Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q3 2019 Earnings Presentation
20 slides from Arctic Paper's earnings presentation, 2019
Slide 1: Arctic Paper S.A. Financial results Q3 2019
Michał Jarczyński – CEO Arctic Paper Göran Eklund – CFO Arctic Paper Arctic Paper S.A. Financial results Q3 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. Q3 2019 in brief 2. Market environment & operations 3. Financial results 4. Summary
Slide 4: Summary of Q3 2019
Summary of Q3 2019 Q3 2019 presentation arcticpaper.com
Slide 5: Financial Summary Q3 2019
Financial Summary Q3 2019 Arctic Paper Group Q3 2019 vs. Q3 2018 PLN PLN PLN PLN 794,4 mn 50,6 mn 119,4 mn 10,8% (816,5 mn) (59,0 mn) (67,7 mn) (10,6%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 5 Q3 2019 presentation arcticpaper.com
Slide 6: Financial Summary YTDSEP 2019
Financial Summary YTDSEP 2019 Arctic Paper Group YTDSEP 2019 vs. YTDSEP 2018 PLN PLN PLN PLN 2 377,5 mn 178,3 mn 224,9 mn 10,8% (2 389,6 mn) (150,2 mn) (68,1 mn) (10,6%) Net sal es EBI T O per at i ng Cash Fl ow RO CE* * Rolling 12 months 6 Q3 2019 presentation arcticpaper.com
Slide 7: Market Environment & Operation
Market Environment & Operation 7 Q3 2019 presentation arcticpaper.com
Slide 8: Paper segment - fine paper prices
Paper segment - fine paper prices Graphic fine paper prices – German market SEP 2019 compared to JUN 2019 • UWF segment average price change -2.2% 900 • CWF segment average price change -4.1% 800 700 600 UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels Source: Arctic Paper based on RISI dat
Slide 9: Pulp segment - pulp prices
Pulp segment - pulp prices Average price Q3 2019 compared to Q3 2018 Pulp PIX Indexes Europe 1 400 • NBSK (long fibre): 23.5% 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): 21.8% lower 900 810 809 826 890 906 979 1 030 1 050 1 050 1 024 973 851 800 890
Slide 10: Output from paper mills
Output from paper mills Production and use of production capacity for all paper mills 99% Average Q3 2019 use of production capacity: 96% 95% 98% 98% 96% 450 95% 100% 92% 300 80% • 4.0% higher than in Q2 2019 167 167 164 166 161 154 149 150 60% Q3 2019 total production volume: 154k tonne 0 40% • 4.9
Slide 11: Paper segment - revenue and revenue per tonne
Paper segment - revenue and revenue per tonne Paper sales revenue 600 592 592 Total Q3 2019 (PLN 564mn) down 4.7% 569 575 574 573 564 564 542 compared to Q3 2018 550 500 450 Paper sales revenue per tonne Average Q3 2019 (PLN 3.62k) decreased 4,0 by 1.0% compared to average in Q3 2018 3,73 3,66 3,62
Slide 12: Financial results
Financial results 12 Q3 2019 presentation arcticpaper.com
Slide 13: Arctic Paper Group – EBIT evolution 2014-2019 (PLN mn)
Arctic Paper Group – EBIT evolution 2014-2019 (PLN mn) Paper segment 90 80 Pulp & paper 70 200 60 50 180 40 160 30 140 20 10 120 0 100 -10 2014 2015 2016 2017 2018 q1-q3 80 -20 2019 60 40 20 Pulp segment 0 2014 2015 2016 2017 2018 q1-q3 140 2019 120 100 80 60 40 20 0 2014 2015 2016 2017 2018 q1-q3 2
Slide 14: Arctic Paper Group – share price evolution 2019
Arctic Paper Group – share price evolution 2019 ATC.WA ARP.ST 3,80 Warsaw Stock Exchange 9,50 OMX Nordic Exchange Stockholm AB 3,60 9,00 3,40 8,50 3,20 8,00 3,00 7,50 PLN SEK 2,80 7,00 2,60 6,50 2,40 6,00 2,20 5,50 2,00 5,00 Q3 2019 presentation arcticpaper.com
Slide 15: Book value per share and share price evolution 2016-2019
Arctic Paper Group – book value per share and share price evolution (PLN/share) 2016-2019 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 book value per share Share price @ end of quarter Q3 2019 presentation arcticpaper.com
Slide 16: Key consolidated figures
Key consolidated figures • YTD SEP 2019 total revenues down -0.5% compared to SEP 2018 (-2.9% paper segment, +5.6% pulp segment revenue); • YTD SEP 2019 EBITDA up by PLN 24,7mn compared to YTD SEP 2018 (PLN 94,8mn paper segment: PLN +16,5mn; PLN 148,3mn pulp segment: PLN +8,2mn); • YTD SEP 2019 Net
Slide 17: Q3 2019 EBIT Arctic Paper Group – total
Q3 2019 EBIT Arctic Paper Group – total Q32019 EBIT Bridge 90 +48 +2 0 -3 -26,9 80 70 Q3 2019 EBIT PLN 50,6mn 60 +59 -19,8 +51 50 -8,2 • PLN 19,3mn lower than Q2 2019 40 30 20 • PLN 8,4mn lower than Q3 2018 10 0 EBIT evolution 70 59 59 58 51 47 45 51 39 -6 -21 Q3 2019 presentation arcticpaper.com
Slide 18: Summing-up
Summing-up 18 Q3 2019 presentation arcticpaper.com
Slide 19: Arctic Paper Group summing-up Q3 2019
Arctic Paper Group summing-up Q3 2019 • Arctic Paper Group, EBITDA on the level of PLN 71,5 mn (PLN 82,0 mn in Q3 2018). • Paper segment, EBITDA on the level of PLN 43,2 mn (PLN 27,5 mn in Q3 2018). • High capacity utilization and profit improvements for the paper segment. • NCRD-grant of PLN 16,4 m
Slide 20: Turning ideas into experiences.
Arctic Paper Vision: Turning ideas into experiences. 2017 – Full year presentation arcticpaper.com