Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Metsä Group — FY2019 Earnings Presentation
26 slides from Metsa Board Oyj Class A's earnings presentation, Feb 12, 2020
Slide 1: Metsä
Metsa
Slide 2: Metsä Group Result 2019
Metsä Group Result 2019 Ilkka Hämälä President and CEO 12 February 2020
Slide 3: Weakened market situation decreased Metsä Group's result
Metsä Group – Result 2019 Weakened market situation decreased Metsä Group’s result • Sales EUR 5,473 million (2018: EUR 5,709 million) • Operating result* EUR 495 million (EUR 849 million) • Operating result* 9.0% of sales (14.9%) • Return on capital employed* 9.6% (16.8%) • Operating result weakene
Slide 4: Events during the fourth quarter
Metsä Group – Result 2019 Events during the fourth quarter • The average dollar-denominated price of long-fibre pulp decreased by 10% and that of short-fibre pulp by 15% compared to the previous quarter • Paperboard deliveries declined from the previous quarter due to seasonality. The average prices
Slide 5: Sales
Metsä Group – Result 2019 Sales EUR million 6000 5,709 5,473 5,016 5,040 5000 4,658 4000 3000 2000 1000 0 2015 2016 2017 2018 2019 5 12.2.2020
Slide 6: Sales quarterly
Metsä Group – Result 2019 Sales quarterly EUR million 1 600 1,477 1,428 1,438 1,386 1,419 1,3721,374 1 400 1,330 1,328 1,290 1,255 1,260 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 6 12.2.2020
Slide 7: Comparable operating result
Metsä Group – Result 2019 Comparable operating result EUR million 1000 849 800 600 566 537 495 439 400 200 0 2015 2016 2017 2018 2019 7 12.2.2020
Slide 8: Comparable operating result, quarterly
Metsä Group – Result 2019 Comparable operating result, quarterly EUR million 250 223 208 210 208 200 185 180 149 150 137 134 129 123 128 128 120 119 109 110 103 107 100 76 50 0 Q1/15 Q2 Q3 Q4 Q1/16 Q2 Q3 Q4 Q1/17 Q2 Q3 Q4 Q1/18 Q2 Q3 Q4 Q1/19 Q2 Q3 Q4 8 12.2.2020
Slide 9: Change in comparable operating result
Metsä Group – Result 2019 Change in comparable operating result EUR million Comparable operating result 2018 849 Sales prices -364 Sales volumes 54 Exchange rates 104 Wood raw material -75 Raw materials, energy and other variable costs -29 Employee costs -1 Maintenance and other fixed costs -7 Chang
Slide 10: Items affecting comparability
Metsä Group – Result 2019 Items affecting comparability EUR million 2019 Operating result (IFRS) 374.3 Items affecting comparability: Metsä Board / Disposal of the shares in Liaison Technologies Inc. -3.3 Metsä Board / Sale of Niemenranta lots in Tampere -5.6 Metsä Board / Impairment related to the
Slide 11: Comparable ROCE
Metsä Group – Result 2019 Comparable ROCE % 20 16.8 Target > 12% 16 13.6 12.3 12 10.2 9.6 8 4 0 2015 2016 2017 2018 2019 11 12.2.2020
Slide 12: Equity ratio
Metsä Group – Result 2019 Equity ratio % 60 56.2 53.1 50 43.9 45.0 43.2 40 30 20 10 0 2015 2016 2017 2018 2019 12 12.2.2020
Slide 13: Interest-bearing net liabilities
Metsä Group – Result 2019 Interest-bearing net liabilities EUR million 1 500 1 200 1,033 993 900 610 600 463 374 300 0 2015 2016 2017 2018 2019 13 12.2.2020
Slide 14: Capital expenditure
Metsä Group – Result 2019 Capital expenditure EUR million 800 758 608 600 492 400 272 260 200 0 2015 2016 2017 2018 2019 14 12.2.2020
Slide 15: Personnel
Metsä Group – Result 2019 Personnel 12 000 9,599 9,300 9,310 9,126 9,265 9 000 6 000 3 000 0 2015 2016 2017 2018 2019 15 12.2.2020
Slide 16: Wood delivery volumes decreased
Metsä Forest – Wood Supply and Forest Services Wood delivery volumes decreased • Metsä Forest delivered approximately Sales and comparable operating result 34.7 million m3 of wood (36.4) EUR million • Log prices decline throughout the year, and the 600 18 526 526 prices of pulpwood started to declin
Slide 17: Engineered wood products markets slowed down
Metsä Wood – Wood Products Industry Engineered wood products markets slowed down • The profitability was weakened by poor market situation and labour disputes Sales and comparable operating result • Costs arising from the ramp-up of strategic EUR million investments, production challenges and raw- 1
Slide 18: Lower pulp prices led to clearly lower result
Metsä Fibre – Pulp and Sawn Timber Industry Lower pulp prices led to clearly lower result • Operating result and sales were weakened by Sales and comparable operating result lower sales prices of pulp and sawn timber, and EUR million higher prices of raw materials 700 629 609 630 623 280 601 • Highe
Slide 19: Price of pulp (PIX) in Europe and China
Metsä Fibre – Pulp and Sawn Timber Industry Price of pulp (PIX) in Europe and China USD EUR 1400 1400 1200 1200 1000 1000 800 800 600 600 400 400 ´11 ´12 ´13 ´14 ´15 ´16 ´17 ´18 ´19 Hardwood/EUR Softwood/EUR Hardwood/USD Softwood/USD Softwood/Kiina/USD Hardwood/Kiina/USD Source: Fast Markets Foex 19
Slide 20: Paperboard industry's performance at good level as expected
Metsä Board – Paperboard Industry Paperboard industry’s performance at good level as expected • The higher sales prices of paperboards had a Sales and comparable operating result positive effect on the operating result EUR million • Exchange rate fluctuations had a positive result 600 120 519 effect
Slide 21: Prices of folding boxboard and white-top kraftliner in Europe
Metsä Board – Paperboard Industry Prices of folding boxboard and white-top kraftliner in Europe 2011–Q4/2019 EUR/tonne 1200 1100 1000 900 800 700 600 2011 2012 2013 2014 2015 2016 2017 2018 2019 Folding boxboard White-top kraftliner Sources: Fastmarkets RISI & Fastmarkets FOEX 21 12.2.2020
Slide 22: Result of the tissue and greaseproof papers improved
Metsä Tissue – Tissue and Greaseproof Papers Result of the tissue and greaseproof papers improved • Sales increased, mainly due to higher sales prices Sales and comparable operating result EUR million • Improved result was attributable to the efficiency measures, an increase in sales prices and lowe
Slide 23: Market outlook
Summary Market outlook • The insect damages in the Central Europe will continue to have an impact on the wood trade in the Baltic sea area • Demand for Kerto LVL and birch plywood is expected to continue weak, and for spruce plywood products, slightly better • Pulp market is expected to balance as t
Slide 24: Result guidance
Summary Result guidance • Comparable operating results is in the first quarter of 2020 expected to weaken from the fourth quarter of 2019 due to the strikes at Finnish mills 24 12.2.2020
Slide 25: Proposal for interests and dividends
Prososal for interests and dividents • Metsäliitto Cooperative’s Board of Directors has decided to propose that an interest of 6.5% for 2019 be paid on the statutory capital invested by members (7.5% for 2018), 6.0% (7.0%) on additional members’ capital A and 2.0% (2.5%) on additional members’ capit
Slide 26: Make the most of Metsä
Make the most of Metsa iyi