Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q1 2024 Earnings Presentation
28 slides from Arctic Paper's earnings presentation, 2024
Slide 1: Financial results Q1 2024
Financial results Q1 2024
Slide 2: Disclaimer
DISCLAIMER Please read the information below carefully This presentation (the ‘Presentation’) the regulated market, in particular the appearance of unexpected facts or is no certainty that the estimates, was prepared by Arctic Paper SA (the regulated market operated by the W arsaw circumstances whic
Slide 3: Agenda
Agenda 1 Paper 4 Energy 2 Pulp 5 Financial performance 3 Packaging 6 Focus 3 Q1 2024 www.arcticpaper.com
Slide 4: Summary Q1 2024
SUMMARY Q1 2024 Arctic Paper Group Q1 2024 vs. Q1 2023 Net sales EBITDA Operating CF ROCE* (PLN mn) (PLN mn) (PLN mn) 965.4 1 032.2 112.0 185.5 78.1 62.5 13.7% 35.3% (Q1 2024) (Q1 2023) (Q1 2024) (Q1 2023) (Q1 2024) (Q1 2023) (Q1 2024) (Q1 2023) Paper/Pulp EBITDA Net debt/EBITDA* Paper sales Pulp sa
Slide 5: Paper
PAPER 5 Q1 2024 www.arcticpaper.com
Slide 6: Market data: fine paper prices
GRAPHIC FINE PAPER PRICES – GERMAN MARKET MARKET DATA Fine paper average market prices 1400 1300 1200 MAR 2024 COMPARED TO DEC 2023 1100 UWF average price change 0,0% 1000 CWF average price change 1,0% 900 800 700 MAR 2024 COMPARED TO MAR 2023 600 UWF average price change - 8,4% CWF average price ch
Slide 7: Operating data: capacity use and paper sales volume
PRODUCTION CAPACITY FOR ARCTIC PAPER MILLS OPERATING DATA 92% 99% 99% 85% 86% 71% 66% 70% 55% Average Q1 2024 use of production capacity: 86% 16% HIGHER THAN IN Q4 2023 15% HIGHER THAN IN Q1 2023 Q1 2024 total sales volume: 144k tons PAPER SALES VOLUME 28% HIGHER THAN IN Q4 2023 28% HIGHER THAN IN Q
Slide 8: Operating data: paper sales revenue
PAPER SALES REVENUE (PLN mn) OPERATING DATA 1 042 820 722 701 722 701 645 590 547 Total revenue Q1 2024 (PLN 701mn) INCREASED BY 21% COMPARED TO Q4 2023 Average price Q1 2024 (PLN 4.87k) PAPER SALES REVENUE PER TONNE (PLN k)* DECREASED BY 5% COMPARED TO AVERAGE IN Q4 2023 6,19 6,39 5,46 4,93 4,87 3,
Slide 9: Products
PRODUCTS ADVANCED OFFSET MOST COMPLETE MATT BIGGEST UNCOATED PRODUCTION COATED PAPER ASSORTMENT DESIGN BRAND IN HEART OF EUROPE • Top 3 brands in revenue share • No 1 in European High Quality Bookpaper Sales • No 1 in European Design Paper Sales 9 Q1 2024 www.arcticpaper.com
Slide 10: Products: geographical split of sales
PRODUCTS Geographical split of sales Outside Europe 1% Germany Poland UK & IE Austria & CE France Baltics Rest of Europe 22% 17% 12% 10% 9% 6% 9% The Nordics Benelux 10% 4% 10 Q1 Q1 2023 2024 www.arcticpaper.com www.arcticpaper.com
Slide 11: Client structure
CLIENT STRUCTURE Market segments/products portfolio/target grups BUYING CUSTOMERS Printing Houses Clients who purchase the Group’s paper products directly. NON-BUYING CUSTOMERS Brand Owners Merchants Predominantly indirect customers, who use our Direct customers who purchase, stock and distribute pr
Slide 12: Pulp
PULP 12 Q1 2024 www.arcticpaper.com
Slide 13: Market data: European pulp prices
PULP PIX INDEXES EUROPE (USD PER TONNE) MARKET DATA 1 498 Pulp – European pulp prices 1 430 1 429 1 370 1 397 1 340 1 342 1 300 1 260 1 380 1 380 1 240 1 244 1 308 1 280 1 147 1 030 1 177 1 220 AVERAGE PRICE Q1 2024 COMPARED TO Q1 2023 1 140 1 140 1 099 1 001 NBSK (long fiber): 5% lower 958 BHKP (sh
