Metsä Board. Interim report 1 3/2017 Presentation material

Transcription

1 Metsä Board Interim report 1 3/217 Presentation material

2 Q1 217 in summary Good demand for high-quality paperboards continued Stable or rising market price levels Metsä Board s paperboard and market pulp deliveries grew from the previous quarter All Finnish mills performed well, good momentum in linerboard business No major maintenance shutdowns Husum still had a negative impact on profitability 2 Q1 217 Interim report

3 Total paperboard deliveries grew All-time high monthly level in March 217 Folding boxboard White fresh fibre linerboard 42 1, tonnes Growth in total paperboard deliveries: +1% Q1/17 vs. Q4/16 +16% Q1/17 vs. Q1/16 +12% FY16 vs. FY15 6 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Q Q1 217 Interim report FY 215: 1.4 mill. tonnes FY 216: 1.6 mill. tonnes

4 Sales increased and profitability improved Sales, EUR million Comparable operating result, EUR million and % EUR million EUR million ,2 % 9, % 11, % 7,6 % 8, % 8,5 % 7,7 % 7,8 % 1,1 % 12% 1% 8% 6% 2 2 4% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 2% % FY 215: EUR 2,8 million FY 216: EUR 1,72 million FY 215: EUR 18 million FY 216: EUR 137 million 4 Q1 217 Interim report

5 Impact on Q1 217 operating result vs. Q4 216 and Q Operating result, EUR million Q4 216 vs. Q EBIT-% 7.8 EBIT-% 1.2 Q4 216 Q Operating result, EUR million Q1 216 vs. Q EBIT-% 8. EBIT-% 1.2 Q1 216 Q Growing delivery volumes in paperboard and market pulp, no major maintenance shutdowns, increased price levels in coated WTKL in the US and in market pulp Q1 217 Interim report - Geographic sales mix in Husum s FBB and product mix in Husum s white linerboards, increased latex price + Positive development at Finnish mills, discontinued paper operations, positive impact from FX rates after hedges - Increased latex price WTKL = white-top kraftliner FBB = folding boxboard

6 Higher operating result improved ROCE-% 18% 16% 14% 12% Target >12% from 217 onwards 1% 8% 6% 4% 2% % Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Comparable ROCE, % 6 Q1 217 Interim report

7 Clearly lower capex in 217 EUR million Investments in January March were EUR 19 million (Q1/16: EUR 54 million) Estimated capex in 217 is EUR 65 7 million E Maintenance capex Growth capex Depreciation 7 Q1 217 Interim report Main growth in capexes in : Husum investment programme, extrusion coating line and equity investment in Metsä Fibre s bioproduct mill

8 Cash flows clearly positive Q1 217 cash flow from operations impacted by changes in working capital, advance payments of employment pension contributions, and dividend from Metsä Fibre EUR million Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 8 Q1 217 Interim report Cash flow from operations, quarterly Cash flow from operations, rolling 12 months Free cash flow, quarterly Free cash flow, rolling 12 months

9 Balance sheet remained stable 6 4 Net gearing, % 32% 44% 42% 54% Financial target in net gearing is a maximum of 7% 49% 44% 44%,6,5,4,3 6 4 Interest-bearing net debt / comparable EBITDA 1,2 2. 1,5 2,1 2,1 2. 1, ,2 2 1, /16 6/16 9/16 12/16 3/ /16 6/16 9/16 12/16 3/17 Interest-bearing net debt, EUR million Net gearing, % Interest-bearing net debt, EUR million Interest-bearing net debt / EBITDA (rolling 12-month) 9 Q1 217 Interim report

10 High potential to improve profitability in Husum Rising capacity utilisation rate in the FBB production line (now 7%) will decrease production costs per tonne produced FBB production line fully utilised by the end of 218 Total paperboard deliveries to Americas will increase PE-coated paperboards generate sales in a new customer segment The volumes of coated linerboards will grow 1 Q1 217 Interim report

11 New state-of-the-art extrusion coating line started up at Husum EUR 38 million investment, capacity of 1, t/a PE-coated *) paperboard is an alternative to plastics Targeted mostly for food packaging and food service applications In 216, Metsä Board introduced PE-coated paperboards Supports growth in a new customer segment 11 Metsä Board continues development work on other innovative barrier solutions including the use of biobased materials Q1 217 Interim report *) PE=polyethylene, the most common barrier material used against moisture and grease

