0
Metsä Board
Metsä Board
Results 1Q 2014
Metsä Board
Key Events in 1Q 2014
‒ Profitability improved from previous quarter
‒ Folding boxboard delivery volumes incre...
Metsä Board
30
19
29
6
25
20
24 26
36
0
10
20
30
40
50
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
545 522 532 509 535 50...
Metsä Board
‒ Result was improved mainly by higher folding boxboard delivery volumes
‒ Folding boxboard contract prices in...
Metsä Board
Linerboard and Paper’s Profitability Continued at Good Level
in 1Q 2014
‒ Fresh forest fibre linerboard delive...
Metsä Board
Successful Early Refinancing Completed in 1Q 2014
‒ The new unsecured financing package consists of
‒ EUR 225 ...
Metsä Board
Short-Term Profitability Outlook
7
‒ Metsä Board’s operating result, excluding non-recurring
items, is in the ...
Metsä Board
Consistent Strategic Direction
8
‒ Paperboard is Metsä Board’s core business
‒ Focus on high-quality paperboar...
Metsä Board
New Innovative Light-Weight Paperboards Introduced in 1Q 2014
to Broaden Offering andAccelerate Growth
9
Carta...
Metsä Board
Efforts to Increase Sales Volumes in NorthAmerica Have Started
to Bring Results
10
‒ Metsä Board’s FBB, that i...
Metsä Board
InAddition to Folding Boxboard Metsä Board Develops Strongly
and Successfully Its Linerboard Business
11
‒ Kem...
Metsä Board
Appendix
Metsä Board
EUR / tonne
Folding Boxboard Market Price in Europe
2004 – 1Q 2014
13
Source: Pöyry Management Consulting
800
...
Metsä Board
EUR / tonne
Paper and Pulp Market Price in Europe
1998 – 1Q 2014
Coated fine paper (100 g)
Uncoated fine paper...
Metsä Board
41,0
33,3 32,4
38,7
40,7
0
5
10
15
20
25
30
35
40
45
1Q13 2Q13 3Q13 4Q13 1Q14
6970
75
74
69
0
10
20
30
40
50
6...
Metsä Board
BusinessArea Performance – Comparison to Previous Quarter
Sales, m€
1Q 20144Q 2013
16
208
250
214
271
0
50
100...
Metsä Board
BusinessArea Performance – Comparison to Previous Year*
1Q 20141Q 2013
17
Sales, m€
222
288
214
271
0
50
100
1...
Metsä Board
Ownership Structure 30.4.2014
Shares Votes
Source: Euroland
18
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Metsä Board's 1Q 2014 interim report presentation

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Metsä Board's 1Q 2014 interim report presentation

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Transcript of "Metsä Board's 1Q 2014 interim report presentation"

