Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q1 2020 Earnings Presentation
20 slides from Arctic Paper's earnings presentation, 2020
Slide 1: Arctic Paper S.A. Financial results Q1 2020
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Financial results Q1 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 Q1 2020 2. Market environment & operations 3. Financial results 4. Covid-19 update 5. Summary
Slide 4: Summary Q1 2020
Summary Q1 2020 Q1 2020 - financial results presentation arcticpaper.com
Slide 5: Financial Summary Q1 2020
Financial Summary Q1 2020 Arctic Paper Group Q1 2020 vs. Q1 2019 PLN PLN PLN PLN 814,0 mn 79,7 mn 70,8 mn 15,1% (820,6 mn) (57,8 mn) (59,8 mn) (10,8%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 5 Q1 2020 - financial results presentation arcticpaper.com
Slide 6: Market Environment & Operation
Market Environment & Operation 6 Q1 2020 - financial results presentation arcticpaper.com
Slide 7: Paper segment - fine paper prices
Paper segment - fine paper prices Graphic fine paper prices – German market MAR 2020 compared to DEC 2019 900 • UWF segment average price change -2.1% 800 • CWF segment average price change -1.6% 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI dat
Slide 8: Pulp segment - pulp prices
Pulp segment - pulp prices Average price Q1 2020 compared to Q1 2019 Pulp PIX Indexes Europe 1 500 1 400 • NBSK (long fibre): 28.2% 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): 31.6% lower 900 826 890 906 979 1 030 1 050 1 050 1 026 973 851 820 840 80
Slide 9: Output from paper mills
Output from paper mills Production and use of production capacity for all paper mills 98% 98% 99% 97% 450 95% 96% 100% 92% Average Q1 2020 use of production capacity: 97% 300 80% • 1.3% higher than in Q4 2019 167 164 166 161 149 154 167 150 60% Q1 2020 total production volume: 167k tons 0 40% • 10.8
Slide 10: Paper segment - revenue and revenue per tonne
Paper segment - revenue and revenue per tonne Paper sales revenue 592 588 588 600 Total Q1 2020 (PLN 588mn) increased by 575 574 573 564 573 542 2.5% compared to Q1 2019 550 500 450 Paper sales revenue per tonne Average Q1 2020 (PLN 3.43k) decreased 3,73 3,66 by 8.0% compared to average in Q1 2019 3
Slide 11: Financial results
Financial results 11 Q1 2020 - financial results presentation arcticpaper.com
Slide 12: Arctic Paper Group – EBIT evolution 2014-2020 (PLN mn)
Arctic Paper Group – EBIT evolution 2014-2020 (PLN mn) 90 Paper Segment 80 70 70 60 60 50 50 40 40 30 30 20 Pulp & Paper Segment 20 10 250 100 -100 -20 -10 200 2014 2015 2016 2017 2018 2019 2020 Q1 2020 Q1 150 100 140 Pulp Segment 120 50 100 80 0 2014 2015 2016 2017 2018 2019 2020Q1 2020 Q1 60 40 20
Slide 13: Key consolidated figures
Key consolidated figures • YTD MAR 2020 total revenues down -0.8% compared to YTD MAR 2019 (+2.5% paper segment, -8.5% pulp segment); • YTD MAR 2020 EBITDA up by PLN 30,7mn compared to YTD MAR 2019 (PLN 84,8mn paper segment: PLN +68,5mn; PLN 27,1mn pulp segment: PLN -37,7mn); • YTD MAR 2020 Net resu
Slide 14: Q1 2020 EBIT Arctic Paper Group – total
Q1 2020 EBIT Arctic Paper Group – total Q12020 EBIT Bridge 140 +61 -3 -1 -9 130 +63 -48,3 120 110 Q1 2020 EBIT PLN 79,7mn 100 90 +80 • PLN 66,5mn higher than Q4 2019 80 70 60 +58 • PLN 21,9mn higher than Q1 2019 50 40 30 EBIT evolution 80 70 80 58 59 58 45 51 47 13 -21 Q1 2020 - financial results pr
Slide 15: 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 15 Q1 2020 - financial results presentation arcticpaper.com
Slide 16: Arctic Paper Group – cash flows from operating activities 2016-2020 (PLN mn)
Arctic Paper Group – cash flows from operating activities 2016-2020 (PLN mn) Quarterly operating cash flows 140,0 Pulp & Paper Segment 120,0 100,0 PLN mn 80,0 60,0 40,0 20,0 0,0 -20,0 16 Q1 2020 - financial results presentation arcticpaper.com
Slide 17: Corona update – mitigating negative effects
Corona update – mitigating negative effects • We follow the rules and recommendations in each state where we operate; • We have taken measures to protect our employees and our operations; • Short-term allowance for the mills in Sweden, Grycksbo and Munkedal; • Readiness to apply for relevant support
Slide 18: Summary
Summary 18 Q1 2020 - financial results presentation arcticpaper.com
Slide 19: Arctic Paper Group Q1 2020 summary
Arctic Paper Group Q1 2020 summary • Arctic Paper Group sales Q1 2020 on the level of PLN 813.9mn (820.6mn) with an EBITDA of PLN 111.8mn (81.1mn). • Paper segment, one of the best quarters with total sales of PLN 587.8 mn (PLN 573.3 mn) and an EBITDA of PLN 84.8 mn (PLN 16.3 mn). • A combination of
Slide 20: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com