Metsa Board Oyj Class A · OMXHEX:METSA

Metsa Board Oyj Class A — Metsä Group — H1 2017 Earnings Presentation

39 slides from Metsa Board Oyj Class A's earnings presentation, Aug 3, 2017

  1. Slide 1: Metsä Group Half Year Financial report 2017

    Metsä Group Half Year Financial report 2017 Kari Jordan President and CEO 3.8.2017

  2. Slide 2: Metsä Group's profitability improved

    Metsä Group – Q2 Metsä Group’s profitability improved • Sales EUR 2,451 million (1–6/2016: 2,339 million) • Operating result * EUR 247 million (229 million) • Operating result of sales* 10.1% (9.8%) • Return on capital employed* 11.5% (11.0%) • Sales grew mainly as a result of higher delivery volume

  3. Slide 3: Events in the second quarter

    Metsä Group – Q2 Events in the second quarter • The market prices of long-fibre and short-fibre pulp increased • Paperboard deliveries grew by 11% from the previous quarter • Metsä Tissue started to rebuild the baking paper machine at the Düren mill in Germany • Metsä Wood started to build a birch p

  4. Slide 4: Sales

    Metsä Group – Q2 Sales EUR million 1 400 1,330 1,254 1,265 1,248 1,255 1,204 1,225 1,205 1,216 1,235 1 200 1,156 1,184 1,143 1,175 1 000 800 600 400 200 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 4 3.8.2017 Metsä Group

  5. Slide 5: Operating result

    Metsä Group – Q2 Operating result EUR million 180 160 160 154 149 142 137 140 129 131 128 128 123 120 119 119 122 117 118 110 120 109 105 104 103 107 103 107 107 100 92 84 80 70 60 40 20 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Comparable oper

  6. Slide 6: Comparable operating result

    Metsä Group – Q2 Comparable operating result EUR million 160 149 137 140 129 128 123 120 117 119 120 109 107 105 104 103 100 94 92 89 87 80 68 71 73 64 60 53 40 20 0 Q1/12 Q2 Q3 Q4 Q1/13 Q2 Q3 Q4 Q1/14 Q1/15 Q1/16 Q1/17 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 6 3.8.2017 Metsä Group

  7. Slide 7: Change in comparable operating result

    Metsä Group – Q2 Change in comparable operating result EUR million Comparable operating result 1–6/2016 229 Sales prices -12 Sales volumes 42 Exchange rates 10 Raw materials and energy 5 Employee costs 8 Change of inventories -30 Other -4 18 Comparable operating result 1–6/2017 247 7 3.8.2017 Metsä

  8. Slide 8: Items affecting comparability 1–6/2017

    Metsä Group – Q2 Items affecting comparability 1–6/2017 EUR million 1–6/2017 Operating result (IFRS) 253.4 Items affecting comparability: Metsä Wood / sale of the project business 3.3 Metsä Board / sale of the paper machine at Kyro, net 3.4 Metsä Wood & Metsä Fibre / transfer of the sawmills -0.2 It

  9. Slide 9: Comparable ROCE

    Metsä Group – Q2 Comparable ROCE % 16 14 13.7 12 Target >10% 11.3 11.5 10 11.0 9.8 8 6 4 2 0 QI–II/2013 QI–II/2014 QI–II/2015 QI–II/2016 QI–II/2017 9 3.8.2017 Metsä Group

  10. Slide 10: Equity ratio

    Metsä Group – Q2 Equity ratio % 50 43.9 45.3 45 43.2 40 37.9 37.9 35 30 25 20 15 10 5 0 12/2013 12/2014 12/2015 12/2016 6/2017 10 3.8.2017 Metsä Group

  11. Slide 11: Interest-bearing net liabilities

    Metsä Group – Q2 Interest-bearing net liabilities EUR million 1 750 1,510 1 500 1,252 1 250 1,033 1 000 938 750 610 500 250 0 12/2013 12/2014 12/2015 12/2016 6/2017 11 3.8.2017 Metsä Group

  12. Slide 12: Capital expenditure

    Metsä Group – Q2 Capital expenditure EUR million 800 700 600 500 Full-year estimate 400 758 300 492 200 275 100 214 143 0 1–12/2013 1–12/2014 1–12/2015 1–12/2016 1–6/2017 12 3.8.2017 Metsä Group

