Holmen Ab Class A · OMXSTO:HOLM_A
Holmen Ab Class A — Q1 2004 Earnings Presentation
28 slides from Holmen Ab Class A's earnings presentation, Apr 29, 2004
Slide 1: Interim Report January-March 2004
Interim Report January-March 2004 April 29, 2004
Slide 2: Holmen Sales in Europe
Holmen Sales in Europe 90 % Sales Operating capital Newsprint and magazine papers Paperboard Sawn Timber Forests Power 10 bn SEK 10 bn SEK 2004-04-29 2
Slide 3: Earnings Q1 2004
Earnings Q1 2004 • Improved demand for newsprint and magazine paper but low prices. • Stable market for paperboard. • Earnings per share SEK 4,4 vs SEK 3,6 Q4 and SEK 4,9 Q1 2003. • Return on equity 9% 2004-04-29 3
Slide 4: Holmen Paper: Newsprint and Magazine Paper
Holmen Paper Newsprint and Magazine Paper • Better demand, primarily for improved newsprint, SC and coated General • Signs of better advertising market • Increased deliveries outside Europe • Very low price levels. Price increases implemented in North America. Holmen Paper • Higher deliveries than i
Slide 5: Standard Newsprint: Total deliveries from Western Europe
Standard Newsprint Total deliveries from Western Europe kton (year) kton (month) 12 000 1000 900 10 000 800 700 8 000 600 6 000 500 400 4 000 300 Full year 200 Moving 12 2 000 2002 100 2003 2004 0 0 O M M J J J A A N D F 12 96 97 98 99 00 01 02 03 S M Source: Cepiprint 2004-04-29 5
Slide 6: Standard Newsprint: Total deliveries to Western Europe
Standard Newsprint Total deliveries to Western Europe kton (year) kton (month) 12 000 1000 900 10 000 800 700 8 000 600 6 000 500 400 4 000 300 Full year 200 Moving 12 2 000 2002 100 2003 2004 0 0 O M M J J J A A N D F 12 96 97 98 99 00 01 02 03 S M Source: Cepiprint 2004-04-29 6
Slide 7: Standard Newsprint: Total deliveries to North America
Standard Newsprint Total deliveries to North America kton kton 14 000 1 200 12 000 1 000 10 000 800 8 000 600 6 000 Full year 400 Moving 12 4 000 2002 2003 200 2 000 2004 0 0 O M M J J J A A N D F 12 96 97 98 99 00 01 02 03 S M Source: PPPC 2004-04-29 7
Slide 8: Total deliveries Western European producers
Total deliveries Western European producers March YTD Std Newsprint +8% +4% MF Magazine +29% +29% SC +12% +9% Coated +11% +5% 2004-04-29 8
Slide 9: Newsprint, SC and LWC Prices
Newsprint, SC and LWC Prices Germany, 1990-2004 EUR/tonne 1 000 800 600 400 200 Newsprint 45 g SC Gravure 56 g LWC Offset 60 g 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Source: PPI 2004-04-29 rev 2004-04-26 9
Slide 10: Iggesund Paperboard
Iggesund Paperboard Paperboard General • Stable market conditions and slightly better demand, both in and outside Europe. • Stable prices. Price increases announced in Asia and North America. • Higher deliveries than in the seasonally Paperboard Iggesund weaker Q4 • Increased export primarily for SB
Slide 11: Paperboard (SBB and FBB): Deliveries to Europe
Paperboard (SBB and FBB) Deliveries to Europe (excl import) kton kton 2 700 2 400 200 2 100 1 800 150 1 500 1 200 100 Full year 900 Moving 12 2002 600 50 2003 2004 300 0 0 A A N D O S 98 99 00 01 02 03 J J J 12 F M M M Source: CEPI 2004-04-29 11
Slide 12: Paperboard (SBB and FBB): Deliveries from Europe
Paperboard (SBB and FBB) Total Deliveries (World-Wide) from Europe kton kton 3 000 250 2 700 2 400 200 2 100 Full year Moving 12 1 800 150 2002 1 500 2003 2004 1 200 100 900 600 50 300 0 0 A A N D O S 98 99 00 01 02 03 J J J 12 F M M M Source: CEPI 2004-04-29 12
Slide 13: FBB Prices Germany, 1998-2004
FBB Prices Germany, 1998-2004 EUR/tonne 1 400 1 200 1 000 800 600 400 200 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 98 99 00 01 02 03 04 Source: PPI, Iggesund Paperboard 2004-04-29 •rev 2004-04-26 13
Slide 14: Other Business Areas
Other Business Areas Iggesund Timber • Good demand for sawn timber, but high supply • Good production but lower prices and higher raw material prices • High demand for pulpwood and timber Holmen • Price increases in Sweden and for imported Skog wood • Lower market prices for electricity than previou
