vs. Q3 2019 PLN PLN PLN PLN 702,8 mn 59,1 mn 117,5 mn 12,0% (794,4 mn) (50,6 mn) (119,4 mn) (10,8%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 5 Q3 2020 - financial results presentation arcticpaper.com
Slide 6: Financial Summary YTD SEP 2020
Financial Summary YTD SEP 2020 Arctic Paper Group YTD SEP 2020 vs. YTD SEP 2019 PLN PLN PLN PLN 2 132,8 mn 163,0 mn 187,5mn 12,0% (2 377,5 mn) (178,3 mn) (224,9 mn) (10,8%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 6 Q3 2020 - financial results presentation arcticpaper.com
Slide 7: Covid-19 – current situation in the Group
Covid-19 – current situation in the Group Q3 2020 - financial results presentation arcticpaper.com
Slide 8: Covid-19 – current situation in the Group
Covid-19 – current situation in the Group • The pandemic continues to be a challenging and unsecure environment to maneuver in; • Individual companies in the Group follow the rules and recommendations in each country where we operate; • We implemented special rules and procedures to protect the heal
Slide 9: Market Environment & Operation
Market Environment & Operation 9 Q3 2020 - financial results presentation arcticpaper.com
Slide 10: Deliveries of fine paper
Deliveries of fine paper Arctic Paper – better than market Q3 2020 compared to Q3 2019 Monthl y deliveries of fine paper in Europe • Uncoated woodfree down -11.6% 1 000 ( Ar ct i c Paper uncoat ed/ Am ber dow n - 2. 3%) 750 670 • Coated woodfree down -25.4% 498 603 553 500 ( Ar ct i c Paper dow n -
Slide 11: Paper segment - fine paper prices
Paper segment - fine paper prices Graphic fine paper prices – German market SEP 2020 compared to JUN 2020 • UWF segment average price change -1.5% 900 • CWF segment average price change -2.0% 800 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI dat
Slide 12: Pulp segment - pulp prices
Pulp segment - pulp prices Average price Q3 2020 compared to Q3 2019 Pulp PIX Indexes Europe 1 500 1 400 • NBSK (long fibre): 8.3% 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): 16.6% lower 900 906 979 1 030 1 050 1 050 1 026 973 851 820 840 859 840 800
Slide 13: Output from Arctic Paper mills
Output from Arctic Paper mills Production and use of production capacity for all paper mills 98% 99% 97% 450 95% 96% 100% 92% Average Q3 2020 use of production capacity: 83% 83% 300 69% 80% • 14.5% higher than in Q2 2020 150 60% 164 166 161 167 Q3 2020 total production volume: 143k tons 149 154 114
Slide 14: Paper segment - revenue and revenue per tonne
Paper segment - revenue and revenue per tonne Paper sales revenue 592 588 600 574 573 564 542 Total Q3 2020 (PLN 492mn) increased by 550 492 492 21.8% compared to Q2 2020 500 450 404 400 404 350 300 250 Paper sales revenue per tonne Average Q3 2020 (PLN 3.44k) decreased 3,72 by 2.5% compared to aver
Slide 15: Financial results
Financial results 15 Q3 2020 - financial results presentation arcticpaper.com
Slide 16: Arctic Paper Group – EBIT evolution 2014-2020 (PLN mn)
Arctic Paper Group – EBIT evolution 2014-2020 (PLN mn) Effective hedging of both segments in the period of 7 years 130 Paper Segment 110 90 Pulp & Paper Segment 70 50 200 30 180 10 160 -10 2014 2015 2016 2017 2018 2019 2020 YTD SEP 140 2020 YTD SEP 120 100 80 140 Pulp Segment 60 120 40 100 20 80 0 2
Slide 17: Arctic Paper Group – share price evolution 2019-2020
PLN 2,00 2,50 3,00 3,50 4,00 4,50 5,00 5,50 02.01.2019 02.02.2019 02.03.2019 02.04.2019 02.05.2019 02.06.2019 02.07.2019 02.08.2019 02.09.2019 02.10.2019 02.11.2019 ATC.WA 02.12.2019 02.01.2020 02.02.2020 02.03.2020 02.04.2020 02.05.2020 02.06.2020 02.07.2020 02.08.2020 02.09.2020 02.10.2020 Warsaw
Slide 18: Key consolidated figures
Key consolidated figures • YTD SEP 2020 total revenues down -10.3% compared to YTD SEP 2019 (-11.4% paper segment, -7.6% pulp segment); • YTD SEP 2020 EBITDA up PLN 3,1mn compared to YTD SEP 2019 (PLN 184,4mn paper segment: PLN +89,6mn; PLN 61,9mn pulp segment: PLN -86,5mn); • YTD SEP 2020 Net resul
Slide 19: Q3 2020 EBIT Arctic Paper Group – total
Q3 2020 EBIT Arctic Paper Group – total Q3 2020 EBIT Bridge 80 +1 +6 -12,6 70 +5 60 +82 +59 50 +51 -46,6 Q3 2020 EBIT PLN 59,1mn 40 30 • PLN 34,9mn higher than Q2 2020 20 10 -25,3 0 • PLN 8,5mn higher than Q3 2019 -10 -20 -30 EBIT evolution 59 80 70 51 58 51 59 59 13 24 -21 Q3 2020 - financial resul
Slide 20: Arctic Paper Group – Net debt/EBITDA 2016-2020
Arctic Paper Group – Net debt/EBITDA 2016-2020 1,6 Net Debt/EBITDA* Pulp & Paper Segment 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 * EBITDA for the last 12 months 20 Q3 2020 - financial results presentation arcticpaper.com
Slide 21: Summary
Summary 21 Q3 2020 - financial results presentation arcticpaper.com
Slide 22: Arctic Paper Group Q3 2020 summary
Arctic Paper Group Q3 2020 summary • Arctic Paper Group sales Q3 2020 on the level of PLN 702.8 mn (794.4 mn) with an EBITDA of PLN 86.4 mn (71.5 mn). • Paper segment, sales on the level of PLN 491.9 mn (PLN 563.8 mn) with an EBITDA of PLN 69.7 mn (PLN 43.2 mn). • Paper segment, YTD SEP 2020 EBITDA
Slide 23: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com