Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q2 2020 Earnings Presentation
23 slides from Arctic Paper's earnings presentation, 2020
Slide 1: Arctic Paper S.A. Financial results Q2 2020
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Financial results Q2 2020 arcticpaper.com
Slide 2: Disclaimer
Disclaimer Please read the information below carefully This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the The Company is not obliged to publish updates and amendments to the information, data ‘Company’) for information purposes only for use by investors, banks and the Comp
Slide 3: Content
Content 1. Summary of Q2 2020 2. Market environment & operations 3. Financial results 4. Summary
Slide 4: Summary of Q2 2020
Summary of Q2 2020 Q2 2020 - financial results presentation arcticpaper.com
Slide 5: Financial Summary Q2 2020
Financial Summary Q2 2020 Arctic Paper Group Q2 2020 vs. Q2 2019 PLN PLN PLN PLN 616,0 mn 24,2 mn - 0,7 mn 11,5% (762,5 mn) (69,9 mn) (45,7 mn) (13,0%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 5 Q2 2020 - financial results presentation arcticpaper.com
Slide 6: Financial Summary H1 2020
Financial Summary H1 2020 Arctic Paper Group H1 2020 vs. H1 2019 PLN PLN PLN PLN 1 429,9 mn 103,9 mn 70,1 mn 11,5% (1 583,1 mn) (127,7 mn) (105,5 mn) (13,0%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 6 Q2 2020 - financial results presentation arcticpaper.com
Slide 7: Market Environment & Operation
Market Environment & Operation 7 Q2 2020 - financial results presentation arcticpaper.com
Slide 8: Deliveries of fine paper – Corona influence
Deliveries of fine paper – Corona influence Q2 2020 compared to Q2 2019 Monthl y deliveries of fine paper in Europe • Uncoated woodfree down -32.0% 1 000 739 ( Ar ct i c Paper uncoat ed/ Am ber dow n - 14%) 750 • Coated woodfree down -48.4% 501 498 500 ( Ar ct i c Paper dow n - 30. 0%) 436 425 326 3
Slide 9: European Paper market
European Paper market European Design Coated Papers market European Design Uncoated Papers market European High Quality Uncoated Book Papers market other other other paper paper paper mills mills 44% 35% mills Arctic Arctic 40% Arctic Paper Paper Paper mills mills 56% 65% mills 60% Q2 2020 - financi
Slide 10: Paper segment - fine paper prices
Paper segment - fine paper prices Graphic fine paper prices – German market JUN 2020 compared to MAR 2020 • UWF segment average price change -2.0% 900 • CWF segment average price change -1.9% 800 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI dat
Slide 11: Pulp segment - pulp prices
Pulp segment - pulp prices Average price Q2 2020 compared to Q2 2019 Pulp PIX Indexes Europe 1 500 1 400 • NBSK (long fibre): 19.0% lower 1 300 1 200 1 230 1 200 1 200 1 092 1 104 1 100 1 000 1 000 1 000 • BHKP (short fibre): 27.5% lower 900 890 906 979 1 030 1 050 1 050 1 026 973 851 820 840 859 80
Slide 12: Output from paper mills
Output from paper mills Production and use of production capacity for all paper mills 98% 98% 99% 96% 450 92% 100% 90% Average Q2 2020 use of production capacity: 69% 69% 300 80% • 28.5% lower than in Q1 2020 150 60% 162 165 163 Q2 2020 total production volume: 114k tons 150 147 151 114 0 40% • 32.1
Slide 13: Paper segment - revenue and revenue per tonne
Paper segment - revenue and revenue per tonne Paper sales revenue 600 559 543 539 538 532 538 550 513 Total Q2 2020 (PLN 404mn) decreased by 500 24.9% compared to Q2 2019 450 400 404 404 350 300 250 200 Paper sales revenue per tonne Average Q2 2020 (PLN 3.53k) increased 3,72 3,67 by 2.8% compared to
Slide 14: Financial results
Financial results 14 Q2 2020 - financial results presentation arcticpaper.com
Slide 15: Arctic Paper Group – EBIT evolution 2014-2020 (PLN mn)
Arctic Paper Group – EBIT evolution 2014-2020 (PLN mn) 90 Paper Segment 80 70 60 50 40 30 Pulp & Paper Segment 20 250 10 0 -10 200 2014 2015 2016 2017 2018 2019 2020 2020 H1 H1 150 100 140 Pulp Segment 120 50 100 80 0 60 2014 2015 2016 2017 2018 2019 2020 H1 2020 H1 40 20 0 2014 2015 2016 2017 2018
Slide 16: Arctic Paper Group – share price evolution 2019-2020
Arctic Paper Group – share price evolution 2019-2020 ATC.WA ARP.ST Warsaw Stock Exchange OMX Nordic Exchange Stockholm AB 5,50 13,00 5,00 12,00 4,50 11,00 10,00 4,00 SEK PLN 9,00 3,50 8,00 3,00 7,00 2,50 6,00 2,00 5,00 Q 2 2020 - financial results presentation arcticpaper.com
Slide 17: Key consolidated figures
Key consolidated figures • YTD JUN 2020 total revenues down -9.7% compared to YTD JUN 2019 (-10.7% paper segment, -7.1% pulp segment); • YTD JUN 2020 EBITDA down by PLN 11,8mn compared to YTD JUN 2019 (PLN 114,7mn paper segment: PLN +63,1mn; PLN 45,1mn pulp segment: PLN -74,8mn); • YTD JUN 2020 Net
Slide 18: Q2 2020 EBIT Arctic Paper Group – total
Q2 2020 EBIT Arctic Paper Group – total Q22020 EBIT Bridge 80 +9 +1 -20 70 +69 -119,5 +135 60 -36,5 50 40 Q2 2020 EBIT PLN 24,2mn 30 20 +24 10 0 • PLN 55,4mn lower than Q1 2020 -10 -20 -30 • PLN 45,6mn lower than Q2 2019 -40 -50 -14,3 -60 -70 EBIT evolution 70 80 70 59 58 51 45 24 24 13 -21 Q2 2020
Slide 19: Arctic Paper Group – Net debt/EBITDA 2016-2020
Arctic Paper Group – Net debt/EBITDA 2016-2020 1,6 Net Debt/EBITDA* Pulp & Paper Segment 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 * EBITDA for the last 12 months 19 Q2 2020 - financial results presentation arcticpaper.com
Slide 20: Corona update – mitigating negative effects
Corona update – mitigating negative effects • We are fully aware of it is still a challenging and unsecure environment to maneuver in; • We follow the rules and recommendations in each state where we operate; • We have been successful in protecting our employees and our operations; • We have used th
Slide 21: Summary
Summary 21 Q2 2020 - financial results presentation arcticpaper.com
Slide 22: Arctic Paper Group Q2 2020 summary
Arctic Paper Group Q2 2020 summary • Arctic Paper Group sales Q2 2020 on the level of PLN 616.0 mn (762.5 mn) with an EBITDA of PLN 48.0 mn (90.5 mn). • Paper segment, sales on the level of PLN 403.8 mn (PLN 537.6 mn) with an EBITDA of PLN 30.0 mn (PLN 35.4 mn). • Paper segment, H1 2020 EBITDA more
Slide 23: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com