Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q2 2024 Earnings Presentation
29 slides from Arctic Paper's earnings presentation, Aug 12, 2024
Slide 1: Financial results Q2 2024
Financial results Q2 2024
Slide 2: Disclaimer
DISCLAIMER Please read the information below carefully This presentation (the ‘Presentation’) the regulated market, in particular the appearance of unexpected facts or is no certainty that the estimates, was prepared by Arctic Paper SA (the regulated market operated by the W arsaw circumstances whic
Slide 3: Agenda
Agenda 1 Paper 4 Energy 2 Pulp 5 Financial performance 3 Packaging 6 Focus 3 Q2 2024 www.arcticpaper.com
Slide 4: Summary Q2 2024
SUMMARY Q2 2024 Arctic Paper Group Q2 2024 vs. Q2 2023 Net sales EBITDA* Operating CF ROCE** (PLN mn) (PLN mn) (PLN mn) 839.2 836.2 78.4 68.9 +4.1 99.5 14.5% 27.9% (Q2 2024) (Q2 2023) (Q2 2024) (Q2 2023) (Q2 2024) (Q2 2023) (Q2 2024) (Q2 2023) Paper/Pulp EBITDA* Net debt/EBITDA** Paper sales Pulp sa
Slide 5: Summary H1 2024
SUMMARY H1 2024 Arctic Paper Group H1 2024 vs. H1 2023 Net sales EBITDA* Operating CF ROCE** (PLN mn) (PLN mn) (PLN mn) 1 804.6 1 868.5 190.4 254.5 82.2 144.7 14.5% 27.9% (H1 2024) (H1 2023) (H1 2024) (H1 2023) (H1 2024) (H1 2023) (H1 2024) (H1 2023) Paper/Pulp EBITDA* Net debt/EBITDA** Paper sales
Slide 6: Paper
PAPER 6 Q2 2024 www.arcticpaper.com
Slide 7: Market data: fine paper average market prices
GRAPHIC FINE PAPER PRICES – GERMAN MARKET MARKET DATA Fine paper average market prices 1400 1300 1200 JUN 2024 COMPARED TO MAR 2024 1100 UWF average price change 0,8% 1000 CWF average price change 1,6% 900 800 700 JUN 2024 COMPARED TO JUN 2023 600 UWF average price change - 4,2% CWF average price ch
Slide 8: Operating data: production capacity and paper sales volume
PRODUCTION CAPACITY FOR ARCTIC PAPER MILLS OPERATING DATA 99% 99% 85% 71% 76% 66% 70% 55% Average H1 2024 use of production capacity: 76% 21% HIGHER THAN IN H1 2023 H1 2024 total sales volume: 258k tons 23% HIGHER THAN IN H1 2023 PAPER SALES VOLUME 169 168 166 165 168 149 144 117 113 114 113 114 97
Slide 9: Operating data: paper sales revenue
PAPER SALES REVENUE (PLN mn) OPERATING DATA 949 770 689 567 581 574 527 567 574 Total revenue Q2 2024 (PLN 574mn) INCREASED BY 1% COMPARED TO Q2 2023 Average price Q2 2024 (PLN 5.04k) PAPER SALES REVENUE PER TONNE (PLN k)* INCREASED BY 4% COMPARED TO AVERAGE IN Q1 2024 6,57 5,74 5,85 5,14 5,04 4,11
Slide 10: Products
PRODUCTS ADVANCED OFFSET MOST COMPLETE MATT BIGGEST UNCOATED PRODUCTION COATED PAPER ASSORTMENT DESIGN BRAND IN HEART OF EUROPE • Top 3 brands in revenue share • No 1 in European High Quality Bookpaper Sales • No 1 in European Design Paper Sales 10 Q2 2024 www.arcticpaper.com
Slide 11: Products: geographical split of sales
PRODUCTS Geographical split of sales Outside Europe 1% Germany Poland UK & IE Austria & CE France Baltics Rest of Europe 22% 17% 12% 10% 9% 6% 9% The Nordics Benelux 10% 4% 11 Q1 Q2 2023 2024 www.arcticpaper.com www.arcticpaper.com
Slide 12: Client structure
CLIENT STRUCTURE Market segments/products portfolio/target grups BUYING CUSTOMERS Printing Houses Clients who purchase the Group’s paper products directly. NON-BUYING CUSTOMERS Brand Owners Merchants Predominantly indirect customers, who use our Direct customers who purchase, stock and distribute pr
Slide 13: Pulp
PULP 13 Q2 2024 www.arcticpaper.com
Slide 14: Market data: European pulp prices
PULP PIX INDEXES EUROPE (USD PER TONNE) MARKET DATA Pulp – European pulp prices 1 612 1 498 1 430 1 429 1 397 1 340 1 342 1 370 1 300 1 260 1 244 1 240 1 440 1 380 1 380 AVERAGE PRICE Q2 2024 COMPARED TO Q2 2023 1 308 1 280 1 147 1 220 1 140 1 140 1 177 NBSK (long fiber): 15% higher 1 099 BHKP (shor
Slide 15: Operating data: pulp production and deliveries
PULP PRODUCTION (1,000 TONNE) OPERATING DATA Pulp production & deliveries 111 103 92 96 93 91 87 90 93 89 91 91 84 80 Q2 2024 total production: 91k tons 8% HIGHER THAN IN Q1 2024 2% LOWER THAN IN Q2 2023 PULP DELIVERIES (1,000 TONNE) 106 100 102 Q2 2024 total deliveries: 89k tons 93 96 96 90 89 87 8
Slide 16: Operating data: pulp sales revenue and prices
PULP SALES REVENUE (SEK mn) OPERATING DATA Revenue and prices 784 730 711 681 637 681 711 598 Total revenue Q2 2024 (SEK 711mn) INCREASED BY 3% COMPARED TO Q1 2024 PULP SALES REVENUE PER TONNE (SEK) Average price in Q2 2024 (SEK 8.0k per tonne) 8 215 8 439 7 404 7 538 8 025 INCREASED BY 5% COMPARED
Slide 17: Pulp – replacement material for plastic
PULP – REPLACEMENT MATERIAL FOR PLASTIC Pulp Sales (Rottneros) by application 2023 Printing Fiber Other and writing cement 2% paper 2% 3% Tissue paper Board 9% and packaging 29% Special applications 12% Electrotechnical applications Filters 20% 24% 17 Q2 2024 www.arcticpaper.com
Slide 18: Packaging
PACKAGING 18 Q2 2024 www.arcticpaper.com
Slide 19: Development: packaging paper sales
PACKAGING PAPER SALES DEVELOPMENT (t) DEVELOPMENT 20 000 PACKAGING PAPERS: 16 000 Munken Kraft Uncoated packaging paper 12 000 G-Flexmatt 8 000 Coated packaging paper 4 000 0 2018 2019 2020 2021 2022 2023 Last 12 months 19 Q2 2024 www.arcticpaper.com
Slide 20: Power
POWER 20 Q2 2024 www.arcticpaper.com
Slide 21: Arctic Paper Group ongoing power projects
ARCTIC PAPER GROUP ONGOING POWER PROJECTS • PV projects • Biomass boiler • Wood pellet production line • Energy storage systems • Providing system serviced to national grid TSO 21 Q2 2024 www.arcticpaper.com
Slide 22: Kostrzyn solar farm
KOSTRZYN SOLAR FARM 17 MW expansion of PV-farm completed in June Next phase - another 9 MW in Q1 2025 22 Q2 2024 www.arcticpaper.com
Slide 23: Financial performance
FINANCIAL PERFORMANCE 23 Q2 2024 www.arcticpaper.com
Slide 24: EBITDA evolution 2017 – 2024
EBITDA EVOLUTION 2017 – 2024 (PLN mn) Effective hedging of both segments – to stabilize financial results 1 000 900 Q2 2024 adjusted EBITDA PLN 78.4mn 800 PLN 34mn LOWER THAN Q1 2024 700 PLN 9mn HIGHER THAN Q2 2023 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 2022 2023 2024* Paper Segment Pulp
Slide 25: Net debt/EBITDA 2020 – 2024
NET DEBT/EBITDA 2020 – 2024 0,83 0,70 0,57 0,66 0,48 0,49 0,36 0,33 -0,02 -0,22 -0,28 -0,27 -0,19 -0,35 -0,59 -0,73 -0,77 * rolling 12 months 25 Q2 2024 www.arcticpaper.com
Slide 26: Capex structure by segment
Capex structure by segment Arctic Paper Group H1 2024 Paper & Pulp Maintenance capex Energy 37% 35% Pulp expansion Packaging 17% 11% 26 Q2 2024 www.arcticpaper.com
Slide 27: Sharing our story with you
SHARING OUR STORY WITH YOU HEDGED AGAINST VOLATILITY GROWTH INCREASING SHARE PREDICTABLE CAPEX OF PROFITABILITY IN PACKAGING OF RENEWABLE AND AIMED AT CONTINUED & HIGH FLUCTUATION FOSSIL-FREE ENERGY IMPROVEMENTS OF ENERGY ESTABLISHED OWNER POSITION ON THE STABLE SUSTAINABLE OF BRANDS VALUED MARKET W
Slide 28: 4P For Future Arctic
4P For Future Arctic Paper Packaging Pulp Power 28 Q2 2024 www.arcticpaper.com
Slide 29: Thank you
Thank you ARCTIC PAPER