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Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
Metsä Board 3Q 2013 interim report presentation
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Metsä Board 3Q 2013 interim report presentation

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Metsä Board Corporation Interim Report 1 January – 30 September 2013 presentation. Published on the 6th of November 2013 at 12:00 noon.

Metsä Board Corporation Interim Report 1 January – 30 September 2013 presentation. Published on the 6th of November 2013 at 12:00 noon.

Published in: Investor Relations
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  • 1. Metsä Board Results 3Q 2013 1 Metsä Board
  • 2. Key Events in 3Q 2013 ‒ Folding boxboard and kraftliner deliveries increased slightly from previous quarter ‒ Metsä Board announced a FBB price increase in Europe ‒ Husum kraftliner production and sales were increased as planned and the new Modo Northern Light was launched ‒ Maintenance shutdowns at Kemi and Husum mills were completed as planned ‒ Paper market situation remained weak in Europe ‒ Metsä Board divested its 51 per cent holding in Metsä Group Treasury to Metsäliitto Cooperative 2 Metsä Board
  • 3. Operating Result in 3Q 2013 Weakened Due to Planned Maintenance Shutdowns Sales, m€ Operating result excl. non-rec. items, m€ 60 800 40 600 20 400 200 685 660 616 524 545 522 532 509 535 503 43 32 20 6 -21 0 -40 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Result before taxes excl. non-rec. items, m€ 50 25 0 17 16 10 -9 -11 30 26 19 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 -20 28 24 6 0 502 25 9 4 19 9 -33 -25 -50 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 3 Metsä Board
  • 4. Paperboard’s 3Q Results at Previous Quarter Level Sales m€ 350 ‒ Result was weakened by the extensive maintenance shutdown at Kemi 281 300 274 289 279 293 289 289 250 ‒ FBB delivery volumes increased slightly in 3Q 2013 200 150 ‒ Kemi kraftliner deliveries decreased slightly but remained at a good level 100 50 0 ‒ Metsä Board has announced a 70 €/ton FBB price increase in Europe ‒ Contract negotiations for 2014 ongoing 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 EBIT, excl. non-recurring items m€ 40 ‒ No material kraftliner price changes in sight 32 30 ‒ Deliveries in 4Q 2013 expected to decrease slightly due to seasonality 28 27 24 27 25 24 20 10 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4 Metsä Board
  • 5. Paper and Pulp’s Results Weakened Due to the Extensive Maintenance Shutdown at Husum Sales m€ ‒ Husum shutdown was completed as planned 300 245 250 ‒ WFU delivery volumes and prices decreased slightly from 2Q 2013 229 223 210 216 198 199 200 150 ‒ Coated paper and market pulp delivery volumes increased and prices were stable 100 50 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 ‒ WFU deliveries expected to increase slightly in 4Q 2013. Coated paper and market pulp deliveries expected to remain stable in 4Q 2013 EBIT, excl non-recurring items m€ 10 5 5 ‒ No paper price changes in sight. Long fibre pulp price in USD expected to increase and short fibre pulp price to decrease slightly in 4Q 2013 0 0 -2 -5 ‒ Production of kraftliners at Husum increasing as planned ‒ Target for 2014 min. 80,000 tonnes 4 2 -2 -10 -15 -12 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q12 5 Metsä Board
  • 6. Good Financial Situation Continues ‒ Gross debt EUR 748 million, cash and interest bearing receivables EUR 126 million and net debt EUR 622 million ‒ EUR 100 million RCF fully available Net Debt, m€ 4000 3693 3500 3000 2403 ‒ Metsä Board divested its 51% holding in Metsä Group Treasury to Metsäliitto Cooperative 2500 2000 ‒ Net gearing 75%, equity ratio 38.4% at the end of 3Q 2013 1500 ‒ Average interest rate 5.5% at the end of 3Q 2013 1000 ‒ S&P upgraded Metsä Board’s credit rating from B- to B 622 500 6 Metsä Board 3Q13 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0
  • 7. Short-Term Profitability Outlook ‒ Metsä Board’s operating result, excluding non-recurring items, is in the last quarter of 2013 expected to improve from the third quarter of 2013 7 Metsä Board
