Billerud Ab · OMXSTO:BILL
Billerud Ab — Q3 2012 Earnings Presentation
22 slides from Billerud Ab's earnings presentation, Oct 25, 2012
Slide 1: Interim Report January-September 2012
INTERIM REPORT | JANUARY-SEPTEMBER 2012 Per Lindberg, CEO and President, and Susanne Lithander, CFO | 25 October, 2012 1
Slide 2: Agenda
AGENDA Highlights Development by Business Area Financials Outlook 2
Slide 3: Increased sales due to higher volumes
INCREASED SALES DUE TO HIGHER VOLUMES +8% +10% 400 Sales volume, ktonnes 2 500 350 Net sales, MSEK 2 000 300 1 500 250 374 413 2 440 2 628 200 1 000 150 100 500 50 0 0 Q2 -12 Q3 -12 Q2 -12 Q3 -12 3
Slide 4: Adjusted operating profit
ADJUSTED OPERATING PROFIT 250 199 200 177 38 16 150 MSEK Non-recurring costs 100 Operating profit 161 161 50 0 Q2 -12 Q3 -12 Maintenance stops: ̶ 81 4
Slide 5: Q3 2012 in sum
Q3 2012 IN SUM Lower costs compensated for lower exchange rates for invoicing as a result of a stronger SEK Stable order situation at normal levels for packaging paper Price increases implemented and a new has been announced 2% higher prices in local currency for packaging paper vs. Q2 2012 Integrat
Slide 6: Three business areas becomes two in Q3
THREE BUSINESS AREAS BECOMES TWO IN Q3 Packaging & Packaging Boards Market Pulp Speciality Paper 6
Slide 7: Packaging & Speciality Paper
PACKAGING & SPECIALITY PAPER Market situation in Q3 2012 Stable order situation for kraft and sack paper Normal order levels Increased prices in local currency vs. Q2 2012 7
Slide 8: Packaging & Speciality Paper Financials – Q3 2012 vs. Q2 2012
PACKAGING & SPECIALITY PAPER Financials – Q3 2012 vs. Q2 2012 160 Operating profit down by MSEK 51 140 Operating profit, MSEK 120 Maintenance shutdowns 100 80 New operations added – Finland and 60 market pulp 40 Increased packaging paper prices in 20 local currency almost offset a less 0 Q3 -11 Q4 -
Slide 9: Packaging Boards
PACKAGING BOARDS Market situation in Q3 2012 Stable order situation for containerboard Slightly better order levels than normal for the season Increased prices in local currency vs. Q2 2012 Implementation of price increase continues 9
Slide 10: Packaging Boards Financials – Q3 2012 vs. Q2 2012
PACKAGING BOARDS Financials – Q3 2012 vs. Q2 2011 140 Operating profit up by MSEK 6 120 Operating profit, MSEK 100 Lower costs and higher prices in 80 local currency compensated for a 60 less favourable currency situation 40 20 0 Q3 -11 Q4 -11 Q1 - 12 Q2 -12 Q3 -12 Q3 -12 Q2 -12 Q3 -11 FY 2011 Net s
Slide 11: Financial Information
BILLERUD FINANCIAL INFORMATION
Slide 12: Quarterly key figures
QUARTERLY KEY FIGURES Q3 -12 Q2 -12 Q3 -11 Net sales, MSEK 2 628 2 440 2 327 Operating profit, MSEK 161 161 296 Operating margin 6% 7% 13% Profit/share, SEK 0.99 1.14 2.03 Net debt/equity ratio 0.19 0.23 -0.03 Sales volume (ktonnes) 413 374 335 12
Slide 13: Operating profit bridge Q3 2012 vs. Q2 2012
OPERATING PROFIT BRIDGE Q3 2012 vs. Q2 2012 180 +48 161 +2 161 0 160 -9 140 +18 120 100 MSEK -59 80 60 40 20 0 Operating Sales & Selling prices Effects of Change in Change in Change in Operating profit production (in respective exchange rate variable costs fixed costs depreciation profit Q2 2012 vol
Slide 14: January-September key figures
JANUARY-SEPTEMBER KEY FIGURES Jan-Sep 2012 Jan-Sep 2011 vs. 2011 Net sales, MSEK 7 359 7 257 +1% Operating profit, MSEK 464 903 -49% Operating margin 6% 12% -6 p.p. Profit/share, SEK 3.07 6.19 -50% Net debt/equity ratio 0.19 -0.03 -0.22 Sales volume (ktonnes) 1 147 1 039 +10% 14
Slide 15: Operating profit bridge Jan-Sep 2012 vs. Jan-Sep 2011
OPERATING PROFIT BRIDGE JAN-SEP 2012 vs. JAN-SEP 2011 1 200 +179 1 000 903 800 MSEK 600 +173 -536 464 -121 -1 400 -133 200 0 Operating Sales & Selling prices Effects of Change in Change in Change in Operating profit production (in respective exchange rate variable costs fixed costs depreciation prof
Slide 16: Cash flow generation from operation
CASH FLOW GENERATION FROM OPERATION MSEK Jan-Sep Jan-Sep Q3 -12 Q2 -12 Q3 -11 2012 2011 Operating surplus, etc 359 316 464 973 1 366 Change in working capital, etc. 193 -54 83 161 -161 Net financial items, taxes, etc. -62 -50 -16 -314 -207 Cash flow from operating 490 212 531 820 998 activities Curr
Slide 17: Market prices affecting result
MARKET PRICES AFFECTING RESULT Electricity index (Sweden*) Wood price index Source: Nordpool. *Price area Sweden Source: Billerud 17
Slide 18: Market prices affecting result
MARKET PRICES AFFECTING RESULT Market pulp (USD/t) TCW index* Note: Average price for the quarter Source: Riksbanken *Total Competitiveness Weights Index 18
Slide 19: Currency situation
CURRENCY SITUATION • Profit effect of net flow hedging MSEK 85 (-5) for Q3 2012 and MSEK 124 (146) for Jan-Sep 2012 • Market value of outstanding contracts not relating to trade receivable was MSEK 55* Average hedged currency rates (share of net flow) Hedge level 12 months forward: Q4 -12 Q1 -13 Q2
Slide 20: Outlook
BILLERUD OUTLOOK
Slide 21: Outlook
OUTLOOK The order situation in the packaging paper segments at the beginning of the fourth quarter of 2012 was on average normal for the season and is expected to remain so in the majority of the product segments for the rest of 2012 The impact of price increases for primary fibre-based containerboa
Slide 22: Q&A
Q&A We believe in embracing what is important to our customers, our company, our colleagues, and the environment. By always giving back more than we take, we are building a company for future generations. 22