Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q2 2019 Earnings Presentation
22 slides from Arctic Paper's earnings presentation, 2019
Slide 1: Arctic Paper S.A. Financial results Q2 2019
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Financial results Q2 2019 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, ‘Company’) for information purposes only for use by investors, banks and the Company’s
Slide 3: Content
Content 1. Q2 2019 in brief 2. Market environment & operations 3. Financial results 4. Summary
Slide 4: Summary of Q2 2019
Summary of Q2 2019 Q2 2019 presentation arcticpaper.com
Slide 5: Financial Summary Q2 2019
Financial Summary Q2 2019 Arctic Paper Group Q2 2019 vs. Q2 2018 PLN PLN PLN PLN 762,5 mn 69,9 mn 45,7 mn 13% (784,1 mn) (44,6 mn) (-1,4 mn) (9%) Net sales EBIT Operating Cash Flow ROCE* * Rolling 12 months 5 Q2 2019 presentation arcticpaper.com
Slide 6: Financial Summary 1H 2019
Financial Summary 1H 2019 Arctic Paper Group 1H 2019 vs. 1H 2018 PLN PLN PLN PLN 1 583,1 mn 127,7 mn 105,5mn 13% (1 572,2 mn) (91,2 mn) (0,4 mn) (9%) Net sales EBIT Operating Cash Flow ROCE* * Rolling 12 months 6 Q2 2019 presentation arcticpaper.com
Slide 7: Q2 2019 in brief
Q2 2019 in brief Arctic Paper Group • Arctic Paper Group reached a turnover of PLN 762,5 mn (784,1 mn in Q2 2018) with an EBITDA of PLN 90,5 mn (65,9 mn in Q2 2018). • The paper segment generated a turnover of PLN 537,6 mn (558,8 mn in Q2 2018) with an EBITDA of PLN 35,4 mn (19,7 mn in Q2 2018). • P
Slide 8: Market Environment & Operation
Market Environment & Operation 8 Q2 2019 presentation arcticpaper.com
Slide 9: Fine paper prices
Fine paper prices Graphic fine paper prices – German market JUN 2019 compared to MAR 2019 • UWF segment average price change -1.4% 900 • CWF segment average price change -2.6% 800 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI data. JUN 2019 comp
Slide 10: Pulp prices
Pulp prices Average price Q2 2019 compared to Q2 2018 Pulp PIX Indexes Europe • NBSK (long fibre): 9.5% 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): 10.2% lower 900 806 810 809 826 890 906 979 1 030 1 050 1 050 1 024 973 800 890 902 600 832 700 Averag
Slide 11: Output from production
Output from production Production and use of production capacity for all paper mills Average Q2 2019 use of budget production 450 94% 95% 98% 98% 99% 92% 100% 90% capacity: 92% 300 80% 158 161 162 165 163 150 • 0.1% higher than in Q1 2019 150 147 60% Q2 2019 total production volume: 147k tonne 0 40%
Slide 12: Financial results
Financial results 12 Q2 2019 presentation arcticpaper.com
Slide 13: Currency exchange rates
Currency exchange rates EUR/PLN changes Average exchange rate Q2 2019 compared to Q2 2018 4,5 4,4 • EUR/PLN +0.5% 4,3 4,2 30/06 • EUR/SEK +2.7% 4,1 2016 2017 2018 2019 4.25 • EUR/USD -5.7% EUR/SEK changes 10,8 Average exchange rate Q2 2019 compared to Q1 2019 10,5 10,3 10,0 9,8 • EUR/PLN -0.4% 9,5 9
Slide 14: Paper sales revenue and revenue per tonne
Paper sales revenue and revenue per tonne Paper sales revenue 600 Total Q2 2019 (PLN 538mn) down 3.8% 559 compared to Q2 2018 550 559 538 540 543 539 538 500 520 513 450 Paper sales revenue per tonne Average Q2 2019 (PLN 3.67k) increased 4,0 by 4.6% compared to average in Q2 2018 3,72 3,67 3,50 3,5
Slide 15: Key consolidated figures
Key consolidated figures • YTD JUN 2019 total revenues up +0.7% compared to JUN 2018 (-1.9% paper segment, +7.3% pulp segment revenue); • YTD JUN 2019 EBITDA up by PLN 35,2mn compared to YTD JUN 2018 (PLN 51,7mn paper segment: PLN +0,8mn; PLN 120,0mn pulp segment: PLN +34,5mn); • YTD JUN 2019 Net re
Slide 16: Q2 2019 EBIT Arctic Paper Group – total
Q2 2019 EBIT Arctic Paper Group – total Q22019 EBIT Bridge Q2 2019 EBIT PLN 69,9mn • PLN 12,1mn higher than Q1 2019 • PLN 25,3mn higher than Q2 2018 EBIT evolution 70 58 70 45 59 39 33 47 45 -6 -21 Q2 2019 presentation arcticpaper.com
Slide 17: Q2 2019 EBIT Arctic Paper (excluding Rottneros AB)
Q2 2019 EBIT Arctic Paper (excluding Rottneros AB) Q22019 EBIT Bridge Q2 2019 operating result PLN 23,8mn • PLN 22,4mn higher than Q1 2019 • PLN 17,8mn higher than Q2 2018 EBIT evolution 24 19 24 14 12 7 6 1 6 -18 -28 Q2 2019 presentation arcticpaper.com
Slide 18: Summing-up
Summing-up 18 Q2 2019 presentation arcticpaper.com
Slide 19: Summing-up Q2 2019
Summing-up Q2 2019 Arctic Paper Group • Paper segment, EBITDA on the level of PLN 35,4 mn (PLN 19,7 mn in Q2 2018). • Investment in expanded capacity at Kostrzyn mill was finalized during Q2 and the modernized PM1 is now in production. • Sale of Mochenwangen mill land resulted in one-off revenue of
Slide 20: PM 1 after rebuild – Kostrzyn mill
PM 1 after rebuild – Kostrzyn mill arcticpaper.com
Slide 21: Munken Kraft Samples
Munken Kraft Samples arcticpaper.com
Slide 22: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com