Q presentation. 5 February 2009

Transcription

1 presentation 5 February 29

2 presentation Christian Rynning-Tønnesen President and CEO Webcast 5 February 29

3 : A year of firm actions Q1/Q2: Closure of Steti and Follum PM2 Capacity reduction of 26. t/y Downsizing/Staff reductions at head office Combined cost cut: NOK 5 mill Q2/Q3: Sale of Korean mills (NOK 3.8 bn in cash proceeds) Q1-: Sale of other assets: NOK 6 mill Improvement program of NOK 3 bn completed close to target 3

4 Strongly improved EBITDA through : EBITDA NOK 922 mill Mill NOK EBITDA ex. Korea Korea 1 Full year: EBITDA NOK mill Cash flow NOK 2 bn 2 Q3 26 Q1 Q2 Q3 Q1 Q2 Q3 4

5 Downsized with 3 5 employees in three years Employees world wide by year end : Korea Steti Follum PM2 Large headquarter cuts Divestments 1 3 Closures 1 Downsizing 1 2 Total cuts 3 5 5

6 Strengthened cash position Cash flow Sale of Korea* Sale of other assets Net cash received NOK 2. bn NOK 3.8 bn NOK.6 bn NOK 6.4 bn *) Incl debt assumed by the buyer of approx NOK 8 million 6

7 presentation Audun Røneid CFO Webcast 5 February

8 Key financial results EBITDA 12 EBITDA ex. Korea Korea Key figures NOK million Q3 8 EBITDA : NOK 922 mill Q1 Q2 Q3 Q1 Q2 Q3 +NOK 21 mill vs Q3 Driven by currency movements and lower input cost Weak results in Asia, other regions are improved Operating revenue EBITDA EBIT before special items Net result: NOK 1.3 bn Reduced value of energy portfolio NOK 2.4bn Write down on mills in China NOK.5 bn Reversal of write down Saugbrugs Norway NOK 1 bn No cash impact Profit after tax (1 282) (1 212) (91)

9 NOK 3 bn annual effect gained from the improvement program MNOK "Clean" EBITDA, quarterly average 25 Sales price development Cost increases Other (incl FX, volume adjustm etc) Profitability Improvement "Clean" EBITDA 9

10 Result segments (EBITDA) NOK mill 4 35 Q1 Q2 Q News Europe * Asia Australasia South America Korea *) Q3 and ex Norske Skog Korea Magazine

11 Newsprint Europe 11 EBITDA NOK mill Q1 Q2 Q3 Q1 Q2 Q3 Price development newsprint Euro/tonne Dec 1998 Dec 1999 Dec 2 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 Dec 26 Dec Dec Newsprint 45 g - Germany, source RISI Source: RISI Key figures NOK million Q3 Operating revenue EBITDA EBITDA margin % Deliveries 1 ton Strong improvement vs Q3: Improved results, mainly due to currency changes and cost reductions Year 8 vs 7: Result down due to lower prices and higher costs Demand: -4% in Europe in

12 Newsprint Asia EBITDA NOK mill EBITDA Ex Korea NOK mill Q1 Q2 Q3 Korea Q1 Q2 Q3 Key figures NOK million Q3 Operating revenue EBITDA EBITDA ex Korea EBITDA margin % Deliveries 1 ton Weak result vs Q3: Operating rate at 65% (89% Q3) reduces profit YTD 8 vs 7: Sale of Korea reduces Asia s overall impact on the results Demand in Asia (excl. Japan) +2.5% YTD Nov 8 Weaker market balance in China 12

13 Newsprint Australasia EBITDA NOK mill Q1 Q2 Q3 Q1 Q2 Q3 Key figures NOK million Q3 Operating revenue EBITDA EBITDA margin % Deliveries 1 ton Improved result vs Q3: Results up, mainly due to lower costs 8 vs 7: Results down from NOK 928 to NOK 628 because of lower prices Demand -6% in 8 13

