metsä board 3q 2013 interim report presentation
DESCRIPTION
Metsä Board Corporation Interim Report 1 January – 30 September 2013 presentation. Published on the 6th of November 2013 at 12:00 noon.TRANSCRIPT
Metsä Board
1
Metsä BoardResults 3Q 2013
Metsä Board
Key Events in 3Q 2013
‒ Folding boxboard and kraftliner deliveries increased slightly from previous quarter
‒ Metsä Board announced a FBB price increase in Europe
‒ Husum kraftliner production and sales were increased as planned and the new Modo Northern Light was launched
‒ Maintenance shutdowns at Kemi and Husum mills were completed as planned
‒ Paper market situation remained weak in Europe
‒ Metsä Board divested its 51 per cent holding in Metsä Group Treasury to Metsäliitto Cooperative
2
Metsä Board
625 24 26
436
32
-21
20 3019
-40
-20
0
20
40
60
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
685 660 616 524 545 522 502509532 535 503
0
200
400
600
800
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
28 16-11
-33
17 910 9-9
194
-50
-25
0
25
50
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Sales, m€ Operating result excl. non-rec. items, m€
Result before taxes excl. non-rec. items, m€
Operating Result in 3Q 2013 Weakened Due to Planned Maintenance Shutdowns
3
Metsä Board
‒ Result was weakened by the extensive maintenance shutdown at Kemi
‒ FBB delivery volumes increased slightly in 3Q 2013
‒ Kemi kraftliner deliveries decreased slightly but remained at a good level
‒ Metsä Board has announced a 70 €/ton FBB price increase in Europe‒ Contract negotiations for 2014 ongoing
‒ No material kraftliner price changes in sight
‒ Deliveries in 4Q 2013 expected to decrease slightly due to seasonality
4
EBIT, excl. non-recurring items
Sales
Paperboard’s 3Q Results at Previous Quarter Level
m€
m€
289289293279289274281
0
50
100
150
200
250
300
350
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
32
2524
2724
28 27
0
10
20
30
40
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Metsä Board
Paper and Pulp’s Results Weakened Due to the Extensive Maintenance Shutdown at Husum
‒ Husum shutdown was completed as planned
‒ WFU delivery volumes and prices decreased slightly from 2Q 2013
‒ Coated paper and market pulp delivery volumes increased and prices were stable
‒ WFU deliveries expected to increase slightly in 4Q 2013. Coated paper and market pulp deliveries expected to remain stable in 4Q 2013
‒ No paper price changes in sight. Long fibre pulp price in USD expected to increase and short fibre pulp price to decrease slightly in 4Q 2013
‒ Production of kraftliners at Husum increasing as planned‒ Target for 2014 min. 80,000 tonnes
5
EBIT, excl non-recurring items
m€
m€
Sales
-2
4
-2
-12
52
0
-15
-10
-5
0
5
10
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q12
216198 199
245 229 223210
0
50
100
150
200
250
300
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Metsä Board
Good Financial Situation Continues
‒ Gross debt EUR 748 million, cash and interest bearing receivables EUR 126 million and net debt EUR 622 million
‒ EUR 100 million RCF fully available
‒ Metsä Board divested its 51% holding in Metsä Group Treasury to Metsäliitto Cooperative
‒ Net gearing 75%, equity ratio 38.4% at the end of 3Q 2013
‒ Average interest rate 5.5% at the end of 3Q 2013
‒ S&P upgraded Metsä Board’s credit rating from B- to B
Net Debt, m€
622
3693
2403
0
500
1000
1500
2000
2500
3000
3500
4000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
3Q13
6
Metsä Board
Short-Term Profitability Outlook
7
‒ Metsä Board’s operating result, excluding non-recurring
items, is in the last quarter of 2013 expected to improve
from the third quarter of 2013
Metsä Board
Continued Growth in the Folding Boxboard and Linerboard Businesses
