INVESTOR PRESENTATION Q Lennart Eberleh

Transcription

1 INVESTOR PRESENTATION Q Lennart Eberleh 1

2 CONTENTS Rottneros in brief: Sustainable growth in selected niches The market Q4 and full year 2017 The way forward 2

3 SUSTAINABLE GROWTH IN SELECTED NICHES 3

4 THE ROTTNEROS GROUP BRIEF FACTS Vallvik Mill, HQ for The Group Rottneros Mill Rottneros Packaging Customised market pulp Global market Rottneros Baltic SIA Production 2017: tonnes Rottneros Mill: Mechanical pulp, CTMP and groundwood pulp Vallvik Mill: Long-fibre chemical sulphate pulp, bleached and unbleached Rottneros Packaging: Fibre trays Rottneros Baltic: Wood supply NASDAQ Stockholm since 1987 Financially strong SEKm SEKm 4

5 THE ROTTNEROS GROUP ROTTNEROS CUSTOMER SEGMENTS SHARE OF TOTAL DELIVERIES 5

6 THE ROTTNEROS GROUP THE NICHE AREAS ARE GROWING 6

7 THE MARKET 7

8 MARKET FAVORABLE WINDS Good demand for pulp globally but large geographic differences Asia drives demand, Europe stable Producer inventories 34 days at the end of Q4 Balanced inventories for both softwood and hardwood Low customer inventories Strong price development since summer with higher prices for all grades Continued price increases after the turn of the year 8

9 MARKET SLIGHTLY INCREASED PAPER PRODUCTION IN EUROPE - PACKAGING STRONG 0.6% EUROPE, PRODUCTION OF PAPER AND BOARD, GROWTH JANUARY-NOVEMBER 2017 EUROPEAN PAPER AND BOARD PRODUCTION 0.4% 0.2% 0.0% 1,3% 1,0% 4,1% 2,3% Graphic Paper Tissue -0.2% -0.4% -2,6% Packaging Other -0.6% Total Graphic paper Tissue Packaging Other Source: CEPI Source: CEPI 9

10 MARKET CHEMICAL PULP: GOOD GROWTH GLOBALLY ASIA A DRIVER, EUROPE FLAT WORLD CHEMICAL MARKET PULP SHIPMENTS, GROWTH, 2017 WORLD CHEMICAL MARKET PULP SHIPMENTS % 0.9% 0.7% 0.5% 0.3% 0.1% -0.1% -0.3% 3,2% -0,2% 5,9% 7,3% 2,5% -0,7% Europe China Other Asia North America Latin America Other Total Europe China Other Asia North America Latin America Source: PPPC Source: PPPC 10

11 ton USD/ton MARKET PULP INVENTORIES SOME 4.9 M TONS ( 34 DAYS) BOTH SOFTWOOD AND HARDWOOD BALANCED PRODUCER INVENTORY AND PULP PRICE PRODUCER INVENTORY, DAYS & PULP PRICE Total World NBSK Price Western Europe Days NBSK Price, USD Source: FOEX & PPPC Source: FOEX & PPPC 11

12 USD/ton SEK/ton USD/ton MARKET PRICE INCREASE IN Q4 PRICE DEVELOPMENT IN EUROPE NBSK, WESTERN EUROPE: PRICE IN USD & SEK NBSK BHKP BCTMP-HW NBSK, SEK NBSK, USD Source: FOEX, Rottneros Source: FOEX, Riksbanken 12

13 Q4 AND FULL YEAR

14 Q4 AND FULL YEAR 2017 VOLUME GROWTH CONTINUES, ANNUAL RECORD Production volume increased by 8% to 94.4 kton in Q4. For the full year 2017, it increased by 7% to kton. Net sales increased by 12% to 496 MSEK in Q4. For the full year 2017, sales increased by 11% to MSEK 1,912. EBITDA increased to 21 MSEK in Q4 (1). For the full year, EBITDA increased to MSEK 247 (221). Increased wood prices impacted the results by about 5 million sequentially. We map efficiency opportunities with a clear focus on increased profitability. A new organization was presented during the quarter, including a group-wide sales organization. Continued strong market situation with price increases at the beginning of Q1. The Board decided on investments totalling some 120 million during the quarter. The Board proposes an ordinary dividend of 30 öre per share and an extra dividend of 7 öre. 14

15 Q4 AND FULL YEAR 2017 THE QUARTER AND THE FULL YEAR IN NUMBERS The quarter and year in figures Oct-Dec 2017 Oct-Dec 2016 change, % Jan-Dec 2017 Jan-Dec 2016 change, % Net turnover, SEK m ,912 1, Operating profit/loss, SEK m Profit/loss after financial items, SEK m Net income/loss, SEK m Earnings per share, SEK Cash flow from operating activities, SEK m Return on capital employed (rolling 12 months), % Production, thousand tonnes Deliveries, thousand tonnes

16 Q4 AND FULL YEAR 2017 EFFFICIENT AND SOLID BALANCE SHEET MSEK 250 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Cash flow from operating activities, SEKm Net cash, SEKm Equity /assets ratio, % 0 16

17 THE WAY FORWARD 17

18 THE WAY FORWARD GROWTH IN SELECTED NICHES We focus on costs and how we can be more efficient. In , investment decisions totaling SEKm 705 have been taken. Of these, SEK 575 million was completed , the remaining 130 SEKm will be carried out during Rottneros Packaging, high-quality fiber trays, 90-95% fossil-free, mainly for food, a new development area since in A new plant in Sunne will be ready in autumn In December the Board decided to implement: CTMP stage 2, + 18,000 tonnes from 2019 A weak gas system for Vallvik, operational Q

19 Q&A