Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Metsä Group — FY2018 Earnings Presentation
24 slides from Metsa Board Oyj Class A's earnings presentation, Feb 7, 2019
Slide 1: Metsä Group Result 2018
Metsä Group Result 2018 Ilkka Hämälä President & CEO 7 February 2019
Slide 2: Excellent financial result for Metsä Group
Metsä Group – Result 2018 Excellent financial result for Metsä Group • Sales EUR 5,709 million (2017: EUR 5,040 million) • Operating result* EUR 849 million (EUR 566 million) • Operating result* 14.9% of sales (11.2%) • Return on capital employed* 16.8% (12.3%) • Sales increased due to greater deliv
Slide 3: Events in the fourth quarter of 2018
Metsä Group – Result 2018 Events in the fourth quarter of 2018 • The demand for and market price of pulp declined in China towards the end of the fourth quarter • Paperboard deliveries declined from the previous quarter mainly due to the seasonal decline • Metsä Board started up a new baling line at
Slide 4: Sales
Metsä Group – Result 2018 Sales EUR million 5,709 6000 4,970 5,016 5,040 5000 4,658 4000 3000 2000 1000 0 2014 2015 2016 2017 2018 4 7.2.2019 Metsä Group
Slide 5: Sales quarterly
Metsä Group – Result 2018 Sales quarterly EUR million 1 600 1 477 1 428 1 386 1 419 1 330 1 328 1 254 1 265 1 248 1 255 1 225 1 205 1 216 1 235 1 260 1 204 1 200 1 156 1 184 1 143 1 175 800 400 0 5 7.2.2019 Metsä Group
Slide 6: Comparable operating result
Metsä Group – Result 2018 Comparable operating result EUR million 1000 849 800 600 566 537 418 439 400 200 0 2014 2015 2016 2017 2018 6 7.2.2019 Metsä Group
Slide 7: Comparable operating result
Metsä Group – Result 2018 Comparable operating result EUR million 250 223 208 210 208 200 185 149 150 137 134 129 123 128 117 120 119 105 104 109 103 107 100 92 50 0 Q1/14 Q2 Q3 Q4 Q1/15 Q2 Q3 Q4 Q1/16 Q2 Q3 Q4 Q1/17 Q2 Q3 Q4 Q1/18 Q2 Q3 Q4 7 7.2.2019 Metsä Group
Slide 8: Change in comparable operating result
Metsä Group – Result 2018 Change in comparable operating result EUR million Comparable operating result 2017 566 Sales prices 579 Sales volumes 97 Exchange rates -135 Raw materials and energy -174 Employee costs -17 Maintenance and other fixed costs -19 Depreciation -31 Other -16 Comparable operatin
Slide 9: Items affecting comparability
Metsä Group – Result 2018 Items affecting comparability EUR million 2018 Operating result (IFRS) 843.0 Items affecting comparability: Metsä Board / Efficiency improvement program at Husum mill -4.1 Metsä Board / TVO divesting Meri-Pori coal-fired power plant -1.7 Metsä Board / other +0.2 Items total
Slide 10: Comparable ROCE
Metsä Group – Result 2018 Comparable ROCE % 20 16.8 16 13.6 12.3 Target* > 12% 12 10.2 11.4 8 4 0 2014 2015 2016 2017 2018 *Target increased from earlier 10% 10 7.2.2019 Metsä Group
Slide 11: Equity ratio
Metsä Group – Result 2018 Equity ratio % 60 53.1 50 43.9 45.0 43.2 40 37.9 30 20 10 0 2014 2015 2016 2017 2018 11 7.2.2019 Metsä Group
Slide 12: Interest-bearing net liabilities
Metsä Group – Result 2018 Interest-bearing net liabilities EUR million 1 500 1 200 1,033 993 938 900 610 600 463 300 0 2014 2015 2016 2017 2018 12 7.2.2019 Metsä Group
Slide 13: Capital expenditure
Metsä Group – Result 2018 Capital expenditure EUR million 800 758 608 600 492 400 272 200 143 0 2014 2015 2016 2017 2018 13 7.2.2019 Metsä Group
Slide 14: Personnel
Metsä Group – Result 2018 Personnel 12 000 10,410 9,599 9,300 9,310 9,126 9 000 6 000 3 000 0 2014 2015 2016 2017 2018 14 7.2.2019 Metsä Group
Slide 15: Wood delivery volumes at record level
Metsä Forest – Wood Supply and Forest Services Wood delivery volumes at record level • The supply of wood in Finland was good. Rising stumpage prices stabilized during the second Sales and comparable operating result half of the year EUR million • Harvesting and transport conditions in Finland 600 1
Slide 16: Good demand for engineered wood products. UK market was challenging
Metsä Wood – Wood Products Industry Good demand for engineered wood products. UK market was challenging • Sales of engineered wood products remained at last Sales and comparable operating result year’s level. Sales of the UK business declined EUR million • Sales price rose thanks to price increases
Slide 17: Excellent performance thanks to strong pulp demand
Metsä Fibre – Pulp and Sawn Timber Excellent performance thanks to strong pulp demand • Higher pulp prices as well as deliveries as a result of the bioproduct mill increased sales and operating Sales and comparable operating result result EUR million • Strong demand in the pulp market during the fir
Slide 18: Pulp price (PIX) 2010–2018
Metsä Fibre – Pulp and Sawn Timber Pulp price (PIX) 2010–2018 USD EUR 1400 1400 1200 1200 1000 1000 800 800 600 600 400 400 ´10 ´11 ´12 ´13 ´14 ´15 ´16 ´17 ´18 Hardwood/EUR Softwood/EUR Hardwood/USD Softwood/USD Lähde: Foex 18 7.2.2019 Metsä Group
Slide 19: Good price and delivery development also in paperboard
Metsä Board – Paperboard Industry Good price and delivery development also in paperboard • Sales and profitability improved thanks to higher Sales and comparable operating result EUR million prices of paperboard and market pulp as well as increased folding boxboard deliveries 600 120 519 492 • Incre
Slide 20: Prices of folding boxboard and white-top kraftliner in Europe 2011–2018
Metsä Board – Paperboard Industry Prices of folding boxboard and white-top kraftliner in Europe 2011–2018 EUR/tonne 1200 1100 1000 900 800 700 600 2011 2012 2013 2014 2015 2016 2017 2018 Folding boxboard White-top kraftliner Sources: Fastmarkets RISI & Fastmarkets FOEX 20 7.2.2019 Metsä Group
Slide 21: Production efficiency of tissue and greaseproof papers to be improved
Metsä Tissue – Tissue and Greaseproof Papers Production efficiency of tissue and greaseproof papers to be improved Sales and comparable operating result • Growth in sales was mainly attributable to EUR million increased deliveries and higher prices 300 30 • Operating result was weakened by cost infl
Slide 22: Market outlook
Summary Market outlook • Wood demand will focus on thinning sites to be harvested when the ground is unfrozen and, in terms of energy wood, on crown wood • Outlook for spruce plywood is good but the birch plywood is subject to uncertainty. The outlook of Kerto LVL products is primarily stable • Dema
Slide 23: Near-term result outlook
Summary Near-term result outlook • Metsä Group’s comparable operating result is in the first quarter of 2019 expected to weaken from the fourth quarter of 2018 23 7.2.2019 Metsä Group
Slide 24: Make the most of Metsa Way
Make the most of Metsa Way