‒ Metsä Board’s paperboard deliveries have increased close to 10% from last year despite the slow growth in the consumer product markets due to weak macroeconomic situation
‒ Target is to further grow both FBB and kraftliner businesses‒ Global demand growth 3–4 % annually‒ Continued growth in Europe and increased efforts in Asia and
especially in North America
‒ Metsä Board is committed to increase capacity to support its customers’ growth both in FBB and kraftliner businesses
8
169 176 185 185 189 192 197
8085
93 8594 93 95
0
50
100
150
200
250
300
350
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
KraftlinerFolding boxboard
Paperboard deliveries, 1000 tonnes
Metsä Board
Management Structure Is Renewed to Accelerate Profitable Growth
‒ Metsä Board operates from 2014 onwards through two business areas:‒ Cartonboard (Kyro, Simpele, Tako, Äänekoski, Joutseno and Gohrsmühle mills)‒ Linerboard and Paper (Husum, Kemi and Kaskinen mills)
‒ Cartonboard product and service portfolio improvement continuesand the sales force is strengthened to accelerate growth at all current main market areas and North America
‒ Kemi and Husum mills belong to the same business area and their synergies will be fully utilized‒ Growth in both current main markets Europe and North America‒ Reduction of the share of Husum mill’s paper production
‒ Both the of Head of Cartonboard business area Ari Kiviranta (D.Sc. in Tech.) and the Head of Linerboard and Paper business area Seppo Puotinen (Lic.Sc. in Tech.) have extensive experience in paperboard business
9
Metsä Board
Organisation Chart, as of 1 January 2014
CEOMikko Helander*
Linerboard and Paper
Seppo Puotinen*
Cartonboard
Ari Kiviranta*
Business Services and Development
Sari Pajari*
Purchasing
Jani Suomalainen*
CFOMarkus Holm*
HRSusanna Tainio
* Member of Corporate Management Board
10
Metsä Board
Key Focus Areas in 2014
1. Fully benefit the current folding boxboard capacity and plan next growth steps
2. Clear increase of kraftliner production and gradual reduction of the share of paper production in Husum
3. Secure healthy Folding boxboard and kraftliner price levels
4. Develop and launch new folding boxboard and kraftliner products
5. Continuous improvements to achieve Super Productivity
11
Metsä Board
Appendix
Metsä Board
EUR / tonne
Folding Boxboard Market Price in Europe2004 – 3Q 2013
13
Source: Pöyry Management Consulting
800
900
1000
1100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metsä Board
EUR / tonne
Paper and Pulp Market Price in Europe1998 – 3Q 2013
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 20130,8
0,9
1
1,1
1,2
1,3
1,4
1,5
1,6
1,7
14
Metsä Board
Liquidity
Committed credit facilitiesLiquid fundsm€
0
100
200
300
400
500
600
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13*
15
*Divestment of 51 % in Metsä Group Treasury reduced the consolidated amount of cash at Metsä Board’s balance sheet
Metsä Board
33,3 32,4
38,7
27,9
31,1 31,233,2
0
5
10
15
20
25
30
35
40
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13*
757469
737073
103
0
20
40
60
80
100
120
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Balance Sheet Ratios
Equity Ratio Net gearing%%
16
*Divestment of 51 % in Metsä Group Treasury improved equity ratio by about 5 percentage points
Metsä Board
Business Area Performance – Comparison to Previous Quarter
Sales, m€
3Q 20132Q 2013
17
289
198
289
199
0
50
100
150
200
250
300
350
Paperboard Paper and Pulp
25
4
24
‐2
‐10
0
10
20
30
40
Paperboard Paper and Pulp
Operating result, excluding non-recurring items, m€
Metsä Board
Business Area Performance – Comparison to Previous Year
Sales, m€
1-3Q 20131-3Q 2012
18
843
697
871
613
0
200
400
600
800
1000
Paperboard Paper and Pulp
80
‐6
81
0
‐20
0
20
40
60
80
100
Paperboard Paper and Pulp
Operating result, excluding non-recurring items, m€
Metsä Board
Ownership Structure 30.9.2013Shares Votes
Source: Euroland19