Arctic Paper Group Results for Q1 2017 › Global › IR Documents › Presentations … · Arctic...
Transcript of Arctic Paper Group Results for Q1 2017 › Global › IR Documents › Presentations … · Arctic...
Per Skoglund, CEO Arctic Paper
Małgorzata Majewska, CFO Arctic Paper
Arctic Paper GroupResults for Q1 2017
Arctic Paper
DisclaimerPlease read the information below carefully
This presentation (the ‘Presentation’) was prepared by Arctic Paper S.A. (the ‘Company’) for information purposes only for use by investors, banks and the Company’scustomers as well as market analysts and under no circumstances may it be treated as a part of an invitation or offer to purchase securities, an invitation to make investmentsor conduct transactions regarding securities, an inducement to make purchase offers or a recommendation to conclude any transactions, in particular transactions regarding theCompany's securities.
The information contained in the Presentation was taken from publicly available sources which the Company believes to be reliable. However, the Company cannot guarantee itsreliability or completeness, except for the information on the Company and its Group. The Company shall not be held liable for the consequences of decisions made on the basisof or in reliance on the information contained in this Presentation. The information contained in the Presentation has not been independently verified and may be subject tochange at any time. The publication of the data contained in the Presentation by the Company does not constitute a breach of the provisions of the law which apply tocompanies whose shares are listed on the regulated market, in particular the regulated market operated by the Warsaw Stock Exchange in Poland and NASDAQ OMX Stockholmin Sweden. The information contained herein has been published by the Company in its current and periodic reports, or constitutes a supplement thereto which is not required tobe published by the Company in order to comply with the Company’s reporting requirements as a listed company.
Under no circumstances should information contained in this Presentation be construed as the explicit or implicit submission of a representation or warranty of any type by theCompany or by persons acting on its behalf. Furthermore, neither the Company nor any person acting on its behalf shall be held liable in any respect for any damage which mayarise as a result of negligence or for any other cause as a result of the use of this Presentation or any information contained in it, or for damage which may otherwise arise inconnection with information constituting a part of this Presentation.
The Company is not obliged to publish updates and amendments to the information, data and representations contained in this Presentation as a result of a change of theCompany’s strategy or intentions or the appearance of unexpected facts or circumstances which affect such strategy or intentions of the Company, unless such an obligationarises from the provisions of law.
This Presentation contains information on the paper industry. With the exception of information indicated as originating from a specified source, the market information referredto above has been prepared on the basis of data received from third parties who are named in this Presentation and contains estimates, assessments, corrections and opinionsbased on the Company's experience and knowledge of the sector in which it conducts business. Because the market information referred to above may have been partiallyprepared with the use of estimates, assessments, corrections and opinions and has not been verified by independent entities, to a certain extent, this information is of asubjective nature, with the exception of the information which has been indicated as information originating from third parties from a specified source. It is presumed thatestimates, assessments, corrections and opinions are based on reasonable grounds and that the market information which has been prepared duly reflects the situation of theindustry on the markets on which the Company conducts business. However, there is no certainty that the estimates, assessments, corrections and opinions are the mostappropriate basis for drawing conclusions on the market information or that market information taken from other sources may not differ significantly from the marketinformation contained in this Presentation.
The Company would like to point out to the readers of this Presentation that the only reliable source of data on Arctic Paper's financial results, forecasts and events, as well asthe Company’s indicators, is the current and periodic reports submitted by the Company in compliance with reporting requirements under Polish and Swedish law.
This Presentation should be read together with the 2017 consolidated and standalone report and report for the 2016.
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Arctic Paper
Agenda
Market environmentOperations and financial resultsSummary for the Q1 2017
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Arctic Paper
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Market environment
Arctic Paper
2 8472 800 (-1,7)
2 847 2 6922 800 (+4,0)
0
1 000
2 000
3 000
4 000
5 000
2016 2017 Q1 16 Q4 16 Q1 17
812
943
880
978
444
534485
536
368409 395
442
200
450
700
950
1 200
Fine papers Uncoated woodfree Coated woodfree
Deliveries of fine paper
Q1 2017 vs. Q1 2016 -1,7%
Uncoated woodfree up +0,2%
Coated woodfree down -3,8%
Arctic Paper volume up +1,8%
Q1 2017 vs. Q4 2016 +4,0%
Uncoated woodfree up 8,8%
Coated woodfree down -1,5%
Arctic Paper volume up +11,3%
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Arctic Paper YTD Q1 2017 volume structure
Volume 175,6 t
TONS
UWF68%
CWF32%
Monthly deliveries of fine paper in Europe
Quarterly deliveries of fine paper in Europe
Source: Arctic Paper based on EuroGraph data
thou
sand
met
ric
tons
Source: Arctic Paper based on EuroGraph data
thou
sand
met
ric
tons
Current period Compared period
Arctic Paper
Minimumprice
Averageprice
Maximumprice
Minimumprice
Averageprice
Maximumprice
UWF 0,9% 1,6% 2,5% -2,1% -1,4% -0,3%
CWF 0,7% 0,8% 1,0% -3,4% -3,2% -2,4%
03 17 vs . 03 1603 17 vs . 12 16
600
700
800
900
1000
UWF 80g Sheets UWF 80g Reels CWF 90g Sheets CWF 90g Reels
Fine paper prices
Mar 2017 vs. Dec 2016
UWF segment average price change +1,6%(Arctic Paper: +1,9%, measured in PLN)
CWF segment average price change +0,8% (Arctic Paper: -1,0%, measured in PLN)
Mar 2017 vs. Mar 2016
UWF segment average price change -1,4%
(Arctic Paper: -3,7%, measured in PLN)
CWF segment average price change -3,2% (Arctic Paper: -4,9%, measured in PLN)
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Graphic fine paper prices - German market
Change in price for graphic paper in EUR - Western Europe
Source: Arctic Paper based on RISI data.
