Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q4 2020 Earnings Presentation
30 slides from Arctic Paper's earnings presentation, Mar 6, 2021
Slide 1: Financial results Q4 2020
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Financial results Q4 2020 1 6 March 2021
Slide 2: Disclaimer
Disclaimer Please read the information below carefully This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the ‘Company’) for The Company is not obliged to publish updates and amendments to the information, data and information purposes only for use by investors, banks and the
Slide 3: Content
Content 1. 4Q20 and FY2020 summary 2. Paper segment • market • operating data • products 3. Pulp segment • market • operating data • products 4. Finacials 5. Outlook 3 Q4 2020 - financial results presentation
Slide 4: Summary Q4 2020
Summary Q4 2020 Arctic Paper Group Q4 2020 vs. Q4 2019 Net sales EBITDA Operating CF ROCE * (PLNmn) (PLNmn) (PLNmn) 714,7 25,1 23,9 10.6% (Q4 2020) (Q4 2020) (Q4 2020) (Q4 2020) vs. vs. vs. vs. 739,7 34,9 117,4 14.2% (Q4 2019) (Q4 2019) (Q4 2019) (Q4 2019) Paper/Pulp Net debt Paper sales Pulp sales
Slide 5: Summary FY 2020
Summary FY 2020 Arctic Paper Group FY 2020 vs. FY 2019 Net sales EBITDA Operating CF ROCE * (PLNmn) (PLNm) (PLNm) 2 847,5 271,4 211,5 10.6% (FY2020) (FY 2020) (FY 2020) (FY 2020) vs. vs. vs. vs. 3 117,1 278,0 342,3 14.2% (FY 2019) (FY 2019) (FY 2019) (FY 2019) Paper/Pulp Net debt Paper sales Pulp sa
Slide 6: 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 7: Paper Segment
Paper Segment
Slide 8: Market data: Deliveries of fine paper in Europe
Market data: Deliveries of fine paper in Europe Q4 2020 compared to Q4 2019 Monthly deliveries of fine paper in Europe (t) Uncoated w oodfree (UWF) down -7.1% ( Ar c t i c P a p e r u n c o a t e d / Am b e r d o w n - 0 . 6 %) Coated w oodfree (CWF) down -18.3% ( Ar c t i c P a p e r d o w n - 1 2
Slide 9: Market data: Fine paper average market prices
Market data: Fine paper average market prices DEC 2020 compared to SEP 2020 Graphic fine paper prices – German market UWF average price change -0.6% 1000 CWF average price change -1.1% 900 800 DEC 2020 compared to DEC 2019 700 UWF average price change -6.1% 600 CWF average price change -6.5% UWF 80g
Slide 10: Operating data: Arctic Paper mills – output & input
Operating data: Arctic Paper mills – output & input Average Q4 2020 use of production Production and use of production capacity for all paper mills capacity: 90% 600 120% 98% 99% 96% 7.0% higher than in Q3 2020 480 90% 92% 100% 90% 360 83% 80% Q4 2020 total production volume: 240 69% 60% 150k tons 1
Slide 11: Operating data: Revenue and revenue per tonne
Operating data: Revenue and revenue per tonne Paper sales revenue (PLNmn) 670 Total Q4 2020 (PLN 507mn) increased by 600 543 559 539 538 3.2% compared to Q3 2020 532 507 532 507 530 460 390 404 320 250 Paper sales revenue per tonne (PLNk)* Average Q4 2020 (PLN 3.47k) increased by 4,0 1.0% compared t
Slide 12: Products
Products Top 3 Brands in revenue share Geographical split of sales No 1 in European High Quality Bookpaper Sales Rest of No 1 in European Design Paper Sales Europe; 13% G e r m a n y; 2 3 % Outside Biggest Uncoated Europe; 3% Design Brand Benelux; 4% Advanced Offset S we d e n ; 5 % production in he
Slide 13: Products: Market segments/products portfolio/target groups
Products: Market segments/products portfolio/target groups Printing Houses Clients who purchase the Group’s paper products directly Direct customers who purchase, stock and distribute the Group’s paper Wholesalers for resale to other users Direct and indirect customers, who uses the Group’s paper pr
Slide 14: Products: Samples
Products: Samples Christian Dior St. Valentine Journal Koenigsegg catalouge Books 14 Q4 2020 - financial results presentation
Slide 15: Pulp Segment
Pulp Segment
Slide 16: Market data: Pulp segment – European pulp prices
