![Page 1: Metsä Board's 2Q 2014 interim report presentation](https://reader035.vdocuments.us/reader035/viewer/2022080211/559093ff1a28abb6538b46f4/html5/thumbnails/1.jpg)
Metsä Board
Metsä BoardResults 2Q 2014
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Metsä Board
Key Events in 2Q 2014
‒ Paperboard delivery volume continued to increase. Increase of FBB sales to North American markets progressed as planned
‒ Price levels of the main products were stable
‒ Profitability weakened due to successfully completed annual maintenance shutdowns at Husum and Metsä Fibre’s Äänekoski and Joutseno mills
‒ Clear net debt reduction to EUR 540 million due to very strong cash flow
‒ Introduction of new folding boxboards and linerboards proceeded successfully
‒ Mika Joukio appointed as the new CEO latest as of 1 December 2014
2
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Metsä Board
3019
29 28
6
2520
24 2636
0
10
20
30
40
50
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
545 522 532 509 535 503 479502 501 494
0
200
400
600
800
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
-9
1710 9
199
184
2021
-10
0
10
20
30
40
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Sales, m€ Operating result excl. non-rec. items, m€
Result before taxes excl. non-rec. items, m€
Operating Result in 2Q 2014 Weakened as Expected Due to Annual Maintenance Shutdowns
3
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Metsä Board
‒ Result was improved mainly by higher folding boxboard delivery volumes
‒ Result was weakened by Metsä Fibre’s Äänekoski and Joutseno pulp mills’ annual shutdowns
‒ Folding boxboard price level was stable in 2Q 2014 and no material changes are expected in the coming months
‒ Folding boxboard deliveries are expected to slightly increase in 3Q 2014
‒ Good service ability for North American customers guaranteed by increased inventories
‒ Great start for recently launched folding boxboards Carta Dedica for cups and plates and Carta Allura for luxury packaging
4
EBIT, excl. non-recurring items
Sales
Cartonboard’s 2Q 2014 Operating Result Continued to Improve
m€
m€
182020
1215
10
0
6
12
18
24
30
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
219214208220218222
0
50
100
150
200
250
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
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Metsä Board
Linerboard and Paper’s 2Q 2014 Result Weakened by the Maintenance Shutdowns
‒ Result was weakened mainly by the scheduled annual maintenance shutdowns at Husum and Metsä Fibre’s Äänekoski and Joutseno mills
‒ Fresh forest fibre linerboard deliveries were at strong level but decreased slightly from previous quarter. Prices were stable
‒ Paper delivery volumes decreased and prices remained stable at low levels
‒ Market pulp delivery volumes increased and prices were stable
‒ Fresh forest fibre linerboard deliveries are expected to increase slightly in 3Q. Paper and pulp deliveries are forecast to remain at previous quarter level
‒ No material price changes in sight in the main products
‒ Kemi maintenance shutdown has some negative result impact in 3Q
5
EBIT, excl non-recurring items
m€
m€
Sales
20
151516
7
20
0
5
10
15
20
25
30
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
271262
288 269 267250
0
50
100
150
200
250
300
350
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
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Metsä Board
Thanks to Strong Cash Flow Net Debt Reduced to EUR 540 Million
‒ Gross debt EUR 699 million and net debt EUR 540 million
‒ Net gearing 65 %, equity ratio 40 % and average interest rate reduced to 4.2% at the end of 2Q 2014
‒ Funds from operations increased to EUR 102 million in 2Q
‒ ONWC reduced clearly from 1Q due to accounts payable improvement measures and timing reasons
‒ Solid liquidity position of over EUR 400 million
6
Net Debt / EBITDA
Net Debt, m€
540
827
0
250
500
750
1000
2010 2011 2012 2013 2Q14
2,52,7
0
1
2
3
4
5
2010 2011 2012 2013 2Q14
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Metsä Board
Short-Term Profitability Outlook
7
‒ Metsä Board’s operating result, excluding non-
recurring items is in the third quarter of 2014
expected to improve slightly from the second
quarter of 2014
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Metsä Board
Strong Growth in Paperboard Businesses Continues
