Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q4 2024 Earnings Presentation
29 slides from Arctic Paper's earnings presentation, Feb 19, 2025
Slide 1: Preliminary financial results Q4 2024
Preliminary financial results Q4 2024
Slide 2: Disclaimer
DISCLAIMER Please read the information below carefully This presentation (the ‘Presentation’) the regulated market, in particular the appearance of unexpected facts or is no certainty that the estimates, was prepared by Arctic Paper SA (the regulated market operated by the W arsaw circumstances whic
Slide 3: Agenda
Agenda 1 Paper 4 Energy 2 Pulp 5 Financial performance 3 Packaging 6 Focus 3 Q4 2024 www.arcticpaper.com
Slide 4: Summary preliminary Q4 2024
SUMMARY PRELIMINARY Q4 2024 Arctic Paper Group Q4 2024 vs. Q4 2023 Net sales EBITDA Net debt/EBITDA* (PLN mn) (PLN mn) 810.8 825.9 38.8 96.3 -0.01x - 0.73x (Q4 2024) (Q4 2023) (Q4 2024) (Q4 2023) (EOP Q4 2024) (EOP Q4 2023) • last 12 months 4 Q4 2024 www.arcticpaper.com
Slide 5: Summary preliminary YTD Dec 2024
SUMMARY PRELIMINARY YTD DEC 2024 Arctic Paper Group YTD DEC 2024 vs. YTD DEC 2023 Net sales EBITDA (PLN mn) (PLN mn) 3 434.7 3 549.2 298.6 475.3 (YTD DEC (YTD DEC (YTD DEC (YTD DEC 2024) 2023) 2024) 2023) Paper/Pulp EBITDA Net debt/EBITDA* (PLN mn) 243/55 376/99 -0.01x - 0.73x (YTD DEC (YTD DEC (EOP
Slide 6: Paper
PAPER 6 Q4 2024 www.arcticpaper.com
Slide 7: Market data: fine paper prices
GRAPHIC FINE PAPER PRICES – GERMAN MARKET MARKET DATA Fine paper average market prices 1400 1300 1200 DEC 2024 COMPARED TO SEP 2024 1100 UWF average price change -1,2% 1000 CWF average price change -1,8% 900 800 700 DEC 2024 COMPARED TO DEC 2023 600 UWF average price change -0,2% CWF average price c
Slide 8: Operating data: production capacity and sales volume
PRODUCTION CAPACITY FOR ARCTIC PAPER MILLS OPERATING DATA 99% 85% 86% 71% 66% 70% 66%70% 69% 55% Average YTD 2024 use of production capacity: 75% 17% HIGHER THAN AVERAGE YTD 2023 Q4 2024 total sales volume: 116k tons 3% HIGHER THAN IN Q4 2023 PAPER SALES VOLUME 168 166 165 168 144 117 113 113 114 11
Slide 9: Operating data: paper sales revenue
PAPER SALES REVENUE (PLN mn) OPERATING DATA 949 770 689 567 581 574 576 581 576 Total revenue Q4 2024 (PLN 576mn) INCREASED BY 3% COMPARED TO Q3 2024 Average price Q4 2024 (PLN 4.97k) PAPER SALES REVENUE PER TONNE (PLN k)* DECREASED BY 1% COMPARED TO AVERAGE IN Q3 2024 6,57 5,74 5,85 5,14 5,04 4,97
Slide 10: Products
PRODUCTS ADVANCED OFFSET MOST COMPLETE MATT BIGGEST UNCOATED PRODUCTION COATED PAPER ASSORTMENT DESIGN BRAND IN HEART OF EUROPE • Top 3 brands in revenue share • No 1 in European High Quality Bookpaper Sales • No 1 in European Design Paper Sales 10 Q4 2024 www.arcticpaper.com
Slide 11: Products: geographical split of sales
PRODUCTS Geographical split of sales Outside Europe 2% Germany Poland UK & IE Austria & CE France Baltics Rest of Europe 21% 17% 12% 10% 9% 6% 9% The Nordics Benelux 10% 4% 11 Q1 Q4 2023 2024 www.arcticpaper.com www.arcticpaper.com
Slide 12: Client structure
CLIENT STRUCTURE Market segments/products portfolio/target grups BUYING CUSTOMERS Printing Houses Clients who purchase the Group’s paper products directly. NON-BUYING CUSTOMERS Brand Owners Merchants Predominantly indirect customers, who use our Direct customers who purchase, stock and distribute pr
Slide 13: Pulp
PULP 13 Q4 2024 www.arcticpaper.com
Slide 14: Market data: European pulp prices
PULP PIX INDEXES EUROPE (USD PER TONNE) MARKET DATA Pulp – European pulp prices 1 612 1 567 1 498 1 483 1 430 1 429 1 370 1 397 1 342 1 260 1 240 1 244 1 440 1 380 1 380 AVERAGE PRICE Q4 2024 COMPARED TO Q4 2023 1 308 1 280 1 147 1 220 1 261 1 140 1 177 NBSK (long fiber): 28% higher 1 001 1 000 BHKP