Slide 14: Operating data: pulp production and deliveries
PULP PRODUCTION (1,000 TONNE) OPERATING DATA Pulp production & deliveries 109 111 103 92 96 93 89 91 87 90 90 80 84 84 Q1 2024 total production: 84k tons 5% HIGHER THAN IN Q4 2023 6% LOWER THAN IN Q1 2023 PULP DELIVERIES (1,000 TONNE) 103 106 102 100 Q1 2024 total deliveries: 90k tons 93 96 96 90 90
Slide 15: Operating data: pulp revenue and prices
PULP SALES REVENUE (SEK mn) OPERATING DATA Revenue and prices 806 744 693 688 744 660 688 570 Total revenue Q1 2024 (SEK 688mn) INCREASED BY 8% COMPARED TO Q4 2023 PULP SALES REVENUE PER TONNE (SEK) Average price in Q1 2024 (SEK 7.7k per tonne) 8 532 INCREASED BY 2% COMPARED TO Q4 2023 8 405 7 661 6
Slide 16: Pulp – replacement material for plastic
PULP – REPLACEMENT MATERIAL FOR PLASTIC Pulp Sales (Rottneros) by application 2023 Printing Fiber Other and writing cement 2% paper 2% 3% Tissue paper Board 9% and packaging 29% Special applications 12% Electrotechnical applications Filters 20% 24% 16 Q1 2024 www.arcticpaper.com
Slide 17: Packaging
PACKAGING 17 Q1 2024 www.arcticpaper.com
Slide 18: Development: packaging paper sales
PACKAGING PAPER SALES DEVELOPMENT (t) DEVELOPMENT 20 000 PACKAGING PAPERS: 16 000 Munken Kraft Uncoated packaging paper 12 000 G-Flexmatt 8 000 Coated packaging paper 4 000 0 2018 2019 2020 2021 2022 2023 Last 12 months 18 Q1 2024 www.arcticpaper.com
Slide 19: Power
POWER 19 Q1 2024 www.arcticpaper.com
Slide 20: Arctic Paper Group power projects
ARCTIC PAPER GROUP POWER PROJECTS MUNKEDAL • Hydro power plant • Flexible multifuel boiler plant • LNG power plant • Swedish national grid GRYCKSBO • Biomass power plant • Swedish national grid KOSTRZYN • Local natural gas power plant • Solar park • Plus supply to Polish national grid 20 Q1 2024 www
Slide 21: Kostrzyn solar farm
KOSTRZYN SOLAR FARM • 17 MW • Start up June 2024 • Next phase under preparation 2025 21 Q1 2024 www.arcticpaper.com
Slide 22: Battery storage system BESS
BATTERY STORAGE SYSTEM BESS • Partner: S.E.R. Sverige • 24 MW (24 MWh) • Location: Munkedal & Grycksbo 22 Q1 2024 www.arcticpaper.com
Slide 23: Financial performance
FINANCIAL PERFORMANCE 23 Q1 2024 www.arcticpaper.com
Slide 24: EBITDA evolution 2017 – 2024
EBITDA EVOLUTION 2017 – 2024 (PLN mn) Effective hedging of both segments – to stabilize financial results 1 000 900 Q1 2024 EBITDA PLN 112.0mn 800 PLN 15mn HIGHER THAN Q4 2023 700 PLN 74mn LOWER THAN Q1 2023 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 2022 2023 2024* Paper Segment Pulp Segmen
Slide 25: Net debt/EBITDA 2020 – 2024
NET DEBT/EBITDA 2020 – 2024 0,83 0,70 0,70 0,57 0,66 0,48 0,49 0,36 0,33 -0,02 -0,22 -0,19 -0,28 -0,27 -0,59 -0,73 -0,77 * rolling 12 months 25 Q1 2024 www.arcticpaper.com
Slide 26: Sharing our story with you
SHARING OUR STORY WITH YOU HEDGED AGAINST VOLATILITY GROWTH INCREASING SHARE PREDICTABLE CAPEX OF PROFITABILITY IN PACKAGING OF RENEWABLE AND AIMED AT CONTINUED & HIGH FLUCTUATION FOSSIL-FREE ENERGY IMPROVEMENTS OF ENERGY ESTABLISHED OWNER POSITION ON THE STABLE SUSTAINABLE OF BRANDS VALUED MARKET W
Slide 27: 4P For Future Arctic
4P For Future Arctic Paper Packaging Pulp Power 27 Q1 2024 www.arcticpaper.com
Slide 28: Thank you
Thank you ARCTIC PAPER