  13. Slide 13: Income statement

    Metsä Group – Q2 Income statement EUR million QI–II/2017 QI–II/2016 Change Sales 2,451.4 2,339.6 111.8 Other operating income 25.7 25.2 0.5 Operating expenses -2,109.0 -2,013.6 -95.4 Depreciation and impairment losses -114.6 -125.8 11.2 Operating result 253.4 225.3 28.1 Comparable operating result 2

  14. Slide 14: Key figures

    Metsä Group – Q2 Key figures QI–II/2017 QI–II/2016 Change Return on capital employed, % 11.8 10.8 1.0 Comparable return on capital employed, % 11.5 11.0 0.5 Return on equity, % 14.3 11.8 2.5 Comparable return on equity, % 13.9 12.1 1.8 Equity ratio, % 45.3 44.8 0.5 Net gearing ratio, % 45 38 7 Inter

  15. Slide 15: Cash Flow Statement I

    Metsä Group – Q2 Cash Flow Statement I EUR million QI–II/2017 QI–II/2016 Cash flow from operating activities Result for the period 192.8 143.9 Adjustments to result for the period 167.4 190.6 Interest received 1.8 1.7 Interest paid -28.7 -30.5 Dividends received 1.6 0.8 Taxes -38.3 -75.7 Other finan

  16. Slide 16: Cash Flow Statement II

    Metsä Group – Q2 Cash Flow Statement II EUR million QI–II/2017 QI–II/2016 Net cash flow from operating activities 111.8 23.6 Purchase of shares -0.8 0.0 Acquired shares from non-controlling interests -30.7 0.0 Investments -275.4 -337.9 Sales of assets and others 28.4 16.4 Change in members’ capital

  17. Slide 17: Personnel

    Metsä Group – Q2 Personnel 12 000 10,736 10,410 9,599 9,824 10 000 9,300 8 000 6 000 4 000 2 000 0 12/2013 12/2014 12/2015 12/2016 6/2017* *including approximately 800 summer employees 17 3.8.2017 Metsä Group

  18. Slide 18: Wood Supply and Forest Services

    Wood Supply and Forest Services

  19. Slide 19: Wood Supply and Forest Services

    Metsä Forest – Wood Supply and Forest Services Wood Supply and Forest Services EUR million QI–II/2017 QI–II/2016 Change Sales 829.4 779.0 50.4 Other operating income 1.5 3.7 -2.2 Operating expenses -816.0 -766.6 -49.4 Depreciation and impairment losses -1.9 -1.7 -0.2 Operating result 12.9 14.3 -1.4

  20. Slide 20: Purchasing volumes of wood increased

    Metsä Forest – Wood Supply and Forest Services Purchasing volumes of wood increased • In Finland, the supply of wood was steady, Comparable operating result and stumpage prices stable EUR million • Metsä Forest delivered a total of 10,0 16.4 million cubic metres of wood (15.7) 8.7 8.9 9,0 8.5 • The

  21. Slide 21: Wood Products Industry

    Wood Products Industry

  22. Slide 22: Wood Products Industry

    Metsä Wood – Wood Products Industry Wood Products Industry EUR million QI–II/2017 QI–II/2016 Change Sales 242.0 251.2 -9.2 Other operating income 4.6 5.0 -0.4 Operating expenses -218.5 -228.5 10.0 Depreciation and impairment losses -5.9 -6.7 0.8 Operating result 22.2 21.0 1.2 Items affecting compara

  23. Slide 23: Demand for wood products continued strong

    Metsä Wood – Wood Products Industry Demand for wood products continued strong • Demand for Kerto® LVL products continued strong Comparable EUR million operating result • Deliveries of Kerto® LVL declined due to the 14,0 13.2 investment related shutdown of one line in Lohja 12,0 • The delivery volume

  24. Slide 24: Pulp and Sawn Timber Industry

    Pulp and Sawn Timber Industry

  25. Slide 25: Pulp and Sawn Timber Industry

    Metsä Fibre – Pulp and Sawn Timber Industry Pulp and Sawn Timber Industry EUR million QI–II/2017 QI–II/2016 Change Sales 848.5 831.3 17.2 Other operating income 10.7 5.9 4.8 Operating expenses -699.1 -682.1 -17.0 Depreciation and impairment losses -34.9 -45.7 10.8 Operating result 125.2 109.4 15.8 I

