Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q2 2021 Earnings Presentation
32 slides from Arctic Paper's earnings presentation, Aug 17, 2021
Slide 1: Financial results Q2 2021
17.Aug 2021 Financial results Q2 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 • Q2 2021 summary • Paper segment • market • operating data • products • Pulp segment • market • operating data • products • Packaging segment • Power segment • Financials • Outlook Presenters: Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper
Slide 4: Summary Q2 2021
Summary Q2 2021 Arctic Paper Group Q2 2021 vs. Q2 2020 Net sales EBITDA Operating CF ROCE* (PLNmn) (PLNmn) (PLNmn) 786,6 84,2 30,6 9,5% (Q2 2021) (Q2 2021) (Q2 2021) (Q2 2021) vs. vs. vs. vs. 616,0 48,0 0,7 11,3% (Q2 2020) (Q2 2020) (Q2 2020) (Q2 2020) Paper/Pulp Net debt/ Paper sales Pulp sales EBI
Slide 5: Summary H1 2021
Summary H1 2021 Arctic Paper Group H1 2021 vs. H1 2020 Net sales EBITDA Operating CF ROCE* (PLNmn) (PLNmn) (PLNmn) 1 569,4 156,4 54,7 9,5% (H1 2021) (H1 2021) (H1 2021) (H1 2021) vs. vs. vs. vs. 1 429,9 159,9 70,1 11,3% (H1 2020) (H1 2020) (H1 2020) (H1 2020) Paper/Pulp Net debt/ Paper sales Pulp sa
Slide 6: Covid-19
Covid-19 Current situation in the Group • Since the beginning of pandemic, Covid-19 • We continue to follow the rules and has not affected the Group's operations. procedures that we have implemented to protect the health of our employees and • We see an recovery in demand and order maintain the cont
Slide 7: Paper Segment
Paper Segment 7 Financial results Q2 2021 arcticpaper.com
Slide 8: Market data
Market data Deliveries of fine paper in Europe Q2 2021 compared to Q2 2020 Monthly deliveries of fine paper in Europe (t) Uncoated w oodfree (UWF) up +35% 500 450 441 450 412 Coated w oodfree (CWF) up +52% 400 397 350 300 292 250 275 200 233 238 150 Q2 2021 compared to Q1 2021 100 50 Uncoated w oodf
Slide 9: Market data
Market data Fine paper average market prices JUN 2021 compared to MAR 2021 Graphic fine paper prices – German market UWF average price change +3% 1000 CWF average price change +4% 900 800 JUN 2021 compared to JUN 2020 700 UWF average price change -1% 600 CWF average price change -2% UWF 80g Sheets U
Slide 10: Arctic Paper - paper segment - operating data
Arctic Paper - paper segment - operating data Average Q2 2021 use of production capacity: 92% Production and use of production capacity for all paper mills 2% lower than in Q1 2021* 99% 96% 94% 600 90% 92% 92% 100% 23% higher than in Q2 2020 450 80% 69% Q2 2021 total production volume: 300 144k tons
Slide 11: Arctic Paper - paper segment - operating data
Arctic Paper - paper segment - operating data Revenue and revenue per tonne Paper sales revenue (PLNmn) Total revenue Q2 2021 (PLN 527mn) 650 600 559 539 538 532 decreased by 4% compared to Q1 2021 550 527 527 500 507 450 404 400 404 350 300 250 Paper sales revenue per tonne (PLNk)* Average price Q2
Slide 12: Products
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% G e r m a n y; 2 3 % Outside Biggest Uncoated Europe; 3% Design Brand Benelux; 4% Advanced Offset S we d e n ; 5 % production in he
Slide 13: Products
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 14: Products
Products Samples Christian Dior St. Valentine Koenigsegg catalog Books Journal 14 Financial results Q2 2021 arcticpaper.com
Slide 15: Pulp Segment
Pulp Segment 15 Financial results Q2 2021 arcticpaper.com
Slide 16: Market data
Market data Pulp segment – European pulp prices Average price Q2 2021 compared to Q2 2020 Pulp PIX Indexes Europe NBSK (long fibre): 41% higher 1 500 1 3001 400 BHKP (short fibre): 48% higher 1 3001 200 1 230 1 200 1 200 1 106 1 100 1 001 1 030 1 000 1 099 1 050 1 050 1 028 855 859 879 800 900 820 8
