Slide 1: Another quarter with excellent growth, profitability and cash flow delivery
Another quarter with excellent growth, profitability and cash flow delivery 2022-10-25 Christoph Michalski, CEO & Ivar Vatne, CFO
Slide 2: Performance and key highlights Q3 2022
Performance and key highlights Q3 2022 Strong organic and FX neutral net sales SEKm Q3-22 Change vs Q3-21 growth of 20% vs last year. Net sales 11,814 +82% Record underlying EBITDA performance Adjusted EBITDA 2,196 +97% % of net sales 19% +2 pp Price and mix improvements more than Operating pr
Slide 3: Net Sales almost doubled through inclusion of our North American business
Net Sales almost doubled through inclusion of our North American business and continued strong focus on price and mix management Net sales, SEKm +82% +57% -2% 11 814 North America +57% +20% +7% 6 494 *Consolidation of Verso General
Slide 4: All-time-high profit with excellent progress on price management
All-time-high profit (excl maintenance) with excellent progress on price mgt, driving profitable mix and our cost- and efficiency program Adj EBITDA, SEKm +97% North America North 1 084 America -560 Adj. EBITDA 17% 24% 19% *Consolidation of Verso General
Slide 5: Business status and market outlook still strong, but signs of gradual change
Business status and market outlook still strong, but starting to see signs of a more gradual change towards normalized conditions Food Printing & Consumer Industrial & Drink Publishing & Luxury Papers Sales split, %1 LPB (7.9bn) 100% Cartonboard (2.2bn) 25% 75% Containerboard (4.4bn) 80% 10% 10% Kra
Slide 6: European cost inflation accelerating in Q3 and will continue towards year end
European cost inflation accelerating in Q3 and will continue to increase towards end of year. Situation more moderate in US Higher Higher Higher Stable cost for cost for energy logistics fibre chemicals cost cost European wood market Continued sharp price Majority of electricity Stable freight rates
Slide 7: Paper
Product area Paper General
Slide 8: Paper
Product area Paper Net Sales more than tripled – mainly result of Share of net sales inclusion of our North American business 55% Q3 2022 Organic and FX neutral net sales growth +34% vs previous year High double-digit sales growth across all SEKm Q3-22 Q3-21 Change categories Net sales 6,486 2
Slide 9: Board
Product area Board General
Slide 10: Board
Product area Board Share of net sales 39% Q3 2022 Strong sales growth +25% vs previous year. FX neutral sales growth +18% vs previous year SEKm Q3-22 Q3-21 Change Solid growth across all categories Net sales 4,563 3,663 25% Cartonboard more than doubled net sales in less of which liquid pack
Slide 11: Outstanding cash flow delivery enables all-time-low net debt leverage
Outstanding cash flow delivery enables all-time-low net debt leverage Excellent Operating Cash Flow conversion (86%) SEK m Q3-22 Q3-21 Operating surplus 2,069 1,049 Net debt / adj EBITDA ratio significantly reduced through positive cash flow and successful rights issue Change in working capital
Slide 12: Our North American business is contributing significantly to sales and earnings growth
Our North American business is contributing significantly to both sales and earnings growth Q2’ and Q3’22 with excellent sales and profit performance for both Graphic- and Speciality Paper Our North American business adds ~1/3 of additional net sales and significant profit contribution to Group and
Slide 13: Priorities Q4'22 and throughout 2023
Priorities Q4’22 and throughout 2023 Deliver on strategic objectives of sales growth through continuous focus on sustainable packaging opportunities and innovation Deliver on our strategic profitability goals through focus on mix, price management and rigorous cost discipline Develop new efficiency
Slide 14: Outlook for Q4 2022
Outlook for Q4 2022 Still solid demand for our products, but sentiment is changing towards being less favorable in Europe; stability in North America Accelerated cost inflation in Europe with higher costs for wood and chemicals. Flat costs in North America Continued focus on price and mix management