Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q2 2018 Earnings Presentation
20 slides from Arctic Paper's earnings presentation, 2018
Slide 1: Arctic Paper S.A. Q2 2018 – A future in paper
Per Skoglund – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Q2 2018 A future in paper 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. Summary of Q2 2018 2. Market environment 3. Operations and financial results
Slide 4: Summary of Q2 2018
Summary of Q2 2018 Q2 2018 presentation arcticpaper.com
Slide 5: Q2 2018 in brief
Q2 2018 in brief Arctic Paper Group • Price increases have not offset the rising pulp prices . • Advancing of the implementation of the new strategy – A Future in Paper. • Focusing on continued growth of speciality products with a higher revenue per tonne. • Developing new high end products and grad
Slide 6: Financial Summary Q2 2018: Satisfactory results in a difficult market
Financial Summary Q2 2018: Satisfactory results in a difficult market Arctic Paper Group Q2 2018 vs. Q2 2017 PLN PLN PLN PLN 792,4 m 45,5 m -1,4 m 9% (703,1 m) (37,6 m) (81,8 m) (12%) Net sal es EBI T O perat i ng Cash Fl ow RO CE* * Rolling 12 months 6 Q2 2018 presentation arcticpaper.com
Slide 7: Financial Summary 1H 2018: Satisfactory results in a difficult market
Financial Summary 1H 2018: Satisfactory results in a difficult market Arctic Paper Group 1H 2018 vs. 1H 2017 PLN PLN PLN PLN 1 582,2 m 92,7 m 0,4 m 9% (1 477,0 m) (86,7 m) (103,8 m) (12%) Net sal es EBI T O perat i ng Cash Fl ow RO CE* * Rolling 12 months 7 Q2 2018 presentation arcticpaper.com
Slide 8: Market Environment
Market Environment 8 Q2 2018 presentation arcticpaper.com
Slide 9: Fine paper prices partially compensate
Fine paper prices partially compensate Graphic fine paper prices – German market JUNE 2018 compared to MARCH 2018 1000 • UWF segment average price change +2.4% 900 • CWF segment average price change +2.7% 800 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper base
Slide 10: Continued increase in pulp prices
Continued increase in pulp prices Pulp PIX Indexes Europe Average price Q2 2018 compared to Q2 2017 1 500 1 400 • NBSK (long fibre): 34.8% higher 1 300 1 200 1 200 1 092 1 100 1 000 1 000 • BHKP (short fibre): 33.4% higher 900 853 839 803 789 806 810 809 826 890 906 1 030 1 050 800 979 890 600 700 7
Slide 11: Currency exchange rates
Currency exchange rates EUR/PLN changes Average exchange rate Q2 2018 compared to Q1 2018 4,6 4,5 • EUR/PLN +1.9% 4,4 4,3 4,2 30/06 • EUR/SEK +3.6% 4,1 2016 2017 2018 4.36 • EUR/USD -3.0% EUR/SEK changes 10,5 10,3 Average exchange rate Q2 2018 compared to Q2 2017 10,0 9,8 • EUR/PLN +1.1% 9,5 9,3 30/
Slide 12: Operations and financial results
Operations and financial results 12 Q2 2018 presentation arcticpaper.com
Slide 13: Stable output from production
Stable output from production Production and use of production capacity for all paper mills 600 120% Average Q2 2018 use of budget production 450 93% 95% 98% 94% 95% 95% 98% 98% 98% 98% 99% 98% 100% 89% capacity: 98% 300 80% 169 166 169 158 167 161 167 162 164 165 166 163 • 0.5% higher than in Q2 20
Slide 14: Paper sales revenue and revenue per tonne
Paper sales revenue and revenue per tonne Paper sales revenue 800 579 590 575 Total Q2 2018 (PLN 559m) up 8.9% 600 524 498 542 525 540 569 520 513 542 543 574 559 513 559 compared to Q2 2017 400 200 0 Paper sales revenue per tonne Average Q2 2018 (PLN 3.50k) increased 4,0 by 9.4% compared to average
Slide 15: Key consolidated figures
Key consolidated figures • Q2 2018 total revenues up +12.7% compared to Q2 2017 (+8.9% paper segment, +23.0% Rottneros AB revenue) • Q2 2018 EBITDA up by 2,2m PLN compared to Q2 2017 (19,7m PLN paper segment: - 7m PLN; 47,0m PLN Rottneros AB: +9,2m PLN) • Q2 2018 Net result from continuing operation
Slide 16: Q2 2018 EBIT Arctic Paper (excluding Rottneros AB)
Q2 2018 EBIT Arctic Paper (excluding Rottneros AB) Q2 operating result Bridge 60 +48 -59 50 40 30 Q2 2018 operating result 5,9m PLN 20 +7 -2,6 +7 +6 • -8,4m PLN less than Q1 2018 10 0 +2,7 +3 • -0,9m PLN less than Q2 2017 -10 -20 EBIT evolution 29 17 19 19 14 9 7 6 7 6 -18 Q2 2018 presentation arcti
Slide 17: Q2 2018 EBIT Arctic Paper Group – total
Q2 2018 EBIT Arctic Paper Group – total Q2 EBIT Bridge 90 +48 -59 80 70 60 Q2 2018 EBIT 45,5m PLN 50 +9 +45 40 +38 +6,6 • -1,7m PLN less than Q1 2018 30 -2,6 +2,7 +3 20 • +7,9m PLN more than Q2 2017 10 0 -10 EBIT evolution 48 47 44 45 45 39 34 33 33 2 -6 Q2 2018 presentation arcticpaper.com
Slide 18: Summing-up
Summing-up 18 Q2 2018 presentation arcticpaper.com
Slide 19: Summing-up Q2 2018
Summing-up Q2 2018 Arctic Paper Group • Paper segment, turnover rose to PLN 558,8 million (PLN 513,2 million in Q2, 2017) • Price increases have not offset the rising pulp prices . • Advancing of the implementation of the new strategy – A Future in Paper. • Focusing on continued growth of speciality
Slide 20: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com