Arctic Paper S.A. · GPW:ATC
Arctic Paper — Q1 2010 Earnings Presentation
22 slides from Arctic Paper's earnings presentation, May 18, 2010
Slide 1: Arctic Paper Group First quarter 2010 results
l love verb /lʌv/ Originating in northern Europe, we are a paper group with a dedicated passion for making superior graphic fine paper for demanding fine paper users. Being ideal for creative design, our paper qualities offer a wide range of applications applications, including book production produ
Slide 2: Disclaimer
Disclaimer Pl Please read d the h information i f i below b l carefully. f ll TRANSLATORS’ EXPLANATORY NOTE The following document is a translation of the presentation of the Arctic Paper Group. In the event of any discrepancy in interpreting the terminology, the Polish version is binding. This pres
Slide 3: Agenda
Agenda Key information on Arctic Paper Group Paper market Operational and financial results for first quarter of 2010 Strategy and further plans 3
Slide 4: caste
caste qegeneunupnnramaa at ee all 3 : “Re pret agen itieuiusenanuaanares
Slide 5: Description of the Arctic Paper Group
Description of the Arctic Paper Group K Key competitive ii advantages d and d information i f i about b Arctic A i Paper P Group G Strong brand and leading position on the Developed book paper market sales network in Europe One of the leading manufacturers of high Optimal geographical structure
Slide 6: Developed sales network
Developed sales network Cl Close customer t relationships l ti hi and dab better tt understanding d t di off th the changes h ensuing i on the th market k t Arctic Paper has its own developed sales network including 3 Distribution Companies and 15 Sales Offices Offices, which means more than 130 s
Slide 7: Our paper mills
Our paper mills Effi i Efficiency and d flexibility fl ibili off production d i processes Arctic Paper Arctic Paper Arctic Paper Arctic Paper Kostrzyn Munkedals Mochenwangen Grycksbo Production capacity 275,000 tonnes per annum 160,000 tonnes per annum 115,000 tonnes per annum 265,000 tonnes per ann
Slide 8: tee
tee faerie?
Slide 9: Paper market in Europe
Paper market in Europe L Level l off deliveries d li i and d demand d d in i the h segments where h we have h a presence Deliveries of fine paper on the European market in 1Q 2010 were about 2.7% higher than in 1Q 2009, and about 3.9% higher than in 4Q 2009. At the same time deliveries to the un
Slide 10: Paper market in Europe: paper prices and exchange rates
Paper market in Europe M k trends Market d in i paper prices i and d exchange h rates Paper prices In the 1st quarter of 2010 prices for uncoated wood‐free paper (offset reels 80 gsm) for selected markets of Germany, France, Italy and the UK, expressed in EUR, rose compared to prices from December
Slide 11: Paper market in Europe: market trends for pulp
Paper market in Europe M k trends Market d for f pulp l Key changes in pulp market After nearly a decade of gradual, fairly predictable changes in the pulp market, we are now faced with a highly unstable market with great variability. The most recent key changes in the pulp market, which occurre
Slide 12: Factors affecting the pulp market in early 2010
Paper market in Europe M k trends Market d for f pulp l Factors affecting the pulp market in early 2010 As a result of the earthquake in Chile, beginning from 27 February 2010 there was a loss of about 4 mln tonnes in the supply of pulp. Now, a few months after that event, about 80% of previous de
Slide 13: Factors that may affect the pulp market
Paper market in Europe M k trends Market d for f pulp l Factors that may affect development of the situation on the pulp market A significant portion of supplies from Chile are already on the market. The remaining portion of the prior level of supply from the country is expected to be restored wit
Slide 14: geisuet ait
geisuet ait dceestec ete
Slide 15: Sales volume and revenue
Sales volume and revenue Sharp growth in sales volume and revenues Total and LFL sales volume (‘000 tonnes) In Q1 2010 the AP Group noted growth in sales volume 200 15 1% 15.1% 15 6% 15.6% comparedd to Q1 2009 off over 15%. During the h same 175 166 166 period LFL sales volume (excluding AP Grycks
Slide 16: Main financial information
Main financial information Results of 1Q 2010 1Q 2010 vs. 1Q 2010 vs. 1Q 4Q 1Q 4Q 2009 1Q 2009 PLN '000 2010 2009 2009 Change % Change % Revenues 479,360 432,769 475,625 10.8% 0.8% Gross profit on sales 82,413 105,659 122,919 -22.0% -33.0% % sales 17.2% 24.4% 25.8% - 7 p.p. - 9 p.p. EBITDA 32,373 48
Slide 17: Summary of 1Q 2010
Summary of 1Q 2010 Continuing high interest in the Group’s products and growing number of orders First increases in paper prices in selected segments and markets Continued rapid growth in pulp prices on world markets Forex changes unfavourable to the Group Acquisition of Grycksbo paper mil
Slide 18: Measures taken and planned to improve results
Measures taken and planned to improve results Optimisation of product mix and market mix. Introduction of first (5‐8%) and second (10‐12%) increases in paper prices. Plan to introduce further price increases before the end of the year. F th increase Further i off surcharges h f non‐standard fo
Slide 19: feet
feet
Slide 20: The Arctic Paper Group's strategy
The Arctic Paper Group’s strategy K Key premises i off the h strategy Expansion onto the markets of Central & Eastern Europe Maximising efficiency while maintaining the position of leader on our main of production and distribution markets The markets of Western Europep will remain important p Ma
Slide 21: Plans for 2010
Plans for 2010 K Key areas off activity i i planned l d to the h end d off the h current year Integration of Grycksbo Paper Holding AB into the Arctic Paper Group's organisation structure, structure particularly in the area of sales and marketing. Taking advantage of the opportunities appearing
Slide 22: Thank you for your attention
Thank you for your attention Michał Jarczyński, CEO ARCTIC PAPER GROUP tel. : +48 95 72 10 550 e‐mail: michal.jarczynski@arcticpaper.com Michał Bartkowiak, CFO ARCTIC PAPER GROUP tel. : +48 95 72 10 644 ee‐mail: mail: michal michal.bartkowiak@arcticpaper.com bartkowiak@arcticpaper com Media: Iwona S