WE HAVE ONLY SEEN THE BEGINNING OF WHAT FIBER-BASED MATERIALS AND SOLUTIONS CAN BE USED FOR

Transcription

1 WE HAVE ONLY SEEN THE BEGINNING OF WHAT FIBER-BASED MATERIALS AND SOLUTIONS CAN BE USED FOR JAN ÅSTRÖM, PRESIDENT AND CEO PPT HÖSTSEMINARIUM STOCKHOLM, NOVEMBER 28, 2017

2 We are one from April 1 st, ,000 employees 41 production and converting sites in 14 countries Combined net sales approx. EUR 2.15 billion ADVANTAGES FOR ALL STAKEHOLDERS Leading global positions in several segments Global reach Expanded product and service offerings Improved service, design and R&D capabilities Enhanced career opportunities Strong financial position Benefits of scale in the capital markets 2

3 A global leader in fiber-based materials and solutions 3

4 A long and exciting journey 1862 Munksjö founded in Jönköping 2002 Jefferson Smurfit acquires Munksjö 2004 EQT acquires Munksjö 2009 Refinancing MEUR Net sales AC Sep Acquisition of Arjowiggins MEUR 240 EBITDA 2013 Merger of Munksjö and Ahlstrom s L&P Merger of Munksjö and Ahlstrom AC Sep 2017

5 The focus continues to be niche markets with higher margins From only specialty paper TOTAL PAPER MARKET: 400 MT 7% 33% Former Munksjö presence Paper Specialty paper

6 to fiber-based materials Natural fibers (90%) Synthetic fibers (10%) Glass fiber PET Pellets Micro glass Tencel/viscose Other Pulp Abaca Cotton Other (jute, sisal)

7 turned into solutions for various end-customer sectors Ahlstrom-Munksjö exposure by end-customer sector General industry Health care & Life science Energy Food & Beverage Construction Automotive Non-food consumer goods Furniture Source: Internal business managers estimates

8 Our portfolio of advanced materials and solutions DECOR FILTRATION AND PERFORMANCE INDUSTRIAL SOLUTIONS SPECIALTIES BUSINESS AREA 17% 28% 29% 26% SHARE OF NET SALES, % PRODUCTS Decor paper Thin print papers Oil filters Fuel filters Air intake filters Gas turbine filters Industrial filters Glassfiber tissue for flooring and reinforcement for wind mill blades Wallcovers Specialty nonwovens Flushable wipes Abrasive backings Electrotechnical insulation Release liners Thin papers Specialty pulp Balancing foils Fine art and printing papers Food and beverage packaging Packaging papers Graphical papers Medical fabrics Metallized labels Tape Laboratory filters and life science diagnostics Water purification Printed and coated products 8

9 Some end-products

10 A true global presence Share of net sales Americas 24% Europe 60% Asia 16% Manufacturing sites Sales offices 10

11 Strategic direction

12 Strategic direction Profitable growth in selected niches of the fiber-based solutions market with a positive growth outlook Deliver clear customer value-add through a high quality offering, supported by advanced technology, deep know-how and tailored services Efficiently utilizing the flexible and agile production and service platform, to develop customer-specific solutions in a sustainable manner Using a business unit operating model that locally promotes accountability, enables flexibility and is built on a common global culture 12

13 Strategic direction: Profitable growth Strong and well established platform for profitable growth Organic growth as well as acquisitions Optimization of price and product mix A global leader with leading positions in a broad range of segments and niches An ambition to move up in the value chain through new and innovative offerings Fast-moving consumer goods Life science diagnostics Examples of markets where we have leading positions: Engine filtration Release liners in Europe Abrasive backings Electrotechnical insulation Decor papers Tea bag materials Vegetable parchment papers Masking tape Fine art papers 13

14 Strategic direction: Customer value-add Solutions provider - expanding the role of sustainable fiber-based solutions Broad product offering based on renewable fibers (90%) - serving a broad range of end-market segments Strong design capability as well as product and service innovation capacity driven by a strong customer focus 14

15 Strategic direction: Flexibility and agility Excellence - in how we do and what we deliver High operational and cost efficiency Flexible production capabilities Energy and raw material efficient production processes, while minimizing environmental effects 15

16 Strategic direction: Accountability Decentralized organizational structure with P&L responsibility at business unit level Global reach enabling a diversified revenue and earnings base Experienced management team and lean group functions 16

17 Financial targets EBITDA margin above 14% over a business cycle 13.0% 1 Net gearing below 100% 39.3%² Dividend A stable and annually increasing dividend, to be paid semi-annually. ¹ PF 2017Q3 LTM ² PF 2017Q3 The pro forma information is presented for illustrative purposes only, and has been compiled assuming that the merger had been completed on January 1, In addition, the unaudited pro forma information reflects the impacts of the refinancing transactions that 17 took place or have been announced in connection with the completion of the merger

18 Our fiber contributes to a sustainable everyday life Most of our fibers a renewable We are striving for responsible sourcing Ahlstrom-Munksjö products deliver resource efficiency and high performance in our customers applications and contribute to a sustainable function Recognition for our CSR engagement, which places the company among the top 1 percent of all suppliers evaluated by the platform. Unique innovation capacity in research and development centres, and production units Commitment to the United Nations Global Compact's ten principles for ethical business practices signed in November

19 Developing Ahlstrom-Munksjö s sustainability strategy Sustainability Framework Priority Areas of Focus Metrics & Targets

20 Summary of Q3/17 and update on integration

21 Key takeaways from Q3/2017 Organic net sales growth at 5.7% Excellent organic growth and stable profitability Demand continued to be strong for most products across many regions Performance driven by excellent results in Filtration & Performance, and Industrial Solutions business areas Headwind from a sharp increase in raw materials, particularly in Decor where price increases took effect towards the end of the quarter Synergy benefits are clearly visible Synergy benefits now estimated to be above EUR 40 million (previously EUR 35 million) Currently achieved annual run rate of about EUR 17 million, impact on Q3/2017 result about EUR 3.5 million Looking forward Further pricing initiatives to mitigate cost inflation, particularly in Decor Results from the process to address the challenges in coated one-sided business expected to be gradually visible during

22 Group: EBITDA margin maintained at a good level in Q3/2017 MEUR Net Sales Net sales EUR million in Q3/17 (EUR million) Net sales +3.5% Comparable net sales +5.7% at constant currency Higher volumes, improved product mix and selling prices 0 MEUR Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Comparable EBITDA and margin Target : EBITDA margin above 14% over a business cycle 13.8% 14.0% 13.4% 13.4% 13.0% 11.2% 11.6% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q % 14% 12% 10% 8% 6% 4% 2% 0% Comparable EBITDA EUR 70.4 million in Q3/17 (EUR 70.2 million) Margin at 13.0% (13.4%) Supported by higher volumes, selling prices and lower SG&A costs Negative impact of EUR 22 million from higher raw material costs Mainly related to pulp and titanium dioxide Comparison figure impacted by EUR 4 million related to annual maintenance stop at Aspa

23 THANK YOU!