Slide 15: Profit after financial items
Profit after financial items Excl items affecting comparability MSEK 900 800 700 600 500 400 300 200 100 0 II III IV I II III IV I II III IV I 01 02 03 04 2004-04-29 15
Slide 16: Return
Return Capital employed Equity Excl items affecting comparability and divested activities % % 30 30 25 25 20 20 15 15 10 10 5 5 0 0 98 99 00 01 02 03 I 04 98 99 00 01 02 03 I 04 2004-04-29 16
Slide 17: Profit and loss account
Profit and loss account MSEK 2004 2003 2003 2003 I IV I Net turnover 3 903 3 940 4 001 15 816 Operating costs -3 073 -3 136 -3 075 -12 306 Depreciation according to plan -300 -293 -292 -1166 Interest in earnings of ass. companies 4 -4 1 -6 Operating profit 534 507 635 2 338 Net financial items -42 -
Slide 18: Operating Profit
Operating Profit MSEK 2004 2003 2003 2003 I IV I Holmen Paper 111 109 186 747 Iggesund Paperboard 245 234 274 1 001 Iggesund Timber 6 5 5 18 Holmen Skog 148 146 119 516 Holmen Kraft 59 42 93 193 Group central costs and other -35 -29 -42 -137 534 507 635 2 338 2004-04-29 18
Slide 19: Holmen Paper
Holmen Paper Net turnover, MSEK Operating profit, MSEK 2 500 600 2 000 400 1 500 1 000 2 029 2 122 2 119 493 1 828 1 996 2 010 1 954 1 792 200 364 337 500 255 186 197 109 111 0 0 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 Operating capital, MSEK P
Slide 20: Iggesund Paperboard
Iggesund Paperboard Net turnover, MSEK Operating profit, MSEK 1 500 300 250 1 000 200 150 274 1 209 1 270 1 166 1 289 1 228 1 239 1 164 1 273 232 249 244 234 245 500 100 190 210 50 0 0 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 Operating capital,
Slide 21: Operating Profit: Timber, Skog, Kraft
Operating Profit MSEK Iggesund Timber Holmen Skog 8 200 6 150 4 5 5 5 6 2 3 3 100 155 163 146 148 0 -1 119 -2 50 105 88 -2 62 -4 0 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 Holmen Kraft Excl. financing costs 100 80 60 93 40 42 59 20 41 36 17 20 2
Slide 22: Holmen
Holmen Excl non-recurring items Net turnover, MSEK Operating profit, MSEK 5 000 1 000 4 000 750 3 000 500 2 000 4 027 3 996 4 120 4 001 4 010 3 865 3 940 3 903 716 616 638 635 609 587 250 507 534 1 000 0 0 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/0
Slide 23: Cash Flow
Cash Flow Effect on net debt MSEK 2004 2003 2003 2003 I IV I Profit after financial items 492 462 581 2 126 Adjustments 254 290 282 1 169 Paid tax -127 7 -154 -727 Change in working capital -226 188 -308 -125 Cash flow from current operations 393 947 401 2 443 Investment activities -102 -223 -149 -7
Slide 24: Balance Sheet
Balance Sheet MSEK 2004 2003 March 31 Dec 31 Fixed assets 20 579 20 645 Deferred tax receivable 307 295 Current assets 5 065 4 743 Financial receivables 205 105 Cash and bank 1 300 570 27 456 26 358 Equity 16 189 15 254 Minority interest 112 112 Deferred tax liability 4 599 4 557 Financial liabiliti
Slide 25: Financial Ratios
Financial Ratios 2004 2003 2003 2003 I IV I Earnings per share, SEK Before dilution 4,36 3,69 4,86 18,14 After dilution 4,20 3,55 4,69 17,48 Operating margin 13,6 13,0 15,8 14,8 Return on capital employed 11,3 10,7 13,3 12,3 Return on equity 8,9 7,8 10,3 9,7 Debt/equity ratio 0,16 0,22 0,26 0,22 Del
Slide 26: Capital expenditure
Capital expenditure MSEK 4 500 4 000 3 500 Acquisitions 3 000 Capital expenditure 2 500 2 000 Cash flow before capital expenditure 1 500 Depreciation 1 000 500 0 98 99 00 01 02 03 I/04 2004-04-29 26
Slide 27: Earnings and dividend per share
Earnings and dividend per share 1998-I/2004 SEK 80 70 60 50 Earnings Resultat 40 Extra dividend Utdelning 30 Dividend 20 10 0 98 99 00 01 02 03 I/04 2004-04-29 27
Slide 28: Agenda 2004
Agenda 2004 • Newsprint and Magazine: ¾ Develop the market with new, upgraded products ¾ Focus on cost savings and productivity improvements within some mills ¾ Carry out the PM 62-investment and the parallel product upgrading on other machines • Paperboard: ¾ Increase sales of high quality products