12 Near-term outlook Good demand for fresh fibre paperboards, pulp market expected to remain healthy Price levels in FBB are expected to be stable, several linerboard producers have announced price increases Metsä Board s paperboard delivery volumes are expected to increase Several maintenance shutdowns at the Finnish mills in Q2, rising latex price increasing production costs 12 Q1 217 Interim report

13 Profit guidance Metsä Board's comparable operating result for the second quarter of 217 is expected to remain roughly on the same level as in the first quarter of Q1 217 Interim report

14 Summary Good overall performance in the first quarter of 217 High potential to improve profitability in Husum Extrusion coating line in Husum offers improved availability and competitive products, especially in the food and food service segments In 217, focus is on sales of new paperboard capacity 14 Q1 217 Interim report

15 Metsä Board s 217 Metsä Metsä Capital Board s Board s Markets Day Capital Capital Markets Day 1 June 217 Markets in Helsinki Day 1 June 217 in Helsinki 1 June 217 in Helsinki More info: More info: More info:

16 Appendix

17 Key financials Q1/17 Q4/16 Change Q1/17 vs. Q4/16 Q1/16 Change Q1/17 vs. Q1/ Sales EUR million % % 1,72 EBITDA, comparable EUR million % % 231 Operating result, comparable EUR million % % 138 % of sales % Result before taxes, comparable EUR million % 3 +33% 17 Earnings per share EUR,1,5 +1%.7 +43%.26 ROCE, comparable % Capex EUR million % 54-65% 162 Cash flow from operations EUR million % IB Net debt, at the end of period EUR million % % Q1 217 Interim report

18 Comparable EBITDA % 16% 14% 14% 14% 13% 13% 13% 13% 12% 12% 11% Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 EBITDA, EUR million EBITDA, % 18% 16% 14% 12% 1% 8% 6% 4% 2% % 18 Q1 217 Interim report

19 FX exposure and sensitivities Impact of FX rate changes after hedges in Q1 217: flat in Q1/17 vs. Q4/16, EUR 5 million positive in Q1 217 vs. Q1 216 Hedging policy from 1 January 217 onwards 1% of balance sheet position 5% of annual net FX flows Annual transaction exposure EUR 1.2 billion 34 % 6 % 2 % USD 58 % SEK GBP Other currencies FX sensitivities before hedges 1% strengthening of foreign currency vs. EUR will have an impact on Metsä Board s EBIT of Currency USD, $ Swedish krona GBP, Next 12 months EUR +7 million EUR -4 million EUR +7 million 19 Q1 217 Interim report

20 Debt structure and liquidity 31 March 217 Interest-bearing debt, total EUR 66 million Available liquidity, total EUR 41 million Bonds Loans from financial institutions Pension loans Finance leases and other loans Cash and cash equivalents Revolving credit facility Unraised pension loans Other short-term loans 1 2 Q1 217 Interim report Average maturity of long-term loans on 31 March 217 was 2.2 years.

21 Long-term debt and financial costs Maturity schedule in long-term IB debt EUR million >222 Long-term interest bearing liabilities, EUR million Committed undrawn credit facilities, EUR million Net financial costs (EUR million) and average interest rate (%) 4,6 4,2 3,8 3,3 3, Q1/217 Net financial costs, EUR million Average interest rate at the end of period, % 4,8 4,6 4,4 4,2 4, 3,8 3,6 3,4 3,2 3, 21 Q1 217 Interim report

22 Market price development in folding boxboard and white-top kraftliner in Europe EUR/ tn Folding boxboard White top kraftliner 22 Q1 217 Interim report Sources: Pöyry Management Consulting & FOEX Indexes Ltd

23 Pulp price development (PIX) EUR Softwood, USD USD Softwood, EUR Hardwood, EUR Hardwood, USD '1 '11 '12 '13 '14 '15 '16 ' Q1 217 Interim report Source: Foex Indexes Ltd

24 Steadily growing dividends Metsä Board s dividend payout target is at least 1/3 of EPS Dividend for 216: EUR.19 per share Totalling EUR 68 million Corresponds to 76% of EPS EUR,5,4,3,2, Earnings per share Dividend per share 24 Q1 217 Interim report

25 Market cap and ownership distribution Market cap and foreign owners 31 March 217 Ownership distribution 31 March 217 EUR million 2 5 % / % 15 % Metsäliitto Cooperative 25 % 42 % *) Domestic institutional investors Domestic private investors Foreign owners Market cap, EUR million * ) Metsäliitto Cooperative has 61% of voting rights Share of foreign owners, % 25 Q1 217 Interim report

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