EUR /
ton
Source: Arctic Paper based on RISI data.
Arctic Paper
655 680762
680
+3,9 -10,8
AverageQ4 16
AverageQ1 17
AverageQ1 16
AverageQ1 17
809 816 791 816
+0,9 +3,2
AverageQ4 16
AverageQ1 17
AverageQ1 16
AverageQ1 17
922 926 931 932
880853 839
803 789 806 810 809 826
765742 725 743 759
797 810789
737
682662 653
722
0
100
200
300
400
500
600
700
300
500
700
900
1 100
NBSK vs. BHKP NBSK PIX USD BHKP PIX USD
Pulp prices
Average price Q1 2017 compared to Q1 2016
NBSK (long fibre): 3,2% higher
BHKP (short fibre): 10,8% lower
Arctic Paper costs 12,6% lower (measured in PLN)
Average price Q1 2017 compared to Q4 2016
NBSK (long fibre): 0,9% higher
BHKP (short fibre): 3,9% higher
Arctic Paper costs 0,7% higher (measured in PLN)
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Arctic Paper YTD Q1 2017 Structure of pulp consumption
CONSUMPTION114,6 t
TONS
BHKP73%
NBSK19%
Pulp PIX Indexes Europe
USD
/ t
on
Source: Arctic Paper based on Foex data.CTMP8%
Arctic Paper
0,9
1,0
1,1
1,2
1,3
1,4
1,5
2013 2014 2015 2016 2017
7,8
8,3
8,8
9,3
9,8
10,3
2013 2014 2015 2016 2017
3,8
4,1
4,3
4,6
4,8
2013 2014 2015 2016 2017
Currency exposure
Average exch. rate Q1 2017 compared to Q4 2016
EUR/PLN -1,3%
EUR/SEK -2,5%
EUR/USD -1,3%
Average exch. rate Q1 2017 compared to Q1 2016
EUR/PLN -1,0%
EUR/SEK +1,9%
EUR/USD -3,4%
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Arctic Paper YTD Q1 2017 Revenue and costs structure
REVENUE0,582 mln
PLN
PLN13%
EUR61%
EUR/PLN changes
GBP8%
SEK7%
COSTS0,541 mln
PLN
EUR/SEK changes
EUR/USD changes
31/034.22
31/039.55
31/031.07EUR
21%
USD38%
SEK22%
PLN17%
Arctic Paper
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Operations
Arctic Paper
166 162 177 168 174151 169 166 169 158 167 161 167
95% 96%98% 97% 99%
89%93% 95%
100%94% 95% 95%
98%
40%
60%
80%
100%
120%
0
150
300
450
600
172 176166 162176
164 172 167181
159 167 157172
160171
158176
0
60
120
180
240
Budget production capacity and sales volume*
Average Q1 2017 use of budget production capacity : 98%
5,1% higher than Q4 2016
Total Q1 2017 total production volume : 166,7k ton
3,8% higher than Q4 2016
* AP Mochenwangen excluded from both production capacity and production volume.
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Production and use of production capacity for all paper mills*
Prod
uction
in t
hous
and
tons
Paper sales volume*
% o
f no
min
alca
paci
ty
Thou
sand
tons
* AP Mochenwangen excluded from production and capacity
* AP Mochenwangen excluded from sales volume.
Arctic Paper
3,25 3,21 3,163,08 3,10 3,13
3,213,13
3,243,35
3,42 3,38 3,33 3,30 3,27
2,0
2,5
3,0
3,5
4,0
590 575541 522555
504535 524
579
498542 525
590540 569
520575
0
200
400
600
800
Paper sales revenue and revenue per ton*
Q1 2017 (PLN 575m) down 2,5% compared to Q1 2016
Q1 2017 up 10,5% compared to Q4 2016
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Paper sales revenue*
mili
on P
LN
Paper sales revenue per ton*
Thou
sand
PLN
Q1 2017 (PLN 3,27k) decrease by 4,3% comparedto Q1 2016
Q1 2017 decrease by 0,7% compared to Q4 2016
* AP Mochenwangen excluded from both sales revenue and revenue per ton.
