Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Metsä Group — Q1 2018 Earnings Presentation
22 slides from Metsa Board Oyj Class A's earnings presentation, May 3, 2018
Slide 1: Metsä
Metsa
Slide 2: Metsä Group Interim report Q1/2018
Metsä Group Interim report Q1/2018 Ilkka Hämälä President and CEO 3 May 2018
Slide 3: Metsä Group's profit-making ability improved considerably
Metsä Group – Q1 Metsä Group’s profit-making ability improved considerably • Sales EUR 1,428 million (Q1/2017: EUR 1,216 million) • Operating result* EUR 208 million (EUR 128 million) • Operating result of sales* 14.6% (10.5%) • Return on capital employed* 16.6% (12.5%) • The growth of sales and res
Slide 4: Events in the first quarter of 2018
Metsä Group – Q1 Events in the first quarter of 2018 • The market prices of long-fibre and short-fibre pulp continued to increase • The market prices of folding boxboard and white kraftliner rose compensating for the unfavourable exchange rate changes • Metsä Group will pay double bonuses on pulpwoo
Slide 5: Sales quarterly
Metsä Group – Q1 Sales quarterly EUR million 1 600 1 428 1 400 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 1 000 800 600 400 200 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 5 3 May 2
Slide 6: Comparable operating result
Metsä Group – Q1 Comparable operating result EUR million 225 208 200 185 175 149 150 137 134 129 123 128 117 120 119 125 109 105 104 103 107 100 92 75 50 25 0 Q2 Q3 Q4 Q3 Q4 Q1/14 Q1/15 Q1/16 Q1/17 Q1/18 Q2 Q3 Q4 Q2 Q2 Q3 Q4 Q2 Q3 Q4 6 3 May 2018 Metsä Group
Slide 7: Change in comparable operating result
Metsä Group – Q1 Change in comparable operating result EUR million Comparable operating result Q1/2017 127.9 Sales prices 141.8 Sales volumes 40.6 Exchange rates -41.7 Raw materials and energy -21.2 Employee costs -11.6 Maintenance and other fixed costs -19.8 Other -8.1 Comparable operating result Q
Slide 8: Comparable ROCE
Metsä Group – Q1 Comparable ROCE % 18 16.6 16 14 13.5 12.3 12.5 12 10.6 Target >10% 10 8 6 4 2 0 Q1/2014 Q1/2015 Q1/2016 Q1/2017 Q1/2018 8 3 May 2018 Metsä Group
Slide 9: Equity ratio
Metsä Group – Q1 Equity ratio % 50,0 46.5 43.9 45.0 45,0 43.2 40,0 37.9 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 12/2014 12/2015 12/2016 12/2017 3/2018 9 3 May 2018 Metsä Group
Slide 10: Interest-bearing net liabilities
Metsä Group – Q1 Interest-bearing net liabilities EUR million 1 500 1 250 1,033 1,039 993 1 000 938 750 610 500 250 0 12/2014 12/2015 12/2016 12/2017 3/2018 10 3 May 2018 Metsä Group
Slide 11: Capital expenditure
Metsä Group – Q1 Capital expenditure EUR million 800 700 600 500 400 758 300 608 492 Full year 200 estimate 100 143 0 48 1–12/2014 1–12/2015 1–12/2016 1–12/2017 1–3/2018 11 3 May 2018 Metsä Group
Slide 12: Personnel
Metsä Group – Q1 Personnel 12 000 10,410 10 000 9,599 9,300 9,126 9,281 8 000 6 000 4 000 2 000 0 12/2014 12/2015 12/2016 12/2017 3/2018 12 3 May 2018 Metsä Group
Slide 13: Metsä Group's purchasing volumes of wood are increasing
Metsä Forest –Wood Supply and Forest Services Metsä Group’s purchasing volumes of wood are increasing Sales and comparable operating result • Wood was harvested according to targets, EUR million and deliveries to customers were smooth 600 18 • Metsä Forest delivered a total of 9.6 million 490 cubic
Slide 14: Demand for engineered wood products remained good despite of the UK
Metsä Wood –Wood Products Industry Demand for engineered wood products remained good despite of the UK Sales and comparable operating result • The decline of sales was mainly attributable EUR million to smaller delivery volumes to the UK 150 15 130 13.2 • Metsä Wood’s profitability declined due to 1
Slide 15: Strong financial performance in Pulp Industry
Metsä Fibre – Pulp and Sawn Timber Industry Strong financial performance in Pulp Industry • Demand for pulp remained strong Sales and comparable operating result EUR million • Market price of long-fibre and short-fibre 700 175 pulp increased by 10% and 18%, 601 600 552 144.9 150 respectively, compar
Slide 16: Price of pulp (PIX) 2010–Q1/2018
Metsä Fibre – Pulp and Sawn Timber Industry Price of pulp (PIX) 2010–Q1/2018 USD EUR 1150 1150 1050 1050 950 950 850 850 750 750 650 650 550 550 450 450 ´10 ´11 ´12 ´13 ´14 ´15 ´16 ´17 ´18 Hardwood/EUR Softwood/EUR Hardwood/USD Softwood/USD Source: Foex 16 3 May 2018 Metsä Group
Slide 17: Paperboard Industry had a strong start for the year
Metsä Board – Paperboard Industry Paperboard Industry had a strong start for the year Sales and comparable operating result • The sales and operating result improved EUR million due to the increased delivery volumes and 600 90 higher sales prices of paperboard and 492 market pulp 500 474 479 69 75 4
Slide 18: Prices of folding boxboard and white-top kraftliner in Europe 2011–Q1/2018
Prices of folding boxboard and white-top kraftliner in Europe 2011–Q1/2018 EUR/ tonne 1200 1100 1000 900 800 700 600 2011 2012 2013 2014 2015 2016 2017 2018 Folding boxboard White-top kraftliner Sources: RISI, Inc. & FOEX Indexes Ltd 18 3 May 2018 Metsä Group
Slide 19: Tissue and Cooking Papers' production efficiency is being improved
Metsä Tissue – Tissue and Cooking Papers Tissue and Cooking Papers’ production efficiency is being improved Sales and comparable operating result • The sales of Metsä Tissue grew due to EUR million increased sales volumes 300 30 261 259 • The result was weakened by the price of 250 246 249 247 249 2
Slide 20: Outlook for the business areas
Summary Outlook for the business areas • Demand for wood will focus on regeneration and thinning felling that can be harvested in the summer and, in energy wood, primarily on crown wood • Market demand for wood products is expected to remain strong, which improves order book levels, particularly in
Slide 21: Near-term outlook
Summary Near-term outlook • Metsä Group’s comparable operating result in the second quarter of 2018 expected to be roughly at the same level as in the first quarter of 2018 21 3 May 2018 Metsä Group
Slide 22: Make the most of Metsä
Make the most of Metsa yl thy Metsa