Slide 15: Operating data: pulp production and deliveries
PULP PRODUCTION (1,000 TONNE) OPERATING DATA Pulp production & deliveries 111 103 96 93 91 91 87 90 89 84 80 75 80 75 Q4 2024 total production: 75k tons 17% LOWER THAN IN Q3 2024 7% LOWER THAN IN Q4 2023 PULP DELIVERIES (1,000 TONNE) 106 100 102 Q4 2024 total deliveries: 73k tons 96 87 87 90 89 83 8
Slide 16: Operating data: pulp revenue and prices
PULP SALES REVENUE (SEK mn) OPERATING DATA Revenue and prices 784 730 711 681 626 637 637 626 Total revenue Q4 2024 (SEK 626mn) DECREASED BY 2% COMPARED TO Q4 2023 PULP SALES REVENUE PER TONNE (SEK) Average price in Q4 2024 (SEK 8.6k per tonne) 8 439 8 215 7 538 8 025 8 599 7 404 INCREASED BY 14% CO
Slide 17: Pulp – replacement material for plastic
PULP – REPLACEMENT MATERIAL FOR PLASTIC Pulp Sales (Rottneros) by application 2024 Other Printing and writing papers 3% 1% Fiber cement 3% Board Tissue and packaging paper 23% 11% Special applications 14% Filters 23% Electrotechnical applications 22% 17 Q4 2024 www.arcticpaper.com
Slide 18: Packaging
PACKAGING 18 Q4 2024 www.arcticpaper.com
Slide 19: Packaging paper sales development
PACKAGING PAPER SALES DEVELOPMENT (t) DEVELOPMENT 20 000 STABLE SALES OF PACKAGING PAPERS 16 000 Munken Kraft Uncoated packaging paper 12 000 G-Flexmatt 8 000 Coated packaging paper 4 000 0 2018 2019 2020 2021 2022 2023 2024 19 Q4 2024 www.arcticpaper.com
Slide 20: Power
POWER 20 Q4 2024 www.arcticpaper.com
Slide 21: Energy segment
ENERGY SEGMENT Power plants: Energy mix • CHP power plant (Poland) 10% • PV (Poland, Sweden) 20% • Thermal waste incineration (Sweden) • Hydroturbines (Sweden) 70% • Biomass boilers (Sweden) green energy (bio & solar & hydro) natural gas RDF/waste incineration 21 Q4 2024 www.arcticpaper.com
Slide 22: Energy segment – ongoing projects
ENERGY SEGMENT - ONGOING PROJECTS • 9,6 MW PV (Poland) • Search for PV projects aquisition (Poland) • Modernisation of biomass boiler (Sweden) • Wood pellet production line (Sweden) • Energy storage systems (Sweden & Poland) Group will have over 30 MW of PV installed capacity by the summer of 2025 2
Slide 23: Financial performance
FINANCIAL PERFORMANCE 23 Q4 2024 www.arcticpaper.com
Slide 24: EBITDA evolution 2017–2024
EBITDA EVOLUTION 2017 – 2024 (PLN mn) Effective hedging of both segments – to stabilize financial results in medium & long term perspective 1 000 900 Q4 2024 EBITDA PLN 38.8mn 800 700 2024 EBITDA 300 PLN mn – above 600 2014-2021 level, despite low capacity utilisation 500 400 300 200 100 0 2017 2018
Slide 25: Net debt/EBITDA 2020–2024
NET DEBT/EBITDA 2020 – 2024 Strong financial position 0,70 0,57 0,66 0,49 0,36 0,33 -0,02 -0,08 -0,01 -0,22 -0,19 -0,28 -0,27 -0,35 -0,59 -0,73 -0,77 * rolling 12 months 25 Q4 2024 www.arcticpaper.com
Slide 26: Capex structure by segments 2024
CAPEX STRUCTURE BY SEGMENTS 2024 The path to execute 4P strategy 9% 33% 26% 31% paper pulp power packaging 26 Q4 2024 www.arcticpaper.com
Slide 27: Outlook for 2025
OUTLOOK FOR 2025 • Dividend proposal 0,70 PLN per share, it is 30% of net profit – in line with divided policy • Concerns about European economy growth • Expected stability in prices and availability of raw materials • Expectations of positive changes in the Green deal and reduction of bureaucratic
Slide 28: Sharing our story with you
SHARING OUR STORY WITH YOU HEDGED AGAINST VOLATILITY GROWTH INCREASING SHARE PREDICTABLE CAPEX OF PROFITABILITY IN PACKAGING OF RENEWABLE AND AIMED AT CONTINUED & HIGH FLUCTUATION FOSSIL-FREE ENERGY IMPROVEMENTS OF ENERGY ESTABLISHED OWNER POSITION ON THE STABLE SUSTAINABLE OF BRANDS VALUED MARKET W
Slide 29: 4P For Future Arctic
4P For Future Arctic Paper Packaging Pulp Power 29 Q4 2024 www.arcticpaper.com