‒ Metsä Board’s paperboard deliveries increased in 1H 2014 over 6 % from last year despite recession in domestic market Europe
‒ Target is to further grow both FBB and fresh forest fibre linerboard businesses
‒ Continued growth in Europe and increased efforts in Asia and especially in North America
‒ Sentiment in paperboard market has further improved in recent weeks and order inflows have somewhat strengthened
8
169 176 185 185 189 192 197 185 191 197
8085
93 8594 93
9591
109 108
0
50
100
150
200
250
300
350
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
Fresh forest fibre linerboardFolding boxboard
Paperboard deliveries, 1000 tonnes
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Metsä Board
Metsä Board’s FBB Has Proven Its Competitiveness Among North American Consumer Goods Companies and Converters
9
‒ Missing piece to the North American cartonboard offering enabling the enhancement of sustainability
‒ Even over 30 % lighter in weight than competing paperboards
‒ Long-term contracts signed with several leading North American converters and merchants
‒ Target in 2014 is to at least double FBB deliveries to North America from the 35 000 tonnes last year
0
5
10
15
20
25
2Q13 3Q13 4Q13 1Q14 2Q14
FBB deliveries to North America, 1,000 tonnes
+200 %
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Metsä Board
Mika Joukio (50) the New Metsä Board CEO Latest as of 1 December 2014
10
‒ MSc (Tech), MBA
‒ CEO of Metsä Tissue Corporation since 2012
‒ Extensive experience in Metsä Board’s paperboard businesses including
‒ Head of paperboard business area and deputy to the CEO ‒ Several mill manager positions‒ Head of corporate logistics and supply chain
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Metsä Board
Appendix
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Metsä Board
ROCE and EBIT, Percentage of Sales
12
EBIT % of sales excl. non-recuring items, ROCE %, excl. non-recurring items
6,5
-6,2
6,6
2,4
3,6
5,2
-8
-6
-4
-2
0
2
4
6
8
10
2009 2010 2011 2012 2013 1H14
6,4
4,8
3,4
7,6
-5,6
8,8
-6
-4
-2
0
2
4
6
8
10
12
2009 2010 2011 2012 2013 1H14
Target min. 10 %
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Metsä Board
EBITDA Development
13
EBITDA excl. non-recurring items, m€
114
208
186179
305
44
0
60
120
180
240
300
2009 2010 2011 2012 2013 1H 2014
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Metsä Board
Business Area Performance – Comparison to Previous Quarter
Sales, m€
2Q 20141Q 2014
14
214
271
219
262
0
50
100
150
200
250
300
350
Cartonboard Linerboard andPaper
182020
15
0
6
12
18
24
30
Cartonboard Linerboard andPaper
Operating result, excluding non-recurring items, m€
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Metsä Board
Business Area Performance – Comparison to Previous Year
1H 20141H 2013
15
Sales, m€
440
557
433
532
0
100
200
300
400
500
600
Cartonboard Linerboard andPaper
3227
3835
0
10
20
30
40
50
Cartonboard Linerboard andPaper
Operating result, excluding non-recurring items, m€
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Metsä Board
Balance Sheet Ratios
16
777
827783
625597
540
17,7
2,7
4,43,4
2,9 2,5
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012 2013 2Q 140
2
4
6
8
10
12
14
16
18
20
Net Debt and Net Debt/EBITDA* Net Gearing, %
65
84 83
106
7270
0
20
40
60
80
100
120
2009 2010 2011 2012 2013 2Q14
Net debt, m€ Net debt/EBITDA
*Excluding non-recurring items
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Metsä Board
EUR / tonne
Folding Boxboard Market Price in Europe2004 – 2Q 2014
17
Source: Pöyry Management Consulting
800
900
1000
1100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Metsä Board
18
500
600
700
800
900
2009 2010 2011 2012 2013 2014
White-Top Kraftliner Market Price in Europe2009 – 2Q 2014
Source: Foex
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Metsä Board
EUR / tonne
Paper and Pulp Market Price in Europe1998 – 2Q 2014
Coated fine paper (100 g)Uncoated fine paper (B-copy, 80 g)
Softwood pulp NBSKCoated magazine paper LWC (60g)
Source: Foex, Reuters
EUR/USD
EUR/USD
400
500
600
700
800
900
1000
1100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140,8
0,9
1
1,1
1,2
1,3
1,4
1,5
1,6
1,7
19
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Metsä Board
Ownership Structure 30.6.2014Shares Votes
Source: Euroland20