Presentation. Interim Report Jan-Sep Magnus Hall. President & CEO. 4 November 2009

Transcription

1 Presentation Interim Report Jan-Sep 29 Magnus Hall President & CEO 4 November 29 1

2 The Group Holmen Paper Newsprint & magazine paper Share of sales profit capital Iggesund Paperboard Paperboard Holmen Timber Sawn timber Holmen Skog Forests & wood Holmen Energi Electric power & energy 2 Sales SEK 19.3 bn Operating profit SEK 1.4 bn Capital employed SEK 23.1 bn Employees 4 6

3 The Group Financial performance Operating profit Profitability 2 5 MSEK 15 % 2 Return on capital employed Excl. non-recurring items Return on Capital Employed Return on equity Return on Equity I-III/9 Excl. non-recurring items 3

4 Operating profit Excl. non-recurring items MSEK 7 Jan-Sep 9: MSEK (Jan-Sep 8: 1 128) 6 + Higher prices for newsprint & 5 paperboard Extensive production curtailments 4 due to weak demand Q3: MSEK 442 (Q2: 372) + Seasonally lower costs Weak dollar 4

5 Holmen Paper Operating profit, excl. non-recurring items MSEK Jan-Sep 9: MSEK 374 (26) + Higher prices Production curtailments Market mix + Lower fibre costs Increased cost for chemicals and energy 5 Q3: MSEK 17 (Q2: 15) Market mix Weaker dollar + Seasonally lower personnel and maintenance costs 5

6 Standard newsprint Deliveries to Europe kton (year) kton (month) Deliveries To Europe YTD - 13 % 8/7-3 % From European producers YTD -11 % 8/7-1 % Full year Moving Source: Cepiprint, Holmen Paper 6

7 Standard newsprint Breakdown of deliveries to Europe Deliveries kton Full year 28 Jan - Sep 29/8 Full year 28/7 Germany % 2% Great Britain % -5% Italy % % France % 3% Spain % -13% Nordic % -6% East Europe % -1% Total Europe % -3% 7 Source: Cepiprint

8 Newsprint and magazine paper Deliveries to Europe Jan - Sep 29/8 Full year 28/7 Std newsprint -13% -3% MF Magazine -21% -1% Other uncoated -12% -9% Total newsprint related -13% -3% SC Magazine -9% 6% Coated -24% -4% Total -16% -2% 8 Source: Cepiprint, Holmen Paper

9 Price development Newsprint, SC and LWC (Germany) EUR/ton Newsprint 45 g SC Gravure 56 g LWC Offset 6 g Source: RISI

10 Iggesund Paperboard Operating profit MSEK Jan-Sep 9: MSEK 279 (34) + Higher prices + Weak SEK and GBP Production curtailments High production costs 1 5 Q3: MSEK 128 (Q2: 77) + Lower variable costs + Seasonally lower personnel costs + Maintenance stop in Q2 Closure of machine 1

11 Paperboard (SBB and FBB) Deliveries to Europe (excl. imports) kton (year) kton (month) Deliveries To Europe YTD -12 % 8/7-2 % From European producers YTD -14 % 8/7-3 % 1 5 Full year Moving Source: CEPI, Iggesund Paperboard

12 Paperboard (SBB and FBB) Deliveries from European producers Deliveries kton Full year 28 Jan - Sep 29/8 Full year 28/7 Europe % -2% Non Europe % -8% Total % -3% Source: CEPI, Iggesund Paperboard 12

13 Holmen Timber Operating profit, excl. non-recurring item MSEK Jan-Sep 9: MSEK 2 (2) Lower prices Q3: MSEK 13 (Q2: 5) + Higher prices Higher raw material costs

14 Price development Redwood and whitewood Price Index Redwood Whitewood Source: Export Price Index for Sawn Softwood, Skogsindustrierna 14

15 Holmen Skog Operating profit, excl. non-recurring item MSEK 25 Jan-Sep 9: MSEK 425 (453) Effects of lower wood prices 2 15 Q3: MSEK 147 (Q2: 144) + Seasonally lower silviculture costs

16 Holmen Energi Operating profit MSEK Jan-Sep 9: MSEK 276 (217) + Higher prices Lower production (7% below a normal year) Q3: MSEK 72 (Q2: 59) + Higher production