14 Newsprint South America 14 EBITDA Q1 Q2 Q3 EBITDA NOK mill Q1 Q2 Q3 Price development newsprint Brazil USD/tonne Dec 1999 Dec 2 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 Dec 26 Dec Newsprint 45 g - Brazil (Domestic price to Sao Paulo) Dec Source: NSG Key figures NOK million Q3 Operating revenue EBITDA EBITDA margin % Deliveries 1 ton Stable results vs Q3: Highest EBITDA margin among our segments Year 8 vs 7: Weaker results due to increased fibre and energy costs Demand +8% in 8, but weakening market balance in 9

15 15 Magazine EBITDA Q1 Q2 Q3 EBITDA NOK mill Q1 Q2 Q3 Price development magazine Euro/tonne Dec 1998 Dec 1999 Dec 2 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 Dec 26 Dec Dec Supercalendered 56 g - Rotogravure Reels - Germany source RISI LWC 6 g - Offset Reels - Germany [1] Source RISI Key figures NOK million Q3 Operating revenue EBITDA EBITDA margin % Deliveries 1 ton Strong improvement vs Q3: EBITDA improved, due to currency changes, also impact from higher prices and lower costs Year 8 vs 7: EBITDA up mainly due to higher prices SC demand Europe +6% in 8 LWC demand Europe -4% in 8

16 Cash flow from operations *) Mill NOK Q1 Q2 Q3 Q1 Q2 Q3 cash flow: NOK 732 mill Improved due to higher EBITDA and positive cash from net financial items Year 8: NOK mill in cash flow Minus NOK 182 mill compared to EBITDA reduced by NOK 1.2 bn, but working capital is reduced in compared with an increase in Incl. Korea Excl. Korea 16 *) Cash flow from operations, after financial items and taxes

17 Favourable NOK at year-end Index 1=31 Dec. 21 Norske Skog Index* jan.7 mar.7 mai.7 jul.7 sep.7 nov.7 jan.8 mar.8 mai.8 jul.8 8 sep.8 nov.8 jan.9 *Value of Norske Skog's trade-weighted basket of currencies Main currency impacts from weaker NOK: Profit and loss account: Improved EBITDA and EBIT Financial items: Loss on currency hedging, realised gain from higher value on cash Cash flow: Positive impact from higher EBITDA and realised gain from cash Balance sheet: Increased assets and debt, minor impact on equity Higher gearing 17

18 Debt and gearing ,1,84,96 1,5 1,12 1,7 15,7 17,3 16,4 15,7 26 Net debt NOK bn (left axis) Gearing (right axis) Q1 12,7, ,5 Q2 Q3 Pro forma ,99 13,2 1,2 1,8,6,4,2 Net debt and gearing increased because of weak NOK at Gearing also negatively affected by reduced value of energy portfolio By (pro forma): Net debt: NOK 13.2 bn Gearing:.99 Covenant on bank debt: Gearing < 1.4; good headroom 18

19 Value of energy portfolio NOK millions Q1 Q2 Q3 Portfolio: Contracts in Norway, Brazil and New Zealand Reduced value of NOK 2.4 bn in because of lower energy forward prices Full year : No material change in value No cash impact 19

20 Summary and outlook Christian Rynning-Tønnesen President and CEO Webcast 5 February 29

21 Recession strategy: Defend price level and cost cuts Negative GDP growth in all markets except Asia IMF-prognoses from January 29 9 on GDP-growth advanced economies y/y 3,5 3 2,5 2 1,5 1,5 -, Consequences: Declining paper demand Reduced costs on fibre, energy and chemicals -1, Actions: Continued focus on cost cuts and capital discipline Capacity will be adjusted to maintain a healthy supply/demand balance

22 Curtailments in Europe in 29 2 tonnes of newsprint 75 tonnes of magazine paper 22

23 Outlook Positive elements: Price increase in European newsprint for 9 Price increase in Australia likely in 2nd half of 9 Reduced costs on recovered paper, energy and pulp Risks/negative elements: Recession is deepening and leads to reduced paper demand Currency changes Focus: Swift capacity response to demand development Continue cost reductions Reduce net debt further 23

24 presentation 5 February 29