Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q3 2021 Earnings Presentation
29 slides from Arctic Paper's earnings presentation, Nov 10, 2021
Slide 1: Financial results Q3 2021
10.NOV 2021 Financial results Q3 2021
Slide 2: Disclaimer
Disclaimer Please read the information below carefully This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the ‘Company’) for The Company is not obliged to publish updates and amendments to the information, data information purposes only for use by investors, banks and the Comp
Slide 3: Agenda
Agenda • Q3 2021 summary • Paper • market • operating data • products • Pulp • market • operating data • products • Packaging • Power • Financials • Outlook Presenters: Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper
Slide 4: Summary Q3 2021
Summary Q3 2021 Arctic Paper Group Q3 2021 vs. Q3 2020 Net sales EBITDA Operating CF ROCE* (PLNmn) (PLNmn) (PLNmn) 889,7 102,1 50,6 10,1% (Q3 2021) (Q3 2021) (Q3 2021) (Q3 2021) vs. vs. vs. vs. 702,8 86,4 117,5 11,9% (Q3 2020) (Q3 2020) (Q3 2020) (Q3 2020) Paper/Pulp Net debt/ Paper sales Pulp sales
Slide 5: Summary YTD SEP 2021
Summary YTD SEP 2021 Arctic Paper Group YTD SEP 2021 vs. YTD SEP 2020 Net sales EBITDA Operating CF ROCE* (PLNmn) (PLNmn) (PLNmn) 2 459,0 258,5 105,3 10,1% (YTD SEP 2021) (YTD SEP 2021) (YTD SEP 2021) (YTD SEP 2021) vs. vs. vs. vs. 2 132,8 246,3 187,6 11,9% (YTD SEP 2020) (YTD SEP 2020) (YTD SEP 202
Slide 6: Paper
Paper 6 Financial results Q3 2021 arcticpaper.com
Slide 7: Market data: deliveries of fine paper in Europe
Market data Deliveries of fine paper in Europe Q3 2021 compared to Q3 2020 Monthly deliveries of fine paper in Europe (t) Uncoated woodfree (UWF) up +8% 500 441 450 412 Coated woodfree (CWF) up +15% 400 402 396 350 300 316 250 275 253 261 200 150 Q3 2021 compared to Q2 2021 100 50 Uncoated woodfree
Slide 8: Market data: fine paper average market prices
Market data Fine paper average market prices SEP 2021 compared to JUN 2021 Graphic fine paper prices – German market UWF average price change +2,6% 1000 CWF average price change +3,0% 900 800 SEP 2021 compared to SEP 2020 700 UWF average price change +3,3% 600 CWF average price change +2,7% UWF 80g
Slide 9: Arctic Paper - paper - operating data
Arctic Paper - paper - operating data Average Q3 2021 use of production capacity: 99% Production and use of production capacity for all paper mills 7% higher than in Q2 2021 95% 96% 97% 94% 99% 100% 600 92% 16% higher than in Q3 2020 83% 450 80% Q3 2021 total production volume: 300 169k tons 150 60%
Slide 10: Arctic Paper - paper - operating data: revenue and revenue per tonne
Arctic Paper - paper - operating data Revenue and revenue per tonne Paper sales revenue (PLNmn) 645 645 Total revenue Q3 2021 (PLN 645mn) 650 592 573 588 600 564 547 increased by 22% compared to Q2 2021 550 492 492 500 450 400 350 300 250 Paper sales revenue per tonne (PLNk)* Average price Q3 2021 (
Slide 11: Products: top brands and geographical split of sales
Products Top 3 Brands in revenue share Geographical split of sales No 1 in European High Quality Bookpaper Sales Rest of No 1 in European Design Paper Sales Europe; 13% Germany; 23% Outside Biggest Uncoated Europe; 3% Design Brand Benelux; 4% Advanced Offset Sweden; 5% production in heart of Europe
Slide 12: Products: market segments and target groups
Products Market segments/products portfolio/target groups Printing Houses Clients who purchase the Group’s paper products directly Direct customers who purchase, stock and distribute the Group’s paper Wholesalers for resale to other users Direct and indirect customers, who uses the Group’s paper pro
Slide 13: Products: samples
Products Samples Christian Dior St. Valentine Koenigsegg catalog Books Journal 13 Financial results Q3 2021 arcticpaper.com
Slide 14: Pulp
