Metsä Board Metsä Board

Size: px

Start display at page:

Download "Metsä Board Metsä Board"

Shauna Black
8 years ago
Views:

1 Metsä Board Financial 215 Financial statements statements review review 215

2 Highlights in 215 Paperboard delivery volumes increased by 12% compared to 214 Operating profit improved 32% Strong operating cash flow and balance sheet Board proposes to AGM a dividend of,17 EUR / share Husum investment programme proceeded as planned Investment decision on own extrusion line Divestment of Gohrsmühle mill and exit from paper production 2

3 Strong financial performance in Change Sales EUR million 2,8 2,8 --- EBITDA, excl. NRIs EUR million % % of sales % 14,1 11,8 Operating result, excl. NRIs EUR million % % of sales % 9, 6,8 Result before taxes, excl. NRIs EUR million % Earnings per share EUR,39,2 95% ROCE, excl. NRIs % 11,3 9,1 Gross investments EUR million Cash flow from operations EUR million % 3

4 % % Continuous improvement in profitability ROCE-%, excl. non-recurring items EBIT-%, excl. non-recurring items 12 Target over 12% from ,3 1 9, ,4 4,8 6,4 9, ,4 3,6 5,2 6,

5 Operating result in Q4 weakened as expected, sales down due to the decreased paper deliveries Sales EUR million Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/ % Operating result* EUR million and % of sales 7% 6% 7% 7% % 9% 11% Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q415 8% 15% 1% 5% % % 4% 4% Pre-tax result* EUR million and % of sales 5% 6% 6% % 1% Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 7% 15% 1% 5% % 5 *) excluding non-recurring items

6 Paperboard deliveries declined slightly in Q4/215 Growth in 215 vs. 214 was 12% 1, tonnes Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Folding boxboard Fresh forest fibre linerboard Note! Figures exclude wallpaper deliveries

7 EUR million EUR million Paperboard segment in Q4/215 4 Sales 6 Operating result, excl. non-recurring items 16% 15% 16% 14% 16% 13% 13% % Operating result, M 7% Operating result, M 4% EBIT-% 1% Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15-2% 7 Q4/215 (Q3/215) Delivery volumes decreased due to seasonality and were 365 tons (373 ) Negative impact from the investment related integrate shutdown in Husum was EUR 2 million, of which slightly less than half was allocated to Paperboard segment Price levels remained stable. Metsä Board s FBB price increase announcement in Europe came into effect on 1 December.

8 EUR million EUR million Non-core operations segment in Q4/215 Sales Operating result, excl. non-recurring items Q4/14 Q1/15 Q2/15 Q3/15 Q4/ ,8-3,2-3,4-1,3-8,4-1% -3% -3% -2% Q4/14 Q1/15 Q2/15 Q3/15 Q4/15-17% 2% % -2% -4% -6% -8% -1% -12% -14% -16% -18% Operating result, M Operating result, M EBIT-% Q4/215 (Q3/215) Significant decrease in paper delivery volumes Negative impact from the investment related integrate shutdown in Husum was EUR 2 million, of which slightly over a half was allocated to Non-core operations segment Production of uncoated paper sheets ended in Husum 8

9 FX exposure and sensitivities FX rate changes in the main foreign currencies were favourable to Metsä Board in 215 Hedge accounting costs in 215 were EUR 22 million (1) Hedging duration of the main foreign currency flows is 3 6 months Segment figures reflect exchange rate changes rapidly but hedge accounting result in Other operations balance the impact FX exposure by currency Annual gross amount EUR 1.1 billion 9 % 3 % USD Annual FX sensitivities to Group EBIT 1 % strengthening of foreign currency vs. EUR will have an impact on Metsä Board s annual EBIT of Currency (est.) 26 % 62 % SEK GBP USD, $ EUR +45 million EUR +6 million GBP, EUR +2 million EUR +1 million Other currencies Swedish krona EUR -3 million EUR -3 million 9

10 Strong balance sheet Equity ratio, % Net gearing, % Net debt, EUR million and Net debt/ebitda 5% 4% 3% 2% 1% % 47% 33% 27% % 1% 8% 6% 4% 2% % 16% 73% 7% Target 7% 51% 32% ,4 3,4 2,9 1, , Net debt, EUR million Net debt/ebitda 1

11 Capital expenditure EUR million E Capex Growth capex Depreciation Annual capex excluding the growth capex is EUR 4 6 million Main growth capexes in : Husum investment: EUR 17 million (in 215: 132 M ) Extrusion line: EUR 38 million (in 216: 23M ) Metsä Fibre s bioproduct mill: EUR 25 million* (216) 11 *) investment in equity