17 Financial summary III II I-III I-III Full year Net turnover, MSEK Operating profit, MSEK Operating profit excl items affecting comparability, MSEK Profit for the period, MSEK Earnings per share, after dilution, SEK Operating margin * 1% 8% 9% 8% 7% Return on capital employed * 8% 7% 7% 7% 6% Return on equity 7% 7% 7% 3% 4% Debt/equity ratio Cash-flow before capex, MSEK Capital expenditure, MSEK * Excl. items affecting comparability 17

18 Changes at Workington and Braviken Workington Closing of board machine 1 at year-end Annual capacity 7 kton FBB Upgrading of BM 2 Workington New mill capacity 2 kton (25 kton) Staff cut of up to 1 employees Braviken Review of the organisation and work methods Staff cut of 1 employees Braviken 18

19 The Holmen Agenda Capacity management. Closing BM 1 in Workington. Cost saving activities for raw materials and operations Price increases for FBB The new sawmill in Braviken Evaluation of opportunities in wind power investments 19

20 2 Supplementary information

21 The share I-III Profit per share, SEK Dividend per share, SEK - ordinary extra Equity per share, SEK Return on equity 8% 8% 9% 9% 4% 7% Number of shares, million Market capitalisation, SEK bn * * As per November 2, 29 21

22 Income statement MSEK III II I-III I-III Full year Net turnover Operating costs Depreciation according to plan Interest in earnings of ass. companies Items affecting comparability Operating profit Operating profit excl. items affecting comparability Net financial items Profit before tax Tax Profit for the period Earnings per share, SEK

23 Operating profit MSEK III II I-III I-III Full year Holmen Paper Iggesund Paperboard Holmen Timber Holmen Skog Holmen Energi Group central costs and other Items affecting comparability Group Excl. items affecting comparability

24 Cash flow Effect on net debt MSEK III II I-III I-III Full year Profit before tax Adjustments Paid tax Change in working capital Cash flow from current operations Acquisition of fixed assets * Sale of fixed assets Cash flow from investment activities Cash flow after investments Paid dividend Buy-back of own shares Cash flow after dividend * Incl. change in long-term financial receivables 24

25 Balance sheet MSEK Fixed assets Deferred tax receivable Current assets Financial receivables Liquid funds Equity Deferred tax liability Financial liabilities Operating liabilities Financial net debt Debt/equity ratio Equity ratio 5% 45% 45%

26 Holmen Quarterly development, Excl. non-recurring items Net turnover, MSEK Operating capital, SEK bn ,2 2,3 2,5 2,2 1,5 Working capital,8 1,6 2, ,9 25,8 25,9 25,9 26,2 25,9 25,9 25, Fixed assets IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 6 Operating profit, MSEK 15 Profitability, % Operating margin IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 5 Return on operating capital IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 26

27 Holmen Paper Quarterly development, Excl. non-recurring items Net turnover, MSEK Operating capital, SEK bn Working capital 1,9 1,7 1,9 1,6 1,8 1,8 1,7 1, ,1 8,2 8,2 Fixed assets 8,2 8,5 8,2 8, 7,6 IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 3 Operating profit, MSEK 1 Profitability, % 2 Operating margin Return on operating capital IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 27

28 Iggesund Paperboard Quarterly development Net turnover, MSEK Operating capital, SEK bn Working capital 1, 1, 1,1 1,1 1,2 1,2 1,2 1, ,2 3,1 3,1 3,1 3,1 3,1 3,1 3, Fixed assets IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 Operating profit, MSEK Profitability, % Return on operating capital Operating margin 16 IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 28

29 Operating profit Quarterly development, Excl. non-recurring items Holmen Timber, MSEK Holmen Energi, MSEK IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/ IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9 25 Holmen Skog, MSEK IV/7 I/8 II/8 III/8 IV/8 I/9 II/9 III/9

30 Financing Maturity structure as of Financial liabilities 6 5 Credit facilities

31 Earnings sensitivity (28), excl Wargön Estimated annual effect on the operating result from 1% change in (excl fixed price agreements or hedging contracts): Income MSEK Costs MSEK Products Price Volume Variable Printing paper 94 3 Wood 23 (net 11)* Recovered paper 11 Paperboard Market pulp 2 Electricity 16 (net 12)* Sawn timber 5 2 Other energy 5 Chemicals 14 Own raw materials Distribution costs 15 Wood company forests 12 8 Other variable costs 5 Company electricity 4 4 Fixed EUR/SEK 56 Personnel 27 USD/SEK 1 Other fixed costs 14 GBP/SEK 1 31 * Net means that wood from company forests and own electricity production is excluded

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