  • 8. Continued Growth in the Folding Boxboard and Linerboard Businesses ‒ Metsä Board’s paperboard deliveries have increased close to 10% from last year despite the slow growth in the consumer product markets due to weak macroeconomic situation ‒ Target is to further grow both FBB and kraftliner businesses Paperboard deliveries, 1000 tonnes 350 250 ‒ Continued growth in Europe and increased efforts in Asia and Folding boxboard 300 94 93 Global demand growth 3–4 % annually ‒ Kraftliner 93 95 85 85 200 80 especially in North America 150 ‒ Metsä Board is committed to increase capacity to support its 100 185 185 192 197 176 189 169 1Q12 customers’ growth both in FBB and kraftliner businesses 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 50 0 8 Metsä Board
  • 9. Management Structure Is Renewed to Accelerate Profitable Growth ‒ Metsä Board operates from 2014 onwards through two business areas: ‒ Cartonboard (Kyro, Simpele, Tako, Äänekoski, Joutseno and Gohrsmühle mills) ‒ Linerboard and Paper (Husum, Kemi and Kaskinen mills) ‒ Cartonboard product and service portfolio improvement continues and the sales force is strengthened to accelerate growth at all current main market areas and North America ‒ Kemi and Husum mills belong to the same business area and their synergies will be fully utilized ‒ Growth in both current main markets Europe and North America ‒ Reduction of the share of Husum mill’s paper production ‒ Both the of Head of Cartonboard business area Ari Kiviranta (D.Sc. in Tech.) and the Head of Linerboard and Paper business area Seppo Puotinen (Lic.Sc. in Tech.) have extensive experience in paperboard business 9 Metsä Board
  • 10. Organisation Chart, as of 1 January 2014 CEO Mikko Helander* CFO HR Susanna Tainio Markus Holm* Business Services and Development Linerboard and Paper Cartonboard Purchasing Sari Pajari* Seppo Puotinen* Ari Kiviranta* Jani Suomalainen* * Member of Corporate Management Board 10 Metsä Board
  • 11. Key Focus Areas in 2014 1. Fully benefit the current folding boxboard capacity and plan next growth steps 2. Clear increase of kraftliner production and gradual reduction of the share of paper production in Husum 3. Secure healthy Folding boxboard and kraftliner price levels 4. Develop and launch new folding boxboard and kraftliner products 5. Continuous improvements to achieve Super Productivity 11 Metsä Board
  • 12. Appendix Metsä Board
  • 13. Folding Boxboard Market Price in Europe 2004 – 3Q 2013 EUR / tonne 1100 1000 900 800 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Pöyry Management Consulting 13 Metsä Board 2013
  • 14. Paper and Pulp Market Price in Europe 1998 – 3Q 2013 EUR / tonne EUR/USD 1,7 1100 1,6 1000 1,5 900 1,4 800 1,3 700 1,2 1,1 600 1 500 0,9 400 2000 0,8 2001 2002 2003 2004 Coated magazine paper LWC (60g) Softwood pulp NBSK 2005 2006 2007 2008 2009 2010 Uncoated fine paper (B-copy, 80 g) Coated fine paper (100 g) 14 Metsä Board 2011 2012 2013 EUR/USD Source: Foex, Reuters
  • 15. Liquidity m€ Liquid funds Committed credit facilities 600 500 400 300 200 100 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13* *Divestment of 51 % in Metsä Group Treasury reduced the consolidated amount of cash at Metsä Board’s balance sheet 15 Metsä Board
  • 16. Balance Sheet Ratios % Equity Ratio % 38,7 40 120 35 30 Net gearing 31,1 31,2 33,2 33,3 103 32,4 100 27,9 73 80 25 20 70 73 74 75 69 60 15 40 10 20 5 0 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13* 1Q12 *Divestment of 51 % in Metsä Group Treasury improved equity ratio by about 5 percentage points 16 Metsä Board 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
  • 17. Business Area Performance – Comparison to Previous Quarter Sales, m€ Operating result, excluding non-recurring items, m€ 350 300 40 289 289 30 250 198 200 25 24 199 20 150 10 100 4 50 0 Paperboard 0 Paperboard Paper and Pulp ‐10 2Q 2013 17 Metsä Board 3Q 2013 ‐2 Paper and Pulp
  • 18. Business Area Performance – Comparison to Previous Year Sales, m€ Operating result, excluding non-recurring items, m€ 100 1000 843 871 800 80 697 613 80 81 60 600 40 400 20 200 0 0 Paperboard Paperboard Paper and Pulp ‐20 1-3Q 2012 18 Metsä Board 1-3Q 2013 ‐6 0 Paper and Pulp
  • 19. Ownership Structure 30.9.2013 Shares Votes 19 Metsä Board Source: Euroland

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