  26. Slide 26: Price of pulp (PIX) 2009–Q2/2017

    Metsä Fibre – Pulp and Sawn Timber Industry Price of pulp (PIX) 2009–Q2/2017 USD EUR 1050 1050 950 950 850 850 750 750 650 650 550 550 450 450 350 350 ´09 ´10 ´11 ´12 ´13 ´14 ´15 ´16 ´17 Hardwood/EUR Softwood/EUR Hardwood/USD Softwood/USD Source: Foex 26 3.8.2017 Metsä Group

  27. Slide 27: Higher pulp prices improved results

    Metsä Fibre – Pulp and Sawn Timber Industry Higher pulp prices improved results • The demand for pulp grew more than Comparable operating result EUR million expected 100,0 95.6 • The market price of long-fibre pulp grew about 90,0 6% and short-fibre 1%, compared to the first 82.0 83.4 79.7 half of 2

  28. Slide 28: Paperboard Industry

    | ~~ Paperboard Industry

  29. Slide 29: Paperboard Industry

    Metsä Board – Paperboard Industry Paperboard Industry EUR million QI–II/2017 QI–II/2016 Change Sales 918.7 858.5 60.2 Other operating income 8.6 14.3 -5.7 Operating expenses -791.6 -757.7 -33.9 Depreciation and impairment losses -43.6 -48.0 4.4 Operating result 92.1 67.2 24.9 Items affecting compara

  30. Slide 30: Prices of folding boxboard and white-top kraftliner in Europe 2011–Q2/2017

    Metsä Board – Paperboard Industry Prices of folding boxboard and white-top kraftliner in Europe 2011–Q2/2017 EUR/ tonne 1200 1150 1100 1050 1000 950 900 850 800 750 700 650 600 2011 2012 2013 2014 2015 2016 2017 Folding boxboard White-top kraftliner Source: RISI, Inc. & FOEX Indexes Ltd 30 3.8.2017

  31. Slide 31: Paperboard deliveries at a record level

    Metsä Board – Paperboard Industry Paperboard deliveries at a record level • The result was improved by the positive Comparable operating result development in Finland’s paperboard business EUR million and market pulp business 60,0 54.6 • Demand for fresh fibre paperboards remained good in all Metsä

  32. Slide 32: Tissue and Cooking Papers

    d Tissue an 2 D o. © oO Cooking

  33. Slide 33: Tissue and Cooking Papers

    Metsä Tissue – Tissue and Cooking Papers Tissue and Cooking Papers EUR million QI–II/2017 QI–II/2016 Change Sales 503.4 495.1 8.4 Other operating income 1.2 1.6 -0.3 Operating expenses -451.3 -450.1 -1.2 Depreciation and impairment losses -19.5 -19.8 0.3 Operating result 33.9 26.7 7.2 Items affectin

  34. Slide 34: Sales volumes of tissue and cooking papers increased

    Metsä Tissue – Tissue and Cooking Papers Sales volumes of tissue and cooking papers increased • Sales grew due to increased sales volumes Comparable operating result EUR million • The operating result was positively 25,0 impacted by the higher sales volumes and 20.6 the strengthening of the Norwegia

  35. Slide 35: Summary

    Summary

  36. Slide 36: Outlook for the business areas 1/2

    Summary Outlook for the business areas 1/2 Wood Supply and Forest Services • Wood demand will focus on felling sites to be harvested when the ground is unfrozen and, in terms of energy wood, on crown wood Wood Product Industry • Demand for wood products will remain good, and this will be reflected i

  37. Slide 37: Outlook for the business areas 2/2

    Summary Outlook for the business areas 2/2 Paperboard • The growth in the demand for high-quality consumer packaging paperboard made from fresh fibre is expected to continue in market areas important for Metsä Board • Delivery volumes in July–September are expected to remain roughly at the level of

  38. Slide 38: Near-term outlook

    Summary Near-term outlook • Metsä Group’s comparable operating result is in the third quarter of 2017 expected to be roughly at the same level as in the second quarter of 2017 38 3.8.2017 Metsä Group

  39. Slide 39: Make the most of Metsä

    Make the most of Metsa iy Uy Metsd

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