Slide 17: Arctic Paper - pulp segment - operating data
Arctic Paper - pulp segment - operating data Pulp production & deliveries Pulp production (1 000 tonne) Q2 2021 total production: 109k tons 130 108 109 110 109 109 110 100 100 103 100 6% higher than in Q1 2021 94 98 98 95 98 90 11% higher than in Q2 2020 70 50 Pulp deliveries (1 000 tonne) Q2 2021 t
Slide 18: Arctic Paper - pulp segment - operating data
Arctic Paper - pulp segment - operating data Revenue and revenue per tonne Pulp sales revenue (SEKmn) Total revenue Q2 2021 (SEK 593mn) 800 580 582 593 593 546 increased by 9% compared to Q1 2021 600 510 490 510 400 200 0 Pulp sales revenue per tonne (SEK) Average price Q2 2021 (SEK 9 929 per 12 000
Slide 19: Products
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% 19 Financial results Q2 2021 arcticpaper.com
Slide 20: Packaging Segment
Packaging Segment 20 arcticpaper.com Financial results Q2 2021
Slide 21: Packaging paper development
Packaging paper development Packaging paper sales development (t) Packaging papers: 10 000 8 000 Munken Kraft G-Flexmatt 6 000 4 000 New coated product G-Flexmatt Uncoated packaging launched on the market in Q2 2 000 paper 2021 0 H1 2018 H1 2019 H1 2020 H1 2021 21 Financial results Q2 2021 arcticpap
Slide 22: Power Segment
Power Segment 22 Financial results Q2 2021 arcticpaper.com
Slide 23: Power generation
Power generation New hydroelectric power plant in Munkedal Phase 1 of PV solar farm in Kostrzyn will be produced over 13 GWh of green energy in H1 in operation by end of August. 2021. Biomass power plant in Grycksbo produced over 7 GWh of green energy and 360 GWh of green heat in H1 2021. 23 Financi
Slide 24: Financial performance
Financial performance 24 Financial results Q2 2021 arcticpaper.com
Slide 25: Arctic Paper Group
Arctic Paper Group EBITDA evolution 2014 - 2021 (PLNmn) Effective hedging of both segments – to stabilize financial results in last 8 years 250 Paper Segment 200 150 300 Paper Segment Pulp Segment 100 250 50 200 0 2014 2015 2016 2017 2018 2019 2020 Q2 2021 2021* 150 250 Pulp Segment 100 200 50 150 0
Slide 26: Arctic Paper Group Q2 2021 EBITDA
Arctic Paper Group Q2 2021 EBITDA Total Q2 2021 EBITDA Bridge Q2 2021 EBITDA PLN 84,2mn 180 +119 +4 -106 160 140 PLN 12,0mn higher than Q1 2021 120 100 +40 +84 PLN 36,2mn higher than Q2 2020 80 +48 -13 60 -3 -5 40 20 0 EBITDA evolution 150 112 84 125 86 48 100 84 89 72 72 75 35 50 48 25 25 0 26 Fina
Slide 27: Outlook
Outlook 27 Financial results Q2 2021 arcticpaper.com
Slide 28: Outlook for second half of 2021
Outlook for second half of 2021 • Expected production utilization > 95% • Inflation pressure – the economic recovery has incresed operating costs (raw materials, packaging and freight are becoming more expensive) • Further increases in paper sales prices from September • High demand of pulp contribu
Slide 29: 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 30: Arctic Paper Vision: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 30 Financial results Q2 2021 arcticpaper.com
Slide 31: Supplementary
Supplementary 31 Financial results Q2 2021 arcticpaper.com
Slide 32: Capex in paper segment
Capex in paper segment Recently finished key investments Key investments in 2021+ • Expanded hydropower plant in Munkedal • Pilot investment in solar cells at Arctic Paper Kostrzyn • The investment of over SEK 100mn increased the power from 2 to 6 MW • Several projects targeting efficiency improveme