  1. 1. Metsä Board Metsä Board Results 1Q 2014
  2. 2. Metsä Board Key Events in 1Q 2014 ‒ Profitability improved from previous quarter ‒ Folding boxboard delivery volumes increased in Europe and outside Europe. Strongest growth was seen in North America ‒ Folding boxboard European contract prices increased and price increases for fresh forest fibre linerboard and uncoated fine paper were announced ‒ New folding boxboards and linerboards were introduced to the market ‒ Lielahti real estate was sold for EUR 26 million. EUR 19.7 million was paid for UPM based on the Court of Arbitration’s judgment ‒ Successful refinancing including a 5 year EUR 225 million bond with an interest rate of 4.000 per cent 2
  3. 3. Metsä Board 30 19 29 6 25 20 24 26 36 0 10 20 30 40 50 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 545 522 532 509 535 503 479502 501 0 200 400 600 800 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 -9 17 10 9 19 9 18 4 21 -10 0 10 20 30 40 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Sales, m€ Operating result excl. non-rec. items, m€ Result before taxes excl. non-rec. items, m€ Operating Result in 1Q 2014 Improved as Expected Mainly Due to Increased Deliveries 3 1Q 2014 net financing costs were increased by about 6 m€ due to one time costs related to refinancing
  4. 4. Metsä Board ‒ Result was improved mainly by higher folding boxboard delivery volumes ‒ Folding boxboard contract prices increased in Europe. Average sales prices remained stable due to sales mix ‒ Folding boxboard deliveries are expected to slightly increase in 2Q 2014 ‒ Product inventories have been increased to accelerate growth outside Europe ‒ New folding boxboards Carta Dedica for cups and plates and Carta Allura for luxury packaging were introduced 4 EBIT, excl. non-recurring items Sales Cartonboard’s 1Q 2014 Operating Result Clearly Better than in the Previous Quarter m€ m€ 18 20 15 15 10 0 6 12 18 24 30 1Q13 2Q13 3Q13 4Q13 1Q14 214 208220218222 0 50 100 150 200 250 1Q13 2Q13 3Q13 4Q13 1Q14
  5. 5. Metsä Board Linerboard and Paper’s Profitability Continued at Good Level in 1Q 2014 ‒ Fresh forest fibre linerboard deliveries increased from previous quarter and prices were stable ‒ Uncoated fine and coated paper delivery volumes decreased. Uncoated fine paper price increased slightly and coated paper prices remained stable ‒ Market pulp delivery volumes increased and prices were stable in 1Q 2014 ‒ Fresh forest fibre linerboard, coated paper and market pulp deliveries are expected to be stable and uncoated paper volumes to decrease slightly in 2Q ‒ Metsä Board has announced to increase fresh forest fibre linerboard and uncoated fine paper prices in Europe as of April 2014 ‒ Extensive annual maintenance shutdown in Husum integrate will have a negative result impact in 2Q 2014 5 EBIT, excl non-recurring items m€ m€ Sales 20 15 16 7 20 0 5 10 15 20 25 30 1Q13 2Q13 3Q13 4Q13 1Q14 271288 269 267 250 0 50 100 150 200 250 300 350 1Q13 2Q13 3Q13 4Q13 1Q14
  6. 6. Metsä Board Successful Early Refinancing Completed in 1Q 2014 ‒ The new unsecured financing package consists of ‒ EUR 225 million bond issue at coupon of 4 per cent (over 10 times oversubscribed) ‒ EUR 150 million term loan ‒ EUR 100 million revolving credit facility ‒ Gross debt EUR 721 million, cash and interest bearing receivables EUR 129 million and net debt EUR 593 million ‒ Net gearing 69%, equity ratio 41% and average interest rate dropped to 4.3% at the end of 1Q 2014 ‒ Lielahti real estate in Finland was divested for EUR 26 million. EUR 19.7 million was paid for UPM based on the Court of Arbitration’s judgment 6 Average Interest Rate, % Net Debt, m€ 593 2403 0 500 1000 1500 2000 2500 3000 2006 2008 2010 2012 1Q14 4,3 6,7 0 1 2 3 4 5 6 7 8 1Q12 3Q12 1Q13 3Q13 1Q14
  7. 7. Metsä Board Short-Term Profitability Outlook 7 ‒ Metsä Board’s operating result, excluding non-recurring items, is in the second quarter of 2014 expected to weaken from the first quarter of 2014 due to the annual maintenance shutdowns at Husum mill integrate and at the associated company Metsä Fibre’s Joutseno and Äänekoski pulp mills
  8. 8. Metsä Board Consistent Strategic Direction 8 ‒ Paperboard is Metsä Board’s core business ‒ Focus on high-quality paperboards ‒ Smaller but healthier paper business ‒ Heavy re-engineering and successful divestments ‒ Extensive fibre know-how and pulp self-sufficiency ‒ Metsä Board’s role in Metsä Fibre’s planned new pulp mill in Äänekoski to be clarified latest early next year ‒ Continuous development towards Super Productivity
  9. 9. Metsä Board New Innovative Light-Weight Paperboards Introduced in 1Q 2014 to Broaden Offering andAccelerate Growth 9 Carta Dedica Light weight cup stock and food service board Carta Allura Luxury packaging board Modo Northern Light Coated High quality liner for corrugated and microflute packaging
  10. 10. Metsä Board Efforts to Increase Sales Volumes in NorthAmerica Have Started to Bring Results 10 ‒ Metsä Board’s FBB, that is even over 30% lighter in weight than other paperboards has proven its competitiveness ‒ Kemi’s coated fresh forest fibre linerboards are clear market leaders and quality benchmarks in North America ‒ Major breakthrough with new Carta Dedica in food service segment ‒ Metsä Board volume growth target in North America is in 2014 over 30% from the 170 000 tonnes in 2013 Fresh forest fibre linerboard deliveries to North America, 1,000 tonnes 0 30 60 90 120 150 2009 2010 2011 2012 2013 0 4 8 12 16 1Q13 2Q13 3Q13 4Q13 1Q14 FBB deliveries to North America, 1,000 tonnes +82% +70%
  11. 11. Metsä Board InAddition to Folding Boxboard Metsä Board Develops Strongly and Successfully Its Linerboard Business 11 ‒ Kemi’s production will by end 2014 focus almost fully on higher value added coated grades. Uncoated grades will mostly be produced in Husum ‒ Kemi mill’s annual capacity will be increased from 375 000 to 400 000 tonnes ‒ Husum’s linerboard production developing as planned to exceed 100 000 tonnes in 2014 ‒ Target is to benefit Husum’s full linerboard production potential of close to 300 000 tonnes during the next few years ‒ Capacity additions have been announced also by other producers. Market balance in the high quality segment is expected to remain healthy
  12. 12. Metsä Board Appendix
  13. 13. Metsä Board EUR / tonne Folding Boxboard Market Price in Europe 2004 – 1Q 2014 13 Source: Pöyry Management Consulting 800 900 1000 1100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
  14. 14. Metsä Board EUR / tonne Paper and Pulp Market Price in Europe 1998 – 1Q 2014 Coated fine paper (100 g) Uncoated fine paper (B-copy, 80 g) Softwood pulp NBSK Coated magazine paper LWC (60g) Source: Foex, Reuters EUR/USD EUR/USD 400 500 600 700 800 900 1000 1100 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0,8 0,9 1 1,1 1,2 1,3 1,4 1,5 1,6 1,7 14
  15. 15. Metsä Board 41,0 33,3 32,4 38,7 40,7 0 5 10 15 20 25 30 35 40 45 1Q13 2Q13 3Q13 4Q13 1Q14 6970 75 74 69 0 10 20 30 40 50 60 70 80 1Q13 2Q13 3Q13 4Q13 1Q14 Balance Sheet Ratios Equity Ratio Net gearing %% 15
  16. 16. Metsä Board BusinessArea Performance – Comparison to Previous Quarter Sales, m€ 1Q 20144Q 2013 16 208 250 214 271 0 50 100 150 200 250 300 350 Cartonboard Linerboard and Paper 10 20 18 20 0 6 12 18 24 30 Cartonboard Linerboard and Paper Operating result, excluding non-recurring items, m€
  17. 17. Metsä Board BusinessArea Performance – Comparison to Previous Year* 1Q 20141Q 2013 17 Sales, m€ 222 288 214 271 0 50 100 150 200 250 300 350 Cartonboard Linerboard and Paper 20 11 18 20 0 6 12 18 24 30 Cartonboard Linerboard and Paper Operating result, excluding non-recurring items, m€
  18. 18. Metsä Board Ownership Structure 30.4.2014 Shares Votes Source: Euroland 18
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