Metsä Board CMD 2014 CFO Markus Holm's presentation

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CMD 2014 CFO Markus Holm's presentation:
Steadily Improving
Financial Performance

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Metsä Board CMD 2014 CFO Markus Holm's presentation

  1. 1. Metsä Board Steadily Improving Financial Performance Markus Holm, CFO CMD 22.5.2014
  2. 2. Metsä Board 2 Content 1. Financial Performance 2. Cost Inflation 3. Financing
  3. 3. Metsä Board Financial Performance
  4. 4. Metsä Board Metsä Board’s Financial Situation Has Improved Materially in Recent Years 4 EBIT % of sales excl. non-recuring items,ROCE %, excl. non-recurring items 7,2 -6,2 6,6 2,4 3,6 5,2 -8 -6 -4 -2 0 2 4 6 8 10 2009 2010 2011 2012 2013 1Q14 6,4 4,8 3,4 7,6 -5,6 9,9 -6 -4 -2 0 2 4 6 8 10 12 2009 2010 2011 2012 2013 1Q14 Target min. 10 %
  5. 5. Metsä Board Two Strong BusinessAreas with Good Growth Outlook 1Q 20141Q 2013 5 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€
  6. 6. Metsä Board Main Actions to Exceed ROCE 10 % 6 ‒ Increase of folding boxboard and linerboard sales and secure healthy price levels ‒ Gradual reduction of unprofitable paper production in Husum ‒ Profitability improvement of Gohrsmühle mill ‒ Continuous improvement of productivity and cost competitiveness ‒ Efficient supply chain and working capital management
  7. 7. Metsä Board Despite Weak Macroeconomy Metsä Board’s EBITDAHas Steadily Improved Since 2011 7 EBITDA excl. non-recurring items, m€ 208 186 179 305 44 0 60 120 180 240 300 2009 2010 2011 2012 2013
  8. 8. Metsä Board Consistent Strenghtening of Balance Sheet 8 777 827 783 625 597 593 17,7 2,7 4,4 3,4 2,9 2,8 0 100 200 300 400 500 600 700 800 900 2009 2010 2011 2012 2013 1Q 14 0 2 4 6 8 10 12 14 16 18 20 Net Debt and Net Debt/EBITDA* Net Gearing, % 69 84 83 106 72 70 0 20 40 60 80 100 120 2009 2010 2011 2012 2013 1Q14 Target max. 100 % Net debt, m€ Net debt/EBITDA *Excluding non-recurring items
  9. 9. Metsä Board 40 6766 95 7372 0 20 40 60 80 100 2009 2010 2011 2012 2013 2014 m€ Capex Reducing to about 40 m€ in 2014 Indicative level for 2014 9
  10. 10. Metsä Board Profitability of Metsä Board’s Core Business is Best in its Field Operating result excluding non-recurring items, % of sales 10
  11. 11. Metsä Board Metsä Board Remains Committed to a Competitive Dividend 11 0,06 0,09 0 0,02 0,04 0,06 0,08 0,1 0,12 2012 2013 Dividend per share € Payout ratio 47% Payout ratio excl. nri 53% Payout ratio 12% Payout ratio excl. nri 46% - Metsä Board's policy is to pay a dividend of at least 1/3 of EPS on average over the business cycle - Dividend payments were resumed in Spring 2013 after finalization of the heavy restructuring of the company
  12. 12. Metsä Board Cost Inflation
  13. 13. Metsä Board Target is to Cover the Normal 1-2 %/a Cost Inflation by Own Continuous Improvement Measures 13 Cost item Share of total costs Cost change in 2014 vs. 2013 Wood 22 % -2 % Logistics 14 % +2 % Chemicals, pigments and fillers 15 % 0 % Energy 14 % -4 % Fixed costs 32 % +1 % Fixed and variable costs total -1 % No cost inflation expected in 2014
  14. 14. Metsä Board Financing
  15. 15. Metsä Board Run Rate of Quarterly Financing Costs Below 10 m€ Thanks to Successful Refinancing ‒ Refinancing consisted of: ‒ 225 m€ unsecured bond issue, over 10 times oversubscribed, 4,000 per cent coupon ‒ 250 m€ unsecured term loan and RCF provided by Nordic banks ‒ Bond, term loan and RCF to rank pari passu ‒ Debt structure normalized on an unsecured basis ‒ Diversified long term funding sources ‒ Maturity profile lengthened 15 Average interest rate of external loans, % 0 5 10 15 20 25 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14Interest costs excl. nris, m€ 0 2 4 6 8 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 6,7 4,3 19 9
  16. 16. Metsä Board Diversified Funding Sources and Healthy Liquidity 16 Long-Term Interest Bearing Liabilities 31.3. 2014 31 % 8 % 3 % 28 % 30 % Bonds Pension premium loans Loans from financial institutions Finance leases Other interest bearing liabilities Solid liquidity position with 100m€ RCF fully undrawn and 121 m€ of cash and cash equivalent at the end of 1Q 2014. Additionally, 150 m€ reserve in form of Metsä Group's internal undrawn short-term credit facility
  17. 17. Metsä Board Well Balanced Maturity Schedule 44 94 34 83 181 253 24 4 100 14 0 50 100 150 200 250 300 2014 2015 2016 2017 2018 2019 2020 >2 020 Long-term interest bearing liabilities Committed undrawn credit facilities m€ 17 Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 31.3.2014
  18. 18. Metsä Board Positive Rating Development 18 Moody’s Standard & Poor’s 2005 2006 2007 2008 2009 2010 2011 2012 2013 BB+ | Ba1 BB | Ba2 BB- | Ba3 B+ | B1 B | B2 B- | B3 CCC+ | Caa1 CCC | Caa2 Stable Positive
  19. 19. Metsä Board Thank you! QA 19

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