New Norske Skog December 2017

Transcription

1 New December 2017

2 Operations continue as normal New ( AS) is a leading European and sole Australasian publication paper producer New overview The group has the following production capacities Newsprint 1.8m tons Magazine paper 0.9m tons Production capacities by segment 4 mills in Europe 2.0m tons 3 mills in Australasia 0.7m tons 2016 revenue 12 billion 2,500 employees Skogn (Norway) Saugbrugs (Norway) Bruck (Austria) Golbey (France) New owners AS Albury (Australia) Tasman (New Zealand) Boyer (Australia) Skogn AS Saugbrugs AS Golbey SA Bruck GmbH Industries Australia Ltd 2

3 New ownership ensured by large, professional investors Senior Secured Note (SSN, EUR 290m) holders control AS Oceanwood, the majority holder of the SSN 2019 bond, which has collateral in AS Oceanwood also holds the entire EUR 100m NSF Oceanwood has invited Aker as an industrial partner for AS (New ) Operations secured by EUR 16m liquidity facility Former CEO Sven Ombudstvedt is the chairman of AS Oceanwood has started the process to enforce on the SSN collateral in AS Citibank, as trustee for the SSN 2019 bond, will run the enforcement process M&A process to value the collateral Oceanwood and Aker will bid to ensure that there will be a strong new owner of New Have capital and experience to operate and develop the group Efficient business operations, margin enhancements and growth investments fully in their interest 3

4 All operating units continue as normal All mills are profitable with separate legal entities with sound balance sheets New securing the operating businesses Existing Shareholders Perpetual Notes (2115), SUNs(2026/33) industrier ASA (parent) Norske Treindustrier AS All unsecured debt issued by Norske Skogindustrier ASA and Holding AS, with no collateral PENs (2021/23) Holding AS SSN (2019), NSF (2020) AS All the paper mills are separate legal entities with strong balance sheet and good cash flow generation Skogn AS Saugbrugs AS Golbey SA Bruck GmbH Industries Australia Ltd SSN EUR 290m and NSF EUR 100m issued by AS Operating cash flow kept within the operating units and AS 4

5 New will have significantly less debt Leverage (net debt/ebitda) likely down to a sustainable level Resulting in access to capital on similar terms as competitors Significant reduction in interest payments to enhance group operating cash flow Less debt and lower interest rates free up cash flow to growth investments and dividends Old New Net Leverage 12x Bond interest payments 600m million b Unsecured debt Secured debt Balance Sheet to be decided by new owners 5

6 Group focus again exclusively on operations New is highly appreciative of customers, suppliers and employees Having supported the group through a very challenging recapitalization process Excellent production and sales teams remain in place to ensure high quality products to all customers Group suppliers ensured continued operations throughout the lengthy recapitalization Employees have worked extensively to facilitate the new recapitalized Efforts will now be directed fully to operations and development 6

7 EBITDA core business Significantly improved finances enable renewed focus New has identified several growth investments within bioenergy, fibre and chemicals New key player in likely consolidation of publication paper in Europe 3 2 Potential EBITDA driven by (i) M&A options & (ii) access to funding Growth investments Chemicals Bioenergy Fibre ~ 350m ~ 350m 1 Stable core business Stable volume/ pricing dynamic in Europe driven by higher operating rate Continuous improvement thru cost reduction and effectiveness Commercial company culture Diversification strategy New 7

8 Print remains the revenue source for newspapers Print s share of total revenues was 92% in 2016 Digital content is largely distributed for free the print circulation market is 25 times larger Print advertising market 6 times larger than the digital market Total global newspaper revenues Chemicals Bioenergy ~ 350m ~ 350m WAN-IFRA 8

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