Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q3 2010 Earnings Presentation
20 slides from Arctic Paper's earnings presentation, Nov 15, 2010
Slide 1: Arctic Paper Group 3rd quarter 2010 results
Arctic Paper Group 3rd quarter 2010 results Michał Jarczyński, CEO Michał Bartkowiak, CFO Warsaw, 15 November 2010
Slide 2: Disclaimer
Disclaimer Please read the information below carefully. TRANSLATORS’ EXPLANATORY NOTE The following document is a translation of the presentation of the Arctic Paper Group. In the event of any discrepancy in interpreting the terminology, the Polish version is binding. This presentation (the ‘Present
Slide 3: Agenda
Agenda Market environment Financial results Summary 3
Slide 4: Market environment
Slide 5: Market environment: Deliveries of fine paper in Europe
Market environment Deliveries of fine paper in Europe Deliveries of paper in Europe (‘000 metric tonnes) Change 3Q +6,6 3 119 2 925 4 500 3 938 4 000 1 465 1 512 3 582 3 522 3 499 3 309 3 500 3 203 3 166 3 288 3 119 2 919 2 925 1 460 1 607 3 000 2 500 3Q 2009 3Q 2010 2 003 1 892 Change YTD 2 000 1 7
Slide 6: Market environment: Fine paper prices
Market environment Fine paper prices ` In 3Q 2010 prices of fine paper continued to rise, but some Graphic paper prices in EUR – German market paper producers decided to introduce seasonal price 900 reductions in July and August. ` Most major paper producers announced further price 850 increases sta
Slide 7: Market environment: Exchange rates
Market environment Exchange rates Changes in EUR and USD rates vs. PLN Changes in EUR and USD rates vs. SEK 5,0 12,0 4,70 EUR/PLN EUR/SEK USD/PLN 10,98 10,85 USD/SEK 4,47 11,0 4,5 10,27 4,22 10,22 4,11 4,15 10,0 9,71 3,99 9,51 4,0 3,86 9,15 9,0 3,54 3,39 8,27 3,5 3,17 7,70 7,79 8,0 7,13 7,22 3,0 2,8
Slide 8: Market environment: Pulp prices
Market environment Pulp prices Pulp prices (USD/metric tonne) ` As of the end of 3Q 2010, pulp prices 1 000 976 973 929 were at USD 973/tonne for NBSK 900 889 890 869 and USD 870/tonne for BHKP. The 918 855 842 838 831 799 870 827 average price for NBSK in 3Q 2010 800 835 was 44,8% higher than in th
Slide 9: Market environment: Pulp prices
Market environment Pulp prices NBSK & BHKP PIX in USD and PLN per metric tonne NBSK & BHKP PIX in USD and SEK per metric tonne 2 000 3 500 2 000 8 000 1 800 3 000 1 800 7 000 6 403 2 716 1 600 1 600 6 000 2 454 2 500 5 785 1 400 1 400 5 000 2 000 1 200 1 200 4 000 1 500 1 000 1 000 963 3 000 963 870
Slide 10: Financial results
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Slide 11: Use of production capacity and sales volume
Financial results Use of production capacity and sales volume Use of production capacity for all mills 120% 98% 97% 98% 97% 100% 94% 92% 94% ` In 3Q 2010 use of production capacity calculated for all mills in the group was over 94%. Average use of production 80% capacity over the last 7 quarters was
Slide 12: Sales revenue
Financial results Sales revenue Total and LFL sales revenue (PLN ‘000) 22,7% 1 800 1 689 ` The AP Group’s sales revenue in 3Q 2010 was PLN 627 mln, 1 500 1 376 which represents growth of 38.1% compared to 3Q 2009, and cumulatively PLN 1,689 mln, representing growth of 22.7%. 1 200 Revenues in 3Q 201
Slide 13: Main items on profit and loss statement
Financial results Main items on profit and loss statement 3Q 2010 vs. 3Q 2010 vs. YTD 3Q'2010 vs. 3Q 2Q 3Q 2Q 2010 3Q 2009 YTD 3Q YTD 3Q YTD 3Q'2009 PLN'000 2010 2010 2009 Change % Change % 2010 2009 Change % Revenues 627 122 582 948 454 211 7,6% 38,1% 1 689 429 1 376 317 22,8% Gross profit on sales
Slide 14: Summary of quarter
Slide 15: Summary of 3rd quarter of 2010
Summary of 3rd quarter of 2010 ` Better market results in 3Q 2010 compared to the 2nd quarter, particular with respect to paper prices. ` Full use of production capacity, with a noticeably lower inflow of orders in the 3rd quarter from the very high level noted in the previous two quarters. ` Higher
Slide 16: Thank you for your attention
Thank you for your attention Michał Jarczyński, CEO ARCTIC PAPER GROUP tel. : +48 61 6262 007 e‐mail: michal.jarczynski@arcticpaper.com Michał Bartkowiak, CFO ARCTIC PAPER GROUP tel. : +48 61 6262 006 e‐mail: michal.bartkowiak@arcticpaper.com Media: Iwona Mojsiuszko, M+G tel. +48 22 625 71 40, +48 5
Slide 17: Additional slides
Additional slides
Slide 18: Description of the Arctic Paper Group
Description of the Arctic Paper Group Key competitive advantages and information about Arctic Paper Group Strong brand and leading position on the Developed book paper market sales network in Europe One of the leading manufacturers of high Optimal geographical structure of grade graphic paper in
Slide 19: Developed sales network
Developed sales network Close customer relationships and a better understanding of the changes ensuing on the market Arctic Paper has its own developed sales network including 3 Distribution Companies and 15 Sales Offices, which means more than 130 sales staff working directly with our customers
Slide 20: Our paper mills
Our paper mills Efficiency and flexibility of production processes Production capacity 275,000 tonnes per annum 160,000 tonnes per annum 115,000 tonnes per annum 265,000 tonnes per annum Uncoated wood‐free paper Uncoated wood‐free paper Bulky wood‐containing paper Coated wood‐free paper Brand: Amber