12 Investment programme in Husum is completed The new FBB production line is in the start-up phase Delay in the start-up phase will have a slight negative impact on the operating result in Q1/216 Integrate shutdown had approximately EUR -2 million impact on Q4/215 operating result Targeted product quality is expected to be reached by Q3/216 according to the original plan Folding boxboard production (BM1) Full production capacity (4, t/a) reached by the end of 216 Deliveries mainly to Americas and Food service globally expected volume in 216 at least 2, tonnes Linerboard production (BM2) Capacity 3, t/a Deliveries to Europe and Americas Remaining uncoated paper* production to linerboard production by end of *) current run-rate 1, tn/a

13 Financial impacts of transformation Investment programme in Husum mill, Sweden Annual EBIT impact EUR +5 million Roughly one third will materialise in 216, full impact in 218 Gohrsmühle divestment Annual EBIT impact EUR +2 million Roughly half materialised in 215, full impact in 216 Reduces annual sales by EUR 9 million 13

14 Outlook for Q1/216 Total delivery volumes in paperboard will grow compared to Q4/215 Average price level in FBB is expected to decline due to the start-up volumes from the new FBB production line The delay in the start-up phase of the new FBB production line will have a negative impact on pulp and paperboard production volumes Total production costs are expected to remain stable 14

15 Profit guidance for Q1/216 Metsä Board s operating result excluding non-recurring items in Q1/216 is expected to remain roughly at the same level as in Q4/215 15

16 The Board proposes a dividend of,17 EUR / share which equals 44% of EPS Metsä Board s dividend payout target is at least 1/3 of EPS Average pay-out ratio during has been 4%,2,18,16,14,12,1,8,6,4,2,17,12,9, CMD

17 Summary Solid financial performance in 215: Improved profitability, strong operating cash flow and balance sheet Metsä Board s paperboard deliveries grew by 12% compared to 214 Healthy demand in fresh forest fibre paperboards expected to continue Metsä Board s new FBB production line is in the start-up phase in Husum. The target is to sell 2, tonnes of new FBB to Americas and food service globally in 216 Transformation process to pure paperboard company is completed 17

18 Appendix

19 Other operations segment in Q4/215 Other operations segment include costs which are not allocated to units, e.g. head office costs and hedge accounting Cost base of these is roughly EUR 5 million per quarter Result fluctuation is mainly caused by hedge accounting, which had a total negative impact of EUR 22 million in 215 (-1) EUR million Other operations segment: Operating result, excl. non-recurring items Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 19

20 EUR million EBITDA development 3 EBITDA, excl. non-recurring items % ,8 % 28 1,3 % ,8 % 14,1 % 14% 12% 1% 8% 1 5 7,2 % 6% 4% 2% % 2

21 Financial costs are declining steadily Net financial costs and average interest rate EUR % Net financial costs, EUR million Average interest rate, % 5,5 5, 4,5 4, 3,5 3, Net financial costs in FY215 totalled EUR 32 million (214: 39) Net financial costs in Q4/215 totalled EUR 4.7 million (Q3/15: 7.1) Declining costs due to the lower interest rates and credit margins as well as decline in IB debt Average interest rate in IB debt in FY215 was 3.8% (4.) 21

22 Strong cash flow from operations EUR million Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Cash flow from operations, quarterly Cash flow from operations, rolling 12 months Free cash flow, quarterly Free cash flow, rolling 12 months 22

23 Diversified funding sources, strong liquidity Debt structure Total EUR 659 million 31 December 215 Available liquidity Total EUR 49 million 31 December % 12% Bonds 3 % 34 % Loans from financial institutions Pension loans Finance leases and other loans 2 % 13 % Liquid assets and investments 67 % Revolving credit facility Undrawn pension loan Average interest rate of IB at the end of 215 was 3.8% and average repayment time of long-term borrowing 2.6 years. 23

24 Ownership structure on 31 December 215 Shares, % (total no. of shares 355,512,746) Votes, % (total no. of votes 1,37,53,115) Households Non-profit organisations Foreigners* 5,3 4,5 11,2 16,8 2,2 Households Non-profit organisations Foreigners* 1,9 1,8 14,4 1, 4,1 7, Metsäliitto Cooperative Other companies 19,8 Metsäliitto Cooperative Other companies Finance and insurance companies Public sector organisations 4,2 Finance and insurance companies Public sector organisations 6,9 Source: Euroland * incl. nominee registered 24

25 Price development of FBB and white-top kraftliner in Europe in EUR/ tn Taivekartonki Folding boxboard Valkopintainen White-top kraftliner kraftlaineri Sources: Pöyry Management Consulting ja FOEX Indexes Ltd

26 Price development in pulp (PIX) USD USD Havu Lehti Havu Lehti EUR '4 '5 '6 '7 '8 9 '1 '11 '12 '13 '14 '15 EUR Source: Foex Indexes Ltd

Metsä Board Investor presentation Q4/2015

Metsä Board Investor presentation Contents Investment highlights 3 Operating environment and market position 14 Strategic cornerstones and financial targets 21 Finalising the transformation 29 results