Pulp 14 Financial results Q3 2021 arcticpaper.com
Slide 15: Market data: European pulp prices
Market data Pulp – European pulp prices Average price Q3 2021 compared to Q3 2020 Pulp PIX Indexes Europe NBSK (long fibre): 59% higher 1 500 1 340 1 400 1 300 BHKP (short fibre): 67% higher 1 3001 230 1 200 1 200 1 106 1 030 1 100 1 001 1 000 1 140 1 099 1 050 1 028 855 859 879 800 900 820 840 840
Slide 16: Arctic Paper - pulp - operating data
Arctic Paper - pulp - operating data Pulp production & deliveries Pulp production (1 000 tonne) Q3 2021 total production: 92k tons 130 108 109 110 109 110 110 100 100 103 15% lower than in Q2 2021 98 98 94 95 92 92 90 16% lower than in Q3 2020 70 50 Pulp deliveries (1 000 tonne) Q3 2021 total delive
Slide 17: Pulp operating data: revenue and prices
Arctic Paper - pulp - operating data Revenue and prices Pulp sales revenue (SEKmn) Total revenue Q3 2021 (SEK 570mn) 800 630 617 585 570 542 570 increased by 12% compared to Q3 2020 600 508 508 400 200 0 The list price of NBSK pulp per tonne (SEK)* The list price of NBSK pulp in Q3 2021 15 000 (SEK
Slide 18: Products: pulp sales by application
Products Pulp sales by application Rottneros’ sales by application 2020 Specialities 11% Board and Packaging 28% Electrotechnical applications 12% Filter 16% Printing and Writing 21% Tissue 12% 18 Financial results Q3 2021 arcticpaper.com
Slide 19: Packaging
Packaging 19 Financial results Q3 2021 arcticpaper.com
Slide 20: Packaging - development
Packaging - development Packaging paper sales development (t) Packaging papers: 16 000 14 000 12 000 Munken Kraft G-Flexmatt 10 000 8 000 New coated product G-Flexmatt 6 000 Uncoated packaging 4 000 launched on the market in Q2 paper 2 000 2021 0 YTD SEP 2018 YTD SEP 2019 YTD SEP 2020 YTD SEP 2021 2
Slide 21: Power
Power 21 Financial results Q3 2021 arcticpaper.com
Slide 22: Power generation
Power generation New hydroelectric power plant in Munkedal Phase 1 of PV solar farm in Kostrzyn runs produced over 13 GWh of green energy in YTD since August. SEP 2021. Biomass power plant in Grycksbo produced over 11 GWh of green energy and 540 000 GJ of green heat in YTD SEP 2021. 22 Financial res
Slide 23: Financial performance
Financial performance 23 Financial results Q3 2021 arcticpaper.com
Slide 24: Arctic Paper Group EBITDA evolution 2014-2021
Arctic Paper Group EBITDA evolution 2014 - 2021 (PLNmn) !""#$%&'#()#*+&,+(-"(.-%)(/#+0#,%/(1 %-(/%2.&3&4#("&,2,$&23(5#/63%/(&,(32/%(7(8#25/ 250 Paper Segment 200 150 300 Paper Segment Pulp Segment 100 250 50 200 0 2014 2015 2016 2017 2018 2019 2020 Q3 2021 2021* 150 250 Pulp Segment 100 200 50 150 0
Slide 25: Arctic Paper Group Q3 2021 EBITDA
Arctic Paper Group Q3 2021 EBITDA Total Q3 2021 EBITDA Bridge Q3 2021 EBITDA PLN 102,1mn 260 +67 -157 240 220 PLN 18,0mn higher than Q2 2021 200 +86 180 160 140 120 +39 ×Çć÷ PLN 16,0mn higher than Q3 2020 100 ב ì -16 80 -3 + 60 40 20 0 -20 0 e & fx S ts n ers TDA 1 202 Volu m e C oG c os atio Oth E
Slide 26: Outlook
Outlook 26 Financial results Q3 2021 arcticpaper.com
Slide 27: Outlook
Outlook • Strong demand, expected production utilization > 95% • Energy costs pressure – significant increase of energy prices across the whole Europe • Logistics challenges related to the limited avaliability of means of transport and higher freight costs • Further growth of packaging grades in pro
Slide 28: Sharing our story with you
Sharing our story with you Hedged against Predictable capex volatility of Increasing share Growth in aimed at profitability & of renewable and packaging continued high fluctuation fossil-free energy improvements of energy Established Owner of brands Sustainable position on the Stable ownership value
Slide 29: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 29 Financial results Q3 2021 arcticpaper.com