* AP Mochenwangen excluded from sales revenue
* AP Mochenwangen excluded from revenue per ton.
Arctic Paper
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Financial results
Arctic Paper
(PLN thousands)Q1
2017Q4
2016Q1
2016
Paper sales volume (000' tonnes) 176 158 172Pulp sales volume (000' tonnes) 101 69 93Revenues 773 902 707 166 778 560Gross profit on sales 121 165 77 072 118 034% margin 15,7 10,9 15,2EBITDA 75 498 38 384 70 669% margin 9,8 5,4 9,1EBIT 44 121 1 924 41 376% margin 5,7 0,3 5,3Net result 32 934 -950 19 628% margin 4,3 -0,1 2,5Net result from continuing operations 35 082 -10 361 24 707% margin 4,5 -1,5 3,2Net result from discontinued operations -2 148 9 411 -5 079% margin -0,3 1,3 -0,7
Net operating cash flow 21 935 87 089 245Capital expenditures 30 872 58 655 25 670Cash and equivalents 101 595 130 157 168 237
Total assets 1 706 908 1 770 081 1 793 672Capital employed 968 538 1 027 179 1 100 006Total equity 738 370 742 902 693 665Net debt 267 464 257 442 274 962
Eearnings per share (PLN) 0,48 -0,01 0,28Equity / assets ratio (%) 43 42 39Net debt / equity ratio (%) 36 35 40Net debt / EBITDA (times) 1,05x 1,03x 1,30x
Key consolidated figuresPage 13
Q1 2017 EBITDA up by PLN 4,8m compared to Q1 2016(39,0m PLN paper segment: +8,3 PLN,36,4m PLN pulp segment: -3,4m PLN)
Cash on the level of 101,6m PLN(94,0m PLN paper segment: -15,9m PLN, 7,5m PLN pulp segment: -50,7m PLN)
Net debt on the level of 267,4 PLN vs 274,9 PLN in MAR 2016
Q1 2017 total revenues down -0,6%compared to Q1 2016 (-2,5% paper segment, +5,4% pulp segment revenue)
CAPEX on the level of 30,9m PLN(11,8m PLN paper segment: +0,8m PLN, 19,1m PLN pulp segment: +4,4m PLN)
Net result from continuing operations: + PLN 10,4m compared to Q1 2016(17,0m PLN paper segment: +15,5 PLN, 18,0m PLN pulp segment: -5,1m PLN)
Arctic Paper
31
39
25 29
16
31 29
49
39 39
Q1 2017 Operating result and EBITDA (excluding Rottneros)
Operating result for the Q1 2017 18,8m PLN
+1,4m PLN higher than Q4 2016
+7,9m PLN higher than Q1 2016
Q1 2017 EBITDA 39,0m PLN
+0,2m PLN higher than Q4 2016
+8,3m PLN higher than Q1 2016
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Q1 Operating result bridge
EBITDA evolution
Mill
ion
PLN
Mill
ion
PLN
Arctic Paper
7175
78
39
70
25
7164
77
38
75
Q1 2017 Consolidated operating result and EBITDA (including Rottneros)
Operating result for the Q1 2017 44,1m PLN
+42,2mPLN higher than Q4 2016
+2,7m PLN higher than Q1 2016
Q1 2017 EBITDA 75,5m PLN
+37,1m PLN higher than Q4 2016
+4,8m PLN higher than Q1 2016
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Q1 Operating result bridge
EBITDA evolution
Mill
ion
PLN
Mill
ion
PLN
Arctic Paper
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Summary of Q1 2017
Arctic Paper
Market environment:
Still favourable pulp prices market in Q1 for paper segment, BHKP, short fibre average Q1 2017 -10,8% and NBSK, long fibre average Q1 2017 + 3,2% if compared to Q1 2016, but in the end of Q1 2017 growth trends were observed and market showes clear signals of pulp prices significant increases in next comming months;
The market for fine graphical papers developed in two directions: while the uncoated market remained on a stable level (increasing by 0.2%), the coated market continued to decline by 3,8% (compared to Q1 2016, according to EuroGraphdata). During the same period Arctic Paper increased its sales volume by 1.8%;
The USD to the Euro remaining at low unfavourable for paper segment level;
Arctic Paper Group:
EBITDA for Q1 2017 without Rottneros on level of 39,0m PLN vs. 31,0m PLN in Q1 2016;
EBITDA for Q1 2017 of Arctic Paper Group with Rottneros was 75,5m PLN vs. 71,0m PLN in Q1 2016 (paper segment upby 8,3m PLN, pulp segment down by -3,4m PLN);
Sales revenues in the paper segment in the Q1 2017 were over 575m PLN, down 2.5% compared to the same period of 2016, sales revenues (incl. Rottneros) were on the level of 774m PLN, down 0,6% compared to Q1 2016;
Q1 2017 in briefPage 17
Per Skoglund, CEO Arctic Paper
Małgorzata Majewska, CFO Arctic Paper
Thank you!