Slide 1: Q2 report 2024
Q2 report 2024 24 July 2024 Lennart Eberleh President and CFO Monica Pasanen CFO
Slide 2: Highlights Q2
+4, 30x Increased turnover EBIT for Q2 2024 Highlights Q2 Strong pulp market Stable production and solid deliveries pad ® ROTTNEROS
Slide 3: Market: Diverging global trends
Market Diverging global trends
Slide 4: Pulp market
PULP MARKET A cyclical Average quarterly price of NBSK Europe. SEK/tonne USD/tonne 1 700 17 000 1 600 16 000 High NBSK list price 1 500 15 000 1 400 14 000 1 300 13 000 1 200 12 000 Strong demand 1 100 11 000 1 000 10 000 900 9 000 800 8 000 Favorable USD/SEK 700 7 000 600 6 000 500 5 000 400 4 000
Slide 5: Supply and demand
SUPPLY AND DEMAND Producers’ inventories and price USD/tonne Days of producers’ inventories 1 700 62 Producer stocks slowly increasing driven by BHK 1 500 55 1 300 48 1 100 41 Stabilized supply 900 34 700 27 Good regional demand 500 2018 20 2019 2020 2021 2022 2023 2024 Days PIX TTO Source: FOEX, TT
Slide 6: Production Europe
PRODUCTION EUROPE Compared to previous year 20% 2023 Jan - Apr 2024 15% Europe is Rottneros’ main market 10% 5% 0% -5% -10% Recovery after a weak -15% 2023 -20% -25% -30% Newsprint Other packaging Graphical paper Contrainerboard Other Tissue Cartonboard Jan - Apr 2024 increase by 7% Source: CEPI
Slide 7: Production Europe 2018 – Q1 2024
PRODUCTION EUROPE 2018 – Q1 2024 100% Share of board and 90% Other packaging growing in 80% importance 70% Tissue 60% 50% Board and 40% packaging 30% Paper 20% 10% 0% 2018 2019 2020 2021 2022 2023 Q1 2024 Total annual volume 2023 approx. 75 mio tonnes SOURCE: CEPI
Slide 8: Deliveries of chemical market pulp
DELIVERIES OF CHEMICAL MARKET PULP Compared to previous year 2023 Jan - May 2024 30% Demand increased 25% by 3,9% 20% 15% 10% 5% China’s share of 0% the pulp market is -5% approx. 40% -10% -15% -20% Europe North America Latin America China Other markets Source: PPPC
Slide 9: Rottneros' pulp-sales per application
Rottneros’ pulp-sales per application Sales of pulp 1-6 2024 (FY 2023) 2% 1% PRINTING AND FIBER CEMENT 3% (2) OTHER (3%) WRITING PAPER (2) CARTONBOARD 12% TISSUE (9%) 25% (29) 12% SPECIAL APPLICATIONS (12) 21% ELECTROTECHNICAL FILTER 24% APPLICATIONS (24) (20)
Slide 10: Result: Stabilized operations
Result Stabilized operations
Slide 11: EBIT Q2 2024 vs. Q2 2023
EBIT Q2 2024 VS. Q2 2023 (MSEK) Prices mixed Good deliveries Stable raw material and fixed costs
Slide 12: EBIT 1-6 2024 vs. 1-6 2023
EBIT 1-6 2024 VS. 1-6 2023 (MSEK) Lag in sales prices Stable deliveries High variable costs
Slide 13: Efficient and solid balance sheet
EFFICIENT AND SOLID BALANCE SHEET MSEK % Operational cash flow Net debt/cash Equity/asstes % 600 100 Available liquidity 298 MSEK 500 90 400 80 300 70 Investments 135 MSEK 200 60 100 50 0 40 Long-term financing -100 30 -200 20 2020 Q2 Q3 Q4 2021 Q2 Q3 Q4 2022 Q2 Q3 Q4 2023 Q2 Q3 Q4 2024 Q2 Q1 Q1 Q1
Slide 14: The way ahead
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Slide 15: Trends favoring pulp
Trends favoring pulp RENEWABLE TISSUE E-COMMERCE SUSTAINABILITY ENERGY
Slide 16: Innovation and development
INNOVATION AND DEVELOPMENT Rottneros Packaging JV Poland Blue Ocean Closures
Slide 17: Summary
SUMMERY Stabilized operations Investments according to plan Strong balance sheet
Slide 18: Questions and answers
Lennart Eberleh President and CEO Monica Pasanen CFO Questions and answers