Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q2 2011 Earnings Presentation
19 slides from Arctic Paper's earnings presentation, Aug 31, 2011
Slide 1: Arctic Paper results for 2nd quarter of 2011
Arctic Paper results for 2nd quarter of 2011 Michał Jarczyński, CEO Michał Bartkowiak, CFO Warsaw, August 31, 2011
Slide 2: Disclaimer
Disclaimer Please read the information below carefully This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the ‘Company’) for information purposes only for use by investors, banks and the Company’s customers as well as market analysts and under no circumstances may it be treate
Slide 3: Agenda
Agenda Market environment Financial results Summary 3
Slide 4: Market environment
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Slide 5: Market environment: Supply of fine paper in Europe
Market environment Supply of fine paper in Europe 2q 2011 vs 1q 2011 Deliveries of paper in Europe ('000 metric tonnes) -7,6 4 000 3 408 3 148 3 429 3 445 3 408 3 500 3 226 3 192 3 148 3 203 3 166 1 621 1 448 2 919 2 925 3 000 1 788 1 700 2 500 2 000 1 797 1 813 1 788 1Q 2011 2Q 2011 1 683 1 654 1 6
Slide 6: Market environment: Fine paper prices
Market environment Fine paper prices In the beginning of 2q 2011 prices of fine paper slightly Graphic paper prices in EUR - German market increased , but due to increasing pressure from declining 950 demand side in the end of May and June paper prices 900 started to decline. 850 From December 2
Slide 7: Market environment: Exchange rates (PLN)
Market environment Exchange rates Changes in exchange rate EUR and USD vs. PLN PLN/EUR 5,00 4,70 EUR/PLN +0,3 (1,3) USD/PLN 4,47 4,50 3,95 3,96 4,01 3,96 4,22 4,11 4,15 4,01 3,99 3,96 3,99 4,00 3,86 3,54 3,39 3,50 3,17 2,93 2,96 Average Average Average Average 3,00 2,89 2,85 2,87 2,82 1Q 2011 2Q 201
Slide 8: Market environment: Exchange rates (SEK)
Market environment Exchange rates 12,00 Changes in exchange rate EUR and USD vs. SEK EUR/SEK EUR/SEK 10,98 10,85 11,00 USD/SEK +2,1 (6,5) 10,27 10,22 10,00 9,71 9,64 9,51 8,83 9,01 9,01 9,15 8,97 8,93 9,17 9,00 8,27 7,70 7,79 8,00 7,13 7,22 6,99 6,71 7,00 6,28 6,33 6,71 Average Average Average Avera
Slide 9: Market environment: Exchange rates (EUR/USD, PLN/SEK)
Market environment Exchange rates 1,60 Changes in exchange rate EUR vs. USD 2,80 Changes in exchange rate PLN vs. SEK EUR/USD PLN/SEK 2,70 1,50 1,46 1,44 1,45 2,60 2,51 1,42 1,41 2,50 2,50 1,40 1,36 1,33 1,34 1,34 2,40 2,43 2,42 2,30 1,30 2,30 2,23 2,34 2,29 2,30 2,20 2,27 1,20 1,22 2,10 1,10 2,00 3
Slide 10: Market environment: Pulp prices
Market environment Pulp prices Pulp prices (USD/tonne) 1 100 As of the end of 2q 2011 pulp prices 1 023 1 000 976 973 949 977 were at USD 1.023 per tonne for NBSK 889 and USD 874 per tonne for BHKP. The 900 average price for NBSK in 2q 2011 was 918 799 874 870 800 849 849 6,5% higher than in 2q 20
Slide 11: Financial results
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Slide 12: Use of production capacity and sales volume
Financial results Use of production capacity and sales volume Use of production capacity for all mills 120% In 2q 2011 use of production capacity for all Group mills was 110% 91% and 5,9% lower than in 1q 2011. Main reason of this decline was lower level of orders and production stops related 98%
Slide 13: Sales revenue
Financial results Sales revenue Total and LFL sales revenue (PLN ‘000) 800,0 -9,0% -0,9% AP Group sales revenues in 2q 2011 were PLN 577 mln, 627 635 representing decrease of 9,0% compared to 1q 2011 and 583 598 577 583 577 600,0 0,9% on 2q 2010. 479 400,0 583 577 452 439 472 436 200,0 422 425 ,0
Slide 14: Preliminary financial results: Main items on profit and loss statement
Preliminary financial results Main items on profit and loss statement 2Q 2011 vs. 2Q 2011 vs. YTD 2Q'2011 vs. 2Q 1Q 2Q 1Q 2011 2Q 2010 YTD 2Q YTD 2Q YTD 2Q'2010 PLN'000 2011 2011 2010 Change % Change % 2011 2010 Change % Revenues 577 487 634 632 582 948 -9,0% -0,9% 1 212 119 1 062 308 14,1% Gross pr
Slide 15: Summary
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Slide 16: Summary of 2nd quarter of 2011
Summary of 2nd quarter of 2011 Weaker than expected demand in the fine paper segment in Europe, particularly in June, that caused lower capacity utilisation in the AP Group mills (91% in 2q 2011, including 85% in June) and strong price pressure on the market. Temporary production stops in selected
Slide 17: Actions taken
Actions taken Maximization of efforts to increase sales. Implementation of paper price increase starting from mid of September. Revision of sales policy in order to improve profitability. Implementation of the saving plans in all AP Group business units. Reduction of number of employees in
Slide 18: Next quarter views
Next quarter views Clearly seen trend change for pulp prices, particularly BHKP. Already noticed increasing demand for Arctic Paper products. Recovery after weak June. European economy and capital markets turbulence brings uncertainty regarding situation in the last quarter of the year. Poli
Slide 19: Thank you for your attention
Thank you for your Michał Jarczyński, CEO attention ARCTIC PAPER GROUP Michał Bartkowiak, CFO ARCTIC PAPER GROUP Media: Agnieszka Abramowicz tel. +48 61 6262 002 e-mail: agnieszka.abramowicz@arcticpaper.com Investor relations: e-mail: ir@arcticpaper.com Photos: fotolia.com iStockPhoto.com Arctic Pap