Market data: Pulp segment – European pulp prices Average price Q4 2020 compared to Q4 2019 Pulp PIX Indexes Europe NBSK (long fibre): 3.5% higher BHKP (short fibre): 2.4% low er Average price Q4 2020 compared to Q3 2020 NBSK (long fibre): 1.6% higher Source: Arctic Paper based on Foex data. BHKP (sh
Slide 17: Operating data: Pulp production & deliveries
Operating data: Pulp production & deliveries Pulp production (1 000 tonne) 120 110 Q4 2020 total production: 95k tons 108 109 100 100 100 98 100 100 98 100 100 94 95 95 13.6% low er than in Q3 2020 80 60 40 Pulp deliveries (1 000 tonne) 120 111 110 107 Q4 2020 total deliveries: 107k tons 98 98 99 10
Slide 18: Operating data: Revenue and revenue per tonne
Operating data: Revenue and revenue per tonne Pulp sales revenue (SEKmn) 750 Total Q4 2020 (SEK 490mn) decreased 576 580 582 by 3.5% compared to Q3 2020 600 546 510 490 546 490 450 300 150 Pulp sales revenue per tonne (SEK) 12 000 11 056 10 047 9 900 Average Q4 2020 (SEK 7 382 per tonne) 8 226 9 000
Slide 19: Products: Pulp sales by application
Products: Pulp sales by application Rottneros’ sales by application 2020 (2019) Specialities 11%; (12%) Board and Packaging 28%; (30%) Electrotechnical applications 12%; (8%) Filter 16%; (15%) Printing and Wrighting 21%; (23%) Tissue 12%; (13%) 19 Q4 2020 - financial results presentation
Slide 20: Financial results
Financial results 20
Slide 21: Key consolidated figures
Key consolidated figures • YTD DEC 2020 total revenues down - 8.7% compared to YTD DEC 2019 (-9.8% paper segment, - 5.9% pulp segment). • YTD DEC 2020 EBITDA down by PLN 6,7mn compared to YTD DEC 2019 (PLN 235,3mn paper segment: PLN +109,5mn; PLN 36,0mn pulp segment: PLN -116,1mn). • YTD DEC 2020 Ne
Slide 22: Arctic Paper Group – EBITDA evolution 2014-2020 (PLNmn)
Arctic Paper Group – EBITDA evolution 2014-2020 (PLNmn) Effective hedging of both segments in the period of 7 years Paper Segment 250 200 150 100 50 0 2014 2015 2016 2017 2018 2019 2020 22 Q4 2020 - financial results presentation
Slide 23: Q4 2020 EBITDA Arctic Paper Group – total
Q4 2020 EBITDA Arctic Paper Group – total Q4 2020 EBITDA Bridge Q4 2020 EBITDA PLN 25,1mn +13 -30 60 +1 0 PLN 61,3mn low er than Q3 2020 50 +31 +35 -17 40 +25 PLN 9,8mn low er than Q4 2019 30 -7 20 10 0 EBITDA evolution 125 112 100 82 89 86 75 72 35 50 48 25 35 25 25 0 3 23 Q4 2020 - financial resul
Slide 24: Energy prices development – Swedish market hedging
Energy prices development – Swedish market hedging Electricity prices: spot price and ACT hedge (€/MWh) SE3 and hedge (€/MWh) volatile energy market resulted w ith 120 a high spot prices in January and February in Sw eden 100 80 For 2021 electricity is hedged at a price 60 of 26,8 €/MWh 40 20 0 15 Q
Slide 25: Capex in paper segment
Capex in paper segment Recently finished key investments Key investments in 2021+ Expanded hydropow er plant in Munkedal Planned capex level below D&A in 2021 The investment of over SEK 100mn increased the Pilot investment in solar cells at Arctic Paper pow er from 2 to 6 MW Kostrzyn Several project
Slide 26: Profit sharing
Profit sharing 2020 Profit sharing proposition Capex Dividend to shareholders capex aimed at continued Management will propose DPS payout of improvements 0,3 PLN PLN 103.6mn New products and R&D activities Deleverage of balance sheet Expanding packaging offer and other maintaining a safe financing s
Slide 27: Outlook
Outlook 27
Slide 28: Outlook for 2021
Outlook for 2021 • Soaring prices of pulp are favourable for pulp segment profitability. • Company is resistant for high prices of electricity in Sweden and in Poland due to Energy prices hedging policy. • Combination of pulp and paper continues to stabilize results as fluctuations offset each other
Slide 29: Sharing our story with you
Sharing our story with you HEDGED AGAINST INCREASING SHARE PREDICTABLE VOLATILITY OF BALANCED PROFIT OF RENEWABLE AND CAPEX AIMED AT PROFITABILITY & SHARING FOSSIL-FREE CONTINUED HIGH FLUCTUATION PROPOSITION ENERGY IMPROVEMENTS OF ENERGY ESTABLISHED OWNER OF BRANDS POSITION ON THE SUSTAINABLE STABLE
Slide 30: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation